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NORWEST TO SELL $4 BILLION IN MORTGAGES TO FREDDIE MAC

 NORWEST TO SELL $4 BILLION IN MORTGAGES TO FREDDIE MAC
 MINNEAPOLIS, July 16 /PRNewswire/ -- Forecasting a robust year for


homebuyers, Norwest Mortgage, Inc. has agreed to sell $4 billion in mortgages over the next year to the Federal Home Loan Mortgage Corporation (NYSE: FRE)(Freddie Mac).
 The agreement is the largest commitment Freddie Mac has ever made with assurance that the participating mortgage company will deliver the full amount of mortgages in a single year.
 Freddie Mac purchases mortgages from lenders to increase the availability of mortgage money in support of home ownership and rental housing.
 The $4 billion commitment represents conventional, fixed- and adjustable-rate mortgages and balloon/reset mortgages on approximately 45,000 homes. Norwest will swap the majority of mortgages for Freddie Mac securities, which Norwest, in turn, sells to brokerage companies.
 Last year Norwest originated more than $13 billion in residential mortgages, a 50 percent increase over 1990 originations. This year the Des Moines, Iowa-based mortgage banker expects to originate more than $15 billion in home loans.
 "Interest rates are low and house prices are stable, making it one of the best times to buy a home," said Mark Faris, Norwest Mortgage's senior vice president for secondary marketing. "First-time buyers especially stand to benefit. We see tremendous growth in mortgage originations this year."
 "I am very pleased to do business of this quality and size with a great company like Norwest," said Stephen Hopkins, Freddie Mac's vice president of marketing and sales for the North Central region. "In all aspects of Norwest's business, they are looking to be the best, and that commitment provides a sound foundation for Norwest's growing relationship with Freddie Mac."
 Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to create a continuous flow of funds to mortgage lenders.
 By providing lenders with the funds needed to continue making mortgages and packaging the mortgages into securities that are sold to investors, Freddie Mac sustains a strong and stable mortgage credit system and lowers the cost of housing finance for borrowers. Over the years, Freddie Mac has helped finance one in eight American homes.
 Norwest Mortgage operates both a retail network of 400 mortgage lending offices in 47 states and one of the nation's largest wholesale mortgage lending businesses. In addition, the company manages a mortgage loan servicing portfolio in excess of $12 billion.
 Norwest Mortgage is part of Norwest Corporation (NYSE: NOB), a $40.6 billion company providing banking, insurance, investments and other financial services through 1,725 offices in 49 states and internationally.
 -0- 7/16/92
 /CONTACT: Patrice Vick of Norwest Corporation, 612-667-0148/
 (NOB) CO: Norwest Corporation, Norwest Mortgage ST: Minnesota; Iowa IN: FIN SU:


AL -- MN009 -- 9847 07/16/92 14:30 EDT
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Publication:PR Newswire
Date:Jul 16, 1992
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