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http://tyo.ca/islambank.community/modules.php?op=modload&name=News&file=article&sid=2907

For

Immediate Release

January 10, 2005

CONTACT: corprel@freddiemac.com
or (703) 903-3933

DEVON BANK, FREDDIE MAC ANNOUNCE EXPANDED FINANCING OPPORTUNITIES FOR MUSLIM HOMEBUYERS

CHICAGOLAND, ILLINOIS – Devon Bank today announced it would begin selling its Islamic home financing products to Freddie Mac, effectively expanding opportunities for Muslims living in Illinois and nine other states to become homeowners while observing traditional Islamic restrictions on paying interest on mortgages and other types of debt. Based in McLean, Va., Freddie Mac is one of the nation’s largest investors in mortgages and Islamic home financing products.

Devon Bank’s Islamic housing finance model uses carefully tailored real estate financing documents, in accordance with state and local law, and functions similarly to a conventional Freddie Mac mortgage. They employ the Islamic “murabaha” trade model to avoid religiously objectionable concepts present in traditional loans.

“For the past two years Devon Bank’s Islamic financing programs have enabled observant Muslims throughout the Chicago area and some other states to acquire homes and businesses in a manner consistent with their faith,” said Devon Bank Chairman Richard Loundy. “Freddie Mac’s agreement to purchase many of our Islamic home financing contracts will enable Devon Bank to assist more observant Muslims everywhere we do business.”

Devon Bank’s suite of Islamic financing products comply with both Islamic and U.S. law and include residential and commercial real estate financing, financing for business equipment and trade goods, stand-by letters of credit and some construction financing. (Specific information is available at www.DevonBank.com/Islamic)

“Today’s agreement with Devon Bank further demonstrates Freddie Mac’s commitment to help America’s newest communities realize the traditional benefits of the American dream of homeownership,” said Dave Stevens, senior vice president of Single Family Sourcing at Freddie Mac. “By working together with Devon Bank, Freddie Mac is fulfilling its mission to make home ownership possible in new and exciting ways.”

Freddie Mac’s agreement to invest in the mortgages underscores its mission 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 contract to purchase Islamic homeownership products.