CharterMac Shares Offer Banks CRA Exam Credit

Stuart Boesky, president and chief executive of Charter Municipal Mortgage Acceptance Co., says he has a way for banks to meet their Community Reinvestment Act investment budgets by yearend.

The New York company, also known as CharterMac, which invests in tax-exempt bonds to finance affordable rental housing, is marketing shares of its convertible preferred stock to banks as a way to meet CRA requirements and diversify CRA-related investments. Just as common stock does, the preferred shares pay quarterly dividends and may appreciate in value, but they also offer CRA credit.