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The program, known as Partners, determines whether a potential homebuyer can qualify for a home purchase loan under a given set of underwriting criteria and financial data. It illustrates how personal financial factors and loan underwriting techniques affect home loan applications. It also offers potential solutions for applicants who may not qualify for conventional home purchase loans.
The Partners software includes these additional features:
· Testing capabilities, which can determine whether the underwriting criteria under consideration will qualify low- and moderate-income persons.
· Secondary market considerations for those interested in determining the approximate premium or discount on loans sold in the secondary market.
· Amortization schedules for fixed-rate monthly payment schedules.
· Equity buildup computations, which can be developed to educate users, homebuyers, and lenders on the amount of equity they can build through loan repayment.
Partners was developed by the Federal Reserve Bank of Atlanta. According to Ron Zimmerman, vice president in the Atlanta Fed s Banking Supervision & Regulation Department, the response to the program has been very positive so far. "One non-profit agency here told us Partners allowed its employees to double the number of people they were able to counsel each day," says Zimmerman.
"The program has far-reaching implications," he adds. "With federal subsidies for housing declining, it s important for borrowers to fully leverage their own funds and to make use of the remaining programs available to them. We think Partners will help them do that."
For a copy of Partners, please mail or fax your request to Laura Kyzour, Corporate Communications and Community Affairs Department, Federal Reserve Bank of Cleveland, P.O. Box 6387, Cleveland, OH 44101-1387. The fax number is (216) 579-2477.
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