HOME GROWN page 45
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AUDETTE CADILLAC
7100 Orchard Lake Rd • West Bloomfield
40
(810) 851-7200 ext. 231
established by President Frank-
lin D. Roosevelt as a New Deal
program to help Americans ob-
tain housing loans. The govern-
ment-backed loans, made by
banks, provided liquidity so that
ordinary people didn't have to
come up with a 50-percent down
payment for a home.
In 1968, the program split.
The Federal Housing Authority,
or FHA, is still under the control
of the federal government, while
Fannie Mae is private and trad-
ed publicly on the New York
Stock Exchange (FNM). The
company, with offices in 25 cities,
buys mortgages from banks and
other lenders, guaranteeing a
flow of income for those seeking
loans to purchase a home. The
company also offers prospective
homeowners mortgages that pre-
sume the after-rehabilitated val-
ue of the house rather than its
current appraised value.
Fannie Mae is the largest
provider of home mortgages in the
country. More than 11 million
American families live in homes
the company has helped finance.
"We have revolutionized over
the last 30 years the way mort-
gages are made because we are
a private company and can de-
velop unique products that can
target groups that are under-
served," Mr. Dworkin explains.
"We have found a lot of different
ways to bring the world's capital
into the American housing mar-
ket.
"Because we package these
mortgages into securities, we al-
low people on Wall Street to in-
vest in them. They now can go to
Fannie Mae and buy a pool of
mortgages, so risk is balanced,
which Wall Street likes to see."
Like Forrest Gump, Mr.
Dworkin's colorful history does
not show on his face. At 34, he is
modest and conservatively
dressed in a neat dark blue suit.
His understated manner belies
ambitions that are far and wide.
Coming back home was a hap-
py twist of fate, he says. He had
met Detroit Mayor Dennis
Archer in 1994 through his sis-
ter-in-law, a law school class-
mate of Mr. Archer's son, and
told him he'd been working with
Fannie Mae in Washington as
director of policy communica-
tions.
Mayor Archer lit up, telling him
half-kiddingly to open an office in
the city, Mr. Dworkin recalls.
"Initially, our feeling was that
Detroit wasn't ready for a full-
time Fannie Mae presence.
We're most effective when all the
players are willing to roll up
their sleeves and work together.
We don't originate the mortgages
or build the homes; those things
need to be happening for us to
come in," he says.
•
But with Detroit's federal des-
ignation as an empowerment
zone and commitments large
and small from developers and
corporations willing to invest big
money in the city, Fannie Mae
decided the time was right. Mr.
Dworkin volunteered to head the
new office.
"It's an exciting time to Je
here. My daughter and my
daughter-to-be can be sur-
rounded by aunts and uncles and
cousins again. It's a great time
to move back to the area," he
says.
Mr. Dworkin, his expectant
wife Hilary Lipin Dworkin, and
3-year-old Emily Anne are living
with his mother, Una Dworkin,
until they find a place'of their
own. •
In the meantime, he's doing
an exhaustive inventory of De-
troit's new and old housing stock
and talking to a lot of people, in-
cluding city housing officials,
lenders and community groups.
He'll spend the next four months
working up an investment strat-
egy aimed at making affordable
housing a reality for Detroiters.
Fannie Mae already own
$400 million of loans outstand-
ing in Detroit, representing
24,000 families.
What Mr. Dworkin sees is a
city on its way up. He believes
most people don't realize how
busy the housing market is in
Detroit and how cheap it is to in-
vest. He points to developers likip
Bernard Glieberman of Cross-
winds Communities in Novi as
an example of the faith that is
energizing Detroit. Mr. Glieber-
man is spearheading the Victo-
ria Park, Virginia Park and
Brush Park single-housing de-
velopments.
"There's a laundry list of real
projects taking place throughout
the city. You still see a terrible
vacant housing problem and a
lot of commercial developmen
that have closed down, but now
you see pockets of incredible eco-
nomic activity you never saw be-
fore: the Victoria Park area, New
Center, the homes on Rosa
Parks (formerly 12th Street).
"People don't realize that
things have changed. The real-
ity is, there's a brand new strip
mall and 45 single family homes
selling for $150,000, and you'd
never know the riots started
there (on 12th and Philadelphia
streets). You see the beginning
of a grass roots resurgence in the
city. It's not one project that will
be a panacea; it's little projects,
medium size projects. The de-
velopment going on on Wood-
ward Avenue, whether it's Brush
Park or Orchestra Place, are go-
ing on whether or not the stadi!
urns are built," he says.