Alaska Permanent Fund Corporation

Transcription

1 Alaska Permanent Fund Corporation RESOLUTION OF THE BOARD OF TRUSTEES OF THE ALASKA PERMANENT FUND CORPORATION RELATING TO THE PUBLISHING OF DRAFT REGULATIONS RESOLUTION 82-1 WHEREAS, The Board of Trustees of the Alaska Permanent Fund has duly considered adopting regulations relating to the purchasing of adjustable rate conventional residential mortgages; BE IT RESOLVED, that the proposed regulations be published in accordance with law and that public comment on them be solicited prior to their final adoption. PASSED AND APPROVED by the Board of Trustees of the Alaska Permanent Fund this 10th day of February, Elmer E. Rasmuson Chairman, Board of Trustees Alaska Permanent Fund Corporation ATTEST: Peter A. Bushre Acting Executive Director Page 1

2 TITLE 15. REVENUE CHAPTER 137. RECEIPT, CUSTODY, INVESTMENT AND MANAGEMENT OF STATE FUNDS. ARTICLE 1. ALASKA PERMANENT FUND CORPORATION. Section 30. Adjustable rate Conventional residential mortgages 40. General terms and conditions for loans and mortgages 200. Definitions 15 AAC ADJUSTABLE RATE CONVENTIONAL RESIDENTIAL MORTGAGE LOANS. Under AS (i) the corporation will, in its discretion, purchase insured adjustable conventional residential mortgage loans not to exceed in the aggregate 15 percent of the total investments of the Alaska Permanent Fund and will make purchases under the following provisions: (1) the loans must be for owner-occupied, one-to four-unit dwellings; and (2) the loan-to-value ratios must be no more than 90 percent for single-family dwellings up to $150,000, 80 percent for single-family dwellings over $150,000, and 80 percent for two-to four-unit dwellings; (3) the mortgage must, under AS (g) (16), be insured by a private mortgage insurance corporation which is authorized to do business in Alaska and has combined capital, surplus, and reserves aggregating at least $20,000,000; no mortgage insurance is necessary for residential loans having a loan-to-value ratio of less than 70 percent and the minimum coverage of other residential loans shall be 10 percent for those having loan-to-value ratio greater than 70 percent but less than 90 percent and 20 percent for those having a loan-to-value ratio of 90 percent. [; THE MIMIMUM COVERAGE MUST BE 10 PERCENT FOR LOANS HAVING A LOAN-TO-VALUE RATIO OF LESS THAN 90 PERCENT, AND THE MINIMUM COVERAGE MUST BE 20 PERCENT FOR LOANS HAVING A LOAN-TO-VALUE RATIO OF 90 PERCENT OR MORE.] 15 AAC GENERAL TERMS AND CONDITIONS FOR LOANS. (a) The purchase of any loan will be on the basis of its merits as determined by the corporation in each instance. Page 2

3 (b) The interest rate on loans to be purchased by the corporation which are guaranteed by the Fm.H.A., S.B.A., or V.A. must be no less than those set by the Fm.H.A., S.B.A., or V.A., respectively, and in effect at the time the corporation makes a final commitment to purchase the loans. The initial [INTEREST] rate on conventional residential mortgage loans to be purchased by the corporation is net of service fees and must be no less than the current rate of the FHLBB Series for Loans Recently Closed on Existing Homes. [A CONVENTIONAL RESIDENTIAL GNMA QUOTED YIELD AT THE TIME THE CORPORATION MAKES A FINAL COMMITMENT TO PURCHASE THE LOANS.] (c) The rate on conventional residential mortgages to be purchased by the corporation must be adjusted each year on the basis of the annual change, nearest the anniversary date of the loan, of the FHLBB Series for Loans Recently Closed on Existing Homes provided that no change may increase or decrease a regular mortgage payment by more than 7.50 percent. (d)[c] Each application to the corporation to purchase loans must be accompanied by payment to the corporation of a commitment fee of 1.0 [0.50] percent of the par value of the loans proposed for purchase within six months, plus an additional fee of.1667 percent for each additional month of commitment for a maximum period of one year and a maximum fee of 2.00 percent. [BY THE CORPORATION] (e)[(d)] All loans purchased by the corporation must be serviced by the seller from one office. The seller's service fees may not exceed 0.50 percent regardless of the loan amount. [THE FOLLOWING: (1) FOR RESIDENTIAL MORTGAGELOANS: (A) UNDER $100,000: PERCENT; (B) $100,000 -$299,999: 0.25 PERCENT; (C) $300,000 AND ABOVE: PERCENT; (2) FOR ALL OTHER LOANS: (A) UNDER $300,000: PERCENT; (B) $300,000 AND ABOVE: 0.25 PERCENT.] (f) All loans purchased by the corporation must contain a due on sale clause. (g)[(e)] Loans will be purchased no more often than once a month at a time set by the corporation. (h)[(f)] Each application to have the corporation purchase conventional mortgage loans must be accompanied by the following: (1) the original loan application; Page 3

4 (2) original appraisal with photographs; (3) credit report; (4) deposit verifications; (5) employment verifications; (6) earnest money agreement; (7) credit verifications; (8) tax returns (three years), if self-employed; (9) financial statement, if self-employed; (10) a copy of any audited financial statement if one was required by the S.B.A. or any other public or private entity to make, insure, or guarantee the loan; and (11) other documents as requested by the corporation. (g) Except for construction loan take-outs, no refinancing loans will be purchased by the corporation. (h) No loans will be purchased from an institution which has a current, over-60-day delinquency status for more than 0.5 percent of all loans purchased from it by the corporation until that delinquency status is reduced by 0.5 percent or less. 15 AAC DEFINITIONS. In 15 AAC AAC , (1) certificate of deposit includes (A) certificates of deposit; (B) shares of federally-chartered savings and loan associations in the form of time certificates; (C) savings certificates issued by state-chartered savings and loan associations; (D) deposits with mutual savings banks in Alaska in the form of time certificates; and (E) fixed-term certificates of indebtedness, as those terms are used in AS Page 4

5 37.l3.120(g) (3)-(7); (2) corporation means the Alaska Permanent Fund Corporation; (3) FHLBB means the Federal Home Loan Bank Board; (4) FHLMC means the Federal Home Loan Mortgage Corporation (5)[(3)] Fm.H.A. means the federal Farmers' Home Administration (6)[(4)] GNMA means the federal Government National Mortgage Association; (7)[(5)] loan includes a mortgage loan; (8)[(6)] mortgage loan means a loans secured by a first lien security interest in real property improved by one or more buildings; (9)[(7)] S.B.A. means the federal Small Business Administration; (l0)[(8)] V.A. means the federal Veterans' Administration. (l1)[(9)] average remaining life means the figure obtained as follows: for each investment sold at a loss during the fiscal year, the loss is multiplied by the remaining life; the sum of these products is divided by the total loss for that fiscal year; (12)[(1O)] gain means the amount by which the principal proceeds of the sale of an investment exceed the cost of the investment; (13)[(11)] investment means any transfer or expenditure of money or other assets made for the purpose of obtaining an income or profit; (14)[(12)] loss means the amount by which the cost of an investment exceeds the principal proceeds of the sale of the investment; and (15)[(13)] remaining life means the number of years remaining until the maturity date of an investment. AS AS Page 5