HomeMy WebLinkAbout1981-123 RESOLUTION OF THE CITY OF SAN BERNARDINO
APPROVING A CERTAIN OPERATING MEMORANDUM TO THE
MORTGAGE SERVICING 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. 80-247, approving and authorizing execution
of the Mortgage Servicing Agreement with Santa Fe Federal Savings and Loan
Association, as amended by Resolution No. 80-276 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 Servicing 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 a,./L,
meeting thereof, held on the day of , 1981, by the following
J vote, to-wit:
AYES: Councilmen
C
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved day of
1981.
Mayor oft it of
San Bernar ino
Approved as to form:
City �� orney
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OPERATING MEMORANDUM NO. 2 TO THE
MORTGAGE SERVICING AGREEMENT
The City and the Servicer hereby agree to the following items:
1. Upon assumption of a Mortgage Loan, the Servicer may charge an
assumption fee not in excess of one and one-half percent (1-1/2%) of the
outstanding principal balance of the Mortgage Loan and such other costs, fees or
charges as set forth in Section 5(a) of the Mortgage Loan-Purchase Agreement.
2. The Servicer will not approve any assumption of a Mortgage Loan
unless, as previously agreed in Section 3.2(f), second paragraph, the Mortgage Loan
satisfies both the underwriting criteria used in making the original Mortgage Loan
and the provisions of the Mortgage Loan-Purchase Agreement subsequent to such
assumption.
3. The Servicer shall obtain, prior to approving an assumption
agreement, a signed owner-occupancy certificate substantially similar in form and
content to an owner-occupancy certificate used upon the origination of a new
Mortgage Loan.
4. Notwithstanding Section 3.2(f), second paragraph, last sentence,
the interest rate may be increased to the then current market rate for such loans
of the Servicer in the event the Residence is no longer owner-occupied or the
Mortgage Insurer declines to continue to provide the requisite Mortgage Insurance.
In such event, the Servicer shall be permitted, if and to the extent allowed by law,
to so increase the stated rate of interest and to purchase the affected Mortgage
Loan from the Agency for the outstanding principal balance thereof plus accrued
interest.
5. To the extent warranted by the attendant circumstances and in its
business judgment, the Servicer shall obtain any additional documents, represen-
tations, verifications or guaranties to its satisfaction that the party assuming a
Mortgage Loan will in fact occupy the Residence securing such Mortgage Loan as
his primary place of residence.
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IN WITNESS WHEREOF, the City and the Servicer 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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