Bear Stearns Prices Fourth Agency-Guaranteed CRA Residential MBS Transaction.NEW YORK--(BUSINESS WIRE)--August 17, 1998-- $1.89 Billion in CRA See Community Reinvestment Act. Loan Securitizations Priced to Date Bear, Stearns & Co. Inc. announced today that it has priced its fourth agency-guaranteed, 100% Community Reinvestment Act Community Reinvestment Act (CRA) Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. residential mortgage loan securitization. The transaction, scheduled to close on August 31, 1998, will be issued as Fannie Mae 1998-W5 and is backed by $396 million in collateral. The collateral consists of CRA loans originated or acquired by Citicorp, Citizens Bank of Rhode Island or Citizens Bank of Massachusetts The Bank of Massachusetts, founded in 1784 in Boston, Massachusetts, was the second-oldest bank in the United States. It is a predecessor to the modern Bank of America (merged 2005), through Bank of Boston (1903), BankBoston (1996) and FleetBoston Financial (1999). . The Fannie Mae 1998-W5 transaction was oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. at pricing. The transaction consists of $354 million of bonds which will carry a Fannie Mae guarantee as to timely interest and principal. "Fannie Mae is very pleased to work with Bear, Stearns & Co. Inc. and Citicorp to increase affordable lending and community reinvestment communities across the nation," said Barry Zigas, Executive Director and Senior Vice President of Fannie Mae's National Housing Impact Division. With the pricing of this transaction, Bear Stearns has managed more than $1.89 billion of CRA loan securitizations over the past ten months. The securitizations include FHLMC See Federal Home Loan Mortgage Corporation. T-008 ($411 million of collateral) using loans originated or acquired by First Union and FHLMC T-011 ($335 million of collateral) using loans originated by Mellon Bank. Bear Stearns also managed the largest CRA loan securitization to date, Fannie Mae 1998-W2 ($749 million of collateral) using loans originated or acquired by Fleet Bank. Bear Stearns is seeking to develop interest and support for loans issued to low- and moderate-income home buyers and is actively pursuing CRA loan portfolios for future securitization, including portfolios as small as $25 million. To discuss innovative solutions that will result in the highest price for CRA loan portfolios, call the Bear Stearns CRA information line at (212) 499-9807. Bear, Stearns & Co. Inc., a leading worldwide investment banking and securities trading and brokerage firm, is the major subsidiary of The Bear Stearns Companies Inc. (NYSE NYSE See: New York Stock Exchange : BSC (Binary Synchronous Communications) See bisync. ). With approximately $17.9 billion in total capital, Bear Stearns serves governments, corporations, institutions, and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, private client services, derivatives, asset management, correspondent clearing, securities lending, and custody services. Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , the company has approximately 9,200 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, and San Francisco; and an international presence in Beijing, Buenos Aires, Dublin, Geneva Geneva, canton and city, Switzerland Geneva (jənē`və), Fr. Genève, canton (1990 pop. 373,019), 109 sq mi (282 sq km), SW Switzerland, surrounding the southwest tip of the Lake of Geneva. , Hong Kong, London, Lugano, Paris, Sao Paulo, Shanghai, Singapore, and Tokyo.
CONTACT: Bear, Stearns & Co. Inc.
Christine Illes (212) 272-4395
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