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Information Requirements

Examples



Community Investment: Residential Lending Advance 


Residential Lending Advance

The Bank’s Community Investment Advance (CIA) provides your financial institution with a useful tool for the business of residential lending. These funds are at a discounted rate to the member, and are intended to assist our members in meeting affordable housing needs in both urban and rural communities.

Residential Lending Advances are available for targeted loans that support the purchase, construction, rehabilitation or refinancing of owner-occupied and rental residential housing. The program also supports predevelopment financing of owner-occupied residences and rental housing. Loans that are short-term or long-term, refinance loans and purchased loan participations are eligible. Refinance loans for housing projects are eligible if equity proceeds are used to rehabilitate the project or to preserve affordability for current residents. Advances may also be taken to support the purchase of mortgage revenue bonds or mortgage-backed securities if all of the loans financed by such bonds or backing the securities can be shown to meet the eligibility requirements of the CIA program.

Please read below, or see the Residential Lending Advance Request for Funds form for further instruction, including Definitions. Call the Community Investment Department at 1.800.544.3452, ext. 1173 for assistance in completing the request form.


CIA Advantages

  • Provides affordable housing and promotes economic development

  • Can be used in certain geographies regardless of the income of the borrower

  • Reduces interest rate risk of long term advances

  • Fixed rate advances from one year to 20 years

  • Priced below corresponding regular advance rates

  • Minimum borrowing amount $100,000


What loans may qualify?

Typically, loans are eligible if they serve low-and-moderate income households, have affordable rents or are originated in targeted areas. There are several targeted area designations, but the most commonly used is targeted area by income. Targeted areas include:

  • Lower income areas (115% Area Median Income)

  • Indian Area

  • Federal Empowerment Zone

  • Federal Champion Community

  • Federal Enterprise Community

  • Military Base Closing Area

  • Brownfield Tax Credit Area

  • Community Adjustment and Investment Area

Loans may also be qualified by Disaster Declaration. Members with projects located in a Federal Disaster Area are eligible for advances which are used to help finance loans on residential property to cover repairs or losses related to the disaster. Loans must be originated within 18 months of the Federal Disaster Declaration. Residential loans would not need to meet other defined targets. A member must provide a concise project description in their Residential Lending Advance Request for Funds to demonstrate that a project is related to the disaster. See Federal Disaster Areas for further information.

All loans used to qualify for CIA must be originated within three months of the date of an advance (a “Closed Loan”), or a member may take an advance based on an estimate of loans to be closed (a “Loan to be Closed”). If the latter, a member must originate qualifying loans within 12 months of the date of the advance. At the time of the advance, or at the end of 12 months, as applicable, the member must provide the Bank information to qualify the loans for the advance.

See the Residential Lending Advance Request for Funds form for further instruction, including Definitions, or call the Community Investment Department at 1.800.544.3452, ext. 1173 for assistance.


How is a request for funds made?

The member will submit a Residential Lending Advance Request for Funds to the Community Investment Department with each application. The form must be complete and information certified by signature of a staff person at the member authorized to apply for advances. Please provide at least 24 hours for the processing of a request. To apply, see the Residential Lending Advance Request for Funds form. Call the Community Investment Department at 1.800.544.3452, ext. 1173 for assistance in completing the request form.


What are information requirements?

Information collected to qualify a loan for a CIA advance includes:

  • Borrower name or loan number

  • Borrower (project) street address

  • Loan closed date

  • Loan amount

  • Concise project description

  • Borrower income, if Qualified by Income

  • Rent schedule including number of units and maximum rent, if Qualified by Rent

This information will be collected with the Request for Funds if the member is using “Closed Loans”. If a member uses “Loans to be Closed”, the Bank will follow up with the member after 12 months to obtain this information.


Examples

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