Revitalizing communities by establishing housing rehabilitation loan programs is the focus of the latest edition of the Investments newsletter published by the Office of the Comptroller of the Currency (OCC). The “Expanding Housing Opportunities: Single-Family Rehabilitation Financing Programs” edition describes how banks can make home renovation loans in distressed areas, with guidance for such programs set out in OCC Bulletin 2017-28, “Mortgage Lending: Risk Management Guidance for Higher-Loan-to-Value Lending Programs in Communities Targeted for Revitalization.” In a release, the OCC said the publication highlights significant revitalization efforts in neighborhoods in Detroit, Baltimore, and other cities, and explains how federal and government-sponsored enterprise loan programs as well as tax credits are supporting community and bank rehabilitation financing initiatives. The publication also addresses how community development-related home rehabilitation efforts can qualify for consideration in a bank’s Community Reinvestment Act evaluation.
OCC Publication Focuses on Single-Family Rehabilitation Financing Programs