The Federal National Mortgage Assn. has bought...

The Federal National Mortgage Assn. has bought $495 million of six-month, cost-of-funds-indexed adjustable-rate mortgages from San Diego-based Home Federal Savings & Loan, the S & L said Wednesday. The transaction was Fannie Mae’s largest-ever cash purchase of any adjustable-rate mortgage product.

The sale to Fannie Mae “made sense for us from a pricing standpoint, and Fannie Mae was able to offer a quick turnaround on a very large transaction,” said Greg Schmidt, managing director of secondary marketing for Home Federal. The quick turnaround ensured “that we wouldn’t face interest rate variations had we sold (the loans) on Wall Street,” Schmidt said. “A sale on Wall Street could have taken 45 days or more.”