Investment is intended to assist homeowners in California, Nevada and New York
LOS ANGELES and OAKLAND, Calif. – City National Bank today announced that it has invested $5 million in Neighborhood Housing Services of America (NHSA) to support NHSA’s foreclosure mitigation efforts in California, Nevada and New York.
Based in Oakland, Calif., NHSA is a national nonprofit affordable housing and community development organization.
The $5 million investment provides NHSA with the “patient capital” to maintain dividend payments to investors holding distressed mortgages while it works with homeowners to refinance, restructure or modify those mortgages. The investment fund, which will be replenished as borrowers bring their loans up-to-date, has increased NHSA’s “patient capital” capacity by approximately 25 percent.
NHSA already has used the investment proceeds to help borrowers in Southern California, the Las Vegas area and New York state avoid foreclosure. None of those mortgages were originated by City National, which has foreclosed on only two residential properties since it began originating home mortgage loans in 1994.
The Community Reinvestment Act-eligible investment provides NHSA with the temporary funding to expand its foreclosure mitigation efforts in response to the growing number of possible foreclosures.
NHSA President and CEO Mary Lee Widener praised City National Bank’s leadership. “City National Bank’s support for NHSA’s ‘patient capital’ approach is helping many borrowers avoid foreclosure,” she said. “We hope this will pave the way for other lenders to help us support local NeighborWorks groups as they work to keep borrowers in their homes and sustain healthy neighborhoods in low- and moderate-income communities.”
The NeighborWorks network includes more than 230 community development organizations working in more than 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico.
“Stable home ownership plays a critical role in keeping our communities vibrant and healthy,” said Robert Iritani, executive vice president in charge of City National’s Specialty Banking Division. “The recession has severely affected homeownership in many lower-income neighborhoods. This funding will help many responsible borrowers keep their homes, and, in doing so, it will contribute to the strength and vitality of our communities.”
The investment in NHSA is part of the bank’s ongoing efforts to strengthen local communities through lending and equity investments in projects that promote affordable housing, small business and community development.
About Neighborhood Housing Services of America
Neighborhood Housing Services of America (NHSA), which marked its 35th anniversary in 2009, is a national nonprofit secondary market. NHSA collaborates with private sector institutional investors, philanthropic organizations, NeighborWorks® America and governmental entities to improve mortgage industry products and services for community initiatives. NHSA is a long-time lending resource to the community development field and, by the end of September 2009, had purchased more than $1 billion in loans.
NHSA’s lending activities are supported by its e-commerce platform, delivering Web-based automated underwriting, and loan product selection and pricing. In 2006 NHSA created NHSA-Just Price Solutions (JPS) to operate NHSA’s e-commerce platform. As a total solution for nonprofit housing providers, NHSA provides the affordable financing, services, and products that strengthen communities and improve lives for the long term. More at www.NHSAonline.org
About City National
City National Bank is the wholly owned subsidiary of City National Corporation (NYSE: CYN). It is backed by $18.4 billion in total assets, and provides banking, investment and trust services through 64 offices, including 16 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada and New York City. The company and its eight majority-owned investment affiliates manage or administer $53.4 billion in client investment assets, including nearly $35 billion under direct management.
For more information about City National, visit the company’s Website at cnb.com