Bank One and Fannie Mae Team to Put Families in Homes for the Holidays; $12.5 Billion Alliance Will Trim Mortgage Costs, Help Families Deck Their Own Halls.

Business Editors/Real Estate Writers

CHICAGO--(BUSINESS WIRE)--Dec. 4, 2002

Mayor Richard M. Daley and U.S. Representative Danny Davis (D-IL) today joined Bank One and Fannie Mae -- two leading national players in home mortgages -- to announce a $12.5 billion community lending alliance to help low- and moderate-income families celebrate every holiday season in their own homes. Fannie Mae has agreed to purchase eligible loans originated as part of this partnership.

The five-year alliance will provide affordable mortgage financing for underserved people and communities -- including minority families, women-headed households, immigrants and people with disabilities. Bank One, which views mortgages as a core product to customer relationships, will offer a suite of customized mortgage products that:

-- require little or no down payment;

-- eliminate the cost of mortgage insurance; and/or

-- feature flexible credit qualifications.

"Bank One's partnership with Fannie Mae will help make the dream of homeownership a reality for individuals who have steady incomes but struggle to pull together a down payment," said Heidi Miller, executive vice president of Bank One, the nation's sixth-largest bank holding company. "Our $12.5 billion commitment will not only give hundreds of families their own place to celebrate every holiday season, but will help them take advantage of homeownership -- the most effective method for building wealth and achieving financial security."

The lending commitment targets both single-family and multi-family homes because both are essential for strong neighborhoods. At least 25 percent of Bank One's total commitment is focused on increasing homeownership among minorities. Funds also will go to community development efforts, such as inner-city rehabilitation projects.

"Owning a home is part of the American dream as well as key to revitalizing neighborhoods and improving our communities and schools," said Mayor Daley. "Bank One and Fannie Mae have been longstanding partners to the city, nonprofits, and the national housing industry in creating homeownership and affordable housing opportunities that truly make a difference in peoples' lives."

"We are proud to work with Bank One to help more families and individuals on the path to homeownership," said Jamie Gorelick, vice chair of Fannie Mae, the nation's largest source of financing for home mortgages. "This multibillion dollar lending alliance is designed to increase affordable housing opportunities for minority and new immigrant borrowers and is a positive step to help close the homeownership gaps that exist today."

Fannie Mae will assist Bank One in developing strategies to encourage the bank's corporate customers to provide down-payment assistance for their own employees. Bank One currently offers a $2,500 grant to its workers who meet income and other employment guidelines. To help families understand the responsibilities and advantages of homeownership, Bank One and Fannie Mae also will work closely with nonprofit counseling organizations and national community organizations that are committed to providing housing opportunities for underserved communities.

"As a member of the Congressional Black Caucus, I am concerned that the homeownership rate for African Americans significantly trails the national average," said U.S. Rep. Davis, who has been active in a caucus initiative called With Ownership, Wealth. "I applaud Bank One and Fannie Mae for being active partners in WOW and for helping to pave the way for more African-American Families in Chicago and across the nation to become homeowners."

Bank One and Fannie Mae's affordable housing initiative will kick off in Chicago, Detroit and Phoenix and will expand to other markets within the 14 states where Bank One has branches. To find out more about the initiative or to apply for a mortgage, please 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.

Bank One Corporation (NYSE:ONE) is the nation's sixth-largest bank holding company, with assets of more than $270 billion. Bank One can be found on the Internet at www.bankone.com.

Fannie Mae (NYSE:FNM
FNM Free National Movement (Bahamas)
FNM Foot and Mouth ), the nation's largest source of financing for home mortgages, 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 over $4 trillion of mortgage financing for 47 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.