Connecting to Possibilities Strengthening Our Communities by Supporting Affordable Homeownership
At FNB, we believe homeownership can be the foundation for financial security, generational wealth and strong, stable communities. For our communities to thrive, it is essential that we continue to provide banking resources that fit our customers’ wide range of needs, circumstances and backgrounds. As part of our ongoing commitment to make homeownership more affordable and accessible for everyone, we offer a comprehensive suite of products, services and financial education resources. Along with a range of governmentbacked mortgage options, we have long offered proprietary affordable mortgage products for consumers who otherwise may not qualify to buy or renovate a home. We’ve been helping our neighbors become homeowners for nearly 160 years. Reach out to one of our local bankers, mortgage loan officers or community development representatives, visit one of our branches and experience the FNB eStore®, or explore our website to learn more about our expanded credit offerings that support homeownership, financial independence and stronger communities. To learn more about affordable housing loan options, visit fnb-online.com/affordablemortgage AFFORDABLE HOMEOWNERSHIP POWERFUL RESOURCES TO SUPPORT HOMEOWNERSHIP ▶ Financial Education ▶ Products and Services ▶ Outreach MAKING AN IMPACT IN OUR COMMUNITIES ▶ Credit Counseling ▶ Homebuying Workshops ▶ Special Purpose Credit Program SOLUTIONS TO OVERCOME OBSTACLES ▶ Reducing Upfront Costs ▶ Promoting Awareness ▶ Promoting Financial Literacy WORKING TOGETHER TO BUILD STRONGER COMMUNITIES ▶ The Power of Partnerships ▶ Active Outreach and Education ▶ Promoting Economic Prosperity All loan products are subject to underwriting/credit approval. FNB is an Equal Housing Lender; NMLS #766529. 2
3 CONNECTING TO POSSIBILITIES Powerful Resources to Support Homeownership Financial Education: Our leadership team believes that banks have a responsibility to educate all consumers about banking tools and how to use them. When we first launched our Financial Insights program in 2017, we surveyed a cross-section of community development organizations representing a range of minority and low- to moderateincome (LMI) groups to determine what content added the most value and benefit to our communities. Homebuying factored heavily in the responses. We immediately incorporated that feedback and developed interactive educational modules — including content about affordable homeownership — that have become a key element of our program on eStore®. Products and Services: Affordable homeownership has long been a focus for our Company. We continue to enhance our programs and develop products that break down specific economic barriers to buying or owning a home by meaningfully reducing overall transaction costs, such as by lowering equity requirements and closing expenses. In many cases, we can eliminate upfront costs altogether with our proprietary affordable products and closing cost assistance grant. Outreach: We also have found that many members of our communities are simply not aware of the resources that can put homeownership within reach, which is why we introduced Community Homeownership Specialists (CHS) in multiple markets throughout our footprint. The CHS work with local groups, nonprofit organizations, professional networks and community leaders to ensure that consumers are aware of and know how to access our affordable programs and credit counseling. The team members serve as another set of “boots on the ground” who enable us to better know the members of our community and ensure that we are aligning our products and services with what they need most. It all ties back to giving our customers and communities the resources and tools to understand and complete the homebuying process. FNB’s focused programs are one tool in a very full toolbox when it comes to our support for affordable housing. Our Chief Executive Officer, Vincent J. Delie, Jr., has led the development of a holistic strategy to promote homeownership and community vitality overall. That strategy focuses on three main components — financial education, products and services that address economic barriers to homeownership, and outreach.
4FNB-ONLINE.COM/AFFORDABLEMORTGAGE Key Features: ▶ Up to $5,000 in closing cost assistance1, 2 ▶ 100% financing up to maximum conforming loan limits as published by Fannie Mae and Freddie Mac ▶ 45% maximum debt-to-income ratio ▶ No mortgage insurance required ▶ Credit scores as low as 620 and alternative credit considered ▶ Gifts or grant money can be used for mortgage closing costs Key Features: ▶ Variable interest rate tied to the U.S. Prime Rate3,4 ▶ Option to lock in a fixed rate for all or a portion of your outstanding balance5 ▶ FICO scores from 640 considered Key Features: ▶ One-time, lump-sum distribution of loan proceeds ▶ Fixed interest rate and fixed monthly payments ▶ Flexible repayment terms ▶ Consideration given to FICO scores as low as 640 ▶ Maximum 100% combined loan-to-value ratio6 We have created three proprietary programs1 specifically designed to expand access to credit in diverse communities. 1 FNB is an Equal Housing Lender; NMLS #766529. 2 All loan products are subject to credit approval. 3 Interest may be deductible; check with your tax advisor. 4 U.S. Prime Rate as published in The Wall Street Journal. 5 $75 fee for each executed rate lock. 6 Loan-to-value ratio applies to loans secured by owner-occupied, primary residence real estate.
A customer who was hesitant to apply for a mortgage because, like many borrowers, she did not have a strong grasp of the process. She was having difficulty finding the time to learn about it on her own and was not sure that she had the resources to qualify for a mortgage. Fortunately, we partner with local organizations on homebuying workshops, and found one that was a good fit for her. She was able to learn about the homebuying process and receive her certificate of completion by a HUD-approved agent, which is required for our Home Ownership Plus Program. With the education in hand, she was able to get pre-approved and eventually became a first-time homeowner. A more senior customer who had always rented but wanted to buy due to rent increases. She did not have regular access to a desktop computer and was uncomfortable using her smartphone to apply for a mortgage. We met with her at her local branch, located in a historically underserved community, to help her navigate the steps on her mobile device so she could easily complete her application. She has since been pre-approved for a mortgage, is seeking a realtor and is planning to attend a homebuying workshop so that she is ready to buy when she finds the right house. Making an Impact in Our Communities Our CHS have gotten great feedback from local realtors, community organizations and members of the community who have indicated that our affordable homeownership program is among the best they have encountered. In addition to the trust, goodwill and awareness we are building through our engagement in the community, our financial education and credit counseling efforts are resulting in buyers being better prepared. We understand that knowledge equates to confidence. By educating consumers, we are empowering them and giving them the tools to be successful. Recent Success Stories: 5 CONNECTING TO POSSIBILITIES
A big hurdle to homeownership is, of course, the financial element. Many consumers, especially those who have low income or who are in underserved areas, may assume they are unable to buy a home due to various considerations, such as initial upfront costs or credit score. They might remove themselves from the process before they even get started. Often, there is a path to a solution, which makes awareness of available programs especially critical. With the right products, services and guidance, we can help to create these paths and eliminate many of the obstacles and unknowns that get in the way of homeownership. For example, our proprietary affordable mortgages have reduced credit score requirements and down payments as low as zero percent. With our closing cost assistance grant, we can substantially reduce or even eliminate the upfront costs that typically act as a barrier to homebuying. If credit history is an issue, we will look at alternative trade lines, such as rent or utility payments. Fostering financial literacy, including how to improve one’s credit history, is also critical. Understanding personal financial management techniques, including banking and saving basics, how to make a budget and building and maintaining credit are essential building blocks on the way to homeownership, financial independence, wealth building and overall community vitality. Solutions to Overcome Obstacles FNB-ONLINE.COM/AFFORDABLEMORTGAGE 6
7 CONNECTING TO POSSIBILITIES At FNB, we believe there is great power in partnerships. Leaders from varied organizations — lenders, nonprofits and governments, to name a few — must come together to recognize housing struggles that people from all spectrums of life face. In some areas, availability of affordable housing supply is the greatest challenge; in others, blighted properties can be salvaged but require investment from those with the means to do so. Additionally, potential buyers must understand the important steps and responsibilities involved in the homeownership process, making active outreach and financial education vital to a fair playing field. Programs that foster the construction, rehabilitation, and/or availability of affordable housing are incredibly important, but they are also only one aspect in a broader strategy that must emphasize economic prosperity. Affordable housing is one piece of a very interconnected puzzle. Economic growth creates opportunity, so we also support initiatives that focus on creating jobs, supporting small businesses and the overall financial health and independence of individuals, families and communities. Successful programs are ones that connect the dots and use strong partnerships to address all of the challenges that stand in the way of homeownership. Working Together to Build Stronger Communities
833-BANK-FNB | fnb-online.com/affordablemortgage FNB is one of the 50 largest bank holding companies based in the U.S. by total assets. Our scale and resources make it possible for us to promote affordable homeownership and to address many of the underlying challenges that get in its way. Consumer-Centric Products ▶ No overdraft fee checking account: eStyle, a Bank On certified account1. ▶ Credit card to build or repair credit: FNB SmartSecuredSM Credit Card. ▶ Small dollar short-term loan product: FNB CashPlease Small Dollar Loan. Financial Education ▶ Financial Insights educational programming available through eStore and via community outreach events: Managing Your Checking Account; Affordable Home Ownership; and Building and Maintaining Good Credit. ▶ Understanding the factors that impact credit and financial health along with free credit monitoring and reporting: The FNB Credit Center. ▶ Of all our customers using our free Credit Center service, 34 percent improved their credit score over 12 months. By providing free monitoring services, free access to a full report, and helpful tips, we are effectively partnering with our customers to improve their credit. eStore® Through our proprietary eStore digital kiosk which will be onsite in every branch, customers can use the eStore to: ▶ Shop for financial products and solutions using product selection and comparison tools. ▶ Review product details and information via transparent and easy-to-understand video content. ▶ Open deposit accounts or apply for loans, credit cards and mortgages digitally, or use the in-branch kiosk to send product selections to your email and continue your purchase at home. ▶ Schedule an appointment to meet with a banker at a convenient time. ▶ Access financial education programs. Branches and ATMs ▶ We continue to optimize our network locally and throughout our footprint to ensure we are effectively serving customers with in-person banking options. This includes branches which feature eStore kiosks and our growing number of ATMs with TellerChat (or ITMs), along with an expanding fleet of third-party ATMs that provide consumers with greater access to cash. Community Investments and Partnerships ▶ Throughout our footprint, we have invested hundreds of millions of dollars in programs and initiatives to promote economic equality. ▶ We continue to contribute to the availability of affordable housing units through our low-income housing tax credit (LIHTC) investments. ▶ We forge strong partnerships with nonprofits, economic development and advocacy groups to ensure we are directing resources where they are most needed and to amplify our impact. 1 eStyle exceeds Bank On’s rigorous national standards, which identify features that address challenges preventing unbanked or underbanked consumers from opening an account. The more than 25 required features for 2021-2022 included no overdraft fees, low costs and the ability to pay bills and make purchases.
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