February 1, 2006

Announcement

This is to advise you that the Authority is accepting reservations for a new statewide I-Loan Certificate (MCC) program, effective 8:30 am, February 3, 2006. The program will appear on the MITAS reservation screen as “MCC 17A”. There are seven local communities and a statewide pool as well. As in the past, the statewide pool can be used anywhere in the state, EXCEPT, within the City of Chicago.

One new important feature is that the credit rate has been reduced to 20%, unlike prior programs that used a 25% credit rate. We made this change after reviewing the demographics of the prior program and finding that many of the MCC’s issued would exceed the maximum $2,000 limit for several years. This change will stretch the amount of credits available.

We prefer that the MCC be used in conjunction with new loan applications not current pipeline loans. Any question regarding the new program may be directed to your assigned compliance officer.

Sincerely,

Roger G. Morsch, Director

Single Family Originations