Steven Sugarman is the founder and president of the Capital Corps., a California-based Community Development Financial Institution. Previously, he founded and served as chairman and CEO of the Banc of California.
Two decades ago, policymakers created Community Development Financial Institutions, or CDFIs, to bring lending to underserved communities. Now, steps must be taken to strengthen the CDFI program as a critical step to solve the mortgage and credit challenges facing this demographic. Here’s what needs to be done, and why taking action should be a no-brainer.
For anyone actively working in the mortgage industry, it’s no secret that reverse mortgages have taken a brutal hit in the last two years. The U.S. Department of Housing and Urban Development issued major program changes at the end of 2017 that effectively limited the amount of proceeds and the number of people who could qualify for the loan. The result had lenders across the space enduring sizable volume drops and subsequent gashes to their bottom lines.