HOUSING INDUSTRY PROFESSIONALS TEAM UP TO INCREASE HOMEOWNERSHIP OPPORTUNITIES FOR LATINO FAMILIES IN CALIFORNIA

Santa Clara, CA – A new initiative is being launched today to expand homeownership opportunities for Latino families in California. The initiative is a coordinated effort by Freddie Mac, the California Association of REALTORS^® (C.A.R.), Chase Home Finance, The National Association of Hispanic Real Estate Professionals (NAHREP), and the League of United Latin American Citizens (LULAC), with assistance from the California Housing Finance Agency, who have teamed up to increase real estate professionals' understanding of how to reach and serve the Latino homebuyer, and to help Latinos learn about homebuyer assistance programs that are offered through city, county and state housing agencies.

There continues to be a significant gap between minority (48 percent) and white (74 percent) homeownership rates in America. In California, only 43 percent of the Latino population are homeowners. Recent Freddie Mac research indicates that only one half of the gap between minority and white homeownership rates is explained by income, age of household and other known demographic factors. Fifty percent of Latinos still believe they need near perfect credit to obtain a mortgage, while 40 percent believe they need a 20 percent downpayment. This initiative will help dismantle some of those barriers by harnessing the strength of California's 150,000 REALTORS^®.

Through educational courses provided by C.A.R. and outreach and other educational opportunities offered by NAHREP and LULAC, California REALTORS^® will be better able to serve the Latino community and more Latino families will become aware of homeownership opportunities.

A major component of the initiative is a new course developed by Freddie Mac and Chase Home Finance. It will be offered through C.A.R. and NAHREP to educate real estate professionals on how to better serve the Latino homebuyer. The curriculum, "Effectively Serving the Latino Homebuyer," has been approved by the California Department of Real Estate (DRE) for two units of continuing education credit for REALTORS^®, and provides strategies for reaching and communicating with the Latino homebuyer as well as information on homeownership assistance programs available in the state. The first class was conducted today during California REALTOR^® EXPO 2004, C.A.R.'s annual trade show.

The California Housing Finance Agency is offering their down payment assistance programs to qualified borrowers and providing mortgage insurance. In addition, the LULAC will reach out to potential Latino homebuyers through workshops and homeownership fairs. The workshops will provide prospective homebuyers with information about the homebuying process, including how to access state and local downpayment assistance programs.

"We are excited that these industry leaders are working collaboratively to address key barriers to homeownership and to help more Latino families achieve the dream of homeownership," said Craig Nickerson, vice president of expanding markets for Freddie Mac. "Central to the initiative is the recognition of the challenges to homeownership Latino families often face, including language and cultural barriers, non-traditional credit, and a lack of experience with the homebuying process."

"C.A.R. has often played a leadership role in our industry and remains committed to increasing homeownership opportunities for all Californians," said C.A.R. President Ann Pettijohn. "It is our hope that this initiative will help our members to better meet the needs of Latino homebuyers throughout the state."

"Chase has an ongoing commitment to meet the home financing needs of the Hispanic community, both in this dynamic market and nationwide," said Paul Mullings, senior vice president and fair lending executive at Chase Home Finance. "We are pleased to join forces with C.A.R.'s network of real estate professionals and with Freddie Mac to help provide educational resources and direct access to Chase's broad range of home financing solutions for Latino homebuyers."

In January 2003, JPMorgan Chase announced the Chase Dream Maker Commitment^SM, a $500 billion pledge to provide home financing opportunities to Hispanics and other historically underserved segments nationwide. This commitment covers financing for buying and refinancing a home as well as obtaining a home equity loan or line of credit. To further support this commitment, Chase has developed a new suite of customized loan products and services, hired a diverse and bilingual sales staff, opened new retail mortgage offices in convenient locations and launched a National Housing Advisory Council comprised of leaders from minority and underserved segments.

Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds to mortgage lenders in support of homeownership and rental housing. Freddie Mac purchases mortgages from lenders and packages them into securities that are sold to investors. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than two million renters across America.

The California Association of REALTORS^® (http://www.car.org) is one of the largest state trade organizations in the United States, with more than 150,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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