North Texas ranks as one of the areas in the US with the lowest number of homeowners. Home ownership has emotional benefits and children who live in private homes tend to do better academically. Two non-profits and a commercial bank have teamed up to help more North Texans become homeowners. Created by Dallas Area Habitat for Humanity Dallas Neighborhood Homes is a not-for-profit mortgage provider that guides low and middle-income buyers through the mortgage acquisition process. By working with community leaders and utilizing volunteer builders, Dallas Area Habitat for Humanity has erected 1600 homes in North Texas. In business for 96 years, Dallas based Nexbank boasts $3.5 billion in assets and offers commercial and institutional banking and mortgages.
The alliance between Nexbank, Dallas Area Habitat for Humanity, and Dallas Neighborhood Homes serves a section of South Texas. Nexbank has pledged $50 million in loans to make possible a goal of creating a minimum of 100 new homeowners. NexBank will cover mortgage closing costs to a maximum of $2,000.
Nexbank has acquired College Savings Bank. 529 College Savings Programs are a specialty of Princeton New Jersey-based College Savings Bank. Named for a section of the Federal Tax Code 529s provide parents with tax-based incentives to save for their children’s education. College Savings will retain its name and operate as a separate Nexbank division. Nexbank is a division of Nexbank Capital.
The president of Nexbank Capital John Holt described the acquisition as a win-win and part of a larger Nexbank “funding strategy”. Matt Siekielski, Nexbank Capital’s Executive Vice President and Chief Operating Officer stated that acquiring College Savings Bank would enable Nexbank to better serve parents saving for their children’s future. Siekielski added that the deal expanded Nexbank Capital’s platform and would foster the company’s growth.