In Brief: Fannie, Bank, Insurer Teamed in Loan Test

Fannie Mae, PMI Mortgage Insurance, and First Mutual Bank here have launched a lending program that qualifies low- and moderate-income homeowners to obtain loans for up to 102% of their homes' value.

The pilot program, which is expected to reach $15 million, combines a commitment by Fannie Mae to buy mortgages that will be originated by First Mutual Bank and a $400,000 fund from the city of Bellevue that qualified borrowers can use to finance their down payments or closing costs.

PMI will insure the loans.

The Bellevue program is part of a national effort by Fannie Mae and PMI to pilot affordable-housing initiatives to maximize the homebuying power of low- and moderate-income borrowers and families living in historically underserved areas.