ALBANY, N.Y., Feb. 2 /PRNewswire-FirstCall/ -- Freddie Mac, HSBC Mortgage Corporation (USA), HSBC Bank USA, and the Affordable Housing Partnership today announced a $25 million comprehensive homeownership initiative called SHOP- CAPITAL in an effort to help hundreds of local households, including minority families, become homeowners in the cities of Albany, Schenectady & Troy. Responding to the diverse needs of the Capital District's urban communities, SHOP-CAPITAL combines comprehensive consumer outreach and education by the Affordable Housing Partnership with flexible mortgage financing options through HSBC Mortgage Corporation (USA) and Freddie Mac. The full range of initiatives available through SHOP-CAPITAL are designed to help residents clear many of the most common hurdles to homeownership, including a lack of information about personal financial management or the homebuying process, and limited downpayment savings. "SHOP-CAPITAL marks our fourth SHOP initiative with HSBC in upstate New York. By working together in Buffalo, Rochester, Syracuse, and now Albany, we are expanding affordable homeownership opportunities for some 4 million New York residents," said Freddie Mac vice president of community development lending, Craig Nickerson. "I want to thank HSBC and the Capital District's outstanding network of nonprofit organizations for working with us to foster homeownership and strengthen communities in Albany, Schenectady and Troy." SHOP-CAPITAL is part of Freddie Mac's Catch the Dream initiative, a comprehensive national effort designed to help achieve President George W. Bush's goal of adding 5.5 million minority homeowners by the end of the decade. Today's announcement also signals the latest Freddie Mac effort to expand homeownership opportunities in the Albany, Schenectady & Troy area. Over the past five years, Freddie Mac has purchased more than $2 billion worth of mortgages in the Capital area, financing more than 21,000 mortgages. Mortgages Requiring Only $500 in Borrower Cash To boost affordable mortgage financing opportunities, Freddie Mac intends to invest $25 million in innovative mortgage products, including its Community Gold(R) mortgage, that offers flexible underwriting, low-cash closing options, and downpayments that require as little as $500 from the borrower's own resources. For individuals strapped for downpayment and closing cost funds, HSBC is also offering $3,500 towards a borrower's closing costs for a Freddie Mac Community Gold(R) mortgage. By purchasing affordable mortgages originated by HSBC Mortgage Corporation (USA), Freddie Mac will ensure a steady supply of mortgage financing for more Capital District homebuyers. HSBC Mortgage Corporation (USA) is also offering its own CommunityWorks(R) mortgage that allows for a discounted interest rate, expanded qualifying ratios, and liberal credit criteria designed to assist families purchasing either a one or two-unit property. HSBC will also offer Freddie Mac's Affordable Merit Rate product that permits a one-time mortgage rate reduction for borrowers who make mortgage payments in a timely manner. "As an organization committed to the Capital District and to making homeownership affordable, HSBC Mortgage Corporation (USA) is pleased to introduce this program which we feel will meet the needs of so many of our neighbors," said David J. Hunter, president of the mortgage corporation. Reaching Out To Albany, Schenectady & Troy Families The Affordable Housing Partnership has the lead responsibility for implementing the SHOP-CAPITAL initiative in the cities of Albany, Schenectady and Troy, working with its counseling partners Better Neighborhoods Inc. of Schenectady and the TRIP NeighborWorks Homeownership Center in Troy. They will launch an information awareness campaign about the new initiative and provide borrower counseling and homebuyer education to prepare residents for the responsibilities of homeownership. "The Affordable Housing Partnership is pleased to once again partner with HSBC and participate in their joint effort with Freddie Mac to make homeownership an attainable reality in the Capital District," said Susan Cotner, Executive Director of the Affordable Housing Partnership. Call 518-434-1730 For More Information Capital residents who want to learn more about SHOP-CAPITAL should call Tracy Petersen at 518-434-1730 or visit the Partnership's website at ahpHome.org to learn about upcoming information sessions. Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds to mortgage lenders. By supplying lenders with the money to make mortgages and packaging the mortgages into marketable securities, Freddie Mac sustains a stable mortgage credit system and reduces the mortgage rates paid by homebuyers. Over the years, Freddie Mac has opened the doors for one in six homebuyers in America and two million renters. (More information on Freddie Mac can be found on the company's web site located at www.freddiemac.com.) HSBC Mortgage Corporation (USA), a wholly owned subsidiary of HSBC Bank USA, is a member of the HSBC Group PLC, which is one of the largest banking and financial service organizations in the world. The organization is the 17th largest in the nation servicing over 330,000 mortgages in excess of $52 billion. HSBC Mortgage Corporation (USA), an equal housing lender, conducts business in 48 states and has 30 offices in eight states.
SOURCE Freddie Mac; HSBC Mortgage Corporation (USA); HSBC Bank USA