OCC Report Examines Partnership Models in Handling Foreclosures

Posted under Publications on March 11, 2009

The Office of the Comptroller of the Currency (OCC) this week published Community Developments Insights, a report that describes how banks and their partners in the community are working to dispose of foreclosed properties in creative ways that will preserve affordable housing opportunities and stabilize communities.

The report reviews initiatives and strategies for building partnerships between banks and nonprofit organizations, for-profit affordable housing developers, government entities, and others. The report discusses how national banks may use a variety of funding and financing tools, such as the Department of Housing and Urban Development’s Neighborhood Stabilization Program and the new markets and low income housing tax credit programs to facilitate the sale of foreclosed properties. The Insights report also provides banks with guidance regarding stabilization activities that may qualify for consideration under the Community Reinvestment Act.

This Insights report highlights partnerships between banks and other entities that are working with foreclosed or real estate owned (REO) properties in creative ways to preserve affordable housing opportunities and stabilize communities. This report reviews initiatives and strategies for building partnerships among banks or mortgage servicers and nonprofit organizations, for-profit affordable housing developers, government entities, and others that are implementing plans to create affordable rental or homeownership opportunities and revitalize areas hard hit by foreclosures. The information presented in this report was obtained from a variety of sources including financial institutions, nonprofit entities, and government agencies. Download the report here: OCCPropertyDispositionReport.pdf

(Photo Credit: Shelterforce file photo)