Premium Mortgage Offers Incentive Funds Following Regulatory Agreement With New York

0
25

[ad_1]

Under an agreement with the NYC Department of Financial Services, Premium Mortgage is creating a fund to encourage home purchases in “historically disadvantaged communities.”

The Rochester, New York-based lender was among those investigated by the regulator earlier this year for their Buffalo, New York lending practices.

NYDFS concluded its investigation by finding that there was no “evidence of willful discrimination, misconduct or other violations of the law” by the company or its employees, according to a Premium Mortgage press release. However, the company has entered into an agreement with the regulator to invest a minimum of $ 500,000 in homebuyer incentive programs.

The company was one of those that were listed by the state in red line report released in February, which found that “the apparent lack of lending from mortgage lenders, especially non-custodians, continues today in the majority neighborhoods of Buffalo and for minority homebuyers in general.” This report says that in Buffalo City, 85 percent of those who identify as black live east of Main Street, in areas that were marked with a red line in the 1930s.

At the same time, an agreement was signed with similar wording on deliberate discrimination with Hunt for mortgages Buffalo, which demanded that Hunt create a special funding program to provide $ 150,000 in rebates or subsidies on real estate loans in most minority communities.

Premium Mortgage developed Neighborhood Vitality and the technology behind it earlier this year, while the investigation is still ongoing.

Neighborhood Vitality will be advertised and its funds will be distributed through proprietary software that will identify eligible properties in underserved communities in upstate New York. It will also help promote this property to real estate agents and consumers.

“We didn’t just want to spend money on solving this problem – it’s easy – anyone can do it,” said Mike Donoghue, President of Premium, in a press release. “We wanted to find a way to get the money into the hands of those in need and use it to revitalize our neighborhoods.” The company said it has already provided $ 100,000 in benefits.



[ad_2]

Source link