BOSTON – The Massachusetts Credit Union League and its affiliated credit unions have created an umbrella brand – the Credit Union Community Hope Initiative – for their community outreach and charitable activities related to low-income housing and the homeless and committed $100 million to that initiative. The monetary commitment includes the more than $78 million that 13 Massachusetts credit unions have already committed to the national credit union Home Loan Payment Relief program and any additional commitments Massachusetts CUs make towards that initiative. NCUA Vice Chairman Rodney Hood was on hand for the announcement that was made last week at a State House news conference. Also attending the announcement were league officials, state Commissioner of Banks Steven Antonakes and other invited Massachusetts federal and state legislative officials including: Gov. Mitt Romney, Lt. Gov. Kerry Healy, Sen. Edward Kennedy (D), House Financial Services Committee Ranking Member Rep. Barney Frank (D), and Rep. Michael Capuano (D). Rob Kimmett, senior vice president for the MCUL explained that the league has had a long-standing commitment to the Massachusetts Coalition for the Homeless and part of the way that was managed was through a trust set up as the Massachusetts Affordable Housing/Homeless Trust. "There were too many identities involved in that and we wanted to create a structure so everyone understood what we're doing and which activities are a part of that," said Kimmett. Participating credit unions throughout Massachusetts will offer qualifying buyers a three-year, adjustable-rate mortgage at one percentage point below the market rate for these types of loans. The rate will be fixed for the first three years, and after that it will adjust annually depending on the rate environment. Adjustments are capped at 1% a year and 5% over the life of the loan. Required down payments for the loans are no more than 3%, and gifts and grants are permitted. The maximum ratio of monthly obligations to income will be 42%. Applicants must be purchasing an owner-occupied principal residence. Massachusetts Credit Union League President/CEO Dan Egan said, "Owning a home is truly the American dream. Buying a home, however, is always difficult, especially for those of modest means. This program will enable many Massachusetts residents to take the major step into home ownership that they didn't think possible at this time." According to the league, the median home price in the metro Boston area in 2005 was $430,000, an increase of more than 5% from 2004. The median income in the Boston area is $57,800. According to CUNA, as of Feb. 6 there were 102 CUs participating in the HLPR program with loan commitments totaling $975,843,000. In addition there is one credit union pending board approval, totaling (approx.) $10,000,000 -

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