Participation Lending

CHC uses a loan participation model to better respond to the needs of the NeighborWorks network borrowers. The leverage aspects of this model allow us to meet the needs of borrowers seeking to acquire larger properties without concentrating too much of our portfolio in a few loans. Particularly for larger loans, those of $8.5 million or more, we will sell a percentage to a third-party (commercial banks, or other CDFIs) that shares our mission to benefit low- to-moderate income communities. To maintain a continued relationship with our borrowers, CHC is the underwriter, originator and servicer of these loans.