KeyBank Bolsters Path to Affordable Homeownership This Fair Housing Month

Rhea-AI Summary

KeyBank is celebrating the 55th anniversary of the Fair Housing Act by enhancing access to homeownership through its Special Purpose Credit Programs. Despite previous efforts, many underserved communities still face challenges in mortgage lending. KeyBank has introduced the Key Opportunities Home Equity Loan, offering affordable refinancing options and a lower interest rate for qualifying properties. The Home Buyer Credit program has been increased from $2,500 to $5,000 to assist with closing costs. Since its inception, $465,000 has been allocated to help 132 clients. Furthermore, KeyBank plans to invest over $25 million in grants and marketing to boost mortgage lending in majority-minority neighborhoods.

Positive

• KeyBank's introduction of the Key Opportunities Home Equity Loan expands access to affordable refinancing options.
• The increase of Home Buyer Credit from $2,500 to $5,000 assists more clients with closing costs.
• $465,000 has been funded to help 132 clients achieve homeownership through the Home Buyer Credit program.
• KeyBank's commitment to invest over $25 million in grants and marketing aims to enhance mortgage lending in underserved communities.

Negative

• None.

NORTHAMPTON, MA / ACCESSWIRE / April 6, 2023 / KeyBank

This National Fair Housing Month, KeyBank celebrates the 55^th anniversary of the passage of the Fair Housing Act of 1968 by furthering its commitment to make the path to homeownership easier and more equitable through the expansion of its Special Purpose Credit Programs*.

The Fair Housing Act set a precedent to make the sale, rental, and financing of homes nondiscriminatory on the basis of race, national origin, region, sex, disability, and family. Yet, borrowers in underserved communities often remain at a disadvantage as they do not qualify or meet mortgage lending requirements, and access to affordable housing has become limited.

Access to affordable housing options is important to help reduce intergenerational poverty and increase economic mobility**. It also allows individuals to provide a safe place for themselves and their families to thrive. To reduce the barriers of home ownership, KeyBank has introduced the Key Opportunities Home Equity Loan, which provides borrowers with qualifying properties affordable terms to refinance their primary residence to obtain a lower interest rate, consolidate debt, finance home improvements, or tap into their home's equity for any other purpose. The Key Opportunities Loan features a fixed rate, with no origination fee, and a first or second lien option for loans up to $100,000.

Key has also increased its KeyBank Home Buyer Credit ^SM program from $2,500 to $5,000. This credit can be used toward closing costs and certain other costs that may come with financing a new home, including mortgage, flood and hazard insurance, escrow deposit, real estate taxes, and per diem interest for qualifying properties. Since the program began on Sept. 1, 2022, through April 4th, 2023, KeyBank has funded $465,000 in Home Buyer credits, helping 132 clients achieve their dream of homeownership in the qualifying areas where the program is available. Also, as of April 4th, 2023, KeyBank has had $175.2MM in mortgage loan applications for approximately $847,500 in Home Buyer Credits, to assist 244 clients on their path to homeownership in these locations.

This expansion comes on the heels of KeyBank's commitment to invest more than $25 million in grants, fee waivers, and marketing over five years to increase mortgage lending in majority-minority neighborhoods, as well as more than $1 million to homebuyer education and other community support.

"At KeyBank, helping our neighbors be able to afford their dream home is critical, yet many homebuyers may be unaware of the tools, resources, and offerings available to them to help them achieve such ownership," said Victor Alexander, Head of Key's Consumer Bank. "KeyBank is committed to creating affordable pathways to homeownership and helping homebuyers feel a sense of security throughout the process."

Visit the KeyBank Fair Housing Month site for more information and learn more about KeyBank's home lending opportunities and programs at KeyBank's Mortgage Center. For details on the current state of local markets and to answer any questions you may have on whether a property qualifies for Key's Special Purpose Credit Programs, KeyBank Mortgage Loan Officers are available to help.

About KeyCorp

KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $200 billion at December 31, 2022. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC. Mortgage and Home Equity Lending products offered by KeyBank are not FDIC insured or guaranteed. For the KeyBank Home Buyer Credit and the Key Opportunities Home Equity Loan, geographic restrictions apply. Ask us for details.
NMLS #399797

Copyright © 2023 KeyCorp^®. All Rights Reserved CFMA#230406-2010178

*Special Purpose Credit Programs are, generally, programs that are established to meet special social needs or the needs of economically disadvantaged persons by extending credit to persons who would probably be denied credit or would receive it on less favorable terms, under certain conditions. See 15 U.S.C. § 1691(c)(1)-(3); 12 C.F.R. § 1002.8(a).

** Source: The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Project | Nathaniel Hendren (harvard.edu)

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SOURCE: KeyBank

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FAQ

What new programs has KeyBank introduced to enhance homeownership access?

KeyBank has introduced the Key Opportunities Home Equity Loan and increased the Home Buyer Credit from $2,500 to $5,000.

How much has KeyBank funded through the Home Buyer Credit program?

KeyBank has funded $465,000, assisting 132 clients since the program began.

What is the purpose of KeyBank's Special Purpose Credit Programs?

These programs aim to meet social needs by helping underserved individuals qualify for credit they might otherwise be denied.

How much is KeyBank investing to support mortgage lending in minority neighborhoods?

KeyBank plans to invest over $25 million in grants and marketing to enhance mortgage lending in majority-minority neighborhoods.

What anniversary is KeyBank celebrating in relation to the Fair Housing Act?

KeyBank is celebrating the 55th anniversary of the passage of the Fair Housing Act of 1968.