This new partnership will involve input from The Works Inc., a Memphis-focused community development corporation. Under this arrangement, Patriot Bank will provide lending up to $500,000, at a below market interest rate, to support The Works Inc.’s Opportunity Home Loan Fund, which provides mortgage loans of up to $50,000 to underserved borrowers for the purchase of a home. Patriot Bank will also provide $325,000 in grants to The Works Inc. for the construction and rehabilitation of homes in predominantly nonwhite communities in Memphis, along with the establishment of a loan subsidy fund to be administered by The Works Inc. to be used for down payment assistance and other housing-related programs.
Patriot Bank will also provide $100,000 in grants to nonprofit organizations to fund Patriot Bank’s existing pilot program to refinance title and payday loans with new loans containing more favorable terms for borrowers.
NFHA researched regional mortgage lending activity and identified opportunities to increase lending services in the African-American community in the Memphis region. This research will form the basis of the new mortgage origination outreach.
“We’re glad to be working with Patriot Bank to increase access to mortgage loans and support community development,” said Lisa Rice, NFHA’s president and CEO. “It is vital for local communities to have access to bank services, like residential mortgage loans. This allows more people to become homeowners and increases the opportunity for upward mobility.”
“Patriot Bank is excited about the opportunity to partner with the National Fair Housing Alliance and local community development corporations in an effort to increase mortgage lending in Memphis’ underserved areas,” said Charles Ennis, chairman and CEO of Patriot Bank. “We are proud of our accomplishments in this area and believe this partnership will allow us to expand this commitment to underserved areas in Memphis. The prosperity of these underserved areas is critical to the future success of Shelby, Tipton, and Fayette counties.”