ABA partnership aids homeowners

The American Bankers Association and Fannie Mae announced May 5 that more than 21,000 families have been served during the first year of the partnership between the two organizations.

Since the partnership's inception last spring, more than 100 ABA-member banks have benefited from better pricing and easier access to Fannie Mae products and services.

"Through our partnership with Fannie Mae, our members have been able to take full advantage of the secondary market and obtain access to a variety of mortgage products and services that are aimed at helping them expand their business," said Donald G. Ogilvie, ABA president and CEO.

"For this reason, our partnership has been an unqualified success, and it is no surprise that so many of our members have signed on in such a short period of time."

Services available through the partnership include:

Desktop Underwriter, cutting-edge technology that can reduce origination costs by as much as $1,000 per loan;

flexible mortgage products that help banks meet Community Reinvestment Act goals;

education and training support on accessing the secondary market; and

a package of nontraditional mortgage products to help ABA members meet the diverse needs of their customer base.

"Helping ABA's members create innovative ways to meet their business and customer needs is part of Fannie Mae's mission of lowering costs and increasing homeownership opportunities for all Americans," said Jeffery Hayward, Fannie Mae's senior vice president for single-family mortgage business.

In 2003, a primary focus for the partnership will be to help participating ABA members expand their reach among underserved households.