21.4.2004: Meldung: Fannie Mae Announces a Record Commitment
Joining the announcement were a myriad of state and local leaders and organizations, all active in the development and expansion of affordable homeownership opportunities across the state. In attendance were: Thomas Davlin, mayor of Springfield; representing Governor Rod Blagojevich, Kelly King Dibble, the executive director of the Illinois Housing Development Authority and the state""s highest ranking housing official; and representatives from the Springfield Housing Authority; LR Development Company; Apollo Housing Capital, LLC; the Springfield Center for Independent Living; selected area banks; and other local housing leaders.
"Today""s commitment by Fannie Mae to invest $135 billion in Illinois housing is unprecedented," said Mayor Davlin. "We are very excited about the company""s commitment to expand its creative financing capabilities and community development concepts to all Illinois towns, both large and small. Many families in Springfield, and across the State of Illinois as well, are eager to join the world of homeownership. The initiatives that will flow from this investment strategy may be just the thing to help make their dream come true."
"Fannie Mae""s expanded affordable housing strategy is excellent news for working families throughout the State of Illinois," said U.S. Representative Ray LaHood (R-IL), in a prepared statement. "The company has a history of being at the forefront of innovation with expanding affordable homeownership. It also has a reputation for coming up with big ideas and bold plans, and this commitment here today is a good example of a bold plan."
The announcement was held at the Madison Park Place Housing Development in Springfield, an affordable housing development designed for working families. Fannie Mae, through Apollo Housing Capital, LLC, invested $12.3 million in Madison Park, a property that qualifies for Low Income Housing Tax Credits allocated by the Illinois Housing Development Authority.
"The State of Illinois is proud to recognize the effort and commitment that Fannie Mae has demonstrated over the years through its efforts to expand affordable homeownership opportunities," said Kelly King Dibble. "The state looks forward to expanding our partnership with the Fannie Mae Illinois Partnership Office as we both work to extend the dream of homeownership to first-time home buyers across Illinois."
"This seven-year affordable housing strategy will focus on increasing affordable homeownership opportunities, community development, local housing pilots to address unique needs, and quality affordable rental housing for the growing housing needs of families throughout the state," said Terry Young, director of the Fannie Mae Illinois Partnership Office.
Over the next seven years, Fannie Mae""s Illinois Partnership Office will work with housing industry partners, focusing attention and resources on expanding homeownership and rental housing opportunities for minority populations, first-time home buyers, and working families. This includes providing lender partners with affordable mortgage financing solutions, such as mortgages with low down payment requirements and flexible qualification criteria, and offering valuable resources to local nonprofit groups to help more working families become homeowners.
Specific areas of focus that will help Fannie Mae implement the $135 billion affordable housing strategy include:
* Affordable Homeownership Opportunities. An initiative was developed through the collaborative efforts of Fannie Mae; the National Training and Information Center (NTIC); and NTIC community-group affiliates such as the Central Illinois Organizing Project (CIOP), and is designed so that local lenders, such as National City, can help more low- and moderate-income borrowers purchase homes. To qualify for a mortgage under this initiative, borrowers in targeted cities cannot earn more than the area median income. The mortgage loans are available through National City and require as little as $500 toward either the down payment or closing costs. The remaining borrower contribution, if applicable, can be a gift from a relative or a nonprofit organization, or an unsecured loan from nonprofit organizations or government agencies. * Anti-Predatory Lending Initiatives. To help combat abusive lending practices in underserved communities, Fannie Mae is working with local housing partners, including CIOP and National City, on an anti-predatory lending initiative. This $5 million pilot enables homeowners in Central Illinois who have a predatory loan to refinance into a conventional market rate mortgage. * Homeownership for People With Disabilities. Helping individuals with disabilities become homeowners is a priority for Fannie Mae. Several community development organizations, including the Springfield Center for Independent Living, are working on offering Fannie Mae""s Community HomeChoice(TM) mortgage product. This product is designed for low- and moderate-income people with disabilities, or borrowers who care for a family member with a disability, and provides affordable mortgage financing with down payments as low as $500. * Employer Assisted Housing (EAH) Initiatives. Fannie Mae is working with the Metropolitan Planning Council and the Illinois Housing Development Authority on expanding the state""s Employer Assisted Housing initiative. In Cook County, more than 20 companies offer the employee financial benefit, which can be used toward the purchase of a home. Employers can choose from a variety of EAH benefit options including access to home- buying information, or a financial benefit such as a loan or grant to help fund down payments, closing costs or interest rate buy downs. In turn, EAH is a tool that employers can use to attract and retain qualified employees, revitalize neighborhoods, and reduce employee commutes. To date, Fannie Mae has assisted nearly 600 public and private employers across the nation. * Section 8 to Homeownership. Fannie Mae is working with various public housing authorities (PHAs) across the state to help low-income families purchase homes. Through the PHAs"" Section 8 Housing Choice Voucher Program, low-income residents can use their Section 8 rental assistance vouchers toward buying a home. Residents use their current income, combined with the housing assistance subsidies, to qualify for a mortgage loan. * Affordable Rental Housing. In high-cost housing markets, such as Chicago, rental housing can be an affordable alternative to homeownership for many young families, low-income individuals, and single heads of households. Fannie Mae has invested in local rental housing developments, including: Cedar Creek Apartments in Quincy, Prestwick Senior Community in Galena, and River West Apartments in Peoria. * Community Development & Neighborhood Revitalization. Fannie Mae invests equity and funds debt to help leverage financial investments that bring new and restored economic life to neighborhoods, making them places that families want to call home. The company has used its facilities to become a key partner in the rehabilitation and revitalization of the city of Chicago""s Cabrini Greene Public Housing Project and neighborhood.
This $135 billion affordable housing strategy is part of Fannie Mae""s national American Dream Commitment(R) to expand access to homeownership for millions of first-time home buyers; help to raise the national minority homeownership rate to at least 55 percent; make homeownership and rental housing a success for millions of families at risk of losing their homes; and expand the supply of affordable housing where it is needed most.
For more information on Fannie Mae""s American Dream Commitment for Illinois, which includes information on Fannie Mae""s affordable mortgage products and a list of local lenders, consumers may call Fannie Mae""s Consumer Resource Center at 1-800-7FANNIE (1-800-732-6643), Monday through Friday, 8:00 a.m. to 4:00 p.m. CDT.
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation""s largest source of financing for home mortgages. Since 1968, Fannie Mae has provided $5.9 trillion of mortgage financing for 60 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com/.
HomeChoice is a trademark and the American Dream Commitment is a registered mark of Fannie Mae. Unauthorized use of these marks is prohibited.
Style Usage: Fannie Mae""s Board of Directors has authorized the company to operate as "Fannie Mae," and the company""s stock is now listed on the NYSE as "FNM." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."
Janice Daue, 202/752-2131