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FOR RELEASE: 9:30 a.m., April 28, 2006

Contact:
Neil Cotiaux, FHLBank of Pittsburgh: 412-288-2851; cell: 412-335-9488
Gretchen Wintermantel, U.S. Rep. Paul Kanjorski, 202-225-6511

CONGRESSMAN KANJORSKI, 15 AREA BANKS UNVEIL $6 MILLION GRANT PROGRAM: 'FIRST FRONT DOOR' TO HELP WITH FIRST-TIME DOWN PAYMENT, CLOSING COSTS

WILKES-BARRE, PA, April 28, 2006 — 'First Front Door' has arrived in northeastern Pennsylvania. U.S. Rep. Paul Kanjorski (PA-11), 15 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 news conference at the Woodlands Inn & Resort, Congressman Kanjorski 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 northeastern Pennsylvania, First Front Door funding is being distributed by the FHLBank through these 15 banks: Citizens Bank, Citizens Savings Bank, Columbia County Farmers National Bank, Community Bank & Trust Company, Fidelity Deposit & Discount Bank, First National Bank of Berwick, First National Community Bank, Honesdale National Bank, Keystone Nazareth Bank & Trust Company, Northwest Savings Bank, PaSA, Penn Security Bank & Trust Company, Peoples National Bank, PNC Bank, Sovereign Bank and Wayne 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 not only offers financial assistance, but also provides homeownership counseling on topics such as household budgeting and home maintenance," said Congressman Kanjorski. "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," said FHLBank President and Chief Executive Officer John R. Price, who appeared at today's event. "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 15 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 (for example, the median income within the city of Wilkes-Barre is $26,711, according to the U.S. Census Bureau). 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.

Consumer contacts

Prospective homebuyers should contact any of the 15 participating banks with a presence in their neighborhood. They can also visit www.firstfrontdoor.com for additional program details. Or, call 1-800-288-3400, ext. 2826.