So we’re a little late on this story. Four years late. But who knew Freddie Mac has had a deal to buy/sell Islamic sharia compliant products with Devon Bank, the Chicago bank featured in the news lately, since 2005? Or that Freddie Mac has been buying Islamic homeowner products since 2001?
Update: We’re not late on this story: Freddie to Tap $30.8 Billion in Aid as Losses Deepen – How much of that $30B will go towards the purchase of sharia compliant products?
For Immediate Release
January 10, 2005
Contact: firstname.lastname@example.org or (703) 903-3933
Chicago, IL – 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.”
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.
Read it all at Freddie Mac’s site here.
And everyone was worried about the bailout of AIG and its sharia products.