Barry Wides
09-04-2007, 11:05 AM
OCC Focuses on Employer Assisted Mortgage Programs
WASHINGTON - The Office of the Comptroller of the Currency (OCC) today
released a Community Developments Insights report entitled,
"Understanding Employer Assisted Mortgage Programs: A Primer for
National Banks <http://www.occ.gov/cdd/2007-88a.pdf> ," highlighting key
features of employer assisted mortgage programs and opportunities for
bank involvement with these initiatives.
"America's labor force is being squeezed out of many high cost housing
markets," observed Comptroller of the Currency John C. Dugan, "and the
gap between affordably priced housing and wage increases has been
widening. Employer assisted mortgage programs provide a good opportunity
to help close that gap in many communities."
Employers, including national banks, are recognizing the benefits of
providing mortgage assistance that allows their employees to live
affordably closer to their work site. Such programs help employers
attract and retain valuable employees. This is particularly important
when employees are emergency first responders, or when they must commute
long distances to find affordable housing.
Some employer assisted programs include a forgivable second mortgage,
closing cost assistance, and homeownership education as an employee
benefit. Some banks offer these mortgage programs to their own
employees, or provide mortgage financing and other services to local
employers offering their own employer assistance programs.
Banks have found that employer assisted programs can stimulate new
mortgage business and attract new bank customers. Banks participating
in these programs can also help meet their Community Reinvestment Act
obligations by providing mortgages to low- or moderate-income homebuyers
or purchasers of properties in low- or moderate- income neighborhoods.
This Community Developments Insights report examines the primary risks
and regulatory considerations associated with employer assisted
mortgages. It also illustrates how lenders can implement their own
successful employer assisted programs or work with other employers to
create such a program as part of its relationship and service
development.
The report can be found on the news release page of the OCC Web site by
going to http://www.occ.gov and clicking on the news release button on
the left side of the page, or by visiting
http://www.occ.gov/cdd/resource.htm for the OCC Community Affairs
publications page.
This post transferred from the cdb-l mailing list
WASHINGTON - The Office of the Comptroller of the Currency (OCC) today
released a Community Developments Insights report entitled,
"Understanding Employer Assisted Mortgage Programs: A Primer for
National Banks <http://www.occ.gov/cdd/2007-88a.pdf> ," highlighting key
features of employer assisted mortgage programs and opportunities for
bank involvement with these initiatives.
"America's labor force is being squeezed out of many high cost housing
markets," observed Comptroller of the Currency John C. Dugan, "and the
gap between affordably priced housing and wage increases has been
widening. Employer assisted mortgage programs provide a good opportunity
to help close that gap in many communities."
Employers, including national banks, are recognizing the benefits of
providing mortgage assistance that allows their employees to live
affordably closer to their work site. Such programs help employers
attract and retain valuable employees. This is particularly important
when employees are emergency first responders, or when they must commute
long distances to find affordable housing.
Some employer assisted programs include a forgivable second mortgage,
closing cost assistance, and homeownership education as an employee
benefit. Some banks offer these mortgage programs to their own
employees, or provide mortgage financing and other services to local
employers offering their own employer assistance programs.
Banks have found that employer assisted programs can stimulate new
mortgage business and attract new bank customers. Banks participating
in these programs can also help meet their Community Reinvestment Act
obligations by providing mortgages to low- or moderate-income homebuyers
or purchasers of properties in low- or moderate- income neighborhoods.
This Community Developments Insights report examines the primary risks
and regulatory considerations associated with employer assisted
mortgages. It also illustrates how lenders can implement their own
successful employer assisted programs or work with other employers to
create such a program as part of its relationship and service
development.
The report can be found on the news release page of the OCC Web site by
going to http://www.occ.gov and clicking on the news release button on
the left side of the page, or by visiting
http://www.occ.gov/cdd/resource.htm for the OCC Community Affairs
publications page.
This post transferred from the cdb-l mailing list