Fannie Mae, partnering with three major cities and a unique mutual fund, unveiled last week a new way to leverage major federal funding to produce CRA mortgage-backed securities.

The first deals, with Dallas, Denver and New Orleans, are expected to produce about $50 million in Community Reinvestment Act MBS by August, according to Ronald Homer, CEO of Access Capital Strategies, which acts as advisor to the mutual fund, Access Capital Strategies Community Investment Fund. Moreover, Homer said, the number of cities should at least double or triple by the end of the year.

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