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HPA: Frequently Asked Questions
Who may borrow HPA funds? Only members of the Bank may borrow HPA funds. Top
How may HPA funds be used? HPA funds may be used to modify or refinance mortgage loans for low- and moderate-income homeowners who may be at risk of losing their primary residence because of delinquency or default on their mortgage loans. Top
How long does it take to receive HPA funding? Once the HPA application is complete, the length of time required to fund a HPA advance depends on several variables, including the complexity of the advance. However, same-day funding is sometimes available. Top
Can HPA be used in tandem with the Homeownership Preservation Subsidy program? Yes, HPA can be used with the Homeownership Preservation Subsidy (HPS) program, which is expected to be available in April 2008. Top
Why should a member use HPA funds instead of the regular advances available at the Bank? The interest rate on HPA is generally priced lower than rates for the Bank’s regular advance programs. Top
Is it required that the rates on the refinanced or modified mortgage loans be the same or less than the rate on the HPA credit? No. However, members are encouraged to pass through the favorable price and terms of HPA credit to borrowers. Top
Must the term of the HPA credit match the terms of the refinanced or modified mortgage loans? No. Top
If the refinanced or modified mortgage loans prepay, must the member prepay the HPA credit? No. Top
If HPA, or other Community Investment Cash Advance (CICA) credit, is drawn down and then repaid within a calendar year, is the member's availability for CICA credit replenished by the amount of the repaid advance? No. Each advance drawn down is counted against the member's limit for that year. Top
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