M&T Realty Capital Corp. and City First Bank have entered a correspondent relationship that will expand the bank’s capacity to serve affordable housing investors and developers.
The largest Black-led minority deposit institution in the United States, City First Bank reported more than $1.2 billion in assets as of June 30.
Specifically, the two companies have entered a correspondent relationship that will provide City First borrowers with access to M&T Realty Capital Corp.’s Fannie Mae Delegated Underwriting and Servicing, Freddie Mac Optigo, and Federal Housing Administration (FHA) lending capabilities for conventional and affordable multifamily loans.
Officials reported reviewing more than 20 years since July and have several more in the review pipeline.
“The ability to provide excellence in products and services, especially for the minority developers and investors of multifamily residential properties we serve matters,” said Brian Argrett, CEO of City First Bank. “This partnership with M&T Realty Capital Corp. expands lending options and access for the customers of City First Bank.”
City First Bank serves many minority-owned developers and investors in multifamily housing who historically have been underserved and underrepresented in the local real estate markets, according to the company.
Its focus includes the low- and moderate-income areas of the District of Columbia, Baltimore, and the surrounding suburban communities as well as the California counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura.
In 2022, City First provided $173 million in new multifamily affordable housing loans to preserve or create 1,463 units. Additionally, it provided $61 million in new loans to 19 African American-owned or -led organizations last year.
“We are very excited to enhance our relationship with City First by providing liquidity and financial solutions to their workforce and affordable housing customers. City First is deeply engaged in the affordable housing community and the ability to provide Fannie Mae, Freddie Mac, and FHA lending will further their capability to support minority developers and investors,” said Michael Berman, CEO of M&T Realty Capital Corp., a subsidiary of M&T Bank. It specializes in providing competitive financing nationwide for multifamily properties, commercial income properties, and health care facilities.