Freddie Mac Joins LHFA In Louisiana Mortgage Initiative
SENATORS LANDRIEU, VITTER HAIL FREDDIE MAC, LHFA'S $36 MILLION
Statewide Mortgage Initiative Also Targets Police, Teachers, Low-Income Borrowers
New Orleans, LA – Senators Mary L. Landrieu (D-LA) and David Vitter (R-LA) joined Eugene McQuade, president of Freddie Mac (NYSE:FRE) and officials from the Louisiana Housing Finance Agency (LHFA) today to announce nearly $36 million in new below market 30-year fixed rate mortgages and $1 million in downpayment and closing costs assistance to promote recovery in federally designated hurricane disaster areas and foster homeownership opportunities for police officers, teachers, and qualified low-income borrowers.
Freddie Mac, one of the nation's largest investors in residential mortgages, is buying $36 million of LHFA tax-exempt mortgage revenue bonds for its investment portfolio as part of the $1 billion commitment it made last year to help finance the Gulf Coast's recovery from last year's storms. "This $36 million investment in affordable mortgages is very good news for Louisiana families, particularly those most devastated by Hurricanes Katrina and Rita. I want to thank Freddie Mac and others in the state for their work to provide affordable homeownership for our citizens," said U.S. Sen. David Vitter. "I'm particularly pleased to see that some of this funding will benefit first responders. Our first responders and other essential personnel play such a key role in the recovery of south Louisiana, and this will continue the momentum as we rebuild and revive Louisiana's communities." "This is $36 million in critical new mortgage funding for Louisiana," said Senator Mary L. Landrieu. "Our homes and neighborhoods may have been destroyed by the catastrophes of Hurricanes Katrina and Rita and the subsequent levee breaks, but the spirit of our people can never be taken away. Freddie Mac and the Louisiana Housing Finance Agency have stepped up as two of Louisiana's most reliable, willing and enthusiastic partners for rebuilding our storm-damaged homes and communities. I want to thank them for keeping their pledge to our families by fulfilling their public mission to keep homeownership strong." "Today's announcement marks a new opportunity for families across Louisiana to achieve home-ownership and for storm victims to repair, build and reinvigorate their communities," said Eugene McQuade, President and Chief Operating Officer of Freddie Mac. "I want to thank Senators Landrieu and Vitter, the LHFA and their colleagues for giving us the opportunity to work with them and to fulfill our Congressional mission to keep mortgage financing stable, liquid and affordable at such a critical time in Louisiana's recovery."
Altogether the new bond initiative will provide an estimated 300 borrowers with 5.35 percent or lower 30-year fixed rate mortgages that can be used to repair existing homes or purchase new ones. In addition, subsidies from the Police Foundation, LHFA and $1 million from the state of Louisiana's federal HOME grant are being used to subsidize special mortgage set-asides with even lower rates for police, teachers, and low-income borrowers. In some cases, borrowers may be able to qualify for 30-year fixed rate mortgages with rates as low as 3.85 percent.
"This effort, consistent with our Agency's mission, reflects the effectiveness of those strong partnerships necessary to rebuild our hurricane-devastated Louisiana," said Helena Cunningham, President of Louisiana Housing Finance Agency. "The LHFA is proud to be a part of this financing initiative and looks forward to the continued creativity in providing financing of our depleted housing stock." LHFA is giving special priority to federally designated disaster areas in order to add momentum to the state's storm recovery efforts and historically underserved parishes targeted for urban revitalization. The mortgages, are available on a first-come, first-serve basis through a list of participating lenders that can be found on LHFA's website (www.lhfa.state.la.us). In an effort to help more borrowers caught in the 2005 storms, LHFA is waiving its usual first-time homebuyer requirement and raising its cap on home repair loans from $15,000 to $150,000 under special provisions in the 2005 Katrina Emergency Tax Act.
To be eligible for the new mortgages, borrowers can earn no more than 140 percent of their area median income. Today's announcement builds on Freddie Mac's ongoing effort to rebuild the Gulf Coast communities devastated by Hurricanes Katrina and Rita.
Freddie Mac has also financed $120 million in Mississippi Home Corporation bonds, provided MHC with $900,000 to buy 35 travel trailer units for use as temporary housing for displaced families and more than $1 million for rental units and credit counseling to storm victims. In addition, Freddie Mac adopted emergency policies that temporarily suspended mortgage collections from many single and multifamily borrowers affected by the storm, assured forbearance for National Guard members involved in recovery operations, financed as much as $300 million in pre-storm loans closed on homes in federally-designated disaster areas, and joined with the Freddie Mac Foundation to donate $10 million to hurricane relief organizations.
For more information, contact Louisiana Housing Finance Agency at 225-763-8700 ext. 275.
Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing.
Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and nearly four million renters in America.
Statewide Mortgage Initiative Also Targets Police, Teachers, Low-Income Borrowers
New Orleans, LA – Senators Mary L. Landrieu (D-LA) and David Vitter (R-LA) joined Eugene McQuade, president of Freddie Mac (NYSE:FRE) and officials from the Louisiana Housing Finance Agency (LHFA) today to announce nearly $36 million in new below market 30-year fixed rate mortgages and $1 million in downpayment and closing costs assistance to promote recovery in federally designated hurricane disaster areas and foster homeownership opportunities for police officers, teachers, and qualified low-income borrowers.
Freddie Mac, one of the nation's largest investors in residential mortgages, is buying $36 million of LHFA tax-exempt mortgage revenue bonds for its investment portfolio as part of the $1 billion commitment it made last year to help finance the Gulf Coast's recovery from last year's storms. "This $36 million investment in affordable mortgages is very good news for Louisiana families, particularly those most devastated by Hurricanes Katrina and Rita. I want to thank Freddie Mac and others in the state for their work to provide affordable homeownership for our citizens," said U.S. Sen. David Vitter. "I'm particularly pleased to see that some of this funding will benefit first responders. Our first responders and other essential personnel play such a key role in the recovery of south Louisiana, and this will continue the momentum as we rebuild and revive Louisiana's communities." "This is $36 million in critical new mortgage funding for Louisiana," said Senator Mary L. Landrieu. "Our homes and neighborhoods may have been destroyed by the catastrophes of Hurricanes Katrina and Rita and the subsequent levee breaks, but the spirit of our people can never be taken away. Freddie Mac and the Louisiana Housing Finance Agency have stepped up as two of Louisiana's most reliable, willing and enthusiastic partners for rebuilding our storm-damaged homes and communities. I want to thank them for keeping their pledge to our families by fulfilling their public mission to keep homeownership strong." "Today's announcement marks a new opportunity for families across Louisiana to achieve home-ownership and for storm victims to repair, build and reinvigorate their communities," said Eugene McQuade, President and Chief Operating Officer of Freddie Mac. "I want to thank Senators Landrieu and Vitter, the LHFA and their colleagues for giving us the opportunity to work with them and to fulfill our Congressional mission to keep mortgage financing stable, liquid and affordable at such a critical time in Louisiana's recovery."
Altogether the new bond initiative will provide an estimated 300 borrowers with 5.35 percent or lower 30-year fixed rate mortgages that can be used to repair existing homes or purchase new ones. In addition, subsidies from the Police Foundation, LHFA and $1 million from the state of Louisiana's federal HOME grant are being used to subsidize special mortgage set-asides with even lower rates for police, teachers, and low-income borrowers. In some cases, borrowers may be able to qualify for 30-year fixed rate mortgages with rates as low as 3.85 percent.
"This effort, consistent with our Agency's mission, reflects the effectiveness of those strong partnerships necessary to rebuild our hurricane-devastated Louisiana," said Helena Cunningham, President of Louisiana Housing Finance Agency. "The LHFA is proud to be a part of this financing initiative and looks forward to the continued creativity in providing financing of our depleted housing stock." LHFA is giving special priority to federally designated disaster areas in order to add momentum to the state's storm recovery efforts and historically underserved parishes targeted for urban revitalization. The mortgages, are available on a first-come, first-serve basis through a list of participating lenders that can be found on LHFA's website (www.lhfa.state.la.us). In an effort to help more borrowers caught in the 2005 storms, LHFA is waiving its usual first-time homebuyer requirement and raising its cap on home repair loans from $15,000 to $150,000 under special provisions in the 2005 Katrina Emergency Tax Act.
To be eligible for the new mortgages, borrowers can earn no more than 140 percent of their area median income. Today's announcement builds on Freddie Mac's ongoing effort to rebuild the Gulf Coast communities devastated by Hurricanes Katrina and Rita.
Freddie Mac has also financed $120 million in Mississippi Home Corporation bonds, provided MHC with $900,000 to buy 35 travel trailer units for use as temporary housing for displaced families and more than $1 million for rental units and credit counseling to storm victims. In addition, Freddie Mac adopted emergency policies that temporarily suspended mortgage collections from many single and multifamily borrowers affected by the storm, assured forbearance for National Guard members involved in recovery operations, financed as much as $300 million in pre-storm loans closed on homes in federally-designated disaster areas, and joined with the Freddie Mac Foundation to donate $10 million to hurricane relief organizations.
For more information, contact Louisiana Housing Finance Agency at 225-763-8700 ext. 275.
Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing.
Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and nearly four million renters in America.
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