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Show Enterprise Review , May 26, 1976 Page 10b Prudential Stock Worth $20 Million to New Holders holders and directors and mutual to a stock savings employees, association. Prudential Fed- Depositors as of July 13, eral Savings and Loan has 1972 were eligible to receive issued free stock worth about one share for each $100 on $20 million to its new holders, deposit. Dean Witter and Co. has set $8 a share as the price of the stock to be bought on a subscription basis. At the subscription price, FNMA has a total of $866.3 million in convertible the combined sum of the alloThe Board of Directors of standby commitments out- 2,552,200 shares now National Mortstanding, of which $375.8 cated to the 63,000 eligible the Federal million are eligible for conver- account holders, would be gage Association voted a sion. Hunter said conversions $20,417,600, according to quarterly dividend on FNMA are on the increase $130.1 Gene Donovan, president and common stock of 22 cents a share, the same rate as for the million have been converted in chairman of Prudential. May 10th ended the offer by proceeding quarter, the past two weeks as ram The dividend is payable pared to $35.2 million during subscription. The order of eligible buyers were savings June 25, 1976, to stockholders the preceding two-wee- k members, eligible account of record as of June 1, 1976. penod. In its conversion from a FNMA Yields Continue Rise 9.240 percent, up from 9.091 Yields in the Federal National Mortgage Association commitment auction were up this week. FNMA issued $390.3 million in four month commitments to purchase and both government-backe- d home conventionally financed mortgages. FNMA Chairman and President Oakley Hunter said the corporation issued $321.4 million in FHAVA mortgages at an average yield percent in the previous auction. Total offerings in the conventional auction were $128.8 million, the highest in any conventional auction since April 8, 1974 (sic), when $162.3 million in offers were received and $63.3 million in commitments were issued. The range .of accepted bids in the conventional auction was from 9.181 percent to FNMA 9.330 percent. received a total of 238 bids, and accepted 176, including 140 noncompetitive, The next auction will be Tuesday, June 1, 1976, the day following the Memorial Day weekend. FNMA also reported that since new provisions covering its convertible standby program went into effect on May 10, a total of $424 million in convertible standby of 9.134, which converts to an average price of 95.62 for percent mortgages. The average yield in the previous auction was 8.937. Total offerings in the FHAVA auction were $634.3 million, the highest in any auction since August 25, 2975, when offers totaled $643.1 million and $223.0 million in commitments were issued. The range of accepted bids yesterday was from 9.096 percent (95.87) to 9.266 per- cent (94.74). FNMA received 548 FHAVA bids and accep- ted 360, including 247 non- 8-1- 2 12-mon- th commitments have been issued. This compares with a total of $74.4 million in ranvertible standbys issued ween January 1st of this year and the date the new standby program went into effect, bet-competiti- In the conventional auc- tion, FNMA issued $68.9 mil- lion at an average yield of Financial Summary Patrick J. Vaculin believe these people will be able to afford a home because: 1) the median income of home purchasers is higher than the median income of total population and all people don't want to become homeowners; 2) people buy homes whether or not they have to borrow the downpayment from relatives, or go beyond a 41 ratio to make their payments; and 3) most young families now have combined income of two instead of one. While most people in the new homebuyers market have a dream home in mind, most compromise in order to effect debt-to-inco- The nation is on the verge of a single family housing boom. That should continue through the 1980s. war babies V now The reaching the prime age of 28 30 will soon begin to buy homes. It was this group that created the apartment building boom in the late 1960's and early 1970s because they were at the prime age for apartment dwelling. Now the needs of this age group have shifted and are' reaching for homebuying age. Contrary to most opinions. I -- their first home purchase. They will buy a house they like fairly well and can fairly well afford. I dont think the mortgage banking industry realizes the potential of the war baby homebuyer. The impact will become apparent when (and if) we finish grappling with the problem of inflation. We will then see single family housing demand higher than it was in even the peak days of the early 1970s. FNMA . |
