5.12.2000 ET

(CSRwire) Freddie Mac and the National Hispanic Housing Council today announced a $40 million initiative to expand new home construction, quality rehabilitation, and affordable homeownership opportunities for Latino families in California, Florida, Illinois, Texas and Massachusetts.

The two-year pilot is expected to help hundreds of Latino families -- who might otherwise be precluded from the home loan market -- obtain affordable purchase and rehabilitation mortgage financing. The new collaboration between Freddie Mac and NHHC was announced at the NHHC’s annual meeting in Miami.

“We are very excited to work with the National Hispanic Housing Council and its outstanding network of local non-profit organizations,” said Mike Coffey, Freddie Mac’s vice president of Expanding Markets. “With NHHC’s strong leadership, Freddie Mac has been able to fashion an exciting campaign to invigorate Latino neighborhoods across the country by stimulating housing construction and opening the doors to homeownership for hundreds of families.”

Freddie Mac and NHHC will identify local non-profit NHHC member organizations to develop and build single family housing projects through a combination of subsidies and other support. NHHC and its affiliates will also work with participating local communities to find ways to expedite construction and reduce project costs

The completed homes will be marketed to Latino families. Freddie Mac will work with lenders to provide a range of flexible mortgage products to ensure the participating families have access to affordable mortgage credit to complete the transaction. Freddie Mac will also provide guidance on best practices, as well as marketing and outreach support.

“The NHHC is proud to be affiliated with Freddie Mac on a Latino homeownership initiative. We are happy to be able to bring these resources to our communities and look forward to replicating this model in any community that needs this kind of housing investment,” said Ruth Pagani, executive director of the NHHC.

Freddie Mac is a stockholder-owned corporation established by Congress in support of homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage pass through securities and debt instruments in the capital markets. Over the years, Freddie Mac has opened doors for one in six homebuyers and more than two million renters in America.

The National Hispanic Housing Council (NHHC) serves as an identifier of local housing needs and problems by providing research, data analysis and strategic recommendations to those charged with responsibility of assisting the creation of public housing, expanding housing opportunities, opening housing markets, empowering communities, and bringing excellence to housing management. The NHHC also acts as a liaison among and between nonprofit, community development corporations, community action agencies, local institutions, public and private sector lenders, intermediaries, and other housing development resources.

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