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Bailey McCann, Opalesque New York: Florida-based hedge fund DRI has launched a non-performing loans fund, with the goal of actually helping the communities it invests in. DRI recently brought in more than $9 million in unpaid principal balance of non-performing loans to assist residents in low and moderate income communities with housing preservation and a path to homeownership.
As an impact investment manager, DRI is also certified by the U.S. Department of Treasury as a Community Development Financial Institution. CDFIs are mission-driven financial institutions dedicated to providing financial services that meet the needs of underserved communities. In order to get this certification, DRI secured the $9.3 million UPB in single-family, non-performing loans and a loan-to-value ratio of 74%. DRI then works with homeowners and local communities to start a repayment plan.
"People don't realize that each foreclosure in their neighborhood costs 1-2% in home value," explains DRI Managing Director Christopher Aldridge, in an interview with Opalesque. "That impacts adjacent property values. Our social impact objectives are to prevent foreclosure, stabilize distressed neighborhoods, create jobs and provide affordable financing to communities underserved by mainstream banking."
One in six Americans lives in economically distressed communities in the US. In addition to offering these loans as an investment vehicle through the DRI Mortgage Opportu...................... To view our full article Click here
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