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COMMUNITY BANKS NOW OFFERING MORE MORTGAGE ALTERNATIVES

 COMMUNITY BANKS NOW OFFERING MORE MORTGAGE ALTERNATIVES
 ARLINGTON, Va., March 3 /PRNewswire/ -- Homebuyers and homeowners shopping for a mortgage loan or looking to refinance in many rural and suburban communities are finding they can now choose from the same mortgage options as urban buyers, thanks to a new program available to their local independent bankers.
 The nation's community banks, members of the Independent Bankers Association of America (IBAA), a trade group representing the interests of locally owned community banks, can now provide the long-term, fixed rate mortgages so much in demand today.
 "The community banks can do so through the services of IBAA Mortgage Corporation and its services provider, PHH US Mortgage, one of the country's top 20 mortgage originators," said Michael Hindman president of IBAA Mortgage. "And these banks serve what can truly be called 'Main Street America' -- over 70 percent of them are located in towns with populations of 20,000 or less," Hindman added.
 Larger banks have become more active in 30- and 15-year mortgage lending in recent years because they have had easier access to the national secondary mortgage markets. These firms, including the two giant government-sponsored enterprises, Fannie Mae and Freddie Mac, purchase over 60 percent of all residential loans made every year. Smaller banks, because of their size and mortgage potential, have not been able to use these markets as easily.
 The new IBAA program provides community banks with that secondary market access, and the better mortgage rates and options that come with it.
 "Rural and suburban borrowers are the ultimate beneficiaries, with the ability to select from fixed, balloon, adjustable and VA mortgages at attractive interest rates," noted Hindman. "Many of these mortgages require downpayments of as little as 5 percent or 10 percent, a feature that can help first-time homebuyers. The minimum loan amount is $25,000, a real benefit in many rural areas with lower home values," he said.
 The program was launched in April 1991 with the signing of the first bank. More than 250 banks from 42 states are now participating in the mortgage program. So far, participating banks have originated more than $225 million in mortgage loans.
 -0- 3/3/92
 /NOTE: Information on participating community banks can be obtained from IBAA Mortgage Corporation by calling, 800-253-5356./
 /CONTACT: Michael Hindman of the Independent Bankers Association of America, 703-841-5102/ CO: Independent Bankers Association of America ST: IN: FIN SU:


SM -- NYHFNS6 -- 4267 03/03/92 07:16 EST
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Publication:PR Newswire
Date:Mar 3, 1992
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