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Lender Agreement by clg17778


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									                                                                               Aha Housing
San Diego Regional (MCC)                                                       8130 La Mesa Blvd. PMB 806
Mortgage Credit Certificate                                                    La Mesa, CA 91942
                                                                               Phone 619-469-2002 Fax 619-469-2005
Program (619) 469-2002                                                         On the web:

                                 LENDER AGREEMENT 2011
        THIS AGREEMENT is made and entered into, with the contract period being February 1, 2011 through March 1,
2012, and is by and between The San Diego County Regional Mortgage Credit Certificate Program, (referred to as
("SDMCCP") and ________________________________________________________________________________
(hereinafter referred to as the "Lender").

W I T N E S E T H:

        WHEREAS, the Tax Reform Act of 1984 established the Mortgage Credit Certificate Program (hereinafter referred to
as the "MCC Program") as a means of assisting qualified individuals with the acquisition of new and existing single family
housing; and

        WHEREAS, pursuant to Chapter 1399, Statutes of 1985 Section 50197, et seq of the Health and Safety Code, local
issuers are authorized to issue MCCs and administer MCC programs; and

         WHEREAS, by resolution (R 94-146) adopted on April 26, 1994, the County of San Diego Board of Supervisors
established the Mortgage Credit Certificate Program, and directed staff to hire a contractor to administer the program
pursuant to applicable federal, state and local policies and procedures; and

       WHEREAS, the Lender wishes to participate in the MCC Program administered by the SDRMCCP in connection with
mortgage loans it will make available for the acquisition of new and existing single-family housing.

        NOW, THEREFORE, in consideration of the promises set forth herein, the parties agree as follows:

        1. The SDRMCCP hereby designates the Lender as its agent for receipt and processing of applications for MCCs.

         2. The Lender agrees to prepare its representatives to work on the MCC program by providing them with SDRMCCP
training and materials before assigning them to any work on the program.

         3. The Lender will make information regarding the MCC program available to potential borrowers. The Lender will
give the borrower a complete MCC information package at the time of applying for an MCC. The Lender will process and
review the application for any potential borrower in order to determine eligibility for the program.

         4. The Lender agrees to work cooperatively with the SDRMCCP to represent the mortgage credit certificate program
fairly and accurately to the borrower.

       5. The Lender will obtain from the borrower all documents and information required for the application for (and receipt
of) an MCC as directed by the SDRMCCP. The Lender will take the estimated tax credit into consideration when qualifying
the borrower for the first mortgage.

        6. The Lender will perform all investigation and verification that it would normally perform for underwriting a mortgage
not provided in connection with an MCC. The Lender will notify the borrower and the SDRMCCP in writing of any decision to
cancel processing for an MCC.

         7. The Lender will conduct such reasonable investigation as is necessary to certify that the borrower has satisfied all
requirements of the MCC program, including those imposed by temporary and permanent regulations issued pursuant to the
Internal Revenue Code and the SDRMCCP eligibility requirements.

         8. The Lender warrants that it is familiar with the Internal Revenue Code’s temporary and permanent regulations
applicable to the MCC program as well as those provisions of state law applicable to the MCC program and guidelines
established by the SDRMCCP. The Lender hereby agrees to comply with all provisions of applicable federal and state law,
and said regulations and guidelines.

         9. The Lender will charge a potential borrower applying for an MCC only those reasonable lending fees as would be
charged to a potential borrower applying for mortgages not provided in connection with an MCC. The Lender is to charge each
borrower an application fee as specified by the program administrator for processing each MCC. This is to be included in the
application package.

        10. The Lender will strive to achieve and maintain a high standard of quality in its MCC-related work and submissions
to the SDRMCCP. In the case of a repeatedly high error rate, the Lender will take immediate steps to remedy the problem.

                                                                                                                      March 2011
SDMCC                                                                                                        page 2

         11. The Lender agrees to pay to the program an annual enrollment fee plus any other warranted training fees or late
fines as described in the program manual.

       12. The Lender agrees not to contact the SDRMCCP for a status report on a submission until three days have
passed since the submission.

         13. The Lender Agrees to designate for each branch an "MCC Contact Person" who will attend at least one MCC
training session per year, and who will be responsible for circulating SDRMCCP correspondence to their branch's MCC-
related personnel in a timely manner. The lender also agrees to designate a contact responsible for remedying problems
related to late closing documentation.

         14. The Funding Lender agrees to keep complete files of each MCC-related loan for as long as possible, but not to
exceed six years; and to file IRS form #8329 annual report. Funding Lender accepts full responsibility for these requirements
irrespective of if and when the MCC loan is sold to another party.

         15. The Lender agrees to abide by the application timeline of the MCC program, including: (a) To submit MCC
applications only while escrow is open; (b) To wait until the MCC Commitment is issued before closing escrow; (c) To submit
any required closing documentation within 10 days of escrow closing; (d) To relate these timeline restrictions to the borrower
and to keep them informed of the progress of their application.

         16. The Lender hereby agrees that it will make a reasonable effort to forward to the SDRMCCP any information which
it may receive during the life of the mortgage loan which tends to indicate that misrepresentation was made in applying for an
MCC, or any information that may affect the MCC recipient's continued eligibility for an MCC.

         17. The Lender agrees to inform the SDRMCCP immediately of any changes to the information on the "Lender
Application Form", especially those changes relating to MCC Contact Persons and their replacements.

         18. This Agreement shall remain in full force and effect until terminated. The Lender may terminate this agreement,
without cause, upon sixty (60) days written notice to the SDRMCCP. Notwithstanding any such termination, the Lender shall
file any and all reports required to be filed with the Internal Revenue Service and shall maintain all records required to be
maintained by it pursuant to Section 25 of the Internal Revenue Code of 1986 and any regulations thereunder.

       The SDRMCCP may immediately terminate this Agreement and prohibit the Lender from participation in the MCC
program upon the Lender's failure to comply with the terms and conditions of this agreement and upon written notice by the
SDRMCCP. No amendment to this Agreement shall be effective unless in writing and signed by both parties hereto.

         THIS AGREEMENT is entered into as of the day and year written above, and is signed by a designated chief officer
of the lending company.

                 Lending Company:

           Application Submitted By:




This Lender Agreement, executed below by a representative of the San Diego County Regional MCC Program shall
serve as verification of the enrollment of the Lender in the program.

SD-MCC Program Representative:
                                                 Kathy Stone                                        Date:
                                             SD-MCC Program Director

This executed agreement is to be submitted to the MCC Program office with:

(1)   Completed Lender Application Form
(2)   Funding Lender Application Form Part II - (for Funding Lenders only)
(3)   Check for payment of applicable enrollment fee(s), made payable to “AHA, Inc.”
(4)   Mail to:
               Aha Housing
               8130 La Mesa Blvd. PMB 806
               La Mesa, CA 91942

                             YEAR 2011 LENDER APPLICATION FORM
                             County of San Diego Mortgage Credit Certificate Program

               This form must be updated each year by the Participating Lending Company
The County of San Diego welcomes local lenders to participate. “Lender” includes brokers, full service or wholesale
lending companies who wish to participate in the MCC Program. Enrolling companies must designate a "main branch" plus
any additional branches that will participate. Additional branches of that company who wish to participate will also be
required to enroll. If a company has separate retail and wholesale divisions, each division must enroll and participate as a
separate branch.

Please Note Program Revision: Please list one or two corporate contacts who will correspond with the Program office.
Public contacts are no longer to be listed. The Public will find contacts for your company branches on the new “ Enrolled
Lender” list posted on the web site.

Enrollment Fee Schedule                       Annual Fee                  Your application package should include:

New Lender (Wholesale or Retail)              $400.00                     1. A signed "Lender Agreement"
       (Corporate & Main branch)                                          2. Completed Lender Application Form
Annual Renewal (Corporate & Main)             $400.00                     3. Lender Application Form Part II if applicable
Additional Branches                             $25.00                    4. A copy of your business license
                                                                          5. Make check payable to “AHA, Inc.”
This is a new format. Please see explanation                                The following people represent this company for
above.                                                                      Program-related business and correspondence with
                                                                            the MCC program office. This contact information
Main Branch:                                                                will not be given to the public.

___________________________________                                         Printed Name
                                                                            email address
Choose Role: Broker/ Full Service/ Wholesale                                ______________________________________________
                                                                            Phone                           Fax
City                       State              Zip                           ______________________________________________

Additional Branches:                                                        City               State        Zip
Branch #1

______________________________________                                      Contact # 2
__________________________________________                                  Printed Name
Role ( Broker/ Full Service/ Wholesale)
                                                                            email address
City                       State              Zip                           ______________________________________________
                                                                            Phone                           Fax

Branch #2                                                                   ______________________________________________
                                                                            City               State        Zip

______________________________________                                      Name and signature of person completing this form:
Role ( Broker/ Full Service/ Wholesale)
__________________________________________                                  Printed Name
City                       State              Zip
Please include any additional branches on an                                signature
                                                                            Please send your complete application package to:
                                                                            County of San Diego MCC Program
Only individuals named on the Eligible Lender list on the
                                                                            8130 La Mesa Blvd. PMB 806
web site will be allowed to submit MCC applications.
                                                                            La Mesa, CA 91942
Eligibility includes those who have taken AHA MCC
training within the last year or who have submitted an
approved application within the last two years.
San Diego Regional (MCC)                                                                                 Aha Housing
                                                                                                         8130 La Mesa Blvd. PMB # 806
Mortgage Credit Certificate                                                                              La Mesa, CA 91942

Program (619) 469-2002                                                                                   Phone 619-469-2002 Fax 619-469-2005
                                                                                                         On the web:

                                      FOR FUNDING LENDERS ONLY
                                     San Diego (MCC) Mortgage Credit Certificate Program

                                           YEAR 2011
                                 LENDER APPLICATION FORM, PART II
                          This form must be updated each year by the Participating Lender

Program Contact For Closing Affidavits
The San Diego MCC Program is designed so that nearly all documentation is submitted in the initial
package by the originating lender or broker. Upon approval the program issues a Commitment and
a Closing Affidavit which is tailored to the loan.
It is the funding lender's responsibility to ensure that: 1.) the Closing Affidavit is executed by both the
buyer and the lender at closing; 2.) that the closing date is put on the affidavit; and 3.) the affidavit is
returned to the program office within ten days after the closing.

Without the executed Closing Affidavit, the MCC Program cannot issue the Mortgage Credit
Certificate to the buyer. Therefore we are strict about the MCC closing procedures. If the lender
has closed an MCC loan and not returned the affidavit within ten days, the lender is fined $150, and
suspended from doing future MCCs until the pending case is resolved.

Please carefully consider which person/position in your company should be responsible for late or
missing Closing Affidavits and related fines. Please put the title & name of the person, and how we
can contact them. Thank you.

Billing information for Late Closing Affidavits and related fines:


Name:                                                                                                         Phone No. (                     )             __

Company Name:                                                                                                  Fax No. (                  )                     _




Regarding IRS Form 8329

At the end of each calendar year, every funding lender who has closed one or more MCC-related
loans must file Form 8329. This form requires the Lender to list each MCC loan made in the previous
year; sorted by the funding allocation of that MCC. Therefore the Lender must keep accurate
records of all MCC loans. The MCC processing software from Affordable Housing Applications
automatically prepares this report for the Lender. Lenders who do not use the software may request
that AHA fax them a report to help the Lender verify their own records. Requests should be made to
AHA no later than January 15th, of each year for record information from the previous year.

By signing below, the Lender acknowledges their company’s responsibility to complete IRS
Form 8329, each year.

Name:                                                                                                  Phone No. (                    )                ________

Title:                                                                                                 Fax No. (                  )                      _ _____

Signature:                                                                                             Date:


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