News Release, Maryland Department of Housing
NEW CARROLLTON, Md. (October 23, 2019) – Maryland Department of Housing and Community Development Secretary Kenneth C. Holt announced that the department conducted the largest mortgage revenue bond issuance in the history of the agency. The department’s bond-issuing entity, the Community Development Administration, issued more than $347 million under the Residential Revenue Bond program. Proceeds of the bond sales through that program are primarily used to finance mortgage loans to first-time homebuyers through the state’s Maryland Mortgage Program.
“Under Governor Hogan’s leadership, the state has expanded its portfolio of mortgage products and down payment and closing cost assistance available through the Maryland Mortgage Program, including the nationally-recognized Maryland SmartBuy program which empowers first-time homebuyers to eliminate their student loan debt while purchasing a home,” said Secretary Holt. “The majority of the Maryland Mortgage Program’s resources come from the sale of these types of bonds, not the state’s budget, so this highly successful program is funded and managed with virtually no cost to Maryland’s taxpayers.”
This historic issuance received an overwhelming response from bond investors in part due to the Community Development Administration’s solid credit rating and the high level of expertise provided by the department’s bond portfolio management team. The issuance received over $1.2 billion in investor orders, with more than 27 percent of filled orders coming from Maryland and national retail investors. The tax-exempt interest rates achieved through this bond sale will enable the department to continue to offer Maryland Mortgage Program loans at below-market interest rates, providing annual savings to program homebuyers.
The Maryland Mortgage Program has been the state’s flagship homeownership program for more than 35 years, providing fixed-rate mortgages along with down payment and closing cost incentives. From 2015 through 2018 – over the period of Governor Hogan’s first term, the Maryland Mortgage Program assisted more than 9,900 homebuyers with mortgages valued at over $2.3 billion and over $49.5 million in down payment assistance.
For more information about the Maryland Mortgage Program and its newest initiatives including Maryland SmartBuy, visit http://mmp.maryland.gov.