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Fannie Mae to Invest in New York National Bank in an Effort to Expand Lending Opportunities for Underserved Community

Fannie Mae to Invest in New York National Bank in an Effort to Expand Lending Opportunities for Underserved Community

Published 07-07-00

Submitted by Fannie Mae

Fannie Mae (FNM/NYSE), the nation’s largest source of financing for home mortgages, today announced a $670,000 equity stock-purchase investment in New York National Bank, a minority-owned financial institution in the South Bronx. U.S. Representative Jose Serrano (D-NY), joined representatives from New York National and Fannie Mae to announce this Community Development Financial Institution (CDFI) Initiative investment, which will enhance the bank’s ability to address the lending and financial services needs of underserved populations residing in the South Bronx.

"This investment in New York National Bank will provide for a significant expansion of its services and products for low- and moderate-income families throughout the Bronx," said Rep. Serrano. "I applaud Fannie Mae’s investment in the Bronx, and look forward to continuing to work with Fannie Mae’s New York Partnership Office to ensure that the affordable housing needs of families in New York are met."

Investments in community-focused lenders are part of Fannie Mae’s commitment to fight discrimination and provide low- and moderate-income families with greater access to affordable housing opportunities. Under the company’s $2 trillion American Dream Commitment, Fannie Mae recently expanded its CDFI Initiative CDFI initiative with a goal of investing $100 million by the end of the decade.

New York National Bank is a minority-owned bank located in the South Bronx and serving a largely African American and Hispanic population with low- to moderate-incomes.

"Community-based banking has been a very successful and rewarding business for us," said Serafin Mariel, president of New York National. "Thanks to Fannie Mae’s investment, we will be able to broaden our range of products and services to meet the diverse needs of our customers."

"We are confident that New York National will continue to make a significant impact on its community, and that our partnership will enable us to expand affordable homeownership and rental opportunities here in the South Bronx" said Naomi Bayer, director of Fannie Mae’s New York Partnership Office. "Fannie Mae is excited to play a role in ensuring the continued success of this financial institution."

Through investments in community lenders such as New York National, under its CDFIommunity Development Financial Institution (CDFI) Initiative, Fannie Mae is:

increasing affordable housing opportunities for persons living in underserved markets;
bolstering the economic development of low-income areas, thereby contributing to neighborhood stability through increased employment opportunities;
promoting fair lending and increasing the participation of minority and women-owned lenders;
serving as a catalyst to attract financing of other potential investors, particularly those located within the CDFI’s targeted market; and,
forging new relationships that will help the company be more effective in serving unmet housing needs.
Fannie Mae’s investment in New York National is part of "House New York," a five-year, $21 billion investment plan to finance affordable housing for 270,000 families in New York and its four surrounding counties.

For more information on House New York and other Fannie Mae mortgage products, consumers may call Fannie Mae’s Consumer Resource Center at 1-800-7-FANNIE (1-800-732-6643), Monday through Friday, from 9:00 a.m. to 5:00 p.m. EDT.

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