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Show Enterprise Review, February 4, 1976 Page Nine ? w Financial Summary Patrick J. Vacalin A $3 billion program was implemented by the Govern- Maximum yields this week each $10,000 or fraction there- have more or less stayed on an of of this mortgage amount. AsNational ment even keel. GNMA maximum Mortgage Previously, sellers and sociation (GMNA) pursuant to yields were 84 while servicers wre percent to the Emergency Housing Act of FNMA maximums were at 9 chase stock required to Vpur-of equivalent 1975. percent. As usual, these could 1 percent of the mortgage Funds will be available at a change at any time without below market interest rate of 7 notice. Va percent. They wilL be used The Federal National Morton multifamily projects insured by FHA. The monies gage Association announced should be sufficient to finance that it has changed the stock subscription and stock reten120,000 units. tion requirements for compan- It was hoped that these funds would be used on single ies that sell to and service single-famil- y mortgages for family dwellings. Several local homebuilders and developers the corporation. The new effective for expressed disappointment at requirement, commitments issued after Jan the way the funds were uary 26, 1976, is one share for i ) ) I ? i fi. f $ i t lii WMJfe Certificate amount. to FNMA, the will it easier for make change the firms customers to keep track of the stock they are required to purchase and hold. The current issue price of stock sold to sellers and servicers is set at $17 per share. The change has the net effect of lowering the requir-mefrom .25 of one percent to .17 of one percent of the According nt mortgage amount. It was noted that the issue price of the stock is adjusted from time to time according to changes in market value of stock traded on the major exchanges. As in the past, payment of the stock subscription will be deducted from the proceeds paid the seller when mort gages are purchased. Competition between mortgage lenders in the Salt Lake area is probably more intense than it has ever been. Discount points are ranging from 1.25 to 3.50. It seems some lenders have excellent investors or are willing to take a loss in originations and make up the difference in servicing vqlume. You will see what 1 mean when you look at the listing of morgage rates in this section. It would seem that some companies will "cut their rates no matter what. The thing people are going to have to judge, however, is whether these cut rate mortgage companies provide the service that should be expected. Investment Summary Chuck Akerlow il The longer you leave your money in a Versatile Bonus Benefit Certificate, the higher the interest rate retroactively ... all protected up to 10,000. ' Bonus Benefits begin after the first year with interest com- pounded monthly from the date of original investment as follows: There is much ballyhoo from various state officials about Utahs growth-re- al, projected and imagined. The fact is that the recent pop- ulation growth figures released by the University of Economic and Business Research showed an average growth which surprised no one. The Uintah Basin and Carbon County are growing as well as Utahs Sun City in St. George, but the rest of the state is not in the throes of a major boom : as some would have us believe. Bureau j In my judgement we are amply built along the Wasatch Fron to accomodate our natural business expansion as well as projected influx. Recently I i ''i i f i : t i. i 5 , PROTECTED CERTIFICATES ISSUED IN AMOUNTS FROM $1,000 to $10,000. YOU GET MAXIMUM EARNINGS AND PROTECTION WITH CAPITOLS VERSATILE BONUS BENEFIT PLAN ? Accounts protected up to a maximum of ten thousand dollars by the Industrial Loan Guaranty Corporation of Utah, a private corporation which is not an instrumentality of the State of Utah or of the federal government. Assumes all interest is held for compounding. ? jf TlCOraOCt? Cb$SG3 oQaniwaiatiHft IHEE'GETOI QSB0Q r 1 QilILIUiliJil conducted a survey of downtown office space and found a 16 percent vacancy factor. The vacancy rate in office space surrounding the downtown area is no less. Industrial land is plentiful and the average sale in 1975 was a disappointing $16,000 per acre. The sale Lake International Center developed by Adnan Khashoggi west of the airport is in a deals mood just to attract new industries or speculators in order to make the project move. The fact that Utah does not now' appear to be the sizzler the promotion boys claim is resultant from many things: the Kaipar- - owitz project; delays in Envir- onmental Impace Statements on Alunite and other power projects; the national economy; tight money and the tendency by national investment bankers to overlook the potential of the market. But these same factors when viewed from another perspective may point to the fact that Utah is on the thresh-hol- d of rapid growth begins existing industrial lands will accomodate it as well as present office space inventory. The need for new land for commercial development will soon result and the wise investor is buying or otherwise controlling key land. It is apparent to this writer that the next ten years in Utah will show, healthy and steady growth. I believe the growth will not be as rapid or spectacular as predicted by some, but I believe it will outdistance the national growth for the same period. |