Meeting Mortgage Demand for Low-to-Moderate Income PopulationsFostering the development of financially sound communities through financial education has always been a core objective for community-based lenders. To that end, Affinity Federal Credit Union, CUMAnet LLC and New Jersey Community Capital (NJCC) have partnered to create the Affordable Housing Mortgage Platform. This new mortgage platform combines extensive pre-ownership credit counseling with a flexible lending model that meets the housing and mortgage needs of low to moderate income families in New Jersey. It also meets CRA requirements. The new platform will enable lenders to get more families into homes and revitalize distressed neighborhoods while remaining consistent with safe and sound operation and underwriting principles. The Affordable Housing Mortgage Platform will be of particular interest to: Community-based financial institutions with CRA loan requirements or community investment goals Large banks needing CRA lending options (whole loans and investments) Counseling agencies, community developers and housing agencies working with low-to-moderate income families For more information on the Affordable Housing Mortgage Platform, please contact James Goodman (NMLS #222958) at 908.860.7120 or JGoodman@mortgagedept.com Life-Cycle Lending: What Sets Us ApartThe foundation of this mortgage platform is high-touch, high quality, life of loan support. It combines multiple risk mitigation tools to create high-performing loans with sufficient controls to minimize potential losses, including: Pre-purchase counseling Research shows that counseled homebuyers achieve significant reductions in late payments, delinquencies and defaults when compared directly to non-counseled homeowners. Even those few that that cannot avoid foreclosure are able to secure exit strategies from their homes at far faster rates than non-counseled families, saving lender/investor carry costs. In addition to improving loan performance, pre-purchase counseling delivers substantially higher percentage pull through rates for loan originations. High-quality refurbished properties High-quality collateral has two risk reduction attributes. First, by putting borrowers in high-quality, refurbished homes, there is likely to be less collateral breakdown, reducing the expensive, untimely repairs that could impact the repayment stream. Second, it also serves to mitigate loan-to-value and property depreciation issues should default occur. Credit Enhancement Options Secure credit enhancement options are available for the loan pools, including mortgage pool insurance and lender letters of credit. Other options are available upon request. Life-of-loan support High –touch servicing and ongoing loan counseling and financial education set this platform apart. The servicing organization, CUMAnet, will be able to identify repayment issues early on, while loan counseling organizations remain available to support the homeowner for no less than 10 years after loan origination. For all families, but especially lower income families, single significant life events can alter the best laid plans. Having a high quality counselor quickly follow up with late borrowers in a fully compliant interface, will lead to better actions by all parties and reduce uninformed decisions.