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NEW SOURCE OF FUNDING MAKES HOME IMPROVEMENTS MORE AFFORDABLE FOR HUNDREDS OF LOS ANGELES COUNTY LOWER-INCOME HOMEOWNERS

 NEW SOURCE OF FUNDING MAKES HOME IMPROVEMENTS MORE AFFORDABLE
 FOR HUNDREDS OF LOS ANGELES COUNTY LOWER-INCOME HOMEOWNERS
 WASHINGTON, Jan. 15 /PRNewswire/ -- Hundreds of low- and moderate-income homeowners looking for a way to improve and rehabilitate their homes in Los Angeles County will find help with below-market rate mortgages made available through a new partnership announced today by the Federal National Mortgage Association (Fannie Mae) (NYSE: FNM), the Los Angeles County Community Development Commission and Security Pacific Bank.
 Fannie Mae has agreed to provide credit enhancement for a $17.3 million mortgage revenue bond issue of the County of Los Angeles. Security Pacific Bank will originate the loans which will be swapped for Fannie Mae Mortgage-Backed Securities (MBS).
 The bonds will provide three below-market mortgage rates depending on the income of the borrower. The majority of the qualified eligible borrowers will have access to 15-year, fixed-rate, Fannie Mae first or second mortgage home improvement loans at 7.90 percent.
 Borrowers with incomes below 80 percent of the local median income levels will have a mortgage rate of either 6 or 3 percent, depending on the home buyer's income as determined by the appropriate locality.
 "Fannie Mae's credit enhancement of this mortgage revenue bond issue will help many lower-income Los Angeles area homeowners afford to make badly needed home repairs to improve the quality of their homes. I applaud Fannie Mae, the County of Los Angeles and Security Pacific Bank for undertaking this unique effort," said Rep. Esteban Torres (D-Calif.).
 The available funding includes home improvement and rehabilitation loans for low- and moderate-income homeowners. Qualified homeowners can borrow between $5,000-$97,500 for home improvement and rehabilitation loans.
 The single-family credit enhancement uses Fannie Mae MBS as collateral to reduce bond financing costs, which reduces costs to the agency and, subsequently, to borrowers.
 "This is the first time that Fannie Mae has used a credit enhancement with tax-exempt mortgage revenue bonds for the rehabilitation or improvement of a home. We are delighted to work in partnership with the County of Los Angeles to create a program that will benefit many Los Angeles County low- and middle-income homeowners," added John Fulford, senior vice president of Fannie Mae's Pasadena-based, 10-state western regional office.
 Mortgage loans will be offered on a first-come, first-served basis to low- and moderate-income households in Los Angeles County, including Bell Gardens, Inglewood, La Mirada, Long Beach, Los Angeles, Monrovia, Pasadena, South El Monte, and South Pasadena. A homeowner's eligibility for participation in the home finance program will depend upon home prices and family incomes; limits on both will vary by location.
 Interested homeowners should contact Mario Leonard at 213-260-2119, County of Los Angeles, to determine specific eligibility requirements and contacts at the local housing agencies in their area.
 Fannie Mae, the USA's Housing Partner, is a congressionally chartered, shareholder-owned company and the nation's largest investor in home mortgages.
 -0- 1/15/92
 /CONTACT: Janice Daue of Fannie Mae, 202-752-3421/
 (FNM) CO: Fannie Mae; Los Angeles County Community Development Commission;
 Security Pacific Bank ST: District of Columbia, California IN: FIN SU:


DC -- DC016 -- 0054 01/15/92 13:51 EST
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Jan 15, 1992
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