CitiMortgage, Fannie Mae to Target Underserved

In a major push to help low- and moderate-income families buy homes, CitiMortgage Inc., in partnership with Fannie Mae, will provide $1 billion in flexible mortgage products for qualified buyers in Los Angeles, Orange and Ventura counties over the next five years, the lending giants said Friday.

Targeting new immigrants, minorities and other underserved households, Fannie Mae, the nation’s largest source of financing for home mortgages, and CitiMortgage, a unit of Citigroup Inc., will provide the funding through partnerships with a network of local realty boards, municipalities and other housing entities.

“With a strong partner like CitiMortgage at the table, [Fannie Mae] can push the lending envelope, allowing a more credit-challenged borrower to the table,” said Barbara Zeidman, Fannie Mae’s director of the Los Angeles Partnership office.

Under the new program, Fannie Mae has committed to purchase all of the eligible affordable mortgage loans that CitiMortgage originates in Southern California.

Borrowers with past credit difficulties may qualify for loans with down payments as low as $500.

Working, nonpermanent resident immigrants may use income from boarders or part-time employment to qualify for a loan. Nontraditional sources of credit also are allowed under the program’s guidelines.

As part of the bank’s neighborhood outreach program, CitiMortgage opened a new loan center in Montebello in November, where lending consultants speak both Spanish and English.