The Federal National Mortgage Association said it has reached agreements with six mortgage banking companies to provide $14.1 billion in new funding for single-family home mortgages.
Fannie Mae, a federally chartered company, is the nation's largest investor in home mortgages. The company said the new funding agreements will provide financing for about 170,000 mortgages."For home buyers across the nation, these agreements ensure the continued availability of affordable home mortgage financing during these times of economic uncertainty," said Robert J. Levin, Fannie Mae's executive vice president of marketing.
Citicorp Mortgage, of St. Louis, will originate $5 billion worth of mortgages throughout the United States. These mortgages, the largest of the six new deals, will be sold to Fannie Mae for cash or exchanged for mortgage-backed securities issued by Fannie Mae.
The second-largest deal was reached with Norwest Mortgage Inc., of Des Moines, Iowa. Fannie Mae will provide funding for $4 billion in mortgages originated by Norwest.
Fannie Mae also will fund $1.6 billion in mortgages originated by Fireman's Fund Mortgage Corp., of Farmington Hills, Mich.; $1.5 billion in mortgages in Texas and five southeastern states by NCNB Mortgage Corp., of Dallas; $1 billion in mortgages in the midwest, the northeast, and the mid-Atlantic states by Huntington Mortgage Co., of Columbus, Ohio; and $1 billion in mortgages originated along the Atlantic coast by Dominion Bankshares Mortgage Corp., of McLean, Va.