Can banks hold HEFIs on their balance sheet?
Banks could hold HEFIs as investments, similar to how they hold equity participations in commercial real estate projects. It should be pointed out that the HEFI does not put the owner of the HEFI on the title of the property. The HEFI is recorded as a lien against the property, much the same as a mechanics lien, a tax lien or a legal judgment is recorded.
