Plan Eases Way for Minority Homeownership

Fannie Mae and the NAACP have joined forces to make it easier for minorities to buy homes under a plan that includes a novel look at weighing credit-worthiness. The partnership between the Federal National Mortgage Assn. and the National Assn. for the Advancement of Colored People aims initially to help 20,000 African American households receive counseling and resource information on buying houses. In determining credit-worthiness, Fannie Mae said, it will look beyond traditional background checks to focus instead on other parts of credit history, such as payments of bills and rent. It will ease requirements for families whose credit histories were marred by emergency medical expenses. It also said it will guarantee a larger flow of mortgage financing to minority communities by purchasing an unlimited number of qualified mortgages. It added that it will provide $110 million in special financing for mortgages requiring down payments of as little as 1% to 3%. The NAACP will begin offering improved homeownership counseling at centers in Albany, N.Y.; Atlanta; Austin, Texas; Baltimore; Columbia, S.C.; Fort Lauderdale, Fla.; Gary, Ind.; and Richmond, Va.