CC PACKET 09242002 - Laserfiche WebLink

Home Browse Search

25 CITY OF ST. ANTHONY OWNER OCCUPIED' REVOLVING LOAN PROGRAM SUBORDINATION POLICY PROCESSING/REVIEW FEE: DRAFT There will be a $50 processing fee for all subordination requests. CASH OUT TRANSACTIONS: 1. Mortgagor(s).may receive cash at the time of closing or include other debt in their new financing (i.e. debt consolidation, equity line of credit) as long as the Combined Loan to Value (C/LTV) does not exceed 80 percent. The C/LTV consists of the proposed financing plus the current balances due on all liens against the property. 2. If theCombined Loan to Value(C/LTV) is greater than 80 percent but does not exceed 100 percent, the mortgagor(s) may include only home improvements/repairs in their new financing. Mortgagor(s) may not take cash out without first paying off the balance of the City Owner Occupied Revolving Loan in full. The home improvement/repair funds must be held for disbursement by either the lender or a title company, with any excess funds being applied directly to the principal of the new subordinated City Loan. The C/LTV consists of the proposed financing plus the current balances due on all liens against the property. The new financing cannot be an open-ended line of credit without first paying off the balance of the City Owner Occupied Revolving Loan in full. REQUIRED DOCUMENTATION: The following documentation will be required to process/review loan subordination requests: 1. Outstanding principal balance of current loan(s), monthly payment(s), interest rate and remaining term. Please indicate whether.payment quoted is P.I. or P.I.T.I. 2. Correct legal description of the.property. 3. Correct legal mortgagee clause and name and phone number of the loan representative for the new mortgage 4. Amount of new mortgage, monthly payment (P.I.), interest rate and term. 5. Proof of the present value of home (current appraisal, of if Streamline Refi, a copy of current County Assessor Tax Value Statement). 6. Copy of Title Insurance Commitment (Schedule B). 7. Any other information necessary for the City to determine whether the subordination request complies with the City policy. SUBORDINATION AGREEMENT: Upon receipt of the signed HUD-1 Settlement Statement (signed by the mortgagor(s) and the closer) the executed subordination agreement will be forwarded to the lender or title company for recording. A copy of the recorded document must be returned to the City of St. Anthony when available. The City of St. Anthony will not subordinate loans requiring monthly payments to a cash out transaction or to a lower lien position. The loan must be-included in the new financing if either of these conditions exist.