Live at the Forum: Intermediary Lending Products for NSP Grantees

The December 3 installment in the Federal Reserve Bank of Atlanta's Foreclosure Response podcast series features Tyler Van Gundy of the National Community Stabilization Trust discussing various intermediary lending products the Trust has developed to support Neighborhood Stabilization Program strategies. After you have listened to the podcast, join us on the Forum on Wednesday, January 27 from 2 - 4:00 p.m. EST (11:00 a.m. - 1:00 p.m. PST), to get answers to your questions about the podcast.

Listen to the podcast: This installment in the Federal Reserve Bank of Atlanta's Foreclosure Response podcast series was made available for download on Friday, December 3.

Interact with the speaker: On Wednesday, January 27 from 2 - 4:00 p.m. EST Tyler Van Gundy will be online to answer your questions. All questions should be posted to this thread by pressing the Add Reply button. You are welcome to post at any time leading up to or during the online Q&A session. Questions will be answered on a first-come, first-served basis until time runs out, so post early to be sure yours is addressed.

Note: You will need to refresh your browser from time to time to see new responses as they are added.

About the Foreclosure Response podcast series
The Foreclosure Response podcast series is made available by the Federal Reserve Bank of Atlanta. Through interviews with experts on various facets of foreclosure - from neighborhood impacts to loan modifications to new strategies - listeners will be engaged in understanding the problems and advancing solutions. Each week, beginning September 24, 2009, and continuing for more than ten weeks, a new interview will be released. HousingPolicy.org is partnering with the Federal Reserve Bank of Atlanta to offer online Q&A with the speakers.

Tags: NSP, live at the forum

Replies to This Discussion

Permalink Reply by Rebecca Cohen on January 27, 2010 at 12:44pm

In the podcast, you mention that many localities will need to ramp up their capacity in order to implement successful NSP initiatives and most leverage their federal funding allocations. Have you been working with any of the NSP-TA providers to promote interest in, and successful use of, the Trust's capital fund products?

Permalink Reply by Tyler Van Gundy on January 27, 2010 at 2:13pm

The Trust and the Captial Fund, its lending subsidiary, believe that neighborhood stabilization can be more effectively achieved through the coordination of services including (i) technical assistance, (ii) tools to access distressed property, and (iii) specialized financing. Through our six sponsor network, which provides technical assistance, the Capital Fund is in contact with local stabilization programs to promote the use of the Capital Fund where appropriate.

Permalink Reply by Dawkins Hodges on January 27, 2010 at 1:44pm

What is the size of the fund you are managing? Can you say more about the terms offered, limits, other qualifications other than being an NSP recipient? How much has NCST lent so far and what's the geography covered?

Permalink Reply by Tyler Van Gundy on January 27, 2010 at 2:39pm

The Capital Fund is a national program. We generally expect to operate in neighborhoods targeted by local borrowers implementing a neighborhood stabilization strategy. We are currently underwriting our first transactions, with our contracted Program Originators actively working on many more. We have more than enough resources to meet current demand, with the ability to raise additional funds as needed. Our primary products are: (i) Bridge revolving lines of credit to provide liquidity to local borrowers in accordance with their NSP allocations, and (ii) Acquisition and Rehabilitation revolving lines of credit, which leverage private capital with local subsidy. Our Acq & Rehab lines feature an extension option that converts short-term acq & rehab loans to "mini-perm" Acq & Hold loans.

Permalink Reply by Ryan Sherriff on January 27, 2010 at 2:13pm

How is NCST looking to increase its scale and capacity in the future as local needs and demand for your loan products increase, particularly the need / demand for "mini-perm" loans?

Permalink Reply by Tyler Van Gundy on January 27, 2010 at 2:55pm

We've built a flexible program that has the ability to bring in additional capital in line with increased demand. In particular, we recognize that many hard-hit communities will likely need a "mini-perm" product to ride out current challenges in their housing markets. Our Acq. & Rehab. product, convertible to the Acq. & Hold "mini-perm" loan, is one way in which we'll look to address future demand. If needed, we'll source additional capital as well.

Permalink Reply by Maya Brennan on January 27, 2010 at 2:50pm

When the Capital Fund assesses loan applications, is any extra weight given to plans that involve rehab as permanently affordable housing, such as through deed restrictions or other shared equity mechanisms?

Permalink Reply by Tyler Van Gundy on January 27, 2010 at 3:03pm

The Capital Fund has been designed to work closely with NSP. Its affordability targets generally track the NSP targets. With respect to the duration of affordability restrictions, the NSP guidelines are the HOME guidelines, and so the Capital Fund has adopted those as well. We'll take a look at more aggressive affordability restrictions on a case-by-case basis in the context of our underwriting.