Flagstar Bank To Invest $10 Million Into Pontiac Redevelopment

PONTIAC (WWJ) -- A multi-million dollar investment has been announced to help boost development in Pontiac.

Troy-based Flagstar bank announced Monday that it will front $10 million over five years as a part an effort to revitalize the area. Flagstar CEO Sandro DiNello said $2.5 million will also go to support small businesses, startups and various economic growth opportunities.

"$5 million dedicated to home ownership, in particular it has a lot of initiatives underneath it, but in particular to help veterans get financing for homes here in the city of Pontiac," DiNello said. "We have 3,000 veterans here in the city that can benefit from this -- down payment assistance programs, things of that nature."

Pontiac mayor Deirdre Waterman said that the bank's investment toward mortgage programs -- including customized loans -- will help change the fact that between 65 and 70 percent of city residents rent their homes.

"It's a company that cares deeply about our state, deeply about the city of Pontiac, has thought through how you can make the best impact and is willing to put their money and their effort behind it for the people of Pontiac," Sen. Gary Peters -- a Pontiac native -- said at the announcement at the Wessen Lawn Tennis Club on Monday.

"Sometimes banks get in front of people and talk about big money that they're committing to the community and none of it ever gets spent because nobody ever executes," DiNello said. "We're going to execute here, I guarantee you of that."

Flagstar has nearly 100 branches in Michigan as well as retail mortgage locations throughout the country.