Wednesday September 16, 11:43 am Eastern Time
Company Press Release
First Americans Signed to Originate $10 Million of Oklahoma Native American Pilot Program for the Housing Authority of the Choctaw Nation of Oklahoma
LENEXA, Kan.--(BUSINESS WIRE)--Sept. 16, 1998--First Americans Mortgage Corp.(FAMC), a subsidiary of AmeriResource Technologies Inc. (OTC BB:ARET), announced Wednesday that during a press conference held on Tuesday, Sept. 15 at the Choctaw Nation tribal complex, Durant, Okla. they signed to originate $10 million of the Oklahoma Native American pilot program.
The program, Choctaw Homebuyers Advantage Program (CHAP) is the second such commitment secured by First Americans.
Currently FAMC is originating a $10,000,000 commitment under this program with the Chickasaw Nation. The Choctaw Nation and the other agencies released the following joint press release:
Choctaw Nation Offers Advantage to Homebuyers
Thanks to teamwork between the Choctaw Nation and several other agencies, a new home mortgage program will enable homebuyers to purchase or build for as little as 1% down.
''We will begin the Choctaw Homebuyers Advantage Program (CHAP) assistance to help Choctaws statewide,'' said Chief Gregory E. Pyle.
The 1996 Congressional action, Native American Housing Assistance and Self-Determination Act (NAHASDA) made it possible to begin this new Choctaw Nation program. Freddie Mac [NYSE:FRE - news], PMI Mortgage Insurance Co., First Americans Mortgage Corp. and Washington Mutual have signed an agreement with the tribe to provide the opportunity to Choctaws to purchase homes at such a tremendous financial advantage.
''We are one of the first in the Nation to leverage funds like this, using NAHASDA to have the ability to use self-determination to offer this advantage to homebuyers,'' said Chief Pyle.
''This is the new dawn of the Housing Authority of the Choctaw Nation. We no longer have our hands tied to work only with low income homeowners. Now in addition to being able to expand programs to help house those low income families, we can truly be a housing assistance program for virtually all Choctaw families. This is definitely an advantage for the Choctaw people,'' said Chief Pyle.
''One way the CHAP assistance program will be a long-term advantage is that the money loaned out to higher income families will come back to us through payments, with interest, creating additional resources to benefit more low income families with housing,'' said Choctaw Nation Assistant Chief Mike Bailey.
''The tremendous leadership of Chief Pyle, combined with the full support of the Tribal Council and Housing Board of Commissioners, has put the Housing Authority of the Choctaw Nation of Oklahoma in a position to provide more home ownership opportunities for more Choctaws than at any time in our history. We are very excited about the partnership with PMI, Washington Mutual, First Americans and Freddie Mac. We look forward to a long working relationship in which the Choctaw people will be the ultimate benefactor,'' said Russell Sossaman, executive director of the Choctaw Housing Authority.
Chief Pyle said the Housing Authority is also exploring the possibility of expanding the program to Choctaws living outside Oklahoma.
Freddie Mac is providing the $10 million necessary to finance the loans, with PMI working to insure the loans, and First Americans originating the loans in conjunction with Washington Mutual.
By using the CHAP program, Choctaws living in Oklahoma could purchase a home with a down payment of 3%. There is an option of taking a second loan on 2% of that down payment and only paying the 1%. This 2% would be a low percentage interest loan paid to Choctaw Nation with the home mortgage payment made to Washington Mutual.
Remember, with CHAP, the Choctaw Advantages are:
-- Down payment assistance
-- As little as 1% down
-- No maximum income guideline
-- Enhanced credit flexibility
-- Maximum $227,150 loan, no minimum loan
-- Program is available statewide in Oklahoma for Choctaws
PMI Mortgage Insurance Co., based in San Francisco, is the third largest private mortgage insurer in the United States. In addition to private mortgage insurance, PMI, with its parent company, The PMI Group and corporate affiliates, is a leader in risk management technology, and provides various products and services for the home mortgage finance industry including title insurance.
''We are proud to work with our partners to assist Choctaws in the attainment of homeownership. This initiative is indicative of what can be accomplished when various participants come together to leverage resources and opportunities. Today's announcement underscores PMI's commitment to making homeownership accessible and affordable to all borrowers who have the desire to own a home,'' said W. Roger Haughton, chairman and chief executive officer of PMI.
Freddie Mac is a stockholder-owner corporation established by Congress in 1970 to create a continuous flow of funds to mortgage lenders in support of home ownership 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 opened doors for one in six homebuyers in America.
''Freddie Mac is pleased to participate in an initiative that increases affordable homeownership opportunities for the Choctaw people,'' said Mike Coffey, vice president for Expanding Markets at Freddie Mac. ''We are proud to work with such committed people and organizations to help fulfill the dream of homeownership for hundreds of Choctaw families.''
''Homeownership contributes two major principles toward improving the quality of life for Native Americans: hope and pride. First Americans as a Native American company has worked diligently over the last two years to nurture these principles throughout the Choctaw Nation. We are proud to have been the initiator of this program and a partner in its development and we look forward to expanding our relationship with the Choctaw people through this initiative,'' said Dustan Shepherd.
Applications for CHAP are available at the Choctaw Housing Authority in Hugo, and at all the Choctaw Nation Field Offices.
For more information, please contact the Choctaw Housing Authority at 580/326-7521 or 800/235-3087.
The release may contain forward looking statements that involve risk and uncertainties, including without limitations, continued acceptance of the company's products and services, increased levels of competition, new products and technological changes. The company's dependency on financing third party suppliers and intellectual property rights, and other risks detailed from time-to-time in the company's federal filings, annual reports, offering memorandums or prospectus.
Contact:
AmeriResource Technologies Inc.
Dustan R. Shepherd, 913/859-9505
Fax: 913/859-9520
or
Robert Solarchik, 800/913-9767
Fax: 954/346-5796 |
