HomeMy WebLinkAboutResolution 1980-021
RESOLUTION 80-21
GRANTING APPROVAL TO THE; rPARRANT COUNTY HOUSD1G
FINANCE CORPORATION FOR THE USE OF PROCEEDS OF
ITS SERIES 1980 SINGLE FAMILY MORTGAGE REVENUE
BONDS FOR ACQUIRING HOME MORTGAGES RELATED TO
HOHES ~nTHIN THE CITY.
í~HERt:AS, the creation of the 'Tarrant County Housing Finance
Corporation (the "Corporation") pursuant to the Texas Housing
Finance Corporations Act (the "Act") was approved by resolution of
the governing body of Tarrant County, adopted on the 14th day of
April, 1980, to provide a means of financing the cost of resiàen-
tial ownership and development that will provide decent, safe and
sanitary housing for residents of the County at prices they can
afford; and
WHEREAS, the Corporation has the power under the Act to issue
its bonds, the aggregate principal amount of which issued in any
calendar year shall not exceed the total of (a) the costs of
issuance of such bonds, any reserves or capitalized interest
required by the resolution or resolutions authorizing the bonds,
plus any bond discounts, and (b) the greater of (i) $20,000,000,
(ii) a figure determined by multiplying $150 times the population
of the County as determined by the Corporation's rules or
regulations, resolutions relating to the issuance of bonds, or
finanëing documents relating to such issuance, or (iii) an amount
equal to 25 percent of the total dollar amount of the market
demand for home mortgages (as defined in the Act) during such
calendar year as determined by the Corporation's rules or
regulations, resolutions relating to the issuance of bonds, or
financing documents u~lating to such issuance (the "t1aximum
Annual Amount"), to defray, in whole or in part, the costs of
purchasing, or funding the making of, home mortgages (as defined
and described in the Act); and
WHEREAS, the Board of Directors of the Corporation has
requested the approval of the goverinq body of the City to
acquire home mortgages related to homes (as defined and described
in the Act) within the City with the proceeds of a Series 1980
Single Family Mortgage Revenue Bond issue (the "Bonds").
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF NQ.cth..R:i..dlancLl:!iLJ~__, Texas:
1. That, the governing bOdy of the City hereby grants its
approval to the Corporation for the use of proceeds of the Bonds
for acquiring home mortgages related to homes within the City.
2. This Resolution in no way creates an obligation on the part of the
City or the County with respect to the Bonds or any program sponsored by the
Corporation.
Revision - 6/l9/80
TT\RRAN'J' COUNTY HOUSING FINANCE CORPORA'rrON
PRELl MI NARY MOR'rGAGE PU RCHASE PHOGRAM' OUTL I NF.
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1. Bond issue size: Between $50 and $~OO million, of which
approx ima te iŸ8S % wi l1 be used to pur chas e mor tgages. ('Phe
balance will be used to fund reserves and pay bond financing
costs). The final size will be determined after the
Corporation receives commitment requests from mortgage
lenders. The issue is subject to Federal legislation
currently pending in Congress and, under ~exas law, cannot
exceed 25 percent of the area's mortgage market as determined
by a survey to be conducted.
2.
Maximum income of borrower:
1979as defined-tor Federal
mented by a 1979 tax return
lender.
$35,000 adjusted gross income in
income tax purposes and as docu-
or other evidence satisfactory to
3. Maximum purch~ price: $85,000
4. Maximum loan amount: $75,000
5. Single loan per borrower: No borrower may have more than one
mortgage-rãan-rrom-rne Corporation at a given point in time.
6.
proportion of new
will 5ërñãdeona
existing housing.
excluded.
construction and existing housing: Loans
first-come, frrst~serve oasis on new or
Financing of rehabilitated ho~sing is
7. Geographical area: Loans may be made on property anywhere in
Tarrant County,--ëxcluding the City of Fort í~orth, subject to
the approval of cities with populations over 20,000.
8. Eligibility of mortgage lenders: Participant shall have
mäIntained aI1--office in the County continuolJs1y since
January 1, 1980 and will be, (i) at the time of the origina-
tion of any Mortgage Loan for purchase by Issuer which has
FHA Insurance, and at all times thereafter so long as
Participant shall continue to serve in the capacity con-
templatecl under the terms of: the Agreements" 'a FIIA-approvccl
mortgagee and a FNMT\ or FHLMC-approved servicer of:
FHA-insured mortgages, (ii) at the time of: the origination of:
any Mortgage Loan for purchase by Issuer which has a -Tr..
Guaranty and at all times thereafter so long as participant
shall continue to serve in the capacity contemplated under
the terms of: the Agreements, an eligible lender for mortgages
guarant~ed by VA and a FNMA or FHrMC-approved s~rvicer of
VA-guaranteed mortgaqes, and (iii) at the time of t.he origi-
nation of any conventional r·1ortgage Loan fòr purchas~ by
Issuer, and at all times thereafter so long as participant
. shall continue to serve in the capacity contemplate(ì un(ler
the terms of the Agreements, a FNMA or FHLMC-approved seller
and servicer of conventional mortgages, or an institution,
the deposits of which are insured by FDIC or FSLIC, or having
a minimúm capital of $250,000.
9. Loan underwriting standards: All lenders must conform to
Federal Home Loan Mortgage Corporation (F'HLMC) or Federal
National Mortgage Association (FNMA) loan underwriting
standards, as applied by private mortgage insurance (PMT) com-
panies on all loans. On FHA/VA lOatH" 'PHA/VA standards
apply.
10. Type~ o~ property qualifications: One family, owner-occupied
detached or-ãt:t:ã"chëd' resíaences (excluding trailers, mobile
homes and condominiums).' "De minirnus PUDs" are permitteò if
they meet FNMA or FHLMt guidelines and (i) no commitment may
be made on a unit of a planned unit development until at
least 51% of the units in such planneà unit development have
been sold, and (ii) no more than the lesser of twenty-five
units or 25% of the units of anyone planned unit development
may be the subject of Mortgage Loans originated under the
prog rain.
11. Sub-commitments of funds: The Corporatio~ will not allow
buITder-;--reãItororcreveloper sub-commitments.
12. Refinancing: The Corporaiton will not purchase ~ mortgage
which refinances a borrower's existing permanent mortgage
loan.
13. Assumptions: Assumptions are permitted. However, on conven-
tional-rããïïs, the assumptor must meet the IC)79 income limit
and owner-occupied requirements of the program.
/i4.
prepayments of loan principal (curtailments): Prepayments
will -5e--aïïowedatanytime; prepaymentpenãTities on conven-
tional mortgage loans bearing interest of 10% or less shall
be: 4% - 1st year; 3% - 2nd year; 2% - lrd year; and l~ - 4th
year. No pr(~payment p(-~na1Lties may be charqc(l on FIlA or VA
loans.
15.
Loan- to-value ratio: (i) uninsured loans - up to 80%, (ii)
loans ínsi'îï:ëdhyprTvate mortgage insurers - up to C)5% and,
( i i i) loa n ~:; FH A / V 1\ ins u red, tot h e e x t. e n t 0 f: ins u red co v e r iF) e
(up to 97% FHA¡ up to 100% VA). On VA loans, the amount of
cash down payment plus the amount of VA guarantee must be at
least equivalent to 25% of the selling price or the appraisal
value whichever is less.
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16. Type ~~ lo~~,"~: fo'TIA-insurer1 (except SRction 24S); 'I1\
g u a ran tee d; con V(~ n t ion al wi l: h P~H ins u ran ~ e i f 1 P. S s t h an i'l
20% down payment, or uninsured if 20% or more down payment.
There will be no specific allocation required as between
conventional, FHA and VA mortgage loans.
17. Loan term: All mortgage loans must have a term of 30 years
with substantially level monthly amortization.
18. Loan interest rate: 'T'o be established at the completion of
theboñð-sare. -----
19. Mortgage insurance: (i) If the borrower makes less than 20%
down paymenC-prì'ffiary coverage must be provided by
FHLMC-approved PM I , FIlA, or VA (premium paid by borrower) anò
(ii) on the entire portfolio of loans purchased by the
Corporation, there will be mortgage pool insllrance equal to
10% of the original principal amount of loans insured, to
cover extraordinary losses not covered by primary insurance
(premium paid by Corporation).
20. Minimum Commitment to Lenders: Commitment allocations to
quafí[íed lenòers wíIl~e for a minimum of $1,000,000 in
mortgage loans purchased (exclusive of accrued interest) per
lende r .
21. Fees a~d charges: There are a total of three and one-quarter
TI.7f/4)"-percentage points (based on commitment/loan amounbJ)
plus normal closing costs under the program. Two and one-
quarter (2-1/4) points are paid to the len'der by the seller
and borrower at the time of loan closing. These fees and
charges are designated as follows:
Commitment Fee - A 2% (of the total commitment amount) fee
will be paid by participating lenders to the Corporation at
the time of the mortgage purchase commitment.
Program pa.rticipation Fee - '^ fee, not to exce(~d 2% or the
original principal amount of the mortgage loan, may be
charged by Participants, as permitted by law, to sellers of
residences. This fee represents reimbursement to the
participants of their Commitment Fees.
Loan Origination Fee - a fee not to exceeò 1% (of loan
òmounr.) on FTlA/V1\ loans (or 1-1/2~, in the ca,ge of conven-
tional loans) may be charge(l by the lenòer to either the
borrower or the seller (or split between the borrower or
seller at their discretion).
Warehousing Fee "'- a 1/4 of 1% (of loan amount) fee may be
charged by the lender to either the borrower or the seller .)s
long as the loan interest rate is equal to or below the pri¡ne
interest rate charged hy The Fort Worth National Bank.
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).
Miscellan0.ous Fr;>es - Appraisal fe0s, title fees, attorney's
[(>0S, credit report fees ~nrl other closing costs not set hy
the Corporation may be chargerl by the lender as long as they
are "reasonable and customary".
Servicing Fee - Lenders will receive a 3/8% annual servicing
fee for servicing the mortgage loan, such fee being withheld
ratably from the monthly remittances of collected payments.
, I
22. Loan administration: Loans must be serviced by the origi-
n at i n 9I en êfër:------
23. Delivery of Mortgage Loans: Loans will be delivered by the
õrTginafing lendër~o-rhe-Corporation on or before a date one
year after delivery date (issuance) of the bonds. ~he
Trustee bank will purchase the loans (including any accrued
interest) without recourse on behalf of the Corporation after
the Administrator has determined that the loans have been
made in accordance with the Corporation's contractual
requirements. The Corporation will make a good faith effort
to purchase loans within ten business days after complete
delivery.
24. Representation and warranties: Upon delivery of the mortgage
loanS-to tt1e Trustec-oan~tKe participating lender must sign
a document containing customary FHLMC/FNMA representations
and warranties, plus other representations and warranties
pert~ining to the Corporation as a public instrumentality.
25. Commencement of Applications: Applicati9ns for mortgage
loans cannõ[ Oë acceptea1JYParticipan ts until the
Corporation advises participants that bonds have been sold
and the mortgage interest rate has been establi~hed.
26. Allocation of Funds to Lenders. Funding commitments will be
allocated on-the basìs õteãC!1 participating lender's share
of single family home mortgage loan originations in ~arrant
County (excluding the City of Fort Worth) in 197Q, but in no
case will any allocation exceed the amount 'requested by a
lender.
Passe~and approved this 2nd day of July, 1980.
,
l· 7 -' ,
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D~ck Faram - Mayor
ATTEST:
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