Effective July 1, 2008, an additional $100 million has been allocated for HomeRetain through June 30, 2009 ($50
million for Indiana members and $50 million for Michigan members). HomeRetain was launched in 2007 as a $100 million
offering of the Community Investment Program (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 a discount off regular
advance programs, providing funds at the FHLBI’s cost of funds plus a small markup to cover administrative costs.
Documents
> Application
> Income Limits
> Webinar Presentation
> Press Release Template
> Counseling Resource Guide
> Homeowner Information Form
Limitations and Requirements
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 rate of interest, points, fees, and all other charges must be reasonable and customary. The first mortgage loan
must comply with applicable federal, state and local anti-predatory lending laws, regulations and orders designed to
prevent or regulate abusive and deceptive lending practices and loan terms. The first mortgage loan closing may not
include single-premium credit life insurance, and the first mortgage loan may not exceed the annual percentage rate,
or points and fees thresholds of the Home Ownership and Equity Protection Act of 1994 and its implementing
regulations (Federal Reserve Board Regulation Z).
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 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.
> FHLBI's Counseling Resource Guide.
HomeRetain funds may be used with other mortgage or grant assistance programs, depending on the requirements of those
programs, but may not be used with other FHLBI programs such as the AHP, HOP, or NIP.
The FHLBI expects the HomeRetain's lower cost of funds to be passed
through to the borrower to assure affordability. Affordability is defined as mortgage payments (PITI) which do not exceed 35% of a borrower’s monthly income. The
borrowers’ total debt ratio should be less than 45%. HomeRetain funds are available for fixed rate, amortizing mortgages
only.
Funds Availability
The FHLBI has set aside an additional $100 million for HomeRetain ($50 million for Indiana members and $50 million for Michigan members).
HomeRetain advances are available until June 30, 2009, on a first-come, first-served basis, subject to
availability of funds.
Funds are priced daily at the FHLBI’s cost of funds plus a small markup to cover administrative costs. After both
the Community Investment Department (CID) and Credit Services Departments approve the HomeRetain
application, the CID will send
a letter notifying the member of the approval and the conditions agreed
upon. Credit Services will establish a funds-only commitment for up to
six months. Members may draw down the commitment in a lump sum or make multiple draws. The per member cap for HomeRetain
borrowing is $15 million per offering.
Eligible Advance Type
The FHLBI’s regular fixed-rate advance (1 to 20 years), callable advance, mortgage advance and amortizing advance are
all eligible under HomeRetain.
Application Guidelines
Members applying for HomeRetain advances should complete and submit a
HomeRetain Application that describes the use of funds and
provides the required certifications. The Application is to be submitted to the CID which approves the application.
After approval by CID, the HomeRetain application will be submitted to the Credit Services Department for regular
underwriting approval. Funds are disbursed into the member’s CMS or Time account
with FHLBI.
Information and Technical Assistance
For information or assistance, please contact:
MaryBeth Wott, Community Investment Officer
(317) 465-0368
(800) 688-6697
mwott@fhlbi.com
or
Marjorie Green, Community Investment Relationship Manager
(517) 230-2361
mgreen@fhlbi.com
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