HUD TO OFFER A HALF PRICE HOME IN PHILADELPHIA TO LUCKY LOTTERY WINNER

PHILADELPHIA - One lucky family will have the chance to own a three-bedroom home here in Philadelphia for half
price because of an innovative pilot program called Homewise. The U.S. Department of Housing and Urban Development's (HUD) Regional Director Milton R. Pratt, Jr. announced this opportunity today in front of the home at 6919 Buist Avenue.

HUD, in cooperation with the National Housing Endowment, Wells Fargo Home Mortgage, the National Association of Home Builders (NAHB), the City of Philadelphia's Office of Housing and the Homeownership Counseling Association of Delaware Valley hopes to encourage housing counseling by offering an opportunity to share in the American Dream
of homeownership.

Under the pilot program, the National Housing Endowment will purchase the Buist Avenue property from HUD's Pennsylvania inventory of homes and will work with the local NAHB-affiliated homebuilder to renovate the property using in-kind donations of labor and materials as well as $10,000 in donated funds each from Fannie Mae and Freddie Mac for a total contribution of $20,000.

"This innovative program is designed to encourage those who wish to become homeowners to enroll in a housing counseling program for a chance to win the home in Philadelphia at half its appraised value," said Milton R. Pratt, Jr., HUD regional director. "Housing education is critical to helping a family buy a home and keep it during tough times."

"The Homeownership Counseling Association of the Delaware Valley is proud to be a partner in this initiative to promote homeownership," said Allison Hughes, the Association's executive director. "I can't think of a better way to show how committed we are to providing opportunities for homeownership than this lottery."

"Fannie Mae is pleased to be a partner in the Homewise program to increase participation in housing counseling and
its benefits to first time home buyers," said Cheryl Croxton, managing director, Fannie Mae's Northeastern Regional Office in Philadelphia. "Fannie Mae recognizes the very important role housing counselors play in creating homeownership opportunities and helping to keep people in their homes."

"Freddie Mac puts its mission to expand affordable homeownership opportunities first. We are pleased to be a part
of this unique HUD effort to underscore the lasting value of homebuyer counseling and put more Philadelphia families on the road to homeownership," said Craig Nickerson, vice president of expanding markets at Freddie Mac.

Eligible buyers must be first-time homebuyers who have completed an approved housing counseling course and earn
a total household income at or below 80% of the median income (for example, for a family of four, the maximum household income would be $55,040 annually). The application period is underway and will continue through August 31. Those interested in applying for this program can find information and an application at 1-888-297-8685.

Completed applications must be delivered to a HUD approved housing counseling agency. After applicants are screened, a list of those who meet the criteria will be forwarded to local officials who will make the final selection through a lottery.

To make the property more affordable to the lottery winner, 15 year, no interest rate financing will be arranged,
with payments to be based on one-half of the home's appraised value. The winner will also be required to sign a lien representing the balance of the appraised value, which will be forgiven if the buyer remains in the home and makes timely payments for five years.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.

Homeownership Counseling Association of Delaware Valley is a membership-based organization that provides support and training to non-profit housing counseling agencies that promote homeownership opportunities for
low-and moderate-income households. The Association has more than 33 members, which provide client services
such as first-time homebuyer counseling, budgeting, credit and debt management, delinquency, default and foreclosure prevention, and home improvement/rehabilitation training. The Association is dedicated to providing education and resources to promote greater access to homeownership. For more information about the Association and its programs, visit www.hcadv.org.

About NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 215,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. Known as "the voice of the housing industry," NAHB is affiliated with more than 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the more than 1.77 million new housing units projected for 2004, making housing one of the largest engines of economic growth in the country.

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. Since 1968, Fannie Mae has provided $6 trillion of mortgage financing for more than 60 million families.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has opened doors for one in six homebuyers and more than two million renters
in America.