BANKING & FINANCE - Oct. 20, 1992
From Times Staff and Wire Reports
Fannie Mae Announces Minority Loan Plan: The Federal National Mortgage Assn. unveiled a new plan aimed at making it easier for minorities in poor urban areas to get home loans. The government-chartered company, commonly known as Fannie Mae, pumps money into the housing industry by purchasing loans from lenders and then repackaging them for sale to investors. Under the new program, Fannie Mae will liberalize standards for loans it will purchase. The new standards will allow lenders to make loans to customers who have smaller down payments, and borrowers will be able to devote up to 33% of their gross monthly income toward housing expenses, up from its standard 28%.
