The Federal Home Loan Bank of San Francisco is now accepting applications from member financial institutions for its Homeownership Preservation Subsidy (HPS) matching grant program, which is designed to facilitate member efforts to provide distressed homeowners with a stable, long-term solution to unaffordable monthly mortgage payments. Members can also access a discounted credit product, the Homeownership Preservation Advance, to restructure loans for eligible low- and moderate-income homeowners.
‘The foreclosure crisis has hit California, Arizona and Nevada especially hard,’ notes Dean Schultz, president and CEO. ‘Our homeownership preservation grant program and credit product enable our members to offer relief to struggling homeowners in their communities.’
With an allocation of $10 million for 2008, HPS funds can be used by member financial institutions in situations where an existing mortgage held by the member can be refinanced or restructured to remain affordable for the homeowner over the long term. Under the program, the bank will grant $1 in HPS funds for every $2 provided by the member, up to a maximum of $25,000 per eligible homeowner, to be applied to the cost of restructuring or refinancing adjustable-rate mortgages into fixed-rate, 30-year loans. The deadline for members to reserve HPS matching grant funds is Nov. 3.
SOURCE: Federal Home Loan Bank of San Francisco
