CBCMA backs $14M in affordable mortgages

by Candyd Mendoza09 Oct 2020

CBC Mortgage Agency (CBCMA), a nationally chartered housing finance agency and a leading source of down payment assistance for first-time homebuyers, has announced funding $14 million in affordable home loans through its CRA Note Exchange platform.

Launched in 2018, the CRA Note Exchange enables nonprofit homebuilders, affordable-housing organizations, and state housing finance agencies to sell their CRA-eligible mortgage loans to banks to help them fulfill their obligations under the federal Community Reinvestment Act. Selling CRA-eligible notes to banks free up capital for future low- or moderate-income residential construction projects or loan originations.  

The exchange also serves as a platform for CBCMA to sell its second lien down payment assistance mortgage, which allows the company to provide reduced-cost home financing for lower-income families.

Since the platform debuted, banks and other investors have purchased $40 million in first and second mortgage loans – enabling them to accrue CRA credits while funding down payment assistance and affordable lending programs for first-time homebuyers.

"As a virtual marketplace for CRA-eligible notes, our CRA Note Exchange is an important tool for creating liquidity that enables us to continue to fund our down payment assistance programs," said CBC Mortgage Agency President Richard Ferguson. "Because most families who utilize our down payment assistance programs are minorities, people of color are the primary beneficiaries of the Exchange."