Home Savings and Loan

What is the Home Savings and Loan Association?

• The Home Savings and Loan Association is a popular thrift, headquartered in Youngstown, Ohio. Owned by the United Community Financial Corporation, the Home Savings and Loan Association provides long-term amortized mortgages to potential home buyers.

• The Home Savings and Loan Association was founded in January of 1889 by James McKay. Since its establishment, the Home Savings and Loan Association has maintained a commitment to developing long-standing business relationships with potential home buyers and businesses by providing a full range of retail and commercial banking products.

• In 1998, the Home Savings and Loan Association underwent a mutual-to-stock conversion to form its holding company. This maneuver enabled the Home Savings and Loan Association to diversify its offerings to the public sector.

• The Home Savings and Loan Association currently operates with 38 full-service banking operations and six loan production branches throughout Ohio and western Pennsylvania. The Home Savings and Loan Association currently operates with a portfolio of roughly $2.3 billion assets and 600 employees.

What does the Home Savings and Loan Association offer?

• The primary purpose of the Home Savings and Loan Association is to offer mortgage loans on residential properties. The Home Savings and Loan Association currently serve as the primary source of financial assistance to the majority of homeowners in Ohio and western Pennsylvania. The most important characteristics of a the Home Savings and Loan Association are:

o The Home Savings and Loan Association is a subsidiary of the United community Financial Corporation—a holding corporation traded on the NASDAQo The Home Savings and Loan Association receives individual and private savings and then use these funds to make long-term amortized loans to home purchaserso The Home Savings and Loan Association offers loans for the construction, purchase, refinancing or repair homeo The Home Savings and Loan Association is both state and federally chartered

Mortgages offered by Savings and Loans:

• The earliest mortgages were not offered by investment banks or other financial institutions, but by insurance companies. The majority of these mortgages were offered as short-term financing (or interest-only loans), with some form of balloon payment due upon maturity. As such, a number of homeowners were in perpetual debt and forced to either habitually refinance or foreclose on their properties.

• As a result of the mass defaults, the United States Congress passed the Federal Home Loan Bank Act in 1932. This act, which was passed during the Great Depression, established the Federal Home Loan Bank and associated Federal Home Loan Bank Board to provide relief and assistance to other financial institutions to offer long term, amortized loans for home purchases. This legislation was passed to involve banks in the mortgage lending industry; this inclusion provided realistic mortgages to potential homebuyers.

• The passing of the Federal Home Loan Bank Act gave way to the savings and loans institution. Thousands of savings and loans associations sprang up throughout the United States because low-cost mortgages were made available through the Federal Home Loan Bank.