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Home Savings of America adds new mortgage loans to product line.

IRWINDALE, Calif.--(BUSINESS WIRE)--June 24, 1996--As part of its ongoing effort to make homeownership an affordable opportunity for more homebuyers, Home Savings of America Monday announced that it has added two new mortgage loans to its product line.

The new adjustable rate mortgages, 12-MAT and LAMA, are targeted at both the first-time homebuyer and those in the move-up market.

``Home Savings is committed to being the lender of choice,'' said Will Barrett, executive vice president of consumer lending at Home Savings of America. ``The addition of these loans to our product line gives us the ability to provide a complete selection of mortgage products to meet the needs of all potential homebuyers.''

The 12-MAT loan is tied to the 12-Month Average Treasury Index that is based on the average of the 12 most recently published monthly yields of the one-year U.S. Treasury Bills. Known for its stability, 12-MAT is a slower-moving index that is more predictable than other ARM indices. And because this index is a moving average, it protects borrowers from sudden shifts in interest rates.

Home Savings' 12-MAT loan is available with as little as 5 percent down, with the entire down payment allowable in the form of a gift from a direct family member. Additional features include a low margin and lifetime cap, no points or lender-fee options and no PMI (private mortgage insurance), and it is assumable.

Home Savings' new LAMA loan is based on the 12-month average of the one-month London InterBank Offer Rate (LIBOR) and shares the same features as the 12-MAT loan. Both loan programs are available on first mortgages and on refinances with 15- and 30-year terms.

Traditionally a Cost of Funds Index (COFI) lender, Home Savings began diversifying its product line more than a year ago with the introduction of several new loan products and pricing options.

Last year, Home Savings began offering adjustable-rate mortgages tied to the Treasury Bill index and began an aggressive pricing strategy to compete even more effectively in the fixed-rate-mortgage arena. In addition, to supplement its vast array of first-time homebuyer loan programs, Home Savings recently added FHA and VA loans to its product line.

Home Savings of America, with assets of nearly $50 billion and deposits of more than $33 billion, is one of the nation's largest full-service consumer banks. Ranked as one of the country's top mortgage originators, Home Savings serves more than 1.7 million customers from 347 financial-service centers in four states and 115 mortgage-lending offices operating in nine states.

Home Savings of America is the principal subsidiary of California-based H.F. Ahmanson & Co. (NYSE:AHM).

CONTACT: Home Savings of America, Irwindale

Samantha Davies, 818/814-7924
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Publication:Business Wire
Date:Jun 24, 1996
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