Fannie Mae to invest $700 billion in minority housing

Jet, Oct 28, 2002

Fannie Mae, the nation's largest source for financing home mortgages, plans to invest at least $700 billion through 2009 to provide financing to 4.6 million minority households.

News of the breakthrough came during the New Orleans conference of the National Bankers Association (NBA).

Franklin D. Raines, Fannie Mae's chairman and chief executive officer, told the audience that the NBA was uniquely focused on lending to underserved, minority and immigrant families.

"Through this agreement," said Raines, "we hope to extend the benefits of the housing finance system to more Americans in underserved communities and boost minority home ownership rates closer to the national rate of 60 percent."

Fannie Mae plans to purchase at least $250 million in mortgages generated by NBA members during the three-year term of the agreement.

"This is yet another example of Fannie Mae's commitment to equal homeownership opportunities for all Americans," said James Young, president and chief executive officer of the Citizens Trust Bank and chairman of the board of the NBA.