FANNIE MAE HELPING HOUSING.Byline: GREGORY WILCOX Real Estate The Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. area's residential real estate sector got a much-needed dose of good news Friday with Fannie Mae's announcement of a five-year, $50 billion affordable housing investment plan. It's part of the agency's $2 trillion American Dream American dream also American Dream n. An American ideal of a happy and successful life to which all may aspire: Commitment, an effort focused on increasing homeownership nationwide. Fannie Mae Fannie Mae: see Federal National Mortgage Association. is the Federal National Mortgage Association, a publicly owned Publicly owned can refer to:
It's also the nation's largest nonbank non·bank adj. Of, relating to, or done by a business or an institution that is not a bank but performs similar services. financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company and is the largest source of mortgage financing, which explains its financial clout. In the last six years, Fannie Mae has poured about $20 billion into the two-county area, helping about 175,000 families buy homes. Residential real estate has been one of the economy's bright spots, although the San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. market will probably exhibit signs of a slowdown when October's sales counts are released by the Southland Regional Association of Realtors. This assistance program could help the market stay on track. ``We have one of the lowest homeownership rates in the county,'' said Barbara Zeidman, Fannie Mae's director for Los Angeles and Orange counties. She's right. About 68 percent of the nation's families can afford a home, compared with 48 percent in the Los Angeles area. Not only does homeownership benefit the economy, it has an uplifting effect on the entire community. ``Our communities are strong if you have participants called homeowners living in them,'' Zeidman said. One segment of the investment plan is the Teacher A-plus Mortgage. The program allows for down payments as low as 1 percent or $500. Qualifying is made easier through the use of flexible credit requirements. Fannie Mae also will continue to buy bonds issued by the state of California in conjunction with its Extra Credit Teacher Home Purchase Plan. This is a low-interest and down payment program that helps teachers in the two counties buy homes. Fannie Mae also created a new loan product call MyCommunityMortgage. These are flexible, high loan-to-value mortgages that also use the 1 percent or $500 down payment formula. ``This plan makes the housing market more affordable for the average family and increases investment into neighborhoods and urban cores,'' said Ted Chandler, vice president of housing and development for the corporation's Western regional office. These kinds of programs can have an uplifting impact on the economy. When someone buys a home they often continue the spending spree Noun 1. spending spree - a brief period of extravagant spending spree, fling - a brief indulgence of your impulses on new appliances and furnishings. ``Anything that can be done to add some zip to the economy is welcome,'' said Jack Kyser, chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the for the Los Angeles County Economic Development Corp. More information about the programs can be obtained by calling (800) 732-6643 or logging on to www.homepath.com. |
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