Fannie Mae and the Tulsa County Home Finance Authority Announce New Source of Affordable Mortgage Funds to Assist Nearly 500 Tulsa County Home Buyers

Business Wire, Oct 8, 1998

TULSA, Okla.--(BUSINESS WIRE)--Oct. 8, 1998--Nearly 500 low- to moderate-income Tulsa County families now will have access to affordable mortgage financing and down payment and closing cost assistance through a new $30 million bond financing agreement developed by the Tulsa County Home Finance Authority (HFA) and Fannie Mae (NYSE:FNM), the nation's largest source of home mortgage funds.

"Fannie Mae and the Tulsa County HFA have forged an important alliance to provide affordable housing for hundreds of hardworking Tulsa County families," said U.S. Representative Steve Largent (R-OK). "Expanding homeownership is not only good for our families, it helps us build better, safer neighborhoods and boosts the local economy."

Fannie Mae recently purchased the entire $30 million of taxable, single-family mortgage revenue bonds issued by the Tulsa County HFA. Available through select lenders, the bond proceeds will provide financing for 30-year, fixed-rate mortgages.

The loan program also provides 4 percent of the total loan amount toward down payment and closing cost assistance to reduce borrowers' out-of-pocket expenses.

These low-interest mortgages are available on a first-come, first-served basis to residents earning up to $49,680 for a family of two or less, and $57,960 for a family of three or more.

"This innovative partnership trims expenses off the home-buying process, making homeownership more accessible and affordable for local families," said County Commissioner Robert N. Dick, chairman of the Tulsa County HFA. "The Mortgage Bond Loan Program also stimulates new construction and home sales, thereby strengthening the local economy."

"One of the biggest barriers to homeownership is lack of down payment funds," said David Laughlin, president of Bank of Oklahoma Mortgage. "Bank of Oklahoma Mortgage is proud to participate in this worthwhile program that will turn hundreds of hard-working citizens such as teachers, fire fighters, police, and agricultural workers into homeowners."

"This bond partnership allows local lenders to offer down payment and closing cost assistance to area families who might otherwise be unable to afford a home," explained Perry Sawyer, chairman of Mercury Mortgage Company, Inc. "This program is just one more incentive for families to plant a permanent stake in the community through homeownership."

Since 1987, Fannie Mae has purchased more than $10.7 billion in mortgage revenue bonds from virtually all state and local housing finance agencies, making homeownership possible for approximately 180,000 low- to moderate-income home buyers.

"Fannie Mae's partnerships with housing finance agencies such as the Tulsa County HFA are absolutely vital to our ability to assist low- and moderate-income families," said Jack Gallagher, Fannie Mae's vice president for public finance.

Consumers interested in these low-interest loans may contact the following lenders:

Mercury Mortgage Co., Inc. Perry Sawyer, 918/665-9610

Countrywide Home Loans, Inc., Dottie Sheppick, 800/577-3732

First Mortgage Company, Joe Pearce, 918/496-2241

Bank of Oklahoma, N.A., Darlene Martin, 918/488-7157

Fannie Mae is a congressionally chartered, shareholder-owned company and the nation's largest source of funds for home mortgages. It has committed to provide $1 trillion in targeted lending for ten million homes by the end of the decade.

The targeted lending will serve low- and moderate-income families, minorities, new immigrants, residents of central cities and other underserved areas, and people who have special housing needs.

Over the past 30 years, Fannie Mae has provided $2.5 trillion in mortgage financing for 31 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.

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 "Fannie Mae." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."