Jun 19, 2019
As banks across the country mark American Housing Month
in June, the ABA Banking Journal Podcast sat down with Michael
Petrie, who leads the $4 billion Merchants Bancorp in Carmel,
Ind.—one of the nation’s largest affordable housing lenders. With
affordable homes accounting for 40% of the company’s originations
through its bank and nonbank subsidiaries, Petrie discusses:
- How staff at Merchants' nonprofit affiliate, which owns 2,500
affordable housing units, help developers apply for tax credits,
bonds and grants. “We’ve taken developers who have never done
affordable housing through a 4% tax credit, and they’re now quite
successful at it,” says Petrie.
- Why Merchants employs both banks and nonbanks in its housing
finance strategy—including its start as a nonbank lender that
acquired a bank.
- The state of the real estate market and the challenges facing
newly formed households. “Today it’s pretty tough, especially for
the first-time home buyer,” he says. “There’s just not enough
- How Merchants retains a skilled workforce to support its
specialized lending programs, including multifamily, single-family
and warehouse lending, and develop partnerships with Fannie Mae,
Freddie Mac and the Federal Home Loan Banks.