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CLEVELAND, FANNIE MAE SET $300 MILLION INVESTMENT GOAL FOR AFFORDABLE HOUSING; CAVALIERS, FANNIE MAE FORM PARTNERSHIP

 CLEVELAND, Oct. 13 /PRNewswire/ -- Cleveland Mayor Mike White and Federal National Mortgage Association (Fannie Mae) (NYSE: FNM) Chairman and Chief Executive Officer James A. Johnson today unveiled HouseCleveland, a comprehensive investment strategy relying on the active participation of local lenders to finance $300 million in housing for the city's low-, moderate- and middle-income families over the next five years. The initiative is expected to result in the financing of more than 6,000 units of affordable housing.
 At the same time, the Cleveland Cavaliers National Basketball Association team joined the nation's largest source of home mortgage funds in a new partnership to foster neighborhood revitalization and increase homeownership in Cleveland.
 Work began today on the first joint project of the Cavaliers-Fannie Mae partnership, the rehabilitation of three homes for low- and moderate-income families in the City's Glenville neighborhood.
 Fannie Mae also announced that a third key element in its efforts to increase homeownership opportunities in Cleveland, the "Opening Doors" consumer education campaign, will begin Oct. 18. The campaign will use newspaper, television and radio advertisements to offer a free guide to homeownership and lists of local lenders and homeownership counseling agencies.
 "The Cavaliers and Fannie Mae are committed to addressing the city of Cleveland's housing needs. By joining forces, we have created a new 'dream team' that will work with the city of Cleveland to develop neighborhood renewal and homeownership opportunities for low- and moderate-income families in the city," Johnson said.
 White said, "With today's announcements, the city, the Cavaliers, Fannie Mae and local mortgage lenders join to form a winning team to help Cleveland's families achieve something very special -- homeownership."
 "Working to improve the quality of Cleveland's housing and neighborhoods is one of the Cavalier's highest priorities," said Tom Chestnut, president and chief operating officer of the Cavaliers.
 "With the nation's largest source of mortgages as a sponsor and partner, our commitment can be very positive for Cleveland. The partnership is an exciting and creative way to increase homeownership opportunities in our city," Chestnut said.
 Johnson said that the joint $300 million affordable housing investment goal with the city, combined with the joint Fannie Mae- Cavaliers efforts, will include home buying fairs and consumer education initiatives to increase homeownership opportunities and the construction and rehabilitation of single-family homes.
 The investment strategy, entitled HouseCleveland, is part of a broader effort for central city lending that Fannie Mae plans to carry out in U.S. cities over the next few years.
 HouseCleveland results from intensive efforts by White and other city officials and community members, working with Fannie Mae, to provide a catalyst for a broad range of neighborhood revitalization efforts, Johnson said.
 "Fannie Mae will tailor its affordable housing programs to respond to the specific needs of Cleveland and to effectively leverage scarce resources for housing," Johnson said.
 "Our goal is to overcome every barrier that stands in the way of doing as much business as possible in Cleveland's central city and its low- and moderate-income neighborhoods," Johnson said.
 HouseCleveland's principal goals are to:
 -- improve the affordability, availability, and variety of single-
 family housing mortgage products for all Cleveland residents;
 -- work with the city, local lenders and local non-profit
 organizations to stimulate homeowership opportunities through the
 use of down payment assistance programs and new local initiatives
 in rehabilitation lending and lease purchase mortgage products;
 and;
 -- assist rental housing efforts in Cleveland through equity
 investments by Fannie Mae directly into low-income rental housing
 tax credit-eligible projects.
 A $50,000 grant from the Fannie Mae Foundation to the Cleveland Housing Network (CHN) will fund the first joint Fannie Mae-Cavaliers project, the rehabilitation of three vacant homes. The homes are part of an on-going neighborhood revitalization project sponsored by the CHN's Homeward Program, in association with the Glenville Development Corporation. Upon completion, the homes will be sold to first-time home buyers.
 The CHN is an umbrella organization composed of 12 community-based nonprofit development corporations operating in a number of Cleveland neighborhoods. Johnson said that Fannie Mae will consider funding additional local nonprofit groups as part of future Fannie Mae-Cavaliers partnership initiatives.
 Earlier today, Cavaliers employees, along with employees from Fannie Mae's Midwest Regional Office in Chicago, were scheduled to participate in rehabilitating the three homes.
 The "Opening Doors" consumer education campaign starting in the Cleveland area on October 18 seeks to increase the levels of homeownership in the city.
 "First-time home buyers in the Cleveland area who respond to "Opening Doors" will receive materials that will answer their questions about whether they can afford a home, how to deal with credit problems, and where to receive individual consumer counseling if they need it," Johnson said.
 Fannie Mae's 1993 National Housing Survey indicated that a major barrier to homeownership is the lack of information about the process of purchasing a home as well as fear of the process itself.
 In addition to the free homeownership guide, "Opening Doors," consumers who call a toll-free number will receive a list of more than 30 mortgage lenders in the Cleveland area who are working in partnership with Fannie Mae on the outreach campaign.
 Consumers in the Cleveland area should call Fannie Mae's special number, 800-688-HOME. Spanish-speaking consumers may call 800-782-2729. The campaign is designed for people earning less than the area's median income, which is $42,300 in the Cleveland area.
 The primary goal of the Fannie Mae Foundation is to support national and local nonprofit organizations working to provide decent and affordable housing in communities throughout the United States. In 1993, the foundation will distribute $8.5 million in grants.
 The foundation's sole source of support is Fannie Mae, which is a congressionally chartered, shareholder-owned company and the nation's largest source of home mortgage funds.
 A list of lenders and counseling organizations participating in the "Opening Doors" campaign follows.
 OPENING DOORS CAMPAIGN
 PARTICIPATING MORTGAGE LENDERS
 Banc One Mortgage Corporation
 Charter One Bank F.S.B
 Citibank, F.S.B
 Commonwealth United Mortgage
 Countrywide Funding
 Fifth Third Bank
 First National Bank of Ohio
 First Nationwide Bank
 First Security Savings Bank, F.S.B
 GMAC Mortgage Corporation of PA
 Holland Mortgage Corporation
 Home Federal Savings Bank, Northern Ohio
 Horizon Savings Bank
 The Huntington Mortgage Company
 Knutson Mortgage Corporation
 The Leader Mortgage Company
 National City Mortgage/National City Bank
 North American
 Norwest Mortgage, Inc.
 Ohio Savings Bank
 Principal Mutual Life Insurance Company
 The Ravenna Savings Bank
 Residential Bancorp
 Schmidt Mortgage Company
 Sears Mortgage
 Society Mortgage/Society Bank
 Star Bank N.A.
 Third Federal Savings and Loan Association
 Union National Mortgage Company
 United National Bank & Trust Company
 PARTICIPATING CONSUMER COUNSELING ORGANIZATIONS
 Cleveland Housing Network
 Consumer Credit Counseling Service of NE Ohio, Inc.
 Cuyahoga Plan
 Fair Housing Center
 Family and Community Services of Catholic Charities
 Consumer Credit Counseling
 J.R. Coleman Outreach Center
 Living in Cleveland Center Inc.
 Lutheran Housing Corporation
 Neighborhood Housing Services of Cleveland
 Urban League of Greater Cleveland
 -0- 10/13/93
 /CONTACT: Gene Eisman of Fannie Mae (Washington), 202-752-6673, or Phyllis Salem of the Cleveland Cavaliers, 216-659-2231/
 (FNM)


CO: Federal National Mortgage Association; Cleveland Cavaliers ST: Ohio IN: FIN SU:

KD-MH -- DC019 -- 1676 10/13/93 12:28 EDT
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Date:Oct 13, 1993
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