The Federal National Mortgage Association (Fannie Mae), which bankrolls a large chunk of all the mortgages issued in the U.S., intends to step up its activities in the city of Chicago by 10 to 15 percent over the next seven years, the association said Thursday.
Fannie Mae Chairman James Johnson was joined by Mayor Richard M. Daley and his brother, William Daley, a member of the Fannie Mae board, in announcing the Chicago initiative at Fannie Mae’s newly expanded regional office at 1 S. Wacker Dr.
Johnson said the program aims to make a “very substantial difference in homeownership throughout the city.”
The effort, which includes bringing in a handful of staff members to run a “partnership” office to work with the city, local lenders and community groups, is part of Fannie Mae’s nationwide program to step up the amount of money it makes available to finance homes for people in need between now and the year 2000.
In March, Fannie Mae set a goal of $1 trillion by century’s end in targeted loan commitments to urban neighborhoods, low- and moderate-income people, minorities, immigrants and others with special housing needs. That figure would represent a 17 percent increase over the past pace of mortgage activity.
The special Chicago office is the third of 25 such offices Fannie Mae plans to open around the country. Offices already have opened in Cleveland and Baltimore.
Johnson noted that Fannie Mae has had a regional office in Chicago since 1954, but he said William Daley, who has been on the board of directors for about a year, “has helped us see even more clearly what we can do in Chicago.”
Mayor Daley applauded the initiative, saying it would help “stabilize and strengthen homeownership” among low- and moderate-income people in the city.
Fannie Mae-supported lending in the city amounted to $1.3 billion last year, so the $10 billion goal over seven years would be about $900 million ahead of that pace.
Fannie Mae plans a promotional campaign to stimulate demand further. It already offers programs providing mortgages with a 3 percent down payment and flexible underwriting standards on some of the loans it backs.
The corporation, which is not tax-supported, was set up as a government-chartered agency in 1938 to stabilize the housing finance system. It doesn’t issue loans directly, but buys them from originating lenders and repackages them for sale to investors.
