FHLBank San Francisco Now Accepting Applications From Member Financial Institutions for Matching Grants to Aid Distressed Homeowners
2008-10-17 00:12:03 -
www.fhlbsf.com - Federal Home Loan Bank of San Francisco Cynthia Lopez, 415-616-2757 lopezc@fhlbsf.com Amy Stewart stewarta@fhlbsf.com The Federal Home Loan Bank of San Francisco is now accepting applications from member financial institutions for its Homeownership Preservation Subsidy (HPS) matching grant program, which is designed to facilitate member efforts to provide distressed homeowners with a stable, long-term solution to unaffordable monthly mortgage payments. Members can also access a discounted credit product, the Homeownership Preservation Advance (HPA), to restructure loans for eligible low- and moderate-income homeowners.
"The foreclosure crisis has hit California, Arizona, and Nevada especially hard. Our homeownership preservation grant program and credit product enable our members to offer relief to struggling homeowners in their communities," said Dean Schultz, President and Chief Executive Officer. "These efforts are very much in keeping with the Bank's mission to expand, through our members, the availability of mortgage credit in our district," he added.
Homeownership Preservation Subsidy (HPS) Program
Through its Affordable Housing Program, the Bank has launched the Homeownership Preservation Subsidy (HPS) matching grant program. With an allocation of $10 million for 2008, HPS funds can be used by member financial institutions in situations where an existing mortgage held by the member can be refinanced or restructured to remain affordable for the homeowner over the long term.
Under the program, the Bank will grant $1 in HPS funds for every $2 provided by the member, up to a maximum of $25,000 per eligible homeowner, to be applied to the cost of restructuring or refinancing adjustable rate mortgages into fixed rate, 30-year loans.
The deadline for members to reserve HPS matching grant funds is November 3, 2008.
Homeownership Preservation Advance (HPA)
The Bank's Homeownership Preservation Advance (HPA) is another tool member financial institutions can use to help homeowners in their communities avoid foreclosure. HPA provides below-market-rate credit to support our members in modifying or refinancing mortgage loans for low- to moderate-income homeowners who may be at risk of losing their home due to delinquency or default. HPA credit can also be used to enable elderly residents to preserve homeownership by obtaining a reverse mortgage. HPA advances may be used alone or in tandem with the HPS program to aid qualified homeowners.
More information about both programs, including homeowner eligibility and member participation requirements, can be found in the Community Investment section of the Bank's website at fhlbsf.com.
Resources for Consumers
Families and individuals who may be at risk of foreclosure should contact their mortgage lender or seek help from a local housing counseling agency. The U.S. Department of Housing and Urban Development also provides foreclosure prevention information and resources for homeowners on their website at www.hud.gov/foreclosure/index.cfm or you may visit the Bank's website at www.fhlbsf.com/about/resources/foreclosure.asp.
About the Federal Home Loan Bank of San Francisco
The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgage loans to people of all income levels and provide credit that supports neighborhoods and communities. The Bank also funds community investment programs that help members create affordable housing and promote community economic development. The Bank's members -- its shareholders and customers -- are commercial banks, credit unions, savings institutions, thrift and loans, and insurance companies headquartered in Arizona, California, and Nevada.
ΒΆ Bank Also Offers Low-Cost Credit Product to Help Members Mitigate
Foreclosures
