How national banks and federal savings associations can help revitalize communities by establishing housing rehabilitation loan programs was featured in the latest edition of the Office of the Comptroller of the Currency’s (OCC) Community Developments Investments newsletter.
In the article, “Expanding Housing Opportunities: Single-Family Rehabilitation Financing Programs,” the OCC described how banks can make home renovation loans in distressed areas. It referred to guidance for such programs laid out in OCC Bulletin 2017-28, “Mortgage Lending: Risk Management Guidance for Higher-Loan-to-Value Lending Programs in Communities Targeted for Revitalization.”
Further, the publication highlighted major revitalization efforts in neighborhoods in Detroit, Baltimore, and other cities. In addition, it explains how federal and government sponsored enterprise loan programs, along with tax credits, are helping community and bank rehabilitation financing initiatives.
The newsletter also looked at how community development-related home rehabilitation efforts can qualify for consideration in a bank’s Community Reinvestment Act evaluation.
The OCC’s Community Developments Investments newsletter is just one of the resources available to banks that would like to explore opportunities to offer residential rehabilitation loan financing and other community reinvestment activities. Banks can learn more about these opportunities by contacting one of the OCC’s District Community Affairs Officers, who are located throughout the nation.