Item L1BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: May 16, 2012 Division: Monroe County Housing Authority
Bulk Item: Yes x No Department: MC SHIP PROGRAM
Staff Contact Person/Phone #: J. Manuel Castillo, Sr., Executive Director
AGENDA ITEM WORDING:
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY,
FLORIDA AUTHORIZING THE MONROE COUNTY STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) PROGRAM ADMINISTRATOR TO EXECUTE SHIP MORTGAGE
SUBORDINATION DOCUMENTS UNDER CERTAIN CONDITIONS FOR THE PURPOSE OF
ALLOWING PROGRAM PARTICIPANTS TO REFINANCE EXISTING FIRST MORTGAGES;
AND PROVIDING FOR AN EFFECTIVE DATE.
ITEM BACKGROUND:
Resolution 078-2002 authorized the SHIP Administrator to execute subordination documents on behalf
of the Monroe County SHIP Program when certain conditions had been met. This 2012 Resolution
will authorize the SHIP Program Administrator to execute SHIP subordination agreements for
"responsible" borrowers utilizing the HARP 2.0 Program to obtain a lower interest rate on their first
mortgage and therefore enhance the SHIP Program's second mortgage portfolio.
PREVIOUS RELEVANT BOCC ACTION:
BOCC Resolution 078-2002.
CONTRACT/AGREEMENT CHANGES:
NIA
STAFF RECOMMENDATIONS:
Approval.
TOTAL COST: N/A INDIRECT COST:
DIFFERENTIAL OF LOCAL PREFERENCE:
COST TO COUNTY:
BUDGETED: Yes No x
SOURCE OF FUNDS
REVENUE PRODUCING: Yes No x AMOUNT PER MONTH Year
APPROVED BY: County
DOCUMENTATION:
DISPOSITION:
Revised 7/09
Atty OMB/Purchasing Risk Management
Included x Not Required_
AGENDA ITEM #
RESOLUTION NO. , 2012
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA AUTHORIZING THE MONROE COUNTY
STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM
ADMINISTRATOR TO EXECUTE SHIP MORTGAGE SUBORDINATION
DOCUMENTS UNDER CERTAIN CONDITIONS FOR THE PURPOSE OF
ALLOWING PROGRAM PARTICIPANTS TO REFINANCE EXISTING
FIRST MORTGAGES; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Monroe County Board of County Commissioners by Resolution
078-2002, dated February 13, 2002 authorized the Monroe County SHIP
Administrator to execute mortgage subordination documents for existing Monroe
County SHIP loans when the following conditions were present:
(a) The proposed primary mortgage loan has a rate or other terms that is an
improvement in the rate or terms of the existing primary mortgage loan.
(b) The amount of the proposed primary mortgage loan does not exceed the sum
of the existing mortgage loan payoff and the closing costs as documented on a
proposed HUD-1 Settlement Statement.
(c) The sum of the proposed primary mortgage and the existing SHIP mortgage
loan does not exceed 105% of the value of the property as reflected on a
property appraisal; and
WHEREAS, the Federal Home Finance Agency's Home Affordable Refinance
Program (HARP) commenced in April, 2009; and
WHEREAS, the HARP Program's purpose was to permit first mortgage loans
backed by Fannie Mae or Freddie Mack who were "under water" to be refinanced at a
lower interest rate without Private Mortgage Insurance (PMI); and
WHEREAS, the initial HARP Program required the applicants to be "responsible
borrowers" and did not allow refinancing for borrowers who owed more than 125%
of what their homes were worth; and
WHEREAS, effective March, 2012, the Federal Home Finance Agency approved
the HARP 2.0 Program which removes the 125% cap for clients who are considered
"responsible borrowers"; and
WHEREAS, the HARP 2.0 Program and its underwriting criteria will enhance
the SHIP Program's second mortgages portfolio by providing interest rate relief to
responsible borrowers.
NOW, THEREFORE, BE IT RESOLVED, by the Board of County
Commissioners of Monroe County Florida, that the County hereby authorizes:
1. The SHIP Program Administrator to execute mortgage subordination documents
for existing Monroe County SHIP Loans that are being refinanced utilizing the
Federal Home Loan Agency's HARP 2.0 Program.
PASSED AND ADOPTED by the board of County Commissioners of Monroe
County, Florida at a regular meeting of said Board on the 160' day of May, 2012.
Mayor David Rice
Mayor Pro Tern Kim Wigington
Commissioner Heather Carruthers
Commissioner George Nugent
Commissioner Sylvia Murphy
SEAL:
ATTEST: DANNY L. KOLHAGE, Clerk BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA
BY:
Deputy Cleric
Approved as to legal sufficiency:
Date:
BY:
Mayor David Rice
RESOLUTION NO. 078-2002
A RESOLUTION AUTHORIZING THE MONROE COUNTY'S STATE
HOUSING INITIATIVES PARTNERSHIP (SHIP) ADMINISTRATOR
TO EXECUTE SHIP MORTGAGE SUBORDINATION DOCUMENTS
UNDER CERTAIN CONDITIONS FOR THE PURPOSE OF
ALLOWING THE REFINANCE OF EXISTING PRIMARY
MORTGAGE LOANS AT IMPROVED TERMS
WHEREAS, the Special Programs Office, Monroe County Housing Authority is the County's
program administrator for the State Housing Initiatives Partnership (SHIP) Program, with a fiduciary
responsibility to act in the best interest of Monroe County; and,
WHEREAS, the Director of the Special Programs Office is designated as Monroe County
SHIP Administrator; and,
WHEREAS, the Monroe County SHIP Program has made subordinate mortgage loans under
the First Time Homebuyers Program annually since 1994 resulting in over 177 mortgage loans; and,
WHEREAS, the Florida Housing Finance Corporation has adopted the criteria set forth below
when considering a subordination request from mortgage borrowers under the Corporation's HOME
Single Family Programs; and,
WHEREAS, presently the time required to secure a Mortgage Subordination of an existing
Monroe County SHIP mortgage is greater than time available to borrowers primary mortgage loan
commitment/rate lock; and,
WHEREAS, the current process for approval of SHIP Mortgage Subordination discourages
SHIP Mortgagees from trying to secure improved primary mortgage terms
NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of
Monroe County Florida tat Monroe County hereby:
THE Monroe County SHIP Administrator is hereby authorized to execute Mortgage Subordination, in
the form attached hereto as Exhibit "A' of existing Monroe County SHIP mortgage loans when the
following conditions are present:
Y
(a) The proposed primary mortgage loan has a rate or other terms that is an improvement in the rate or
terms of the existing primary mortgage loan,
(b) The amount of the proposed primary mortgage loan does not exceed the sum of the existing
mortgage loan payoff and the closing costs as documented on a proposed HUD-1 Settlement
Statement.
(c) The sum of the proposed primary mortgage and the existing SHIP mortgage loan does not exceed
105% of the value of the property as reflected on a property appraisal.
Page 1 of 2
Upon execution and recording of all such Mortgage Subordination shall be forwarded to and retained
by the Monroe County Clerk of Court.
PASSED AND ADOPTED, by the Board of County Commissioners of Monroe County, Florida at a
regular meeting of said Board on the 13th day of February 2002.
Mayor McCoy Yes
.Mayor Pro Tem Spehar Yes
S
Neugent Yes
Williams Yes
elson Absent
L. KOLHAGE, Clerk!
D.G
BOARD OF CqVNTY COMMISSIONERS
OF MONROE , FLORIDA
By:
Charles "Sonny" McCoy, Mayor
APPROVED AS TO FQWA
Approved as to farm and legal sufficiency A e6AL sU !
UZANN A, iitlT ON
DATE. l
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