Fannie Makes New 1st-Timer Pledge

Fannie Mae has set a new goal to help 6 million families -- including 1.8 million minority families -- become first-time homebuyers over the next 10 years.The new commitment means Fannie Mae will have to increase its annual financing of first-time homebuyers by 70% over the annual average of the past four years and double its annual financing of minority first-time homebuyers. To reach this goal, the giant secondary market agency is pledging to drive down the cost of originating a mortgage by $500, offer more flexible underwriting for recent immigrants, purchase more Community Reinvestment Act loans from banks, and transform the manufactured housing market. "We and our partners have bold ideas and big plans to work on the toughest housing problems facing America," said Fannie Mae chairman and chief executive Franklin Raines. Fannie Mae can be found online at http://www.fanniemae.com.