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STUDY REFUTES ACCUSATIONS OF INCREASED MORTGAGE DELINQUENCY ARISING FROM DOWN PAYMENT GIFTS
-- Actual Rates Lower than FHA Average --


WASHINGTON, D.C. (April 23, 2002) - Contrary to critics' claims, residential down payment gifts do not increase the rate of mortgage loan delinquencies according to a recent analysis of one of the largest and most active down payment gift programs, which is operated by The AmeriDream Charity, Inc. The analysis performed by Experian, Inc., a leading national credit-reporting firm, found overall default rates are well below the national average for traditional Federal Housing Administration (FHA) loans. Vocal critics of down payment gifts argue that such gift programs significantly increase mortgage defaults, a position that is not supported by the data.

The Experian study found overall delinquencies within AmeriDream's portfolio for the second quarter of 2001 were 5.48 percent compared to 10.40 percent for the total FHA loan portfolio. Following the terrorist acts of Sept. 11, fourth quarter 2001 delinquencies for AmeriDream were 8.81 percent, while FHA's were 12.10 percent. AmeriDream commissioned the credit study in part to answer criticisms about the rate of delinquency for FHA loans made in conjunction with the AmeriDream Downpayment Gift Program and comparable programs around the country.

"With this study, we now have concrete statistical data to refute critics who charge that gift funds lead to higher rates of mortgage default," said Christopher Russell, Chief Executive Officer of AmeriDream. "The reality is that down payment gift programs, like AmeriDream, meet a critical need among low- and moderate-income families, helping them overcome the single largest barrier to homeownership - the down payment. More importantly, programs like ours now prove to do this with no increased risk of mortgage default."

The Experian report charts the percentage of loans with past due payments for 30-, 60-, and 90-day time frames. In all categories, the report reveals that mortgage loans made in conjunction with down payment gift assistance from AmeriDream had lower delinquency rates than similar FHA loans.

Because The AmeriDream Charity, Inc. is currently the nation's largest non-profit down payment gift provider, analysis of its portfolio serves as a model for the industry. AmeriDream provides gift funds for down payments helping to make the dream of homeownership a reality for an average of 4,000 families each month. Since its establishment in February 1999, AmeriDream has helped more than 60,000 people buy homes, many for the first time.

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The mission of The AmeriDream Charity, Inc., headquartered in Gaithersburg, MD, is to expand homeownership opportunities for underserved groups through the direct provision of down payment assistance and through the restoration and redevelopment of communities. A 501(c)(3) organization, The AmeriDream Charity, Inc. meets HUD requirements for FHA insured loans as a charitable organization. In addition to The AmeriDream Downpayment Gift Program, the Charity also operates The AmeriDream Redevelopment Program in the Washington, DC and Baltimore, MD areas. Through the Redevelopment Program, AmeriDream has spent more than $2.4 million to rehabilitate properties and return them to the market at affordable prices. The AmeriDream Charity, Inc. has also donated more than $750,000 to a range of community organizations including Habitat for Humanity and the American Red Cross Disaster Relief Fund.