ANNAPOLIS, MD — In a historic financial move, the Maryland Department of Housing and Community Development announced the issuance of the largest mortgage revenue bond in its history, valued at $400 million. This substantial bond, managed by the department’s Community Development Administration (CDA) through the Residential Revenue Bond program, is set to revolutionize the homebuying landscape in Maryland. It primarily aims to provide affordable and sustainable mortgage loans to first-time homebuyers via the Maryland Mortgage Program (MMP).
Governor Wes Moore emphasized the significance of this record-setting bond, viewing it as a reaffirmation of the state’s dedication to fostering homeownership opportunities. “This bond is a testament to our commitment towards creating a brighter future for all Marylanders,” he said. The governor underlined the role of such financial initiatives in paving the way for more families to build generational wealth, consequently contributing to a more equitable and competitive economy in the state.
For over four decades, the MMP, Maryland’s flagship homeownership program, has aided first-time homebuyers through fixed-rate mortgages. The program encompasses various mortgage products, including the innovative Maryland SmartBuy. This unique offering is the first government mortgage program in the U.S. designed to address student loan debt during home buying.
The success of this bond issuance is attributed to the CDA’s robust credit rating and the expertise of the department’s bond portfolio management team. This issuance met with an enthusiastic response from investors and utilized a strategic mix of tax-exempt and taxable interest rates. This approach will enable the continuation of competitive interest rates for MMP loans, translating into significant annual savings for Maryland homebuyers.
Furthermore, the bonds have been designated as social bonds, aligning with the goals of raising funds for socially beneficial programs and projects. Finishing mortgage loans for low- and moderate-income families through these bonds aligns with sustainable development goals outlined by the International Capital Market Association.
Maryland Department of Housing and Community Development Secretary Jake Day highlighted the critical role of homeownership in building resilient communities. “Homeownership is a cornerstone for sustainable communities, offering Maryland families a path to economic independence and generational wealth creation,” Day remarked. He pointed out that the funding for the MMP largely stems from the sale of such bonds, complemented by a minimal state budget allocation for down payment and settlement expense assistance. This approach effectively makes homeownership affordable for thousands of low to moderate-income households annually, with minimal fiscal impact on Maryland’s taxpayers.
The MMP also offers borrowers additional down payment and closing cost assistance, addressing a major hurdle for many aspiring homeowners. By partnering with local jurisdictions, the program synergizes state and local resources to reduce costs and encourage homeownership in targeted areas.
Demonstrating its efficacy, the MMP has averaged $1 billion in mortgage loans annually over the past four years, supported by a range of successful products and effective marketing strategies.
For further information on the Maryland Mortgage Program, interested individuals are encouraged to visit mmp.maryland.gov.
