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> **FOR IMMEDIATE RELEASE**

Contact: Tammi Schone, Public Affairs Specialist Nichola K. Schissel,
VP/Communications

Phone: (605) 352-1102 (office) (515) 281-1124

E-mail: <tammi.schone@sd.usda.gov> <nschissel@fhlbdm.com>

**USDA RURAL DEVELOPMENT PARTNERS WITH FEDERAL HOME LOAN BANK OF DES
MOINES TO OFFER GUARANTEED RURAL HOUSING LOANS**

**DES MOINES, Iowa** -- March 27, 2007 -- USDA Rural Development and the
Federal Home Loan Bank (FHLB) of Des Moines today announced a
partnership to benefit community bankers and rural home buyers in South
Dakota. As a part of its Mortgage Partnership Finance® program, FHLB Des
Moines will now purchase Rural Development's Single Family Housing
Guaranteed Loan Program loans from its qualifying members to help
finance housing opportunities for rural residents.

In South Dakota, commercial banks, saving institutions, credit unions
and insurance companies who are members of FHLB of Des Moines will have
an added market for their loans by offering 100 percent financing to
limited-income families in rural communities for homeownership. FHLB of
Des Moines has more than 1,200 members in Iowa, Minnesota, Missouri,
North Dakota and South Dakota.

"Homeownership stabilizes neighborhoods, helps create strong communities
and remains a central part of the American Dream," said Michael V.
Jaspers, USDA Rural Development State Director in South Dakota. "We're
extremely excited to partner with the Federal Home Loan Bank of Des
Moines and its members to help rural residents become homeowners."

USDA Rural Development's Guaranteed Loan Program helps low- and
moderate-income individuals get the best possible financing package when
buying a home without a large down payment. The program is administrated
by a local lender who takes the application, processes it and determines
the acceptability of the home to be financed.

"FHLB Des Moines is very excited about this innovative partnership,"
said Michael L. Wilson, Chief Business Officer of FHLB. "Our community
financial institution members are instrumental in providing housing in
rural areas. Being able to buy members' USDA Single Family Housing
Guaranteed loans gives us an additional resource to support housing
finance in South Dakota."

\-- More \--

**USDA Rural Development Partners with Federal Home Loan Bank of Des
Moines ... -- page 2**

The Federal Home Loan Bank of Des Moines is a wholesale cooperative bank
that provides low-cost, short- and long-term funding and community
lending. The Bank is wholly owned by its

members and receives no taxpayer funding. FHLB Des Moines also supports
housing through its Affordable Housing Programs which have awarded \$124
million through its community bank members since 1990.

The policy to purchase USDA Rural Development Single Family Housing
Guaranteed loans will apply to Des Moines Bank members that are
qualified Participating Financial Institutions in the Mortgage
Partnership Finance program in Iowa, Minnesota, Missouri, North Dakota
and South Dakota.

Last year USDA Rural Development provided nearly \$105 million in
housing assistance to rural South Dakotans living in communities of less
than 20,000 residents. Rural Development helped 1,157 South Dakota
families in becoming homeowners in 2006.

Rural Development has both guaranteed and direct homeownership loans
that are designed to give low-income families access to affordable,
decent, safe and sanitary housing opportunities.

In addition to helping with homeownership, loans and grants are
available to help qualifying

families and the elderly make needed house repairs so that they can
remain in their own home.

"While rural development can be accomplished in so many different ways,
at its foundation is a community's ability to provide its residents with
decent, safe and affordable housing," Jaspers said. "Helping provide
quality housing has been a central priority of Rural Development for
many years and is another example of how this agency strives to increase
the quality of life for all rural Americans."

Other Rural Development programs provide loans and guaranteed loans and
grants to help communities purchase or build essential community
facilities and services, water and sewer development and business and
industry programs.

**Contact USDA Rural Development**

For more information about this or other Rural Development housing
programs, please call 605-352-1100, visit
[www.rurdev.usda.gov/sd](http://www.rurdev.usda.gov/sd), or stop by one
of the USDA Rural Development office locations in South Dakota.

USDA Rural Development has 9 offices in South Dakota serving South
Dakota residents living in rural communities. Office locations include a
State Office in Huron, along with Area Offices in Aberdeen, Huron,
Mitchell, Pierre, Rapid City, Sioux Falls, Sturgis, Watertown, and
Yankton.

USDA Rural Development's mission is to deliver programs in a way that
will support increasing economic opportunity and improve the quality of
life of rural residents. As a venture capital entity, Rural Development
provides equity and technical assistance to finance and foster growth in
homeownership, business development, and critical community and
technology infrastructure.

**-- USDA --**