If you represent a bank looking to support your Community Reinvestment Act (CRA) obligations, or an affordable housing organization or housing authority looking to sell mortgage notes on a competitive market, then you need the CRA Note Exchange (the Exchange).
The Exchange is a virtual marketplace where housing organizations can put mortgage notes up for bid and banks can search for affordable mortgage notes that they are interested in purchasing. Powered by the technology behind Stackfolio, the Exchange has a robust and versatile search engine that allows banks to search by loan amount, rate, geographic area, and other factors to find exactly what they need to help them meet CRA obligations. For affordable housing organizations, putting notes on the Exchange can be a critical source of liquidity.
Another plus to the Exchange is that it specializes in selling notes for down payment assistance second mortgages. When it comes to meeting CRA obligations, down payment assistance second mortgages are uniquely advantageous. As an example, let’s just say that you have $300,000 that you are looking to spend on mortgage notes. That $300,000 could buy one first mortgage or about ten second mortgages. With ten second mortgages, you can better fulfill your CRA obligations by having more loans in your assessment area and more loans that represent borrowers of varying income levels. In this way, second mortgages can go further than first mortgages in meeting CRA obligations.
The Exchange is easy to use, and it is free to sign up and bid or post bids; the Exchange is only compensated on the successful sale of a loan. You can sign up and begin looking for loans, the best way to see what options exist in your area, in a matter of minutes. The process of posting a loan for bid takes a little more effort, but the Exchange does as much of the process as possible to take a burden off your shoulders. Just email firstname.lastname@example.org to learn how to get your imaged loans reviewed and posted.
To learn more about the CRA Note Exchange, visit its own website, cranoteexchange.com, to read a case study and white paper, and our Frequently Asked Questions (FAQs) flyer, about this virtual marketplace, or sign up and explore for yourself. CRA credits and loan sale liquidity awaits you!