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What
it means for Lenders … |
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Benefits to lenders
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Good Source of Income. For each loan sold to MHDC, lenders receive a
2% Servicing Release Premium. For example, on a $125,000 loan, the
lender will earn a total of $2,500. |
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Non-Recourse sales. All loans are sold "servicing released" to our
Master Servicer, currently Countrywide Home Loans. |
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No forward placement risk. When these loans are originated, the rate
and fees paid are guaranteed, provided delivery takes place within the
reservation period. |
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CRA. Participation in the First Place program constitutes a CRA
eligible activity, in most cases. |
Borrower
advantages
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Only one application to be taken |
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Borrower applies at local lender |
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Allows lenders the opportunity to establish relationships with real
estate sales staff |
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No worries about predatory lending. MHDC regulates fees and audits
each loan file for excessive fees |
Program restrictions
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IRS regulations limit the maximum sales price for properties |
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No properties in 100-Year Flood Plains are eligible for financing |
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All applicants must be first time buyers, with some exceptions |
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Some restrictions may apply to the sale of the home
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IRS regulations limit the maximum income of applicants |
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