Firemen S Union and Relief Association of Norristown

FIREMEN’S UNION AND RELIEF ASSOCIATION OF NORRISTOWN

MORTGAGE LENDING GUIDELINES

1. PURPOSE

One of the purposes of the Firemen’s Union and Relief Association is to provide financial assistance to volunteer firefighters and member companies. In accordance with that purpose, the Firemen’s Union and Relief Association has established and maintains a program of granting first mortgages to volunteer firefighters and member companies subject to various rules and regulations. The mortgage program has been established with a goal of assisting as many volunteer firefighters and member companies as possible. It must be understood that the Firemen’s Union and Relief Association is not a regular lending institution and, therefore, availability of funds and prevailing economic conditions are factors over which the Firemen’s Union and Relief Association has no control but may affect the mortgage program.

2. APPLICATIONS

1. In order to apply for a mortgage, the applicant must either be a member company of the Relief Association or have been an active member of a Norristown fire company for at least three (3) consecutive years prior to submitting the application. An active member is defined as one who renders services of value to the company of which he/she is a member in either firefighting or administrative services or both.

2. The applicant shall fully complete a mortgage application form, which forms shall be available upon request from each member fire company or the Secretary of the trustees.

3. A mortgage application form shall be submitted to the trustees with a letter from the company or the applicant’s company, under seal, and in the case of an individual applicant, stating that the applicant has been an active member of said company for at least three (3) consecutive years prior to the date of the application.

4. No application will be considered for the purchase of real property outside the Municipality of Norristown.

5. No application will be considered which seeks a mortgage for a term in excess of twenty (20) years.

6. Each individual’s application must be accompanied by a check in the amount of Five Hundred Dollars ($500) payable to the Firemen’s Union and Relief Association, which sum is non-refundable. The Five Hundred Dollars ($500) shall be applied to the actual costs of an appraisal, credit check, title report, and actual attorney’s fees charged with respect to the mortgage application and process. The borrower shall be responsible for actual costs incurred in full, which costs may not be limited to the Five Hundred Dollars ($500) sum.

7. All individual mortgages approved shall be given for a rate of two points below the prevailing market rate, but in any event, no lower than four (4) percent. All institutional mortgages approved shall be given at a rate of three (3) percent.

8. No application for a mortgage loan will be considered if its purpose is to refinance a mortgage loan in existence between the applicant and the Firemen’s Union and Relief Association at the time the application is made. Applications by individuals for a mortgage loan will be considered for residential purposes only.

9. If the mortgage is approved, the mortgagor shall pay at settlement the additional sum of Three Hundred Dollars ($300) which represents the computer entry and close out fee.

3. CONSIDERATION OF MORTGAGE APPLICATIONS

1. The trustees shall recommend to the floor at the next regularly scheduled meeting or executive board meeting after receipt of the mortgage application weather or not it should be considered.

2. The floor or executive board shall either approve or disapprove the recommendation of the trustees.

3. If it is determined that the application should be considered, the trustees shall forthwith direct the following actions to be taken:

(a) Applicant shall deliver a copy of the sales or other agreement to the Association’s solicitor;

(b) An appraisal of the proposed property shall be obtained;

(d) Employment and earnings of the individual applicant shall be verified in writing.

4. Upon receipt and review of the information required, the trustees shall determine the interest rate applicable to the mortgage request.

5. No mortgage will be granted unless the following criteria are met:

(a) The principal amount of the mortgage requested does not exceed Eighty (80) percent of the fair market value as shown on the appraisal; and

(b) The monthly payments of principal interest and taxes do not exceed Twenty-Five (25) percent of the individual applicant’s gross monthly income; and

(c) The monthly payments of principal interest and taxes plus other regular monthly payments having a remaining term in excess of twelve (12) months do not exceed Thirty-Three and One Third (33 1/3) percent of the individual applicant’s gross monthly income.

6. All individual applicants shall be required to obtain and maintain a policy of life insurance on their lives during the mortgage term in an amount equal to the principal amount of the mortgage balance with the Firemen’s Union and Relief Association as designated beneficiary.

7. All applicants shall be required to pay a tax and insurance escrow to the entity designated by the Firemen’s Union and Relief Association.

8. The applicant shall pay all of the Firemen’s Union and Relief Association’s attorneys’ fees and costs associated with the granting of the mortgage.

9. All mortgages are granted subject to the availability of funds on a first-come, first considered basis.

10. The foregoing rules and regulations are to be strictly construed and may be waived or not adhered to only in the most extraordinary circumstances.

4. CONSIDERATION OF INSTITUTIONAL LOANS

1. In addition to the foregoing, the Firemen’s Union and Relief Association in its consideration of institutional loans may:

(a) Require any and all other information and documentation as reasonably required;

(b) Consider loans secured by assets other than real estate

2. All institutional loans shall be in accordance with any and all applicable statutes, government guidelines and regulations in effect at the time of the loan.