April, 2012

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LOCAL EDITION ORIGINATION FHLB of Chicago to Offer Down Payment Subsidies CHICAGO'S FEDERAL HOME LOAN BANK HAS LAUNCHED A NEW DOWN PAYMENT PROGRAM. ILLINOIS // The Federal Home Loan Bank of Chicago's Downpayment Plus (DPP) programs recently went live, which means financial institu- tions in Illinois and Wisconsin that are members of the regional Home Loan Bank now can offer eligible mortgage borrowers a subsidy of $8,000. The money may be used for down payment and closing cost assistance, homebuyer counsel- ing costs, or rehabilitation costs associated with the purchase of a home. Chicago's Federal Home Loan Bank is allocating $10 mil- lion for its DPP programs in 2012. "While you won't find branches of the Federal Home Loan Bank of Chicago on neigh- borhood street corners, we are an important factor in housing fi- nance through our member insti- tutions in Illinois and Wisconsin," said Matt Feldman, president and CEO of the Federal Home Loan Bank of Chicago. "One of the ways we help build communities is through the Downpayment Plus pro- grams," Feldman continued, "which provide eligible bor- rowers with good credit and a steady income the helping hand they might need with the down payment for a home." Funds are available to mem- bers of the Federal Home Loan Bank of Chicago on a first-come, first-serve basis until the annual allocation is exhausted. Each participating member institution can access $400,000 on behalf of their customers. Homebuyers must meet income eligibility requirements, occupy the home as their primary residence, and contribute at least $1,000 to the purchase of the home as well as participate in homebuyer and financial literacy counseling. New Lending Partnership for National Builder KB HOME AND NATIONSTAR REACHED AN AGREEMENT THAT ESTABLISHES A PREFERRED LENDING PARTNERSHIP. CALIFORNIA // KB Home, a national homebuilder, is partner- ing with Nationstar Mortgage from KB Home. "Of course, they're free to choose still," she added. KB Home chose to work with Nationstar because it has a broad national presence and will be accessible to KB Home's buyers nationwide, according to the spokeswoman. Additionally, KB Home appre- ciates that Nationstar is "experi- enced in providing mortgages as well as servicing them," and the company offers a wide array of 1957, KB Home has built more than half a million homes. Mexican Housing Day Arrives in New York, London CONFERENCE EXAMINES THE STATE OF REAL ESTATE IN AMERICA'S MOST CONTROVER- SIAL NEIGHBORING COUNTRY. MEXICO // New York City and London last month played host to Mexico's annual housing and economic forum. Seeking to provide informa- tion on the country's housing and mortgage industries to global financial institutions and related organizations, represen- tatives from Mexico discussed market dynamics, strengths, forecasts, and government frame- work during the Ninth Annual Mexican Housing Day. Mexican Housing Day actually covers four days of presentations across the U.S. and the United Kingdom. Leading into the 2012 Mexican Housing Day, the group focused on the positive elements of the beleaguered country's cur- rent structure, noting in an official statement that "the nation's hous- ing industry is undergoing a new phase of sustainable growth." Target areas covered during to offer financing on its homes. KB Home announced in recent days that Nationstar will be its preferred mortgage lender. "The agreement with Nationstar is intended to offer KB Home customers a seamless homebuying experience, from purchase and mortgage applica- tion to picking up the keys to their new home," stated a recent release from KB Home. When KB Home writes a contract for a new home, it will include information about Nationstar's financing options, according to a spokeswoman lending options, including FHA, VA, USDA, and conforming and nonconforming loans. "We look forward to working with Nationstar and its group of professionals who are dedicated to providing exceptional custom- er service to our homebuyers," said Jeffrey Mezger, president and CEO of KB Home, in the company's announcement. "Nationstar is a national lender that is capable of serving KB Home's homebuyers as we continue to help them fulfill the American dream of homeownership." As a national homebuilder established in Mexican Housing Day included housing market influences and data, industry strongholds and predictions, public policy decisions, and sustainability and financ- ing. The key representatives from Mexico's housing and mortgage marketplaces hoped to stimulate a deep analysis of the evolution of the Mexican housing sector. Commenting on opportunities within the Mexican markets, the creators of the nation's housing event cited support from "long- term public policy and solid institutions, fomenting higher quality of life and better hous- ing alternatives" as the catalysts driving Mexico's industry. Prominent guest speakers for this year's Mexican Housing Day included Jose Antonio, Mexico's secretary of the treasury and THE M REPORT | 45 ORIGINATION SERVICING ANALYTICS SECONDARY MARKET

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