To the Editor:
When the housing activist Gale Cincotta passed away this year, the affordable-housing community lost a great friend and a tireless leader.
Fannie Mae, along with the mortgage finance industry and community activists everywhere, mourn her death and reflect on the legacy she left. And on Nov. 1 her friends will gather in Chicago to celebrate her life, her achievements, and her passion for neighborhoods and action.
Throughout her remarkable career Gale Cincotta helped Fannie Mae and our lending partners see what we could do indeed, what we had to do. She debunked conventional wisdom about what was possible and what could be profitable. She reminded us that one person, fueled by the surety of her convictions and relentless in her determination to get others to share her beliefs, could make an enormous difference.
In the days following her death she was hailed as an American original who knew how to get things done. Others called her a powerful champion for consumers and emphasized that she inspired people to have courage to defend their neighborhoods. Its like losing a legend, another lamented. Most of all, another voice added, she just would not give up.
Those are wonderful words, but what makes them especially meaningful are that they come from a regulator, an elected official, a fellow advocate, a mortgage lender, and an editorial writer in her beloved Chicago. People from all of these perspectives came to admire Gale Cincotta for her passion, her tenacity, and her track record for getting things done.
Getting things done began with getting others to pay attention, often with colorful, confrontational tactics. But while she brashly tackled issues head-on, Gale Cincotta never lost sight of her real objective to go beyond confrontation to coalition building. Because, time after time, what began as protest resulted in effective partnerships for progress that benefited those she represented and those she sought to change.
That was how it was between Fannie Mae and Gale. She began, quite frankly, as a thorn in our sides. She knew where we lived and worked, and wasnt afraid to show up on our corporate doorstep unannounced, of course with busloads of boisterous friends who shared her belief that Fannie Mae wasnt doing enough.
And she was right. There was more we could do. So Gale was invited into the Fannie Mae family, and her vision of a national affordable homeownership product became a reality and a good business model. Twelve years later the Community Home Buyers Program has generated $57 billion of mortgages for more than 650,000 low- and moderate-income families.
A few years ago Gale issued another challenge to Fannie Mae purchase more CRA loans and create new models of community lending with lower down payments and for consumers with nontraditional credit histories. When the Mother of CRA talked, it made sense to listen. So, again, we took her advice.
When our focused CRA initiative with the National Training and Information Center and six of its community group affiliates began, the goal was to deliver $150 million of CRA-targeted single- and multifamily business. As of today we have done over $1.8 billion. Its been a success, in no small part, because of the strong and effective partnership with community groups from Gales NTIC.
Most recently, as a member of Fannie Maes Housing Impact Advisory Council, Gale began what would be her last crusade putting an end to predatory lending practices. As she told Chicagos Millennial Housing Commission in April, its critical that people are offered good loans. Gale believed, as we also know, that good money can drive out bad.
That is why Fannie Mae created a partnership with her NTIC organization affiliates and affirmed our commitment to do all we can to bring responsible lending to more neighborhoods and more borrowers particularly for those with blemished credit histories who may believe that low-cost funding is forever beyond their reach.
Next week Fannie Mae will host its second annual Fair Lending Conference, bringing together scores of housing advocates, housing officials, and community activists. We will dedicate this conference to Gale Cincottas memory and her lifes work. Our hope is that we can build upon her legacy, making our housing finance system more accessible for more American families.
By developing solutions in partnership, and by being creative, we can help the cause of affordable housing. That is, perhaps, the most lasting tribute we can offer to our friend Gale Cincotta.
Jamie Gorelick
Vice chairman
Fannie Mae
Washington
