Federal Home Loan Bank provides mortgage relief

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A locally based financial institution is hoping to slow a high rate of foreclosures by lending up to $50 million to Indiana banks at attractive rates.

The Federal Home Loan Bank of Indianapolis, part of a network of government-sponsored banks that lend to member institutions, will split $100 million between Indiana and Michigan in a program called HomeRetain.

The funds will be used to modify or refinance mortgages in an effort to forestall defaults.

“We’re hopeful our members will be able to keep more people in their homes and prevent foreclosures,” said Milton J. Miller, the bank’s CEO.

Member institutions that will have access to the funds include First Indiana, LaSalle, Irwin Union, National Bank of Indianapolis and Teachers Credit Union.

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