Overview
Capital Plus Financial LLC (CPF) is a prominent real estate financial institution dedicated to residential mortgage lending, with a pronounced focus on the Hispanic single-family residential market. Serving primarily in Texas, CPF has been recognized as a Certified Community Development Financial Institution (CDFI) since 2017. The organization's mission centers around bolstering economically disadvantaged communities by facilitating homeownership, specifically targeting low to moderate-income areas.
Business Model and Services
CPF's business model revolves around lending to documented Hispanic borrowers, primarily those without a credit score, in order to promote homeownership in underserved markets. By operating as a mission-driven community development corporation, CPF leverages its CDFI certification to secure public and private funding. This approach aims to bridge the capital disparity in underserved communities, thereby encouraging social and economic growth.
Impact and Recognition
Capital Plus Financial is acclaimed as a certified B-Corporation, balancing profit with social impact. This status empowers CPF to influence industry-specific legislation and collaborate with other social entrepreneurs to enact collective change. CPF's significant contributions to economic vitality are recognized by its inclusion under Crossroads Impact Corp (OTCQB: CRSS).
Leadership
The organization's efforts are spearheaded by Robert Sandoval, CEO of Capital Plus Financial. Sandoval's leadership is pivotal in driving CPF's mission to support families through accessible housing solutions, ensuring CPF remains a leader in community-centered economic development.
Strategic Partnerships and Initiatives
- CPF's acquisition by Crossroads Impact Corp in 2017 aligns with the parent company's community development goals.
- Through a strategic partnership with Enhanced Capital Group, CPF augments its service offerings to stimulate local economies with innovative financial solutions tailored to meet diverse community needs.
Recent Projects and Achievements
- CPF's successful closing of a $125 million Treasury bond in a record-setting year for CDFI bonds in 2022 underscores its financial robustness and commitment to expanding its social impact.
- The launch of a $2 million social impact venture competition highlights CPF's dedication to addressing racial inequities and reinforcing small businesses in underserved communities.
Challenges and Controversies
The organization has faced legal scrutiny concerning PPP loans, specifically allegations related to excessive government fees associated with loan approvals. These challenges reflect the intricate regulatory landscape CPF navigates within its operational framework.
Future Directions
With over 20 years invested in community development, CPF's commitment to increasing homeownership among underserved populations positions it as a pivotal force in fostering sustainable community growth nationwide. CPF's strategic focus remains on extending its impactful work through strategic partnerships and community engagement initiatives.
Competitor Profiling
Key Competitors
Capital Plus Financial LLC contends with several notable competitors in the industry:
1. Aspire Home Mortgage Inc. – Based in Marlton, NJ, this firm offers personalized mortgage solutions across several states, known for its quick service delivery bolstered by technological integration and over 22 years of industry experience.
2. Diversified Mortgage Brokers – Operating from Lynchburg, VA, this company provides comprehensive loan programs with a commitment to quality customer service and advanced mortgage consultative tools.
3. Houzzle Financial, Inc. – Located in Alpharetta, GA, Houzzle Financial specializes in accessible mortgage loan options, focusing on affordable and strategic financial planning for first-time buyers.
4. Bluevine – As a business banking platform, Bluevine offers business checking, credit lines, and loans catering to SMEs, providing competitive services albeit not directly in the mortgage sector.
5. Chase – A subsidiary of JPMorgan Chase Bank, N.A., Chase offers diversified financial services including mortgages, leveraging extensive resources to remain a formidable industry player.
Actionable Insights
CPF's specialization in the Hispanic market and its community impact efforts create a unique competitive edge in the mortgage lending sector. Potential development avenues include forging alliances with local banks or credit unions, and co-marketing with bilingual real estate agents and community advocates to strengthen market trust and presence. CPF's continued emphasis on social ventures and investments substantiates its commitment to socially responsible finance, distinguishing itself amid competitive pressures within the financial services domain.
