Press Release

HSBC Mortgage Corporation, HSBC Bank USA and Others Launch $25 Million "SHOP-ROCHESTER" Program

Comprehensive Homeownership Effort Adds Financial Incentives For Rochester Homebuyers

6 October 2003

ROCHESTER, NY - Freddie Mac, HSBC Mortgage Corporation (USA), HSBC Bank USA, and Rural Opportunities, Inc. today announced a citywide $25 million comprehensive homeownership initiative called SHOP-ROCHESTER in an effort to help hundreds of local households, including minority families, become homeowners in the city of Rochester.

Responding to the diverse needs of Rochester's multi-ethnic communities, SHOP-ROCHESTER combines comprehensive consumer outreach and education by Rural Opportunities, Inc. with flexible mortgage financing options through HSBC Mortgage Corporation (USA) and Freddie Mac. The full range of initiatives available through SHOP-ROCHESTER 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 support this important effort to increase homeownership choices for Rochester families," said Freddie Mac vice president of community development lending, Craig Nickerson. "Working with HSBC and Rochester's outstanding network of nonprofit organizations, we can help more families break down barriers to the American Dream of homeownership."

SHOP-ROCHESTER is part of Freddie Mac's Catch the Dream initiative, a comprehensive national effort designed to help achieve President George W. Bush's goal of adding 5.5 million minority homeowners by the end of the decade. Today's announcement also signals the latest Freddie Mac effort to expand homeownership opportunities in the Rochester area. Over the past five years, Freddie Mac has purchased nearly $3.7 billion worth of mortgages in the Rochester area, financing nearly 37,000 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 it's new Community Goldâ mortgage, that offers flexible underwriting, low-cash closing options, and downpayments that require as little as $500 from the borrower's own resources. For individuals strapped for downpayment and closing cost funds, HSBC is also offering $3,500 towards a borrower's closing costs for a Freddie Mac Community Goldâ mortgage.

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

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

"As an organization committed to Rochester 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 Rochester," said David J. Hunter, president of the mortgage corporation.

Reaching Out To Rochester Families

Although the program includes the entire City of Rochester, Rural Opportunities, Inc. has the lead responsibility for implementing the Rochester 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.

"Rural Opportunities, Inc. has a long standing tradition of working with HSBC. We're 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 Rochester," said Jean Marie Lipani, Director of Homeownership, Rural Opportunities, Inc.

Call 585-340-3302 For More Information

Rochester residents who want to learn more about SHOP-ROCHESTER should call Carleen Wade at 585-340-3302.