U.S. Representative Luis V. Gutierrez Joins Guaranty Bank and Fannie Mae to Announce 'Buy for Family' Mortgage; Qualified Borrow

U.S. Representative Luis V. Gutierrez Joins Guaranty Bank and
Fannie Mae to Announce 'Buy for Family' Mortgage; Qualified Borrower Can
Finance the Purchase of a Residence for a Parent or Sibling Who is Unable to
Purchase for Themselves 


CHICAGO, Sept. 1  /PRNewswire/ -- U.S. Representative Luis V. Gutierrez (D- IL)
today joined local community leaders, housing advocates, and representatives
from nonprofit organizations, Guaranty Bank, and Fannie Mae (NYSE:FNM), the
nation's largest source of financing for home mortgages, to announce a new
mortgage designed to help increase affordable homeownership opportunities for
underserved markets, including low- and moderate-income immigrant and minority
families.  "Buy for Family," a new mortgage designed by Guaranty Bank, allows a
qualified borrower to finance the purchase of a residence for his or her
parents or a sibling if they are unable to buy a home for themselves.  Guaranty
Bank will originate the Buy for Family loans, and Fannie Mae will purchase the
eligible loans.

"The power of homeownership is a central wealth building tool and an essential
vehicle for long term financial security and stability," said Rep. Gutierrez. 
"And that is why Buy For Family is so important, because it will help tear down
barriers that currently prevent homeownership and it will provide opportunities
and options for first-time home buyers, especially in minority and immigrant
communities."

"America was built on the backbone of new immigrants who arrived in this
country trying to make a better life for their families," said Chicago Housing
Commissioner John G. Markowski. "Buy for Family is a great solution for
immigrants to buy their piece of the American dream.  When we have a gap in the
homeownership rate, that's a gap in access to wealth."

Buy for Family is a flexible, affordable mortgage that helps qualified buyers,
such as the first generation children of immigrants, purchase a home for their
parents or siblings, who may not have traditional forms of credit or use
mainstream banking and are, therefore, unable to qualify to buy the home
themselves.  Buy for Family offers borrowers the opportunity to finance a
parent or sibling's home through several key features.

Borrowers contribute at least $500 down from either their own funds, with the
remainder coming from a gift from their family member or grants from a church,
employer, municipality or nonprofit agency.  In addition to the flexible down
payment sources, additional funds may be obtained from cash on hand or money
not traditionally placed in a financial institution.  To be eligible for the
Buy for Family product, the home must be located in Chicago, Atlanta, Detroit,
and the State of Wisconsin.

Buy for Family is intended to help boost homeownership rates, which have been
on the rise recently.  According to the National Association of REALTORS(R),
the homeownership rate for African American households in the first quarter of
2004 was 49.3 percent, up from 47.7 percent in the first quarter of 2003, while
the homeownership rate for Hispanic households was 47.3 percent, up from 46.7
percent a year earlier.  In addition, the homeownership rate for Asians, Native
Americans, and Pacific Islanders was 58.2 percent, up from 55.7 percent in the
first quarter of 2003.  The homeownership rate for non-Hispanic whites was
75.5, up from 75.0 percent a year earlier.

"These are very needed programs that we bring to the table.  Buy for Family
will enable many minority and immigrant families to realize the American dream
of homeownership, by reducing some of the barriers they presently face," said
Guaranty Bank's Executive Chairman Gerald Levy. "Guaranty Bank is thrilled to
partner with Fannie Mae and further demonstrate our commitment to the
communities we serve by offering more diverse and creative programs and
opportunities to the residents of the communities we serve."

The Buy for Family mortgage is offered by Guaranty Bank as part of its recently
announced five-year, $2 billion multicultural lending initiative with Fannie
Mae that is designed to increase affordable homeownership opportunities for
underserved markets, including immigrant and minority families.

As part of this initiative, Guaranty Bank and its subsidiaries, Guaranty
Mortgage, Shelter Mortgage Company, and GN Mortgage, will offer new or enhanced
mortgage products that utilize options for helping people overcome barriers
such as blemished credit or lack of a down payment.  Fannie Mae has committed
to purchase from Guaranty Bank $2 billion in eligible loans originated under
this initiative.

"Fannie Mae is committed to bringing more initiatives to the marketplace that
provide solutions to one of America's most pressing housing needs," said Terry
Young, director of Fannie Mae's Illinois Partnership Office.  "With Guaranty
Bank, we are excited about Buy for Family, and how it recognizes the need for
more affordable housing in underserved markets, including immigrant and
minority families.

This effort is part of Fannie Mae's American Dream Commitment(R) for Illinois,
a new seven-year, $135 billion Illinois housing investment plan to help finance
affordable housing for 900,000 families across the state.

For information about the Buy for Family mortgage, the multicultural
homeownership initiative, to apply for a loan, or learn more about loan
opportunities, contact Guaranty Bank at 1-847-439-5626.

For more information on Fannie Mae's affordable mortgage products, consumers
may call Fannie Mae's Consumer Resource Center at 1-800-7FANNIE
(1-800-732-6643), Monday through Friday, 8:00 a.m. to 4:00 p.m. CDT.

Guaranty Bank is a Federal savings bank headquartered in Milwaukee, Wisconsin. 
Guaranty Bank has more than 117 retail locations throughout southeast
Wisconsin, northern Illinois, southeast Michigan and Minnesota. Guaranty Bank's
subsidiaries and d/b/a's include: Guaranty Mortgage, GB Home Equity, GN
Mortgage, Shelter Mortgage, and BestBank (in Southeast Michigan). At the end of
June 2004, Guaranty Bank's assets totaled $1.89 billion. Guaranty Bank is owned
by Guaranty Financial Corp.  The stock symbol of Guaranty Financial Corp. is
"GFCJ."

Founded in 1923, Guaranty Bank has established a strong presence as a
well-known community bank. As a subsidiary of Guaranty Bank, Shelter Mortgage's
nationwide offices specialize in its own niche of mortgage lending. With more
than 300 loan programs available, borrowers are placed with the best-suited
mortgage fitting their needs. Personalized customer service is one reason why
Guaranty Bank is one of the top 50 lenders in America. For more information
visit http://www.shelter-mortgage.com/

Fannie Mae is a New York Stock Exchange company and the largest non-bank
financial services company in the world.  It operates pursuant to a federal
charter and is the nation's largest source of financing for home mortgages.
Fannie Mae has pledged through its "American Dream Commitment" to expand access
to homeownership for millions of first-time home buyers; help raise the
minority homeownership rate to 55 percent; make homeownership and rental
housing a success for millions of families at risk of losing their homes; and
expand the supply of affordable housing where it is needed most.  Since 1968,
Fannie Mae has provided $6.3 trillion of mortgage financing for 63 million
families.  More information about Fannie Mae can be found on the Internet at
http://www.fanniemae.com/.

Style Usage:  Fannie Mae's Board of Directors has authorized the company to
operate as "Fannie Mae," and the company's stock is now listed on the NYSE as
"FNM."  In order to facilitate clarity and avoid confusion, news organizations
are asked to refer to the company exclusively as "Fannie Mae." 

DATASOURCE: Fannie Mae; Guaranty Bank



CONTACT:  Deborah D. Russell of Fannie Mae, [phone]; or Jay

Skwierawski or Carolyn Weritz, [phone] and Ruben Tijerino (Se habla

espanol), [phone], ext. 6445, all of Guaranty Bank



Web site:  http://www.fanniemae.com/

http://www.shelter-mortgage.com/ 



Company News On-Call:  http://www.prnewswire.com/comp/305450.html

Copyright