CitiMortgage and Fannie Mae to Announce New Partnership to Provide $1.4 Billion in Affordable Mortgage Lending to Washington, DC and Baltimore Metropolitan Area Families

Business Wire, Sept 21, 2000

Business Editors

WASHINGTON--(BUSINESS WIRE)--Sept. 21, 2000

Thousands of low- and moderate-income, minority, new immigrant, and other underserved households in Washington, DC and the Baltimore metropolitan area will benefit from a new partnership announced today by Steve Stein, executive vice president of CitiMortgage, Inc., a subsidiary of Citigroup (NYSE:C) and Adolfo Marzol, executive vice president and chief credit officer of Fannie Mae (NYSE:FNM), the nation's largest source of financing for home mortgages.

The partnership will provide $1.4 billion in affordable mortgage lending in Washington, DC and the Baltimore area over the next five years.

"There is a critical need to increase the homeownership rate among minorities and new immigrants in Washington, DC and the Baltimore region," said Deputy Mayor Price. "I commend CitiMortgage and Fannie Mae for joining forces to make the American dream a reality for more hard-working Washington, DC and Baltimore families, including those who are newcomers to this country."

"Citibank recognizes the tremendous growth in the number of low- and moderate-income individuals in Washington, DC and the Baltimore metropolitan area wanting to purchase homes, along with the need to make more affordable mortgage products available to them," said C. Mack, group president of Citibank's Central Region. "We are pleased that CitiMortgage and Fannie Mae have joined forces in this historic partnership and look forward to supporting their efforts through our Citibank Financial Centers located in this area."

"Our two companies are focused on the same mission of helping families achieve the dream of homeownership and making a tangible difference in the communities we serve," said CitiMortgage's Stein. "Through this Washington, DC and Baltimore area partnership, we will be able to increase our commitment to provide mortgage tools for low- and moderate-income individuals, as well as to offer mortgages that encourage neighborhood revitalization, increase homeownership opportunities for new immigrants and minorities, and provide funds for the renovation of older housing."

This commitment represents a major increase in the affordable lending business of CitiMortgage Inc., and will transform the way the company serves emerging markets throughout the country. To achieve this goal, CitiMortgage has committed to originate and Fannie Mae has committed to purchase at least $1.4 billion in innovative and affordable mortgage loans.

At the center of this partnership is the expansion and introduction of flexible mortgage products that address the unique needs of low- to moderate-income borrowers, minority home buyers, and new immigrants.

"Fannie Mae is proud to join CitiMortgage in this new initiative," said Fannie Mae's Marzol. "CitiMortgage and Fannie Mae share a deep commitment to creating homeownership opportunities for more residents of Washington, DC and the Baltimore region with a special emphasis on new immigrants, minorities, and low- and moderate-income families."

This partnership is part of a $12 billion national initiative to provide flexible mortgage products through all CitiMortgage affiliates and their business partners. In addition to Washington, DC and the Baltimore region, the initiative includes concentrated marketing efforts in five other major metropolitan areas including: the New York City/Tri-State Area; the Miami/South Florida area; Chicago; Los Angeles/Orange County; and the San Francisco Bay Area.

This innovative partnership is part of Fannie Mae's "House Washington, DC" and "HouseBaltimore" investment plans. House Washington, DC is a four-year, $1 billion investment plan that aims to invest in community development, neighborhood revitalization, and lowering the cost of homeownership.

HouseBaltimore is a five-year, $4.2 billion investment plan to provide affordable housing to 40,000 greater Baltimore families. Both investment plans are part of the company's nationwide $2 trillion American Dream Commitment to increase homeownership rates and serve 18 million targeted families by the end of the decade.

To ensure the success of this new commitment, CitiMortgage and Fannie Mae will join forces with key national organizations to reach targeted markets.

A formal partnership exists with the Local Initiatives Support Corporation (LISC), and new partnerships are being forged with the National Association of Hispanic Real Estate Professionals (NAHREP), the National Urban League (NUL), and the National Association of Real Estate Brokers (NAREB - Realists).

Locally, CitiMortgage and Fannie Mae will join forces with key Washington, DC and Baltimore organizations to reach targeted audiences. Partnerships in Washington, DC exist with the Greater Washington Urban League, Council of Latino Agencies, and the Latino Economic Development Corporation.

In Baltimore, partnerships exist with the Real Estate Brokers of Baltimore and the Maryland Center for Community Development.

These organizations, and others to be added throughout the five-year partnership, will work with CitiMortgage and Fannie Mae to develop and implement marketing strategies to increase lending to minority and new immigrant home buyers and to promote homeownership in Washington, DC and the Baltimore region.