Along with many agencies and officials, the FHLBank of Cincinnati is concerned over the personal and economic impact of rising foreclosure rates in Kentucky, Ohio, and Tennessee. The FHLBank of Cincinnati is actively seeking ways to be responsive to the issue on many fronts. All of the FHLBank’s efforts are coordinated through its members, financial institutions including commercial banks, savings banks, savings and loan associations, credit unions, and insurance companies. A list of members can be found at www.fhlbcin.com.

As part of its larger response, the FHLBank has authorized $2.5 million dollars to be used in “Preserving the American Dream,” a program allowing members to provide their first mortgage customers with an opportunity to preserve homeownership in the face of economic distress, mortgage rate resets, declining property values, or other circumstances which might otherwise lead to foreclosure.

The funds will be made available to qualified community agencies through members for: 1) outreach to homeowners in economic distress and/or facing delinquency or default; 2) foreclosure prevention counseling; 3) “rescue” funds to help homeowners bring mortgage payments current or to pay late fees or other reasonable charges; and 4) foreclosure mitigation activities on behalf of homeowners.

Such community agencies must demonstrate their qualifications through responses to a Request for Qualifications (RFQ) and provide acceptable proposals in response to a Request for Proposals (RFP).

Responses to the RFQ will allow the FHLBank to select agencies which can demonstrate by their qualifications and successful experience that they are actively engaged in preserving homeownership in their communities. Responses to the RFP will allow the FHLBank to select proposals for services and activities that will provide significant opportunities for homeowners to remain in their homes and avoid foreclosure.

The agencies selected will serve as Program Administrators to provide support to homeowners in Kentucky, Ohio, and Tennessee who are first mortgage customers of banks and other financial institutions who are members of the FHLBank of Cincinnati.

Qualified agencies can request funding of up to $200,000 to provide up to $3,500 per homeowner for the services and activities needed.

“Preserving the American Dream” will be available only through members to qualified agencies successfully providing foreclosure prevention counseling/loss mitigation programs within Kentucky, Ohio, and Tennessee. Any agency within the area may respond to the RFQ/RFP but preference will be given to non-profit agencies which best meet the following qualifications:

1. Stable organizational and financial history;
2. Stable and sufficient operational funding;
3. Established outreach efforts; including participation with national or regional “hot line” referral sources;
4. Participant in national networks of counseling agencies or services or as an affiliate of a national or regional non-profit housing counseling or other housing agency;
5. HUD-approved counseling agency, including approval as a post-purchase and delinquency prevention counseling agency;
6. Access to other grants or loans which could be used to assist homeowners;
7. Receipt of funding from other agencies for similar services;
8. Sufficient trained and experienced staff to deliver the services required, including counselors trained in foreclosure prevention and “work-out” specialists;
9. Well-defined and community-wide service area;
10. Stable and accessible physical location;
11. Recognizable agency within the community;
12. A history of working with members of the FHLBank of Cincinnati; and
13. Other matters relevant to the nature of the program and services to be provided.

While the agencies selected may provide a broad range of services in their communities, the program funds received through members can only be used for:

1. Operations directly related to the program, including outreach to identify potential eligible homeowners;
2. Foreclosure prevention counseling to such homeowners;
3. “Rescue” funds to bring mortgage payments current or to pay late fees or other reasonable charges for such homeowners; and
4. Foreclosure mitigation activities on behalf of such homeowners.

Responses to the RFP must identify how homeowners will be identified, how services will be determined appropriate, how services will be provided in certain common situations, and under what circumstances homeowners would not be considered appropriate for any services.

The response must also describe how the services (including referrals) will be managed and tracked and how the relationships with members will be established and managed, including clear identification of a lead member and how coordination among members will be accomplished.

Responses must identify members with whom the agency will work, with a preference for proposals which identify multiple members or a consortia of members to expand the potential impact of the program in the community.

Responses to the RFP must propose a total project budget for a specific time period, identify how each service or activity will be provided, commit to how many “units” of service will be provided, and commit specific staff resources.

The RFP will outline certain reporting requirements and the response should describe how such requirements will be satisfied.

Only members of the FHLBank of Cincinnati may participate in the program and program funds may only be used to assist first mortgage homeowners served by such members.

Upon execution of all documents and agreements, funds will be delivered to members to be provided to the non-profit agencies with whom they have partnered for this program.

Members will provide the agencies with referrals and commit to work with the agencies and with homeowners to avoid foreclosure.

1. Two million five hundred thousand dollars ($2.5 million) is available for 2008.
2. Awards to community agencies of up to $200,000 will be made through members based on their qualifications, capacities, and responses to the RFP (a higher amount may be provided under extraordinary circumstances, if justified in a proposal).
3. The FHLBank reserves the right to select only the number of agencies it determines best meet the criteria specified and to award through members only the amount of funds deemed appropriate. The FHLBank may also modify the criteria or seek additional information or clarification from any agency or member related to any matter as it deems necessary.

1. Up to $3,500 each to homeowners in financial distress and/or facing delinquency or default.
2. Funds could be used for:
   1. Operations directly related to the program, including outreach to identify potential eligible homeowners (based on an approved budget);
   2. Foreclosure prevention counseling (up to $500 per homeowner, subject to caps in an approved budget);
   3. “Rescue” funds (up to $2,500 per homeowner, subject to caps in the approved budget) to bring mortgage payments current or to pay late fees or other reasonable charges; and
   4. Foreclosure mitigation activities on behalf of homeowners (up to $500 per homeowner based on the type of activities appropriate, subject to caps in an approved budget).
   5. Funds can be used to serve eligible homeowners in combination with funds from other sources.

For information or assistance, please contact Housing and Community Investment at 888-345-2246.