LOS BanosAt the Crossload of alifornia

www.losbanos.org

AGENDA

NEIGHBORHOOD STABILIZATION PROGRAMHOMEBUYER ASSISTANCE COMMITTEE MEETING

CITY HALL, CONFERENCE ROOM B520 J Street

Los Banos, California

NOVEMBER 4, 2013

Si requiere asistencia especial para atender 0 participar en esta junta por favor lIame a la oficinade la Secretaria de la ciudad al (209) 827-7000 a 10 menos de 48 horas previas de la junta.

La CUidad de Los Banos cumple con la Acta de Americanos con Deshabilitad (ADA) de 1990.

*Cualquier escritura 0 los documentos proporcionaron a una mayoria del Homebuyer Assistance Commit/ee

respecto a cualquier articulo en este orden del dia sera hecho disponible para lainspeccion publica en la reunion y en la oficina del City Manager de la ciudad en City Hall, 520 Calle de J, Los

Banos, California durante horas de oficina normales. Ademas, tales escrituras y los documentospueden ser anunciados en el website de la ciudad en www.losbanos.org.

1. CALL TO ORDER. 9:00 AM

2. ROLL CALL:

Bento-Jurado _, Brazil __, Elms_

3. CONSIDERATION OF APPROVAL OF AGENDA.

4. PUBLIC FORUM. (Members of the public may address the HomebuyerAssistance Committee Members on any item of public interest that is within thejurisdiction of the Homebuyer Assistance Committee; includes agenda and non-

Los Banos Neighborhood Stabilization Program Homebuyer Assistance Committee Agenda - November 4, 2013 Page 1 of 2

agenda items. No action will be taken on non-agenda items. Speakers are limitedto a five (5) minute presentation.)

5. CONSIDERATION OF APPROVAL OF THE MINUTES FOR THE SEPTEMBER28,2012 HOMEBUYER ASSISTANCE COMMIITEE MEETING.

Recommendation: Approve the minutes as submitted

6. CONSIDERATION OF APPROVAL OF LOAN # NSP-2013-01

Recommendation: Direction from the Committee on how to proceed.

7. ADJOURNMENT.

I hereby certify under penalty of perjury under the laws of the State of California that the foregoingagend as posted on the City all bulletin board not less than 72 hours prior to the meeting.

Dated this 1st day of November, 2013

Los Banos Neighborhood Stabilization Program Homebuyer Assistance Committee Agenda - November 4. 2013 Page 2 of 2

ITEM #3

Homebuyer Assistance Committee Meeting Minutes Neighborhood Stabilization Program 520 J Street, Los Banos, CA 93635

September 28, 2012 - 10:00 a.m. Committee Members Present Staff Members Present Martha Brazil, City of Los Banos Jeanette Garcia, MCAG Paula Fitzgerald, City of Los Banos

1. Introduction – Jeanette Garcia called the meeting to order at 10:03 a.m.

2. Verbal Communications

None

3. Minutes: Request to approve the September 7, 2012 meeting minutes Paula Fitzgerald moved to approve the September 7, 2012 meeting minutes.

Seconded by Martha Brazil. Motion carried unanimously.

4. Loan # NSP-2012-01 Jeanette Garcia provided a summary of the revised homebuyer applicants’ information. Unemployment income could not be calculated for substantiating the original amount of the primary loan, which the lender has reduced by nearly $10,000. In addition, the primary lender is requiring that the domestic partner’s income be calculated into total household income. Since the applicant’s domestic partner was not originally on the loan, she must complete homebuyer education prior to close of escrow. Staff located an online program offered by Self-Help Enterprises that will provide the HUD approved certification necessary. Staff was also informed that the original applicant paid off another debt, which further reduces the applicants’ back end ratio to 34% Martha Brazil moved to approve the revised loan with a soft second loan of up to $33,000 for the applicants to purchase 611 Park Warren, but stipulating the co-applicant complete the homebuyer education requirement prior to the close of escrow. Seconded by Paula Fitzgerald. Motion carried unanimously.

ITEM #3 5. Other Business

Martha Brazil informed Jeanette Garcia that Habitat staff dropped of the Santa Venetia home file at City Hall. Jeanette will review the file to ensure it is complete. 6. The Meeting was adjourned at 10:25 p.m.

Agenda Staff Report

TO: Neighborhood Stabilization Program Homebuyer Assistance Committee FROM: Sandra Benetti, Payroll Technician/Deputy City Clerk DATE: November 4, 2013 SUBJECT: Loan #NSP-2013-01 TYPE OF REPORT: Non Consent Agenda ______________________________________________________________________ Recommendation: The following options for action that are recommended to the Committee are:

A. Approve the Neighborhood Stabilization Program (NSP) loan for the property at 203 N. Santa Rosa Street with a maximum loan amount of $10,000.

B. Approve the NSP loan for the property at 203 N. Santa Rosa Street with a maximum loan amount of $10,000 with stipulations.

C. Deny the NSP loan for the property at 203 N. Santa Rosa Street. Discussion: Applicant Background: The applicant is a married man with three children. The applicant has been employed full-time by the City of Los Banos since June 26, 2006 and has averaged 86.67 regular hours per semi-monthly pay period, plus has received occasional overtime pay.

Eligibility The applicants' projected annual household income is currently $36,912 with a monthly income of $3,076. The applicant's 2012 reported income was $32,514. The 2013 income limit set by the HOME program for a five-person household is $74,250. The first application for the purchase of this NSP assisted home that the City received was from an income eligible applicant who is employed by the City of Los Banos in the Public Works Department, working in the capacity as a Maintenance Worker in the Streets Division. In the City of Los Banos, the Public Works Department is separate and apart from the City Manager’s Office, who acts as the Program Operator. Pursuant to 24 C.F.R. 570.611(b), the general rule is that employees of a grantee of funding who (i) exercise or have exercised any functions or responsibilities with respect to Community Development Block Grant Program (CDBG) or NSP activities, or (ii) who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may not obtain a financial interest or benefit, for themselves or their immediate family members, from a CDBG or NSP assisted activity. In accordance with 24 C.F.R. Section 570.611 of the U.S. Department of Housing and Urban Development’s (HUD) regulations governing the CDBG and NSP, the City of Los Banos disclosed this potential conflict of interest on September 4, 2013. The City of Los Banos believed that any potential conflict of interest involving the applicant’s participation under the NSP should be waived by HCD and requested an exception to the conflict of interest provisions per 24 C.F.R. 570.489(h)(4) for the following reasons:

The applicant is eligible for funding under the NSP and the exception permits him to receive generally the same benefits as are being made available to other eligible applicants. Further, the applicant has no responsibilities or role in the administration of the City’s CDBG Program or NSP, nor is he in the position to participate in the NSP’s or CDBG Program’s decision-making process, or gain any inside information with regard to such program activities; and he has been required to go through the same application process as other applicants, receiving no preferential treatment based on his City employment.

The City Attorney has reviewed all documentation for the applicant’s application and issued a legal opinion that his application does not violate local, State, or Federal laws, rules or administrative regulations. An opinion letter by the City Attorney was submitted to HCD to request an exception in accordance with program regulations, and the exception from the State was granted on September 11, 2013.

Homebuyer Education NSP requires that applicants attend an eight-hour United States Department of Housing and Urban Development (HUD) approved homebuyer education course. The applicant completed this requirement on June 22, 2013. Down payment The Federal Housing Administration (FHA) requires homebuyers to provide a minimum down payment of 1.75%. For this home, priced at $105,000, that amount is $1,837.50. The applicant has already deposited $1,000 toward the purchase of the home and will pay the remaining down payment of $837.50 prior to the close of escrow. Credit Score and Debt The City ordered a credit report for the applicant whose credit score was 725 per Experian. The applicant will be paying 25% of total household income toward combined mortgage debt, and 33% of income toward total debt. His significant monthly payments are currently $820 for rent and $85 towards credit card/loan debt. Total mortgage payments, including mortgage insurance and property taxes, are anticipated to be $751.53 for the primary loan and $26.82 for the City's second loan, for a cumulative mortgage cost of $778.35. HOME DESCRIPTION Location This City-owned NSP home is a 1,067 square foot, three-bedroom, two-bathroom unit on a 7,727 square-foot lot located at 203 N. Santa Rosa Street. It was built in 1962 and lies within the city limits in Census Tract 22.02 (NSP Target Area #1). Appraisals The appraisals, conducted by Giraldin Appraisals on May 15, 2013 and by Golden Valley Appraisals on October 8, 2013, both gave the home a fair market value of $115,000. Hazard Insurance Hazard insurance is required to be paid as a part of the primary loan monthly payment. Lead-based Paint The house was built in 1962, before the use of lead based paint was discontinued. Lead-based Paint and Lead-Based Paint Hazards Disclosure, Acknowledgment and Addendum has been signed by the City as seller and acknowledged by the signature of the buyer. The buyer has also received a copy of the pamphlet “Protect Your Family from Lead in Your Home.” Inspections A pest inspection was performed when the City received the home via Deed in Lieu of Foreclosure, and all necessary work has been completed.

PRIMARY AND CITY LOAN TERMS Loan Terms The primary loan is a 4.75% interest, 30-year loan. The City's loan is a 0% interest, 30-year loan. The program guidelines require that the cumulative loan-to-value (CLTV) ratio not exceed 100% of the sales price plus a maximum of up to 6% of the sales price to cover closing costs. The actual CLTV ratio will be 103%, thus within program guidelines. Anticipated Homebuyer Assistance Home Sale Price $105,000.00 Closing Costs $4,988.80 Adjusted Purchase Price $109,988.80 Homebuyer's 1.75% Down Payment $1,837.50 Home buyers total loan debt $108,096.60 Primary lender loan for the home purchase $98,443.00 Anticipated City assistance $9,653.60 Monthly Housing payment $751.53 (1st) + $26.82 (City 2nd) = $778.35 NOTE: Lender monthly payment includes PITI, insurance and property taxes.

LOS Banos City Hali520 J StreetLos Banos. CA 93635

Phone: (209) 827-7000Fax: (209) 827-7010www.losbanos.org

September 5,2013

California Department of Housing & Community Development (HCD)Community Development Block Grant ProgramAttn: Diane J. Moroni2020 West EI Camino Avenue, Suite 500Sacramento, CA 95833diane.moroni@hcd.ca.govSent via e-mail and U.S. Postal Service

Subject: Exception to Conflict of Interest Provision

Dear Ms. Moroni,

The City of Los Banos is respectfully requesting an exception to the conflict of interestprovision of the Code of Federal Regulations, specifically 24 C.F.R. 570.611 in the saleof a Neighborhood Stabilization Program (NSP) assisted home, located at 203 N. SantaRosa Street, Los Banos, California.

On November 23, 2009 the City's sub recipient, Habitat for Humanity, purchased theproperty located at 203 N. Santa Rosa Street, Los Banos, California. Thereafter, theproperty was rehabilitated by Habitat for Humanity and on December 10, 2010 was soldto the former owner/borrower. The purchase of the property was financed by a Note andDeed of Trust originally held in the name of Habitat for Humanity. Pursuant to thedirection of HCD, the Note and Deed of Trust was assigned to the City of Los Banos onAugust 15, 2012.

The former owner/borrower went into default under the terms of the Note and Deed ofTrust. City staff met with the former owner/borrower in an attempt to assist the formerowner/borrower in curing the default and bringing the payments current. After meetingwith the former owner/borrower, the City was informed that the former owner/borrowerhad decided to move from the area for personal reasons and intended on abandoningthe property.

The City received title of the property through the acceptance of a Deed in Lieu ofForeclosure dated May 1, 2013.

The City advertised the acceptance of applications for the purchase of this property inthe Los Banos Enterprise and the Merced Sun-Star and contacted those individualswho were put on a waiting list to receive information as additional properties becameavailable through NSP to inform them of the current opportunity. A total of three (3)applications were date/time-stamped and received by the deadline which was 5:00 p.m.,Friday, August 2,2013.

The first application for the purchase of this home that the City received was from, an income eligible applicant who is employed by the City of Los

Banos in the Public Works Department, working in the capacity as a Maintenance

Worker in the Streets Division. In the City of Los Banos, the Public Works Department isseparate and apart from the City Manager's Office, who acts as the Program Operator.

In accordance with 24 C.F.R. Section 570.611, the City of Los Banos must disclose thispotential conflict of interest.

The enclosed Public Hearing notice was published in the Los Banos Enterprise onFriday, August 23, 2013 to disclose the potential conflict of interest to the public. Thepublic hearing was held on Wednesday, September 4, 2013 during a regular CityCouncil meeting, in which the City Council took public comment. Please note that noone spoke against the City requesting an exception from HCD for the sale of this NSPhome to Mr. Castellanos.

The City believes that any potential conflict of interest involving 'participation under the NSP should be waived by HCD and is requesting an exception tothe conflict of interest provisions per 24 C.F.R. 570.489(h)(4) for the following reasons:

is an eligible applicant for funding under the NSP and theexception will permit him to receive generally the same benefits as are beingmade available to other eligible applicants. Further, has noresponsibilities or role in the administration of the City's CDBG Program or NSP,nor is he in the position to participate in the NSP's or CDBG Program's decision­making process, or gain any inside information with regard to such programactivities; and he has been required to go through the same application processas other applicants, receiving no preferential treatment based on his Cityemployment.

The City Attorney has reviewed all documentation for ' application andissued a legal opinion that ' application does not violate iocal, State, orFederal laws, rules or administrative regulations. The City Attorney's opinion letter isenclosed.

Regards,

~,~City Manager

SC/sb

Enclosures

cc: William A. Vaughn, City AttorneySonya Williams, Finance DirectorMartha Brazil, City Treasurer/Accountant IISandra Benetti, Payroll Technician

CITY OF LOS BANOSNOTICE OF PUBLIC HEARING

TO RECEIVE PUBLIC COMMENT ONPUBLIC DISCLOSURE OF CONFLICT OF INTEREST

WHERE: City Council Chambers520 J StreetLos Banos, California

WHEN: September 4, 20137:00 PM

In accordance with Federal Regulations published for Title 24, Housing and UrbanDevelopment, which governs the funding sources of the Community Development Block Grantand the Neighborhood Stabilization Program (NSP) (Part 570), the City of Los Banos isdisclosing the following conflict:

The City has received an application for assistance to purchase an NSP home fromwho is an employee of the City of Los Banos in the Public Works Department

working in the capacity as a Maintenance worker in the Streets Division.

A conflict of interest may exist and an opinion letter by the City Attorney will be submitted tothe Department of Housing and Community Development to request an exception inaccordance with program regulations. Public comment will be taken during a public hearing atthe regular meeting of the Los Banos City Council on Wednesday, September 4, 2013 at 7:00p.m. in the Council Chambers at Los Banos City Hall located at 520 J Street, or as near aspossible thereafter, at which time and place interested persons may appear and be heardthereon. Questions regarding the above-referenced item may be directed to Sandra Benetti,Payroll Technician, at City Hall, 520 J Street or at (209) 827-7000 ext. 148.

All interested persons will be given an opportunity to comment on this item at the PublicHearing. In addition, written comments may be submitted to the City Council at or prior to thehearing, mailed to 520 J Street, Los Banos, CA 93635, Attention: Lucy Mallonee, CityClerk/Administrative Services Director. Please reference hearing title and date of hearing inany correspondence. If no comments are received prior to or on the above date, it will beassumed that no comments are being offered.

It is the intention of the City to comply with the Americans with Disabilities Act (ADA). If yourequire special assistance beyond what is normally provided, the City will attempt toaccommodate you in every reasonable manner. Please contact the City Clerk's Office at (209)827-7000 at least 48 hours prior to the meeting to inform us of your particular needs.

THE CITY OF LOS BANOS

SANDRA BENETTIPAYROLL TECHNICIAN

Legal August 23, 2013

Law Offices of

WILLIAM A. VAUGHN

Telephone

209·826·3531

525 J Street, Suite ALos Banos, CA 93635

August 26, 2013

Facsimile

209-826·2431

Diane J. MoroniDepartment of Housing and Community DevelopmentCommunity Development Block Grant Program2020 West El Camino Avenue, Suite 500Sacramento, CA 95833

RE: City of Los Banos Neighborhood Stabilization Program (NSP)City Attorney Opinion Letter

Dear Ms. Moroni:

I write to you as City Attorney for the City of Los Banos, California. The purpose of this letter isto provide an opinion concerning a possible conflict of interest in the sale and financing of anNSP home to an employee of the City of Los Banos. Specifically, I am providing an opinionregarding the question of whether the sale of an NSP home and the providing of financialassistance through the NSP to violates_State or local law.

I have not undertaken any independent investigation of the following facts and base my opinionon these facts only:

a. The City of Los Banos has acquired the residence at 203 North Santa Rosa, Los Banos,California with NSP funds;

b. is an employee of the City of Los Banos in the capacity ofmaintenance worker in the Public Works Department;

c. has applied for financial assistance to purchase the residence at 203North Santa Rosa through the City's NSP;

d. The NSP is administered by the Los Banos Administrative Services Department; ande. has not exercised any functions or responsibilities with respect to the

NSP and is not in a position to participate in a decision making process or gain insideinformation with regard to the NSP.

Be advised that to the best of my knowledge and belief, no local, state or federal laws, rules oradministrative regulations will have been violated if the proposed sale and financing of the NSPhome to is consummated.

Sincerely,

~City Attorney

WAV/dma

STATE OF CALIFORNIA - BUSINESS CONSUMER SERVICES AND HOUSING AGENCY

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENTDIVISION OF FINANCIAL ASSISTANCEFEDERAL PROGRAMS BRANCHCommunity Development Block Grant Program2020 W. EI Camino Ave, Suite 500Sacramento, CA 95833P O. Box 952054, MS 500Sacramento, CA 94252-2054(855) 333·CDBG (2324) I FAX (916) 263-2762

September 11, 2013

Mr. Steve CarriganCity ManagerCity of Los Banos520 J StreetLos Banos, CA 93635

RE: CDBG Agreement No. 09-NSP1-6063Exception to Potential Conflict of Interest

Dear Mr. Carrigan:

EDMUND G BROWN JR Governor

Thank you for submitting your request for exception dated September 5, 2013, regardingthe conflict of interest (COl) issue on Agreement No. 09-NSP1-6063. The Departmentalso has received the letter of August 26, 2013, from the Law Offices of William A.Vaughn, the City Attorney for Los Banos. Both letters conform to the Department'srequirements.

Based on our review of the information provided, the Department hereby issues thisexception under 24 CFR 570.489, for the sale of an NSP1 property to

, a Los Banos Public Works employee.

If you have questions or need further assistance, you may contact Leticia Johnson,CDBG Program Manager, at (916) 263-2186 or leticia.johnson@hcd.ca.gov or CDBGProgram Representative, Diane Moroni, at (916) 263-1675, or diane.moroni@hcd.ca.gov.

Thomas BrandeberryCDBG Program Section Chief

cc: William A. Vaughn, City AttorneySonya Williams, Finance DirectorMartha Brazil, City Treasure/Accountant \ISandra Bennetti, Payroll TechnicianLeticia Johnson, CDBG Program ManagerDiane Moroni, CDBG Program Representative

f3249 02/12/11 sssm pd:10/30/13

2335133-3249-1-1-173

Date Prepared: October 30, 2013 Loan Number: 2335133

Approximate Loan Cost Illustration

Loan Officer: Karole Harris Email: karole.harris@academymortgage.comPhone Number: (209)829-0105 Branch Name: 456 - Los Banos NMLS Id: 176479 Branch Phone: (209)829-0105 Product Type: FHA Purchase

APPROXIMATE COST OF CLOSING FEES

Appraisal Fee $450.00

Credit Report Fee $25.00

Inspection Fee $150.00

Loan Processing Fee $500.00

Underwriting Fee $465.00

Document Prep Fee $100.00

Hazard Insurance $492.00

Hazard Insurance $123.00

County Property Taxes $464.60

Aggregate Adjustment ($164.00)

APPROXIMATE TOTAL OF FUNDS NEEDED TO CLOSE

APPROXIMATE TOTAL MONTHLY PAYMENT

less Total Loan Amount

Purchase Price/Total Liens

less Secondary FinancingAmount

plus Mortgage Insurance orFunding Fee

plus Approximate ClosingFees Pd by Borrower

Interest Rate

APR

Maturity Term

Principal & Interest (or InterestOnly payment)

Other Financing (P&I)

Real Estate Taxes

Mortgage Insurance (if applicable)

$1,171.80

$4,988.80

4.750%

6.221%

$513.53

$0.00

$92.92

$41.00

$0.00

$104.08

$1,920.33

1.75%

30 yrs360 mos

$105,000.00

less Earnest Money/Credits $1,215.00

Down Payment

$98,443.00

$6,412.50

$1,693.13

$3,817.00plus Approximate Pre-paidItems/Reserves

$1,171.80

less Borrower's closing cost paid by Seller $3,241.10

$1,837.50

Insurance

Homeowners Association (if applicable)

Other $0.00

$751.53

Total Approximate Funds needed to close

Total Approximate Monthly Payment

Total Approximate Cost of Prepaid Interest and Escrows

Total Approximate Cost of Settlement Charges

less POC feespaid by Borrower $450.00

APPROXIMATE COST OF PREPAID INTEREST AND ESCROW/RESERVES

$3,817.00Total Approximate Cost of Closing Fees

Interest for 20 days @ $12.81 per day $256.20

This is an example of the charges you may incur to close a mortgage loan of this type. This is not a Good Faith Estimate of Closing Costsor a Truth-In-Lending Disclosure. Once you apply for a loan, by providing us all required application information including a propertyaddress, you will be given a binding Good Faith Estimate of Closing Costs and a Truth-In-Lending disclosure. This is not a rate lock. Tolock the interest rate we must have a complete application with all supporting documents including a copy of the real estate contract andyour express request to lock your rate and fees. This is not a commitment to lend. Restrictions Apply. This is not a pre-approval orpre-qualification. Closing and settlement costs, reserve deposits, interest rate and APR are subject to change. Equal housing lender.

Karole Harris Date

{ DS}Borrower: Date

Settlement or Closing $552.00

Notary Fee $200.00

Lenders Title Insurance $320.00

Owners Title Insurance $635.00

Title Wire/Courier/Email Fee $300.00

Credit Owners Title Policy ($42.00)

Recording Fee $162.00

Credit Transfer Tax ($115.50)

Transfer Tax $115.50

4> OMB No. 2502-0265

8. MORTGAGE INS. CASE NO.:

6. FILE NUMBER: 7. LOAN NUMBER13-00797-KLR 2335133

LOAN

3. 0 CONV. UNINS.I. ~ FHA 2. 0 RHS

4. 0 VA 5. 0 CONV. INS.

B. TYPE OFESTIMATED

A. SETTLEMENT STATEMENT (HUD-I)

C. NOTE: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Itemsmarked "(p,D.C.)" were paid outside the closing; they are shown here for informational purposes and are not included in the totals.

D. NAME & ADDRESSOF BORROWER:

E. NAME & ADDRESS City ofLos Banos, a municipal corporationOF SELLER: 520 J Street, Los Banos, CA 93635

F. NAME & ADDRESS Academy Mortgage Corporation, ISAOAOF LENDER: 1220 East 7800 South, Sandy, UT 84094

G. PROPERTY LOCATION: 203 N. Santa Rosa St., Los Banos, CA 93635H. SETTLEMENT AGENT: TransCounty Title Company

PLACE OF SETTLEMENT: 925 West Pacheco Blvd., Los Banos, CA 93635 (209) 826-0804

I SETTLEMENT DATE· 11108/2013

J. SummarY of Borrower's Transaction K. Summary of Seller's Transaction

100. Gross Amount Due From Borrower: 400. Gross Amount Due To Seller:

101. Contract sales mice 105000.00 401. Contract sales vriee102. Personal property 402. Personal propertY103. Settlement charges to borrower: (line 1400) 5877.89 403.104. 404.105. 405.

Ad·ustments For Items Paid Bv Seller In Advance: Adjustments For Items Paid Bv Seller In Advance:106. City/town taxes to 406. City/town taxes to107. County taxes to 407. County taxes to108. Assessments to 408. Assessments to109. 409.110. 410.Ill. 411.112. 4t2.113. 4t3.t 14. 4t4.115. 415.116. 4t6.

120. Gross Amount Due From Borrower: 110,877.89 420. Gross Amount Due To Seller:

,nn , P.;" Rv Or rn .nn ,In' -. n". Tn ".n.r·201. Deposit or earnest money 1 000.00 501. Excess deposit (see instructions)

202. Principal amount of new loan(s) 98443.00 502. Settlement charges to seller (line 1400)

203. Existing loan(s) taken subject to 503. Existing loan(s) taken subject to

204. Seller Paid Transfer Tax 115.50 504. Payoff 1st Mtg. Ln.205. Seller Paid Portion OfOwners Policy 42.50 505. Pavoff2nd MIg. Ln.

206. Amount of2nd loan 9653.60 506.

207. 507.208. 508.

209. 509.

Adjustments For Items Unpaid By Seller: Adjustments For Items Unpaid By Seller:210. City/town taxes to 510. City/town taxes to

211. County taxes 10 511. County taxes to

212. Assessments 10 512, Assessments to

213. 5t3.

214. 5t4.

2t5. 5t5.

216. 5t6.

217. 517.

218. 5t8.

219. 519.

220. Total Paid By/For 109,254.60 520. Total ReductionsBorrower: In Amount Due Seller:

•nn r ••h At ~nn r ••h At ' ~_II_•.

301. Gross amount due from borrower (line 120) 110877.89 601. Gross amount due to seller (line 420)

302. Less amount paid by/for borrower (line 220) 109254.60 602. Less reductions in amount due seller (line 520)

303. Cash (IXIFROM) ,OTO) Borrower: 1,623.29 603. Cash [JrO) (DFROM) Seller: 0.00

The PublIc Reporting Burden for thiS collectIOn of information IS estimated at 35 mmutes per response for collectmg, reviewing, and reporting the data..T~ls ~gencymay not collect this information, and you are not required to complete this form, unless it display~ a cu!!en.tly valid.OMS ,:ontrol number. No confidentiality IS assured;this disclosure is mandatory. This is designed to provide the parties to a RESPA covered transaction With mformatlOD dunng the settlement process.

Previous editions are obsolete Page 1 of 4 HUD-l

Escrow' 13 00797 KLRCHARGESSETTLEMENTL - -700. Total Real Estate Broker Fees Paid From Paid From

Borrower's Seller's. . . lof, , tIIn. 700> ... Funds Funds

701 • tn At At

702.$ tnSettlement Settlement

7m rommi..ion naid at settlement

704.onn It._.· ,In , WIt. I.nan·

'01. Our ori.ination char'e Academv Mnri'a'e Co~oration ISAOA ~I 065.00 (from GFE #1\802. Your credit or char.e (noin'.) fM ,h••n.dfic. int.r." rafe chosen (from GFE #2)8m Yo"r Iori.ination char.es Academv Mort.a.e Co~oration ISAOA (from GFE A) I 065.00804. Annraisal fee to Academv Mort.a.e Co~oration ISAOA POCB $450.00 (from GFE #3)805. Credit renort to Academv • ('n~nratinn ISAOA (from GFE #3) 25.00806. Toy ..~;c. tn (from GFE #3)807. Flood certification (from (W" #1\

808. Insnection Fee To: Academv Mort.a'e Co~oration ISAOA 150.00809.

'10811.812.813.814.815.'16.817.818.819.900. It._. I Rv I..nd•• Tn ....... '. In901. Dailv inter..t Ch'T..d~m l' In0170n 'n '7/01 non Ifll ~ 12'11 I /d.v (21 d.v.) (fionm "FE #10) 294.66902 inn"r.nce nremium fM mo. to Academv Mort.a.e Co~oration ISAOA (from GFE #3) I 693.n903. Homeowner's insurance for 1 vrs. to Gomez Insurance Al,l'encv (from GFE #11) 492.00904. Flood insurance nremium fOT VT'. toon<

906.Innn I w;'. I .•n~••·

1001. Initial dennd' fn. vn... "c~w .ccm'nt (from GFE #9) 423.601002. J.ln~~wn'(' in.urance 3 ~onths IiiJ $ 41.00 Der month ~123.00

1003. Mortoa.e insurance omonths IiiJ $ 0.00 ner month

1004. ri,v nronertv ""'.. omonths Ifll ~ 0.00 ner month

1005. Countv nroneriv 'oyes 5 ~onfhs Ifll ~ Il Illl n'r month ~464.60

1006. Anm..l·..•..m·n.. omonths 1iiJ. $ 0.00 ner month

1007. Flood insurance omonth.1iiJ $ 0.00 ner month

100'. omonths Ifll ~ 0.00 ner month

1009. A"re'ate Adiustment ~(J64.1l1l\

1010.linn T't1.

1101. Title servic~~ ~mrll~nder's title insurance (from GFE #4) I 372.00

1102. Se , or clo.in. fee to TransCountv Tille Comnanv ~552.00

11Il1 Owne(s title insurance TransCountv Tille 'Exerei« ofBinder from 13-00192·KLI (from GFE #5) ".Ilr111l4. Lende(s title insurance TransCountv Title Comoanv $320.00I lOS. Lende(s tille nolicv "m'f ~ O. 441.1l0I11l6. Owne(s tille noHcv limit $ 105.000.001107. Agent's portion of the total title insurance premium $356.40

TransCounty Tille Company

1108. Underwriter's portion of the total title insurance premium $48.60

Old Republic National Title Insurance Company

1109. Exnress M.;1 '0 TronnCountv Title Comnan ~60.00

1110. Wire Fee fo TransCountv Title Comnanv $40.01l1111 Prenare Intersnousal Deed to ntv Title Comnanv ~IOO.OO

I I 12. 2nd Loan Cover'" ~ 0 «' 60 Premium: $100.001113. ,"n"~ F'e. to To Not.~ ~200.01l

1114."nn 'an~'

1201. nt recordino charoes (from GFE #7) 162.00

1202. Dee~ ~ 21.00 Mort.a•• ~ I21l 00 Releases ~ 0.00

1203. Transfer '"'e' (from GF"~"' 115.50

12n4. Citv/Countv taxJst.~n. Deed ~ 115.50 Mortoaoe t onn

12n<. State tax/starnns Deed ~ 0.00 Mort.a·e ~ 0.001206. Record Int."nousal Deed to TransCountv Title Comnanv ~21.00

1207.nnn ..1301. Renuired .ervices that yOU can shon for (from GFE #6)

131121303.1304.1305.1306.1307.

5877.89uoo Totgl f rh ... rn.,. (Enter on line 103 Section J - and -line 502 Section K)

Previous editions are obsolete Page 2 of4 HUD-l

Iof Good Faith I<:"i~'" {"FEla"d ""0.' rh'r"'oTh., r •••n' ~'na

OUf crioination charoc # 801Your credit or ch~rD'e (nnint~) for the snecific interest rate chosen # 002

YOllr ori.ination char.es # R03Transfer taxes #1203

r.nnd F.i'h F.di~.'. Hllo..,

J 065.00 1 n~5 nn

I n« nn 10« 00

1<7.<0 II<.50

oTh.' In Tn'.' r •••n' . u::;::Tha~ '00/. r.ond F.l'h HIIO.'

Government rcenrriina r.hlllTU~<,J #1201 22n nn 1<'00Owner's title insurance #1103 635.00 85.00Credit Renor! # Rn< 25.00 " nn

.Ino"r·no• # Q02 1 <a' " 1 <0> "Annraisal " 004 450.00 450.00

Incmection Fee # 808 150.00 1<000

######

Tn'.' 317'.13 ' <<< "In"raa "", • 1""'" and UlIO.' ~ {608.00' or 110 1<00' 0

, Th.' r •• rh••o. r.nn. ".lth ""0_'Initial denosit for vour ",erow .eeonnl #1001 756.22 ." <0

DoH interest char.es # 901 --. 12.8111 /rlav n< ,n ,Od«

Homeowner's insurance #-;;;;, 600.00 492.no##########

Loan TermsYour initial loan amount is $ 98,443.00

Your loan term is 30 years

Your initial interest rate is 4.750000%

Your initial monthly amount owed for principal, interest, and $ 617.61 includes

and any mortgage insurance is IXi Principal-,IX] InterestIX] Mortgage Insurance

Can your interest rate rise? IX] No_ 0 Yes, it can rise to a maximum of %. The first change

will be on and can change again every after

. Every change date, your interest rate can increase or

decrease by %. Over the life of the loan, your interest rate is

guaranteed to never be lower than % or higher than %.

Even if you make payments on time, can your loan balance rise? IX] No. 0 Yes, it can rise to a maximum of$

Even ifyou make payments on time, can your monthly IX! No. D Yes, the first increase can be on and the monthly

amount owed for principal, interest, and mortgage insurance rise? amount owed can rise to $

The maximum it can ever rise to is $

Does your loan have a prepayment penalty? IX] No. D Yes, your maximum prepayment penalty is $

Does your loan have a balloon payment? !Xi No. D Yes, you have a balloon payroenl of$ due in

years on

Total monthly amount owed including escrow account payroents [I You do not have a monthly escrow payment for items, such as propertytaxes and homeowner's insurance. You must pay these items directly yourself.

IXI You have an additional monthly escrow payment of$

that results in a total initial monthly amount owed of $ . This

includes principal, interest, any mortgage insurance and any items checked below:

IX] Property taxes [Xl Homeowner's insurance

D Flood Insurance DD D

Note: Ifyou have any questions about the Settlement Charges and Loan Tenns listed on this fonn, please contact your lender.

Previous editions are obsolete Page30f4 HUD-l

SELLER'S AND/OR BORROWER'S STATEMENT Escrow: 13·00797·KLR

I have carefully reviewed the HUD·l Settlement Statement and to the best ofmy knowledge and belief, it is a true and accurate statement of all receipts anddisbursements made on my account or by me in this transaction. I further certity that I have received a copy of the HUD-I Settlement Statement.

Borrowers/Purchasers Sellers

Date:

The HUD·! Settlement Statement which I have prepared is a true and accurate account of this transaction. I have caused or will cause the funds to bedisbursed in accordance with this statement.

Settlement Agent: ~.. ~._ ....TransCounly Title Company

WARNING: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include afine or imprisonment. For details see: Title 18 U.S. Code Section 1001 and Section 1010.

Page 4 of4