Calif. Insurers Unveil Affordable Housing Investment

August 16, 2000

IMPACT Community Capital, comprised of a group of California’s leading insurance companies, unveiled a first-of-its-kind pooled investment in affordable housing for communities throughout that state.

In addition, it was announced that Nationwide Mutual Insurance Company had recently committed to becoming the newest addition to the IMPACT team, which counts as its other insurer/members Allstate Insurance Company, Farmers Insurance Companies, Pacific Life Insurance Company, PMI Mortgage Insurance Company, SAFECO Insurance, State Farm Insurance Companies, Teachers Insurance and Annuity Association and 21st Century Insurance Company.

IMPACT recently completed its first investment transaction, in which organization members purchased from the California Community Reinvestment Corporation the mortgages of 12 multi-family rental housing properties comprising 1,456 units. Through the purchase of the mortgages, IMPACT’s members provided $40.5 million, which will be recycled into additional mortgage loans for low- and moderate-income families.

Each of the properties in the loan pool provides housing for families with incomes not exceeding 50 percent of area meridian income. The pool of loans, rated by Standard & Poor’s, were also securitized. Thomas C. Sutton, chairman of the board and CEO of Pacific Life Company, said that IMPACT’s initial transaction demonstrated the organization’s commitment to investing in all of California’s communities.

Dan C. Dunmoyer, president of the Personal Insurance Federation of California said that the transaction proved that community investing could be successfully accomplished for both insurers and communities. Dunmoyer also called on the industry to join the companies that created IMPACT in an effort to strengthen California communities.

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