Investing in securitized multifamily community development loans is an effective but underused way for banks to funnel capital into low-income areas, Comptroller of the Currency Eugene A. Ludwig said Thursday.

"Community development securities remain an underutilized investment option - but one I believe can help banks provide capital to their communities," Mr. Ludwig told the Massachusetts Housing Investment Corp. in Boston. "Its potential is largely unrealized as a resource to finance community development beyond single family affordable housing."

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