Not sure if it’s a “private” scam or a “public” scam, but it seems to use taxpayer money, along with “philanthropic” money, support purchases of properties around the country.
“How the REO Capital Fund Works
Access More Financing, Acquire More Homes, Achieve Greater Neighborhood Impact
To increase access to capital for community based borrowers, the REO Capital Fund leverages public and philanthropic dollars with senior debt provided by private lenders. Through a program related investment from the Ford Foundation, the REO Capital Fund is able to achieve a credit enhancement structure that enables it’s participating CDFIs to offer more flexible loan parameters to community based borrowers than otherwise available in today’s market.
Many municipalities and community-based organizations rely on Neighborhood Stabilization Program funds (NSP) for their stabilization efforts. The REO Capital Fund is designed to maximize the impact of the limited public resources and has been specifically structured to complement the needs of local housing providers using these federal funds. Community based borrowers can use the REO Capital Fund to leverage NSP or other existing funding and dramatically increase the number of properties acquired and renovated in target neighborhoods without sole reliance on the recycling of program income.”
Good to know our tax dollars are going to such noble purposes [sarcasm, in case anybody doesn’t get it].
“Credit enhancements” that allow for “more flexible loan parameters” sounds like monkey-speak for the same sort of $hit that caused the “financial crisis” in the first place.
