Res 1984-114 - Laserfiche WebLink

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EXHIBIT "P." THE PROGRAM General (1982) The Corporatlou has established th~Program pursuant to the Act as a means of financing the coats of residential ownership which will provide deeent, safe and sanitary housing at affordable prices for residents of the Eligible Loan Area. . The Corporation has committed to purchase Mortgage Loans from the Participants in the respective amounts set forth under the CAption "The Participants." The Participants have offered to originate, sell to the Corporation and service such Mortgage Lo~.ns according to the t !MnS and conditions set forth in the Agreement. Each Participant has paid to the Corporation a nonrefundable Program Participation Fee equal to 4% of the amount of its Allocation, which will be deposited with the Trustee and applied as described herein under "Sources and Uses of Funds." In the "Study of Potential Demand for Single-Family Residential Mortgage Funds" (the "Demand Study") attached hereto as Appendix A (which Demand Study should be read in its entirety) it is projected that the demand for mortgage loans in the Eligible Loan Area for the year 1982 would roughly equal $65,999,000. Origination and Purchase Each Participant has agreed to use its best efforts to originate Mortgage Loans which comply with the requirements established by the Agreement, including the then current loan origination, eligibility, credit underwriting and appraisal standards of the V A for V A Mortgage Loans and the Federal National Mortgage Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC"), for Conventional Mortgage Loans. Each Participant has agreed to use its best efforts to commit the funds to Eligible Borrowers during the Commitment Period. A Participant, with the consent of the Administrator, may transfer its Allocation to another Participant or to the Administrator, as provided in the Agreement, but may not be compensated for such transfer in excess of the Program Participation Fee attributable to such transferred Allocation. In the event that all or any portion of a Participant's Allocation remains uncommitted at the end of the Commitment Period, the uncommitted portion of such Allocation will be made availabJe for commitments by any Participant to Eligible Borrowers on a first-come, first-served basis. All Mortgage Loans must be originated and delivered for purchase by the Trustee on behalf of the Corporation during the Origination Period. Participants are required to consider aU appliCAtions for Mortgage Loans in the order received, provided, however, that each Participant may reserve to one or more builders, for a period of nine months, up to 80% of its Allocation for Mortgage Loans to finance Newly Constructed Residences. In no event may a Participant reserve funds for a single builder in such a way that the aggregate reservations to such builder, or its related entities, from all Participants exceed 15% of the total amount approved by the Corporation under the Program for reservations to builders. No Mortgage Loan on a Newly Constructed Residence will be purchased by the Corporation until such construction has been completed. Each Participant may use not more than 10% of its Allocation to finance Mortgage Loans made on units in condominium developments. Condominium developments must meet the following criteria 88 set forth in the Agreement; (1) at least 50% of all units in such development have previously been tOld, (ii) at least 75% of the units previously sold are owneroi)CCupied, and (iii) no more than 25% of the units in the development have been financed with. Mortgage Loans under the Progn.m. Each Participant may also use not more than 10% of its Allocation to finance two unit single family Residences. A-1