TD Bank (No. 38 on the DiversityInc Top 50 Companies list) has announced that its Commercial Lending Group in Connecticut closed a $50 million direct purchase bond facility that will finance nearly 300 mortgages for low-to-moderate income borrowers purchasing their first homes, or borrowers who have not owned a home in the past three years. The bond facility was purchased for the Connecticut Housing Finance Authority (CHFA) and was closed by Andrew Webster, TD Bank senior relationship manager.
The financing of these mortgages directly reinforces TD Bank's mission of supporting affordable housing and assisting those in its community to achieve their homeownership dreams. The deal represents a portion of a$175 million hybrid direct bond purchase and liquidity facility, which the CHFA rcently closed in partnership with another financial institution.
"TD Bank is proud to work with the CHFA to help fund their initiative to continue providing affordable housing throughout Connecticut," said Michael LaBella, Market President for TD Bank. "Owning a home is a huge accomplishment and it's a goal for many of our customers, but circumstances may make it difficult to get a conventional mortgage. By supporting this program, we are able to help these dreams become a reality."
Founded in 1969, the CHFA seeks to increase Connecticut's housing supply and assist in the purchase, development and construction of housing for low-to-moderate income individuals across the state. The CHFA only recently began working with lenders like TD Bank to purchase bonds and considers this a successful strategy for future bond issues.
"In addition to helping homebuyers realize their American dream, CHFA's bonds provide an opportunity for investors, like TD Bank, to purchase highly rated AAA/Aaa bonds for their portfolios and to invest in their communities and state," said Hazim Taib, Chief Financial Officer at CHFA. "For first-time buyers, these mortgages are also affordable, with low interest rates and down payment assistances."