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HomeMy WebLinkAboutMinutes Corpus Christi Community Improvement Corporation/Loan Review Committee - 06/14/2006 Q1 71' 11100 41100 un MINUTES CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION LOAN REVIEW COMMITTEE WEDNESDAY, June 14, 2006 12 NOON STAFF PRESENT MEMBERS ABSENT Hector G. Vallejo, NSD Program Manager Sylvia Ford Dalia Garcia, NSD Housing Administration Supervisor MEMBERS PRESENT Alice Vaughn Ben Grande Raul Torres David Cantu Jesus Leija Barry Lobell Judy Telge Tiffany Hull Alynda Asher Chairperson, Alice Vaughn called the meeting to order in the 1st Floor, Staff Conference Room, 1201 Leopard St., City Hall; roll call was taken with nine members present. One member was absent. First order of business was to approve the minutes of the May 10, 2006 meeting. With no corrections made to the minutes, Mr. Lobell made a motion to approve the minutes. Motion was seconded by Mr. Grande. Motion passed unanimously. SCANNED r The following loans were presented for review: Orona, Isabel— 2810 Blake : The first loan application presented by Mr. Vallejo was under the Demolition and Replacement Loan Program. Ms. Orona will be receiving a two bedroom, one bath, 840 sq ft house. She will be receiving a 0% Loan for$35,000 and a Deferred Forgivable Loan for $16,800. The Corporation will be in a first lien position. Ms. Orona's monthly net income is at $538. Her credit is rated good at 686. This application is being presented contingent upon the title opinion coming back from the attorney without any problems. Ms. Orona is okay on her monthly housing payment to income ratio of 30%, but is over the 40% total debt payment to income ratio, she is at 66%. Total appraised value after reconstruction is at $55,152. Recommend approval based on the Corporation being in a first lien position; and a credit score of 686. Mr. Vallejo informed the Committee that Ms. Orona has managed to save some money in her savings. Monthly housing payment to income ratio is at 30%. A motion was made by Mr. Cantu to approve the loan, motion seconded by Ms. Telge. Motion passed unanimously. Concerns and questions from several Committee members arose regarding Ms. Orona's case. (1) How the size of the house is determined? Mr. Vallejo informed the Committee that it is determined by the family size. (2) How is the number of years determined to pay off the loan? Mr. Vallejo informed the Committee depending on the amount of the loan and the type of loan the homeowner is approved for; would determine how many years it would take to pay it off. Mr.Vallejo also stated that the Committee has the option to waive the length of time in years to lower the loan payment for the homeowner to make it easier for the individual. Lopez, Robert& Odilia —614 Meuly: The second loan application presented by Mr. Vallejo was under the Demolition and Replacement Loan Program. Mr. and Mrs. Lopez will be receiving a two bedroom, one bath, 840 sq ft house. They will be receiving a 0% Loan for$17,000, a Minimum Deferred Loan for$18,000 and a Deferred Forgivable Loan for$16,500. The Corporation will be in a first lien position. Net income is at$1,001. Mr. Lopez's credit score is at 645 and Mrs. Lopez's is at 586. Indications show that due to the low credit scores the Lopez's have experienced medical problems and had to file for bankruptcy. Title appears in their name. Mr. and Mrs. Lopez are okay on their monthly housing payment to income ratio of 30% and their total monthly debt payment to income ratio is within the 40%. Total appraised value after reconstruction is $54,000. ISO Recommend approval based on the Corporation being in a first lien position; income ratios are good;the condition of the home; and net income being at$1,001. A motion was made by Ms. Telge to approve the loan, motion seconded by Mr. Grande. Motion passed unanimously. A suggestion from Ms. Telge asked if an after picture of completion of the homes can be provided to Committee members. Other Business: Mr. Vallejo passed out to each Committee member a report showing the current loan status of homeowners with a net income of$350 per month or less. It was noted that the homeowners that fell under this income bracket tend to be current on their payment status. Mr. Vallejo also informed the Committee regarding the Model Block Program of which an area of the city has been chosen. The program is intended to improve the area's economy, help residents buy homes and reduce crime. Having no further business, motion to adjourn meeting was made by Mr. Lobel! and Mr. Cantu. Motion passed unanimously and the meeting was adjourned.