CitiMortgage and Fannie Mae Announce New Partnership to Provide $12 Billion in Affordable Mortgage Lending.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 22, 2000

Thousands of low- and moderate-income and minority families, new immigrants, underserved households, and other emerging markets around the country will benefit from a new partnership announced today by Carl Levinson, chairman and chief executive officer of CitiMortgage, Inc., a member of Citigroup (C/NYSE) and Franklin D. Raines, chairman and chief executive officer of Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages.

The partnership will provide $12 billion in affordable mortgage lending over the next five years.

"Fannie Mae is proud to join with CitiMortgage in this initiative," said Raines. "CitiMortgage and Fannie Mae share a deep commitment to creating homeownership opportunities for low- and moderate-income and minority communities."

"Our two companies are focused on the same mission of helping families achieve the dream of homeownership and making a tangible difference in the communities we serve," said Levinson. "Through this partnership, we will be able to increase our commitment to provide mortgage tools for those at or below 80 percent of the area median income, along with being able to offer mortgages that encourage neighborhood revitalization, increase homeownership opportunities for minorities, and provide funds for the renovation of older housing."

This commitment represents a major increase in the affordable lending business of CitiMortgage and will transform the way the company serves emerging markets throughout the country. To achieve this goal, CitiMortgage has committed to originate and Fannie Mae has committed to purchase $12 billion in innovative and affordable mortgage loans. At the center of this partnership is the expansion and introduction of flexible mortgage initiatives that address the needs of low- to moderate-income borrowers, minority home buyers, and new immigrants.

Flexible homeownership lending initiatives will be offered nationally through all CitiMortgage affiliates and their business partners, with concentrated marketing efforts in six major metropolitan areas including: the New York City/Tri-State Area; the Baltimore/Washington area; Chicago; Miami/South Florida; Los Angeles/Orange County; and the San Francisco Bay Area.

To ensure the success of this new commitment, CitiMortgage and Fannie Mae will join forces with key national organizations to reach targeted markets. A formal partnership exists with the Local Initiatives Support Corporation (LISC), and new partnerships are being forged with the National Association of Hispanic Real Estate Professionals (NAHREP), the National Association of Real Estate Brokers (NAREB -- Realtists), and the National Urban League (NUL). These organizations, and others to be added throughout the five-year partnership, will work with CitiMortgage and Fannie Mae to develop and implement marketing strategies to increase lending to minority home buyers and to promote homeownership in urban areas. CitiMortgage also will utilize its alliance with Revelation America, Inc., an African-American church-owned Internet company involving more than 400,000 faith-based organizations, to provide homeownership opportunities.

Unique mortgage products to be offered under this initiative include:

CitiAffordable Mortgage Program and CitiAffordable Purchase Assistance Program - offer low down payment options and flexible qualifying criteria. These marquee CitiMortgage products take into consideration the fact that lower-wealth borrowers experience significant challenges in accumulating funds for down payment and closing costs.

Community 100 Mortgage(SM) - an affordable housing pilot available to borrowers with income at or below 100 percent of the area median income. The Community 100 requires a 3 percent borrower contribution, which can be used towards closing costs. Sources of the 3 percent contribution can come from a variety of flexible sources, including grants and unsecured/secured loans from non-profit organizations, government agencies, or employers.

HomeStyle(R) Rehabilitation Mortgages - allows borrowers to obtain one mortgage loan for the purchase and the repair or renovation of a home, based on what the property will be worth after the work is completed.

Timely Payment Rewards(SM) - allows borrowers with past credit difficulties to obtain a mortgage rate up to two percent lower than credit-impaired borrowers typically pay. The mortgage rate is automatically reduced an additional one percent after 24 months of timely payments.

Working Mortgage(SM) - offers special down payment and flexible qualifying guidelines to borrowers who set up an automatic deduction of the mortgage payment that matches the timing of the borrower's weekly or biweekly paycheck. This automatic deduction results in faster amortization of the mortgage, which accelerates the build up of equity.

Flexible Qualifying Guidelines for New Immigrants -- allows working non-permanent resident immigrants to participate in a full array of flexible mortgage products. Considers alternative sources of qualifying income such as boarder income, cash-on-hand and part-time employment.

CitiMortgage, Inc. specializes in nationwide residential home mortgages through retail, wholesale, telesales and corporate loan origination channels. CitiMortgage and its affiliates rank among the Top 10 mortgage originators nationwide. In 1999, origination volume was $18.3 billion and servicing volume was $90 billion, respectively. CitiMortgage is an Equal Housing Lender.

For more information about this new initiative call CitiMortgage at 1-800-848-1180, Monday through Friday, from 8:00 a.m. to 7:00 p.m. EDT. For more information on Fannie Mae's affordable mortgage products, consumers may call the Fannie Mae Consumer Resource Center at 1-800-7-FANNIE(1-800-732-6643), Monday through Friday, from 9:00 a.m. to 5:00 p.m. EDT.

Citigroup (NYSE:C), the most global financial services company, provides some 100 million consumers, corporations, governments and institutions in 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. The 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, CitiFinancial and Primerica under Citigroup's trademark red umbrella. Additional information may be found at: www.Citigroup.com.

Fannie Mae 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. Over the past 31 years, Fannie Mae has provided nearly $2.8 trillion of mortgage financing for over 34 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.

Community 100, Working Mortgage and Timely Payment Rewards are service marks of Fannie Mae; Homestyle is a registered service mark of Fannie Mae. Unauthorized use of these marks is prohibited.

Style Usage: Fannie Mae's Board of Directors has authorized the company to operate as "Fannie Mae," and the company's stock is now listed on the NYSE as "Fannie Mae." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."