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Commissioner Lovelace participation in new loan programs

City Commissioner Dean Lovelace today joined with other community representatives to promote two financial assistance programs - one to help homeowners meet their mortgage payments, including victims of Predatory Lending, and the other to help small business owners obtain loan money. A summary of each loan program is outlined below.

Fair Lending Consumer Rescue Initiative

The National Community Reinvestment Coalition (NCRC) has created an “Anti-Predatory Lending Consumer Rescue Fund” (CRF) to help people who feel they are victims of Predatory Lending or cannot meet their mortgage payments due to extreme hardship.

“The CRF gives borrowers at risk of foreclosure a fresh start,” Commissioner Lovelace said. “The Rescue Fund targets consumers who are in ‘high risk’ mortgages, consumers who have made good faith efforts to pay their loans but are unable to do so due to a change in circumstances, and senior citizens who have recently refinanced their home and may be at risk.”

Dayton residents interested in the program should contact the local Community Reinvestment Institute at 853-1605 or 853-1606 for further advice and counseling. This group will work with homeowners to refer their cases to the National Community Reinvestment Coalition. If the NCRC agrees the application meets the basic criteria, they forward it to a joint underwriting committee for processing. In many cases, the NCRC will help renegotiate the existing loan with a lender instead of processing a totally new loan application.

All Consumer Rescue Fund loans will be conventional loans with rates at or below prime, with no fees, no points and no insurance or other miscellaneous offerings. CRF loans will not carry any pre-payment penalties and NCRC will be involved with portfolio management, fair lending enforcement and related consumer follow-up.

“The purpose of the CRF is simple - to provide a national mechanism to refinance predatory and problematic loans for consumers who have tried to make payments on a good faith basis but are unable to do so,” Commissioner Lovelace said. “I encourage Dayton area residents who may be at risk of losing their home to take advantage of this valuable program.”

The program is made possible by a multi-million dollar funding and underwriting commitment from Household International, the Ford Foundation and the Heron Foundation.

CommunityExpress Pilot Loan Program

Sponsored by the U.S. Small Business Administration in conjunction with the NCRC, the CommunityExpress Pilot Loan Program provides money and technical assistance to traditionally underserved areas. Financing that is available through this program can be used for most business purposes, such as start-up, expansion, equipment purchases, working capital, inventory, or real estate acquisitions.

CommunityExpress loans are available to persons who meet the normal requirements for an SBA business loan. However, the applicants must also be located in low- or moderate-income communities, or be identified as New Markets small businesses. (New Markets small businesses are current and prospective small businesses owned by minorities, women or veterans who are underrepresented in the population of small business owners compared to their percentage in the overall population.)

The CommunityExpress guaranty loan levels are 80 percent on loans of $100,000 or less, and 75 percent on loans of more than $100,000. The maximum loan amount is $250,000. Interest rates are negotiated but may not be more than 2.75 percent over the prime rate.

This pilot program is expected to be offered through September 30, 2005 . Bank One of Dayton is the only local financial institution offering the CommunityExpress product. Anyone interested in obtaining a loan can call Bank One at 449-4804.

“These are important financial resources for citizens and small business owners who may need assistance,” Commissioner Lovelace said. “I encourage people to get more information to decide if one of these programs may be right for them.”

For more information on the Consumer Rescue Fund, contact the local Community Reinvestment Institute offices at 853-1605 or 853-1606.

For more information about the CommunityExpress loan program, contact the National Community Reinvestment Coalition at 202-628-8866 or visit their web site at or call the U.S. Small Business Administration at 800-U ASK SBA.

Last updated: September 26, 2003

©2003 The Dayton Defender All rights reserved.

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