ANNAPOLIS, MD—Governor Wes Moore on Wednesday announced that the Maryland Department of Housing and Community Development issued the largest mortgage revenue bond in the agency’s history. The $400 million bond from the department’s Community Development Administration through the Residential Revenue Bond program generated tax-exempt and taxable bond proceeds that may be used to finance affordable, sustainable mortgage loans to first-time homebuyers through the Maryland Mortgage Program.
“This record-setting bond reaffirms our commitment to providing pathways to homeownership, helping to create a brighter future for all Marylanders,” said Gov. Moore. “By opening the door for more families to create generational wealth, we are fostering a more equitable and competitive economy.”
The Maryland Mortgage Program has been the state’s flagship homeownership program for more than 40 years, providing fixed-rate mortgages primarily to first-time homebuyers. The program offers an array of mortgage products, including Maryland SmartBuy, the first government mortgage program in the nation designed to eliminate student loan debt as part of the homebuying process.
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, this historic issuance received a strong response from bond investors. The strategic combination of tax-exempt and taxable interest rates achieved through the bond sale will enable the department to continue to offer Maryland Mortgage Program loans at competitive interest rates, providing annual savings to Maryland homebuyers.
All bonds in the issuance were designated as social bonds, indicating that the bonds will raise funds for programs and projects that seek to achieve positive social outcomes. The use of the proceeds from the bond sale to finance mortgage loans for low- and moderate-income families meets sustainable development goals outlined by the International Capital Market Association.
“Homeownership is an important foundation for resilient, sustainable communities, providing opportunities for Maryland families to achieve economic independence and build generational wealth, opportunities that must be equitable and accessible for all,” said Maryland Department of Housing and Community Development Secretary Jake Day. “The resources for the Maryland Mortgage Program come primarily from the sale of these types of bonds, and supported with a small State budget appropriation for down payment and settlement expense assistance, making the American dream of owning a home affordable and attainable for thousands of low to moderate-income households annually at virtually no cost to Maryland’s taxpayers.”
Maryland Mortgage Program borrowers can receive additional down payment and closing cost assistance, helping to address one of the biggest barriers for many homebuyers. The program also routinely partners with local jurisdictions, combining state and local resources to further reduce costs and incentivize homeownership in targeted areas.
Empowered by a variety of successful products and consistent, effective marketing, the Maryland Mortgage Program has issued on average $1 billion in mortgage loans annually over the past four years.
Additional information is available at https://mmp.maryland.gov.
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