Press Release

HSBC Mortgage Corporation, HSBC Bank and Others Launch $25 Million "Shop-Buffalo" Program

Comprehensive Homeownership Effort Adds Financial Incentives For Buffalo Homebuyers

7 May 2003

Buffalo, NY -- Freddie Mac, HSBC Mortgage Corporation (USA), HSBC Bank USA, and West Side Neighborhood Housing Services, Inc. today announced a citywide $25 million comprehensive homeownership initiative called SHOP-BUFFALO in an effort to help hundreds of local households, including minority families, become homeowners in the city of Buffalo.

Responding to the diverse needs of Buffalos multi-ethnic communities, SHOP-BUFFALO combines comprehensive consumer outreach and education by the West Side NHS with flexible mortgage financing options through HSBC Mortgage Corporation (USA) and Freddie Mac. The full range of initiatives available through SHOP-BUFFALO 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.

"Freddie Mac is delighted to take a lead role in forging this effort to increase homeownership choices for Buffalo families, said Freddie Mac senior vice president David Stevens. Working with HSBC and Buffalos outstanding network of nonprofit organizations, we can help more families break down barriers to the American Dream of homeownership."

SHOP-BUFFALO is part of Freddie Macs Catch the Dream initiative, a comprehensive national effort designed to help achieve President George W. Bushs goal of adding 5.5 million minority homeowners by the end of the decade. Todays announcement also signals the latest Freddie Mac effort to expand homeownership opportunities in the Buffalo-Niagara area. Over the past five years, Freddie Mac has purchased nearly $2.7 billion worth of mortgages in the Buffalo-Niagara Falls areas, financing nearly 31,126 homes.

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 their Community Gold mortgage, that offer flexible underwriting, low-cash closing options, and downpayments that require as little as $500 from the borrowers own resources. For individuals strapped for downpayment and closing cost funds, HSBC is also offering $3,500 towards a borrowers closing costs for a Freddie Mac Community Gold mortgage.

By purchasing affordable mortgages originated by HSBC Mortgage Corporation (USA), Freddie Mac will ensure a steady supply of home buying credit for more homebuyers.

HSBC Mortgage Corporation (USA) is also offering its own CommunityWorks® mortgage that allows for a discounted interest rate, expanded qualifying ratios, and liberal credit criteria designed to assist families purchasing either a one and two-unit property. HSBC will also offer Freddie Macs Affordable Merit Rate product that permits mortgage rate reductions for borrowers who make mortgage payments in a timely manner.

"As an organization committed to Buffalo 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 in Western New York," said David J. Hunter, president of the mortgage corporation.

Reaching Out To Buffalo Families

Although the program includes the entire City of Buffalo, West Side Neighborhood Housing Services, Inc. has the lead responsibility for implementing the Buffalo Homeownership Initiative. 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.

"West Side NHS has a long standing tradition of working with HSBC. Were excited about this opportunity to once again participate with HSBC in their joint effort with Freddie Mac to make homeownership an attainable reality in the City of Buffalo," said Linda S. Chiarenza, Executive Director of the West Side NHS.

Call 716-885-2344 For More Information

Buffalo residents who want to learn more about SHOP-BUFFALO should call 716-885-2344.