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How It Works
CDT helps to expand the flow of much-needed long-term capital to the community development industry by serving as both a national direct lender and a secondary market for affordable housing mortgage loans, for new and existing multifamily rental properties. Our Debt Program focuses primarily on fixed-rate mortgages that may not be efficiently priced by commercial lenders and traditional secondary markets-whether because of their small size ($5 million and under), configuration (scattered-site and urban rehabs), affordable aspects, or lack of rated credit enhancement. Borrowers use CDT's Affordable Lending Program to obtain permanent fixed-rate loans to finance affordable rental communities.
Under CDT's Secondary Market Program, correspondent lenders that sell loans to CDT gain a number of benefits from the transaction, including an increase in liquidity, an opportunity to expand their debt product offerings, and the ability to increase CRA activity lending. CDT's Debt Programs includes fixed-rate forward commitment and immediate funding loan requests. Forward commitments are generally used to finance newly constructed communities with Low Income Housing Tax Credits. Under our Affordable Lending Program we originate loans to finance existing, seasoned affordable communities. CDT primarily follows Fannie Mae standards in its Affordable Lending and Secondary Market programs.
CDT also purchases closed individual loans and portfolios of seasoned loans on a negotiated basis.
