LOS ANGELES -- Last week's issuance of $104.2 million of home mortgage revenue bonds by the California Housing Finance Agency included $20.6 million to fund a pilot program to provide below-market adjustable-rate mortgage loans for first-time home buyers.

"To our knowledge, this is the first time that a state housing agency has made the decision to launch an adjustable-rate mortgage program," said Suzanne S. Nofz, senior vice president for Lehman Brothers. Lehman was senior manager on the negotiated deal, which was sold in two series last Thursday.

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