"We have to do more, because too many people have still not achieved the American Dream. For this reason, Fannie Mae has doubled the ante by launching a $2 trillion American Dream Commitment, that includes serving at least 18 million undeserved families–especially minority families–before the decade is over. We’re breaking through the old red lines and bringing affordable mortgage credit to people that have always been overlooked, overcharged, neglected and rejected. This reflects action towards our commitment to do more," remarked Raines. Consequentially, Fannie also achieved its $1 trillion commitment to serve undeserved families, eight months ahead of the 2000 schedule. However, according to Raines, "We know that without the mayors, and your dreams of building stronger cities through better housing our $1 trillion pledge would’ve been an empty promise. Moreover, this commitment alone provided nearly $46 billion to over 400,000 minority families last year."

Raines further asserted Fannie Mae’s stance and position against predatory lending practices which primarily targets residents of many low-income, minority neighborhoods. "Too many borrowers are being steered to the subprime market or sucked in by predatory lenders. We have said to our lenders‘ don’t send us any loans that have the faintest whiff of equity stripping, pre-payment penalties and other predatory practices.‘ On this note, Fannie Mae is working with the Leadership Conference on Civil Rights to formulate industry-wide standards to fight this scourge, and convened a recent conference near Washington to discuss and determine the role of technology in closing the racial homeownership gap in this country. Technology and financial deregulation are giving consumers more power, more choices and lower costs. Fannie affirms that automated mortgage underwriting systems can help to expand approvals for minority borrowers, and that they want their system to be the best in the industry.

Furthermore, Raines highlighted some successful partnership efforts with various cities. And, in a recent article on ‘the Market Power of Cities,’ states that cities retain surprising strength regarding their density, infrastructure, and central location that will position many of them to compete effectively in the new metropolitan economy. Raines, further attributes the secondary mortgage market for stimulating some incredible partnerships with mayors that see housing as keys to better cities.

"The good things that are happening here in Seattle are happening in cities all over the country thanks, in a large degree, to the dedication by mayors to housing and homeownership. The City of Seattle, launched a five-year, $1.5 billion ‘House Seattle’ investment plan with a pledge to help 18,000 families of modest means, as well as a $9 billion "House Puget Sound" investment plan to serve 90,000 families. Fannie Mae has also made a $10 million debt investment with the Denver Community Development Agency to buy land, prepare sites, and to build and rehabilitate over 1,000 units of housing in neighborhoods that need it the most, and this effort is part of an overall five-year, $15 billion investment plan. In the District of Columbia, Fannie is working in concert with the City and Howard University to transform the LeDroit Park neighborhood. This neighborhood is an example of an emerging market whose many overlooked assets could be used to lure significant investment back into the neighborhood. Housing will be provided for students and faculty, which is also part of a $3 billion investment plan. Also, more than $30 million has been committed to the Beacon Hill Redevelopment Partnership, a collaborative effort aiming to serve 43,000 people by building an entire new community in the city’s historic African-American core in Kansas City. There are countless other examples touting Fannie’s achievements within cities across the nation.

"Our mission is to tear down barriers, lower costs and increase the opportunities for homeownership and affordable rental housing. Because having a safe place to call home strengthens families, communities and the nation as a whole. It is virtually impossible to achieve this goal without the assistance of mayors’ efforts individually, collectively, and nationally." Raines articulates that the future of all cities will not be the same, but by better understanding their individual strengths, their most productive roles can be achieved. He concluded his plenary remarks by saying that he looks forward to a continued working relationship with mayors, hopefully resulting in further achievements and accomplishments within this arena.

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