INFORMATION EDSR 09-13-1993 MINNESOTA
410.® HOUSING
flip' FINANCE
AGENCY
•
DATE: September 8, 1993
INFORMATION
TO: Participating Cities and Lenders, The 1993 Minnesota City
Participation Program
FROM: Michael Haleyk
Director of Hbb
gage Programs
SUBJECT: MCPP Update 93-6; Mortgage Terms; Program Commencement Date;
Program Announcement/Marketing; Program Code
MORTGAGE TERMS
The Minnesota Housing Finance Agency (MHFA) is pleased to announce that it has
arranged for the sale of mortgage revenue bonds to fund the 1993 Minnesota City
Participation Program (MCPP). The interest rate on the first $15 million of funds
available has been set at 6.25% per annum which ties as the lowest interest rate
offered in Agency history. Initially, home sellers will be charged 11/2 discount points
under the program whether they are selling an existing or newly constructed home
and lenders will net 21/2% of the original mortgage amount in fee income for
originating a loan under MCPP. The maximum mortgage term may not exceed 30
years.
PROGRAM COMMENCEMENT DATE
In accordance with the Minnesota City Participation Program Application-Commitment
Agreement, MHFA Form 93-1, the commitment term and set-aside term for all program
participants shall begin on September 16, 1993. The commitment term shall expire on
May 15, 1994 and the set-aside term shall expire on March 15, 1994. Participating
lenders under the program may reserve mortgage loans as of September 16, 1993.
•
PROGRAM ANNOUNCEMENT/MARKETING
•
The MCPP will be announced through individual press releases for all participating
cities which will be prepared and distributed to various local media on or about
• September 15, 1993. It is also possible that a press event will be planned in one
participating city.
•
400 Sibley Street, Suite 300, St. Paul, Minnesota 55101 (612) 296.7608 Telecopier(612) 296-8139 TDD(612) 297.2361
Equal Opportunity Housing and Equal Opportunity Employment
RE: MCPP Update 93-6
Page 2
September 8, 1993
Program brochures for the MCPP will be sent to participating cities under separate
cover. Participating cities may arrange for the distribution of these brochures to
lenders, builders, real estate agents and consumers as they wish.
MHFA is also preparing a mailing announcing both the Minnesota Mortgage Program
and the Minnesota City Participation Program to builders and real estate agents
currently on its mailing list. In the MFHA "Pocket Guide" provided to real estate agents
and builders, an insert is provided that includes all participating cities.
PROGRAM CODE
As noted above, participating lenders (Sellers) under the MCPP may begin reserving
home mortgage loans under the program on Thursday, September 16, 1993. In
reserving loans, they should use program code 201. Should you have any questions
regarding the above, please don't hesitate to contact us.