Fannie Mae Announces Additional Steps for Hurricane Katrina Relief Efforts; Company to Provide 1,500 Properties for Evacuees
September 16, 2005
WASHINGTON, -- Fannie Mae (NYSE: FNM) announced on Thursday that the company will be providing 1,500 single-family properties from its inventory of Real Estate Owned (REO) for temporary housing for individuals and families displaced by Hurricane Katrina, and will be discussing how best to administer the initiative with the Department of Housing and Urban Development (HUD) and the Federal Emergency Management Agency (FEMA).
"We continue to assess the situation and are working with our regulators, OFHEO and HUD, as well as industry leaders, lenders and servicers, and our partners in the impacted areas to determine ways we can be of assistance," said Daniel H. Mudd, President and Chief Executive Officer of Fannie Mae. "We hope this contribution of REO properties will relieve some of the pressure, and help evacuees needing shelter."
HUD Secretary Alphonso Jackson said, "I'm thrilled Fannie Mae is answering the call to help house those persons and families uprooted from their communities. HUD and our other partners are not only providing homes, we're providing hope and healing to those who need it most."
Fannie Mae is initially providing 1,500 REO properties for rent-free leasing for up to 18 months. The properties are located in states with the highest concentration of evacuees, including Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas.
"We continue to look at a broad set of initiatives in conjunction with our lender partners and servicers that would be able to provide relief to those in the impacted areas," said Donald M. Remy, the Fannie Mae Senior Vice President and New Orleans native who is coordinating the company's response to the disaster. "As we know more, we will do more."
In addition to the company's response, the Fannie Mae Foundation has donated $1 million to relief efforts through a $500,000 contribution to the American Red Cross, and an additional $500,000 for medium- and long-term efforts supported by the housing industry and housing organizations to help impacted communities recover and rebuild. The Foundation is also providing matching funds for donations made by Fannie Mae and Foundation employees. To date, nearly half a million dollars has been raised through individual contributions by employees and matching funds.
Source: Fannie Mae