Mortgage Acquisition
MetaFund acquires mortgages from nonprofit originators like Habitat for Humanity, providing them with the funds they need to continue developing quality, affordable housing for families.
History
MetaFund has purchased over 450 loans, totaling nearly $35 million, from multiple Habitat for Humanity affiliates and other nonprofit lenders across several states. MetaFund, in partnership with loan servicers and community development organizations, works closely with the borrowers through gentle and patient collection processes, one-on-one financial counseling services, and home ownership seminars. As a result of these efforts, MetaFund has rarely been forced to foreclose.
Transaction Process
In general, the process for selling mortgages follows the steps below:
The Habitat for Humanity affiliate provides MetaFund with information regarding the loans to be sold, including borrower names, balances, payment information, and collection histories.
MetaFund works with the affiliate to analyze the loans and determine pricing based on loan characteristics.
MetaFund utilizes standard closing documents to complete the purchase quickly.
Transactions can be closed within 30 days of initiation.
MetaFund’s discount rate is typically lower (better) than that recommended by Habitat International, thereby resulting in a potential gain to the affiliate upon sale.
MetaFund is flexible as to who provides servicing, but we have a direct relationship with a third-party servicer, if needed.
MetaFund typically requests a limited number of “put backs” to the seller to protect against atypical risks.
Typically, the affiliate has the unilateral right to repurchase a loan which is entering the foreclosure process in the event the affiliate desires a different approach.
Contact Us
If you’re a Habitat for Humanity affiliate or other nonprofit lender interested in selling mortgages, please contact us for more information.