Clipped From Fairbanks Daily News-Miner
difficult He In airlifting Additional state revenue set aside for mortgages JUNEAU (AP) - State Revenue Commissioner George Morrison said Friday the state is investing an additional $5 million in Aluska mortgages, bringing the total of such investment to $25 million. Morrison said this is in addition to the $5 million Gov. Keith H. Miller said earlier this month was being used to purchase insured notes of the Farmers Home Administration. Morrison said the latest investment will be in mortgages on mobile homes and on houses costing less than $26,000. The first $20 million became available to banks and savings and loan associations last month, Morrison said, being allocated among the state's 16 institutions according to the capital of each institution. He said the state is participating in conventional housing mortgages to the extent of 75 per cent, with the banks picking up the balance. "Most of the federally guaranteed paper has a secondary market," Morrison said, "and we're providing a secondary market on other types of secured loans. This should provide almost an immediate impetus to housing." He said the entire $25 million is being used for new loans, rather than the purchase of existing ones, and he expects the entire amount to be consumed in 60 to 90 days. Morrison said the investment may tend to bring down interest rates. "As we increase the supply of money, we expect interest rates to drop " he said, "but state is not going to dictate this." He added that the state's participation eventually may exceed (25 million, once the program gets off the (round.