HSBC Mortgage Corporation (USA), HSBC Bank USA, Freddie Mac, Affordable Housing Partnership Launch $25 Million Dollar 'SHOP-CAPITAL' Program

Comprehensive Homeownership Effort Adds Financial Incentives for Albany,

Schenectady and Troy Homebuyers

Feb 02, 2004, 00:00 ET from Freddie Mac from ,HSBC Mortgage Corporation (USA) from

    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 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
     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