HomeMy WebLinkAboutIR 7831 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7831
pkATE May 17, 1994
To the Mayor and Members of the City Council
=ps Subject:I 8T3 Fort Worth Housing Finance Corporation
Single Family Mortgage Revenue Bonds Sale
On May 11, 1994, the Fort Worth Housing Finance Corporation closed on its 1994 Single
Family Mortgage Revenue Bond Program (the "Program"). First Southwest Company,
the Placement Agent for the Corporation, privately placed the entire $22,380,000 of low
to moderate first-time homebuyer bonds to the Federal National Mortgage Association.
The Program received a "AAA" rating from Standard & Poors and is guaranteed by the
pooled mortgage loans originated under the Program by the Government National
Mo rtgage Association (GNMA).
The Program mortgage rate is set at 7.81%,providing FHA and VA mortgage loans for a
period of three years for first-time homebuyers. The Program rate is currently 1.25%
below current mortgage market levels and was well received by the mortgage lending
community. Participating lenders can be found on the attached page. These lenders
began taking loan applications for the Program on May 12.
The City's housing staff requested that First Southwest Company structure the Program
to maximize its use in Fort Worth's targeted areas. Under federal tax law, the
Corporation was mandated to set aside $1,104,855 in federally targeted areas for a one
y.ear period; however, the Corporation was able to set aside $4,476,000, or 20%, of the
total bond proceeds for Fort Worth's targeted areas (see attached map) for a two year
period. The Corporation amended the point structure so that lenders were not required
to pay up front fees for Program participation in the targeted areas. This structure
lowers the total closing costs for a homebuyer purchasing a home in the targeted areas.
The income and sales price limitations for the Program are outlined below:
Maximum Family Income (as anticipated for current year
Families of Families of
2 or less 3 or more
$43,300 $49,795
Maximum Sales Price of Residences
New Residences Existing Residences OFF1
� ' CITY SECIRAff
$103,500 $87,570 �T
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ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS '
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7831
May 17, 1994
A IQ To the Mayor and Members of the City Council Page 2 of 2
Subject* Fort Worth Housing Finance Corporation
'873
Single Family Mortgage Revenue Bonds Sale
The legal and finance team members involved in structuring the Program included;
End Role
Fort Worth Housing Staff Affordable Housing Design
First Southwest Company Placement Agent
Kelly Hart & Hallman/
McCall Parkhurst &Horton Co-Bond Counsel
Bank One Corporate Trust Trustee
Haynes & Boones, Trustee's Counsel
Lomas Mortgage USA Master Servicer
Bo
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C ity Terre
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ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
FORT WORTH SINGLE FAMILY
MORTGAGE REVENUE BOND PROGRAM
$22,380,000
Final Lender Participant Allocations
Targeted Existing New TOTAL
Area Residential Construction
North American Mortgage FIRST $0.00 $4,440,000 $4,440,000
2350 Airport Freeway;Suite 650 COME
Bedford,TX BASIS
Trish Fletcher UP TO
817-267-8640 $4,476,000
JOS Mortgage Group FIRST $1,000,000 $3,400,000 $4,400,000
6125 Interstate 20; Suite 140 CONE
Fort Worth,TX 76132 BASIS
Judith O. Smith UP TO
817-294-7887 $4,476,000
Colonial Savings FIRST $6,714,000 $0.00 $6,714,000
2624 W.Freeway COME
Fort Worth,TX BASIS
Gerald Hartman UP TO
817-390-2000 $4,476,000
ICM Mortgage Company FIRST $0.00 $1,000,000 $1,000,000
1431 Greenway Drive; Suite 750 COW
Irving,TX 75038 BASIS
ATTN: Neil Simonson UP TO
214-751-0554 $4,476,000
American National Mortgage FIRST $0.00 $1,350,000 $1,350,000
8713 Airport Frwy;Suite 400 COME
Fort Worth,TX 76180 BASIS
Denise Geraci UP TO
817428-2800 $4,476,000
Banc One Mortgage Corp. FIRST $0.00 $0,00 Targeted Area
1825 Market Ctr.Blvd. COME Only
Dallas,TX 75207 BASIS
David Hooper UP TO
(214)744-8647 $4,476,000
ITOTALS $4,476,000 $7,714,00 $10,190A0 $22,380,000
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