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CHFA, FANNIE MAE JOIN IN $20 MILLION AFFORDABLE HOUSING PLAN; WILL PROVIDE MULTIFAMILY HOUSING THROUGH NON-PROFIT SPONSORS

 WASHINGTON, Nov. 30 ~PRNewswire~ -- The Colorado Housing Finance Authority (CHFA) and the Federal National Mortgage Association (Fannie Mae) (NYSE: FNM) will launch a $20 million affordable housing initiative to serve the housing needs of low- and moderate-income families in Colorado.
 Fannie Mae, the nation's largest investor in mortgages, will purchase multifamily mortgages by issuing Mortgage-Backed Securities (MBS). The MBS will be used as credit enhancement for tax-exempt housing revenue bonds issued by CHFA. Fannie Mae's credit enhancement enables the bonds to have "AAA" rating, thereby reducing CHFA's costs of financing its mortgages.
 The bond proceeds will fund permanent loans to Colorado non- profit organizations and public housing authorities. The mortgages will be originated within the next three years. The housing development projects securing the loans will be newly constructed or renovated properties with mortgages ranging from $150,000 and $3 million.
 "We see this an another opportunity to meet multifamily housing needs in Colorado," stated David W. Herlinger, CHFA executive director. "Fannie Mae's partnership with CHFA in providing financing for these developments certainly enhances our ability to create cost- effective housing here. Ultimately we're fashioning a win-win situation for the low-income Colorado families who will live in the units, CHFA in its mission of creating affordable housing, and Fannie Mae with an opportunity to receive a return on a well-structured investment," said Herlinger.
 "I'm optimistic that this public-private partnership will prove to be a national model for other states to follow in the future," Herlinger added.
 The underwriting guidelines will be in general accordance with Fannie Mae Delegated Underwriting and Servicing (DUS) standards. Under the DUS program, Fannie Mae purchases qualified multifamily mortgages, without advance approval
on each loan, from specially- approved, eligible lenders. CHFA is responsible for originating, underwriting, and performing all servicing functions for the mortgages initiated through this commitment.
 Larry H. Dale, executive director of Fannie Mae's National Housing Impact Division, said, "This transaction will provide valuable support for the production of housing for low- and moderate- income Colorado residents of CHFA-financed housing. Fannie Mae's commitment with CHFA is an integral part of our $10 billion investment to open the doors to low-income and special needs housing across the country."
 CHFA is a public enterprise which creates financing opportunities through private investors to fund affordable housing programs for renters and first-time home buyers, as well as small business expansion and growth.
 Fannie Mae, the USA's Housing Partner, is a congressionally chartered, shareholder-owned company and the nation's largest investor in home mortgages.
 -0- 11~30~92
 ~CONTACT: Janice Daue of Fannie Mae, 202-752-3421~
 (FNM)


CO: Federal National Mortgage Association; Colorado Housing Finance
 Authority ST: Colorado IN: FIN SU:


MH -- DC015 -- 1933 11~30~92 12:43 EST
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Publication:PR Newswire
Date:Nov 30, 1992
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