Mary Taylor Sales Manager/Sr. Loan Officer Golf Savings Bank Phone: (503) 701-2269 Fax: 1-888-287-1675 metaylor@golfsavingsbank.com

FHA Loans Facilitate Home Ownership The Federal Housing Administration (FHA) program first began in 1934 in an effort to encourage home ownership despite the difficult economic times of the era. The program enables consumers who may not qualify for a standard loan to obtain the financing they need to purchase a home without income limitations. FHA loans differ from typical loans in that they are insured by the Federal Housing Administration, which is a part of the Department of Housing and Urban Development (HUD). Because this insurance reduces the lender's risk on the loan, lenders have greater flexibility with regard to approving loans. For example, FHA loans are not credit-score driven, so a client may be able to obtain a loan despite having had credit problems or even a bankruptcy in the past. Alternatively, if a consumer does not have a traditional credit history, it is still possible to obtain financing by documenting payment histories on items such as rent and utilities. FHA loans also provide added flexibility when it comes to closing costs and the down payment. Many of the closing costs can be incorporated into the loan, and a down payment of less than 3.5% of the purchase price is required. The down payment may be obtained as a gift from a family member or through a down-payment assistance program. FHA loans are processed just like any other loan, and they provide a wonderful opportunity for consumers who are seeking to achieve home ownership!

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Friday, 16th October, 2009:

Term Conforming APR Payment per $1,000 Jumbo APR Payment per $1,000 Conv 30 Yr 360 5.00% 5.131% $5.37 % 0.000% $0.00 Conv 15 Yr 360 4.375% 4.501% $4.99 % 0.000% $0.00 Conv 5/1 Arm 180 3.625% 3.843% $7.21 % 0.000% $0.00 FHA/VA 30 Yr 360 5.125% 5.257% $5.44 % 0.000% $0.00 FHA 3/1 Arm 360 3.875% 3.998% $4.70 % 0.000% $0.00

*Rates are subject to change due to market fluctuations and borrower's eligibility.

All loans subject to credit approval and property appraisal. Programs, rates, and terms subject to change without notice. For ARM loans, rate may increase after settlement. Prequalification is not a commitment to lend, a condition of loan approval, or an application for credit. Pre-approvals will result in a loan decision subject to conditions. Consult a tax advisor regarding the deductibility of interest.--

  

News on Sterling Savings - in response from the Media indicating "Sterling Savings must raise $300 million by Dec 15^th"

 

HOW GOLF IS AFFECTED? 

• Except for reputation concerns, Golf is not affected. 
• Golf is a separately chartered bank. We are separately regulated by the FDIC
• Golf is not under a Cease and Desist (C&D).  Golf does not expect a C & D.
• Golf will not be issued a C & D just because Sterling has one
• It is business as usual for us  

 

HOW STERLING SAVINGS BANK IS AFFECTED? 

• The C & D is a formal agreement between the FDIC and Sterling of the efforts Sterling is taking to make improvements at the bank.  IT DOES NOT MEAN THEY ARE CLOSINGS, BEING SOLD, ETC.
• It has become a fairly common practice for C & D's to be issued in today's banking environment
• They do not have any plans of Staff / Branch cuts due to the C & D
• They are open for business as usual
• They are adequately capitalized 

How does the cease and desist order affect employees and customers of Golf Savings Bank?	•·         Golf Savings Bank does not have a cease and desist order. •·         Golf Savings Bank's employees and customers are not affected by Sterling's formal agreement with the FDIC. •·         The cease and desist order is only with Sterling Savings Bank.
What is a cease and desist (C&D) order?	•·         A cease and desist order in this context is a formal agreement between Sterling Savings Bank and the FDIC. •·         The agreement outlines items for Sterling to address and/or resolve, including the following areas: •o        Asset quality •o        Capital adequacy •o        Liquidity •·         It is a corrective plan designed to strengthen and improve the bank's financial condition and operations, and largely reflects the strategic initiatives already put into action both prior to and since the agreement. •·         Sterling has made substantial progress in addressing all of the action items in this agreement.
Since Sterling Savings Bank has a C&D, does it mean that Golf Savings Bank is next?	•·         The simple answer is no. Golf Savings Bank is a separately-chartered institution that is independently regulated by the FDIC and the State of Washington. The order for Sterling has no financial impact on Golf Savings Bank.
What is the health of Golf Savings Bank?	•·         As of June 30, 2009 (last disclosure period) Golf Savings Bank outperformed 99 percent of all banks in our peer group for net income. We have had consistent quarterly positive core earnings. •·         Golf Savings Bank outperforms 72 percent of our peer group for capital ratios. •·         Golf Savings Bank outperforms 98 percent of all peer banks in retained earnings. •·         Golf Savings Bank continues to grow with the ultimate goals of being a top 3 originator of high-quality mortgage loans in all areas we serve. •·         Golf Savings Bank has the highest level of capital in our 28 years of existence.
Golf Savings Bank and Sterling Savings Bank share the same holding company - Sterling Financial Corporation (SFC). How might this affect Golf?	•·         Golf Savings bank is not under a cease and desist order. •·         SFC provides managerial and accounting assistance. •·         Golf Savings Bank manages to the "new capital standards established by the FDIC.
How will Sterling's C&D affect Golf's employees?	•·         The C&D at Sterling will not have any effect on Golf employees. It is business as usual. •·         For that matter, Sterling will continue to operate as it does today: making loans and taking deposits. Sterling has areas to work on and we will support them any way we can.
What do we tell our deposit and mortgage customers?	•·         Sterling's C&D does not affect Golf Savings Bank; it is business at usual. •·         Sterling and Golf are both FDIC-insured institutions. •·         Golf Savings Bank is one of the strongest capitalized banks in Washington State. •·         Sterling continues to grow deposits as they work through their C&D.
Will Golf Savings Bank be sold?	•·         Management does not intend to sell Golf Savings Bank.