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U.S. Representative Melissa Hart, Councilwoman Valerie McDonald, and Fannie Mae to Announce New $5 Million Initiative in Pittsburgh Metropolitan Area to Put More Women on the Path to Homeownership

U.S. Representative Melissa Hart, Councilwoman Valerie McDonald, and Fannie Mae to Announce New $5 Million Initiative in Pittsburgh Metropolitan Area to Put More Women on the Path to Homeownership

Published 02-21-01

Submitted by Fannie Mae

In an effort to increase awareness of homeownership opportunities for women, U.S. Representative Melissa Hart (R-PA), and Councilwoman Valerie McDonald today joined representatives from the McAuley Institute, a national housing resource organization sponsored by the Sisters of Mercy of the Americas, Fannie Mae (FNM/NYSE), the nation’s largest source of financing for home mortgages, and other housing partners to announce a new $5 million Women-Headed Households Initiative. The Initiative, targeted to those living in Allegheny, Beaver, Butler, Fayette, Washington, and Westmoreland Counties, will help women overcome barriers to homeownership through educational workshops, credit counseling, and down payment and closing cost assistance.

"Many women dream of owning a home and having the independence and security that homeownership can provide for them and their families," said Rep. Hart, co-chair, Women-Headed Households Initiative in Pennsylvania. "Through the Women-Headed Households Initiative, Fannie Mae and its lender and non-profit partners will help ensure that women gain access to the many advantages of homeownership."

"Information is power, and this partnership to provide women with the facts they need to realize the American Dream of homeownership is a welcomed initiative," said Councilwoman McDonald, co-chair, Women-Headed Households Initiative in Pennsylvania. "This collaborative effort, leveraged by private resources, will help women in the Pittsburgh area explore homeownership as an alternative to renting."

Women-headed households comprise a growing segment of today’s housing market. According to Fannie Mae, by the year 2010, the number of these households is projected to increase to almost 31 million – nearly 28 percent of all households in the country. Despite this growth, only half the women who head their households own their own homes.

McAuley Institute is working with Fannie Mae as part of its national Make It Your Own ™ Women’s Homeownership Campaign, a comprehensive effort to assist low-income women to attain the benefits of stable, affordable homeownership. Through the Make It Your Own Campaign, McAuley will provide low-interest loans to finance affordable home development through a revolving $12.1 million loan fund. In addition, they will conduct focus groups among women to learn more about the kinds of resources needed in order to bridge the homeownership gap, and will develop outreach and marketing materials to reach women-headed households.

"We look forward to helping many more women build wealth and security for themselves and their families through this important ministry of the Sisters of Mercy," said Sister Georgine Scarpino, RSM, president of the Sisters of Mercy Regional Community of Pittsburgh.

Fannie Mae’s Community Based Lending Division is supporting local partners in their development of home-buying workshops tailored to women home buyers. The company intends to purchase up to $50 million in affordable mortgage products in connection with the Make It Your Own Campaign as a first step under its national Women-Headed Households Initiative to work with lenders, city officials, community organizations, and other partners to help increase homeownership opportunities and housing support for women-headed families.

Fannie Mae’s Women-Headed Households Initiative seeks to assist 40,000 women in achieving homeownership, as part of the company’s larger American Dream Commitment goal to work with industry partners to reach 1 million women-headed households by 2010. Under the American Dream Commitment, Fannie Mae has pledged to invest $2 trillion to close homeownership gaps for underserved populations. In addition to the Pittsburgh area, pilots are under development in other locations around the country.

"There is a great need to increase the homeownership rate among women, and this public-private partnership is an important first step towards meeting that goal," said Francine B. Cameron, deputy director of Fannie Mae’s Pittsburgh Partnership Office. "Fannie Mae will work closely with its partners to ensure that more women have access to vital information about the homeownership process."

Several non-profit organizations and lenders are contributing expertise and resources to the Initiative. The Urban League will provide credit counseling in the six counties and other partners, including the Manchester Citizen’s Corporation, Mon Valley Providers Council, Northside Coalition for Fair Housing, Community Action Southwest, and the Allegheny County Family Support Center will provide full-day workshops on the home-buying process, how to save, and home maintenance. The first workshop, to be held in Allegheny County, will take place in April.

The lender partners, Fidelity Bank, Mellon Bank, and Three Rivers Bank, will address the unique housing needs of women by modifying or clarifying existing underwriting guidelines in order to recognize alternative income and credit history, and liabilities such as the financial effects of divorce and lack of traditional credit. For example, proceeds from part-time or multiple-job employment, alimony or child support, foster-care services, and rental payments received from boarders may be used to help qualify for a loan. Credit guidelines have also been amended to reduce the income required to qualify for a mortgage, decrease the amount of cash required for a down payment and closing costs, and allow more lenient qualifying terms.

"Women make up a large underserved population when it comes to mortgage financing," said Michael Mooney, executive vice president/chief lending officer, Fidelity Bank. "We look forward to working with our many partners to help more women realize their dream of owning a home."

The Women-Headed Households Initiative is just one of many alliances created by Fannie Mae under "HousePittsburgh," a five-year, $2 billion investment plan to finance affordable housing for 24,000 families in Allegheny, Beaver, Butler, Fayette, Washington, and Westmoreland Counties.

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