OCR Text |
Show Page 10b Enterprise Review , April 7, 1976 OMR (OUTSIDE) Residential Sales Report FNMA Yields Decline Financial Summary J Patrick . Vaculin (FNMA) announced plans recently to modify its 12-mon- government-backe- d and conventionally said the today lion in commitments government-backe- d mil- on percent FHAVA mortgages. (The average in the previous auction was 9.060.) The range of accepted bids yesterday was 8.994 (98.30) to 9.111 (97.50). FNMA received 209 FHAVA bids totaling $146.3 million and accepted 192 bids, including 133 8-3- 4 mort In the convntional yesterday, FNMA $33.7 million in April 5, 1976. MORTGAGE RATES FHA 8.75 Vi issues FNMA optional delivery standby commitments for periods at set yield requirements. The commitment holders-mortga- ge companies, savings and loan associations, and commercial banks-c- an deliver mortgages under the commitments or convert the yield requirement of the commitment into a current market yield. The market yield is defined as the average yield of the most current biweekly FNMA Free Market System auction of commitments. Conversions are normally effected when the market yield as reflected by FMS auction is lower than the yield .requirement in effect when 12-mon- th 12-mon- 12-mon- th th commitment was issued. The convertible standby commitment procedure will be modified as follows: 1. The new fee structure for standby commitments will be as follows: l100th of 1 percent offer fee, 12 of 1 percent of the commitment amount upon issuance of the commitment and 12 of 1 percent if VA 8.75 "mortgages are delivered under the standby commit ment or if the standby commitment is converted to current market yield. The only change relates to the conversion aspect FNMA currently charges 1 percent if a standby commitment is converted. 2. The current limitation of $1 million in commitments per week per seller of mortgages will be eliminated. 3. Existing construction will be permitted in the standby program. Under the current program, sellers are required to convert a standby commitment before they can deliver mortgages on existing construction. 4. The requirement that sellers of mortgages designate how many housing units are covered by a standby commitment will be eliminated. 5. Holders of commitments will be allowed to deliver mortgages totaling no more than 110 percent of the commitment amount. This is a change in the method of allowing a mortgage seller to utilize a residual balance of a commitment. (Additional commitment fee would be charged on the amount of increase.) four-mont- auction issued h commitments at an average yield of 9.132, down from 9.148 on March 8. The range of accepted bids was from 9.072 to 9.260. FNMA received 120 conventional bids totaling $46.2 million and accepted 107 bids, including 62noncompetitive. The next auction will be l. Currently, the purchase both corporation issued $121.6 ible standby commitment program for both FHAVA and conventionally financed home mortgages. The effective date of the changes will be announced when the technical modifications in FNMA programs, including computer reprogramming, are completed. Target date is sometime in mid-Apri- commitments to h FNMA, convert- th four-mont- financed home mortgages. Oakley Hunter, Chairman of the Board and President of Federal National Mortgage Association Yields declined as the Fed- gages at an average yield of eral National Mortgage Assoc- 9.032 percent, which converts iation issued $155.3 million in to an average price of 98.04 for These rates were obtained by telephone conversation with the above institutions. 'The rates are correct to the best of our knowledge but their accuracy cannot be guaranteed. |