Lending initiative announced

Scott Csernyik

3/28/2002 12:00:00 AM

A $5 million lending initiative announced on March 22 will allow residents on the Isabella Reservation greater access to affordable mortgage financing while pursing homeownership opportunities.

Several first-time homeowners were joined at the event by Saginaw Chippewa Tribal officials, as well as representatives from Flagstar Bank, PMI Mortgage Insurance Co. and Fannie Mae. The event began with a pipe ceremony conducted by Beaver Pelcher.

"Providing affordable housing opportunities is important to our Tribal members," said Chief Maynard Kahgegab Jr. during the one-hour program at the Soaring Eagle Casino & Resort. "Finding that housing on reservation land is equally important."

The Native American Conventional Lending Initiative offers a low down payment mortgage with additional credit flexibilities. This mortgage allows qualified borrowers, who are Saginaw Chippewa Tribal members, to make a 1 percent down payment from the borrower's own funds. The remaining 2 percent may be provided by the Saginaw Chippewa Housing Department, or from a gift or grant from a nonprofit organization. This mortgage is available for the purchase of a new home or the purchase and rehabilitation of an existing home.

Isabella Reservation resident and first-time homeowner Candace Russell was one of the first Saginaw Chippewa Tribal members who have recently closed loans through the initiative. Besides Russell, other homeowners honored during the announcement included Christopher Sineway, Orville Jackson and Delmar Jackson Sr.

"I never dreamed that I would ever become a homeowner," stated Russell, who's been saving since 1991 to buy a home. "But after working with everyone involved in the lending initiative, my dream of homeownership has become a reality."

Under the tri-party agreement, Flagstar Bank is allowed to offer Tribal members conventional mortgages for purchase and refinance. PMI Mortgage Insurance Co. is also a partner and provides mortgage insurance that allows for a 97% loan-to-value, with a 1 percent from the borrowers own funds.

In addition, Flagstar Bank is offering Fannie Mae's HomeStyle Construction-to-Permanent mortgage, which enables Tribal members to take out a single loan for construction and permanent financing. Flagstar has a dedicated loan officer serving the Tribe resulting in 22 approved loans. Five of these loans have already closed.

"HomeStyle Construction-to-Permanent gives families the freedom to make choices about their standard of living," said Mark Stevens, senior vice president of Flagstar. "This product will give Native American families living on the Isabella Reservation an opportunity to invest in their community, setting a precedent for the next generation of homeowners."

Rob Levin, executive vice president of housing and community development for Fannie Mae, said lending initiative would not be limited to $5 million.

"Five million is a milestone, not a limit" he explained. "We already have 22 families with approved loans. After that, we want to do multiples of that $5 million. We look forward to 10, 15, 20 and beyond."

U.S. Rep. Dave Camp, R-Midland, stated during the announcement the initiative is "really about the authority of owning your own home."

"This is a great public-private partnership that improves the standard of living on the reservation," added Camp, a member of the House Ways and Means Committee. "This new initiative is designed to bring more affordable financing to home buyers on the Isabella Reservation, resulting in more homeowners and a greater economic base for Saginaw Chippewa families."

Jean Garrison, affordable housing consultant with PMI Mortgage Insurance Co., said "your homes are about more than brick and mortar."

"It's about your families," she said. "Most of all, it's about life. Your life."

Garrison also said that working with the Saginaw Chippewa Indian Tribe of Michigan has been a high priority.

"PMI is delighted to work with the Saginaw Chippewa Housing Department, Flagstar Bank and Fannie Mae to offer this mortgage, which will help more Native Americans in Michigan achieve the dream of homeownership," she added.