Renée Bayne

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January 17, 2002

Mayor David Bradshaw, Union Planters, First Horizon Home Loans and Fannie Mae Announce New Initiative to Preserve Historic Homes in the City of Oak Ridge

OAK RIDGE, TN – Historic homes in the city of Oak Ridge are one step closer to being preserved and modernized, thanks to a new initiative announced today by Oak Ridge Mayor David Bradshaw, Union Planters, First Horizon Home Loans and Fannie Mae (FNM/NYSE), the nation’s largest source of financing for home mortgages. The new initiative includes special mortgage products and a proposal for the development of remodeling plans provided by the city to families who wish to buy and remodel the original housing stock built by the U.S. Government when Oak Ridge was a restricted federal enclave during the 1940’s and ‘50’s.

“Houses like these represent our community’s roots and are worth preserving and reviving,” said Mayor Bradshaw, who hosted the event at his home, an Atomic Energy Commission Model 18 built in 1949 which he purchased and restored in 1996. “I am encouraged that Union Planters, First Horizon Home Loans and Fannie Mae see the value of these homes, recognize their importance to our community, and are stepping forward with mortgage products that will make it easier for families to purchase and remodel these homes.”

Union Planters and First Horizon Home Loans will offer Fannie Mae’s HomeStyle mortgage product to help prospective home buyers by providing them with an affordable home renovation financing alternative to high-price consumer and home equity loans. Through HomeStyle, borrowers can finance the purchase or refinance the renovation of a home with just one loan. The amount of the loan is based on the value of the property after the work is done, which represents a real advantage over more typical renovation loan products. HomeStyle also offers buyers low down payment options of 3 to 5 percent, in addition to allowing the use of grants or gifts toward the down payment.

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HomeStyle

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“HomeStyle gives families the freedom to make choices about their standard of living,” said Mike Simmons, assistant vice president of First Horizon Home Loans. “This mortgage product we will offer will give city of Oak Ridge families an opportunity to investment in their community, setting a precedent for the next generation of homeowners.”

Fannie Mae will purchase the eligible home rehabilitation loans originated by Union Planters and First Horizon Home Loans. Borrowers will work with loan officers experienced in home improvement lending who originate the loans, approve renovation plans, monitor the progress of the renovations, and approve contractor selection.

“We are very pleased to offer this unique mortgage product,” said Keith Powers, regional president of Union Planters. “We have dedicated staff that will work in concert with the home buyer to ensure that the process is as smooth as possible and that the value of the home is enhanced.”

“Fannie Mae shares Mayor Bradshaw’s vision of restoring and revitalizing Oak Ridge’s original neighborhoods,” said Ralph Perrey, director of Fannie Mae’s Tennessee Partnership Office. “We are proud that our mortgage products, offered by our partners at Union Planters and First Horizon Home Loans will help make that possible.

For more information about the renovation of historic homes in the city of Oak Ridge, consumers may call (865) 425-3584.

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, 9:00 a.m. to 5:00 p.m. EST.

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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 is working to shrink the nation’s “homeownership gaps” through a $2 trillion “American Dream Commitment” to increase homeownership rates and serve 18 million targeted American families by the end of the decade. Since 1968, Fannie Mae has provided more than $3.0 trillion of mortgage financing for 40 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 “Fannie Mae.” In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as “Fannie Mae.”