Pittsburgh, PA – April 19, 2010 – (RealEstateRama) — The Federal Home Loan Bank (FHLBank) of Pittsburgh is contributing $500,000 to the Pennsylvania Housing Finance Agency (PHFA) to assist the Agency in its effort to help at-risk homeowners refinance their first mortgages to more affordable terms to avoid foreclosure.
PNC Bank, a member of the private FHLBank financial institution cooperative, will facilitate delivery of the set-aside grant from the Affordable Housing Program (AHP) to PHFA. PNC Bank has been a regular user of FHLBank’s AHP. It has sponsored 156 affordable housing projects that have received AHP funding of nearly $39 million since the grants program was begun in 1989.
FHLBank’s $500,000 grant will allow PHFA to reach more homeowners under its HERO (Homeowners’ Equity Recovery Opportunity) program. The grant will complement PNC’s $10 million commitment to HERO, the largest investment by a non-governmental organization.
The HERO program aims to help borrowers not eligible for a traditional mortgage refinance product, due to credit issues or a homeowner owing more on their home than its current appraised value. FHLBank’s contribution to the program will be used to help homeowners defray closing costs and also for principal reduction.
HERO is administered by PHFA, not FHLBank. Homeowners interested in learning more about the program should contact their lender, visit the “Homeowners” section at www.phfa.org, or call (800) 822-1174.
“PHFA takes great pride in helping the Commonwealth’s citizens not only become homeowners, but also keep their homes,” said Brian A. Hudson Sr., the Agency’s Executive Director and Chief Executive Officer and a member of the FHLBank Pittsburgh Board of Directors. “Our HERO program helps improve the financial situation of Pennsylvanians who are not able to afford their current mortgage payments. We thank FHLBank for its generous contribution, as it will allow us to reach additional at-risk homeowners during trying times.”
Created by Congress, FHLBank Pittsburgh provides a steady stream of low-cost liquidity to local lenders in support of housing finance and community development. It is one of twelve such Banks, each privately funded and capitalized and using no taxpayer dollars. At December 31, 2009, FHLBank Pittsburgh had 316 local lender members in its cooperative and approximately $65 billion in assets.