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New Jersey-based TD Bank has decided to invest $10 billion in affordable homeownership initiatives by 2027, including providing loans and liquidity to the residential lending market.
The investment represents half of the bank’s three-year Community Impact Plan announced Wednesday, which will direct $20 billion to lending, philanthropy, and banking access, among other initiatives, for the benefit of diverse and underserved communities.
In the mortgage space, TD Bank was a top-35 U.S. lender in the nine first months of 2023, originating $6.5 billion in loans, down 25% year over year, according to Inside Mortgage Finance estimates.
The bank has presence in 15 states and Washington, D.C. However, the billions of dollars in investment in affordable homeownership will focus on first-time homebuyers and home equity loans for LMI and minority borrowers, especially in the Boston, Baltimore, D.C., New York, Miami and Philadelphia markets.
Borrowers will have access to the bank’s Special Purpose Credit Program (SPCP), known as TD Home Access, and other products with low down payment and customer-friendly terms.
TD Bank’s plan also includes $7.5 billion in community development loans and other investments, including affordable housing projects. An example of these initiatives is special rental housing for veterans or LGBTQ seniors.
“One of our primary objectives as a purpose-driven bank is to help power economic opportunities that help low- and moderate-income (LMI), diverse and underserved communities achieve their financial goals,” Leo Salom, president and CEO at TD Bank, said in a statement.
The bank’s plan also includes $2.8 billion in credit to small businesses (with less than $1 million in annual revenue.) The bank will create a SPCP for minority business, women-owned or veteran-owned enterprises.
TD Bank also announced it will open about 15 locations in LMI or majority-minority markets (subject to regulatory approvals.) The plan is to create additional community-centered stores, with dedicated spaces for financial education workshops and nonprofit meetings.
