Bank Offers Homebuyer Aid to Union Members

Amalgamated Bank of Chicago has joined forces with the Illinois Housing Development Authority and two mortgage service providers to offer first-time homebuyer assistance to qualified applicants in Illinois through its Union Advantage program."The IHDA program offers a 30- year fixed rate mortgage loan at below-market rates as well as grant money to cover the closing and downpayment costs of qualified applicants," said David Knopp, senior executive vice president of Amalgamated. Partnering with Amalgamated and the IHDA in the venture are Community Banc Mortgage, a mortgage processing, underwriting, and closing services company based in Aurora, Ill., and United Guaranty Residential Insurance Co., a provider of private mortgage insurance. Under the agreement, CBM will sell the Amalgamated loans to IHDA. Interest rates are typically 1/4% to 1/2% lower than market rates, with relaxed underwriting guidelines, the bank said.