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CONTRACT NO. K-1213-152: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND REPUBLIC BANK AND TRUST FOR SUBORDINATION OF A LIEN AS AGREED UPON UNDER THE HOME PARTNERSHIP PROGRAM FOR PROPERTY LOCATED AT 1508 PINEWOOD DRIVE.
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BACKGROUND: In March 2010 the City of Norman HOME Partnership Program provided $5,000 as downpayment assistance to Vernon E. Hooks for the purchase of a home at 1508 Pinewood Drive 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. Almost five hundred fifty (550) 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 Pinewood Drive would allow the owner to secure a loan to refinance the primary mortgage that will provide a lower interest rate and reduce the term of the loan from thirty years to fifteen years. Documentation from Republic Bank and Trust including a Certification of Mortgage Loan Refinancing, Good Faith Estimate, and a Truth in Lending Disclosure Statement were provided. The Subordination Agreement that will be filed with the new primary loan is attached. In accord with the adopted City of Norman Housing Handbook, these documents prove that all fund...
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