Countrywide Funding Corporation, based in Pasadena, and the Federal National Mortgage Assn. (Fannie Mae) have signed a commitment to finance $8 billion in home mortgages. Fannie Mae said the agreement is the single largest commitment in its history.
The mortgages, to be originated by Countrywide in all 50 states, will be exchanged for mortgage-backed securities issued by Fannie Mae. Countrywide is the nation's largest mortgage banker.
The $8 billion agreement includes a previously announced $1.25 billion of a variety of Fannie Mae's affordable home mortgages, including reduced down payment loans.
"Countrywide's commitment will provide home financing for tens of thousands of home buyers, ranging from lower income Americans buying their first home to middle-income homeowners refinancing their mortgage," said John H. Fulford, senior vice president in charge of Fannie Mae's western regional office.