9.27.2000 ET

(CSRwire) Memphis Mayor Willie W. Herenton announced today a new $20 million public-private initiative that will make it easier for many low- and moderate-income families to buy and renovate homes throughout Memphis, especially in many older urban neighborhoods.

As part of the new urban rehabilitation initiative, Wells Fargo Bank is pledging to infuse $20 million into Memphis homeownership opportunities. To make this possible, Freddie Mac, one of the nation's largest mortgage investors, has agreed to purchase the bank's eligible innovative and affordable home loan products so that capital can be freed up to make additional mortgages to new homebuyers. The city will provide about $6 million in down payment assistance available through two programs.

As a result, more families will be able to afford homes in Memphis neighborhoods and carry the renovation costs as part of a 30 year, fixed-rate conventional mortgage. The Memphis initiative is expected to help residents purchase and renovate more than 200 homes over the next three years.

"This partnership with Wells Fargo and Freddie Mac provides citizens with access to the American Dream of homeownership. These partnerships support my Administration's efforts to revitalize this great City," said Mayor Willie W. Herenton.

"All too often we help people move into a house only to discover they don't have the resources needed to fix up the property. This new initiative will help Memphis families do both - buy a home with a low-down payment and obtain the funds for the repairs needed to make the home livable and attractive," said Craig Nickerson, vice president of community development lending at Freddie Mac. "We are delighted to work so closely with Mayor Herenton, Wells Fargo, and the Memphis Housing Resource Center to make this initiative - and affordable homeownership opportunities for more Memphis families -- a reality."

The City anticipates using the finished homes to showcase different Memphis neighborhoods, starting with the Greenlawn-Manassas community. "Today's announcement should encourage first-time homeowners and families wanting to live in a convenient location to downtown to invest in the Greenlawn-Masassas Community," stated Robert Lipscomb, Executive Director MHA and Director HCD.

The Memphis urban rehabilitation initiative specifically includes two flexible mortgage products that will enable families to buy homes with three percent down payments. In some cases, families will be able to put down as little as $1,000 or two percent of the purchase price from their own funds and cover the rest of the three percent down payment through grants, gifts, unsecured loans, or Individual Development Accounts. Borrowers must complete comprehensive pre- and post-purchase homeownership education and counseling to qualify.

"This partnership with the city of Memphis and Freddie Mac is an excellent opportunity to meet and exceed customer desires for quality affordable housing," said Andre Brooks, vice president of operations, Emerging Markets, Wells Fargo Home Mortgage. "Wells Fargo Home Mortgage believes that partnerships are a creative and innovative way to offer exceptional customer service by providing flexible and easy homeowner solutions. The Neighborhood Partnership Program is a win for everyone. The initiative will revitalize and add stability to neighborhoods with a rich sense of history and community."

"Through partnerships with institutions like Freddie Mac and Wells Fargo, homeownership training that will be provided by the Housing Resource Center will be a key component in the homeownership process. It puts people into homes and positions them for long-term success as homeowners," added Lipscomb.

The Memphis Housing Resource Center will provide essential support services to prepare families for the financial opportunities and obligations of homeownership. These services include a full range of financing, debt management, down-payment assistance, and education on the entire home buying process.

"The Memphis Housing Resource Center is pleased to be a partner in this initiative that will address the home rehabilitation needs for area families," said Michelle Wilson Bradley, executive director of the Memphis Housing Resource Center. "We encourage interested citizens who need this service to call us for more information at 901-529-8123."

Based in Des Moines, Iowa, Wells Fargo Home Mortgage is a subsidiary of Wells Fargo & Company. It is a leading originator and servicer of residential mortgages. With a presence in more than 1,200 mortgage stores and Wells Fargo bank locations serving all 50 states, Wells Fargo Home Mortgage operates the leading mortgage lending network in the country. Combined, its retail and wholesale lending operations provide funding for approximately one of every 15 homes financed annually in the United States.

Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds to mortgage lenders in support of homeownership and rental housing. Freddie Mac purchases mortgages from lenders and packages them into securities that are sold to investors. Over the years, Freddie Mac has opened the doors for one in six homebuyers and two million renters across America.

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