From left, Ralph Perrey, director of Fannie Mae's Tennessee Partnership Office, discusses the Borrow With Confidence campaign with Steve Champion, Chattanooga Association of Realtors president; Bobby Wood, state representative; Ron Littlefield, Chattanooga City Council member; and Rob Broome, director of governmental affairs for Tennessee Association of Realtors. Click on photo to enlarge.
photo by Irby Park
City Council member Ron Littlefield and local housing leaders Tuesday announced “Borrow With Confidence,” a new campaign launched by the Chattanooga Association of Realtors (CAR), Tennessee Association of Realtors (TAR) and Fannie Mae (FNM/NYSE), the nation’s largest source of financing for home mortgages.
This campaign, said Ralph M. Perrey, director of Fannie Mae’s Tennessee Partnership Office, puts Realtors at the forefront of preventing unwarranted high-cost lending.
The partners have committed to the multifaceted campaign that will help homebuyers get the best mortgage financing for which they qualify while expanding homeownership opportunities throughout the Chattanooga area.
Representatives of the local and state Realtor organizations stated that after the success of the first Borrow With Confidence campaign introduced in Texas earlier this year, National Association of Realtors (NAR) Past President Martin Edwards, a Memphis resident, was instrumental in bringing the campaign to Tennessee.
The Borrow With Confidence campaign will: 1) harness the power of Realtors to promote consumer awareness about the benefits of seeking out responsible lenders and shopping for the best mortgage; 2) debunk many of the myths that surround the home-buying process; and 3) ensure that Realtors are knowledgeable about low-cost flexible mortgage loans and are committed to the principle of offering potential home buyers competitive rates.
“Consumers have the right to knowledge that will help them avoid predatory lenders and high-cost mortgages,” said Council Member Ron Littlefield, also a Realtor. “Through the Borrow With Confidence campaign,” he continued, “Chattanooga Realtors will receive training and will provide local home buyers with the right information to make an informed decision and find absolutely the most affordable mortgage to fit their needs.”
TAR President Doug Collins said, “Realtors have the closest professional relationship with the local homebuyer and are often the primary source of information for consumers when shopping for a mortgage. We are excited to offer the program in Tennessee. Now TAR members can help homebuyers obtain competitive rates appropriate to the buyer’s credit qualifications.”
Nationally, mortgage industry research estimates that up to 50 percent of home buyers who received a high-cost or subprime mortgage could have benefited from a lower cost conventional loan. Most Americans, and particularly minorities and new immigrants, hold misconceptions about the mortgage process that may prevent them from seeking a loan from conventional lenders, consequently putting them at risk of obtaining a loan with less favorable terms.
“Realtors spend more time with consumers than anyone else in the real estate transaction and are often the first point of contact when mortgage troubles arise,” said Steve Champion, CAR president. “This partnership will help our members better understand the many lending options that are available,” he added.
Mr. Perry said, “Fannie Mae believes home buyers have the right to have access to the lowest-cost mortgage for which they qualify and to know the true cost of the mortgages they are being offered, including all fees and charges. Realtors have a powerful influence on the home-buying process and we are thrilled to be joining with them to promote responsible lending.”
As part of the Borrow With Confidence campaign, CAR, TAR’s Education Foundation and Fannie Mae will provide Realtors with mandatory continuing education training on a host of affordable mortgage products that address barriers which many borrowers face, such as a lack of down payment funds, blemished credit and overindebtedness.
Realtors will be provided with a list of lenders that offer these mortgage products as well as a list of local counseling agencies that help borrowers who may need additional assistance preparing themselves for the home-buying process. The CAR also will join local officials in the city to create awareness about the issue of high-cost lending and promote responsible lenders.
Participating lenders will offer a full range of affordable mortgages, including Fannie Mae’s Expanded Approval mortgage which offers lower cost financing for borrowers with less than perfect credit, and MyCommunityMortgage, affordable, low down payment mortgage options for low- to moderate-income borrowers who have limited funds for down payment.
Using Fannie Mae’s automated underwriting technology, Desktop Underwriter, lenders can offer borrowers loan recommendations in as little as 10 minutes. Desktop Underwriter provides objective underwriting recommendations to lenders and does not consider age, race, religion, gender, national origin or marital status.
For more information, contact Linda Maffitt with CAR at 698-8001.
For information about Fannie Mae’s mortgage products, consumers may call Fannie Mae’s Consumer Resource Center at 1-800-7Fannie (1-800-732-6643), Monday through Friday from 9 a.m. to 5 p.m.
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.
Fannie Mae is working to shrink the nation’s homeownership gaps through a $2 trillion “American Dream Commitment” to increase homeownership rates and serve 18 million targeted American families by the end of the decade.
Since 1968, Fannie Mae has provided $5.2 trillion of mortgage financing for more than 55 million families.
Fannie Mae’s site on the Internet is www.fanniemae.com where more information about Fannie Mae may be obtained.