TD Bank launches three-year plan to invest $10B in affordable homeownership

Key Takeaways:

– TD Bank plans to invest $10 billion in affordable homeownership initiatives by 2027, focusing on first-time homebuyers and minority borrowers in specific markets.
– The bank will provide loans and liquidity to the residential lending market, offering low down payment and customer-friendly terms.
– The investment is part of TD Bank’s three-year Community Impact Plan, which aims to direct $20 billion towards lending, philanthropy, and banking access for underserved communities.
– The bank also plans to provide $7.5 billion in community development loans and investments, including affordable housing projects for veterans and LGBTQ seniors.
– TD Bank will offer $2.8 billion in credit to small businesses, with a focus on minority-owned, women-owned, and veteran-owned enterprises.
– The bank will open approximately 15 locations in low- to moderate-income or majority-minority markets, with dedicated spaces for financial education workshops and nonprofit meetings.

HousingWire:

New Jersey-based TD Bank has decided to invest $10 billion in affordable homeownership initiatives by 2027, including providing loans and liquidity to the residential lending market. 

The investment represents half of the bank’s three-year Community Impact Plan announced Wednesday, which will direct $20 billion to lending, philanthropy, and banking access, among other initiatives, for the benefit of diverse and underserved communities. 

In the mortgage space, TD Bank was a top-35 U.S. lender in the nine first months of 2023, originating $6.5 billion in loans, down 25% year over year, according to Inside Mortgage Finance estimates. 

The bank has presence in 15 states and Washington, D.C. However, the billions of dollars in investment in affordable homeownership will focus on first-time homebuyers and home equity loans for LMI and minority borrowers, especially in the Boston, Baltimore, D.C., New York, Miami and Philadelphia markets. 

Borrowers will have access to the bank’s Special Purpose Credit Program (SPCP), known as TD Home Access, and other products with low down payment and customer-friendly terms. 

TD Bank’s plan also includes $7.5 billion in community development loans and other investments, including affordable housing projects. An example of these initiatives is special rental housing for veterans or LGBTQ seniors. 

“One of our primary objectives as a purpose-driven bank is to help power economic opportunities that help low- and moderate-income (LMI), diverse and underserved communities achieve their financial goals,” Leo Salom, president and CEO at TD Bank, said in a statement. 

The bank’s plan also includes $2.8 billion in credit to small businesses (with less than $1 million in annual revenue.) The bank will create a SPCP for minority business, women-owned or veteran-owned enterprises. 

TD Bank also announced it will open about 15 locations in LMI or majority-minority markets (subject to regulatory approvals.) The plan is to create additional community-centered stores, with dedicated spaces for financial education workshops and nonprofit meetings.

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Property Chomp’s Take:

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Recently, TD Bank, a New Jersey-based financial institution, made an exciting announcement regarding its commitment to affordable homeownership initiatives. The bank has pledged to invest $10 billion by 2027, with the aim of providing loans and liquidity to the residential lending market. This investment is part of TD Bank’s larger Community Impact Plan, which will allocate $20 billion towards various initiatives benefiting diverse and underserved communities.

TD Bank, already a significant player in the mortgage industry, will focus on supporting first-time homebuyers and offering home equity loans to low- to moderate-income (LMI) and minority borrowers. The bank will target markets such as Boston, Baltimore, D.C., New York, Miami, and Philadelphia, where the need for affordable homeownership is particularly high.

To facilitate access to affordable housing, TD Bank will make use of its Special Purpose Credit Program (SPCP), known as TD Home Access. This program, along with other products, will provide borrowers with low down payment options and customer-friendly terms. By offering these specialized programs, TD Bank aims to empower individuals and families with the opportunity to achieve their financial goals and become homeowners.

In addition to the $10 billion investment in affordable homeownership, TD Bank will allocate $7.5 billion towards community development loans and other investments, including affordable housing projects. The bank’s commitment extends to supporting initiatives such as rental housing for veterans or LGBTQ seniors. By investing in these projects, TD Bank is actively addressing the housing needs of underserved communities and promoting inclusivity.

TD Bank’s Community Impact Plan does not stop at homeownership. The bank has also pledged $2.8 billion in credit to small businesses with less than $1 million in annual revenue. To further support minority-owned, women-owned, and veteran-owned enterprises, TD Bank will establish a Special Purpose Credit Program specifically tailored to their needs.

Additionally, TD Bank plans to open approximately 15 locations in low- to moderate-income or majority-minority markets, subject to regulatory approvals. These community-centered stores will provide dedicated spaces for financial education workshops and nonprofit meetings, reinforcing TD Bank’s commitment to supporting the communities it serves.

Leo Salom, president and CEO at TD Bank, emphasized the bank’s dedication to empowering LMI, diverse, and underserved communities to achieve their financial goals. TD Bank’s purpose-driven approach aims to create economic opportunities and foster financial well-being for all individuals and businesses.

In conclusion, TD Bank’s $10 billion investment in affordable homeownership initiatives demonstrates its commitment to making a positive impact in diverse and underserved communities. Through specialized programs, loans, and community development investments, TD Bank is working towards increasing access to affordable housing and supporting the financial growth of individuals, families, and small businesses. This initiative not only strengthens TD Bank’s position in the mortgage and lending market but also reinforces its reputation as a purpose-driven bank dedicated to improving the lives of those it serves.

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