Two years after kicking off a plan to help 10,000 Baltimore families buy or rent affordable homes, the Federal National Mortgage Association, Fannie Mae, said its programs have assisted 3,900 families so far.
Marking the second anniversary of House Baltimore-- a commitment of $750 million worth of mortgage purchases and other housing investments over five years -- Fannie Mae officials also announced Wednesday a $5 million loan to the city to help finance eight new housing developments.
The projects, some under development by nonprofit groups, will create more than 200 units of housing across the city.
Projects include rental apartments for the elderly and rehabilitated vacant houses for sale, said David K. Elam, director of the Fannie Mae Baltimore Partnership Office. The office oversees House Baltimore.
Since 1994, 3,900 families have used Fannie Mae products or programs to get affordable housing, such as a program tailored for city employees, one designed to boost homeownership in seven city neighborhoods and another that requires only a 3 percent down payment to buy a house.
Of those families, 48 percent had low to moderate incomes, nearly 40 percent were minorities and more than 50 percent were first-time homebuyers, Fannie Mae said.
"We are pleased to have helped so many people obtain affordable housing," said William E. Kelvie, Fannie Mae executive vice president. "What has occurred is a preview."
Besides the $5 million city loan, he said, Fannie Mae will make an initial $400,000 equity investment in Harbor Bankshares Corp., the largest minority-owned lender in Maryland.
The investment should allow the bank to expand its community mortgage lending, said Kelvie, who made his comments during a news conference Wednesday in the lobby of Harbor Bank on TTC West Fayette Street. The bank became one of Fannie Mae's newest approved lenders this year.
"I believe there is something prideful and beneficial about owning your own place, and we want Harbor Bank to be part of that," said Joe Haskins, president of Harbor Bank. "Our commitment is meeting the needs in this community."
Rep. Elijah E. Cummings, a 7th District Democrat who attended the news conference, said he would continue to support the efforts of Fannie Mae, a congressionally chartered, shareholder-owned company that purchases mortgages and repackages them as securities to sell to investors.
