Assistant Director of Corporate Communications
Funds spur home purchases in a range of locations; help buyers establish solid equity base.
ATLANTA, Nov. 9, 2009 - Federal Home Loan Bank of Atlanta (FHLBank Atlanta) announced today that it has disbursed in excess of $9.4 million to more than 1,000 recipients through its 2009 First-time Homebuyer Program (FHP), providing critical and timely economic support to the housing market. For each of the past 12 years, FHLBank Atlanta has offered the matching funds through its member financial institutions for 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.
Over 60 FHLBank Atlanta financial institutions accessed and closed down payment funds ranging from $1,882 to $10,000 to more than 1,000 homebuyers. Thanks to the funding, member financial institutions are able to expand their customer base, originate new mortgages, and attract new homebuyers into the market. The private funds – derived from profits earned by the Federal Home Loan Bank of Atlanta - serve as an attractive tool to bring more homebuyers into the market and also serve as a valuable form of equity that they can benefit from in the future.
Since the program’s inception in 1997, FHLBank Atlanta has allocated more than $50 million to first-time homebuyers, which has allowed more than 9,000 families and individuals to purchase a home. FHLBank Atlanta estimates that for every $1 of FHP funding awarded, $17 is generated in new mortgage business for its member banks.
“FHP is stimulating home sales and mortgage lending in communities at a time when the housing market and the overall economy need this type of economic support,” said Arthur Fleming, first vice president and director of Community Investment Services, FHLBank Atlanta. “Relationships created between first-time homebuyers and FHLBank Atlanta lenders are significant and can provide a strong base for recovery of the residential housing sector.”
The 2009 FHP offering cycle opened April 1, 2009, and continued until the funds were fully disbursed to member institutions. Funds were provided on a first-come, first-served basis. Individual participants receiving FHP funds were required to complete a credit counseling program that includes educational training on the home-buying process including courses on household budgeting, mortgage financing, lending laws, and debt management. The 2010 FHP offering will be announced in April 2010.
About FHLBank Atlanta
FHLBank Atlanta offers competitively-priced financing, community development grants, and other banking services to help more than 1,200 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, and insurance companies headquartered 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 $3.6 billion to the Affordable Housing Program.
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Some of the statements made in this announcement are “forward-looking statements,” which include statements with respect to the Bank’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, many of which may be beyond the Bank’s control, and which may cause the Bank’s actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by the forward-looking statements.
The forward-looking statements may not be realized due to a variety of factors, including, without limitation: legislative and regulatory actions, changes or approvals; future economic and market conditions (including the housing market and the market for mortgage-backed securities); changes in demand for advances or consolidated obligations of the Bank and/or the FHLBank System; changes in interest rates and prepayment speeds, default rates, delinquencies and losses on mortgage-backed securities; political, national and world events; and adverse developments or events affecting or involving other Federal Home Loan Banks or the FHLBank System in general. Additional factors that might cause the Bank’s results to differ from these forward-looking statements are provided in detail in our filings with the Securities and Exchange Commission, which are available atwww.sec.gov.
New factors may emerge from time to time, and it is not possible for us to predict the nature, or assess the potential impact, of each new factor on our business and financial condition. Given these uncertainties, we caution you not to place undue reliance on forward-looking statements. These statements speak only as of the date that they are made, and the Bank has no obligation and does not undertake to publicly update, revise or correct any of the forward-looking statements after the date of this announcement, or after the respective dates on which such statements otherwise are made, whether as a result of new information, future events or otherwise, except as may be required by law.
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Assistant Director of Corporate Communications