Fannie Invests $1MM in Thrift

Fannie Mae has invested $1 million in Broadway Financial Corp., a community-oriented savings bank that originates mortgages in south Los Angeles and an area known as "Mid-City."At Sept. 30, the institution was deemed "well capitalized" by thrift regulators. A Fannie Mae spokeswoman said the investment came out of the secondary giant's "CDFI Fund," which is used to aid small community institutions that operate in what she called "hard-to-finance" areas. Fannie Mae has invested in other depositories over the past few years. The investments tend to be in minority institutions. "We help them gain leverage in their communities," she said. In return for its investment, Fannie receives nonvoting preferred stock in Broadway, which is publicly traded. The stock bears a noncumulative dividend of 5% per year. Fannie Mae can be found on the Web at http://www.fanniemae.com.