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Freddie Mac announces employee ownership initiative

Arlington, VA – Congressman Jim Moran joined with Arlington County, Freddie Mac and Arlington County Homeownership Made Easier, Inc, today to announce a new joint effort with local employers to help employees become homeowners in the County through their home finance mortgage initiatives.

Participating employers will have access to the many mortgage finance tools available through Workforce Home Benefit, Freddie Mac's employer-assisted housing program. Employers will be able to offer their employees a variety of home buying resources, including flexible mortgages, down payment assistance from various programs, home buyer education and credit counseling.

Arlington County has had a homebuyer benefit for County employees since 2002, but now it is being expanded to help employees receive conventional loan financing, and additional employers and developers are participating in the program.

"Arlington prides itself on diversity, but rising home costs have made it much more difficult for people of all income levels to work and live in the County. Promoting new workforce housing initiatives gives local employees a real opportunity to become homeowners. I salute the employers, nonprofits and the County for advancing this thoughtful initiative," said Rep. Jim Moran (VA-08).

"This is an innovative program that offers employees now facing long commutes a chance to make Arlington County their home," said Arlington County Board Chairman Christopher Zimmerman. "Also, when people have the opportunity to live closer to where they work, it helps to improve air quality and reduce congestion. We hope more employers will join us in this initiative."

Five private employers: AHC, Inc.; Ethiopian Community Development Council Inc.; George Mason University; Marymount University and Virginia Hospital Center are participating in the program, along with Arlington County Government and Arlington County Schools. Together, they employ 11,000 workers.

In addition, the County will work with developers to encourage them to set aside properties to be sold at a discount to eligible employers. In the past year, three developers: IDI Group Companies, AHC, Inc. and KSI Services Inc., have sold a total of 78 properties at a discount to employees under agreements reached with the County.

The initiative with Freddie Mac is expected to help 125-250 people buy homes in Arlington County over the next three years. To be eligible for the various components of the program, employees may need to meet certain income eligibility limits or be first-time homebuyers.

"People in Arlington County are suffering through long commutes because they can't afford homes near their workplaces," said Bob Tsien, senior vice president of Freddie Mac. "Employer participation in Workforce Home Benefit is one solution that addresses this growing problem. We are pleased to be part of this effort to help more individuals become homeowners and to add important momentum to the rebuilding and strengthening of neighborhoods throughout Arlington County.

"Our goal is to eventually partner with as many private-sector employers as possible," said Doug Myrick, homeownership program coordinator with Arlington County. "The bottom line is that when people live closer to their jobs, they are happier, and tend not to leave as quickly as people who live far away."

Workforce Home Benefit
Workforce Home Benefit is a signature Freddie Mac initiative that can be customized to help employers foster homeownership for their employees.

The program gives employees access to mortgages and services specifically designed to meet their needs. Local lenders, including Citibank, First Horizon Home Loans, George Mason Mortgage, National City Mortgage, SunTrust Mortgage and Wells Fargo are making available flexible mortgages that address credit and down payment issues. Freddie Mac will purchase eligible mortgages from the lenders. In addition, the Virginia Housing Development Authority offers downpayment and closing cost assistance programs and mortgages for eligible individuals with household incomes up to $100,000.

Homebuyer Education
To prepare employees for the challenges of homeownership, Arlington Home Ownership Made Easier, Inc. (AHOME), a non-profit agency that seeks to increase the number of low-and moderate-income and minority homebuyers by providing outreach and homebuyer education programs, will conduct financial literacy and homebuyer education workshops at the participating employers' worksites.

"This is a great opportunity for employees to learn about the homebuying process and take advantage of the resources available through the Workforce Home Benefit to purchase properties close to their place of employment," said Karen Serfis, executive director of AHOME.

For More Information
For more information about this program, contact Doug Myrick, Arlington County Homeownership Program Coordinator, at 703-228-3786.

Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and four million renters in America.

Arlington, Va., is a world-class urban community that was originally part of the "10-mile square" parcel of land surveyed in 1791 to be the Nation's Capital. It is the geographically smallest self-governing county in the United States, occupying slightly less than 26 square miles. Known for its urban villages and transit-oriented development, Arlington maintains a rich variety of stable neighborhoods, quality schools and enlightened land use. In 2002, the county was the first recipient of the Environmental Protection Agency's highest award for "Smart Growth." Home to some of the most influential organizations in the world – including the Pentagon – Arlington stands out as one of America's preeminent places to live, visit and do business.

Freddie Mac work to increase Hispanic homeownership through workshops.

Workshops Teach Homeowners to be, How To Make Better Finance Choices

Freddie Mac (NYSE: FRE), one of the largest residential mortgage investors, and Esperanza USA, the leading Hispanic faith-based organization committed to strengthening the Hispanic community, today announced an outreach and education initiative to help Hispanics improve their finance decision-making skills and help them on the path to homeownership. The announcement was made during Esperanza USA's National Hispanic Prayer Breakfast and Conference at The State of Hispanic Housing Dinner.

Esperanza USA is bringing CreditSmart® and CreditSmart® Español –Freddie Mac's signature instructor-led financial literacy workshops in English and Spanish – to Philadelphia, Allentown/Bethlehem, Penn., and Camden, N.J. The six-hour workshops will be offered free of charge in the community.

Latinos and their families struggle with the same financing issues as many individuals – the need to be better prepared to deal with the challenges of earning an income, spending wisely and saving money. In fact, a recent Commerce Department report found that people in America are spending 5 percent more than they earn. They are using their savings, home equity or credit to make ends meet.

Esperanza USA has trained non-profit organizations and churches serving these cities to conduct Freddie Mac’s consumer financial literacy workshops, CreditSmart and CreditSmart Español.

The goal is to enable more families to overcome many of the key barriers to homeownership such as impaired credit, inadequate resources for down payment and lack of information about the homebuying process.

“Owning a home is part of the American dream.  By offering this resource, Freddie Mac and Esperanza USA are empowering those in the Hispanic community to make that dream a reality,” said the Rev. Luis Cortés, Jr., president of Esperanza USA.

During the workshops, instructors provide information about credit and credit management, insight into how lenders assess credit histories, and how credit plays a profound role in achieving financial goals, like renting an apartment, buying a car or home, or getting a job.

According to Freddie Mac research, significant numbers of African Americans and Latinos lack accurate, reliable information about the homebuying process. Freddie Mac and Esperanza USA recognize and understand the need for prospective homebuyers to work with trusted emissaries – the faith community – to help them learn about the benefits of homeownership.

“The role of church leaders in the community gives them a unique opportunity to reach people who may be facing obstacles to buying a home,” said Dwight Robinson, senior vice president of Freddie Mac.

Esperanza USA is spreading the word about homeownership in their member churches and in the community through its website: www.esperanza.us. For more information about attending a CreditSmart or Credit Smart Español workshop, contact Rev. Hector Cortez, vice president of National Programs at 215-324-0746.

Freddie Mac believes that by educating consumers about smart credit habits and helping them understand the importance of obtaining and maintaining good credit, then they are helping them take the first steps toward homeownership. More than 57,000 people have attended CreditSmart classes since it was launched in 2000.