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GLENDALE FEDERAL BANK ANNOUNCES MORTGAGE PAYMENT INSURANCE AGAINST JOB LOSS WITH NEW MORTGAGE LOANS

 GLENDALE FEDERAL BANK ANNOUNCES MORTGAGE PAYMENT INSURANCE
 AGAINST JOB LOSS WITH NEW MORTGAGE LOANS
 GLENDALE, Calif., Aug. 19 /PRNewswire/ -- Glendale Federal Bank said it will introduce a mortgage payment insurance program available with new home loans that will cover mortgage payments for borrowers who become involuntarily unemployed through job loss or layoff. This program is offered through GLENFED Insurance Services and is underwritten by American Security Insurance Co. of Atlanta, rated A+ (Superior) by A.M. Best Co.
 "This program provides an added measure of safety to potential homebuyers who may be delaying their home purchase because of uneasiness about the economy or job security," said Paul Mullings, executive vice president at Glendale Federal Bank. "The Mortgage Payment Security program also offers protection to people who want to refinance their mortgage and take advantage of today's lower interest rates," he added.
 Mortgage Payment Security covers mortgage principal and interest payments as well as escrowed property taxes and home insurance for borrowers who become unemployed through job elimination or layoff. The program provides coverage of up to $3,500 per month for up to 6 or 12 months, and the customer will be eligible to receive benefits as soon as 31 days after job loss or 61 days after a temporary layoff.
 Many consumers have put off buying a home because of worries about job loss, according to recent research by the Federal National Mortgage Association. In the survey, consumers acknowledge several good reasons to buy now -- such a reduced prices and attractive interest rates -- but cite an "unstable economy" and possible job loss as arguments for delaying purchase.
 "In a prolonged recession, it's reasonable to be concerned about job security and the ability to keep up mortgage payments," said Mullings. "The impact of unemployment is a major factor in mortgage delinquencies," he continued. "But with Mortgage Payment Security, home-loan borrowers can have added confidence about their decision.
 "We're committed to helping our customers build and maintain assets through this economically challenging period," Mullings said, adding, "The extra safety provided by Mortgage Payment Security adds value to our home-loan product line, even in a more 'normal' economic climate."
 The program could help the economy too, said Mullings. "If you subtract the fear factor from the home purchasing decision, the resulting feeling of security -- personal, family, and economic -- could substantially increase the number of potential buyers."
 Mortgage Payment Security becomes available on Monday, Aug. 24 in California and in the near future in Florida. It is available with Glendale Federal Bank's new mortgage loans for home purchase and refinancing on primary residences.
 Mortgage Payment Security is available to homebuyers under the age of 60 who have been employed for 30 or more hours a week for at least 12 months with no more than two employers, and are neither self-employed, an independent contractor, seasonally employed nor are under notice of impending layoff or job elimination. The cost of the unemployment mortgage insurance is 2.75 percent or 3.75 percent of the monthly mortgage payment for 6 month and 12 month coverage, respectively.
 Mortgage Payment Security also is available to two-income families. Each wage-earner is covered separately for one-half of the total monthly mortgage payment should he or she become unemployed.
 Glendale Federal Bank is a subsidiary of GLENFED Inc., which is the nation's fourth-largest saving bank with 214 banking offices in three states.
 -0- 8/19/92
 /CONTACT: Maury Healy of Healy Williams & Co., 415-546-6166, for Glendale Federal Bank; or Judy Cunningham of Glendale Federal Bank, 818-500-2274/ CO: Glendale Federal Bank ST: California IN: FIN SU:


KF-RM -- SF002 -- 1220 08/19/92 09:01 EDT
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Publication:PR Newswire
Date:Aug 19, 1992
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