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FOR RELEASE: 10 a.m., April 19, 2006

Contact:
Neil Cotiaux, FHLBank of Pittsburgh: 412-288-2851; cell: 412-335-9488
Ron Goldwyn, Congressman Fattah, 215-387-6404; 215-913-0972

CONGRESSMAN FATTAH, 16 AREA BANKS UNVEIL $6 MILLION GRANT PROGRAM: 'FIRST FRONT DOOR' TO HELP WITH FIRST-TIME DOWN PAYMENT, CLOSING COSTS

PHILADELPHIA, PA, April 19, 2006 — 'First Front Door' has arrived in Philadelphia. U.S. Rep. Chaka Fattah (PA-2), 16 area banks and the Federal Home Loan Bank of Pittsburgh (FHLBank) today announced a more than $6 million program that will help lower-income first-time homebuyers across the region with down payment and closing costs.

Appearing at a kickoff event at Germantown Settlement, Congressman Fattah encouraged first-time homebuyers to claim funds under the first-come, first-served program as soon as possible. The program is being offered in Pennsylvania, Delaware and West Virginia.

In Greater Philadelphia, First Front Door (FFD) funding is being distributed by the FHLBank through these 16 banks: Beneficial Mutual Savings Bank, Citizens Bank of Pennsylvania, Commerce Bank N.A., Fidelity Savings & Loan of Bucks County, Fulton Bank, Leesport Bank, National Penn Bank, Phoenixville Federal Bank & Trust, PNC Bank, Prudential Savings Bank, Sovereign Bank, TruMark Financial Credit Union, Washington Savings Association, William Penn Bank, Wilmington Trust Company and WSFS Bank. These institutions are regional members of the FHLBank cooperative system that provides private funding to nearly 340 financial institutions 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 Congressman Fattah. "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 our region."

"First-time homebuyers represent the cornerstone of a community," Fattah continued. "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."

Up to $5,000 now available per homeowner

Through the 16 participating banks, the FHLBank will contribute $3 for every $1 contributed by the homebuyer, for a maximum of $5,000 per recipient, based on need. 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 served Philadelphia well

First Front Door's legacy program, the FHLBank's Home Buyer Equity Fund (HBEF), provided more than $14 million to approximately 4,000 first-time homebuyers prior to the adoption of the more streamlined FFD program this year. In Greater Philadelphia, HBEF extended $5.67 million to help fund 1,484 homes over the last eight years.

"First Front Door represents a step up in our commitment to first-time homebuyers," remarked Eric F. Dickerson, deputy director of Community Investment at the FHLBank and a speaker at today's event. "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 the 16 participating banks with a presence in their neighborhood. They can also visit www.firstfrontdoor.com for additional program details.