Community Investment Services

FHLBank Atlanta

2

• Shareholder/customer dynamic

• Have not experienced a credit loss in 75 years

• Annual reinvestment of at least 10 percent of net income into affordable housing

Characteristics of FHLBank Atlanta as a Cooperative

Members FHLBankStock

Advances

CommunityDividend

3

• FHLBank Atlanta views the 10 percent income allocation as the dividend that we pay the community

• Like every other dividend, the payment is predicated upon the positive financial performance of FHLBank Atlanta

The Community Dividend

4

AHPCommunity

Dividend

Community

FinancialInstitution

FHLBank

CommunityGrows

Developer requests funds for Affordable Housing

Development

Member institution applies for funds from

FHLBank Atlanta

FHLBank Atlantaapproves funding

on competitive basis

Funds are invested in the community

How We Grow Communities

5

Stimulated Growthin local communities by providing

products that revitalize neighborhoods, create jobs, and support economic development

$377 Million through FHLBank Atlanta’s

Affordable Housing Program to support more than

61,000 housing unitsSince 1990

$3.2 Billionin “subordinate, equity-like”

capital has been awarded

Our Successful Mission

FHLBanks

6

AffordableHousingProgram

(AHP)

CommunityInvestment

Program(CIP)

First-timeHomebuyer

Program(FHP)

EconomicDevelopment

Program(EDP)

Community Investment Initiatives

7

Affordable Housing Program (AHP)

• Funding to create rental and homeownership opportunities for moderate-, low- and very low-income households

• Beneficiaries― Residents at or below 80 percent of Area Median Income (AMI)

• Competitive Application Process

• Uses

– New construction or rehabilitation – Acquisition– Permanent financing – Down payment and closing cost assistance

8

Enhancements for AHP 2009-2010

Member Financial Participation

Foreclosure Prevention

Project Readiness Improve member and sponsor customer service levels and Expedite funding of projects

Position AHP to assist in solving big problem in the district and the country – foreclosure crisis

Increase front-end analytical rigor and due diligence

Reward member financial commitment in AHP projects

Enhanced Analytical Environment

9

Desired Outcome for AHP

More ReadyProjects

More ReadyProjects

Reduce Project

Modification

Reduce Project

Modification

ExpediteFundingExpediteFunding

Application requirements and process improvements leading to higher levels of customer service

DecreaseProject

Extensions

DecreaseProject

Extensions

10

First-time Homebuyer Program (FHP)

• Down payment and closing cost assistance– 5:1 Match (Minimum borrower contribution of $500)– Maximum $10,000 per borrower– Registered members eligible for up to $1,000,000 per year– First-come, first-served

• Benefits homebuyers at or below 80 percent AMI

• Five year retention agreement

11

Using FHP to Win First-Time Homebuyers

• FHP used by members to compete for highly sought-after new customers – Members marketed FHP as an incentive for customer to use member’s

mortgage products

• Proven results with members– During 2008, FHLBank Atlanta supported over $17MM to members’

First-Time Homebuyer lending activities, resulting in almost 2,000 member-originated first mortgages

• In 2009, nearly $10MM will support members’ customer acquisition campaigns– FHLBank Atlanta made significant changes to underwriting guidelines

to further responsible lending and customer service commitments

12

…Every $1 of FHP generates $17 in new mortgage business

for our members

FHP (1997 – 2008)

13

Demand For FHP Funding

Fed Sees Some Home Buying Up

“Residential real estate markets continue to bounce back from the doldrums of the recession, according to a Federal Reserve report released Wednesday.”

“The central bank's Beige Book found higher year-over-year home sales in the Atlanta, New York, Cleveland and Minneapolis districts.”

“Still, most of the activity in the residential market is happening at the lower end of the spectrum, thanks to first-time homebuyer tax credits.”

American Banker  |  Thursday, September 10, 2009

14

Community Investment Program (CIP)and Economic Development Program (EDP)

• Discounted advances (up to 10 basis points)

• Always available, simple application, no maximum amount

• Complements government programs

• One advance can fund multiple loans

• Discounted loans approaching $5 billion

15

Webinars

Sponsorships

In-market workshops

Forums

Business Development and Relationship Management

Jackson Cosey

ShaDonte Dozier

Louis Freeman

800.536.9650 www.fhlbatl.com

How We Connect

16

We are happy to help.

Do You Have Any Questions?