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VA DEBUT OFFERING OF NEW AGENCY SECURITY 'VINNIE MAC' WELL RECEIVED

VA DEBUT OFFERING OF NEW AGENCY SECURITY 'VINNIE MAC' WELL RECEIVED
 WASHINGTON, June 22 /PRNewswire/ -- The Department of Veterans Affairs (VA) has announced the first public offering of Guaranteed REMIC Pass-Through Certificates. The debut offering of its "Vinnie Mac" certificates June 15 represents the first REMIC, multi-class mortgage securities ever issued with a full faith credit government guaranty of timely payment of principal and interest.
 The First Boston Corp. led a syndicate of underwriters for this $390 million issue, which was priced June 17. First Boston's analysis of comparable transactions indicated that the pricing achieved surpassed that of comparable REMIC securities guaranteed by "Fannie Mae" and "Freddie Mac," and the prices that could have been obtained through a comparable "Ginnie Mae" pass-through issuance. Settlement of the sale is scheduled to occur June 25.
 VA anticipates issuing approximately $1 billion of "Vinnie Mac" certificates annually. The improved pricing obtainable through this program will generate significant additional revenues and reduce the cost to the government of providing an attractive mortgage financing product through VA for eligible veterans and active duty military personnel.
 VA has been directly securitizing "Vendee" loans from its portfolio since June 1988 through American Housing Trust issuances. The last six such transactions under that program contain a VA guaranty on the pooled mortgage loans. However, the certificates issued by those trusts do not contain a timely payment guaranty. Accordingly, those certificates are not 0-percent risk weighted by bank regulatory agencies as are the new "Vinnie Mac" certificates.
 VA has authority to guaranty full and timely payment of principal and interest on "Vinnie Mac" certificates collateralized by VA- originated "Vendee" loans under legislation enacted May 20, 1992. Vendee loans are made by VA to facilitate the sale of properties VA has acquired as a result of its obligations on loans made by private lenders to veterans under the VA Loan Guaranty Program. Since 1944, VA has guaranteed a total of 13.3 million home loans to veterans representing $375.5 billion. As of May 31, 1992, 3.7 million VA- guaranteed loans were outstanding, representing $183 billion.
 -0- 6/22/92
 /CONTACT: Keith Pedigo, director, Loan Guaranty Service, 202-233-2332, for the Department of Veterans Affairs/ CO: Department of Veterans Affairs ST: District of Columbia IN: SU:


DC -- DC026 -- 2499 06/22/92 15:20 EDT
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Publication:PR Newswire
Date:Jun 22, 1992
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