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News Release: May 12, 2008
Contact: Connie Waks
206.340.2305
Seattle – The Federal Home Loan Bank of Seattle (Seattle Bank) today announced the availability of $7.9 million in affordable housing subsidy and up to $100 million in reduced-rate loans for mortgage refinance. The funds will be made available through the Seattle Bank’s financial institution members.
The Seattle Bank will offer $5.1 million in subsidy for affordable rental and owner-occupied housing through the 2008 Affordable Housing Program (AHP) and $2.8 million in downpayment assistance through the 2008 Home$tart Program. In addition, the Seattle Bank’s Board of Directors approved a new program, CIP Plus, which will provide up to $100 million in reduced-rate funding for the purpose of refinancing adjustable rate mortgages (ARMs) into fixed-rate mortgages.
“The need for affordable housing is as critical now as ever,” said Seattle Bank President and CEO Richard M. Riccobono. “AHP and Home$tart provide direct subsidy for affordable rental and owner-occupied housing, and CIP Plus complements these programs by providing our members with funding to prevent default and foreclosure situations. We are very pleased to offer these programs to the Seattle Bank membership and, in turn, to the communities they serve.”
CIP Plus provides Seattle Bank members with discounted advances to refinance ARMs into five- to 30-year, fixed-rate mortgages, to serve households at or below 115 percent of area median income. CIP Plus advances may be used to fund an individual loan or a pool of qualifying first-mortgage loans. Each Seattle Bank member is limited to $25 million of CIP Plus advances.
Funded with 10 percent of the Seattle Bank’s annual net income, AHP is designed to create affordable rental and homeownership opportunities for low- and moderate-income households. AHP funds are available through a competitive application process. The 2008 AHP application will be available on or before June 1, 2008, and applications are due August 1, 2008. Since its inception in 1990, the Seattle Bank’s AHP has provided $137.8 million in funding to serve more than 27,000 households.
The Home$tart Program provides downpayment assistance to first-time homebuyers earning up to 80 percent of their area’s median income. Home$tart Program funds are available on an ongoing basis. Since its inception in 1995, the program has provided $35.7 million to help more than 7,200 homebuyers purchase their first homes.
About the Seattle Bank
The Federal Home Loan Bank of Seattle is a financial cooperative that provides liquidity, funding, and services to enhance the success of its members and support the availability of affordable homes and economic development in the communities they serve. Our funding and financial services enable 380 member institutions to provide their customers with greater access to mortgages, commercial lending, and affordable housing. The Seattle Bank commits 10 percent of its annual profits to help fund affordable housing and homeownership.
The Seattle Bank serves eight states, American Samoa, Guam, and the Northern Mariana Islands. Our members include commercial banks, credit unions, thrifts, industrial loan corporations, and insurance companies.
The Seattle Bank is one of 12 Federal Home Loan Banks in the United States. Together, the Federal Home Loan Banks represent one of the country’s largest private sources of liquidity and funding for community financial institutions, as well as funding for affordable housing.
This press release contains forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties. Actual performance may differ materially from that expected or implied in forward-looking statements because of many factors. Such factors may include, but are not limited to, demand for advances, business and capital plan adjustments and amendments, changes in the bank's management and Board of Directors, regulatory actions or approvals, competitive pressure from other Federal Home Loan Banks and alternative funding sources, accounting adjustments or requirements, interest-rate volatility, the bank's ability to maintain adequate capital levels, changes in projected business volumes, our ability to appropriately manage our cost of funds, changes in our membership profile or the withdrawal of one or more large members, the cost-effectiveness of our funding, hedging and asset-liability management activities, shifts in demand for our products and consolidated obligations, and general economic conditions. Additional factors are discussed in the Seattle Bank's first-quarter 2008 Form 10-Q filing and its 2007 Form 10-K filing with the SEC, which are available on the Seattle Bank’s Web site at www.fhlbsea.com. The Seattle Bank does not undertake to update any forward-looking statements made in this announcement.
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