Working with the National Association for the Advancement of Colored People, Freddie Mac has committed to purchase up to $500 million in mortgages, while Fannie Mae will provide up to $110 million in special financing products, including a new $50 million underwriting experiment to help African-Americans with credit problems.
The programs will be managed through local NAACP Community Development Resource Centers in eight states -- Maryland, Virginia, Texas, North Carolina, South Carolina, Georgia, Florida and Indiana.
The commitment by Freddie Mac is the largest it has made to boost minority homeownership. Fannie Mae said it has helped the NAACP generate more than $120 million of mortgage financing in the past five years.
The homeownership rate for black households is about 46 percent, 20 percent less than the national rate.
Pub Date: 1/24/99