SEATTLE – The Federal Home Loan Bank of Seattle on Wednesday said it purchased $238 million of Utah Housing Corp. bonds that were used to finance mortgages by several of Utah’s biggest credit unions and banks.
The housing agency purchases and services mortgages made by Utah lenders, including America First CU, Goldenwest FCU, Mountain America FCU, Utah Community FCU, Bank of American Fork, Bank of Utah, Cache Valley Bank and Zions First National Bank.
The AAA-rated, $238-million private placement is composed of serial bonds with maturities ranging from six months to 16 years. The structure enables UHC to replace short-term, variable-rate debt obligations with a more stable source of funding in the form of long-term, floating-rate bonds purchased by the Seattle Bank.
UHC provides down payment and closing cost assistance and FHA or VA mortgages to help qualifying Utah homebuyers purchase a home. Homebuyers apply for a loan with a participating lender. The lender qualifies the borrower and finalizes the loan.