HRSR INFORMATION 02-02-2004 - Laserfiche WebLink

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Attachment 1 KEY ADVANTAGES OF THE MINNESOTA CITY PARTICIPATION PROGRAM Bond Advantages of MCPP Participation • MHFA has historically obtained the lowest available bond interest rate in Minnesota, which allows cities to pass the lowest interest rate on to their eligible residents. • MHFA absorbs all program underwriting costs and risks of bond issuance. Costs to participating cities are limited to a Department of Finance processing fee (charged to both MCPP participants and self issuers)of$20 for each$100,000 in allotment. • MHFA reacts to a falling interest rate market by lowering program interest rates. The volume of its mortgage revenue bond activity and/or remarketing provisions in its bond resolution provides the Agency this flexibility. The interest rate is typically one-half to three quarters percent below market. • MHFA gathers data and updates income and house price limits annually. Loan Advantages of MCPP Participation • Commitment of city staff time is primarily limited to completing the application, administration of an city added targeting or enhancements, and monitoring fund usage. any • MHFA's Homeownership Assistance Fund (HAF) is available to targeted borrowers with MCPP mortgage funds. HAF provides downpayment/closing cost assistance of up to$3,000 and monthly payment assistance of up to $60 (cumulative amount $1,440). HAF cannot be used with self- issued city bond programs. • House price and income limits are the highest allowed under Minnesota statue. • MHFA provides marketing support for each city, including brochures, posters, ad layouts, and local and statewide press releases. • MHFA absorbs all lender compensation costs. • MHFA compensates participating lenders at a level at least equal to lender compensation under the Minnesota Mortgage Program. • The Program requires no discount points. • MHFA provides information about the Program on its website. • MHFA provides updates to participants through E-News. • 11/03