The Community Reinvestment Act is a federal regulation that encourages banks and savings associations to help meet the c
What is the Community Reinvestment Act?
Table of Contents Section I: Page 2 What is the Community Reinvestment Act?
Section II: Page 4 What types of CRA products are offered by Flagstar Bank?
Section III: Page 8 How else is Flagstar Bank investing in the communities it serves?
Section I
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Section I
What is the Community Reinvestment Act?
Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.
Section I
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Our way of investing in our neighborhoods. Flagstar Bank is dedicated to the success of the areas we serve. Our customers are our neighbors, families and friends. Our communities are the places we call home. Our mission is to make the dream of home ownership a reality for everyone. The Community Reinvestment Act is a federal regulation that encourages banks and savings associations to help meet the credit needs of all segments of its communities, including low to moderate income neighborhoods and individuals. By making credit widely available, this initiative puts homeownership well within the reach of those who may never have thought they would be able to buy a home. It also allows low and moderate income neighborhoods and individuals to not only build equity, but also to build up their lives and steadily develop a more reliable financial foundation. We believe that we only succeed when our communities succeed. Through sound lending practices and good judgment, our CRA team is helping revitalize our communities throughout our home state of Michigan and beyond.
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Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.
Section I
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Section II
What types of CRA products are offered by Flagstar Bank?
Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.
Section II
Page 4
Flexible solutions that meet your needs. Flagstar Bank carefully crafts banking products to meet the specific needs of its customers, and CRA products are no different. Below is a quick summary of CRA products, followed by the various loan products offered by Flagstar Bank. How do CRA products typically work? CRA products are specifically designed to assist the more challenged, non-traditional borrowers. They are typically originated by a federally regulated bank or mortgage lender that is obligated to meet the requirements of the Community Reinvestment Act of 1977. Some banks refer to these loan products or programs as “portfolio loans.” Today, most federally-regulated banks have created special CRA home loan programs that are designed to meet the needs of low- and moderateincome households within their service areas. Here are some typical benefits you will find with CRA home loan solutions: • Low or no down payment requirements • Low or no mortgage insurance premiums • No first-time buyer restrictions • No income limits if you purchase within a low-tomoderate income area • Seller can pay closing costs • Lower minimum credit score • Flexiblity in qualification requirements • Compatible with down payment assistance programs • Compatible with a gift from a family member or friend • Special rates may be available.
Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.
Section II
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Flexible solutions that meet your needs. (cont’d) Flagstar Gift Program Wholly unique to Flagstar Bank, the Gift Program allows you to move into your new home with almost entirely no down payment if you qualify. Flagstar will provide 3% in down payment assistance and up to $3,500 in closing costs, but not to exceed actual closing costs. With the Flagstar Gift Program, you’ll be able to break out of the rental game and start building equity immediately. Your new mortage will have lower out-of-pocket expenses and fees, and there is no obligation to repay the down payment gift. There are certain restrictions to the program. It is available in CRA assessment areas only, and it is only applicable to primary residence within the state of Michigan. As with any of our loan programs, one of our Loan Officers will be able to answer any questions you may have. The Detroit Home Mortgage The Detroit Home Mortgage’s main goal is to aid a distressed housing market across the Detroit area by bridging the appraisal gap, kickstarting more mortgages—and making them widely available. There are no neighborhood restrictions, as long as the home being purchased is within city limits. It is available for both purchase and rehabing properties. http://www.detroithomemortgage.org
Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.
Section II
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Flexible solutions that meet your needs. (cont’d) Federal Home Loan Bank Flagstar Bank is a member of the Federal Home Loan Bank of Indianapolis that serves financial institutions in Indiana and Michigan by providing liquidity to member banks (like Flagstar), credit unions, community development financial institutions and insurance companies. A wing of the FHLBI—The Community Investment Program—provides members with funds for a variety of uses, including first-time homebuyer loans, small business loans, community and economic development loans and affordable rental housing. https://www.fhlbi.com Detroit Land Bank The Detroit Land Bank provides a very integral service in the revitalization efforts of Detroit: returning vacant, abandoned and foreclosed property to productive use. The Flagstar Detroit Land Bank product provides low down payment, no mortgage insurance, and flexible qualifications for borrowers seeking to purchase and/or rehab and refinance. Additionally, to encourage homeownership, qualified city employees receive a 50% discount on properties purchased through the Detroit Land Bank. http://www.buildingdetroit.org
Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.
Section II
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Section III
How else is Flagstar Bank investing in the communities it serves?
Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.
Section III
Page 8
Empowering our communities. While the Community Reinvestment Act is the cornerstone of our commitment, Flagstar Bank strives to give back to its friends and neighbors. Banks in general play a central role in economic growth and community development, and we strive to take that even further. In keeping with our mission to improve the areas we serve, Flagstar is proudly investing $10 million over five years to further development in Pontiac, Michigan, and create a platform for future economic successes. At the heart of our investment is a coalition of community stakeholders to provide input and help move initiatives forward.
Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.
Section III
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Empowering our communities. (cont’d) The areas of focus and amounts are wide ranging: -- Homeownership: $5 million for Flagstar’s Pontiac home mortgage initiative, including a customized home loan product for Pontiac residents and residents. The Community Comeback product is targeted for release in the 3rd quarter of this year. -- Economic Development: $2.5 million for small businesses, startups, business attraction, and economic growth. -- Flagstar Strand Theatre for the Performing Arts: $1.5 million for the previously announced naming rights to the Flagstar Strand Theatre for the Performing Arts, as well as community engagement through volunteerism and outreach related to the theatre. -- Financial Capability: $1 million for financial literacy and assetbuilding initiatives. On average, Flagstar Bank employees—from executive management to branch staff—have clocked an average of over 2,500 hours of volunteerism per year. We volunteer on boards and committees of numerous organizations that support homebuyer’s fairs, financial literacy seminars, neighborhood revitalization and more. We are ingrained in our communities with the goal of constant improvement. Come see what we can do. Whether you’re looking to buy a home or just curious about the homebuying process, simply visit your local Flagstar Bank branch for more information.
Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.
Section III
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