The initiative with FUNB stems from Fannie Mae’s recently announced MyCommunityMortgageSM pilot initiative, which will be available at First Union in late June. MyCommunityMortgageSM is a suite of flexible, high loan-to-value mortgage options for one to four unit properties, with customizable features that help lenders such as FUNB meet the needs of low and moderate-income families throughout New Jersey. The product option to be used by First Union is Community 97 SM, which can be customized and includes a minimum contribution of one percent or $500, whichever is less (from the borrower’s own funds), with the remainder coming from gifts or a loan to the borrower.
“Homeownership is the foundation for healthy neighborhoods and strong communities, providing families a great opportunity to build wealth and invest in their children’s future,” said Trenton Mayor Doug Palmer, speaking at today’s news conference. “I commend First Union and Fannie Mae for joining forces with New Jersey Citizen Action to help increase the number of New Jersey families who own their own homes.”
“First Union is committed to building and strengthening the communities we serve, especially through partnerships and products that help ensure affordable housing,” said Rosie Saez, senior vice president and manager of First Union’s Atlantic Bank’s Community Development Group.
“Last year, we put 344 low and moderate-income families in homes each week – nearly 18,000 for the year – and we’re pleased to partner with Fannie Mae to increase those numbers more.”
“Fannie Mae and First Union share a mutual commitment to making homeownership more affordable to New Jersey’s diverse population,” said Timothy J. Touhey, director of Fannie Mae’s New Jersey Partnership Office. “By working together, we will expand opportunities to many families who may have thought that homeownership was beyond their reach.”
As part of this program, FUNB will also require that first-time homebuyers obtain homeowner-ship counseling through the New Jersey Citizen Action, Isles, Patterson Task Force and the Patterson Housing Coalition groups to help them through the home buying process.
“New Jersey Citizen Action is pleased to work with First Union and Fannie Mae to provide free homeownership education to families who want to plan for homeownership,” said Phyllis Salowe-Kaye, director, New Jersey Citizen Action.
Fannie Mae’s MyCommunityMortgageSM product is part of the company’s American Dream CommitmentSM, a pledge to help shrink the nation’s “homeownership gaps” through a new 10-year, $2 trillion initiative to increase homeownership rates and serve 18 million targeted American families by the end of the decade. The American Dream CommitmentSM places special emphasis on increasing homeownership among minorities, young families, women-headed households, new immigrants, and others whose homeownership rates lag the general population.
For more information about this new Homeownership Initiative, consumers may call the following numbers: NJCA - (201) 488-2804; Isles, Inc. - (609) 393-5656, Patterson Task Force - (973) 279-3737, Patterson Coalition for Housing - (973) 684-5998.
For more information about First Union’s affordable mortgage products, consumers may call the following toll free numbers: In North New Jersey – (800) 332-0599; in South New Jersey – (800) 332-0595; and in Central New Jersey – (800) 323-0126.
For more information about Fannie Mae affordable mortgage products, 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. EDT.
First Union (NYSE:FTU), with $253 billion in assets and stockholders' equity of $16 billion at March 31, 2001, is a leading provider of financial services to 15 million retail and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices in 11 East Coast states and Washington, D.C., and full-service brokerage offices in 47 states and internationally. Online banking products and services can be accessed through www.firstunion.com.
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 more than $3 trillion of mortgage financing for 38 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.
[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.”]
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