Path: bloom-picayune.mit.edu!snorkelwacker.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, Oct 30 1992 Date: Fri, 30 Oct 92 04:42:14 EST Message-ID: 10-29 0000 DECISIONLINE: Real Estate USA TODAY Update Oct. 29, 1992 Source: USA TODAY:Gannett National Information Network O&Y ANNOUNCES NEW PLAN: Real estate giant Olympia & York Developments Ltd. announced its revised restructuring plan Wednesday. The plan would give 90% of the real estate company to its unsecured creditors. The plan would create four new companies as part of the restructuring process. Creditors will vote on the plan between Nov. 25 and 30. O&Y's Canadian and U.S. properties would be held by separate companies. (For more, see special O&Y package below.) BANKS SAY POLICIES ARE CHANGING: Banks have made a commitment to affordable mortgage programs and efforts to increase mortgage lending to minorities and low-income consumers, according to the Consumer Bankers Association. They say that 91.4% of mortgage loan institutions have programs to increase mortgage lending to those groups. But government figures show blacks are twice as likely to be turned down for loans than whites. COMMERCIAL MORTGAGES DROPPED: Commercial mortgage bankers suffered from slumping loan activity last year, according to a survey released Wednesday by the Mortgage Bankers Association. Commercial loan production dropped last year to its lowest level since 1982, the survey said. Mid-sized mortgage companies lost an average of $346,773 from loan originations while larger companies sustained an average loss of $624,469. RESIDENTIAL MORTGAGE JUMPED: The Mortgage Bankers Association said Wednesday that residential mortgage bankers last year benefited from a high volume of refinancings. About $588 billion in one- to four-family mortgages were originated last year, up from $453 billion in 1990. About 30% of the 1991 total was from refinancings, up from 13% of the total in 1990. INVESTOR MAY PICK JACOR: Maverick real estate investor Sam Zell's hands-on style could bring great, and potentially painful, change to once high-flying Jacor Communications Inc. The Chicago investor, who specializes in turning around troubled companies, is now working with a partner to buy almost 70% of Jacor, a Cincinnati-based owner of radio stations and other media properties. NEWARK MORTGAGES CLOSED: The New Jersey Housing and Mortgage Finance Agency has finalized the construction financing of 100 units of new public housing throughout the South and Central wards in Newark. Closing on a $6.3 million mortgage took place last week. The units are the first of a number of replacement public housing projects by the Housing Authority of the City of Newark. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.23% Wednesday, unchanged from Tuesday and up from 8.01% the week before. They were at 8.91% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.13%, unchanged from Tuesday and up from 4.97% the week before. A year ago they were at 6.66%. ARM INDEXES STABLE: The one-year Treasury ARM index rates were listed at 3.48% Wednesday, unchanged from Tuesday and up from 3.26% the week before. A year ago they were at 5.39%. For the 11th District ARM index, rates were at 4.874%, unchanged from Tuesday and unchanged from the week before. A year ago they were at 6.845%. T-BONDS UNCHANGED: Treasury security rates for the 30-year bonds were unchanged Wednesday, listing at 7.60%. That's the same as rates of 7.60% Tuesday. Rates were up 0.01 from rates of 7.60% the week before. A year ago they were at 7.90%. SPECIAL PACKAGE ON O&Y: PLAN SPLITS PROPERTIES: Olympia & York Developments Ltd. proposed two holding companies in its restructuring program. The new Canadian company would be called O&Y Properties and the new U.S. company would be called OYRC Holdings. OYRC is expected to be owned 49% by the creditors as opposed to their 90% ownership of O&Y Properties. O&Y Properties will manage all the properties in which it has an interest. SHIFT WAS EASY: An earlier restructuring plan had proposed giving 80% of all O&Y Developments holdings to the unsecured creditors. A lawyer for one of the creditors said the increase to 90% wasn't "a big deal," according to Bloomberg Business News. The plan did not address the company's bankrupt London Canary Wharf project. U.K. TO DECIDE ON RAIL SERVICE: The U.K. government is expected to decide whether to fund the rail extension to Canary Wharf within two weeks, and possibly later this week, government sources said. Chancellor of the Exchequer Norman Lamont will probably announce his decision on funding the vital link from London to the tower block development in East London before his autumn statement Nov. 12. (End of package.) 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