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FOR IMMEDIATE RELEASE

Contact:
Neil Cotiaux, FHLBank of Pittsburgh, 412-288-2851, cell: 412-335-9488
Emily Cunningham, district press secretary, Sen. Thomas R. Carper:
    302-573-6291
Kaitlin Hoffman, press secretary, Rep. Michael N. Castle: 202-225-4165

CARPER, CASTLE UNVEIL $6 MILLION PROGRAM FOR FIRST-TIME HOMEBUYERS: 'FIRST FRONT DOOR' TO HELP WITH DOWN PAYMENT, CLOSING COSTS IN DELAWARE

WILMINGTON, DE, February 27, 2006 — U.S. Sen. Thomas R. Carper and U.S. Rep. Michael N. Castle today announced a more than $6 million program called First Front Door that will help lower-income first-time homebuyers across Delaware with down payment and closing costs.

Appearing at the West End Neighborhood House in Wilmington with John R. Price, president and chief executive officer of the Federal Home Loan Bank of Pittsburgh (FHLBank), the institution providing the grant money, Carper and Castle encouraged first-time homebuyers to claim funds under the first-come, first-served program as soon as possible. The program is being offered in Delaware, Pennsylvania and West Virginia. In Delaware, First Front Door funding is being distributed through three banks — Artisans' Bank, WSFS Bank and Wilmington Trust Company — members of the FHLBank cooperative system that provides private funding to nearly 340 financial institution members for affordable housing and community and economic development.

"First Front Door provides a compelling reason for those who are renting to seriously consider homeownership," said Carper. "At least 1,000 homebuyers are expected to benefit from this program in 2006, and we want as many of them as possible to buy homes in The First State."

"First-time homebuyers represent the cornerstone of a community," declared Castle. "Building equity in a first home empowers individuals and families to build wealth for future life events — including moving up in the housing market — while contributing to a community's property values, stability and social life."

Approximately 1,000 Delaware homebuyers benefited from First Front Door's legacy program, the Home Buyer Equity Fund, from 1997 through the end of last year.

Up to $5,000 now available per homeowner

Through Artisans' Bank, WSFS and Wilmington Trust, the FHLBank will contribute $3 for every $1 contributed by the homebuyer, for a maximum of $5,000 per recipient, based on need. The three member banks will also make measurable concessions to the affordability of the house such as waived or reduced fees or points or below-market rates. Approval of participant paperwork is completed by the FHLBank within seven business days.

The homebuyer must successfully complete homeownership counseling that addresses topics like creditworthiness, household budgeting and home maintenance. Buyers must also receive counseling on predatory lending. Further, the buyer must live in the new home for at least five years in order to keep the full amount of the grant.

Who qualifies?

First Front Door provides down payment and closing cost assistance for first-time homebuyers with incomes at or below 80 percent of their area's median income. Under First Front Door, an individual is considered a first-time homebuyer if he or she has not owned a home within the past three years, or owned a home only while married but not as a single person within the past three years. Homes that qualify for purchase with FFD assistance include single-family homes, townhomes, duplexes, condominiums and modular units.

Legacy program reaches 1,000 mark

First Front Door's legacy program, the FHLBank's Home Buyer Equity Fund, provided more than $4 million in funding to approximately 1,000 first-time homebuyers in Delaware prior to the adoption of the more streamlined FFD program this year. Several recent grant recipients were honored at today's event at West End Neighborhood House in Downtown Wilmington.

"First Front Door represents a step up in our commitment to first-time homebuyers," remarked John R. Price, the Bank's president and chief executive officer. "FFD offers larger grants per individual as well as faster turnaround on both grant approvals and funding disbursement."

Consumer contacts

Prospective homebuyers should contact any of these participating banks:

Artisans' Bank: David Waltz, mortgage officer, 302-658-6881
WSFS Bank: Karen Allen, residential mortgage officer, 302-283-4688
Wilmington Trust Company: Roseanne Bradley, underwriting manager,
    302-651-8557
Visit: www.firstfrontdoor.com

The FHLBank of Pittsburgh is a $73 billion institution with approximately 340 financial institution members across Delaware, Pennsylvania and West Virginia. The FHLBank System uses private capital distributed through member financial institutions to assure reliable, low-cost credit and grants in support of housing and community development. Working with nonprofit housing advocates, homebuilders, REALTORS© and others, the FHLBanks serve as a catalyst to build thriving neighborhoods.

Founded in the 1880s, West End Neighborhood House is one of Wilmington's most respected nonprofits. It is nationally recognized as both a safe haven for the needy and as a one-stop facility for the coordinated delivery of social services. West End Neighborhood House serves thousands of individuals in the areas of transitional housing, first-time homebuying, employment and training, tutoring, crisis alleviation, youth and adult socialization and other key community-building endeavors. Paul F. Calistro Jr., its executive director, serves on the Affordable Housing Advisory Council of the FHLBank.