AmSouth Bank: a good incentive to be loyal
An innovative way of reducing staff turnover, while at the same time really helping employees cope with rising house prices, has been adopted by a Birmingham, Alabama-based bank. The 600-branch AmSouth Bank is offering employees who have worked for them in good standing for one year, a US$5,000 interest-free second mortgage. It doesn't end there: each year $1,000 of the loan is forgiven. In addition, because the amount forgiven is considered compensation, AmSouth will increase the employee's income to cover the amount of taxes incurred.
Discounts on fees To qualify for the loan, employees must have been approved for a mortgage on a primary residence by AmSouth Mortgage Banking (normal credit underwriting guidelines will apply) and first-time homebuyers must complete a home ownership counselling course. The income used to qualify for the mortgage must be $50,000 or less. The programme also offers discounts on mortgage fees and free home ownership counselling. The $5,000 loan can be used toward a down payment, for closing costs, to reduce the interest rate or to cover other mortgage-related expenses.
"This programme is a way to reward our employees for their loyalty and continuing commitment to AmSouth," said Dave Edmonds, the head of Human Resources at AmSouth. "Home ownership is a dream we all share, and we hope this helps put that dream within reach for many of our employees."
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