First Home Clubsm Grant Increases to $7,500,
Grant will Provide $4 for Every $1 Saved

Contact: Eric Amig - 212 441-6807

February 11, 2008

 

New York, New York -- The Federal Home Loan Bank of New York announced several enhancements to its First Home Clubsm (FHC) -- a program creating new homeowners. Under the changes, the Bank will increase the maximum for a FHC award from $5,000 to $7,500 and increase the matching ratio from 3:1 to 4:1.

 

"With these changes, the First Home Club will now provide $4 for every $1 saved up to $7,500," said Alfred A. DelliBovi, President and CEO of the Federal Home Loan Bank of New York. "What this means is that the Home Loan Bank and our community member lenders are increasing our commitment to first-time homebuyers in the area."

 

The FHC program was launched by the Home Loan Bank in 1995 to provide an incentive for saving for the purchase of a new home. The FHC is designed to motivate families to save to earn matching dollars. The FHC is an affordable initiative offered only by participating member lenders of the Home Loan Bank. In addition to an FHC savings account with a participating member bank, a participating family must complete an approved homeownership counseling program. Approved member lenders, together with local non-profit organizations, will provide homeownership counseling and personal credit and budgeting assistance. All households must participate in a systematic savings plan with the member institution for a minimum of ten months. Member community lenders enroll families into the program during designated enrollment periods. Each year, the Home Loan Bank gives approximately 10% of its private earnings to support affordable housing initiatives. The FHC is funded with these private earnings.

 

Families numbering 2,845 have completed the program and are living in new homes; there are an additional 3,355 families enrolled in the FHC with 58 member lenders in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. All households currently enrolled in the FHC are eligible to receive the improved benefits.

 

Mr. DelliBovi added, "The Federal Home Loan Bank of New York and our members are extremely proud of this program; it provides the cash families need to get a home and a mortgage that is suitable for them. These solid new homeowners are important to the stability and growth of the community."

 

See below for a list of the 58 member lenders participating in the FHC.

 

Because of the down-payment requirement, the required homeowner educational program, and clear mortgage terms (without exotic reset features), families who have bought homes through the FHC have enjoyed a particularly successful record of homeownership. The foreclosure rate of all FHC grants is less than half a percent, which is dramatically below the average national rate of 4%.

 

The FHLBNY is a $100 billion, AAA-rated, Congressionally-chartered wholesale bank. It is part of the FHLBank System, a national wholesale banking network of 12 regional, stockholder-owned banks. The FHLBNY serves 300 community lenders in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the FHLBNY is to advance housing opportunity and local community development by maximizing the capacity of community-based member lenders to serve their markets.

 

 

FIRST HOME CLUBsm Approved Member Participants:

 

New Jersey Banks

  1. Commerce Bank, North
  2. Investors Savings Bank
  3. Kearny Federal Savings Bank
  4. Lakeland Bank
  5. Magyar Bank
  6. Metuchen Savings Bank
  7. OceanFirst Bank
  8. Oritani Savings Bank
  9. Roma Bank
  10. RSI Bank
  11. Skylands Community Bank
  12. Sun National Bank
  13. Susquehanna Bank DV
  14. The Bank
  15. The Provident Bank
  16. Valley National Bank

 

New York Banks

  1. Abacus Federal Savings Bank
  2. Alternatives Federal Credit Union
  3. Astoria Federal Savings and Loan Assn.
  4. Bank of Akron
  5. Carver Federal Savings Bank
  6. Chemung Canal Trust Company
  7. Community Bank, N.A.
  8. Fairport Savings Bank
  9. First Niagara Bank
  10. Geddes Federal Savings and Loan Assn.
  11. Glens Falls NB & Trust Company
  12. HSBC Bank USA, National Association
  13. Hudson Valley Federal Credit Union
  14. Manufacturers and Traders Trust Company
  15. Medina Savings and Loan Association
  16. Mid-Hudson Valley Federal Credit Union
  17. NBT Bank, N.A.
  18. New York Community Bank
  19. Northern Federal Credit Union
  20. Partners Trust Bank
  21. Pioneer Savings Bank
  22. Provident Bank
  23. Rhinebeck Savings Bank
  24. Rondout Savings Bank
  25. Seneca Federal Savings and Loan Assn.
  26. State Employees Federal Credit Union
  27. Steuben Trust Company
  28. The Bank of Castile
  29. The Bank of Greene County
  30. The Dime Savings Bank of Williamsburgh
  31. The Lyons National Bank
  32. The Mahopac National Bank
  33. The National Bank of Stamford
  34. The Rome Savings Bank
  35. The Seneca Falls Savings Bank
  36. Ulster Savings Bank

 

Puerto Rico Banks

  1. Banco Popular de Puerto Rico
  2. Banco Santander Puerto Rico
  3. Doral Bank
  4. Eurobank
  5. FirstBank Puerto Rico
  6. Oriental Bank and Trust

 

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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This report contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as "projected," "expects," "may," or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

 

 

 
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