FREDDIE MAC AND CHASE LAUNCH CAMPAIGN IN JERSEY CITY TO HELP MORE MINORITIES REALIZE THEY MAY QUALIFY TO BUY A HOME

Sen. Corzine and Rep. Menedez Encourage Support for Campaign

Jersey City, NJ – In an effort to enable more African Americans and Latinos in Jersey City to take the important steps toward homeownership, Freddie Mac, Chase Home Finance and ACORN Housing-New Jersey 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.

Research conducted by Freddie Mac suggests that reliable, accurate information about homebuying may not be reaching minority communities. The research uncovered several common misconceptions about homebuying 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 get 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 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 New Jersey the homeownership rate is 22 percent for Latinos, 31 percent for African Americans and 67 percent for non-minorities.

"Homeownership creates stakeholders and stability in a community," said Senator Jon S. Corzine (D-NJ), a member of the Senate Banking Committee. "It is vital that accurate information is easily available to those who seek to own their own homes."

"Too many minority families are shut out of the opportunity to own their own home simply because they think they don't qualify," said Congressman Robert Menendez (D-NJ), "This campaign is a critical step towards breaking down one barrier to homeownership that should not exist–the lack of information. Hopefully, through this outreach effort, many more families throughout our community can share in the American dream that should be accessible to all–owning their own homes."

"We believe that lack of access to accurate information is a barrier to homeownership," said Robert Tsien, Senior Vice President, 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 homebuying."

The campaign, designed to address the misconceptions identified through Freddie Mac research, will provide straightforward and up-to-date information about all aspects of homeownership, including costs associated with homebuying and credit history requirements through a series of one-hour educational sessions in English and Spanish.

ACORN Housing-New Jersey will conduct the educational sessions in their offices located at 574 Newark Avenue, 2nd floor, Jersey City, NJ 07306. The next sessions will be held June 29, July 6, July 13 and July 27, at 6:30 p.m. Interested 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 Tsien. "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--Chase Home Finance and ACORN Housing–are committed to accelerating the growth of minority homeownership."

Claudia Ray, Northeast Regional Director, ACORN Housing, added, "It's critically important for us to get the right information about homebuying into our communities. Buying a home can be intimidating and knowing what information to trust can be challenging. ACORN Housing-New Jersey is glad to be a source of reliable, accurate facts about homeownership."

"Chase's goal is to strengthen communities by increasing homeownership," said Michael Dubois, Senior Vice President, Chase Home Finance. "Chase offers a broad range of home financing solutions to individuals nationwide, and we are pleased to be working with Freddie Mac and ACORN to provide the African American and Latino communities with useful information about the mortgage process and how to qualify to buy a home."

"There is a lot of misinformation about homebuying out there and that leaves people vulnerable to being taken advantage of," said Ray. "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."

Homeownership. Let the TRUTH Move You

MYTH	FACTS
Need almost perfect credit rating to qualify for a mortgage	You don’t need a perfect credit record. Even with past credit problems, you may still be able to buy a home. And, you can fix and improve your credit record.
A down payment of as much as 20 percent is required to buy a home	You may be able to buy a home with a downpayment of 3 percent or less. Today, the downpayment needed to buy a home is much lower that it once was. However, closing costs, property taxes and moving expenses are part of the cost of buying a home.
Lenders share personal financial information with each other and the government	Banks and other financial institutions protect your personal financial information–it’s the law.
People who do not have a checking or savings account cannot buy a home	Having a savings and checking account is a good idea. But you can buy a home without having a bank account.
You must have the same job for at least three years to qualify for a mortgage	Steady income is more important than how long you’ve been on the job. Income from second and third jobs can also be used when trying to get a mortgage loan.

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 two million renters in America.

With the 2004 merger of JPMorgan Chase & Co. and Bank One Corp., Chase Home Finance's parent company now includes more than 2,500 Bank One and Chase bank branches in 17 states. Chase Home Finance, an Equal Housing Lender, is headquartered in Iselin, New Jersey and is one of the nation's largest residential mortgage lenders, serving more than four million customers.

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