The Connecticut Business Center 100 Pearl St, 10th Floor Hartford, CT 06103 (860) 244-1240

1. The Connecticut Business Center 100 Pearl St, 10th Floor Hartford, CT 06103 (860) 244-1240

2. Fannie Mae’s Mission At Fannie Mae, we are in the American Dream business. Our Mission is to tear down barriers, lower costs, and increase the opportunities for homeownership and affordable rental housing for all Americans. Because having a safe place to call home strengthens families, communities, and our nation as a whole.

3. Fannie Mae Today • New York Stock Exchange Company (FNM) • Largest non-bank financial services company in the world • >$731 billion mortgage portfolio • > $1.68 Trillion in MBS • $75 billion multifamily portfolio • 31st largest Federal tax payer in the U.S. • Finances 1 out of every 4 mortgages in America • 5,750 employees

4. Capitalmarket Homebuyer Fannie Mae Lender Wall Street investors Primary market Secondary market U.S. Housing Finance Markets

5. Affordable Housing Goals2004-2006 *Low-to-Moderate Income 54% *Under-served Areas 34% *Special Affordable 21% *Special Affordable Multifamily $2.85B

6. Our Community Business Centers Northern New England Puget Sound North Dakota Montana Minne- sota NE & Ctrl Pennsylvania W & Ctrl NY Massachusetts Rhode Island SouthDakota Wiscon- sin Connecticut Oregon/ Idaho Mich- Igan New York Pittsburgh Wyoming New Jersey Chicago N.Ohio Nebraska Iowa Baltimore Ctrl & S Ohio Washington, DC Indiana Bay Area Utah Northern Virginia Nevada Colorado St.Louis Kansas City Kentucky NorthCarolina Tennessee Los Angeles Okla- homa SouthCarolina NewMexico Phoenix Alabama Mississippi Atlanta San Antonio Louisiana Central Florida Houston Location of regional office Border Region South Florida

7. The American Dream Commitment • $2 Trillion in Investments • 10 years (2001-2009) • 18 Million Families • 3 Million Minority Homeowners

8. Expanding the American Dream Commitment: Audacious Goals Minority Homeownership Rate:55% First-Time Home Buyers:6.0 million Minority First-Time Home Buyers:1.8 million 1,000Communities

9. Increase Minority Homeownership Rate to 55% by 2014 Ultimate goal is to close the gap between minority and non-minority homeownership rates entirely Minority Homeownership Rate Projections(from the Joint Center for Housing Studies at Harvard University) JCHS Projections by George Masnick, Joint Center for Housing Studies at Harvard University. Cohort trended by race and age.

10. Three Main Goals of the Expanded American Dream Commitment Expand access to homeownership for millions of first-time home buyers Make homeownership and rental housing a success for millions of families at risk of losing their home Expand the supply of housing where needed most

11. Continued Transformation of Our Company • Reduce mortgage origination costs by $500 • Serve 1,000,000 Home Counselor Online customers and link up 5,000 counseling agencies or members • Transform manufactured housing • Finance more than $1.5 trillion in CRA lending • Invest in additional $15 billion for affordable preservation • Finance $1.5 billion for public housing revitalization • Increase CDFI investment to $150 million • Help end chronic homelessness

12. Making a Difference in Places People Call Home • Contribute to revitalization in 1,000 communities • Commit to revitalizing 30 deep-dive neighborhoods (such as LeDroit Park) • Expand “Emerging Markets” to over 30 high minority metropolitan areas • Launch 10 initiatives through the Native American Strategic Partnership • Target efforts to improve communities in the Mississippi Delta, Alabama Black Belt, the Great Plains, Appalachia, and the Colonias

13. Achieving Outstanding Results Through New Partnerships • Launch a “workforce housing initiative” with the National Association of Home Builders • Partner with AARP on Affordable Housing for Older Americans and Building Livable Communities • Create the Local Leadership Fund

14. Fannie Mae is probably the largest investor in your community, no matter where you live in CT! Goal:$15 Billion and 105,000 households served over 5 years Results: $12.4 B, 107,000 (thru 7/06) $11.4 B – in SF $485 MM in MF $475 MM in Investments

15. Minority Homeownership Rates Lag Far Behind Whites 74.0% 47.5% 46.1% Whites African-Americans Hispanics

16. Minority Homeownership Rates in Connecticut

17. Major City Homeownership Rates

18. Benefits of Homeownership • Equity buildup & wealth creation • Stable housing costs • Tax advantages • Greater choice of neighborhoods • Pride of ownership • Stronger sense of community • Improved educational performance K-12

19. Median Net Wealth of Owner and Renter Households Source: JCHS tabulations of Federal Survey of Consumer Finances

20. CTPO Housing Investment Goals • Down Payment Assistance Programs including Employer Assisted Housing • Expanded Investment in affordable homeownership • Investment in rehabilitation of 1-4 family, owner occupied units and 5-50 multifamily units including units for seniors • Education of elected officials & business leaders on Connecticut’s Affordable Housing needs • Establish partners for CRA lending • Cultivate partnerships to foster neighborhood revitalization

21. Financing Small Rental&Targeted Community Development • Liberty Bank Aggregation Pilot • 5-50 units, 80% LTV, 1.25 DCR, 10 yr term • American Communities Fund • Equity & mezzanine debt transaction • construction loan participations • Tax exempt bond transactions • Tax credit investments • historic and low income housing tax credits

22. Other Initiatives and transactions • Tax-exempt Bond w/ 4% credit- Meriden housing Authority • Investment in Community Capital Inc • Norwalk – Community Express for site acquisition • Shaw’s Landing – Equity