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Homeownership Preservation Advance (HPA)

HPA credit 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 loan.


Key Advantages

Key Features

Credit Products Available

Interest Rate/Price

The interest rate on HPA credit will vary according to credit product and maturity. Interest rates on HPA credit are generally lower than the rates offered under the Bank's regular advance programs. Members are encouraged to pass through the favorable rates on HPA credit to borrowers.

If the Bank determines that a participating member has not complied with the terms and conditions of the program or has not provided acceptable documentation to verify compliance, the Bank may change the interest rate on each outstanding HPA borrowing, retroactive to its funding date, to the rate in effect on the funding date for a comparable advance under the Bank's regular advance programs.

Conditions of Use

HPA credit may be used to fund the refinancing or modification of mortgage loans, each of which must meet all of the following conditions of use:

HPA credit may be used for eligible financing originated up to 3 months before the HPA funding date, or up to 12 months after the HPA funding date (but before the advance maturity date, if the advance has a term of less than 1 year).

Documentation Requirements

To request HPA credit, the member must complete the Homeownership Preservation Advance (HPA) Credit Application. Within 12 months of the HPA funding date or, if the advance has a term of less than 1 year, prior to the HPA maturity date, the member must demonstrate its HPA-qualifying lending activity in the full amount of the HPA credit. To do so, the member must provide the Bank with a certification supported by acceptable documentation demonstrating that the activity conformed to the conditions of use described above and that the qualifying loans were originated no more than 3 months before the HPA funding date and no later than 12 months following the HPA funding date or, if the advance has a term of less than 1 year, prior to the HPA maturity date. If the eligible loans were made up to 3 months prior to the submission of the HPA application, the certifications and accompanying documentation may be submitted with the application.

Limit Per Member

The Bank has established an aggregate limit on the amount of advances that an individual member may borrow each year under the Bank's Community Investment Cash Advance (CICA) credit programs: Advances for Community Enterprise (ACE), Community Investment Program (CIP), and HPA. The member may borrow up to the maximum amount under just one or any combination of programs until it reaches the aggregate limit.

The maximum amount of CICA credit that an individual member may borrow in aggregate each year will depend on the member's total assets as of the previous yearend, as follows:

Total Assets Annual CICA Credit Limit
Up to $20 million $1 million
$20 million to $4 billion 5% of total assets as of previous yearend
$4 billion and over $200 million

Total Funding Limit

The Bank may limit the total amount of HPA credit to be made available to all members in a calendar year on a first-come, first-served basis. Once the limit is reached, a member may not obtain additional HPA credit even if the member has not reached its individual limit.


All HPA borrowings must be fully collateralized. HPA-qualifying loans may or may not be eligible to be pledged to the Bank as collateral. Please refer to the Bank's Collateral Guide for a detailed description of the Bank's collateral eligibility requirements.

Other Terms and Conditions

Other terms and conditions for HPA credit are the same as for other Bank advances.


Last Modified: August 2011