State Farm Invests $100 Million in NHSA’s New Prime-Grade Mortgage Program
—First American’s Anthem Alternative Credit Solutions Used to Extend Prime Grade Financing to Applicants With Little or No Traditional Credit History—
October 24, 2006, CHICAGO
CHICAGO, Oct. 24, 2006 – Neighborhood Housing Services of America (NHSA) and State Farm today announced the creation of a $100 million loan pool that will help thousands of homebuyers secure mortgage loans at competitive rates. Designed to help under-served home seekers—often within the minority and new immigrant communities—the NHSA loan program will employ The First American Corporation’s (NYSE: FAF) “Anthem Report” and “Anthem Score,” two tested and reliable alternative credit solutions that help lenders assess a consumer’s creditworthiness using data beyond what is found in traditional credit bureau reports.
Combining this new method of credit analysis with extensive prepurchase and post-close homebuyer counseling services from nonprofit home counseling agencies will enable NHSA and its mortgage lenders to confidently extend prime-grade mortgage loans—backed by the State Farm-funded loan pool—to consumers with little or no traditional credit history.
“Before now, there hasn’t been an effective, efficient means of moving nonprime borrowers into prime loans,” said Mary Lee Widener, president and chief executive officer of NHSA. Speaking at the annual Mortgage Bankers Association Convention & Expo in
“By demonstrating that these consumers are not higher risk, and by providing lenders with a secondary market to sell the loans post-close, our Prime-Grade Mortgage Program directly addresses the challenge faced by an estimated 50 million
Earlier this month, the Prime-Grade Mortgage Program had its first success in helping a homeowner in
“We’re excited about the hope this program provides and the impact it will have on people,” said Clayton Adams, vice president – community development at State Farm. “Our partnership and this investment with NHSA and First American matches our philosophy and strategy to support community development by empowering individuals to overcome adversity and eliminate barriers to buying a home for the first time.”
“The rapidly changing market conditions are casting new light on the needs and strong purchasing power of the fast-growing minority and new immigrant homebuyer segments,” said Landon V. Taylor, vice president of market development at First American. “We’re pleased to help deliver innovation that enables the extension of responsible and affordable mortgage financing to all Americans.”
About Neighborhood Housing Services of
NHSA, together with NHSA-CDFI—its affiliated community development financial institution—and NHSA’s e-commerce center, plays a critical role in meeting the capital needs of the NeighborWorks network. Raising private sector capital from socially responsive investors, NHSA purchases first and second mortgages from local NeighborWorks organizations and their lending partners. NHSA also develops innovative loan products and services to increase the capacity of the NeighborWorks network to expand affordable housing opportunities in their communities. For more information, please visit: www.NHSAonline.org or www.nw.org.
About State Farm
State Farm insures more cars than any other insurer in North America and is the leading
About First American
The First American Corporation (NYSE: FAF), a FORTUNE 500 company that traces its history to 1889, is