Location Efficient Mortgages (LEM) are now an

Location Efficient Mortgages (LEM) are now an option for prospective home buyers in Chicago, Seattle, San Francisco, and Los Angeles. LEMs are primarily targeted at low- to middle-income households in dense, urban areas where public transit is readily available. Transportation savings from reduced automobile dependency are translated into greater buying power in the housing market. The launch was made possible by a two-year, $100 million underwriting by Fannie Mae, and the LEM concept is based on years of research into urban travel patterns by the Surface Transportation Policy Project (STTP), the National Resources Defense Council (NRDC), and the Center for Neighborhood Technology (CNT). The first closings have taken place in Seattle and in Chicago, where three mortgage lenders offer LEMs. James K. Hoeveler of CNT says the concept has garnered interest from officials in a dozen other cities. A feasibility study is underway in Portland, Oregon.