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#2113847 - 01/11/17 04:54 PM Community Development Loan
Somer Offline
Junior Member
Joined: May 2013
Posts: 43
I have a loan to a quasi-public agency contracted by the City, whose main mission is community development and economic revitalization, specifically for the benefit of low- and moderate-income households and areas of the city. Government funding is also provided to improve the lives of low- and moderate-income residents through economic development, affordable housing, and social programs.

The loan is a construction loan where the funds will be used to rehab an existing house owned by the quasi-public agency and then sold as Affordable Housing to a low to moderate-income borrower.

Because this loan is secured by Residential Estate, I wanted to know if this is considered a Community Development loan or do I have to report under HMDA.

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CRA
#2113990 - 01/12/17 03:30 PM Re: Community Development Loan Somer
Pale Rider Offline
10K Club
Pale Rider
Joined: Aug 2002
Posts: 34,318
under the Lone Star
How much is the loan and how is it reported on your call report?
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Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.


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#2114179 - 01/13/17 04:01 PM Re: Community Development Loan Pale Rider
Somer Offline
Junior Member
Joined: May 2013
Posts: 43
The loan amount is a $138K and reported under 1a. What I am somewhat confused by is that this is only construction loans funds for 18 months, interest only payments and at the end of the process the house will be sold as affordable as affordable housing. The loan is not construction to permanent financing.

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#2116129 - 01/30/17 08:17 PM Re: Community Development Loan Somer
KelliD Offline
Member
Joined: Jun 2015
Posts: 62
I have an exact situation except that ours is interest only for 1 year, then regular pmts. Its being reported under HMDA so we aren't able to get CRA credit. I'm not sure I agree and would appreciate help on this one.

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#2116799 - 02/02/17 07:22 PM Re: Community Development Loan Somer
KelliD Offline
Member
Joined: Jun 2015
Posts: 62
I've been researching this topic and from what I understand only mutli-familiy residential real estate can be reported as HMDA and CRA - Community Development.

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