COLUMBUS, Ohio, April 15 /PRNewswire/ -- BANK ONE CORPORATION (NYSE: ONE)
today announced plans to offer a new home loan, called the Bank One Affordable
Dream Mortgage(R), that will help more American families buy their first home.
"This exciting mortgage will open the doors for families looking for their
first home," said John B. McCoy, President and CEO of BANK ONE. "Down
payments as low as $500, coupled with non-traditional credit standards, will
assist thousands of low- and moderate-income families. We're committed to
making $250 million in American Dream Mortgages over the next five years."
BANK ONE is the first of four lenders working in partnership with Self-
Help, a North Carolina-based community development financial institution whose
mission is to increase home ownership opportunities for those who are
traditionally disadvantaged.
Key customer benefits of the Bank One Affordable Dream Mortgage are:
* A minimum investment of $500 or 1% of the home's purchase price,
whichever is greater, must be provided by the borrower, with the rest
of the down payment and closing costs coming from a variety of sources
such as a gift, grant or down payment assistance program.
* Monthly payments are more affordable because private mortgage insurance
isn't required.
* The fixed-rate mortgage provides the borrower with the security of a
monthly payment that won't change.
* Non-traditional credit is acceptable for those without an established
credit history.
* A required counseling seminar helps home buyers plan for their new
responsibilities.
"We are always looking for new ways to help more people enjoy the rewards
of home ownership," said Don Erling, Chairman and CEO of Banc One Mortgage, a
subsidiary of BANK ONE. In partnership with Self-Help, we hope to make home
ownership home possible for even more families."
"I'm not surprised that Bank One is the first to launch this new program
under our partnership," said Martin Eakes, co-founder and CEO of Self-Help.
"It's the kind of innovative community-minded effort Bank One is known for.
There is a critical path to the economic mainstream, and Bank One's Affordable
Dream Mortgage will help many low-income families take the first step on that
path."
Fannie Mae and the Ford Foundation have each agreed to a partnership with
Self-Help that will help the program expand nationally. Self-Help has
committed to buy at least $2 billion in CRA loans over the next five years
from national lenders and sell or swap these loans to Fannie Mae. Self-Help
will retain full recourse to Fannie Mae for any credit losses. Bank One, as a
participating bank, will retain responsibility for loan servicing through
HomeSide Lending and Bank One has committed to originating $250 million of
Self-Help program loans over the next five years.
"This kind of partnership is absolutely vital to Fannie Mae's ability to
meet its commitment to assist families previously underserved by the housing
finance industry," said Barry Zigas, senior vice president and executive
director of Fannie Mae's National Housing Impact Division. "Fannie Mae is
proud to join with Bank One, Self-Help and the Ford Foundation to which will
truly make a difference for America's families."
"Creating opportunities for low-income people to purchase homes is very
important to the Ford Foundation because it will help these families to build
an important asset for their future," said Frank DeGiovanni, director of the
economic development unit of Ford Foundation. "We are very pleased that our
grant to Self-Help has enabled Bank One to develop an innovative mortgage
product that will enable low-income people who otherwise would not qualify for
a loan to become homeowners."
The Ford Foundation has committed a $50 million grant to expand Self-
Help's Community Advantage(TM) Home Loan Secondary Market Program nationwide.
Homebuyers interested in more information about the Bank One Affordable
Dream Mortgage(R) should visit their local Bank One banking center or call
Home By Phone at 1-800-850-3732.
BANK ONE CORPORATION is headquartered in Chicago and is the nation's
fourth-largest bank holding company with assets of more than $260 billion.
BANK ONE offers a full range of financial services to commercial and business
customers and consumers. It is a major commercial bank in the United States
and in selected international markets. More information about BANK ONE can be
found on the Internet at http://www.bankone.com or through fax-on-demand at
614-844-3860.
Self-Help is one of the nation's leading community development financial
institutions, and consists of the nonprofit Center for Community Self-Help and
two financing affiliates, Self-Help Credit Union and Self-Help Ventures Fund.
Since 1984, Self-Help has provided $325 million in financing to help
low-wealth North Carolinians buy homes, build businesses, and strengthen
community resources. More information about Self-Help can be found on the
Internet at http://www.self-help.org .
The Ford Foundation, established in 1936, is a private, nonprofit
institution that serves as a resource for innovative people and institutions
worldwide. Its goals are to strengthen democratic values, reduce poverty and
injustice, promote international cooperation and advance human achievement. A
national and international philanthropy with an endowment of $10.7 billion,
the Foundation has granted more than $9.3 billion to some 9,000 institutions
and over 100,000 individuals worldwide. The Foundation maintains headquarters
in New York City and offices in Africa and the Middle East, Asia, Latin
America and Russia. More information about the Ford Foundation can be found on
the Internet at http://www.fordfound.org .
Fannie Mae is a New York Stock Exchange company and the largest non-bank
financial services company in the world. It operates pursuant to a federal
charter and is the nation's largest source of financing for home mortgages.
Over the past 30 years, Fannie Mae has provided nearly $2.5 trillion of
mortgage financing for over 30 million families. More information about Fannie
Mae can be found on the Internet at http://www.fanniemae.com .
SOURCE BANK ONE CORPORATION
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Related links:
http://www.bankone.com
Company News On-Call:
http://www.prnewswire.com/comp/084675.html or fax,
800-758-5804, ext. 084675
CONTACT:
John Russell, 614-248-5989, or Thomas A.
Kelly, 312-732-7007, both of BANK ONE CORPORATION
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