Hibernia and NOFD Create Housing Initiative Designed to Make Home-Buying Easier for New Orleans Firefighters.

Business Editors

NEW ORLEANS--(BUSINESS WIRE)--Jan. 29, 2004

Special program helps NOFD employees achieve the American dream of

homeownership by bringing resources under one umbrella

The New Orleans Fire Department (NOFD), the city of New Orleans and Hibernia National Bank (NYSE:HIB) today announced a new initiative that streamlines the home-buying process, making it easier for the city's 700 firefighters to buy a new home or refinance an existing mortgage in Orleans Parish.

"Operation Welcome Home" removes the frustration often associated with buying a house or refinancing a mortgage by providing a single point of contact for firefighters and other NOFD employees. The initiative guides them to under-utilized city resources that provide homeownership incentives and special programs designed by Hibernia, the state's leading mortgage lender, to specifically meet NOFD employees' diverse needs.

"This truly is a program that our firefighters and NOFD employees deserve," said NOFD Superintendent Charles Parent in front of Firehouse #27 located at 2118 Elysian Fields. "It shows us that we have active partners in our community who are working with us to make our lives better, and in return, build a stronger and safer city. Today, we begin rolling out 'Operation Welcome Home' at each firehouse because we want everyone to use this valuable resource."

Employees ranging from chiefs to administrative assistants may receive from $2,000 to $29,000 in grants and loans through "Operation Welcome Home." They also can tap into a $7.5 billion mortgage lending program entitled "Home Grow," which was announced last week in Baton Rouge. "Home Grow" is a collaborative effort between Hibernia and Fannie Mae, the nation's largest source of financing for home mortgages, that will help approximately 75,000 residents in Louisiana, Texas and other parts of the country become homeowners. It also includes programs for firefighters and other civil servants.

The collaborative effort between NOFD, the city and Hibernia was inspired by "NOPD: Operation Welcome Home," which started in November 2003 as a way to help New Orleans police officers find affordable housing. Parent requested that "Operation Welcome Home" be tailored to meet the needs of NOFD's 800 employees. Hibernia plans to expand the program to other city departments.

"This program is another way to thank our firefighters, who risk their lives every day to save the lives and homes of Orleans Parish residents," said Willie Spears, president of Hibernia Community Development Corp. "Now it's time for us to help our firefighters achieve their dreams of homeownership and protect their most important financial asset. We're excited to be able to point them in the right direction no matter what their housing needs may be."

A full range of programs is available to suit employees' needs, whether purchasing a first home, buying a larger or smaller house, refinancing or renovating.

All city employees are required to live in Orleans Parish, so this initiative complements an existing law.

To begin the process, NOFD employees can call 533-5520. From that point, they will be directed to first-time home-buyers training and counseling or to Hibernia to apply. Hibernia will identify appropriate grants and mortgage programs.

Hibernia, a Forbes 500 company, has $18.6 billion in assets and 259 locations in 34 Louisiana parishes and 18 Texas counties. Hibernia Corp.'s common stock (HIB) is listed on the New York Stock Exchange.

                       "Operation Welcome Home"
                              Fact Sheet

        To begin the process, NOFD employees can call 533-5520.

-- Eligible first-time homebuyer can receive a maximum of $20,000

in "soft second" loan money, which will be forgiven after 10

years, and $2,000 in grant money from the city's Employee

Homeownership Assistance Program. If an employee's income

falls to 80% of the area's median income, the employee is

eligible to participate in the city's "soft second" program.

Even if employees are not first-time home buyers, "Operation

Welcome Home" can assist them with either financing a new home

or renovating their current residence.

-- In an effort to reinvigorate neighborhoods in need of more

homeowners, business investment and stability, "Operation

Welcome Home" includes two city programs that give incentives

to city employees who buy homes in blighted or targeted

neighborhoods. A $1,000 grant is available to employees who

purchase their primary residence in a targeted neighborhood.

These neighborhoods include: Algiers, Central City, Gert Town,

the lower 9th Ward, the Bienville Corridor, Treme and the 7th

Ward. Employees can receive an additional $1,000 for buying a

blighted property as their primary home. The program offers

below-market interest rates on interim construction on

blighted property when an employee is approved for a long-term

mortgage.

-- The Hibernia and Fannie Mae $7.5 billion "Home Grow"

affordable-housing initiative is a five-year commitment that

will help approximately 75,000 families in Louisiana, Texas

and other parts of the country become homeowners. The

initiative, which was announced last week in Baton Rouge,

targets first-time home-buyers, minority groups and immigrant

families as well as residents in under-served and rural

communities. It includes special mortgage programs for

firefighters, police officers, health-care workers and

teachers.

-- Along with the NOFD and Hibernia, several agencies are working

together to make "Operation Welcome Home" a success. They are:

The Finance Authority of New Orleans, which administers the city's employee assistance program and the soft-second grant programs can provide as much as $29,000 to qualified homebuyers. It is also setting aside $1 million of the upcoming bond issue to be used for "Operation Welcome Home."

The City of New Orleans Division of Housing and Neighborhood Development, which will provide each qualified, first-time home buyer with $2,000 through the city's Employee Homeownership Assistance Program toward the purchase of his or her primary residence.

Neighborhood Housing Services and Consumer Credit Counseling Services, which will provide discounted homeownership training and counseling to NOFD employees who participate in this program. This agency also will pre-screen and pre-qualify prospective borrowers to determine if they are ready for homeownership.