FHLB Cincinnati is expanding availability of discounted Advances to help members address the impact of the novel coronavirus (COVID-19) pandemic in their communities.
| CINCINNATI, April 24, 2020 /PRNewswire/ -- FHLB Cincinnati is expanding availability of discounted Advances to help members address the impact of the novel coronavirus (COVID-19) pandemic in their communities. The FHLB created a new, zero-interest rate Advance program, RISE (Responsive, Inclusive, Supportive and Empowering) and is temporarily modifying its existing discounted Advance programs.
The newly created RISE Program will offer up to $2 billion in six-month Advances at zero percent interest, for a limited time beginning May 1, 2020 at 10 a.m. EDT. These Advances can be used to support COVID-19 related assistance by all Fifth District members, including loans originated by member financial institutions under the Coronavirus Aid, Relief and Economic Security (CARES) Act, loans to support members’ customers who have been directly impacted by COVID-19, assisting mortgage servicers with required investor remittances during borrower forbearance periods as well as deferring insurance premium payments and lease payments. Funds are available on a first-come, first-served basis. In addition, the Community Investment Program (CIP) and Economic Development Program (EDP), which offer Advances at deep discounts, have expanded. Total funding for these programs is increased to $1.50 billion from $1.25 billion and the maturity requirement of one-year or greater will be temporarily suspended for COVID-19 related activity initiated by September 30, 2020. These Advances can be used to support COVID-19 related assistance by all Fifth District members, including loans originated by member financial institutions under the CARES Act, loans to support members’ customers who have been directly impacted by COVID-19, assisting mortgage servicers with required investor remittances during borrower forbearance periods as well as deferring insurance premium payments and lease payments. CIP and EDP changes are effective immediately. For complete details on these relief efforts, visit www.fhlbcin.com. “FHLB Cincinnati remains dedicated to meeting members’ funding needs so they may in turn support the housing finance, small business lending and community development needs of their communities,” said Andrew S. Howell, President and CEO. “In any and all operating environments, the FHLB is focused on remaining a reliable partner to our members. Working together, we will meet the challenges presented by the current environment.” The FHLB is a $93 billion congressionally-chartered regional wholesale bank providing financial services for residential housing and economic development to 640 member financial institutions located in Kentucky, Ohio and Tennessee. It has contributed $749 million for the creation of more than 93,000 units of lower-income housing through its Affordable Housing Program since 1990. Additionally, the FHLB’s Board of Directors has voluntarily contributed $43 million from profits in response to members’ community needs including natural disaster home reconstruction, foreclosure mitigation, emergency repair and accessibility rehab for special needs and elderly populations. The FHLB System includes 11 district Banks, is wholly owned by its 6,700 member institution stockholders and does not use taxpayer dollars. This news release may contain forward-looking statements that are subject to risks and uncertainties including, but not limited to, the effects of economic market conditions on demand for the FHLB’s products, legislative or regulatory developments concerning the FHLB System, competitive forces and other risks detailed from time to time in the FHLB’s filings with the Securities and Exchange Commission. The forward-looking statements speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the FHLB undertakes no obligation to update any such statements.
SOURCE Federal Home Loan Bank of Cincinnati |
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