How FIHOP Membership Works
Financial institutions are encouraged to participate in FIHOP as a means of achieving a solid financial investment that has an excellent repayment record, has a fair and equitable return on that investment, and meets CRA Investment credit needs. FIHOP was fortunate in having all 4 regulatory agencies providing guidance in its initial formation.
FIHOP finances the permanent loans associated with Low Income Housing Tax Credit developments allocated Tax Credits through the Mississippi Home Corporation (MHC). Typical first mortgage loan to value (LTV) ratios range from 25 – 35% and most recent return to the participants have been in the 6.5% range.
The loans made by FIHOP are administered by MHC, and MHC participates in the loan pool up to a maximum of 10% of each loan. Participants participate in each loan made to the extent of their commitment to the FIHOP pool and funds are only drawn down from a participant’s commitment at the time a loan is closed. A small administrative fee is charged the participant in joining FIHOP.
The FIHOP Board of Directors consists of one member from each participating financial institution and one from MHC. FIHOP has a Loan Committee that reviews and recommends to the Board for approval or denial each loan request received by FIHOP.