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HomeMy WebLinkAbout85-15 - ResolutionsRESOLUTION NO. 85-15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ESTABLISHING CRITERIA FOR PARTICIPATION BY LENDERS IN THE CITY OF RANCHO CUCAMONGA HOME MORTGAGE FINANCING PROGRAM WHEREAS, the City Council of the City of Raneho Cueamonga (the "City") has undertaken a home mortgage financing program (the "Program") pursuant to Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act") for persons and families within the income limits established by the Act, and proposes to issue a new series of revenue bonds pursuant to the Act to provide additional funds for the Program; and, WHEREAS, the Act requires that home mortgages financed with the proceeds of such revenue bonds shall be originated and serviced by lending institutions (the "Lenders") approved by the City for participation in the Program; and, WHEREAS, Section 52020(b)- of the Act further requires the City to establish criteria for participation by Lenders on an equitable basis; and WHEREAS, the City, with the aid of its staff, has selected the following described criteria for participation by Lenders in the Program, which criteria the City hereby determines to be an equitable basis for such participation. NOW, THEREFORE, BE IT RESOLVED, as follows: A Lender shall be eligible to participate in the Program of the City if Lender meets the following requirements: (a) The Lender shall have originated and shall be now servicing a significant number of mortgages financed by revenue bonds issued by the State of California or by counties, redevelopment agencies, or other cities within the State or shall otherwise be qualified by reason of having originated and serviced conventional loans for Program builders; and (b) The Lender shall be a Federal National Mortgage Association or a Federal Home Loan Mortgage Corporation approved seller/servicer and an approved Federal Housing Administration mortgagee; and (c) The Lender must agree to originate and service home mortgages at the lowest cost which is in the best interests of the mortgagor, which shall, in any event, be a fee of not more than one-half of one percent (1/2 of 1%) of the initial principal amount of the applicable home mortgage and an annual fee to service home mortgages of not more than one-fifth of one percent (1/5 of 1%) of the declining principal balance of the applicable home mortgage. ® The City Clerk shall cause a notice of the City's intent to select one or more lenders to participate in the Program, and of such criteria, to be published once in The Daily Report. 3- Such notice shall be substantially in the following form: Resolution No. 85-15 Page 2 NOTICE IS HEREBY GIVEN by the City Council of the City of Rancho Cucamonga that it intends to select one or more lending institutions ( the "Lender" ) to originate and service Home Mortgages to be purchased with the proceeds of its new series of Home Mortgage Revenue Bonds to be issued to provide additional funds for the City's Home Mortgage Financing Program (the "Program"). The City has established the following criteria for selection of Lenders for its Program: (a) The Lender shall have originated and shall be now servicing a significant number of mortgages financed by revenue bonds issued by the State of Calfiornla or by counties, redevelopment agencies or other cities within the State or shall otherwise be qualified by reason of having originated and serviced conventional loans for Program builders; and (b) The Lender shall be a Federal National Mortgage Association or a Federal Home Loan Mortgage Corportion approved seller/servicer and an approved Federal Housing Administration mortgagee; and (c) The Lender shall agree to originate and service home mortgages at the lowest cost which is in the best interests of the mortgagor, which shall, in any event, be a fee of not more than one-half of one percent (1/2 of 1%) of the initial principal amount of the applicable home mortgage and an annual fee to service home mortgages of not more than one-fifth of one percent (1/5 of 1%) of the declining principal balance of the applicable home mortgage. Further information, together with appropriate application forms, may be obtained by interested lenders from City Hall, Planning Division, P. 0. Box 807, 9320 Base Line Road, Rancho Cucamonga, California. ATTEST: City Clerk 4. The City Clerk shall also cause a copy of such notice to be mailed to all lenders who she believes transacts business within the City of Rancho Cueamonga. PASSED, APPROVED, and ADOPTED this 6th day of February, 1985. Wright, Buquet, Mikels, Dahl, King AYES: NOES: None ABSENT: None Beverl~A. Authelet, City' Clerk