Bank of America Partners With Northern Circle Indian Housing Authority to Provide Affordable Homeownership to Native Americans.

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 4, 1999--BankAmerica Mortgage and Northern Circle Indian Housing Authority (NCIHA) today launched a low-income mortgage initiative designed to provide opportunities for Northern California Native American tribes to buy their own homes. The initiative was established to provide affordable housing options to members to two Sonoma County tribes -- Dry Creek and Stewarts Point.

BankAmerica Mortgage will be teaming up with NCIHA's Alternative Finance Program to originate affordable 30-year fixed rate mortgages using the Neighborhood Advantage Credit Flex home mortgage product. This endeavor focuses on off-reservation homeownership because neither the Dry Creek nor Stewart Point tribes have developable reservation property.

"We are very excited to be part of this innovative initiative for the Native American population," said Andy Woodward, president of Bank of America's mortgage services. "Our community lending presence is deeply rooted in Northern California and we are proud to be partnering with NCIHA to provide homeownership opportunities to members of the Dry Creek and Stewarts Point tribes."

This initiative is part of a larger global community reinvestment commitment made by Bank of America totaling $350 billion in the next ten years -- $115 billion of which is designated for affordable housing.

"We are very pleased to working with Bank of America to provide mortgage financing to members of our community," said Darlene Tooley, Executive Director of Northern Circle Indian Housing Authority. "The opportunity for homeownership is important to the Native American community, and access to private market mortgage financing will make a lot of dreams come true for the members of Stewarts Point and Dry Creek tribes."

NCIHA has contracted with Consumer Credit Counseling Service of America (CCCS) to provide personal finance counseling -- including credit report and analysis, debt reduction programs, and homeownership education to ensure on-going success in homeownership for this community.

In order to qualify for the Northern Circle program, a participant's income cannot exceed 80% of the median income range for Sonoma County. (For example, 80% of the median income range is $43,440 for a family of four). The applicant must also demonstrate income stability. Bank of America's Neighborhood Advantage home loan was designed for people who do not have a traditional credit history or an established credit score. As an alternative, prospective borrowers can provide proof that their rent has been paid on time for at least 12 months. Another factor that can be used in assessing the applicant's creditworthiness is proof that utilities have been paid in a timely manner.

In this special effort to provide affordable homeownership to Native Americans, no down payment is required from the borrower. Seventy five percent of the loan amount will be financed using the Neighborhood Advantage Credit Flex home loan. The remaining 25% will come from NCIHA's Alternative Finance Second Program. The 75% loan to value insures that there will be no need for mortgage insurance resulting in a lower overall mortgage payment for the borrower.

Eligibility and guidelines for the applicants also include: -0-

--   Verifiable tribal membership
--   Maximum purchase price of $170,360
--   Participation in a First Time Homebuyer Education Program and
     Consumer Credit Counseling Service's credit analysis and personal
     finance program

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NCIHA can contribute up to $75,000 or 50% of purchase price of the home through its Alternative Finance Second Program. In addition NCIHA will pay closing costs up to $5,000.

BankAmerica Mortgage is a subsidiary of BankAmerica Corporation. BankAmerica Corporation with $572 billion dollars in assets, is the largest bank in the U.S., with full-service operations in 22 states and the District of Columbia. BankAmerica Corporation provides financial products and services to 30 million households and two million businesses, as well as providing international corporate financial services for business transactions in 290 countries. BankAmerica Corporation (NYSE:BAC) stock is listed on the New York, Pacific, London and Tokyo stock exchanges.

Northern Circle Indian Housing Authority is a tribal government agency established in 1980 to access, construct and manage housing for thirteen member tribes. NCIHA has ranked within the top 10% of Indian Housing Authorities in the nation and received a 1998 Sustained Excellence Award for all program management from the U.S. Department of Housing and Urban Development.