CitiMortgage and Fannie Mae to Announce New Partnership to Provide $1.4 Billion in Affordable Mortgage Lending to Washington, DC and Baltimore Metropolitan Area Families.

Business Editors

WASHINGTON--(BUSINESS WIRE)--Sept. 21, 2000

Thousands of low- and moderate-income, minority, new immigrant, and other underserved households in Washington, DC and the Baltimore metropolitan area will benefit from a new partnership announced today by Steve Stein, executive vice president of CitiMortgage, Inc., a subsidiary of Citigroup (NYSE:C) and Adolfo Marzol, executive vice president and chief credit officer of Fannie Mae (NYSE:FNM
FNM Free National Movement (Bahamas)
FNM Foot and Mouth ), the nation's largest source of financing for home mortgages.

The partnership will provide $1.4 billion in affordable mortgage lending in Washington, DC and the Baltimore area over the next five years.

"There is a critical need to increase the homeownership rate among minorities and new immigrants in Washington, DC and the Baltimore region," said Deputy Mayor Price. "I commend CitiMortgage and Fannie Mae for joining forces to make the American dream a reality for more hard-working Washington, DC and Baltimore families, including those who are newcomers to this country."

"Citibank recognizes the tremendous growth in the number of low- and moderate-income individuals in Washington, DC and the Baltimore metropolitan area wanting to purchase homes, along with the need to make more affordable mortgage products available to them," said C. Mack, group president of Citibank's Central Region. "We are pleased that CitiMortgage and Fannie Mae have joined forces in this historic partnership and look forward to supporting their efforts through our Citibank Financial Centers located in this area."

"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 CitiMortgage's Stein. "Through this Washington, DC and Baltimore area partnership, we will be able to increase our commitment to provide mortgage tools for low- and moderate-income individuals, as well as to offer mortgages that encourage neighborhood revitalization, increase homeownership opportunities for new immigrants and minorities, and provide funds for the renovation of older housing."

This commitment represents a major increase in the affordable lending business of CitiMortgage Inc., 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 at least $1.4 billion in innovative and affordable mortgage loans.

At the center of this partnership is the expansion and introduction of flexible mortgage products that address the unique needs of low- to moderate-income borrowers, minority home buyers, and new immigrants.

"Fannie Mae is proud to join CitiMortgage in this new initiative," said Fannie Mae's Marzol. "CitiMortgage and Fannie Mae share a deep commitment to creating homeownership opportunities for more residents of Washington, DC and the Baltimore region with a special emphasis on new immigrants, minorities, and low- and moderate-income families."

This partnership is part of a $12 billion national initiative to provide flexible mortgage products through all CitiMortgage affiliates and their business partners. In addition to Washington, DC and the Baltimore region, the initiative includes concentrated marketing efforts in five other major metropolitan areas including: the New York City/Tri-State Area; the Miami/South Florida area; Chicago; Los Angeles/Orange County; and the San Francisco Bay Area.

This innovative partnership is part of Fannie Mae's "House Washington, DC" and "HouseBaltimore" investment plans. House Washington, DC is a four-year, $1 billion investment plan that aims to invest in community development, neighborhood revitalization, and lowering the cost of homeownership.

HouseBaltimore is a five-year, $4.2 billion investment plan to provide affordable housing to 40,000 greater Baltimore families. Both investment plans are part of the company's nationwide $2 trillion American Dream Commitment to increase homeownership rates and serve 18 million targeted families by the end of the decade.

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 Urban League (NUL), and the National Association of Real Estate Brokers (NAREB - Realists).

Locally, CitiMortgage and Fannie Mae will join forces with key Washington, DC and Baltimore organizations to reach targeted audiences. Partnerships in Washington, DC exist with the Greater Washington Urban League, Council of Latino Agencies, and the Latino Economic Development Corporation.

In Baltimore, partnerships exist with the Real Estate Brokers of Baltimore and the Maryland Center for Community Development.

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 and new immigrant home buyers and to promote homeownership in Washington, DC and the Baltimore region.

CitiMortgage also will utilize its alliance with Home Free USA, a nonprofit housing counseling agency, and 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 100SM mortgage - an affordable housing pilot available to
borrowers with incomes at or below 100 percent of the area median income. The
Community 100 requires a 3 percent borrower contribution, which can be used
toward closing costs. Sources of the 3 percent contribution can come from a
variety of flexible sources, including grants and unsecured/secured loans from
nonprofit organizations, government agencies, or employers.

-- 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 and part-time employment. It also allows for flexible
consideration of cash-on-hand and non-traditional sources of credit.

-- 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. (Available in
Baltimore only)

-- Working MortgageSM - 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.

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 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, House Washington, DC and HouseBaltimore, consumers may call the Fannie Mae Consumer Resource Center at 800/7-FANNIE (800/732-6643), Monday through Friday, from 9:00 a.m. to 5:00 p.m. EDT.

CitiMortgage is a subsidiary of Citigroup (NYSE:C), the premier global financial services company, providing 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 can 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 $2.9 trillion of mortgage financing for over 35 million families.

More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.

Community 100 and Working Mortgage 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."