CRAFund Advisors, which manages a $700 million Community Reinvestment Act Fund, is preparing to manage the first CRA-qualified bank-owned life insurance portfolio offered inside separate insurance accounts. Daniel Borten, the fund's inventor and founder of structured finance company Callinectes Consulting, thought of the idea of wrapping CRA qualified investments in separate BOLI accounts while wholesaling for MetLife in 2002. CRAFund's current portfolio contains fixed income securities rated single-A and higher that comply with CRA standards. For the new fund, the company is planning to invest in certain MBS, multi-family housing bonds and loans, Small Business Administration loans and pools, U.S. Department of Agriculture pools and loans, taxable muni bonds and ABS that finance economic development and enterprise growth.
