HomeMy WebLinkAbout1981-124 RESOLUTION OF THE CITY OF SAN BERNARDINO
APPROVING A CERTAIN OPERATING MEMORANDUM TO THE
MORTGAGE LOAN-PURCHASE AGREEMENT FOR THE
PURPOSE OF MAKING MORTGAGE LOANS FOR
FINANCING RESIDENTIAL HOUSING
WHEREAS, the City of San Bernardino, California (the "City"), has
previously adopted its Resolution No. 80-246, approving and authorizing execution
of the Mortgage Loan-Purchase Agreement with Santa Fe Federal Savings and Loan
Association, as amended by Resolution No. 80-270 in connection with the issuance
by the City of its $41,625,000 Single Family Residential 'Mortgage Revenue Bonds,
1980 Series A (the 'Bonds"); and
WHEREAS, it is now desirable that said Agreement be amended at this
time.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED
BY THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS:
Section 1. The City hereby approves the Operating ?Memorandum to the
;Mortgage Loan-Purchase Agreement by and between the City and Santa Fe Federal
Savings and Loan Association as attached hereto as Exhibit "A".
Section 2. The Mayor and City Clerk of the City of San Bernardino,
California, are hereby authorized to execute said Operating Memorandum to said
Agreement on behalf of the City with the seal of the City to be affixed thereto.
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I HEREBY CERTIFY that the foregoing resolution was duly adopted by
the Mayor and Common Council of the City of San Bernardino at 17
meeting thereof, held on the day of , 1981, by tht(following
vote, to-wit:
AYES: Counc men
G
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved his f� day of
1981.
May f e C' y of
San er rdin
Approved as to form:
l el
City Aftfirney
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Irrrr.
OPERATING MEMORANDUM NO. 2
TO THE MORTGAGE LOAN-PURCHASE AGREEMENT
The City and the Qualified Mortgage Lender hereby agree to the
following items:
1. It is hereby agreed that the City is providing low-interest, long-
term mortgage financing to make affordable housing available in the City of San
Bernardino. The Qualified Mortgage Lender has contracted with the City pursuant
to the Mortgage Loan-Purchase Agreement to provide its expertize and experience
to implement this public purpose program. The Qualified Mortgage Lender
recognizes and agrees that all Mortgage Loans originated with the intent of
eventual sale to the Trustee on behalf of the City must meet the underwriting
standards as though the Mortgage Loan were being made for the sole account of
the Qualified Mortgage Lender and such higher standards as may be specifically
imposed by the Agency or deemed necessary by the Qualified Mortgage Lender to
implement the recognized public purpose of this program.
2. All sales of Residences and the making of Mortgage Loans shall be
only to owner-occupants who will in fact occupy such Residence as their primary
place of residence. To the extent warranted by the attendant circumstances and in
its business judgment, the Qualified Mortgage Lender shall obtain any additional
documents, representations, verifications or guaranties to its satisfaction that the
proposed Mortgagor will in fact occupy the Residence securing the intended
Mortgage Loan as his primary place of residence.
3. The Qualified Mortgage Lender agrees to obtain such assurances
to its satisfaction that each 'Mortgagor understands the owner-occupancy require-
ments and the other pertinent elements of the City's Program and to implement
procedures satisfactory to both the City and the Qualified Mortgage Lender so as
to accomplish the goal of the City's Program.
4. Notwithstanding the fact that FHLMC Guidelines permit a liberal
policy with regard to cosignatures on Mortgage Loans, it is the desire of the City
to adopt a more stringent requirement with respect to cosignatories and the
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circumstances under which such will be permitted. It is hereby agreed that as to
the cosignatories on a Mortgage Loan, the Qualified Mortgage Lender shall not
originate a Mortgage Loan on behalf of the City unless the primary borrower (that
being the intended owner-occupant) can qualify for a Mortgage Loan in accordance
with the standard underwriting criteria of the Qualified Mortgage Lender for at
least fifty percent (50%) of the requested original principal amount of the
Mortgage Loan. Such cosignatory shall be, with respect to the primary borrower, a
"related person" as defined in Section 267(c)(4) of the Internal Revenue Code of
1954, as amended, and the regulations promulgated thereunder.
IN WITNESS WHEREOF, the Agency and the Qualified Mortgage Lender
have executed this Operating Memorandum as of the day of
1981.
CITY OF SAN BERNARDINO, CALIFORNIA
By
Mayor
(SEAL)
ATTEST:
City Clerk
SANTA FE FEDERAL SAVINGS AND
LOAN ASSOCIATION, a federally
(SEAL) chartered mutual savings and
loan association
By
Title
By
Title
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