National Cooperative Bank intends to announce this week what it will tout as an innovatitve sale of securitized loans that were part of a special program designed to finance affordable housing in Washington.
NCB officials confirmed last week that the securities had been privately placed but wouldn't release any more details prior to news conferences July 1-2 in New York and Washington. It is likely, however, that the sales represent a widening of the pool of housing loans, that can be put on the secondary market.
NCB President Charles Snyder said the new securitization is based in part on the bank's experience, pooling and securitizing $600 million worth of emperative housing in other cities, mainly New York. He said his bank's affordable housing portfolio has weathered the recession well.
The money involved comes from Project LEND, an initiative set up by NCB and American Security Bank, also of Washington, and which now claims a total of six banks as participants. During its three-year history Project LEND has committed $7.6 million to help finance the renovation of 267 cooperative housing units for low- to moderate-income families. Its money provides about half the funds needed for the renovations; local government subsidies and equity from participating community groups provide the rest.