Central Illinois Organizing Project, National City, National Training and Information Center, and Fannie Mae Announce a $50 Million Low Down Payment Home Mortgage

Business Wire, July 15, 2003

Business Editors

SPRINGFIELD, Ill.--(BUSINESS WIRE)--July 15, 2003

Initiative in Central Illinois to Increase Affordable Homeownership

Community leaders and representatives from the Central Illinois Organizing Project (CIOP); National City Corporation (NYSE:NCC); National Training and Information Center (NTIC); and Fannie Mae (NYSE:FNM), the nation's largest source of financing for home mortgages; joined today to announce the availability of a $50 million Low Down Payment Home Mortgage initiative. The mortgage initiative will enable low- and moderate-income home buyers in Central Illinois to purchase a home with as little as $500, or 1 percent of the home purchase price, from the borrower's own savings.

"This new collaborative effort between the organized faith-community and the private sector is going to help move the American dream of homeownership into the reality of families owning and taking pride in their own home in Central Illinois," commented Reverend Robert Freeman, president of CIOP. "The joy of this day is not the talk of hope, but the harvest of action to create change for our families and neighborhoods."

CIOP, a regional faith-based, nonprofit organization and NTIC affiliate, entered into a Community Reinvestment Act (CRA) partnership in 1997 with National City, resulting in millions of dollars reinvested in Central Illinois' working-class families and neighborhoods. This new lending initiative is a continuation of that CRA partnership between CIOP and National City.

The Low Down Payment Home Mortgage initiative was developed through the collaborative efforts of Fannie Mae; NTIC; and NTIC community-group affiliates such as CIOP, and is designed so that local lenders, such as National City, can help more low- and moderate-income borrowers purchase homes. This is the first time the Low Down Payment Home Mortgage is available in rural, as well as urban areas. Fannie Mae will purchase the eligible Low Down Payment Home Mortgages from National City.

Central Illinois cities served by CIOP and this mortgage initiative include: Bloomington-Normal, Champaign-Urbana, Danville, Decatur, Peoria, Rantoul, Springfield, and surrounding rural counties. Other cities where the mortgage initiative is available include: Pittsburgh, Chicago, Cincinnati, Cleveland, Des Moines, and Syracuse.

To qualify for a mortgage under this initiative, borrowers in targeted cities cannot earn more than the area median income (AMI). In Central Illinois, the AMI is approximately $68,000. The mortgage loans are available through National City and require as little as $500 or 1 percent down, whichever is less, 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 or secured loan from nonprofit organizations or government agencies.

"At National City, we are very excited about this partnership with Fannie Mae and CIOP. National City takes homeownership development very seriously, and we are always looking for opportunities to provide a pathway to responsible homeownership," said John Stinson, National City president in Springfield. "We know that a community is made stronger when people have more invested in their community. This is an opportunity for National City to help those making that investment."

"The late Gale Cincotta, who was known as the mother of CRA, helped to develop this initiative with Fannie Mae when she was the director of NTIC," said Joseph W. Mariano, executive director of NTIC. "This initiative will ensure that neighborhood people can achieve homeownership. NTIC is proud that Central Illinois' neighborhoods will now be able to use this initiative with the help of CIOP, Fannie Mae, and National City."

"One of the most frequent impediments to homeownership is a lack of funds for down payment and closing costs," said Julie Gould, vice president for community lending at Fannie Mae. "Fannie Mae is pleased to work with CIOP, National City, and NTIC to help prospective home buyers overcome these obstacles."

Fannie Mae's participation in the mortgage initiative is part of the company's $2 trillion American Dream Commitment(R) to help increase homeownership rates nationwide and serve 18 million targeted American families by the end of the decade.

For more information about the Low Down Payment Home Mortgage initiative, consumers may call the CIOP Housing Hotline toll-free at 1-888-525-6942 or National City toll-free at 1-800-322-7070, extension 3934.

Central Illinois Organizing Project (CIOP) is a multi-issue, faith-based community organization with church, labor, and NAACP chapter membership located in Bloomington-Normal, Champaign-Urbana, Danville, Decatur, Peoria, Rantoul, and Springfield. CIOP has offices in Bloomington and Springfield. The mission of CIOP is to empower God's People to become full-partners on justice issues affecting their families, communities, and region.

National City Corporation, headquartered in Cleveland, Ohio, is one of the nation's largest financial holding companies. The company operates through an extensive distribution network in Ohio, Indiana, Illinois, Kentucky, Michigan, and Pennsylvania, and also serves customers in selected markets nationally. Its primary businesses include commercial and retail banking, consumer finance, asset management, mortgage financing and servicing, and payment processing. For more information about National City Corporation, visit the company's Web site at NationalCity.com.