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CONTRACT NO. K-1213-79: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND MCCLAIN BANK TO SUBORDINATE A LIEN REGARDING FUNDS FROM THE HOME PARTNERSHIP PROGRAM FOR PROPERTY LOCATED AT 1424 CHAMBERS STREET.
ACTION NEEDED: Motion to approve or reject Contract No. K-1213-79 with McClain Bank; and, if approved, authorize the execution of the contract.
ACTION TAKEN: _________________________________________
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BACKGROUND: In December 2008 the City of Norman HOME Partnership Program provided $5,000 as downpayment assistance to Samir A. Alawazzi for the purchase of a home at 1424 Chambers Street as a part of the NCRC Homebuyer Program. The NCRC Homebuyer Program is operated in conjunction with the Norman Community Reinvestment Council (NCRC), a 501(c)(3) corporation that is comprised of Norman banking institutions providing assistance to lower income citizens of Norman. Five hundred forty-two (542) such loans have been made since the program was initiated in 1995 to provide down payment assistance and closing costs to income-qualified Norman citizens in the purchase of their first home.
As a condition of funding, a lien was placed on the property and was filed as a subordinate mortgage to the primary mortgage on the property. Any modification of the primary mortgage requires resubordination of the lien. The program does not require repayment of the loan as long as the applicant maintains their home as their primary residence for five years; and at the end of five years the subordinate mortgage is released.
DISCUSSION: Approval of the request for subordination of the lien on 1424 Chambers Street would allow the owner to secure a loan to refinance the primary mortgage that will provide a lower interest rate to reduce the house payment by $274.11 per month. Documentation from McClain Bank including a Certification of Mortgage Loan Refinancing, Good Faith Estimate, and a Truth in Lending Disclosure Statement were provided. The Subordinati...
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