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FOR IMMEDIATE RELEASE
August 18, 2005
Contact:
Patti Boerger, 703-903-2445, Freddie Mac
Lou Tisler, 216-458-4663 ext. 12, NHS
Freddie Mac, NHS, National City Launch Campaign In Cleveland To Help More Minorities Realize They May Qualify To Buy A Home
Cleveland - In an effort to enable more African Americans and Latinos in Cleveland to take the important steps toward homeownership, Freddie Mac, National City Corporation and Neighborhood Housing Services (NHS) of Greater Cleveland today announced a new awareness and outreach campaign called "Homeownership: Let the TRUTH Move You" or "¿Tu propia casa? ¡Atrévete!" The campaign debunks common misconceptions about homeownership that are stopping many minority families from even considering buying a home. The announcement was held in conjunction with the ribbon cutting ceremony for the new NHS of Greater Cleveland office at 5700 Broadway Ave. in the city's historic Slavic Village Business District.
Research conducted by Freddie Mac suggests that reliable, accurate information about home buying may not be reaching minority communities. The research uncovered several common misconceptions about home buying among African Americans and Latinos. For example, about half of African Americans and Latinos believe that they need a 20 percent down payment to buy a home, and that they need almost perfect credit to obtain a loan. In addition, more than half of African Americans and Latinos believe that they must have the same job for at least three years in order to get a loan.
According to the U.S. Census Bureau, homeownership rates for African American and Latino households are 25 percent lower than the rates for non-minority households. In Cleveland, the homeownership rate is 47 percent for Latinos, 44 percent for African Americans and 75 percent for non-minorities.
"Homeownership is an important part of achieving the American Dream," said Congresswoman Stephanie Tubbs Jones. "There is a considerable disparity in homeownership between minorities and non-minorities, particularly in the Cleveland area. That is why a program such as this is so crucial to bridging that gap. I am extremely pleased that Freddie Mac is taking this important step to assist minorities in realizing their dreams of homeownership."
"We believe that lack of access to accurate information is a barrier to homeownership," said Craig Nickerson, Vice President of Expanding Markets for Freddie Mac, "We can't allow misinformation to be a barrier to the families who may want to buy a home. We and our co-participants are determined to improve our delivery of homeownership information to individuals who want and need accurate information about home buying."
The campaign, designed to address the misconceptions identified through the Freddie Mac research, will provide straightforward and up-to-date information about all aspects of homeownership, including costs associated with home buying and credit history requirements through a series of one-hour educational sessions in English and Spanish.
NHS will conduct the educational sessions in their Home Ownership Center, located at 5700 Broadway, Cleveland. The next sessions will be held the week of August 29, Monday through Friday from 6 p.m. to 8 p.m. Individuals are encouraged to call a toll-free number 1-866-7TRUTHS, or 1-877-ATREVE-1 in Spanish to register for the free educational sessions.
"The strength of this campaign is that it is a continuation of efforts by many organizations working together in the community to address the barriers faced by minority homebuyers," said Nickerson. "Freddie Mac is honored to be working with grassroots organizations that really understand how to reach people who may be facing obstacles to buying a home. Like us, our co-participants in this campaign-National City and NHS of Greater Cleveland--are committed to accelerating the growth of minority homeownership."
"It's critically important for us to get the right information about home buying into our communities," said Lou Tisler, executive director of NHS of Greater Cleveland. "Buying a home can be intimidating and knowing what information to trust can be challenging. NHS of Greater Cleveland is committed to be a source of reliable, accurate facts about homeownership."
"At National City, we are dedicated to responsibly serving home lending needs, and we are committed to educating consumers about the mortgage process," said Paul Clark, president, National City Northern Ohio. "We believe that a well-informed applicant is our best customer, and we support numerous consumer education programs throughout our markets. We are proud to join forces with Freddie Mac and Neighborhood Housing Services to provide important information about the mortgage lending process and address the needs of undeserved people in our region."
"There is a lot of misinformation about homebuying out there and that leaves people vulnerable to being taken advantage of," added Tisler. "Today there are many more homeownership opportunities and flexibility in home buying than ever before. It is our job to better inform people, for example, to let them know that a 20 percent down payment is no longer an industry standard."
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 nearly four million renters in America. www.FreddieMac.com.
National City Corporation (NYSE: NCC), headquartered in Cleveland, Ohio, is one of the nation's largest financial holding companies. The company operates through an extensive banking network primarily in Ohio, Illinois, Indiana, Kentucky, Michigan, Missouri and Pennsylvania, and also serves customers in selected markets nationally. Its core businesses include commercial and retail banking, mortgage financing and servicing, consumer finance and asset management. For more information about National City, visit the company's Web site at NationalCity.com.
Neighborhood Housing Services of Greater Cleveland is not-for-profit community development corporation incorporated in 1975 to promote investment and revitalization of neighborhoods in the City of Cleveland through home repair programming and home ownership education. As one of the first five original charters with NeighborhoodWorks® America, the mission of NHS of Greater Cleveland is enhance the quality of life in Cleveland's neighborhoods and inner-ring suburbs by promoting home ownership, increasing economic development, developing affordable housing through education and home repair programming.
