HSBC MORTGAGE CORPORATION (USA), FREDDIE MAC, THE COMMUNITY DEVELOPMENT CORPORATION OF LONG ISLAND LAUNCH "MI PRIMERA CASA" HOMEOWNERSHIP INITIATIVE

Effort To Create Homeownership Opportunities For Low- And Moderate-Income Latino Families On Long Island

Long Island, NY – Freddie Mac, HSBC Mortgage Corporation (USA), and the Community Development Corporation of Long Island (CDCLI) today announced a homeownership initiative called MI PRIMERA CASA in an effort to help more Latino households become homeowners on Long Island.

MI PRIMERA CASA combines comprehensive consumer outreach and education by the Community Development Corporation of Long Island with flexible mortgage financing options through HSBC Mortgage Corporation (USA) and Freddie Mac. The full range of initiatives available through MI PRIMERA CASA are designed to help residents clear many of the most common hurdles to homeownership by providing CreditSmart^® Español, Freddie Mac's bi-lingual curriculum on the homebuying process and building personal wealth, providing access to special mortgage programs with flexible credit and low downpayment requirements.

The CDCLI, which operates two designated NeighborWorks^® Homeownership Centers in Centereach and Freeport, has the prime responsibility for implementing the MI PRIMERA CASA initiative on Long Island.

MI PRIMERA CASA marks our fifth initiative with HSBC in New York. By working together in Buffalo, Rochester, Syracuse, Albany and now Long Island, we are expanding affordable homeownership opportunities for some four million New York residents," said Freddie Mac vice president of community development lending, Craig Nickerson. "I want to thank HSBC and the Community Development Corporation of Long Island for working with us to foster homeownership and strengthen communities on Long Island.

HSBC and Freddie Mac created MI PRIMERA CASA to respond to the Long Island's Latino community's diverse needs by leveraging public resources, improving customer service by introducing culturally friendly products and services, and networking with organizations providing complementary services.

Today's announcement also signals the latest Freddie Mac effort to expand homeownership opportunities in the Long Island area. Over the past five years, Freddie Mac has purchased nearly $25 billion worth of mortgages in the Long Island area, financing more than 140,769 mortgages.

Mortgages Requiring Only $500 in Borrower Cash

To boost affordable mortgage financing opportunities, Freddie Mac intends to invest in innovative mortgage products, including it's Community Gold^® mortgage, that offers flexible underwriting, low-cash closing options, and downpayments that require as little as $500 from the borrower's own resources. For individuals strapped for downpayment and closing cost funds, HSBC is also offering $3,500 towards a borrower's closing costs for a Freddie Mac Community Gold^® mortgage.

By purchasing affordable mortgages originated by HSBC Mortgage Corporation (USA), Freddie Mac will ensure a steady supply of mortgage financing for more Long Island homebuyers.

HSBC Mortgage Corporation (USA) is also offering its own CommunityWorks^® mortgage that allows for a discounted interest rate, expanded qualifying ratios, and liberal credit criteria designed to assist families purchasing either a one or two-unit property. HSBC will also offer Freddie Mac's Affordable Merit Rate product that permits a one-time mortgage rate reduction for borrowers who make mortgage payments in a timely manner.

"As an organization committed to the Long Island and to making homeownership affordable, HSBC Mortgage Corporation (USA) is pleased to introduce this program which we feel will meet the needs of so many of our neighbors," said David J. Hunter, president of the mortgage corporation.

Reaching Out To Low & Moderate-income Latino Families

In order to help more Latino households become homeowners, CDCLI is launching CreditSmart^® Español, Freddie Mac's trademarked bilingual financial literacy curriculum that was developed with HACU and six other national Hispanic organizations to help narrow the homeownership gap for Latino families. CreditSmart Español consists of 11 separate modules that teach families how to build stronger credit, make wise financial decisions, and prepare for the responsibilities of homeownership.

The Community Development Corporation of Long Island has the prime responsibility for implementing the MI PRIMERA CASA initiative on Long Island. They will launch an information awareness campaign about the new initiative and provide borrower counseling and homebuyer education to prepare residents for the responsibilities of homeownership. "The Community Development Corporation of Long Island is pleased to partner with HSBC and participate in their joint effort with Freddie Mac to make homeownership an attainable reality on Long Island," said Bill Klatsky, President of Community Development Corporation of Long Island.

Latino Long Island residents who want to learn more about MI PRIMERA CASA should call Community Development Corporation of Long Island NeighborWorks^® HomeOwnership Center at 516-867-7727 or visit the website at www.cdcli.org to learn about upcoming information sessions.

Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds to mortgage lenders. By supplying lenders with the money to make mortgages and packaging the mortgages into marketable securities, Freddie Mac sustains a stable mortgage credit system and reduces the mortgage rates paid by homebuyers. Over the years, Freddie Mac has opened the doors for one in six homebuyers in America and two million renters.

HSBC Mortgage Corporation (USA), a wholly owned subsidiary of HSBC Bank USA, National Association is a member of the HSBC Group PLC, which is one of the largest banking and financial service organizations in the world. The organization is the 17th largest in the nation servicing over 330,000 mortgages in excess of $52 billion. HSBC Mortgage Corporation (USA), an equal housing lender, conducts business in 48 states and has 30 offices in eight states. More information on HSBC can be found on the company's web site located at us.hsbc.com.

Community Development Corporation of Long Island is a not for profit whose mission is to support individuals, families, small businesses, and neighborhoods of Long Island to build and retain assets and wealth. Working with a diverse client base, CDC helps people to achieve self-sufficiency and success in the economic mainstream of society. Prospective first time home-buyers are assisted from CDC¹s two NeighborWorks Homeownership Centers, located in Freeport and Centereach. For more information on CDC call 631-471-1215 or visit www.cdcli.org.

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