Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Fri, Jul 24 1992 Date: Fri, 24 Jul 92 04:47:16 EDT Message-ID: 07-24 0000 DECISIONLINE: Real Estate USA TODAY Update July 24-26, 1992 Source: USA TODAY:Gannett National Information Network FANNIE MAE HAS NEW STANDARDS: The Federal National Mortgage Association Thursday announced new mortgage information reporting requirements. Fannie Mae made the move anticipating that federal legislation will pass this fall mandating more housing credit for low-income families and minorities. The company said that announcing the new standards now will give lenders more time to prepare. (For more, see special Fannie Mae package below.) BAD NEWS MEANS LOWER RATES: After standing still for two weeks, mortgage rates are heading lower due to bad economic news. Rates follow bond yields because lenders pool loans into securities that compete with bonds. Bond yields fell Thursday on news of higher jobless claims. Investors think a weak economy will hold down inflation, which erodes the value of bond interest payments. SOME THRIFTS SHIFT RATES: The U.S. average mortgage rate, at 8.09% last week, could fall below 8% next week. California thrift Great Western Savings dropped the rate on its 30-year fixed mortgage to 8.05% from 8.20% Thursday. Points: 1 1:2. Des Moines-based lender Norwest Mortgage kept its 30-year rate at 8%, but dropped points to 1 1:2 from 2. ABC WITHDRAWS SUPPORT FOR BUSH: Associated Builders and Contractors Thursday withdrew its support for President Bush after his refusal to withdraw support for a union agreement. In a brief Wednesday to the Supreme Court, the Bush administration reaffirmed its support of the union-only project provision on the $1.6 billion Boston Harbor cleanup. ABC president Steven Westra said he was "outraged" by Bush's support. INCOME GAINS PREDICTED: New Plan Realty Trust Thursday predicted that fourth-quarter gains should produce record net income for the trust. Net income for fiscal 1992, ending July 31, should rise to approximately $50 million or $1.09 per share, up from $39.8 million or $1.05 per share, in fiscal 1991. Fiscal 1992 revenues will approximate $64 million, vs. $57.4 million for the year before. CENTEX ANNOUNCES RESULTS: Centex Corporation Thursday announced financial results for the first quarter of fiscal 1993, ended June 30. The nation's largest home builder and fifth-largest building contractor said current quarter net earnings of $10 million were 73% greater than $5.8 million for the same quarter a year ago. FIXED-RATE MORTGAGES UNCHANGED: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.09% Thursday, unchanged from Wednesday and down from 8.13% the week before. They were at 9.54% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.50%, unchanged from Wednesday and down from 5.56% the week before. A year ago they were at 7.23%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 3.53% Thursday, unchanged from Wednesday and down from 3.64% the week before. A year ago they were at 6.23%. For the 11th District ARM index, rates were at 5.290%, unchanged from Wednesday and unchanged also from the week before. A year ago they were at 7.329%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decline Thursday, listing at 7.53%. That's down 0.08 from rates of 7.61% Wednesday and down 0.08 from 7.61% the week before. T-bonds were at 8.38% a year ago. SPECIAL PACKAGE ON FANNIE MAE: MOVE GIVES LENDERS TIME: The Federal National Mortgage Association, in announcing new mortgage information reporting requirements, said Thursday that the move gives lenders more time to prepare their systems before the information becomes effective in January under a bill expected to be passed this fall. "It is imperative that we have a true picture of (Fannie Mae) homebuyers," said CEO James Johnson. FANNIE WANTS TO EXPAND IMPACT: Fannie Mae, in a letter to lenders, asked them to begin supplying new data regarding mortgage applicants' race, gender and income by Jan. 1. Johnson said the company could use the information to "expand our impact on unmet housing needs in all communities." Broadened data collection is part of federal legislation modernizing regulation of Fannie Mae and Freddie Mac. BILL HAS PASSED SENATE, HOUSE: Versions of the bill have passed both the Senate and the House, and final passage is anticipated this fall. The letter to lenders details 20 reporting areas where additional and new information will be required. Johnson said that all but one of the new elements are already collected by lenders on the various forms used in the mortgage process. (End of package.) Real Estate Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM