WASHINGTON–(BUSINESS WIRE)–March 18, 2003–On the third anniversary of its “American Dream Commitment(R),” Fannie Mae and its lender partners already have fulfilled over half of its ten-year pledge to provide $2 trillion in home financing for 18 million historically underserved families, Fannie Mae Chairman and CEO Franklin D. Raines announced today.

To date, Fannie Mae has provided more than $1.3 trillion for nearly 12 million targeted families, completing two-thirds of the American Dream Commitment in about 30 percent of the time, and leading the market in serving minorities and the nation’s affordable housing needs.

Joining with representatives from 11 leading mortgage lenders and Fannie Mae partners, Raines applauded the mortgage finance industry for its extraordinary efforts to reach and serve “emerging markets” of historically underserved families and communities, deliver Fannie Mae’s $2 trillion in targeted capital, and extend the benefits of the nation’s housing boom.

Lender partners participating in today’s announcement include: Bank of America; Bank One Corporation; Charter One Bank; Countrywide Financial Corporation; Doral Financial Corporation; First Horizon Home Loan Corporation; Fleet Boston Bank; Huntington Mortgage Company; Irwin Mortgage; J.P. Morgan Chase & Co.; and Standard Mortgage Corporation.

“Together, America’s top lenders and Fannie Mae have made terrific progress in bringing the nation’s housing boom to overlooked Americans and addressing the gaps in housing opportunity,” Raines said. “Fannie Mae applauds our lender partners for helping us surpass the halfway mark in our $2 trillion commitment to underserved families so quickly. Together, we lead the market in serving Americans of color and modest means.”

Fannie Mae launched the American Dream Commitment in March 2000 to narrow homeownership gaps, increase the availability of affordable rental housing, and strengthen communities.

The plan included $420 billion to provide minority home financing and in 2002 Fannie Mae boosted that pledge to $700 billion in an effort to help advance the Bush Administration’s minority homeownership proposals.

The Commitment consists of a six-point plan: Mortgage Consumer Rights Agenda; National Minority Homeownership Initiative; Opportunity for All Strategy; America’s Living Communities Plan; eHomeownership; and Affordable Rental Housing Leadership Initiative.

Highlights of Fannie Mae’s 2002 American Dream Commitment report include:

Fannie Mae provided over $1.3 trillion for nearly 12 million families since 2000, including:

— $670 billion for almost 5.5 million families in 2002

— $67 billion for households headed by women

— $190 billion for families in city neighborhoods

Fannie Mae met its voluntary commitment to lead the market in serving minority Americans. Last year, the company provided $136 billion for almost 1 million minority families, which:

— served 213,000 African-American families with $24 billion in financing;

— served 394,000 Hispanic families with $51 billion in financing;

— served 2,488 Native Americans living on tribal and trust lands with more than $217 million in financing;

— served 375,000 other minorities with $61 billion in financing; and

— led to Fannie Mae partnering with lenders and community groups to finance $8.2 billion through our efforts to facilitate Community Reinvestment Act-targeted business.

In addition, Fannie Mae met or exceeded HUD affordable goals for the 9th consecutive year, with almost 52 percent of business serving low- and moderate-income families; almost 33 percent serving underserved areas; and over 21 percent serving very low-income families.

In 2002, Fannie Mae made the following progress on the company’s six-point plan:

I. Mortgage Consumer Rights Agenda

A set of five principles shared by Fannie Mae and our housing partners to protect consumers’ rights in mortgage finance. A 2002 highlight is:

— The Right to the Lowest Cost Mortgage. Fannie Mae is helping to eliminate predatory lending and ensure that more Americans have access to the lowest cost mortgage credit for which they can qualify. The company launched an initiative with lender partners in 19 communities last year to help victims of predatory lending refinance into safer, cheaper loans.

“Fannie Mae is a national leader in the fight against predatory lending and has established a powerful corporate anti-predatory lending policy,” said Raines. “The company believes that rejecting loans with predatory features, supporting the adoption of a strong, federal anti-predatory lending law, and providing good capital through good lenders to drive out the bad will ensure that borrowers aren’t victimized by unscrupulous predatory lending practices.”

II. The National Minority Homeownership Initiative

Fannie Mae announced a new ten-point plan in June 2002 in response to President Bush’s challenge to the private sector to join in partnership to meet America’s housing needs. The company’s plan is designed to help advance the Bush Administration’s minority homeownership proposals and increase by 66 percent our own commitment to minority home financing.

Fannie Mae pledged to invest $700 billion through 2009 to provide home financing to 4.6 million minority households.

— Minority Lending. In 2002, Fannie Mae financed more than $136 billion in loans to 984,000 minority households.

— Lender Partnerships. Fannie Mae implemented 10 new lender partnership agreements in 2002 targeting markets underserved by traditional housing finance. These lenders include: Bank One Mortgage Corporation, Hibernia National Bank, J.P. Morgan Chase & Co., MidAmerica, Sky Financial Group, Standard Mortgage Corporation, SunTrust Mortgage, Union Planters, Washington Mutual, and Webster Bank.

— 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. In 2002, four national partnerships were launched by Fannie Mae: a five-year, $1.5 billion commitment with the Enterprise Foundation to support affordable housing; a $250 million commitment to purchase mortgages generated by the National Bankers Association as part of a three-year agreement to serve low- to moderate-income families; a three-year partnership with ACORN Housing Corporation to invest up to $200 million in affordable mortgages originated by local lenders involving home buyers counseled through ACORN; and, a three-year, $100 million partnership with the National Council of La Raza to purchase mortgages generated in collaboration with its Homeownership Network serving Latino families.

— Native American Initiative: Native Americans living on tribal and trust lands are one of the most underserved and impoverished minority populations in the U.S. That’s why Fannie Mae has developed tools, products, and flexible underwriting criteria to address the unique needs of tribal members who lack the resources to qualify for traditional financing. In 2002, Fannie Mae invested a record $217 million and served 2,488 families on reservations and trust land.

— Faith-Based Initiative. This effort establishes strong links between the nation’s diverse faith-based organizations and the housing community to encourage faith leaders to become involved in community economic development. Fannie Mae announced a five-year, $25 million faith-based homeownership partnership with the Christian Methodist Episcopal Community Development Corporation to expand affordable housing opportunities. The company is working to ensure that these communities receive home-buyer education, credit counseling, and mortgage financing.

— Minority- and Women-Owned Lenders (MWOL) Initiative. Fannie Mae purchased $9 billion in loans from minority- and women-owned lenders in 2002, of which more than half were made to minority home buyers in 2002.

— Community Development Financial Institutions (CDFIs). Community Development Financial Institutions play a critical role in neighborhoods traditionally underserved by the housing finance industry. In 2002, Fannie Mae committed to invest $17 million in CDFIs, which will generate more than 1,000 additional units of affordable housing.

“Over the next decade, minorities and immigrants are expected to fuel the growth in the mortgage market, making up more than 60 percent of first-time home buyers,” said Raines. “We are committed to working with lenders, mortgage brokers, nonprofit housing partners, and others to address the unique financing needs of these emerging home buyers.”

III. Opportunity for All Strategy

Fannie Mae’s Opportunity for All strategy is a ten-year effort to increase homeownership rates and provide new housing support to women-headed households, new immigrants, and urban households, as well as meeting the unique housing needs of seniors, poverty-stricken areas in rural communities, and those with special needs.

— Community Reinvestment Act (CRA) Lending. In 2002, Fannie Mae stepped up its efforts to help our lender partners with CRA goals, thereby providing new homeownership opportunities for low- and moderate-income borrowers and the communities served by our lender partners. We purchased and securitized $201 billion of such loans in 2002, bringing our cumulative total to $394 billion since 2000. In addition, we achieved a separate ten-year goal ahead of schedule to fund $20 billion in specially-targeted CRA initiatives, including mortgage products with new credit flexibilities and CRA-targeted mortgage-backed securities to fund more than $8.2 billion last year, for a cumulative total of $21.7 billion since 2000.

— Employer-Assisted Housing (EAH). In 2002, Fannie Mae helped a record 116 employers throughout the U.S. develop and implement EAH benefit plans designed to help thousands of employees achieve homeownership. These employers included private companies, universities, hospitals, nonprofits, and city, county, and state entities.

— Helping Credit-Impaired Borrowers. Fannie Mae’s Expanded Approval(TM) mortgage products provide lenders with a powerful tool to help credit-impaired borrowers who otherwise may not qualify for lower-cost conventional mortgage financing. In 2002, the flexibilities offered through Expanded Approval and Timely Payment Rewards(TM) enabled more than 128,000 borrowers to take advantage of cost savings on their home mortgages over alternative financing.

— Americans With Disabilities. In 2002, lenders used Fannie Mae products to serve 1,237 households with special needs, many of whom also have low- to moderate-incomes. Fannie Mae also offered lenders several mortgage financing products that are targeted to individuals with disabilities, including HomeChoice(TM) and Community Living(R) mortgages.

— Women-Headed Families. Our Women-Headed Household Initiative aims to eliminate the barriers to homeownership that prevent women-headed households from fully participating in the American Dream. Since 2000, through our lender partners, we have provided more than 1.3 million women-headed families with homeownership opportunities and have financed $135 billion in loans.

IV. America’s Living Communities Plan

Through our American Communities Plan, we are committed to being the nation’s premier private sector partner for investment in targeted communities, and, working with our partners, we intend to help create the safest, healthiest, most livable communities possible.

— American Communities Fund(TM). This housing and community development investment vehicle closed $725 million in commitments on 216 transactions since 2000.

— Partnership Office Initiative. In 2002, Fannie Mae’s Partnership Office network expanded from 50 to 54 offices, moving closer toward the goal of establishing 60 Partnership Offices across the country by the end of the decade. The Partnership Offices work with local lenders, nonprofit organizations, public officials and others to develop products and initiatives unique to their markets to expand the company’s capacity to increase homeownership.

— Making a Positive Impact in 300 Communities. Toward the 10-year goal to make a positive impact in 300 communities nationwide, Fannie Mae initiated investment activity in 36 new neighborhoods in 2002 with a total investment of $332 million. This increases the number of communities in which the company is a key partner to 111 since the goal was established in 2000.

V. eHomeownership

As one of the world’s largest e-business companies, Fannie Mae is working with lenders to develop innovative mortgage products and technology solutions to help more Americans become homeowners, and is committed to an e-commerce environment to drive down the cost of mortgage credit and increase the availability and accessibility of home loan financing to home buyers.

— Home Counselor Online(TM). In 2001, Fannie Mae launched Home Counselor Online, a tool that allows homeownership educators and counselors to help consumers determine their readiness for homeownership faster and better. Since it first went live in 2001 on, more than 1,100 housing counselors have registered to use the application.

— Desktop Underwriter(R) (DU(TM)). Fannie Mae’s automated underwriting system, Desktop Underwriter, is the market-leading system. In 2002, DU set a new record of 10 million loans processed by lenders, 25 percent more than the previous year.

As the company moves through the decade, Fannie Mae will continue to harness the power of the Internet to simplify and reduce the costs of the home-buying process and explore additional options to increase homeownership opportunities.

VI. Affordable Rental Housing Leadership Initiative

For many Americans, the dream of a safe, decent home means a safe, clean apartment they can afford. Fannie Mae works with its lenders and other partners through the Affordable Rental Housing Leadership Initiative to create and preserve affordable rental housing. Our business model with our Delegated Underwriting and Servicing (DUS) lenders provides fast decisions and a consistent presence in the market.

— Debt Purchases. Fannie Mae leads the market in financing and preserving affordable rental housing stock, despite current economic challenges. Our consistent presence in every economic climate ensures capital is always available to promote rent stability and keep properties affordable. In 2002, more than $18 billion of Fannie Mae’s debt purchases supported affordable housing, resulting in 417,000 affordable rental units.

— Low-Income Housing Tax Credits (LIHTC). In 2002, Fannie Mae committed $1.6 billion in properties nationwide that qualify for Low-Income Housing Tax Credits, representing 37,500 units.

“Through Fannie Mae’s American Dream Commitment, we help bring the best, most efficient housing finance system in the world to every neighborhood in America,” Raines said.

For more information on the American Dream Commitment, or for a list of lenders, consumers may call Fannie Mae’s Consumer Resource Center at 1-800-7FANNIE (1-800-732-6643), Monday through Friday, 9:00 a.m. to 5:00 p.m. EST.

Editor’s Note: For a copy of the 2002 American Dream Commitment report, please go to or contact the Fannie Mae News Bureau at 1-888-FAN-NOW4 (1-888-326-6694).

Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation’s largest source of financing for home mortgages.

Fannie Mae is working to shrink the nation’s “homeownership gaps” through a $2 trillion “American Dream Commitment” to increase homeownership rates and serve 18 million targeted American families by the end of the decade. Since 1968, Fannie Mae has provided $4.5 trillion of mortgage financing for more than 49 million families.

More information about Fannie Mae can be found on the Internet at

American Dream Commitment, Community Living, Desktop Underwriter, and Timely Payment Rewards are registered marks and American Communities Fund, DU, Expanded Approval, HomeChoice and Home Counselor Online are trademarks of Fannie Mae. Unauthorized use of these marks is prohibited

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.”

Fannie Mae American Dream Commitment 2002 Report Lender Partner Quotes


“Bank of America is committed to making communities stronger by helping people achieve their dreams of owning a home,” said Gwen Thomas, Senior Vice President at Bank of America. “We are committed to strengthening the growth and vitality of affordable housing in every neighborhood. Fannie Mae is one of our key partners in making this happen.”


“Bank One knows how important home ownership is to America’s families and communities, and is proud of our $12.5 billion partnership with Fannie Mae,” said Penny Rostow, Head of Federal Government Relations at Bank One Corporation. “The flexibility of the lending program makes home ownership attainable for thousands more American families.”


“Charter One has long been committed to opening the doors of homeownership, expanding housing choices and increasing access to mortgage financing,” said Chris Aldredge, Senior Vice President of Community Development Banking and Investment for Charter One Bank. “We are working closely with Fannie Mae to introduce a wide range of creative solutions to tackle the nation’s toughest housing challenges.”


“As a national leader in residential finance, Countrywide Financial Corporation is dedicated to providing cutting-edge mortgage products and homeownership initiatives that serve nearly any family who would want a home,” said Jimmie Williams, Vice President of Countrywide Financial Corporation. “We’re proud that our work with Fannie Mae has helped families save thousands of dollars during the life of their loan, and stimulated new construction and home sales, thereby strengthening the economy last year.”


“Doral is strongly committed to providing affordable mortgage products to the families in its markets,” said Fernando Rivera Munich, Vice Chairman for Doral Financial Corporation. “That’s why we are pleased to work with Fannie Mae every day to make that happen.”


“First Horizon is committed to be ‘all things financial’ for our customers and to provide the lowest cost mortgage loan for which our customers qualify,” said Jerry Baker, President & CEO of First Horizon Home Loan Corporation. “We are also strongly committed to affordable housing, because it is essential to the economic vitality of the country and for the financial security of our customers.”


“Over the past year, Fleet has ramped up its efforts to serve low- and moderate income borrowers, especially people purchasing homes in underserved areas,” said John Frazza, Senior Vice President of Retail Production for Fleet Boston Bank. “We’re proud to be among the many housing partners across the nation who work with Fannie Mae to serve this group.”


“At Huntington we have a strong commitment to providing affordable mortgages to the families in the communities we serve,” said Rod Lake, Senior Vice President of Retail Mortgage Production for the Huntington Mortgage Company. “We are pleased to work with Fannie Mae to help meet the pledge of expanding homeownership to a diverse group of homebuyers across America.”


“Irwin Mortgage is dedicated to serving borrowers that traditionally have not been well-served by the mortgage industry,” said Perry Hines, Senior Vice President, Chief Marketing Officer for Irwin Mortgage. “We constantly strive to break down language, credit, and other barriers to homeownership and are pleased to join Fannie Mae in its efforts to meet the goals of the American Dream Commitment.”


“Chase has an ongoing commitment to meeting the home financing needs of traditionally underserved borrowers, as demonstrated by our recently announced $500 billion Chase Dream Maker Commitment. We are pleased to work with Fannie Mae to help millions of families from underserved segments with the American dream of homeownership,” said Paul Mullings, Senior Vice President and Fair Lending Executive for Chase Home Finance.


“Standard Mortgage is working hard with Fannie Mae to ensure that more Americans have equal access to the lowest cost mortgage for which they can qualify,” said Nancy Postell, Senior Vice President for Standard Mortgage Corporation. “Together we are helping to bring new ideas and products to the market in an effort to offer homeownership to a more diverse group of home buyers.”



Fannie Mae, Washington

Janice Daue, 202/752-2131