The Connecticut Housing Finance Authority intends to offer $189 million in tax-exempt bonds Tuesday to finance single-family mortgages.
The authority will sell $149 million in fixed-rate bonds and Wells Fargo will purchase $40 million in variable-rate bonds. Proceeds will finance more than 750 single-family mortgages and refund some bonds for interest-rate savings.
JPMorgan is the lead underwriter.
According to executive director Karl Kilduff, the authority financed 646 mortgages in the first quarter totaling more than $106 million, or up 23% from the first quarter of the previous year.
The current below-market interest rates on CHFA mortgages for first-time homebuyers range from 2.875% to 3.125% as of April 22, authority officials said, providing an advantage for borrowers compared with Freddie Mac's 3.59%.
CHFA also uses bond proceeds to finance affordable multifamily rental housing developments.
Standard & Poor's and Moody's Investors Service rate the authority's bonds triple-A.
Hawkins, Delafield & Wood LLP, Kutak Rock LLP and Pugh, Jones & Johnson PC are co-bond counsel. Tobin, Carberry, O'Malley, Riley & Selinger PC is the underwriters' counsel. Lamont Financial Services Corp. is CHFA's financial advisor.