WASHINGTON – The Federal Housing Finance Board approved a request by the Federal Home Loan Bank of San Francisco yesterday that will allow the bank to provide $10 million to help troubled homeowners refinance their mortgage through credit union and bank members.
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The pilot program will assist low- and moderate-income homeowners whose ARMs are scheduled to reset much higher in the coming months into fixed-rate loans.
The San Francisco Bank will provide as much as $25,000 to help borrowers refinance into full amortized, fixed-rate mortgages of at least 30 years. The FHLB’s subsidy would be matched on a two-to-one basis ($50,000) by participating credit unions or banks.
