Rates and Important Info

Updated 06/07/2017

Employee Loans
In order to be eligible for an employee loan, an employee must be employed a minimum of 6 months and not on any type of probation.

In addition, an employee must work a minimum of 1,000 hours per year in order to qualify for the employee loan program (regularly scheduled 20 hours or more per week).

Board of Directors are not permitted to participate in the employee loan program under Regulation O.

First Mortgage Conventional Portfolio Loans

Closed at current market, 1-year ARM rate without prepayment penalty, with a 12% life cap.
Modified to reflect FFB annual cost of funds + 50 bp.
Reprices annually on 11/1 - Payment change 12/1 – FFB annual cost of funds calculated for 12 month period ending August 31st.
Available on Freddie/Fannie conforming loan balances for owner occupied primary residences only.
Becomes fully indexed, 1-year treasury ARM if the employee leaves FFB employment for any reason with the exception of retirement if the employee who retires has at least ten (10) years of service, and begin to draw their pension.
Normal FFB underwriting applied.
Normal closing costs paid by employee.
If the loan would ever become 60 days delinquent, the modification would be cancelled.
Payments must be made by ALP from a First Federal Bank checking account.
Cash out refinances will not be permitted.

Auto Loans

Closed at current market rate.
Modified to reflect FFB annual cost of funds + 150 bp.
Reprices annually on 11/1 - Payment change 12/1 – FFB annual cost of funds calculated for 12 month period ending August 31st.
Adjusts to original note rate if the employee leaves FFB employment for any reason with the exception of retirement if the employee who retires has at least ten (10) years of service, and begin to draw their pension.
Normal FFB underwriting applied.
If the loan would ever become 60 days delinquent, the modification would be cancelled.
Payments must be made by ALP from a First Federal Bank checking account.
Cash out refinances will not be permitted.

Fixed Rate Home Improvement Loans

Closed at current market rate.
Modified to reflect FFB annual cost of funds + 150 bp.
On loans over 80% combined LTV, modified to reflect FFB cost of funds + 200 bp to cover PMI.
Reprices annually on 11/1 - Payment change 12/1 – FFB annual cost of funds calculated for 12 month period ending August 31st, with a 12% life cap.
Adjusts to original note rate if employee leaves FFB employment for any reason with the exception of retirement if the employee who retires has at least ten (10) years of service, and begin to draw their pension.
Normal FFB underwriting applied.
For primary residence only.
Combined first and second liens not to exceed Freddie/Fannie conforming loan limits.
If the loan would ever become 60 days delinquent, the modification would be cancelled.
Equity access line of credit loans are not eligible.
Payments must be made by ALP from a First Federal Bank checking account.

Employee Computer Loans
First Federal Bank of Kansas CIty will finance an eligible employee’s purchase of a personal computer system
(including hardware, software, and printer) for home use. Digital Cameras will not be included in the
program, and scanners will only be allowed if they are built into the printer.

In order to be eligible, an employee must be classified as Regular Full-time, Regular Part-time, or
Commissioned, been employed a minimum of 6 months, work a minimum of 1,000 hours per year
(regularly scheduled 20 hours or more per week), and not be on any type of formal disciplinary action.

Terms of the loan are as follows:

Zero Percent Interest
Loan cannot exceed $2,000
Repayment terms consist of a minimum of 3 up to a maximum of 24 months
Payroll deduction

To apply, an employee must complete a request form that describes the equipment being purchased and
the terms of the repayment. A cost estimate must also be attached. The check will be made payable to
the retail store and you will need to provide a copy of the receipt following your purchase. If you are
requesting reimbursement, you will need to attach a copy of the store receipt itemizing the purchase to the
completed request form. You may print a request form under “Employee Loan Rates” on our Intranet site
or contact our Loan Servicing Officer.

The employee is responsible for ordering, paying, receiving, and setting up the equipment as well as
handling any service issues directly with the vendor.

The participating employee will be asked to sign a short promissory note that evidences the employee’s
obligation to repay the loan and gives First Federal a security interest in the equipment purchased. If the
employee’s employment is terminated for any reason, the promissory note will also grant First Federal the
right to accelerate monies due and withhold the total amount due from the employee’s final paycheck
and/or final distribution of accrued benefits (i.e. accrued vacation pay, etc.).

This plan is offered solely for the benefit and use of the First Federal Bank, F.S.B. employees and is
limited to one loan per employee at any time.

Management, with sole discretion, reserves the right to amend or terminate this policy without further
notice. In the event of plan termination, First Federal Bank will honor financing arrangements entered
into prior to plan termination.

If the computer is to be used in any way to conduct First Federal business, all of First Federal Bank’s
computer security policies must be adhered to.

Please direct any questions or comments to the Loan Servicing Officer or Human Resources.

Employee Rates

Important Employee Loan Information