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CHEMICAL BANKING ANNOUNCES FORMATION OF AFFORDABLE HOUSING UNIT

 CHEMICAL BANKING ANNOUNCES FORMATION OF AFFORDABLE HOUSING UNIT
 NEW YORK, Feb. 10 /PRNewswire/ -- Chemical Banking Corporation (NYSE: CHL) today announced the formation of an Affordable Housing Unit to focus on the home credit needs of lower income potential homebuyers. It also announced the introduction of the new group's first product, the Neighborhood Homebuyers Mortgage, designed for creditworthy borrowers who might otherwise have trouble qualifying for a traditional mortgage.
 The new department and its products and programs are a part of the five point comprehensive program that Chemical had announced earlier in response to the Home Mortgage Disclosure Act report findings in October 1991.
 The Affordable Housing Unit, which is a part of the Residential Mortgage Division, will assist lower income applicants in purchasing a home by:
 -- creating new products and programs such as the Neighborhood Homebuyers Mortgage.
 -- overseeing selected conventional first mortgage declines to see if the applicants would qualify for a mortgage under the Neighborhood Homebuyers Mortgage or other mortgage programs.
 -- administering a special "flexible lending pool" of $10 million to hold mortgages on the books of the bank that do not meet secondary market requirements. By using this pool, exceptions may be made to applicants' debt to income ratios, employment history requirements, source of income definitions and other criteria.
 The Neighborhood Homebuyers Mortgage was designed to specifically fit the needs of low and moderate income borrowers by offering favorable terms and competitive rates, including:
 -- reduced application fee of $150
 -- points reduced from 2.00 to 1.00
 -- debt to income ratios of 33/38, vs. the standard 28/33 (an applicant's mortgage payments, insurance and real estate taxes cannot exceed 33 percent of his gross income and all other debt plus the mortgage payments cannot exceed 38 percent)
 -- Minimum downpayment of 5 percent
 To be eligible for the Neighborhood Homeowners Mortgage, applicants must be first-time homebuyers and have an annual household income at or below $60,750.
 "The creation of the Affordable Housing Unit and the Neighborhood Homebuyers Mortgage is the first of many steps for the new Chemical Bank in meeting the needs of low income homebuyers. We have several additional products which we hope to introduce in the near future," said Michael Burke, manager of the Affordable Housing Unit. "We are very committed to serving these customers and feel that by offering more flexible products our mortgage approval rates will increase and opportunities for home ownership will expand."
 -0- 2/10/92
 /CONTACT: Judy Walsh of Chemical Banking, 212-270-2914/
 (CHL) CO: Chemical Banking Corporation ST: New York IN: FIN SU: PDT


SH-KD -- NY057 -- 8322 02/10/92 13:14 EST
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Date:Feb 10, 1992
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