Employer Assisted Employer Assisted Homeownership Homeownership

ProgramsPrograms

• What are EAH Programs

• Advantages to employers, employees, communities, banks

• Developing an EAH program

Employer

Employee

Community

Banks

Attractive recruitment tool

Increased reputation as innovative leader in developing new employee benefits

Improved employee loyalty, dependability, morale

Increase employee retention, which could result in lower hiring and training costs

RetentionReturn

Revitalization

Recognition

Right Thing to Do

Relationships

Recruitment

Realization of the dream of homeownership

Increased job satisfaction

Increased awareness of home buying process, including avoiding predatory lenders

Increased knowledge of down payment assistance programs and other services available in the community

Possibility of reduced commuting time

Greater involvement by employees in their community

Possibility of less traffic, pressure on transportation systems

Increase to tax base due to rise in homeownership

Increase in business for local businesses

Increased stability in neighborhoods

Increase:

Loan volume

Cross-selling

Future banking services to employer

• University of Washington

• Emmanuel Hospital

• Bellevue School District

• Cities of Seattle, Portland

• Fred Hutchinson Cancer Research Center

• Anthony’s Homeport Restaurant

Maintain a listing of homes or apartments available for sale and for lease in the local area.

Provide information to employees on first-time homebuyer classes and programs offered by various organizations.

Provide links to homebuyer assistance information and organizations on the company’s website.

Allow a lender or nonprofit organization to present information on the home buying process on-site.

Allow a lender or nonprofit organization to hold a first-time homebuyer class on-site

Provide a special homebuyer savings program

Provide the employee an interest rate buy-down on their loan

Provide the employee a low-interest loan, forgivable loan, or grant to help fund down payment and/or closing costs

Provide second mortgage financing

Provide a mortgage guarantee, full or partial, to assist in securing financing

Engage in a master lease of properties and rent them to employees

Employer Bank Nonprofit Organization

Partners to consider:

• Secondary Market: Fannie Mae, Freddie Mac

• Local non-profit organizations

• Trade associations

• Unions

• Municipalities

Your Bank’s EAH ProgramYour Bank’s EAH Program

1. Commitment

2. Strategy

Coordinator

Your bank’s program offerings

Target employers

Partners – nonprofits/business assns.

Brochure, marketing plan

Coordinator

• Distributes brochure

• Seeks targeted advertising opportunities -trade magazines, conferences, newsletters

• Contacts employers, arranges initial meetings

• Coordinates homebuyer training

• Follows up with employer, employees, bank

Craig NolteRegional Manager, Community DevelopmentFederal Reserve Bank of San FranciscoPH (206) 396-2192craig.nolte@sf.frb.org