NeighborWorks America Homeownership Programs Receive Boost from StateFarm Investment

For Immediate Release

October 24, 2006
Contact: Douglas Robinson, (202) 220-2360

NeighborWorks® America Homeownership Programs Receive Boost From New $100M Investment By State Farm® with Neighborhood Housing Services of America

Washington, DC –One of the key secondary mortgage market outlets for mortgages originated by members of the NeighborWorks network received a key boost recently in the form of a $100 million mortgage loan pool commitment from State Farm®. Neighborhood Housing Services of America, annually the largest NeighborWorks America grantee, and State Farm announced the agreement today at the Mortgage Bankers Association annual meeting in Chicago.

“The agreement between State Farm and Neighborhood Housing Services of America, a partner in the NeighborWorks network, will help the more than 235 NeighborWorks organizations around the country provide low- and moderate-income families with affordable alternatives to high-cost mortgages,” said Ken Wade, CEO of NeighborWorks America, and an advisor to NHSA. “This partnership marks a great day for affordable homeownership.”

The State Farm/NHSA agreement involves the origination of a new flexible mortgage made possible by credit tools from The First American Corporation — “Anthem Report” and “Anthem Score,” two tested and reliable alternative credit products that help lenders assess a consumer’s creditworthiness using data beyond what is found in traditional credit bureau reports.

The Home Ownership Center of Greater Cincinnati, Inc., a NeighborWorks network member originated the first mortgage under the initiative.

“The NHSA Anthem Loan program is a valuable new tool for members of the NeighborWorks network,” said Rick Williams, Greater Cincinnati’s executive director. “By working creatively with our lender partners and the Anthem Loan, the NeighborWorks network will be able to offer more families affordable mortgages.”

The NHSA initiative is open to organizations outside of the NeighborWorks network that want to offer prime-grade mortgages to qualifying underserved markets.

About NeighborWorks America

NeighborWorks America provides financial support, technical assistance and training for communities across the nation, including the NeighborWorks network – a nationwide network of more than 240 community development organizations working in more than 4,400 urban, suburban and rural communities across America. These organizations engage in revitalization strategies that strengthen communities and transform lives. In the last five years alone, NeighborWorks organizations have generated more than $10 billion in reinvestment and helped more than 780,000 families of modest means purchase or improve their homes or secure safe, decent rental or mutual housing.

About State Farm

State Farm® insures more cars than any other insurer in North America and is the leading U.S. home insurer. State Farm's 17,000 agents and 68,000 employees serve over 74 million auto, fire, life and health policies in the United States and Canada, and more than 1.8 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No.22 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com® or in Canada statefarm.ca™.

About Neighborhood Housing Services of America

NHSA is part of the NeighborWorks System, which also includes NeighborWorks America and the more than 235 local nonprofit NeighborWorks organizations. NHSA, together with NHSA-CDFI—its affiliated community development financial institution—and NHSA’s e-commerce center, plays a critical role in meeting the capital needs of the NeighborWorks network. Raising private sector capital from socially responsive investors, NHSA purchases first and second mortgages from local NeighborWorks organizations and their lending partners. NHSA also develops innovative loan products and services to increase the capacity of the NeighborWorks network to expand affordable housing opportunities in their communities. For more information, please visit: www.NHSAonline.org or www.nw.org.