An idea whose time has come!
(COMTEX) B: PMI ANNOUNCES MAJOR EXPANSION OF NATIVE AMERICAN LENDING
B: PMI ANNOUNCES MAJOR EXPANSION OF NATIVE AMERICAN LENDING EFFORT
SAN FRANCISCO, Jul 9, 1999 /PRNewswire via COMTEX/ -- 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 atthe 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 bythe 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
thehome buyer with flexible underwriting guidelines and risk shared
between theIndian 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 achievehomeownership.
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 tribeto begin the application process and
become pre-qualified. The loans arethen 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
theirmembers.
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 UnitedStates.
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 fromthe 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.
(C) 1999 PR Newswire. All rights reserved.
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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 PAGE: pmigroup.com
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