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Popular Mortgage Completes $400 Million Loan Delivery To Fannie Mae
Deal is the single largest mortgage loan transaction in one month by a Hispanic lender
BY JOSE L. CARMONA
March 22, 2001
Popular Mortgage, a subsidiary of Popular Inc., recently completed the delivery of the single largest mortgage loan transaction in one month by a Hispanic lender to Fannie Mae, the nations largest provider of funds for home mortgages.
The sale of the $400 million loan portfolio to Fannie Mae in December 2000 enabled more than 3,800 low- and moderate-income families to become homeowners in Puerto Rico.
Each month, mortgage lending institutions pool together their mortgage loan portfolios and sell them in the secondary market as mortgage backed securities (MBS). These MBS entitle an investor to an undivided interest in the underlying mortgage loan pool.
The sale of loan portfolios increases the liquidity and efficiency of mortgage loan funding, making more capital available to low- and moderate-income homeowners at competitive interest rates.
Popular Mortgage ranks 55 out of the top 100 Fannie Mae lenders in the U.S., and number one in meeting the goals set forth under Fannie Maes mortgage commitments to low- and moderate-income and minority families.
"Popular Mortgage and Fannie Mae are working together to help Puerto Rico residents realize the dream of homeownership," Popular Mortgage President Silvio Lopez told CARIBBEAN BUSINESS. "Our combined resources will help strengthen communities and meet the very serious housing needs of many families."
There is an estimated shortage of 100,000 housing units in Puerto Rico, especially in the low- to moderate-income sectors, Lopez noted. Nonetheless, the island boasts the highest homeownership rate in the Western Hemisphere, with 75% versus 67% for our stateside counterparts.
"Popular Mortgages $400 million loan delivery to Fannie Mae represents a spectacular commitment by the countrys largest minority lender [Banco Popular] to the families of Puerto Rico," said Zach Oppenheimer, senior vice president of Fannie Maes Northeastern Regional Office, which includes Puerto Rico and the U.S. Virgin Islands. "Our working relationship with Popular extends back for more than 10 years, and we look forward to many more years of service to the families of Puerto Rico."
The loan delivery was part of Fannie Maes American Dream Commitment, a pledge to help shrink the nations homeownership gaps through a 10-year, $2 trillion initiative by increasing homeownership rates and serving 18 million targeted U.S. families by the end of the decade.
The Federal National Mortgage Association, better known as Fannie Mae (NYSE: FNM) is the largest non-bank financial services company in the world and the nations largest provider of funds for home mortgages. Since 1968, it has provided $2.9 trillion worth of mortgage financing for over 35 million families in the U.S.
Established in 1998, Popular Mortgage operates 22 branches throughout the island, with plans to add eight more branches this year. During fiscal year 2000, the islands third largest mortgage institution originated $900 million in mortgage loans.
This Caribbean Business article appears courtesy of Casiano Communications.