Resolution - 6789I
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CJ
RESOLUTION NO. 6789
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA
ESTABLISHING CRITERIA FOR PARTICIPATION BY LENDERS IN THE
CITY OF WEST COVINA HOME MORTGAGE FINANCING PROGRAM
WHEREAS,.the City Council of the City of West Covina (the "City")
proposes to undertake 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 revenue bonds pursuant to the Act to provide funds for
the program;
WHEREAS, the Act requires that home mortgages to be 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;
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 by the City Council of the City of West
Covina as follows:
1. A Lender shall be eligible to participate in the Program of the
City if the 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;
(b) The Lender shall be a Federal National Mortgage Association or
a Federal Home Loan Mortgage Corporation approved seller/servicer; 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 (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-fourth of one percent (4 of 1%) of the declining
principal balance of the applicable home mortgage.
2. 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 San Gabriel Valley Tribune
3. Such notice shall be substantially in the following form:
NOTICE IS HEREBY GIVEN by the City Council of the City,of West Covina
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 not to exceed $2,900,000 of Home Mortgage
Revenue Bonds to be issued to provide 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 California or by cities,
redevelopment agencies or other counties within the State;
(b) The Lender shall be a Federal National Mortgage
Association or a Federal Home Loan Mortgage Corporation
approved seller/servicer; 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 (Z 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-fourth of one
percent (4 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 Rod Gunn & Associates,
1278 East Center Court Drive, Suite One, Covina, California 91724.
/S/ Helene Mooney
City Clerk
City of West Covina
4. The City Clerk shall also cause a copy of such notice to be mailed
to all lenders who were interested in participating in the recent home mortgage
revenue program of the West Covina -Baldwin Park Mortgage Authority.
ATTEST:
5. This Resolution shall become effective immediately upon adoption.
6. The City Clerk shall certify to the adoption of this resolution.
APPROVED AND ADOPTED THIS 28th day of November 1983•
MAYOR
City Clerk
I HEREBY CERTIFY that the foregoing resolution was duly adopted by
the City Council of the City of West Covina at a regular meeting thereof held
on the 28th day, of November ,1983, by the following vote of the Council:
AYES: Councilmen: Tice, Tennant, Shearer, Bacon
NOES: Councilmen: None
ABSENT: Councilmen: Chappell
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City C erk
APPROVED AS TO FORM:
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City Atto ney