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HomeMy WebLinkAbout1982-109 CRA . 7251C .:', . '". JHHW:ACH:ea 1<::/04/82 " . . RESOLUTION NO. 82-109 A RESOLUTION AMENDING SELLERS' GUIDE FOR THE ORIGINATION OF MORTGAGE LOANS FOR THE AGENCY'S RESIDENTIAL MORTGAGE LOAN FINANCING PROGRAM AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA RESOLVED, by the Community Redevelopment Agency of the City of Santa Ana, as fo 11 ows: ' WHEREAS, the Agency has issued, sold and delivered its Residential Mortgage Revenue Bonds, Issue of 1981, Series A (Participation Purchase and Loan to Lender Program) in order to provide funds for the financing of residences to be constructed withi n the Agency's Redevelopment Project Area; WHEREAS, in connection with the financing of such Mortgage Loans, the Agency approved a Sellers' Guide dated May 1, 1981, for the origination of such Mortgage Loans; WHEREAS, the Agency is authori zed, subject to the approval of Fi rst Nationwide Savings, a Federal Savings and Loan Association, as the Seller to the Agency of participations in such Mortgage Loans, to further amend and supplement the Seller's Guide in accordance with changing regulations and practices in the mortgage industry; WHEREAS, the developer of the residences to be financed with the proceeds of the above described Bonds has requested that the Agency amend and supplement the Sellers' Guide to permit the funding by the developer of a "buydown" of the Mortgage Loan interest rate in accordance wi th present FHLMC regul ati ons and practices; and WHEREAS, the Agency believes it is in the public interest to provide for such a "buydown" in connection wi th the Agency's Resi dent i a 1 Mortgage Fi nanci ng Program; NOW, THEREFORE, IT IS HEREBY ORDERED, as follows: 1, The Sellers' Guide, dated May 1, 1981, is hereby amended and supplemented by the addition of a new Section 3.106 which shall read as follows: "3.106. Interest Rate "Buydown". Under the circumstances and in the manner permitted by applicable FHLMC regulations and practice, the Developer shall be entitled to cause certain of the monthly payments due from the Mortgagor on any Mortgage Loan to be reduced by payi ng to the Trustee at the time of purchase by the Se 11 er of such Mortgage Loan the total of the aggregate amount by whi ch the month ly payments are to be so reduced, but only as follows: A..e~ 7A' " . . , . . . (a) The payment-to-income ratio of the Mortgagor and the obligations- to-income ratio of the Mortgagor (and of any guarantor) shall be not less than the current underwriti ng requi rements of FHLMC for a conventi ona 1 mortgage on the basis of payments applicable during the first year of the Mortgage Loan taking into account the reduction in the Mortgagor's monthly payments during the first year; (b) the Developer must deposit money in a trust account with the Seller for the benefit of the Mortgagor with monthly releases scheduled from such account which serve to reduce the Mortgagor's payments during the early years of the term of the Mortgage Loan; (c) the term of the "buydown" period may not be less than one year or more than three years; (d) the "buydown" may not haye the effect of reduci ng the Mortgagor's monthly payments by more than an equivalent of reducing the Mortgage Loan interest rate by three percentage points; (e) any decrease in the amount of the "buydown" must occur annually and no such decrease for anyone year may exceed the greater of one percentage point or 7-1/2% of the previous year's monthly payment; (f) the trust account must be held by the Seller and must be insured by FSLIC; (g) the Mortgage Loan may make no reference to the "buydown" and the interest rate and monthly payments provided in the Mortgage Loan may not take into account the "buydown"; (h) the trust agreement with the Developer must require the Seller to credit monthly payments for the account of the Mortgagor; (i) the trust agreement must provide for any interest on the trust account to be paid to the Developer or remain in the trust and for reversion of moneys held in the trust account to the Developer if the Residence is sold by the Mortgagor or the Mortgage Loan is prepaid in full, whether voluntarily or involuntarily; (j) the moneys for the "buydown" must be placed in the trust account prior to purchase of the participation in the Mortgage Loan by the Trustee and must be sufficient (without interest unless interest is to remain in the trust account and the Seller agrees to a fixed rate of interest for the full term of the trust) to make all monthly payments provided under the "buydown"; and (k) the Mortgagor's only interest in the escrowed moneys is to have them applied to payments due under the Mortgage Loan as provided in this paragraph and such moneys may not be used to pay past due payments of the Mortgagor," 2 11- ZS- 7A ~~ " -,', , . . 2. The amendment and supplement contained in paragraph 1 hereof shall be inserted by the Secretary of the Agency as a new section into the Sellers' Guide. 3. The amendment and supplement contained in paragraph 1 hereof shall be effective immediately upon receipt by the Secretary of the Agency of the written approval to such amendment and supplement by First Nationwide Savings, a Federal Savings and Loan Association, as the Seller of participations to the Agency under the Residential Mortgage Financing Program. " " " " " I hereby certify that the foregoing is a full, true and correct copy of a resolution duly passed and adopted at a regularly held meeting of the Community Redevelopment Agency of the City of Santa Ana on the 21st day of December, 1982, by the fo 11 owi ng vote: ----- AYES: NOES: Acosta, Bricken, Griset, Luxembourger, Serrato None ABSENT: McGu ig an, Mar ke 1 ::::"y~~ REX SWANSON (SEAL) GORDON BRICKEN APPROVED AS TO FORM: 3 A.'~ 7A " 1ST NATIONWIDE SAVINGS CITY OF SANT' ,a... DI171fJ"" January 12, 1983 COMMUNITY Pt.. ".~..I DEPARlME'" , , Mr. David Ream Community Redevelopment Agency of The City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Re: Approval to Amend and Supplement The Seller's Guide to Permit "3-2-1 Buydown" of Interest Rate - Residential Mortgage Revenue Bonds, Issue of 1981, Series A Dear Mr. Ream: We are in receipt of Resolution No. 82-109 regarding the above captioned Amendment and Supplement. . First Nationwide Savings hereby gives approval to the Amendment and Supplement, as required by Section 2.101 of the Seller's Guide. rJ~Î ~~. ~~. Senior Vice President PJ:tjj . 700 Mackel Siceel San F,"nc<sco, CA 94102 Telephone 415 772.1400 ,J