ADFAs Mortgage Bond Program
ADFA Blows Roof Off
Homeownership Loan Production in 1999
The Arkansas Development Finance Authority has experienced record-breaking mortgage production in 1999 with $165 million in mortgage loans reserved during the year in its HomeToOwn Program. This figure compares to an annual average of $92 million in mortgage loan closings over the previous three years (1996 1998).
I attribute the record-breaking pace to a combination of favorable market conditions and changes made a little more than a year ago in ADFAs affordable mortgage program. To be sure, home sales in Arkansas are at an all time high, with good economic times and historically low interest rates. Nevertheless, our tremendous loan production increases are only partially attributable to those conditions. ADFAs introduction of guaranteed year-round funding and the implementation of our internet-accessed loan reservation system has made the HomeToOwn program much more user-friendly. Comments from the Arkansas lending community confirm that these changes have resulted in larger numbers of eligible borrowers taking advantage of ADFAs great program rates.
The HomeToOwn Program offers below-market interest rate funds year round to qualified homebuyers. ADFA also offers down payment and closing cost assistance in the form of a second mortgage. Over 120 banks, mortgage companies and savings and loan institutions across Arkansas participate in the program.
The current interest rate being offered through the HomeToOwn loan program is 7.1 percent for a 30-year fixed-rate mortgage and 7.54 percent for a 10-year, fixed-rate second mortgage.
To check on current interest rates call ADFAs toll free "HomeToOwn" answer line at 1-800-582-6637. Up to date information is also posted on ADFAs web site at <www.state.ar.us/adfa>.
Board actions (December, 99 meeting)
ADFA Board of Directors approved the following actions during its December board meeting:
Karen Flake New ADFA Chair of the Board
ADFAs Board of Directors unanimously elected Karen Flake as Chair and Freddie Mobley as the new Vice-Chair of ADFAs Board of Directors for 2000 and 2001.
Passing of the Gavel
I would like to include a personal note here to Bob Ferguson, ADFAs Chair for the past two years. I have marveled at the contribution he has made, both before I came to ADFA and since my arrival. He has been a tremendous leader.
As chair, he spearheaded ADFAs efforts to establish internal accounting controls. He was also instrumental in the development of ADFAs professional selection policy, insuring impartiality in the selection of bond counsels, underwriters, trustees, etc. His commitment to helping ADFA and Arkansas is a valuable asset to the authority.
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