This week we are once again joined by Oswaldo Acosta, President and CEO of City First Enterprises for the second part of our look at mortgage assistance programs and securitization concepts.
Many low- and moderate-income (LMI) individuals struggle to become homeowners due to down payment requirements and limited credit access. While public Mortgage Assistance Programs (MAPs) exist, they lack scale and consistent funding. This report proposes a new solution: Community Benefit Bonds (CBBs). These bonds would attract impact investors by securitizing MAPs, offering financial returns alongside positive social impact. Careful underwriting ensures CBBs target LMI communities, and data-driven frameworks assess their impact. CBBs have the potential to increase homeownership access for underserved communities, leverage private capital alongside public funding, and create a sustainable model for mortgage assistance. Challenges include developing robust standards and attracting investors, but pilot programs and data transparency can pave the way for success. CBBs could revolutionize mortgage assistance and bridge the homeownership gap for many.