New Special Purpose Credit Program Promotes
Homeownership and Economic Equality Throughout Multi-State
Footprint
PITTSBURGH, Jan. 31,
2023 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB)
announced it is further expanding access to credit in communities
of color with a new Special Purpose Credit Program (SPCP). The
program aims to promote homeownership and economic equality and is
available to consumers in majority-minority neighborhoods
throughout the FNB footprint. FNB initially will provide up to
$3 million in closing cost assistance
annually through the SPCP and its proprietary affordable mortgage
programs.
FNB Homeownership Plus is a new mortgage loan designed to
mitigate common financial barriers to homebuying. With down
payments as low as zero percent and access to up to $5,000 through FNB's closing cost assistance
grant, FNB Homeownership Plus significantly reduces the amount of
cash a borrower needs to have up-front when buying a home. The
product has no private mortgage insurance requirement and features
flexible qualification standards, providing another solution for
borrowers whose levels of existing debt or credit scores may make
them ineligible for conventional loans. FNB Homeownership Plus even
takes alternative trade lines, such as rent or utility payments,
into consideration if a customer does not have a sufficient credit
history.
The special purpose mortgage product aligns with FNB's broader
objective to address persistent racial gaps in homeownership.
According to 2022 findings from the U.S. Department of the
Treasury's Office of Economic Policy, the 75 percent homeownership
rate for white households significantly outpaces homeownership
rates for Black households (45 percent), Hispanic households (48
percent) and non-Hispanic households of any other race (57
percent).
FNB also is now one of a few banks nationwide to offer a special
purpose home equity solution, FNB Home Equity Plus,
including both an installment loan and two lines of credit
(interest-only and principal and interest). Ranging from
$5,000 to $50,000, these products make it possible for
borrowers to monetize funds they have invested in their homes to
finance other priorities. Optimal pricing, repayment terms
extending up to 180 months and favorable loan-to-value ratios
provide consumers in diverse areas with enhanced borrowing power.
With flexible terms, FNB's program enables consumers to finance
improvements to their homes and creates a more vibrant economic
outcome for their communities overall.
"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," said Vincent J. Delie, Jr., Chairman, President and
Chief Executive Officer of F.N.B. Corporation and First National
Bank. "In addition to our long-standing proprietary affordable
mortgage programs, our new special purpose program presents another
avenue for FNB to foster equal access to credit, which is a
fundamental building block toward homeownership, wealth creation
and financial stability for families and the neighborhoods they
call home."
The SPCP builds on a suite of financial products, services and
resources FNB has introduced over time to strengthen its
communities and empower consumers to make responsible, confident
banking choices. Below are select highlights of FNB's ongoing
commitment.
Supporting Homeownership
- Closing Cost Assistance Grant – In 2021, FNB introduced
a grant program that today provides up to $5,000 toward closing costs for borrowers who
have low and moderate income or are purchasing a home in a low- to
moderate-income (LMI) or predominantly minority community.
- Affordable Mortgage Products — In addition to a full
array of government-backed programs, FNB's proprietary affordable
mortgage and home rehabilitation products are tailored to the needs
of lower income borrowers. FNB recently updated these programs to
allow for larger loan sizes and higher debt-to-income ratios, as
well as to accept alternative trade lines to assist buyers with
limited or no credit.
- Strategic Outreach — Building on ongoing marketing and
awareness campaigns, FNB has hired Community Development
Specialists and Community Homeownership Specialists to strengthen
its ongoing outreach with community groups and leaders, ensuring
local citizens are connected with education, products and services
that put homeownership within reach. FNB's goal is to continue
hiring engaged local experts in the communities it serves.
Providing Access to Financing
- Specialized Credit Products — Complementing updates to
its overdraft practices, FNB plans to launch a short-term,
small-dollar loan solution to fill urgent financial gaps, as well
as a secured credit card to help customers build or repair their
credit over time.
- Focused Investments — FNB has invested hundreds of
millions of dollars in initiatives to strengthen its communities.
In 2022, its significant efforts included a $2.5 million equity commitment to Black Tech
Nation Ventures, a majority Black-owned venture capital firm that
provides funding and resources for diverse entrepreneurs in the
tech space. Additionally, the Company has made $2 million in Equity Equivalent (EQ2) Investments
to Urban Redevelopment Authority of Pittsburgh and Invest PGH programs that
support minority-owned businesses in two underserved communities.
FNB's investments aim in part to enable local contractors to
participate in its new corporate headquarters project, which is in
a predominantly minority neighborhood.
- Small Business Administration Loans (SBA) — FNB has a
long-standing commitment to help small businesses grow and succeed,
and consistently ranks among the 100 most active SBA lenders in
the United States.
In addition, FNB currently maintains an outstanding Community
Reinvestment Act (CRA) rating from the Office of the Comptroller of
the Currency for its performance meeting the credit needs of LMI
individuals as well as its deployment of capital and other products
and services in LMI communities.
Driving Successful Outcomes
- Transparent Account Information — Led by eStore®, FNB
provides multiple tools to make the account selection and opening
processes transparent and consumer-friendly. eStore makes it easy
for customers to find information about accounts, apply for
products, schedule an appointment with an FNB expert, and access
financial education content using their online or mobile device or
at an interactive in-branch kiosk.
- Beneficial Products — FNB offers accounts to help
clients prevent mistakes, including eStyle, which enables customers
to avoid overdrafts entirely. One of FNB's fastest-growing
accounts, eStyle has received national Bank On certification from
the Cities for Financial Empowerment Fund for its affordability,
high functionality and focus on consumer protection.
- Convenient Access — Digital, online and mobile banking
services provide on-the-go banking capabilities, insight into
account activity, customizable alerts, debit card controls,
budgeting tools and more. Coupled with eStore and an expansive ATM
network, including a growing fleet of Interactive Teller Machines
that support after-hours video chat functionality, these solutions
ensure customers always have safe, convenient access to banking
services.
- Financial Insights — FNB's
educational program is available through eStore
(using online and mobile devices or in FNB
branches) or through programs presented at various community
organizations. Including interactive modules on a range of topics
such as "Managing your checking account (and avoiding overdrafts),"
"Buying your first home," and "Building and maintaining good
credit," Financial Insights is part of an organization-wide
commitment to promote financial literacy.
About F.N.B. Corporation
F.N.B. Corporation (NYSE:
FNB), headquartered in Pittsburgh,
Pennsylvania, is a diversified financial services company
operating in seven states and the District of Columbia. FNB's market coverage
spans several major metropolitan areas, including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High
Point) in North Carolina;
and Charleston, South Carolina.
The Company has total assets of nearly $44
billion and approximately 350 banking offices throughout
Pennsylvania, Ohio, Maryland, West
Virginia, North Carolina,
South Carolina, Washington, D.C. and Virginia.
FNB provides a full range of commercial banking, consumer
banking and wealth management solutions through its subsidiary
network, which is led by its largest affiliate, First National Bank
of Pennsylvania, founded in 1864.
Commercial banking solutions include corporate banking, small
business banking, investment real estate financing, government
banking, business credit, capital markets and lease financing. The
consumer banking segment provides a full line of consumer banking
products and services, including deposit products, mortgage
lending, consumer lending and a complete suite of mobile and online
banking services. FNB's wealth management services include asset
management, private banking and insurance.
The common stock of F.N.B. Corporation trades on the New York
Stock Exchange under the symbol "FNB" and is included in Standard
& Poor's MidCap 400 Index with the Global
Industry Classification Standard (GICS) Regional Banks
Sub-Industry Index. Customers, shareholders and investors can learn
more about this regional financial institution by visiting the
F.N.B. Corporation website at www.fnbcorporation.com.
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SOURCE F.N.B. Corporation