Citizens Bank Opens Doors to Home Buyers; New Mortgage Program Helps Clients Achieve Dream of Owning A Home.

Business Editors

FLINT, Mich.--(BUSINESS WIRE)--Feb. 17, 2000

Citizens Banking Corporation (Nasdaq:CBCF) -- the third largest Michigan-based bank holding company and parent company of Citizens Bank -- has launched a new mortgage program for home buyers.

Called &uot;Open Door&uot; Mortgage, the new program provides clients with an opportunity for comfortable entry into home ownership. &uot;Open Door&uot; is for owner-occupied purchases and is a 30-year, fixed-rate mortgage. The program is specifically designed to provide primarily first-time homebuyers and low-to-moderate income residents, the opportunity to become homeowners. &uot;Open Door&uot; is targeted for individuals whose income is 80 percent or below the median income per county.

According to Leo Blanchard, Affordable Housing Manager at Citizens Bank, qualifying for the program is not as difficult as most people might expect. &uot;`Open Door' serves as an opportunity for those who believe they don't qualify for a mortgage,&uot; he said. &uot;The program provides flexibility in underwriting with an option of multiple sources of down payment, and provides an excellent opportunity for those uncertain of their eligibility for other mortgage options.&uot;

To qualify, buyers need:

-- A three percent down payment;

-- Completion of a pre-purchase mortgage counseling program (excluding home
study programs); and

-- The ability to cover closing costs, which may be paid with:

-- Their own funds;

-- A gift from a relative;

-- A secured loan from a non-profit or public entity (such as a

church); or

-- A government HOME grant.

According to Blanchard, Bank representatives look for credit history that is favorable for, in most cases, six months, compared to an industry average of 12 months or more.

&uot;At Citizens Bank, representatives will sit down with prospective home buyers and help them gather information that will determine just how much home they can afford. Citizens Bank is fully committed to looking for opportunities to make home financing as easy as possible. The `Open Door' Mortgage program is a prime example of this commitment. Citizens Bank's vision is to become the preeminent provider of financial services in each market its serves by building long-term relationships with its clients and helping them achieve their financial goals.&uot;

Citizens Banking Corporation (Nasdaq:CBCF) is a diversified financial services company providing a full range of commercial, consumer, mortgage banking, trust, and financial planning services to a broad client base. Citizens has nearly $8 billion in assets and operates more than 220 banking offices in Michigan, Wisconsin, Iowa, Minnesota, and suburban Chicago, Illinois. Total trust assets are over $3.8 billion. For more information about Citizens Bank, visit www.cbClientsFirst.com.