Pinnacle Funds Home Loan Pool with Nonprofit The Works, Inc.

Loan program will help first-time homeowners buy low-cost homes in Memphis

Pinnacle Financial Partners and Memphis nonprofit The Works, Inc. have formed a new partnership to enable low- and moderate-income individuals and families to enter into homeownership for the first time. Pinnacle is funding a loan pool of $500,000 intended to help with the purchase of low-cost homes that may otherwise go unoccupied.

“We see a tremendous need for a new home loan solution in our community,” said Roshun Austin, executive director of The Works, Inc. “Community development advocates have championed this approach for decades, and our partnership with Pinnacle is very encouraging for those of us who are fighting decline and disinvestment in our communities. We are grateful to Pinnacle for continuing to invest in Memphis and its people.”

The Works, Inc. is a long-standing Memphis nonprofit with deep roots in the city. Its mission is to serve housing and community development needs to preserve and revitalize communities. The Works, Inc. will originate the loans in this new program while Pinnacle services them. The Works, Inc. will also work with the applicants to provide credit counseling and serve as an on-going resource for mortgage clients.

 “A program like this just makes sense for us,” said Kirk Bailey, Pinnacle’s Memphis chairman. “Helping low-income families secure homes is Pinnacle’s top community priority in all of our markets. Because of regulations, fixed fees and other factors, financial services firms like Pinnacle have difficulty awarding modest sized home loans. But with a partner like The Works, Inc., we can make sure everyone has access to the services that enable home ownership. We are proud to partner with Roshun and her team to preserve Memphis neighborhoods and keep the city strong.”

The loan pool will fund home loans below $50,000, which is typically the minimum amount for most mortgage lenders. These loans will encourage re-use and redevelopment of existing homes in Memphis, which helps to combat blight and preserve neighborhoods.

Because of the low cost of these homes, many potential buyers find it difficult to secure loans despite having acceptable credit and the ability to pay. With loans from Pinnacle and The Works, Inc., families who might not have ever considered homeownership can secure stable and affordable housing.

The initial $500,000 investment is intended to serve as a pilot, with the potential for growth in the future depending on its success and market demand.

The Works, Inc. has specific experience in mortgage loan origination, credit counseling and loan servicing. The organization became a non-profit mortgage brokerage in early 2006 through the Safe Loans program. In February 2007, it was licensed as the first nonprofit mortgage brokerage in both Tennessee and Mississippi. In one year of operation, the Safe Loans program generated more than $1.2 million in total loans and received FHA certification. Due to the financial crisis this program was discontinued, but The Works, Inc. gained valuable experience in the implementation and administration of an effective mortgage loan program.

Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. The American Banker recognized Pinnacle as the sixth best bank to work for in the country in 2016.

Pinnacle has served Memphis since 2015 when it acquired Magna Bank. Since then Pinnacle has become the official bank of the Memphis Grizzlies and FedEx Forum and was named a “Top 10 Company to Watch in 2017” by the Greater Memphis Chamber.

The firm began operations in a single downtown Nashville location in October 2000 and has since grown to approximately $11.0 billion in assets at Sept. 30, 2016. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in the state’s four largest markets, Nashville, Memphis, Knoxville and Chattanooga, as well as several surrounding counties.

Additional information concerning Pinnacle, which is included in the NASDAQ Financial-100 Index, can be accessed at www.pnfp.com.

 

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