Res 1984-114 - Laserfiche WebLink

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In connection with the origination of each Mortgage Loan, the Participant is required to collect from the Mortpgor or the Seller the Additiona1 Fee in an amount equal to 1 % of the principal amount of the Mortpge Loan, which amount is to be transferred to the Trustee for deposit into the Mortgage Reserve Fund. A Participant may also charge and collect from a Mortgagor or Seller eertain costs which are paid or incurred by the Participant for hazard or mortgage insurance premiums, surveys, title insurance, appraisal fees and similar charges as pennitted by law, to the extent luch charges do not exceed the reasonable and customary amounts charged by the Participant for Mortgage Loans not funded from the proceeds of tax exempt bonds. In addition, the Participant may collect from each Mortgagor or Seller an Origination Fee in an amount not to exceed 1~ of the original principal amount of the Mortgage Loan, and a fee in an amount not to exceed 4% of the original principal amount of the Mortgage Loan, to reimburse the Participant for that portion of the Program Participation Fee attributable to such Mortgage Loan. Mol"tp¡e Loans Moneys in the Acquisition Fund win be used to purchase Mortgage Loans consisting of promissory notes secured by deeds of trust on Residences within the Eligible Loan Area. Each Mortgage Loan originated by a Participant must meet the origination standards set forth in the Agreement. The Mortgage Loans will be made to Eligible Borrowers whose Adjusted Gross Income does not exceed $35,000 (as such amount may be adjusted from time to time by the Corporation) will have a term of 30 years, will provide for substantially equal monthly payments of principal and interest to be made on the first day of each month and will be in such principal amounts as conform to the eligibility and credit underwriting standards in the Agreement and the applicable limitations of VA or the private mortgage insurer, as appropriate, as of the closing date of the Mortgage Loan. The Acquisition Cost of a Residence may not exceed 90% of the Average Area Purchase Price for lingle family residences in the standard metropolitan statistical area in which the Residence is located. Currently, 90% of the Average Area Purchase Prices for single-family Residences, as set forth by the U.S. Department of the Treasury as "safe harbor" guidelines are as follows; $57,780 for Newly Constructed Residences and $45,450 for Existing Residences in the Counties of Bastrop, Blanco, Caldwell, Fayette and Llano; and $70,200 for Newly Constructed Residences and $63,720 for Existing Residences in the Counties of Hays and Williamson. Such figures for Existing Residences are multipled by 1.126 in the case of duplex Residences. The Mortgage Loans will bear interest at a stated rate of 13.50% per annum, subject to a one- time increase at any time by an amount not exceeding 'l'sth of 1 % per annum to provide for additional aervicing compensation to Participants if, and when, such increase is permissible under applicable law. The Seller of a Residence, however, will be permitted to buy down the interest rate on a Mortgage Loan, thereby reducing the monthly amount payable by the Mortgagor for a period not to exceed three years, subject to compliance with the provisions of the Agreement. The result of such a "buy down" could be to effectively reduce the annual interest rate on the Mortgage Loan by not more than 3% below the stated interest rate in the first year of the Mortgage Loan, by not more than 2~ in the second year, and by not more than 1 % in the third year. In order to qualify for purchase by the Corporation under the Program, each Mortgage Loan is to have the insurance coverage or guarantees as set forth below: (1) VA Mortgage Loans-VA guaranty, provided that the VA guaranty plus any cash down payment is equal to at least 25% of the lesser of the sales price or appraised value of the Residence; and (2) Conventional Mortgage Loans-such loans may not exceed 95% of the lesser of the sales price or appraised value of the Residence, and the aggregate principal amount of ConventionaJ Mortgage Loans with loan-to-value ratios in excess of 90% may not exceed 50% of the amount available under the Program to purchase Conventional Mort.¡gage Loans. Any ConventionaJ Mortgage Loan with a loan-to-value ratio in excess of 80% üf the lesser of the A-2