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#1526011 - 03/23/11 06:48 PM MBS
Random Offline
Gold Star
Joined: Jun 2008
Posts: 287
We are investing in some mortgage-back securities. The properties are not located in low-to mod inc. areas, but the borrowers incomes are low-to-mod. Can you get CRA credit for a MBS based on the income of the borrower?

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#1526289 - 03/24/11 01:41 PM Re: MBS Random
Karen Tucker Offline
Junior Member
Joined: Mar 2007
Posts: 39
Washington, DC
Yes. In fact, in order for the MBS to be considered it must be secured by loans made to LMI borrowers. Where these borrowers live is irrelevant, as long as they are in your AA. If you have an MBS that is secured by loans maade to middle-income and upper-income borrowers it will not be considered a qualified investment because it is not helping to provide affordable housing to LMI individuals.

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