54. Can a wholesale lender that buys loan participations from other CDFIs be designated as serving an OTP-Certified CDFIs Target Market?

Yes, a wholesale lender that purchases loan participations (i.e. a portion of a loan originated by a retail lender) from other Certified CDFIs may be designated as serving an OTP-Certified CDFIs Target Market. In addition, wholesale lenders that engage in such participation lending by providing the loan capital to a third-party entity that delivers the loans to and maintains the relationship with the end-borrowers has the option of selecting a Target Market based on that of the end-borrowers that it serves through its participation loans, as well as selecting an OTP-Certified CDFIs Target Market. Regardless of which Target Market(s) a wholesale lender selects, it also must be able to demonstrate accountability to each Target Market component it selects to receive approval of that Target Market for Certification purposes. The wholesale lender also must be able to demonstrate that at least one of its Development Services is directed to members of at least one of its Target Market components in conjunction with its Financial Products.