Friday July 9, 2:23 pm Eastern Time
Company Press Release
SOURCE: PMI Mortgage Insurance Co.
PMI Announces Major Expansion of Native American
Lending Effort
SAN FRANCISCO, July 9 /PRNewswire/ -- PMI Mortgage Insurance Co. today announced that it would increase to $65 million, from $35 million, its commitments to insure low downpayment mortgages for members of American Indian tribes. The commitments are part of agreements PMI has reached, or are awaiting final approval, with the Chickasaw Nation, the Choctaw Nation of Oklahoma, Citizen Potawatomi and the Cherokee Nation. In addition PMI announced that it has opened negotiations with two New Mexico-based Indian tribes with the intention of issuing multi-million dollar mortgage insurance commitments to each of the tribes within the near future.
PMI's announcement was made at the recently concluded Shared Visions Native American Homeownership and Economic Development Summit, sponsored by the U.S. Department of Housing and Urban Development and held at the Pine Ridge Indian Reservation, Pine Ridge, South Dakota. PMI was a co-sponsor of the event, which featured a visit and speech on homeownership and economic development by President Clinton.
''We are delighted to be working with President Clinton and Secretary Cuomo in expanding homeownership opportunities for Native Americans,'' said W. Roger Haughton, Chairman and CEO of PMI. ''To date PMI has insured over 80 mortgages to Native Americans under our existing commitments, with an additional 100 loans in process. The expansion of our commitment will permit us to open the door to homeownership for many more Indian families and we are pleased and proud to be able to do that.''
PMI also announced a $25,000 grant to the National American Indian Housing Council (NAIHC) to develop a homeownership education course specifically geared to the needs of Native Americans. The course is being developed by the NAIHC and will be distributed to their members, which include the Housing Authorities for American Indian tribes across the U.S.
Under the Native American mortgage insurance initiative PMI agrees to insure loans that require as little as a one percent downpayment from the home buyer with flexible underwriting guidelines and risk shared between the Indian tribes and PMI. The Native American tribes are able to utilize funds received under the Native American Housing Assistance and Self-Determination Act (NAHASDA), enacted in 1996, to fund their obligations under the risk-sharing agreement with PMI. The risk-sharing agreement permits the tribes to leverage their NAHSDA funds to assist a greater number of tribal members to achieve homeownership.
PMI's commitment to Native American tribes is to also help them become stand-alone mortgage entities with access to capital markets and the agencies. Through PMI's partnership with First Americans Mortgage Corp. in Overland, Kansas, a totally unique delivery system for mortgage loans has emerged. First Americans Mortgage, a Native American company, works with each Indian nation to develop the expertise necessary to work with prospective home buyers. In doing so, the home buyer works with members of their own tribe to begin the application process and become pre-qualified. The loans are then sent to First Americans Mortgage for processing, closing and funding. PMI underwrites each loan for investment quality for sale to Freddie Mac. Under this process, the tribes are empowered to develop valuable mortgage origination experience so that they can one day sell their loans directly on the secondary market. Such is the case with the Citizen Potawatomi tribe in Shawnee, Oklahoma. First National Bank of Shawnee is 100 percent owned and managed by the Citizen Potawatomi Nation, and is the only Native American bank that is federally chartered and managed by Native Americans. Moreover, with PMI's assistance, several of the tribes are establishing and running their own home buyer counseling programs that feature pre-purchase, post-purchase and long-term credit counseling for their members.
In addition, PMI is currently working with First Americans Mortgage and Fannie Mae to develop programs that will assist underserved Native Americans living in metropolitan settings. Plans call for the development of affordable housing initiatives utilizing Indian Centers located throughout the United States.
First Americans Mortgage Corporation is a subsidiary of AmeriResource Technologies, Inc. (OTC Bulletin Board: ARET - news) with corporate offices located in Overland Park, Kansas. FAMC is a Native American lending and consulting company dedicated to supplying Native Americans with high quality, safe and affordable housing.
The National American Indian Housing Council is a 501 (c) 3 organization representing tribal housing organizations nationwide. It operates a national technical assistance and training program as well as the Native American Housing Resource Center in Washington, DC, through an appropriation from the Congress, administered by HUD.
PMI Mortgage Insurance Co., with headquarters in San Francisco, is the second largest private mortgage insurer in the United States based on first quarter 1999 new insurance written. PMI together with its parent company, The PMI Group, Inc. (NYSE: PMA - news), and its corporate affiliates, is a leader in risk management technology, and provides various products and services for the home mortgage finance industry, as well as title insurance.
SOURCE: PMI Mortgage Insurance Co.
More Quotes
and News:
AmeriResource Technologies Inc (OTC BB:ARET - news)
The PMI Group Inc (NYSE:PMA - news) |
