Freddie Touts 2 Affordable Housing Initiatives

Two new affordable housing initiatives aimed at increasing urban homeownership have been announced by Freddie Mac.In New Orleans, the company has formed an alliance with the city and the AFL-CIO Housing Investment Trust to launch a $20 million revitalization program in several historic districts by providing various low-downpayment mortgage products. Under the program, "At Home in New Orleans," 50 homes will be initially targeted by the city and local nonprofit organizations for rehabilitation, with a long-term goal of building or rehabilitating up to 500 homes. Freddie Mac will buy up to $20 million of mortgages originated by local lenders and repackage them into securities, which will be purchased by the AFL-CIO Housing Investment Trust. The second initiative, in Los Angeles, will offer $15 million of low-downpayment loans under flexible underwriting criteria with the goal of increasing minority homeownership in south central Los Angeles. Freddie Mac will team up with Broadway Federal Bank FSB and Family Savings Bank FSB to make the loans available through various affordable mortgage products, including Freddie Mac's new Community Gold. "Under Community Gold, borrowers who have completed a comprehensive homeownership education program can move into a home with as little as 3% of the home price as the downpayment," Freddie Mac said. Freddie Mac's website address is http://www.freddiemac.com.