$400 Million in Mortgage Revenue Marks Maryland’s Unprecedented Success
ANNAPOLIS, MD — In a groundbreaking financial development, the Maryland Department of Housing and Community Development has unveiled its most significant mortgage revenue bond issuance to date, valued at an impressive $400 million. This substantial bond, expertly managed by the department’s Community Development Administration (CDA) under the Residential Revenue Bond program, is poised to revolutionize the landscape of homebuying in Maryland. Its primary objective is to offer affordable and sustainable mortgage loans to first-time homebuyers through the Maryland Mortgage Program (MMP).
Governor Wes Moore has emphasized the monumental importance of this record-breaking bond, portraying it as a reaffirmation of the state’s unwavering commitment to creating homeownership opportunities. “This bond stands as a testament to our dedication to forging a brighter future for all residents of Maryland,” he declared. The governor underscored the role of financial initiatives like this in opening doors for more families to establish generational wealth, thereby contributing to a more equitable and competitive state economy.
For over four decades, the MMP, Maryland’s flagship homeownership program, has been a steadfast supporter of first-time homebuyers, offering them fixed-rate mortgages and various mortgage products, including the innovative Maryland SmartBuy. This groundbreaking offering is the first government mortgage program in the United States explicitly designed to address the challenge of student loan debt during the home-buying process.
The successful issuance of this bond can be attributed to the CDA’s robust credit rating and the exceptional expertise of the department’s bond portfolio management team. The issuance garnered enthusiastic responses from investors and employed a strategic blend of tax-exempt and taxable interest rates. This approach ensures the continued availability of competitive interest rates for MMP loans, resulting in significant annual savings for prospective Maryland homebuyers.
Moreover, these bonds have been designated as social bonds, aligning perfectly with the objective of raising funds for socially beneficial programs and projects. The use of these bonds to fund mortgage loans for low- and moderate-income families aligns seamlessly with the sustainable development goals outlined by the International Capital Market Association.
Jake Day, Secretary of the Maryland Department of Housing and Community Development, has emphasized the pivotal role of homeownership in the construction of resilient communities. “Homeownership stands as a cornerstone for the development of sustainable communities, offering Maryland families a path to economic independence and the creation of generational wealth,” noted Day. He pointed out that the funding for the MMP largely stems from the sale of these bonds, supplemented by a minimal state budget allocation for down payment and settlement expense assistance. This pragmatic approach ensures that homeownership remains affordable for thousands of low to moderate-income households annually, all while minimizing the fiscal impact on Maryland’s taxpayers.
