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U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410-8000

January 19, 1989
Mortgagee Letter 89-7
TO:  ALL APPROVED MORTGAGEES
SUBJECT:  Growing Equity Mortgage Program
 
     Mortgagee Letter 85-3 , dated March 15, 1985, described the
major features of the Growing Equity Mortgage (GEM) program.  This
mortgagee letter also provided tables for determining the monthly
installments per thousand dollars of original loan proceeds, monthly
mortgage insurance premium factors and outstanding principal balance
factors for each of the five specific plans authorized under the GEM
program.  The tables were based on mortgages with annual contract
interest rates ranging from 10 percent to 17.25 percent.
 
     From time to time, annual contract interest rates have fallen
below 10 percent, resulting in some difficulty in calculating monthly
installments, outstanding principal balance, etc.  The attachments to
this mortgagee letter provides tables for determining these items
under the GEM program for mortgages with annual contract interest
rates ranging from 7.5 percent to 9.75 percent
 
     If you have any questions about this letter, please call the
Single Family Development Division, Programs and Procedures Branch,
at (202) 755-5676
 
                                 Sincerely yours,
                                 Thomas T. Demery
                                 Assistant Secretary
Attachments