CDFIs Craft3, Self-Help Complete Second On-Bill Repayment (OBR) Loan Sale Unique Secondary Market Sale Provides Craft3 More Liquidity for Energy-Efficiency Loans Dec 2, 2015 PORTLAND, OR – Craft3 and Self-Help today announced that Self-Help Credit Union has purchased an additional $6.4 million On-Bill Repayment (OBR) single-family, energy-efficiency improvement loans. The new deal reflects the strong performance of a $15.7 million OBR portfolio transaction between the two community development financial institutions (CDFIs) in 2013. “This second sale is more strong evidence that OBR loans perform extremely well while providing homeowners affordable, inclusive, energy-efficiency financing,” said Craft3 President John Berdes. “Our hope is to prove OBR loans as a model for expanding access to energy-efficiency and for these secondary market sales to increase liquidity for these loans.” Self-Help has a well-established secondary market home mortgage program and applied its experience to OBR loans. In 2013 the organizations completed the first ever secondary market transaction in the relatively untested OBR market. The purchase proceeds provided Craft3 additional capital to help meet increasing OBR loan demand. The 2013 OBR portfolio’s performance, including a historic total loan loss of less than one percent and high repayment rates, enabled Self-Help to purchase more OBR loans, providing more capital to Craft3 to put even more money to work making loans. It also allowed Self-Help to expand its loan purchase criteria to include all credit scores. “After all the work on the first purchase balancing Craft3’s OBR innovations while creating a viable secondary market transaction for such products, this second deal is all the more gratifying,” said Self-Help’s Director of Commercial Lending Brian Schneiderman. “The affordability of energy-efficiency improvements like high-efficiency furnaces has been a real barrier for many families. Helping prove OBR programs can expand energy efficiency to families of modest means is a huge leap forward.” Since 2009, Craft3 has partnered with Enhabit (formerly Clean Energy Works) to provide consumer energy-efficiency loans to Oregonians. Craft3’s innovative OBR allows homeowners to make loan payments through their monthly utility bill. This expands access to credit for energy-efficiency improvements by eliminating the up-front, out-of-pocket costs that often make upgrades unaffordable. OBR also allows Craft3 to review a homeowner’s utility bill payment history as a factor in loan qualification. Using a blend of traditional and non-traditional underwriting techniques, Craft3 has approved loans to over 87 percent of homeowners who apply. Concurrently, the program helps build a network of contractors with increased green expertise and creates local jobs in this sector. To date, Craft3 and Enhabit’s partnership has helped 2,659 Oregon homeowners finance $35.7 million in energy-efficiency upgrades. These homeowners avert more than 6,800 metric tons of greenhouse gasses annually. Overall the program has catalyzed more than $40.9 million of local economic activity, reduced carbon emissions, created jobs for local contractors and reduced home energy use. With demand for the program increasing, Craft3 needed additional capital for loans, and found a partner in Self-Help. The 2013 sale of Craft3’s Home Energy-Efficiency Loan portfolio Self-Help Credit Union represented a new model for attracting capital to energy-efficiency loans supporting upgrades such as installation of high-efficiency furnaces, water heaters and insulation. A 2014 Lawrence Berkeley National Laboratory (LBNL) policy brief provided an in-depth look at the first portfolio sale. The policy brief examined how the parties addressed challenges in the uncharted territory of valuing OBR loans, selling such a unique portfolio to a federally regulated depository institution, and how the partnership might inform similar investments. The LBNL Policy Brief, as well as extensive details on the loan program and the portfolio sale, can be found at: http://www.craft3.org/Borrow/portfolio-sale. As a community development lender, Self-Help has long recognized the importance of environmental sustainability in all communities. Cumulatively, Self-Help has made $249 million in direct loans to sustainable businesses, nonprofits, and community facilities. Loans span a range of uses including energy efficient buildings ($137 million), utility-scale solar farms ($76 million), recycling businesses ($15 million) and healthy foods systems ($14.5 million). Home Energy-Efficiency Loans in Oregon and SW Washington are in collaboration with Enhabit and Energy Trust of Oregon and on-bill repayment through NW, Portland General Electric and Pacific Power. Craft3’s efforts to find a secondary market partner were supported by Bank of America, Bullitt Foundation and Laird Norton Foundation. Self-Help also has received support from Bank of America for its energy-efficiency lending. ### Jennifer Janda, Craft3 Marketing Manager, 503-791-8228, firstname.lastname@example.org David Beck, Self-Help Media Director, 919-956-4495, email@example.com About Craft3 Craft3 is a nonprofit community development financial institution with a mission to strengthen economic, ecological and family resilience in Pacific Northwest communities. They do this by providing loans to entrepreneurs, nonprofits, individuals and homeowners, including those without access to financing. Craft3 then complement these financial resources with expertise, personal connections and other advocacy for their clients. Learn more at www.Craft3.org. 2019 News Releases 12/17/19 - Self-Help Credit Union Announces Merger with Turbine Federal Credit Union 11/04/19 - Free 'Know Your Rights' Event for People with Disabilities 10/14/19 - Self-Help Federal, Fresno, Grand Reopening 10/11/19 - Self-Help Credit Union is coming to Raleigh 09/19/19 - Affordable housing loan fund launches in Durham 08/13/19 - Trump Administration’s New “Public Charge” Rule Could Harm Low-Income Immigrants 07/29/19 - Self-Help Credit Union Announces 2019 Scholarship Winners 07/15/19 - Grand Opening Celebration Self-Help Credit Union, Charlotte 04/01/19 - Self-Help Offers Scholarships for Students Who Give Back To Our Community 03/27/19 - Imagine: the future of homegrown entrepreneurship 03/25/19 - March 30: Grand Opening, Angier Business and Children’s Center 02/11/19 - Self-Help Apopka Grand Opening Continues Legacy of Community Trust 02/11/19 - Free Disability Rights, Assistive Technology Event in Asheville, Feb 27 2/11/19 - Free Disability Rights, Assistive Technology Event in Morganton, Feb 26 01/31/19 - Black History, Black Entrepreneurship: Couple Launches Independent Pharmacy in Historic East Durham 01/24/19 - National Baptist Convention Embarks on National Campaign 01/14/19 - Self-Help Offers Hardship Loans to Furloughed Federal Employees 2018 News Releases 12/13/18 - New Video Explores Legacy of Bakersfield Credit Union First Founded by Cesar Chavez 09/25/18 - CommunityWorks Federal Credit Union Joins Self-Help To Benefit Members, CommunityTo Benefit Members, Community 08/24/18 - The MacArthur Foundation invests in Seaway, a division of Self-Help Federal Credit Union 08/07/18 - Newell Named President of Seaway, a Division of Self-Help Federal Credit Union 05/23/18 - Self-Help Credit Union, Mangum Street Grand Rededication (Durham) 2017 News Releases 09/19/17 - Self-Help Announces Third Annual "Bringing It Home" Conference in Asheville, NC 06/29/17 - In Senate Committee Hearing, CRL Lays Out Consumer Plan For GSE, Housing Finance Reform 06/13/17 - Florida’s Jax Metro Credit Union Merges with Self-Help Credit Union effective June 1 03/13/17 - Self-Help to Acquire Selected Branches of Former Seaway Bank in Chicago 2016 News Releases 09/13/16 - Family Federal Credit Union in Wilmington, CA Merges with Self-Help Federal Credit Union 07/13/16 - Self-Help Credit Union Announces 2016 Education Scholarships Winners 06/27/16 - Self-Help Announces DTC-eligible Term Certificates for SRI Investors 04/19/16 - Revolution Mill Media Event on Major New Tenant Thursday April 21, 8.30 am 04/14/16 - Self-Help Credit Union Announces 2016 Community Education Scholarships 04/13/16 - Self-Help Credit Union and Greater Piedmont Credit Union Announce Merger 03/10/16 - Lease Signing Ceremony Tuesday, 3pm March 14 between Renaissance Community Co-op and Self-Help 02/23/16 - Study: Self-Help “Fresh Start” Product Improves Credit Scores 02/03/16 - Florida’s Community Trust Federal Credit Union Merges with Self-Help Federal Credit Union 2015 News Releases 12/02/15 - CDFIs Craft3, Self-Help Complete Second On-Bill Repayment (OBR) Loan Sale 11/19/15 - Self-Help Credit Union Report: Racial Disparities in Marijuana Enforcement Undercut Durham Progress 11/17/15 - Grand Opening Thursday for Fresno’s Self-Help Federal Credit Union Branch 10/14/15 - Revolution Mill Hosting Media Tour Tuesday, October 20 at 10 am 10/01/15 - Self-Help’s Choice Community Credit Union Adopting Self-Help Credit Union Name 09/15/15 - National Cooperative Bank, Self-Help Federal Credit Union Team Up to Finance Los Angeles’ With Love Market & Café 09/14/15 - Self-Help Credit Union Hosts Brevard Branch Open House 08/24/15 - Self-Help Closes $4.6 Million Loan to Minneapolis’ Eastside Food Co-Op 08/17/15 - Statement on Julian Bond’s Passing by Self-Help CEO Martin Eakes 08/06/15 - Self-Help Credit Union “Adopt a Backpack” Drive Up and Running 07/28/15 - Self-Help Ventures Fund Ramps Up Construction On 45-Acre Revolution Mill SIte 07/14/15 - Self-Help Ventures Fund Ramps Up Construction on 45-Acre Revolution Mill Site 07/09/15 - Self-Help Credit Union Announces Education Scholarships Winners 06/11/15 - Renaissance Shops Groundbreaking Tuesday, June 16 at 10:30 am 04/09/15 - Durham Co-op Market Ribbon Cutting at 2pm Saturday 03/17/15 - Grocers on Wheels, Self-Help Credit Union Borrower, in Durham Today! 02/13/15 - Self-Help Credit Union Hosting New Economy Conference on March 18th About Self-Help Self-Help is a leading national community development financial institution headquartered in Durham, NC. Since 1980, Self-Help has provided over $8.5 billion in financing to 150,000 families, individuals and businesses. It helps drive economic development and strengthen communities by providing responsible financial services; lending to individuals, small businesses and nonprofits; developing real estate; and promoting fair financial practices across the nation. Through its credit union network, Self-Help serves over 150,000 people in California, Florida, Illinois, North Carolina, South Carolina, Virginia, and Wisconsin. The nonprofit Center for Community Self-Help is the umbrella organization for the Self-Help family of nonprofit organizations, which includes Self-Help Credit Union, Self-Help Federal Credit Union, Self-Help Ventures Fund and the Center for Responsible Lending.