housing finance part i freeman
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Community Investment Services
FHLBank Atlanta
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• Shareholder/customer dynamic
• Have not experienced a credit loss in 75 years
• Annual reinvestment of at least 10 percent of net income into affordable housing
Characteristics of FHLBank Atlanta as a Cooperative
Members FHLBankStock
Advances
CommunityDividend
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• FHLBank Atlanta views the 10 percent income allocation as the dividend that we pay the community
• Like every other dividend, the payment is predicated upon the positive financial performance of FHLBank Atlanta
The Community Dividend
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AHPCommunity
Dividend
Community
FinancialInstitution
FHLBank
CommunityGrows
Developer requests funds for Affordable Housing
Development
Member institution applies for funds from
FHLBank Atlanta
FHLBank Atlantaapproves funding
on competitive basis
Funds are invested in the community
How We Grow Communities
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Stimulated Growthin local communities by providing
products that revitalize neighborhoods, create jobs, and support economic development
$377 Million through FHLBank Atlanta’s
Affordable Housing Program to support more than
61,000 housing unitsSince 1990
$3.2 Billionin “subordinate, equity-like”
capital has been awarded
Our Successful Mission
FHLBanks
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AffordableHousingProgram
(AHP)
CommunityInvestment
Program(CIP)
First-timeHomebuyer
Program(FHP)
EconomicDevelopment
Program(EDP)
Community Investment Initiatives
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Affordable Housing Program (AHP)
• Funding to create rental and homeownership opportunities for moderate-, low- and very low-income households
• Beneficiaries― Residents at or below 80 percent of Area Median Income (AMI)
• Competitive Application Process
• Uses
– New construction or rehabilitation – Acquisition– Permanent financing – Down payment and closing cost assistance
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Enhancements for AHP 2009-2010
Member Financial Participation
Foreclosure Prevention
Project Readiness Improve member and sponsor customer service levels and Expedite funding of projects
Position AHP to assist in solving big problem in the district and the country – foreclosure crisis
Increase front-end analytical rigor and due diligence
Reward member financial commitment in AHP projects
Enhanced Analytical Environment
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Desired Outcome for AHP
More ReadyProjects
More ReadyProjects
Reduce Project
Modification
Reduce Project
Modification
ExpediteFundingExpediteFunding
Application requirements and process improvements leading to higher levels of customer service
DecreaseProject
Extensions
DecreaseProject
Extensions
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First-time Homebuyer Program (FHP)
• Down payment and closing cost assistance– 5:1 Match (Minimum borrower contribution of $500)– Maximum $10,000 per borrower– Registered members eligible for up to $1,000,000 per year– First-come, first-served
• Benefits homebuyers at or below 80 percent AMI
• Five year retention agreement
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Using FHP to Win First-Time Homebuyers
• FHP used by members to compete for highly sought-after new customers – Members marketed FHP as an incentive for customer to use member’s
mortgage products
• Proven results with members– During 2008, FHLBank Atlanta supported over $17MM to members’
First-Time Homebuyer lending activities, resulting in almost 2,000 member-originated first mortgages
• In 2009, nearly $10MM will support members’ customer acquisition campaigns– FHLBank Atlanta made significant changes to underwriting guidelines
to further responsible lending and customer service commitments
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…Every $1 of FHP generates $17 in new mortgage business
for our members
FHP (1997 – 2008)
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Demand For FHP Funding
Fed Sees Some Home Buying Up
“Residential real estate markets continue to bounce back from the doldrums of the recession, according to a Federal Reserve report released Wednesday.”
“The central bank's Beige Book found higher year-over-year home sales in the Atlanta, New York, Cleveland and Minneapolis districts.”
“Still, most of the activity in the residential market is happening at the lower end of the spectrum, thanks to first-time homebuyer tax credits.”
American Banker | Thursday, September 10, 2009
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Community Investment Program (CIP)and Economic Development Program (EDP)
• Discounted advances (up to 10 basis points)
• Always available, simple application, no maximum amount
• Complements government programs
• One advance can fund multiple loans
• Discounted loans approaching $5 billion
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Webinars
Sponsorships
In-market workshops
Forums
Business Development and Relationship Management
Jackson Cosey
ShaDonte Dozier
Louis Freeman
800.536.9650 www.fhlbatl.com
How We Connect
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We are happy to help.
Do You Have Any Questions?
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