MEMORANDUM

TO:                  Mike Wildgen, City Manager

THRU: Victor Torres, Director, Neighborhood Resources Department

FROM:            Margene K. Swarts, Community Development Manager

SUBJECT:     Mortgage Subordination Agreement

DATE:                        April 13, 2004

The Community Development Division received a request for a Subordination Agreement for a Mortgage the City holds for a loan recipient.  The information regarding the request follows:

In April, 1996, Marilyn Figuieras, 2044 Emerald Dr., participated in the Comprehensive Rehabilitation Loan Program.  In order to participate in the program, she was required to sign a Mortgage and Mortgage Note to protect the City’s interest in the property.  Ms. Figuieras wishes to refinance her primary mortgage and access an equity line of credit.  In order to do this, the City must subordinate its mortgage to the new loans with Countrywide Home Loans.  The City’s interest will be protected and staff recommends that the City Commission approve this request.

In February, 2002, Jonathan Willems, 2517 Cimarron Dr., participated in the HOOT Loan Program.  In order to participate in the program, he was required to sign a Mortgage and Mortgage Note to protect the City’s interest in the property.  Mr. Willems wishes to refinance the primary mortgage and build an addition to his home.  In order to do this, the City must subordinate its mortgage to the new loan with Capitol Federal Savings Bank. The City’s interest will be protected and staff recommends that the City Commission approve this request.

The City Clerk will have the documents for the Mayor's signature.  If you have further questions, please let me know.