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HARRIS BANK FIRST TO SELL LOW-INCOME RENTAL HOUSING MORTGAGE PORTFOLIO IN THE SECONDARY MARKET; NEW EFFORT TO EXPAND AFFORDABLE HOUSING

HARRIS BANK FIRST TO SELL LOW-INCOME RENTAL HOUSING MORTGAGE PORTFOLIO
 IN THE SECONDARY MARKET; NEW EFFORT TO EXPAND AFFORDABLE HOUSING
 CHICAGO, April 29 /PRNewswire/ -- In the first such transaction of its kind nationwide, Harris Bank has sold a $5 million low-income housing mortgage portfolio as part of a new program aimed at providing a viable secondary mortgage market for low-income housing loans. Until now there was no such market.
 The new program, designed to increase the availability of low income rental housing, is being announced at a news conference this morning by the program's sponsors, the Local Initiatives Managed Assets Corp. ("LIMAC") and the Federal Home Loan Mortgage Corp. (Freddie Mac).
 "We are proud that the Harris has taken the lead in this program and encourage other banks to get involved," said Harris Bank Chairman B. Kenneth West. "By selling mortgages in the secondary market, banks will have more money available for low-income housing loans and reduce their long-term interest rate exposure. The Harris is always looking for innovative ways to provide financing and support for affordable housing."
 The way the transaction worked was Harris sold the mortgage portfolio to LIMAC, which exchanged the portfolio for Freddie Mac securities. Evanston, Ill. United Methodist Church pension fund purchased the securities.
 "All of the organizations involved in this transaction have invested a lot of time and effort to ensure this pilot project is a success," said Edward Williams, Harris' Community Reinvestment Act officer.
 The Harris mortgages helped finance eight rental properties in the South Shore, South Side, Near West Side and Austin communities in Chicago providing a total of 219 housing units for low-income families.
 Harris will continue to service these mortgages.
 Since 1984, Harris bank, through its Metropolitan Banking Division, has originated more than $52 million of multifamily rehab mortgages affecting 2,700 low-income housing units within Chicago.
 With assets totaling $14.5 billion, the Harris is Chicago's third and the nation's 39th largest bank.
 -0- 4/29/92
 /CONTACT: Pam Kassner of Harris Trust & Savings, 312-461-6625/ CO: Harris Bank ST: Illinois IN: FIN SU:


TQ -- NY041 -- 4316 04/29/92 11:22 EDT
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Publication:PR Newswire
Date:Apr 29, 1992
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