Housing Fund Adds 3 Members
Samco, the big California organization that funds low-end housing, has added three financial institutions as members, bringing its total to 98.
Golden Coin Savings and Loan Association, San Francisco; Sterling Bank, Los Angeles; and the National Bank of Southern California, Santa Ana, signed on in mid-May.
Unlike many banking consortiums, Samco does not manage a pool of funds. It underwrites loans, and the thrifts and banks participate -- much like a traditional commercial loan arrangement.
Oversubscribes Loans
Despite the failures in the savings and loan industry, Samco has grown steadily, said Chalres Goetze, executive director. The group always oversubscribes loans, he said. "If someone drops out, then other participants pick up their part of the loan."
Ten Samco members are now under the control of the federal government. "They are not actively participating," said Mr. Goetze. Their names are kept on the roster in hopes an acquirer will continue the commitment.
Since 1971, Samco has provided $274 million in financing to help create more than 9,000 affordable housing units.
