Fannie Mae's $2 Trillion 'American Dream Commitment' On Course with Over $190 Billion in 2000 Targeted Lending

Business Wire, March 14, 2001

"The American Dream Commitment is Fannie Mae's pledge to address not only the homeownership gap, but also a perception gap," said Raines. "It is critical for policymakers to understand that millions of Americans still lack access to decent housing and homeownership. It is equally critical that housing-deprived families understand that they have rights and that those rights will be ensured them."

In addition to reporting on progress made on the Mortgage Consumer Rights Agenda, Raines provided updates on each of the Commitment's other five main initiatives.

"In 2000, Fannie Mae launched several new mortgage products, processes and partnerships to help the mortgage finance system deliver low-cost mortgage credit, on flexible terms, to people and places outside the mainstream," Raines reported. "We are widening the mainstream - lifting more boats - with very low down payment loans, special community lending products for financial institutions, targeted investments in urban renewal plans, cooperative arrangements with faith-based organizations and other affinity groups, and accelerating our investment in affordable rental housing."

The National Minority Homeownership Initiative

Fannie Mae has challenged the public and private sectors to join in setting a national goal of creating five million new minority homeowners by 2010. Through the American Dream Commitment's National Minority Homeownership Initiative, Fannie Mae has committed to contribute at least $420 billion in mortgage investments to serve more than three million minority households over the decade.

The company also has pledged to lead the market in affordable lending finance to all racial and ethnic groups and is on track to achieve our strongest targeted lending performance ever.

-- Minority Lending. In 2000, Fannie Mae purchased loans totaling

nearly $35 billion of minority lending and served more than

316,000 minority households.

-- Multicultural Markets Initiative. Fannie Mae established

targeted alliances with national lenders in 2000 to increase

minority and immigrant homeownership. The Multicultural

Markets Initiative provides lenders with the following:

competitive market data; strategies for using our mortgage

products; links to community partners, training, and

education; targeted marketing material; and outreach tools to

launch minority and immigrant initiatives. Lender partners

include Irwin Mortgage, CTX Mortgage Company, and

CitiMortgage.

-- National Partnerships. Fannie Mae created community-based

lending opportunities by working through expanded partnerships

with national and local organizations, faith-based

organizations, minority- and women-owned lenders, and

community development financial institutions. By linking our

lender partners with these partnerships, we are helping these

groups build their capacity to address the housing needs of

low- and moderate-income home buyers by offering flexible

underwriting standards and low down payment mortgages. In

2000, Fannie Mae developed new or revised formal agreements