NEWS -- NEWS -- GOOD NEWS --
(PR NEWSWIRE) PMI Announces Major Expansion of Native American Lending Eff
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) 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), 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.
-0- 07/09/99
/CONTACT: Glen Corso of PMI Mortgage Insurance Co., 415-393-6429/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 706963/
/Web site: pmigroup.com
(PMA ARET)
CO: PMI Mortgage Insurance Co.; U.S. Department of Housing and Urban
Development; National American Indian Housing Council; First Americans
Mortgage Corp.; AmeriResource Technologies, Inc.; PMI Group, Inc.
ST: California, New York, South Dakota, Kansas, Oklahoma
IN: FIN INS RLT
SU:
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