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Director Keating answered affirmatively and explained why that was being done. <br />Commissioner O'Bryan did not have a problem allowing the point to be paid for <br />the closing cost; but would like to see us delete the option that allows lenders to bump up the <br />mortgage rate. <br />Sheri Reichert, Wells Fargo, explained that the 1 -point option began with Fannie <br />Mae and Freddie Mac changing their pricing structure. She said this was just an avenue to try to <br />expand their current vendors and to encourage more vendors to get involved. Ms. Reichert and <br />Commissioner O'Bryan deliberated the benefits of the point system and interest rate to lender <br />and mortgagee. <br />Rona Saunders, 2408 Newport Drive, Fort Pierce, a member of the Treasure <br />Coast lending consortiums, explained the reason for the changes in the point system, which was <br />proposed to the other lending consortiums, in order to be able to sell the loans. <br />Discussion ensued among Board members and Ms. Reichert regarding the nature <br />of the loans. <br />Commissioner Solari recapped his understanding of the discussions, said it <br />seemed to him that because of the financial implosion of the last 6-9 months, bank regulations <br />have tightened up significantly; their game plan has changed; and basically this 1% was designed <br />more to keep liquidity in the market than it is to add profit margins to the banks. Ms. Reichert <br />affirmed that understanding to be correct. <br />Commissioner Solari said, given that, the result of not adding the 1% would not <br />be to cut the profit margins in banks but to limit the number of loans that would go to these non- <br />profits which would then defeat the purpose of the program. Therefore, he could see why people <br />March 17, 2009 20 <br />