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FREDDIE MAC, STANDARD FEDERAL BANK ANNOUNCE NEW ISLAMIC HOME FINANCING INITIATIVE FOR MICH. FAMILIES
Freddie Mac ^ | AUGUST 10, 2001

Posted on 08/05/2005 11:39:24 AM PDT by Andy from Beaverton

FREDDIE MAC, STANDARD FEDERAL BANK ANNOUNCE NEW ISLAMIC HOME FINANCING INITIATIVE FOR MICHIGAN FAMILIES

Freddie Mac’s Summer of Homeownership to Help More Observant Muslims

McLean, VA - Freddie Mac announced today a new initiative designed to help Muslims living in Michigan become homeowners while observing traditional Islamic restrictions on paying interest on mortgages and other types of debt. Developed with Standard Federal Bank and Detroit-based United Mortgage of America, the new initiative enables prospective homeowners to enter into long-term lease-purchase arrangements that permit them to later sell the house and profit from any home price appreciation.

Freddie Mac has agreed to invest an estimated $10 million in the purchase of these new lease-purchase mortgages as part of its Summer of Homeownership campaign. Freddie Mac’s “Summer of Homeownership” is a concentrated effort to pioneer new products, initiatives, and technology that will help expand homeownership opportunities to an additional 250,000 to 400,000 prospective homeowners a year.

“Today’s announcement again demonstrates Freddie Mac’s commitment to help America’s newest communities realize the traditional benefits of the American dream of homeownership,” said Saber Salam, vice president of customer strategies and offerings at Freddie Mac. “By working together with United Mortgage and Standard Federal, Freddie Mac is realizing its promise to foster homeownership opportunities in new and exciting ways.”

Under the initiative, prospective homeowners will work with United Mortgage, which will create a limited liability company (LLC) to purchase homes on behalf of the family. The LLC will purchase the property through a conventional 30-year fixed rate mortgage from Standard Federal Bank. Freddie Mac has agreed to purchase the mortgage.

The prospective homeowner is required to put down 20 percent of the home purchase price and enter into a 10-year lease with an option to buy with the LLC. The prospective homeowner’s monthly rental payments will cover the LLC’s mortgage, tax and insurance payments on the property.

The homeowner may buy the home during the lease term. At the end of the 10-year lease term, the homeowner may extend the lease and purchase option for an additional seven years. The lease allows the prospective homeowner to benefit from price appreciation at any time by exercising the purchase option and then selling the property to a new homebuyer.

“Working with Freddie Mac will enable Standard Federal Bank to serve the growing demand for home financing among Michigan’s observant Muslims,” said Mary M. Fowlie, Group Senior Vice President, Standard Federal Bank. “Today’s announcement underscores our commitment to provide our customers with the opportunity to become homeowners.”

According to Scott Elia of United Mortgage, members of the Michigan Muslim community have been asking for the opportunity to finance homeownership while maintaining their religious convictions. “We have been carefully developing a residential lease and purchase option program and have consulted with the respected scholar, Dr. Muhammad Imran Usmani, our Shariah Advisor, as well as outside legal counsel to develop the model documents and specifications for this program, and to ensure that it satisfies both Islamic principals and secular laws,” added Elia.

Freddie Mac’s agreement to invest in the mortgages underscores its commitment to expand homeownership opportunities for all of America’s households, including the nation’s estimated 2.5 million Muslim households. In March 2001, Freddie Mac became the first major U.S. mortgage investor to back Islamic homeownership when it agreed to buy housing contracts from the Pasadena, Calif.-based American Finance House -- LARIBA. Freddie Mac is also working with other lenders to meet the need for Islamic home financing in America.

Persons interested in learning more about this program are invited to attend an informational meeting on Saturday, August 11, 2001, at the Novi Hilton Hotel between 11a.m. and 2 p.m. The Novi Hilton Hotel is located at 21111 Haggerty Road, Novi, Michigan, north of Eight Mile Road, and west of I-275.

Standard Federal Bank is headquartered in Troy, Michigan and operates 180 Banking Centers, 13 Home Lending Centers and 950 ATMs throughout Michigan, Indiana and Ohio. As of December 31, 2000, the Bank had assets of $20.5 billion and deposits of $12.3 billion. Standard Federal is a wholly owned subsidiary of ABN AMRO North America, Inc.

United Mortgage of America is an assumed name of E & S Financial Group, Inc., a licensed mortgage broker and lender owned by Edward and Scott Elia. United Mortgage is a HUD approved mortgagee located in Farmington Hills, Michigan, offering mortgage loans in Michigan since 1997.

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 pass through 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.


TOPICS: Front Page News; Government
KEYWORDS: cary; discrimination; islam; madness; muslim; noway; selfdestruction; wearenuts
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This happened before 9/11!

Here's another storie from Freddie Mac on the same program. DEVON BANK, FREDDIE MAC ANNOUNCE EXPANDED FINANCING OPPORTUNITIES FOR MUSLIM HOMEBUYERS

1 posted on 08/05/2005 11:39:24 AM PDT by Andy from Beaverton
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To: Andy from Beaverton

WWWWWWWhhhhhaaaatttttt!!!!! Discrimination with our taxpayer dollars. Sh*t!


2 posted on 08/05/2005 11:40:49 AM PDT by lilylangtree
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To: Andy from Beaverton

The U.S. Dep't of Defense should provide a program that provides interest-free loans of weaponry to jihadists living in this country. We can never be too sensitive to the needs and wants of those who follow a death cult based on a man who molested little girls. /sarcasm


3 posted on 08/05/2005 11:43:00 AM PDT by peyton randolph (Warning! It is illegal to fatwah a camel in all 50 states)
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To: Andy from Beaverton

This is available to everyone right?


4 posted on 08/05/2005 11:43:19 AM PDT by OpusatFR (Try permaculture and get back to the Founders intent. Mr. Jefferson lives!)
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To: Andy from Beaverton

I assume then, that there will no tax deducton for interest, because it's not charged?


Or is this just another example of discrimination?

The single most racistt entity in our society is the fedral government.


5 posted on 08/05/2005 11:43:27 AM PDT by TexanToTheCore (Rock the pews, Baby!)
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To: Andy from Beaverton

I just changed my name to Ashmil! time to refi


6 posted on 08/05/2005 11:43:39 AM PDT by SF Republican
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To: Andy from Beaverton

What gimmick is this? Islam forbids taking interest on money LENT by Muslims, not paying interest on money BORROWED from others, as far as I know.

Nice, evil way for Muslims to be preferentially treated over others who have to pay interest to keep the banks working. Don't worry, the money lost to the Muslims will be pinched from the pockets of the "infidels".


7 posted on 08/05/2005 11:44:08 AM PDT by CarrotAndStick (The articles posted by me needn't necessarily reflect my opinion.)
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To: lilylangtree; OpusatFR

I'm sure that it's not really a no-interest loan, but a bookkeeping trick that pushes all the costs up front and preserves the fiction of zero-interest without incurring losses to the lender. That's why they set up an LLC.


8 posted on 08/05/2005 11:44:56 AM PDT by HostileTerritory
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To: Andy from Beaverton

This is racketeering.


9 posted on 08/05/2005 11:45:28 AM PDT by GOP_1900AD (Stomping on "PC," destroying the"and Left, and smoking out faux "conservatives" - Take Back The GOP!)
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To: lilylangtree

Misleading headline.

"The prospective homeowner is required to put down 20
percent of the home purchase price and enter into a
10-year lease with an option to buy with the LLC.
The prospective homeowner’s monthly rental payments
will cover the LLC’s mortgage, tax and insurance
payments on the property."

The zealots still pay the interest. It's just disguised.

FM is merely late getting into this game. Commercial
banks have been issuing these symbolically non-loans
for some time. And they aren't in the charity business.

These home buyers probably pay MORE than a non-Muslim
would, and they presumably forego the tax benefits.

I don't see any real problem.


10 posted on 08/05/2005 11:46:12 AM PDT by Boundless
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Comment #11 Removed by Moderator

To: CarrotAndStick; SF Republican

Read it again. An independent corporation buys the house on behalf of the Muslims using a 30-year fixed-rate mortgage, and then leases it to them for 10 years. Their lease payments cover the cost of the interest on the mortgage, but they can tell themselves it's a rent-to-own situation.

Good God, there's no free lunch here. It's all spelled out in the article. Why do people believe that it would be any different? If Muslims decided their religion didn't let them pay taxes, the IRS would be on them like white on rice.


12 posted on 08/05/2005 11:47:00 AM PDT by HostileTerritory
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Comment #13 Removed by Moderator

To: GOP_1900AD

Um, how is this racketeering?


14 posted on 08/05/2005 11:47:31 AM PDT by HostileTerritory
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To: HostileTerritory
I'm sure that it's not really a no-interest loan, but a bookkeeping trick that pushes all the costs up front and preserves the fiction of zero-interest without incurring losses to the lender. That's why they set up an LLC.

Exactly. They aren't going to be losing money over this.

15 posted on 08/05/2005 11:47:54 AM PDT by malakhi
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To: lilylangtree

I'm sure they'll let you in on it too. If you want to pay more for your home so that you can pretend not to pay interest, feel free.


16 posted on 08/05/2005 11:47:55 AM PDT by green iguana
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To: Andy from Beaverton; lilylangtree; peyton randolph

While I don't approve of the goverment involving itself in schemes tailored to meet the needs of a particular religious group, this financing arrangement is definitely not cheaper than the regular interest-bearing loans the rest of us buy houses with. In fact it's almost certainly a bit more expensive, due the extra transactions built in. It avoids the Muslim prohibition on paying "interest", but this is only semantic. The interest is getting paid, but by an intermediary, from whom the Muslim enters into a "lease with option to buy". You can be sure the intermediary is making a few bucks on each deal.

If this arrangement saved a penny, everybody would be taking advantage of it, since it is most certainly not actually restricted to Muslims. Anybody can do it; it's just that the rest of us don't want to.


17 posted on 08/05/2005 11:48:00 AM PDT by GovernmentShrinker
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To: Andy from Beaverton
New slogan for Freddie Mac: "Freddie Mac: Promoting dhimmitude one home owner at a time." This is sickening! Our tax dollars going to favor muslimes....and you can bet the Atheists, Criminals and Lechers Union isn't going to say one word about it!

CALLING MARK LEVIN! We need you and Landmark to raise some noise about this!

18 posted on 08/05/2005 11:49:07 AM PDT by Bombardier ("Religion of Peace" my butt.....sell that snakeoil to someone who'll buy it!)
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To: Andy from Beaverton

Hey, what about financing a cave in Tora Bora?


19 posted on 08/05/2005 11:49:32 AM PDT by Kurt_D
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To: HostileTerritory

Can they eat pork of they set up an LLC which relabels the pork as "beef"?


20 posted on 08/05/2005 11:49:56 AM PDT by KarlInOhio (Bork should have had Kennedy's USSC seat and Kelo v. New London would have gone the other way.)
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To: OpusatFR

Yes, it's available to anyone crazy enough to want to pay more for their home than they have to.


21 posted on 08/05/2005 11:50:27 AM PDT by GovernmentShrinker
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To: SF Republican

Exactly what I was thinking. Now where did I put that koran........


22 posted on 08/05/2005 11:50:33 AM PDT by moehoward
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To: Andy from Beaverton

Isn't this financial profiling?


23 posted on 08/05/2005 11:50:52 AM PDT by caisson71
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To: Andy from Beaverton

I can just see the foreclosure situation here.
A scene straight out of the Middle East.
"We are here at Abdulas home where the evil bank is serving foreclosure papers. The large crowd of hooded young men are chanting "Death to America".....


24 posted on 08/05/2005 11:51:32 AM PDT by HereInTheHeartland (The Democrat party is the official party of the Morlocks.)
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To: Andy from Beaverton

Lease with option to buy = screwing customer


25 posted on 08/05/2005 11:52:06 AM PDT by AppyPappy
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To: AppyPappy
Lease with option to buy = screwing customer

Do you have a problem with that?

26 posted on 08/05/2005 11:53:37 AM PDT by green iguana
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To: OpusatFR
This is available to everyone right?

Yes. If you want a bad deal.

27 posted on 08/05/2005 11:53:50 AM PDT by Modernman ("A conservative government is an organized hypocrisy." -Disraeli)
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To: HostileTerritory

If people think these Mohammedans are getting interest free loans, and paying principal only, they're wrong.

The way these things work is that an intermediary keeps the title of the house, and charges the Mohammedan the principal and RENT over and above the principal.

So, instead of paying interest, they pay "rent."

They are not getting a better deal than anyone else. When it's all said and done, it's probably a worse deal, but technically they are not paying any interest.


28 posted on 08/05/2005 11:54:03 AM PDT by Sometimes A River (Che Guevera isn't cool)
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To: Andy from Beaverton

Is this not totally illegal on so many different levels: Separation of church and state, discrimination, breaking the fair housing clause (by law we cannot discriminate based on blah blah blah religion, ethnicity, sexual preference blah blah blah)?


29 posted on 08/05/2005 11:54:16 AM PDT by sully777 (The Religion Of Peace apparently kills!)
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To: Andy from Beaverton
WTF! I guess I need to don the veil and move to Michigan to get a good loan rate? NO INTEREST! With our tax dollars? Absolutely unbelievable.

Freddie Mac’s agreement to invest in the mortgages underscores its commitment to expand homeownership opportunities for all of America’s households,

Gee, will they go out on such a limb for me? Not likely. Isn't that religious discrimination against non-Muslims? Who likes to pay interest?

30 posted on 08/05/2005 11:55:47 AM PDT by fortunecookie
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To: Bombardier
This is sickening! Our tax dollars going to favor muslimes

I take it you didn't actually read the article, then.

31 posted on 08/05/2005 11:55:51 AM PDT by Modernman ("A conservative government is an organized hypocrisy." -Disraeli)
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To: Acts 2:38
it's probably a worse deal

The intermediary is not working for free - it's definitely a worse deal. Also they can't take the interest deduction, so it's most definitely a worse deal. But they remain "pure"...

32 posted on 08/05/2005 11:56:34 AM PDT by green iguana
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To: sully777
Is this not totally illegal on so many different levels: Separation of church and state, discrimination, breaking the fair housing clause

None of the above.

33 posted on 08/05/2005 11:56:55 AM PDT by Modernman ("A conservative government is an organized hypocrisy." -Disraeli)
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To: Andy from Beaverton

This IMO is good.

The MORE money they pay for their house, less money they have to fund islamic "charities" AKA terrorist finance fronts.


34 posted on 08/05/2005 11:57:17 AM PDT by American_Centurion
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To: TexanToTheCore
The single most racistt entity in our society is the fedral government.

You mean the feral government, doncha?

35 posted on 08/05/2005 11:59:04 AM PDT by savedbygrace ("No Monday morning quarterback has ever led a team to victory" GW Bush)
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To: KarlInOhio

LOL...so lemmie see if I got this straight. Allah doesn't approve of paying interest, but if you cook the books, call it something else, then Allah is okay with it? Do they really think they are pulling one over on Allah?


36 posted on 08/05/2005 11:59:26 AM PDT by Lekker 1 ("Who the hell wants to hear actors talk?"- Harry M. Warner, Warner Bros., 1927)
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To: TexanToTheCore

Wrong. Institutional racism dominates most college campuses to an extent you can't appreciate from the outside. From job promotions, to appointments, to favored student groups, scholarships, educational programs, speakers, and centers, it is all about being a member of a favored race, gender, and sexual preference.


37 posted on 08/05/2005 12:00:52 PM PDT by Neoliberalnot (Conservatism: doing what is right instead of what is easy)
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To: Modernman

You take it wrong. And don't doubt that they'll find some way to favor the muzzies, whether they legally are able to or not. This IS a government bunch we're talking about here....you know, "equality for all, unless you're not a member of a protected class, then you can get stuffed."


38 posted on 08/05/2005 12:01:10 PM PDT by Bombardier ("Religion of Peace" my butt.....sell that snakeoil to someone who'll buy it!)
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To: fortunecookie
Gee, will they go out on such a limb for me? Not likely. Isn't that religious discrimination against non-Muslims? Who likes to pay interest?

you are also one of those who don't read the article, just let your assumptions fly, and jump up and down screaming type huh?

39 posted on 08/05/2005 12:01:41 PM PDT by Republican Party Reptile
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To: fortunecookie

Would you rather pay interest, or rent?

Because, that's exactly what these Mohammedans are paying when they choose to not pay interest.


40 posted on 08/05/2005 12:03:07 PM PDT by Sometimes A River (Che Guevera isn't cool)
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To: Bombardier

No one would invest in a bad deal on purpose.

The owners of Freddie Mac are investors.

These types of loans probably make more money for the investors.


41 posted on 08/05/2005 12:04:26 PM PDT by Sometimes A River (Che Guevera isn't cool)
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To: Andy from Beaverton

So if I go get some Muslim garb, and go apply with Freddy Mac, I'll get a no interest loan?! Where do I sign up? How do they verify that I'm not a Christian? Can we sue them for religious discrimination?!


42 posted on 08/05/2005 12:04:39 PM PDT by I'm ALL Right!
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To: CarrotAndStick
This is only the beginning. You haven't seen discimination yet. Wait until Islam gets a bit larger. Mark my words.
43 posted on 08/05/2005 12:05:41 PM PDT by SQUID
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To: Acts 2:38

Again, we're talking about the government.....the same geniuses who gave you Social Security and federal flood insurance. Think about it for a moment.


44 posted on 08/05/2005 12:06:53 PM PDT by Bombardier ("Religion of Peace" my butt.....sell that snakeoil to someone who'll buy it!)
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To: Bombardier
You take it wrong. And don't doubt that they'll find some way to favor the muzzies, whether they legally are able to or not.

I've represented lenders who have given these "no-interest" mortgages to Muslims investment groups. Lenders love these transactions because once you run the numbers you realize that the bank makes more money off of this than they do off of a regular mortgage.

This IS a government bunch we're talking about here

Not really. Freddie Mac is run like a regular business, more or less. It is not a government agency. It's interested in turning a profit, and these Sharia-compliant deals are big money-makers.

45 posted on 08/05/2005 12:07:06 PM PDT by Modernman ("A conservative government is an organized hypocrisy." -Disraeli)
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To: HostileTerritory

you are correct.

The system is sure to be gamed, however.


46 posted on 08/05/2005 12:07:56 PM PDT by MeanWestTexan
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To: Bombardier

I know about how these loans work.

The lender profits, trust me.


47 posted on 08/05/2005 12:08:17 PM PDT by Sometimes A River (Che Guevera isn't cool)
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To: Lekker 1
Allah doesn't approve of paying interest, but if you cook the books, call it something else, then Allah is okay with it?,

Basically. There are imams in the Gulf States that make a good living off of "blessing" these types of deals. For a fee, of course.

48 posted on 08/05/2005 12:08:46 PM PDT by Modernman ("A conservative government is an organized hypocrisy." -Disraeli)
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To: Andy from Beaverton

Why don't they just waive the credit and residency check, and give away everything to these "religious of peace".


49 posted on 08/05/2005 12:09:08 PM PDT by AbeKrieger (Islam is the virus that causes al-Qaeda.)
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To: I'm ALL Right!
So if I go get some Muslim garb, and go apply with Freddy Mac, I'll get a no interest loan?!

These loans are open to anyone stupid enough to take them.

50 posted on 08/05/2005 12:09:54 PM PDT by Modernman ("A conservative government is an organized hypocrisy." -Disraeli)
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