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COUNTRYWIDE, FANNIE MAE ANNOUNCE RECORD $8 BILLION COMMITMENT TO PROVIDE NEW HOME MORTGAGE FINANCING

 COUNTRYWIDE, FANNIE MAE ANNOUNCE RECORD $8 BILLION COMMITMENT
 TO PROVIDE NEW HOME MORTGAGE FINANCING
 PASADENA, Calif., July 8 /PRNewswire/ -- Countrywide Funding Corporation and the Federal National Mortgage Association (Fannie Mae) (NYSE: FNM) announced today that they have signed a record commitment to finance $8 billion in home mortgages. Fannie Mae said the agreement is the single largest commitment in its history.
 The mortgages, to be originated by Countrywide in all 50 states, will be exchanged for Mortgage-Backed Securities (MBS) issued by Fannie Mae.
 The $8 billion agreement includes a previously announced $1.25 billion of a variety of Fannie Mae's affordable home mortgages, including reduced down payment loans.
 In addition, the mortgages originated under the agreement will include 15- and 30-year fixed-rate mortgages, a variety of adjustable-rate mortgages, and seven-year balloon mortgages.
 "We are delighted to participate in this historic event, and we are particularly proud that a substantial portion of the $8 billion commitment will directly benefit lower income Americans," said Countrywide President Angelo Mozilo.
 "We look forward to the rapid fulfillment of this commitment so that Countrywide can sign another record-breaking agreement with Fannie Mae," Mozilo said.
 "Countrywide's commitment will provide home financing for tens of thousands of home buyers, ranging from lower income Americans buying their first home to middle-income homeowners refinancing their mortgage at today's lower rates," said John H. Fulford, senior vice president in charge of Fannie Mae's Western Regional Office located here.
 "We have always enjoyed our opportunities to work with Countrywide, a recognized industry leader in terms of its innovation and use of state-of-the-art mortgage origination technology," Fulford said.
 The $1.25 billion of affordable-housing mortgages is the largest of its type to date and includes an innovative "second review" by Countrywide of mortgage applicants who do not initially qualify.
 The loan files of lower income and minority applicants declined at Countrywide's retail offices will receive a second review by a special underwriting unit at the firm's national headquarters here.
 Many of the affordable-housing loans will use Fannie Mae's Community Home Buyer's Program (CHBP). CHBP provides flexible underwriting criteria, including loans up to 95 percent of the home's value, with a provision for a 3 percent down payment by the borrower and a 2 percent contribution from gifts or other assistance programs.
 Countrywide Funding Corporation, the nation's largest mortgage banker, primarily originates and services single-family home loans. Founded in 1969, Countrywide employs more than 2,000 people at its Pasadena headquarters and in retail and wholesale branches across the country.
 Fannie Mae, the USA's Housing Partner, is a congressionally chartered, shareholder-owned company and the nation's largest investor in home mortgages.
 -0- 7/8/92 R
 /CONTACT: Gene Eisman of Fannie Mae, 202-752-6673, or Laura Lippman of Countrywide, 818-304-4422/
 (FNM) CO: Fannie Mae; Countrywide Funding Corporation ST: California IN: FIN SU:


KD -- DC009 -- 7399 07/08/92 12:15 EDT
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Publication:PR Newswire
Date:Jul 8, 1992
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