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A Look Inside

Comptroller Dugan on Preserving Homeownership

Reducing Foreclosures Through Non-Profit Partnerships


Sustaining Homeownership and Communities

Innovative Partnerships to Prevent Foreclosure

Foreclosure Provisions of the Servicemembers Civil Relief Act

GSEs Use Technology for Loan Mitigation

_Loss Mitigation

_Hurricane Relief

Compliance Corner

News from the Districts

Northern District Stamp
Northeastern District
John Farrell (617) 482-1643
Denise Kirk-Murray (212) 790-4053

New Incentives for Banks to Open Branches in Underserved Communities

In order to encourage new bank branches in areas with a demonstrated need for banking services, the New York State Banking Department created the Banking Development Districts (BDD) program. The program was recently expanded to provide additional incentives for banks to branch in underserved communities. The Enriched Banking Development District is open to both national and state-chartered banks.   Banks receive state and local incentives, including more than $100 million in public funds available for deposits in new BDD branches, real property tax breaks for the branch, and assistance in locating suitable commercial space.   In order to receive the BDD designation, a bank, in partnership with a local government sponsor, must submit an application to the New York State Banking Department.   The goal of the Enriched BDD Initiative is to expand the program in unbanked communities across the state.   There are currently 11 areas of New York City designated as prospective new BDDs.  

For further information, please contact Daniel Delehanty at the NYS Banking Department at (212) 709-3574 or

Seacoast Workforce Housing

The Workforce Housing agencies of the Greater Seacoast is a coalition of businesses, government agencies, and community groups, dedicated to the development of a range of housing options for the diverse workforce in the Greater Seacoast region of New Hampshire and Maine.   Its goals through 2006 are to promote municipal land-use ordinances and regulations that will: (1) create workforce housing through coordination with and support of Regional Planning Commissions; (2) educate businesses, concerned citizens, and municipalities regarding workforce housing's connection to regional economic vitality; (3) act as convener of municipalities, developers, and communities to offer best practices/models of successful workforce housing; (4) develop and support a legislative agenda to increase the supply of workforce housing; and (5) increase financial resources for housing production (i.e. explore a regional housing trust fund).

Financial institutions interested in joining this coalition should call (603) 766-3131 or send an e-mail to

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Central District Stamp
Central District
Paul Ginger (312) 360-8876
Norma Polanco (216) 447-8866

A Beacon of Hope for the Homeless

The Light House Mission, a 150 year old social service agency that provides both temporary, and permanent, shelter for the homeless, and offers opportunities for self-sufficiency for Southwest Indiana's underserved individuals.   The Light House Mission manages several sites, including a 130,000 square foot facility that provides 19 long-term housing units, and provides 450-500 meals a day.   Most recently the Light House Mission has acquired an old school building that they are planning to convert to additional long-term housing.   Throughout the years, the Light House Mission has worked with a number of financial institutions to rehab its facilities, but currently is seeking more favorable terms to modernize the kitchen and bathrooms in its primary location, in Terre Haute, Indiana.   In addition, the Light House Mission is seeking financing to rehab the school to convert it to provide supportive services and housing.   Additional opportunities include providing technical assistance for fundraising and grant writing, as well as participation on its board of directors.  

For further information, contact Tim Fagg, Executive Director, at (812) 232-7001.  

Capital Funds Expand Bank Financing Power

Minnesota Community Capital Fund (MCCF) is a two-year-old, statewide nonprofit organization that makes flexible, subordinated loans to small businesses outside of the Twin Cities area for fixed assets and working capital.   All loans from MCCF require a bank as a senior lender - MCCF absorbs risk that banks cannot accept, and helps banks finance projects that otherwise would exceed their legal lending limits.   MCCF, which derives its capital from investments made by its 66 members, employs a streamlined underwriting and loan closing process to deliver its financing in a timely manner. It is funded entirely by origination fees and interest.   MCCF's membership includes local and county governments, regional economic development agencies, utilities, and revolving loan funds, which join MCCF to expand their economic development impact and to leverage private sector financing for community development purposes.   A companion fund, the Twin Cities Community Capital Fund (TCCCF), which began operating in the summer of 2005, provides the same services in the Twin Cities metro area.   MCCF and TCCCF have an arrangement with the Community Reinvestment Fund (CRF) of Minnesota under which CRF purchases the loans originated by the two organizations.   Banks can participate in MCCF and TCCCF by: (1) structuring their subordinated loans into financing packages for small businesses and other community development projects that the banks are underwriting; (2) serving on the boards of directors of MCCF and TCCCF; and (3) purchasing securities backed by MCCF and TCCCF loans.  

For more information, visit or or contact Scott Martin at (800) 860-6223 or

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Southern District Stamp
Southern District
Karol Klim (678) 731-9723 x252
David Lewis (214) 720-7027

Community Reinvestment Fund

Community Reinvestment Fund (CRF), USA is a mission-oriented, nonprofit organization that helped pioneer the secondary market for community development finance. CRF buys community development loans from community-based lending partners and pools these loans into asset-backed debt securities. These securities are sold to institutional investors through private placements. This process enables these lenders to extend their reach and further invest in their communities by making more loans.   As the recipient of the largest combined allocation of New Markets Tax Credits ($412.5 million), CRF capitalized on its expertise in working with institutional investors to lead the implementation of this federal program to further attract private investors and drive additional capital into the country's most underserved communities. A critical source of funds to replenish the loan capacity of CRF's lending partners comes from institutional investors who make market rate capital investments and socially motivated investors who make direct investments.

For additional information, contact Mary Tingerthal, Senior Vice President, Capital Markets or Warren McLean, Vice President of Development at (612) 338-3050 or visit the organization's website at

Texas Association of Community Development Corporations, (TACDC)

The Texas Association of Community Development Corporations, (TACDC) is a statewide membership association of 138 non-profit and for-profit Community Development Entities (CDEs), banks, and other companies committed to serving low- and moderate-income (LMI) individuals and communities.   This membership forms a statewide network serving both urban and rural areas of Texas.   Its members are developers of affordable housing and commercial real estate and provide small business and economic development loans. Others provide home mortgage and home improvement financing and consumer education.   Many national banks currently partner with CDEs to help serve the credit needs of their entire communities, including LMI areas. TACDC's membership continually strives to create an environment that fosters cooperation with banks and the private sector to stimulate neighborhood revitalization and improvement in the quality of life for low income Texans.  

To find a CDE in your area or to access information on one of the Texas CDEs, please visit the TACDC web site at or call (512) 457-8232.

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Western District Stamp
Western District
Susan Howard (818) 240-5175
Dave Miller (720) 475-7670

Rural Enterprise Assistance in Nebraska

The Center for Rural Affairs' Rural Assistance Project (REAP) is Nebraska's largest microenterprise program.   REAP targets rural microenterprise through six regionally based business specialists.   REAP provides access to capital, training, technical assistance and networking opportunities for Nebraska's small, rural business owners.   REAP also maintains Nebraska's only Women's Business Center. This Center provides capital and support to women-owned rural small businesses.   In addition to providing technical assistance and training, REAP provides direct loans for up to $25,000, a "peer-group/step up lending" program for loans up to $10,000, and a small business micro loan program for loans up to $5,000. REAP can assist small business owners in developing business plans.   REAP and the Women's Business Center use the NxLevel Business Plan Basics for MicroEntrepreneurs curriculum to deliver the training in collaboration with the Nebraska EDGE program, the umbrella organization for rural entrepreneurial training programs.   Nebraska banks can support REAP by: (1) referring small business owners with non-bankable loan requests; (2) by providing sponsorship for entrepreneurial training programs; and (3) providing technical resources.  

For additional information contact Jeff Reynolds, REAP Program Co-Director at (402) 656-3091 or

California Community Reinvestment Initiative (CCRI)

CCRI is a training and capacity building initiative sponsored by the County of San Bernadino and several financial institutions in southern California. Its goal is to assist communities in identifying and developing solutions to urban and rural housing and economic development challenges. San Bernadino is one of the fastest growing counties in the country and experienced a 31 percent increase in single-family home prices over the last year. The county saw a need for more comprehensive community development planning in its communities, and sought a different perspective on the process. The California Community Economic Development Association (CCEDA), a statewide training association with experience in California and Nevada, is providing the training and technical assistance.   The sessions include: (1) a community analysis (understanding how a community fits into the context of a larger market); (2) strategies of intervention (mitigating the impact of soft markets); and (3) a strategic plan that will enable communities to mobilize resources and stabilize or turn themselves around.  

Information regarding the sessions is available from Delores Armstead of the County of San Bernardino at

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