Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real,americast.usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Fri, Sep 4 1992 Date: Fri, 4 Sep 92 04:34:27 EDT Message-ID: 09-04 0000 DECISIONLINE: Real Estate USA TODAY Update Sept. 4-7, 1992 Source: USA TODAY:Gannett National Information Network MORTGAGE DELINQUENCIES INCREASE: Delinquent home mortgages increased in the three months ending in June after three consecutive declines. Slow economic growth helped push the seasonally adjusted annual rate of late home mortgages payments to 4.77% from 4.52%, the Mortgage Bankers Association reported Thursday. The decline was expected. CITICORP MORTGAGE WON'T BE HURT: The problems of Citicorp Mortgage likely will not have much impact on its collateralized mortgage obligations, traders and analysts said Thursday. In a report from the Comptroller of the Currency - leaked to the New York Times and the Wall Street Journal - bank regulators criticized Citicorp Mortgage Inc.'s sloppy bookkeeping, poor loan documentation and consequent delinquencies. ANALYSTS NOT SURPRISED: Analysts said Thursday that a report from the Comptroller of the Currency on Citicorp Mortgage Inc. didn't contain any information they didn't already know about Citicorp's troubled mortgage unit. Analysts also said Citicorp is making improvements and the rating agencies aren't planning any special action as a result of the report leaked to the media. FREDDIE AND FANNIE OFFER RELIEF: Freddie Mac and Fannie Mae Thursday announced mortgage relief provisions to protect credit and house investments of homeowners in Florida and Louisiana whose homes or livelihoods were affected by Hurricane Andrew. The measures give lenders the discretion to alter mortgage payment plans. All changes will be made on a case-by-case basis. FREDDIE MAC TO ISSUE REMICS: Freddie Mac said Thursday that it will sell financial instruments backed by Ginnie Mae. Freddie said it will begin issuing Ginnie-backed Real Estate Mortgage Investment Conduits and strips. The corporation expects its first Ginnie-backed securities will settle in the fourth quarter of this year. REMICs allow issuers to separate mortgage pools into different maturity classes. LENDERS CAN SUSPEND PAYMENTS: Lenders for Freddie Mac and Fannie Mae can now suspend mortgage payments of homeowners affected by Hurricane Andrew for up to three months. Lenders may also reduce the payments for up to 18 months or more, or create longer loan payback plans. Under the plan announced Thursday, Fannie and Freddie will buy loans on damaged homes within the Federally designated disaster areas under certain conditions. MORRISON KNUDSEN SIGNS CONTRACT: Morrison Knudsen Corp. announced Thursday it has signed a contract to provide preconstruction and construction-management services on five projects for Merck & Co. Inc., and is in final negotiations for additional projects. The total construction program is valued at approximately $125 million. MK will service the international health-care firm's Rahway, N.J., headquarters. BERGER ANNOUNCES COURT APPROVAL: Berger Holdings Ltd., Berger Bros. Co., d:b:a Berger Building Products Corp. and the Graywood Products Co. Inc. announced Thursday that the Bankruptcy Court has approved their Amended Disclosure Statement, effective Sept. 2. This permits the companies to forward to all their creditors and shareholders their proposed Joint Plan of Reorganization for vote. FLUOR ANNOUNCES INCOME: Fluor Corp. said Thursday it had third-quarter net income of $36.8 million, or 45 cents a share, compared with profit from operations of $35.1 million, or 43 cents, in the year-earlier quarter. In the 1991 quarter, the engineering and construction concern recorded a gain of $12.4 million, or 15 cents a share, from a tax credit, resulting in net income of $47.5 million, or 58 cents a share. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.01% Thursday, unchanged from Wednesday but up from 7.87% the week before. They were at 9.15% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.26%, unchanged from Wednesday but up from 5.20% the week before. A year ago they were at 6.96%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 3.52% Thursday, unchanged from Wednesday but up from 3.40% the week before. A year ago they were at 5.71%. For the 11th District ARM index, rates were at 5.258%, unchanged from Wednesday and unchanged from the week before. A year ago they were at 6.998%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decrease Thursday, listing at 7.36%. That's down 0.02 from rates of 7.38% Wednesday and down 0.03 from 7.39% the week before. A year ago T-bonds were at 8.09%. ADVISORY: Decisionlines will not be published Monday, Sept. 7, in observance of Labor Day. Decisionlines will resume publication on Tuesday, Sept. 8. Real Estate Editor: Martin Baucom. (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