Magazine article Mortgage Banking

Group Launches Subprime Fair Mortgage Initiative

Magazine article Mortgage Banking

Group Launches Subprime Fair Mortgage Initiative

Article excerpt

Touted as a countermeasure to so-called predatory lenders, the Opportunity Finance Network (OFN)--a Philadelphia-based network of private-sector community-development groups--announced it is developing a "national responsible subprime mortgage platform."

OFN's Fair Mortgage[TM] initiative is a partnership between OFN and "responsible mainstream mortgage lenders" designed to leverage more private lending capital into poor communities or "opportunity markets," explained OFN President and Chief Executive Officer Mark Pinsky.

"What we want to do is get into the marketplace and demonstrate that it is possible to be a responsible subprime ... a Fair Mortgage lender," said Pinsky.

OFN, the former National Community Capital Association, is a network of 167 member financial institutions with combined assets of $4 billion. Pinsky said over its 20-year history, the group's members have financed some $9.6 billion in community-development projects--including affordable housing--with low losses or delinquencies.

With partners including a yet-to-be-named "major investment bank, a prominent wholesale mortgage lender and a national bond issuer," Pinsky said OFN expects to generate $1 billion or more per year of Fair Mortgages by 2010 after a pilot launch later this year. …

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