As a result of both congressionally mandated lending requirements and it's own $2 trillion "American Dream Commitment," Fannie Mae has not-so-quietly become the largest single provider of mortgage funds to minority and low-income families, its chairman declared last week.

Not only is Fannie Mae "by far" the largest supplier of mortgage money in the private sector, Franklin Raines proclaimed, the federally-chartered corporation is running "neck and neck" with the Federal Housing Administration as the chief source of public funding for housing.

"The government is our only competitor," Raines said in issuing his annual report on the company's $2 trillion pledge, which calls, among other things, for providing $420 billion to help three million minority households become own their own homes by the end of the decade.

He told reporters that Fannie Mae's commitment to underserved markets is so strong that it "has become the vision of our company."

Pointing out that minority borrowers now account three of the four home loans the firm touches in one way or another, he added, "Our company is overwhelmingly an affordable housing company. No one does more to advance the cause of minority home ownership than Fannie Mae."

Last year, Fannie Mae provided $87.6 billion in financing for 680,000 minority families, Raines reported.

That's more than double the $34.9 billion in targeted funding provided in the first nine months of 2000. The multi-faceted, 10-year American Dream program was announced in March 2000.

Last year's "record-breaking numbers" included $16.6 billion in loans 153,000 African-American families, $32.7 billion for loans to 273,000 Hispanics, and $38.3 billion for 253,500 other minority households, including women, immigrants and Native Americans.

Ed London of the National Association of Real Estate Brokers, an organization of minority realty professionals, lauded Fannie Mae's efforts on behalf of underserved borrowers who otherwise would be forced to pay the exorbitant loan rates and fees charged in the subprime sector or not borrow at all.

"This is a true commitment," London said. "Fannie Mae has taken on the challenge, not just to enhance its bottom line, but as a true ministry."

Overall last year, the company said it provided more than $463 billion in financing under the American Dream program for 4.2 million families.

Eventually, the program's goal is to serve a total of 18 million households by the end of the decade.

Published: March 27, 2002

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When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated. He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year. Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association. He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He held that same position for nine more years at the Washington Star, which purchased the News in 1972. The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country. He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others. Sichelman is married, the father of five and grandfather of eleven.