The U.S. Department of Treasury issued two guarantees totaling $245 million under the Community Development Financial Institutions (CDFI) Bond Guarantee Program.
Homewise received its bond loan through the Opportunity Finance Network (OFN) which issued $145 million in bonds to a group of eligible Community Development Financial Institutions including Homewise. This is the first time single-family lenders like Homewise have been able to access this funding mechanism exclusively for single family borrowers and it will mean significantly more access to high-quality, affordable mortgages for low-income New Mexicans.
Established by the Small Business Jobs Act of 2010, the CDFI Bond Guarantee Program responds to a critical market need—low-cost capital to spur economic growth and jump start community revitalization. Under the program, Qualified Issuers (CDFIs or their designees) apply to the CDFI Fund for authorization to issue guaranteed bonds worth a minimum of $100 million in total. The bonds provide CDFIs with access to substantial long-term, fixed-rate capital to reignite the economies of distressed communities.
“Homewise is thrilled that the Opportunity Finance Network chose to support affordable single-family mortgages. Home ownership is a critical component of economic development and creating vital, sustainable communities,” said Mike Loftin, CEO of Homewise, Inc.