MEMPHIS, Tenn. (April 30, 2007) — The Tennessee Housing Development Agency (THDA) will offer $120 million of Homeownership Program Bonds to retail investors beginning Wednesday, May 2, 2007, according to Ted R. Fellman, the agency’s executive director. This is the largest THDA offering of such bonds in the last six years.
The bonds are being offered only to retail investors on Wednesday and will be opened up to institutional investors on Thursday, May 3.
The large bond size is a result of the growing demand for THDA’s single-family mortgages, which are fixed-rate, 30-year mortgages. Last year about $300 million of THDA debt was sold to fund mortgages. This year the amount is expected to be between $400 million and $450 million. In 1999, THDA received applications for $37 million in March and $38 million in April. In comparison, $40 million in applications was received in March this year and $50 million in April.
“A variety of factors have led to the unprecedented demand for THDA’s first-time homebuyer program, including more emphasis on training and outreach,” said Fellman. "In addition, we introduced a third mortgage option, giving qualifying homebuyers the ability to choose the program that best meets their individual needs. Homebuyers that choose less down-payment or closing cost assistance receive the lowest mortgage rate.”
Morgan Keegan & Company, Inc. will serve as senior manager of the bond offering. Don Peterson, senior vice president in the firm’s Housing Finance Group, said the proceeds will be used to originate single-family mortgages in the state, generally for first-time homeowners.
"The interest from the bonds is exempt from federal income tax and will likely appeal to a broad range of investors in both the institutional and retail markets,” said Peterson.
Morgan Keegan is one of the largest lead underwriters of municipal bonds, ranking 11th in the nation last year according to Thomson Financial, one of the nation’s leading municipal bond information services. The full-service brokerage and investment firm consistently ranks as the number one municipal bond underwriter in Tennessee. For more information regarding this offering, please call Casy O’Brien at 800-203-2309.
About THDA’s Homeownership Program:
- Great Rate: A below market interest rate loan secured by a first mortgage; no closing costs; loan type determines down payment.
- Great Advantage: A slightly higher interest rate secured by a first mortgage; 2% of loan amount available as assistance with closing costs and down payment.
- Great Start: A slightly higher interest rate secured by a first mortgage; 4% of loan amount available as assistance with down payment and closing costs.
For more information about the THDA Homeownership Program and participating lenders, go to www.tennessee.gov/thda/index.htm.
Morgan Keegan & Company, Inc. is the securities brokerage subsidiary of Regions Financial Corporation (NYSE:RF). Additional information about Morgan Keegan can be found here. Learn more about Regions — a member of the S&P 100 Index and one of the nation’s top 10 financial services providers — here.
Contact:
Melinda Rutland
Morgan Keegan & Company, Inc.
901/531-3259
melinda.rutland@morgankeegan.com
