CRA-Targeted Investments

Since 1977, the Community Reinvestment Act (CRA) has required banks to assist in meeting the credit needs of families within the geographic areas where your business is primarily conducted, including loans to low- and moderate-income borrowers.


Ƶapp. (MBS) has established a CRA Trading Desk to provide financial institutions access to CRA-eligible investments. This can help you meet your “Investment or Community Development Test” requirements for those aspects of your Community Reinvestment Act (CRA) examinations.

Our multi-supplier network provides a broader universe of geo-coded loans to create customized collateral pools for your requested specifications. We also provide the documentation required by regulators to demonstrate CRA investment test eligibility.

For Specified Pool, Single-Family Mortgage-Backed Securities (SFMBS)
The CRA Trading Desk sources and structures unique collateral pools for Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities. We will search for CRA-eligible collateral based upon your requested specifications. These pool structures are not typically existing securities, so they would be newly-issued, agency-only SFMBS.

For Multi-family and Project Mortgage-Backed Securities (MFMBS)
While there are many multi-family and project mortgage-backed securities available, few are CRA investment test credit-eligible. The CRA Trading Desk will search for and review individual securities for potential CRA credit eligibility and offer those when available for specific inquiries.

For more information, please call (866) 330-0860.

Principal and interest guaranteed (as per Ginnie Mae, Fannie Mae and Freddie Mac).
No or low “risked-based capital” holdings requirements.
May be used to secure other borrowings.
Secondary market.

Competitive yields.
No management fees.
Agency conforming loan underwriting standards.

Ƶapp. can make no representations to an institution as to whether these securities will receive CRA credit from their examiners. Individual examiners have some latitude in this area. Institutions should contact their regulator for any guidance they may require.