mantle bottom translucency

Latest News

Thursday

Jul

15

Federal Home Loan Bank of Atlanta Provides Record Levels of Support for First-time Homebuyer Market

ATLANTA, July 15, 2010 - Federal Home Loan Bank of Atlanta (FHLBank Atlanta) announced today that its First-time Homebuyer Program (FHP) experienced record output in June as it continued to spur home sales and provide support to the housing market.

Since April 19, 2010, FHLBank Atlanta has disbursed more than $4 million in matching funds through 39 member financial institutions for the down payment and closing costs of eligible first-time homebuyers in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia.

In the month of June alone, FHLBank Atlanta funded 365 homebuyers over the course of 22 business days, averaging 17 fundings per business day and totaling $2.6 million, a record distribution for a single month. Much of the increased demand was attributed to the June 30, 2010 closing deadline for the federal first-time homebuyer tax credit as homebuyers sought to combine the benefits of the two programs.

By participating in FHP, FHLBank Atlanta members can access up to $1 million annually and distribute matching FHP awards of up to $7,500 per household to eligible homebuyers. The availability of FHP funds helps member institutions expand their customer base, originate new mortgages, and attract potential homebuyers.

One FHLBank Atlanta member, Carrollton Bank, in Columbia, Md., requested more than $620,000 in FHP funds and has already disbursed $500,000 to over 60 first-time homebuyers. “FHLBank Atlanta’s First-time Homebuyer Program has been a very effective marketing tool for us,” said Brian Bogdan, vice-president. “It has proven to be invaluable by increasing demand and loan volume.”

Since the FHP’s inception in 1997, FHLBank Atlanta has contributed nearly $60 million to first-time homebuyers, directly resulting in the purchase of a home by almost 10,000 families and individuals. FHLBank Atlanta estimates that for every $1 of FHP funding awarded, up to $14 is generated in new mortgage business for its members.

“The First-time Homebuyer Program continues to serve the critical purposes for which it was intended,” said Arthur Fleming, senior vice president and director of Community Investment Services, FHLBank Atlanta. “FHP funds serve as a catalyst for home purchases and help member institutions stabilize home sales prices by introducing new buyers into the housing market.”

More than $5 million remains in FHLBank Atlanta’s 2010 FHP offering cycle, which continues until all available funds are disbursed or Dec. 31, 2010, whichever occurs first. Funds are provided to member institutions on a first-come, first-served basis, and applicants must request the funds directly from a participating member institution of FHLBank Atlanta. Funds cannot be obtained directly from FHLBank Atlanta. Participating member institutions and FHP recipients must qualify in accordance with the terms of the AHP Implementation Plan. For details on participation, please contact the Bank’s Community Investment Services area at 800-536-9650, option 3 then option 3.

Potential first-time homebuyers seeking additional information should directly contact their local participating financial institution. Click here for a list of FHLBank Atlanta members participating in FHP.

About FHLBank Atlanta
FHLBank Atlanta offers competitively-priced financing, community development grants, and other banking services to help member financial institutions make affordable home mortgages and provide economic development credit to neighborhoods and communities. The Bank’s members—its shareholders and customers—are commercial banks, credit unions, savings institutions, community development financial institutions and insurance companies located in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. FHLBank Atlanta is one of 12 district banks in the Federal Home Loan Bank System, which since 1990 has contributed more than $4 billion to the Affordable Housing Program.

For more information, visit www.fhlbatl.com.

* * *

 

Back to Latest News

Media Contacts

Sharon Cook 

Chief Marketing Officer

404.888.8173

scook@fhlbatl.com

 
Peter Garuccio

Assistant Director of Corporate Communications

404.888.8143

pgaruccio@fhlbatl.com