Fannie Mae:Your Partner in Community DevelopmentPresented By Maria Day-Marshall Senior Business Manager

Historically Black Colleges and Universities ConferenceLeadership, Sustainability, and Succession Planning Savannah, Georgia October 2628, 2005

Fannie Maes MissionAt Fannie Mae, we are in the American Dream business. Our Mission is to tear down barriers, lower costs, and increase the opportunities for homeownership and affordable rental housing for all Americans. Because having a safe place to call home strengthens families, communities, and our nation as a whole.Be the partner of anyone who cares about housing and communitiesTackle the toughest housing problems in America

Fannie Mae is a Leader in the US Housing Finance IndustryCreated as the Federal National Mortgage Association (FNMA) by the United States Congress in 1938 to establish a secondary market facility and credit guarantor for residential mortgages

In 1968, Fannie Mae became a privately owned and managed for- profit corporation listed on the New York Stock Exchange (FNM)

By law, Fannie Mae can only deal in home mortgages, and our primary focus is on mortgages for low-and moderate-income families

Largest non-bank financial services company in the world

Manage over $1.5 trillion in mortgagesIssue mortgage backed securities (MBS)Purchase loans and MBS to hold in portfolio

55 Community Business Centers Three Regional Offices Fifty-five Community Business Centers Fannie Mae Community Business Centers are working in communities across the country with our partnerslenders, nonprofits, real estate professionals, state and local housing finance agencies, and othersto revitalize communities and increase the supply of affordable rental and for-sale housing.Fannie Mae is in Your Community

Role of the Community Business CentersSolve the toughest local housing problems, community by communityDemonstrate the impact of Fannie Mae to each communityUnderstand and articulate local housing challengesIdentify/facilitate/drive businessDevelop and test new ideas Build and maintain partnershipsLeverage network partnerships and resourcesSupport our community partnersBe the eyes, ears and voice for Fannie Mae in local markets Tell the story executing events

Some of our Community Partners ACORN AFL-CIO American League of Financial Institutions (ALFI) Asian, Inc. Black Chamber of Commerce Congressional Black Caucus (CBC)Congressional Hispanic Caucus (CHC) Congress of National Black Churches (CNBC) Enterprise Foundation Hispanic Congressional Caucus (HCC) League of United Latin American Citizens (LULAC) Local Initiatives Support Corporation (LISC) NAACP National Association of Hispanic Real Estate Professionals (NAHREP) National Association of Housing and Redevelopment Officials (NAHRO)National Association of Local Housing Finance Agencies (NALHFA)National Bankers Assocation (NBA)National Community Capital Corporation (NCCC)National Council of La Raza (NCLR)National Council of State Housing Agencies (NCSHA)Neighborhood Reinvestment Corporation/ National Housing Services (NRC/ NHS)National Urban League (NUL)Neighborhood Reinvestment Corp. (NRC)

American Dream Commitment 3.0 Expand Access to HomeownershipMake Homeownership & Rental Housing Successful Increase the Supply of Affordable Housing Transform 50 Targeted Communities

Why We Are Here To share information on Fannie Maes role in community development and how Fannie Mae can work with Historically Black Colleges and Universities to assist communities in providing affordable for-sale and rental housing to low- and moderate- income families.

To develop partnerships with Historically Black Colleges and Universities to assist in revitalizing their communities.

Howard University LeDroit Park Initiative, Washington, DC The emergence of the Howard University LeDroit Park Initiative coincided with the investment of over $160 million in housing, commercial and public benefit development in the LeDroit Park/ U Street community. This includes over $70 million in investment created by the Initiative.Investment in housing, retail, dining and commercial establishments gave rise to new jobs, more tourism, increasing revenues for the city, and a renewed sense of community for one of Washington, DCs most historic neighborhoods.

In 1995, a partnership between Howard University and Fannie Mae was formed. The neighborhood population was approximately 18,700 with a median household income of approximately $34,550 and a median home value of $128,203. Approximately 28% of the population had incomes under $15,000 and approximately 17.2% of the population could qualify to purchase a home priced at the median home value. The results of the partnership are apparent as the once blighted neighborhood has been transformed into one that attracted the famous African-Americans who resided there in the past. Participants in this effort have always envisioned the Howard-sponsored redevelopment as a catalyst for other private and publicly sponsored revitalization activities in the neighborhoods and along the Georgia Avenue Corridor.

CompletedComplete the Howard University/LeDroit Park Neighborhood Partners Initiative. Provide $40 million in housing development financing. Partner with the city and the federal Department of Transportation to leverage the construction of $5 million in new construction streetscape improvements in historic LeDroit Park into $20 million to repair and rebuild infrastructure throughout the balance of the 150-block focus area, and support the redevelopment of the infrastructure and streetscape along Georgia Avenue.Provided, facilitated and/or achieved over $70 million supporting the revitalization of the LeDroit Park Community including the financing of over 273 units of affordable housing.Specific initiatives included:$800,000 in pre-development and EAHP funding financing 42 units of single family homes;$2.5 million in construction financing approved for ACF participation in the Riggs line of credit;$5 million ACF participation with SunTrust to acquire and rehabilitate 75 vacant properties in LeDroit Park;$5 million in MRBs to provide mortgages for 156 units in the Lincoln Condominiums project;$8 million in targeted mortgage revenue bonds for single family homes; and $1.4 million to support the financing of the DC Housing Finance Agency at 9th & U Streets.Investment Plan Goal No. 7 MEETING COMMUNITY DEVELOPMENT NEEDSSource: Howard University LeDroit Park Initiative, Sorg and Associates

Town Homes in LeDroit Park at 6th & U Streets - BEFORE

Town Homes in LeDroit Park at 6th & U Streets - AFTER

Town homes in LeDroit Park at Oakdale Street - BEFORE

Town homes in LeDroit Park at Oakdale Street - AFTER

Town homes in Le Droit Park at 5th & U Streets - DURING

Town homes in Le Droit Park at 5th & U Streets AFTER

Fannie Mae and HBCUs in PartnershipFannie Mae can: Provide a line of credit to colleges and universities to expand their housing program in their immediate neighborhood.Work with DUS lenders financing multifamily development to provide construction financing.Help the colleges and universities develop an Employer Assisted Housing (EAH) program for faculty members and staff to encourage them to purchase homes in the neighborhoods adjoining the college.Provide financing to the Housing Authority in the community to modernize its housing stock.Provide financing to the Housing Authority for Hope IV development through partnership with lenders for construction and mortgage financingPartner with the cities and mortgage lenders to expand mortgage products for homebuyers in the neighborhood.Provide technical, industry and market resources to assist a mobilized group of community partners to prepare and implement a master community redevelopment plan.

Advantages to Doing Business With Fannie MaeIn the Market Every Business Day In Every Market in the CountryBreadth/Variety of Innovative Products Dependability, Integrity, and LiquidityCompetitive Pricing Unmatched Commitment to Preserving Affordable Housing

For More Information on Fannie MaeVisit us online to locate your Community Business Center www.fanniemae.com

For specific questions contact Maria Day-Marshall at Maria_k_day-marshall@fanniemae.com (202) 752-3916

At Fannie Mae, our business is our mission and our mission is our business.

We increase the supply of affordable rental, and for- sale housing by investing debt, equity, and human capital.

Through partnerships with lenders, developers, public entities, and a host of non-profits and others in the housing business, we revitalize communities across the nation.

1-Fannie Maes core mission is to provide a reliable supply of low cost mortgage funds to all communities within the US, at all times.

2-We operate in the secondary rather than the primary mortgage market. Fannie Mae purchases mortgage loans from mortgage lenders such as mortgage companies, savings institutions, credit unions, and commercial banks, thereby replenishing those institutions' supply of mortgage funds.

Fannie Mae either packages these loans into Mortgage-Backed Securities (MBS), which it guarantees for full and timely payment of principal and interest, or purchases these loans for cash and retains the mortgages in its portfolio.

By ensuring liquidity in the housing finance system, we help to lower the costs of mortgages and make homeownership more affordable for more families.

At Fannie Mae, our business is our mission and our mission is our business.

We increase the supply of affordable rental, and for- sale housing by investing debt, equity, and human capital.

Through partnerships with lenders, developers, public entities, and a host of non-profits and others in the housing business, we revitalize communities across the nation.

In order to accomplish these items our CBC staff use a variety of strategies/tactics: Fannie Maes eyes, ears, voice and presence in each community Relationship management with key partners Listen and crystallize the critical housing challenges in each community Identify and facilitate opportunities for business investment by Fannie Mae Laboratory for new ideas and for testing and execution of those ideas Connect components of the community necessary to solve housing Support our community partners Showcase tangible benefits of Fannie Maes missionWe work with a wide range of partners to help increase homeownership for more families in this country. We work with our partners to tackle America's toughest housing problems by developing solutions to housing barriers faced by underserved populations and communities that traditionally have not been well served by the mortgage industry.

Our partners include: Lenders, Mortgage Insurers and Brokers, Non Profits, Real Estate professionals, Home Builders, HFAs, Govt. Partners.

We work with a wide range of partners to help increase homeownership for more families in this country. We work with our partners to tackle America's toughest housing problems by developing solutions to housing barriers faced by underserved populations and communities that traditionally have not been well served by the mortgage industry.

Our partners include: Lenders, Mortgage Insurers and Brokers, Non Profits, Real Estate professionals, Home Builders, HFAs, Govt. Partners.

We work with a wide range of partners to help increase homeownership for more families in this country. We work with our partners to tackle America's toughest housing problems by developing solutions to housing barriers faced by underserved populations and communities that traditionally have not been well served by the mortgage industry.

Our partners include: Lenders, Mortgage Insurers and Brokers, Non Profits, Real Estate professionals, Home Builders, HFAs, Govt. Partners.

as you can see, we work with a wide range of non-profits and Community Based Organizations that many of are familiar with and may be members of.

OurAmerican Dream Commitment goals initially fell under three broad objectives, with a recent fourth addition. Briefly, they are: Expand access to homeownership.or (Putting people into homes)Make homeownership and rental housing successful or (Keeping people in their homes)Increase the supply of affordable housing or (Expanding the supply of housing where needed most)Transform 50 targeted communities

To achieve theseobjectives byour 2014 deadline, we involved resources from across the company. The work that many of you will be doing will directly impact the goals of ADC 3.0 There are senior management goal owners and cross-functional teams that support them. Through this seamless approach,weand our partnersare tackling the toughest housing challenges that face our nation.

LeDroit Park is now one of the economic pace-setters for the District of Columbia. Moreover, the Howard University Initiative was a definitive demonstration of how inner city urban communities can not only survive; but with thoughtful leadership and careful execution, can be reborn and thrive in the new millenium.

LeDroit Park was developed in 1873 and was one of the District of Columbias first suburban residential communities. Initially an all white community with a fence separating it from Howard University, it became predominately African American by the end of World War I, but maintained its middle-class character and became home to many famous African Americans, including poet Paul Lawrence Dunbar, Congressman Oscar Depriest, educator Mary Church Terrell and jazz great, Duke Ellington. Beginning in the early sixties, the neighborhood endured decades of blight, inadequate government service, a deteriorated infrastructure, drugs, crime and overall decline. The result was a general dis-investment by the community, local government and Howard University.

Howard University President Swygert expressed his hopes that the urban revitalization efforts serve as a national role model: "Today we celebrate a major victory, the elimination of blight in this community, and the arrival of 40 new families to our neighborhood. The many partners involved in this initiative have committed the resources, time, and talent to make sure that our beautiful community continues to be a strong presence in this great city." Representative Norton noted that Howard University and Fannie Mae make great partners: "Once again, Fannie Mae is there. Ward after ward, they're everywhere!" Congratulations Fannie Mae.