HomeRetain

Federal Home Loan Bank of Indianapolis
Offers Funding to Help Lenders
Relieve Threat of Foreclosure

The Federal Home Loan Bank of Indianapolis (FHLBI), has announced a new $100 million lending initiative, HomeRetain, to help FHLBI financial institution members assist families facing foreclosure. HomeRetain is a part of the FHLBI's Community Investment Program (CIP), a source of wholesale funds for member institutions involved in housing or community economic development activities that benefit low- and moderate-income families or neighborhoods.

HomeRetain is an additional $100 million offering of CIP, to encourage members to provide mortgage modification or refinancing to homeowners with incomes at or below 115 percent of HUD area median incomes (family of four not adjusted for family size) who are at risk of delinquency or default. HomeRetain provides the CIP discount off regular advance programs, providing funds at the FHLBI's cost of funds plus a small markup to cover administrative costs.

HomeRetain funds are targeted to modify or refinance mortgages for primary residences in Indiana, Michigan or any other state in which a member does business. The new or modified loan provided to the consumer must be a fully amortizing, fixed-rate mortgage.

The FHLBI encourages loans funded with HomeRetain advances to be retail originated. The maximum loan-to-value ratio is 100%.

HomeRetain advances are made available to eligible members on a secured basis only and are subject to the normal credit and collateral policies of the FHLBI. Prepayment fees may also apply.

Borrowers may not take any "cash out" of the refinancing, but may only use the funds to pay off the first or second mortgage principal outstanding, any delinquent amounts owed, plus reasonable and customary fees, loan origination and processing fees. Member discretion is permitted in refinancing delinquent borrowers.

Borrowers must complete a homebuyer counseling program provided by or based on one provided by an organization recognized as experienced in homeowner counseling. The counseling program must cover, at minimum, financial literacy, predatory lending, mortgage financing, credit-worthiness, household budgeting, and home maintenance. Counseling may be provided by the member or by another competent party.

For more information contact MaryBeth Wott, Vice President, Community Investment Officer, 317-465-0368 or mwott@fhlbi.com