Nonprofit group the Community Reinvestment Fund USA (CRF) is lending its high-touch servicing capabilities to a new foreclosure remediation program available in the Minneapolis-St. Paul metro area. The program – the Sustainable Home Ownership Program (SHOP) – allows local housing agencies to target, acquire and rehabilitate foreclosed properties through the government's Neighborhood Stabilization Program, and then sell them to qualified borrowers on a contract-for-deed basis.
The program increases the number of potential home buyers by expanding financing options, while allowing borrowers to "bridge" to a conventional mortgage product when they reach a financial position to do so. CRF is aiding the initiative by providing one-on-one loan servicing to SHOP borrowers.
CRF focuses on customized projects for nontraditional loan portfolios and mission-driven organizations, such as the two Twin Cities nonprofit organizations that created the SHOP program. CRF provides contract loan servicing for lenders around the country and is the only nonprofit servicer rated "Select" by Standard and Poor's.