Bank One Commits $12.5B to Low-Mod Projects

Phoenix-based Bank One has announced a $12.5 billion commitment to finance, in partnership with Fannie Mae, affordable housing and rehabilitation projects in Arizona's rural areas, Indian reservations, and trust lands.The initiative will target low- to moderate-income families among minorities (who will receive about 25% of the total fund), woman-headed households, immigrants, and people with disabilities. Bank One said it is "lowering the threshold" to homeownership for these borrowers by providing customized products that require little or no downpayment, feature flexible credit requirements, and do not require mortgage insurance. Financing applies to both single-family and multifamily properties. Initially funds will be offered in Phoenix, Detroit, and Chicago, and then will be expanded into other areas in Arizona and 14 other states where the bank operates. In cooperation with Fannie Mae and local nonprofits, the bank will also provide homeownership counseling and education.