Charter One Bank member banking institution offers $15 million for Katrina housing assistance

(AP) CINCINNATI - The Federal Home Loan Bank of Cincinnati said Wednesday it will provide $15 million to help meet housing needs of Hurricane Katrina evacuees in Kentucky, Ohio and Tennessee.

Thousands of residents from the devastated Gulf Coast areas have relocated in those states, some settling temporarily, others permanently.

The fund being set up will provide grants over a two-year period for acquisition, rehabilitation or new construction of rental and owner-occupied housing.

The bank says housing organizations and social service agencies will partner with its member institutions to apply for Katrina grants.

The voluntary $15 million Katrina housing assistance fund was approved by the board of directors of the regional bank, which provides financial services for residential housing and economic development to 740 financial institutions in the three states.

"The mission of the FHL Bank is to support the availability and affordability of housing through our member banking institutions," said Charles "Bud" Koch, board chairman and also chairman of Charter One Bank N.A. of Cleveland.

Koch said in a statement that the fund should "make a real difference in the lives of thousands of displaced residents in critical need of permanent housing."

The Federal Home Loan Bank system includes 12 district banks, owned by the stockholders of its member institutions.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.