Title
Consider/Discuss/Act on a Resolution Authorizing the McKinney Housing Finance Corporation to File an Application for Reservation with the Texas Bond Review Board with Respect to Qualified Mortgage Bonds or Mortgage Credit Certificates; and Containing other Provisions Relating to the Subject
Summary
ITEM SUMMARY:
• Mortgage Credit Certificate (MCC) Program administered by The Texas Department of Housing and Community Affairs (TDHCA)
• MHFC would apply for PAB volume cap, PABs are issued, and the HFC will assign that PAB to TDHCA to administer tax-exempt bonds/MCCs on the HFC behalf.
• TDHCA distributes the funds as below-market mortgages or MCCs to qualified homebuyers through their network of approved lenders.
• TDHCA manages all reporting and compliance.
• The HFC is not required to qualify homebuyers, service loans or do anything beyond applying for PAB cap for $500 and executing an agreement with TDHCA.
• Borrowers who use this program have access to TDHCAs down payment assistance program (DPA)
• MHFC can also fund additional DPA.
• The program will be used for 1st time homebuyers and the income and purchase price limits can be found in the attached PDF.
• The HFC will receive a to be determined annual admin fee based upon production, we believe it will be around 4-5bps pf the aggregate outstanding balance of HFC loans.