Rafael Cestero, president and CEO at CPC
NEW YORK CITY—The CPC Mortgage Company LLC has been created as a subsidiary of the nonprofit Community Preservation Corporation. It will focus on agency lending business offering Freddie Mac, Fannie Mae and Federal Housing Administration products for the acquisition, refinance, rehabilitation and construction of multifamily properties. While offering products for a broad range of capital needs including flexible bridge loans, CPC Mortgage has distinct experience in affordable, stable housing, small buildings and small balance loans.
For the last two fiscal years, the mortgage group operated under the CPC umbrella. But with their originations in Fiscal Year 2018 at nearly $500 million over a portfolio of 154 loans, CPC decided it was time to officially launch CPC Mortgage Company as a stand-alone subsidiary. Its revenue will continue to support the mission of its parent organization, CPC.
“Having products that target affordable housing and small buildings is a perfect fit,” says Rafael E. Cestero, president and CEO of CPC. “Those are areas where our decades of experience put us in a position to provide unmatched value to our customers and communities.”
In distinguishing CPC from the new mortgage company, a source close to the recent strategic decision tells GlobeSt.com that CPC will still focus on providing capital to multifamily projects in New York State. The source states that CPC Mortgage will be competing in the marketplace, with a goal to diversify revenue for its parent company, allowing CPC to have a deeper impact with its investments in housing across New York State.
Founded in 1974, CPC is a nonprofit finance company, which works on creating and supporting affordable housing and community revitalization. It will continue to provide options in construction lending, permanent lending and equity investing products. This means construction financing and long-term permanent mortgages, both of which can be committed up to 24 months in advance for projects in New York State. CPC's Equity Investing initiative provides equity financing for affordable rental housing. Any lending involving Fannie Mae, Freddie Mac and FHA will be done through CPC Mortgage Company.
Sadie McKeown, EVP and COO at CPC, will oversee operations at CPC Mortgage Company.
CPC's current leadership including the CEO, COO, CFO and general counsel will be the officers of the new mortgage company. CPC's EVP and COO, Sadie McKeown, who spearheaded the development of the agency work will continue to oversee the operations of CPC Mortgage Company. Joining McKeown to help lead CPC Mortgage Company are Richard Conley, SVP and originations director; Timothy Deegan, VP and head of agency production; and Joseph Tancredi, VP and chief underwriter.
Most of the employees of CPC and CPC Mortgage Company are located in the CPC headquarters at 28 E. 28th Street in Manhattan. Both entities will be moving to 220 E. 42nd St. in the spring.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
