JimBob
10-02-2008, 10:00 PM
New York Times, September 30, 1999:
'In a move that could help increase home ownership rates among minorities
And low-income consumers, the Fannie Mae Corporation is easing the credit
requirements on loans that it will purchase from banks and other lenders.
'The action, which will begin as a pilot program involving 24 banks in 15
markets -- including the New York metropolitan region -- will encourage
those banks to extend home mortgages to individuals whose credit is
generally not good enough to qualify for conventional loans. Fannie Mae
officials say they hope to make it a nationwide program by next spring.
'Fannie Mae, the nation's biggest underwriter of home mortgages, has been
under increasing pressure from the Clinton Administration to expand
mortgage loans among low and moderate income people and felt pressure from
stock holders to maintain its phenomenal growth in profits.
'Fannie Mae has expanded home ownership for millions of families in the
1990's by reducing down payment requirements,' said Franklin D. Raines,
Fannie Mae's chairman and chief executive officer. 'Yet there remain too
many borrowers whose credit is just a notch below what our underwriting
has required who have been relegated to paying significantly higher
mortgage rates in the so-called sub prime market.'
- New York Times, September 30, 1999
'In a move that could help increase home ownership rates among minorities
And low-income consumers, the Fannie Mae Corporation is easing the credit
requirements on loans that it will purchase from banks and other lenders.
'The action, which will begin as a pilot program involving 24 banks in 15
markets -- including the New York metropolitan region -- will encourage
those banks to extend home mortgages to individuals whose credit is
generally not good enough to qualify for conventional loans. Fannie Mae
officials say they hope to make it a nationwide program by next spring.
'Fannie Mae, the nation's biggest underwriter of home mortgages, has been
under increasing pressure from the Clinton Administration to expand
mortgage loans among low and moderate income people and felt pressure from
stock holders to maintain its phenomenal growth in profits.
'Fannie Mae has expanded home ownership for millions of families in the
1990's by reducing down payment requirements,' said Franklin D. Raines,
Fannie Mae's chairman and chief executive officer. 'Yet there remain too
many borrowers whose credit is just a notch below what our underwriting
has required who have been relegated to paying significantly higher
mortgage rates in the so-called sub prime market.'
- New York Times, September 30, 1999