Flagstar Bank will invest $10 million over the next five years to aid in the development of Pontiac, Michigan, the bank announced late last week.
According to the bank, the investment includes $5 million earmarked to boost homeownership in Pontiac.
In a statement, the bank said that the new mortgage program, entitled “Flagstar's Pontiac home mortgage initiative,” will include a “customized home loan product” for Pontiac residents and veterans.
The bank’s investment will also include $2.5 million for small businesses, start-ups, business attraction, and economic growth in the city, as well as $1 million for “financial literacy and asset-building initiatives.”
The bank said that it will work closely with the Pontiac mayor's office to “craft its initiatives,” which includes loaning a Flagstar financial executive to the city to serve in an advisory capacity.
“Pontiac is in our backyard—10 minutes from our headquarters," said Sandro DiNello, president & CEO of Flagstar Bank.
“It's the county seat and an important city in an important county,” DiNello added. “Now we're signing on to make a significant, lasting economic impact on a city that already has great momentum on its side. We want to catch that momentum and carry it to the top.”
Sen. Gary Peters, D-Michigan, took part in Flagstar’s announcement, and celebrated the news.
“The City of Pontiac has made great strides to promote long-term economic growth, and partnerships with community institutions like Flagstar Bank can harness those efforts and bring even greater success,” Peters said. “I'm thrilled to help announce Flagstar Bank's vital investment in the City of Pontiac, which will help ensure residents have more opportunities to realize the American dream of homeownership, launch innovative small businesses, and build a community network to help Pontiac grow and thrive in the long run.”