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purchase no ml:,re than 70% ot t_h, total a' mni. of f.erie:; A W)rtl-a_te Loans 01i9inated sander the program at t_he higher rates. Purchase Price Paid by SQrvicer Mortgage Loan (as a percentage of principal amount of the Mortgage t.,_ian) FIi&IYA;Loans $Ec"QAaa 4anventi2ual Laans 6.65% 1010.75% 100.40% 100.15% 7.12 102.50 102.15 101.90 7.65 104.50 104.15 103.90 Fannie Mae Community Home Buyer's Program The Program will also offer more flexible underwriting than otherwise may be available to first-time homebuyers participating in the Program whose conventional mortgage loans are backing Fannie Mae Securities, through the Fannie Mae Community Home Buyer's Program sponsored by Fannie Mae. To qualify for the program, the mortgagor must first participate in home loan counseling seminars which will be made available on an on-going basis throughout the Program. The seminars cover: (1) how to purchase a home; (2) budgeting; (3) evaluating the Mortgagor's current ability to repay a mortgage; (4) homeownership planning; (5) loan closing; (6) home maintenance; and (7) avoiding a default. Federal Tax Law Requirements The Code provides that the interest on qualified mortgage bonds will not Le included in the gross income of the owners thereof if, among other requirements, all of the proceeds of such bonds remaining after the payment of costs of issuance (the "lendable proceed,") are applied to the purchase of mortgage loans of which at least 95t at the time such mortgage loans were made by the lending in,.;titut_ions, complied with certain mortgage eligibility requirements described below. The Code provided that (i) in determining whether 95% of the lendable proceeds of the issue are to be used to make mortgages satisfying the mortgage eligibility requirements, the issuer of the bonds may rely on certain specified affidavits of mortgagors and sellers and certain bpecifi,-d examinations made by the issuer or its agent, (ii) the issuer must, in good faith, attempt to meet all of the mortgage eligibility requirements before the mortgages are executed, and (.iii) the issuer must correct any failure of a mortgage loan to meet such requirements within a reasonable period after such failure is discovered. The Author it has covenanted in the indi n..ure to comply with the Code and the procedures required by r, Origination Agreement, and the origination Agreement includes if.- affidavits and examinations Which the Cods spsciiles may be i e 1 i ed upon by the Aut heat i t y is determining oospl iatrce With such r wQu i reimwnt s . rto.so t equ i t went s and pcoeedums are summar i sed "o Cods. a, appl ted t o t he i ds t c6tMet east est ot tis Mt prove ds sd tis boom Lu