DALLAS - Fannie Mae has committed to buy $5 billion of loans to underserved borrowers originated by CTX Mortgage Co. over the next five years.
CTX, a unit of Centex Corp., will originate low-down-payment and affordable-housing loans to minority and immigrant families. It will also originate loans that finance the construction of housing in older urban areas.
The company also plans to sponsor educational programs. The loans and the educational initiatives will be marketed in Dallas; Houston; Orlando; Columbus, Ohio; Albuquerque; Denver; Phoenix; Charlotte, N.C.; Salt Lake City; and Los Angeles.
CTX said it will encourage employers to provide homeownership assistance as a core employee benefit. Among the loans CTX will offer are its own Platinum Plus mortgage and Fannie Mae's Timely Payment Rewards mortgage.
Platinum Plus loans require a 2% down payment from the borrower's own funds - 1% from outside sources - and allow a 41% debt-to-income ratio. They are offered to borrowers with incomes at or below 100% of the median income in their residential area.
Fannie's Timely Payment Rewards loan is aimed at subprime borrowers. It features an interest rate two points below the market rate for subprime mortgages and cuts the rate an additional point if the borrower makes payments on time for the first two years.
