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NEWS STORY FOR ARET 13
11:58 First Americans Signed to Originate $10 Million of Oklahoma Native
SYMBOLS: ARET I/BNK I/FIN I/BLD I/CON I/REA I/FIS
'ARET'
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, 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:
-0-
-- 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.
--30--lhs/mi*
CONTACT: AmeriResource Technologies Inc.
Dustan R. Shepherd, 913/859-9505
Fax: 913/859-9520
or
Robert Solarchik, 800/913-9767
Fax: 954/346-5796
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