HOP SUBORDINATION REQUIREMENTS
A request for a Subordination Agreement must be faxed to the Administration Unit at (323) 890-9715. CDC will not subordinate to the refinancing of a new first trust deed unless it is expressly for the purpose of lower interest rate and reducing monthly payment or to obtain financing for maintenance or repair of the property pre-approved by CDC. Under no circumstances will CDC subordinate to a third position or subordinate to a new refinance first trust deed to pay off a third trust deed or debt consolidation. Upon receipt of the request, we will fax a list of conditions to the requestor to include the following, but not limited to:
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Copy of the new signed application/1003 (all pages must be submitted) and 1008 Underwriting Summary.
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Copy of Credit Report.
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Payoff Demand Statement for 1st Mortgage. |
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Signed letter from buyer stating reason for refinance.
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Preliminary Title Report & any Supplementals as needed, as well as showing property taxes are current.
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Copy of complete appraisal.
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Certified estimated escrow settlement statement or certified estimated HUD 1.
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Completed Original Subordination Agreement, executed by the homeowner(s) and notarized by Public Notary. The CDC will not supply this document. Please note that a document which has not been fully completed and executed by the homeowner(s) will not be acceptable.
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Certified copy of new note outlining new terms and conditions.
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Copy of Evidence of Insurance indicating the Community Development Commission County of Los Angeles as 2nd mortgagee. Loss Payee Clause: Community Development Commission County of Los Angeles, 2 Coral Circle, Monterey Park, CA 91755.
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Subordination Fee for $200.00 (non-refundable), check payable to the Community Development Commission County of Los Angeles.
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Evidence Letter from the Department of Consumer Affairs indicating the homeowner(s) have completed the counseling session. We will send a letter directly to the homeowner(s) and fax to Department of Consumer Affairs concerning this requirement after receipt of all other conditions listed herein.
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Do not fax above items. Overnight or regular mail only.
The CDC requires ten (10) working days, from the receipt of ALL of the above items to review and approve your request for subordination. Any items not listed above may be requested.
If the borrower is currently holding a MCC Certificate, upon the closing of their refinance the Certificate will be void.
The CDC will evaluate requests for subordination on a case-by-case basis consistent with the interest of the CDC and the needs of the homeowner. If you have any questions, please call (323) 890-7055 or (323) 838-7761.
HOP Participating Cities
Income Limits
Down Payment Assistance
Participating Lenders
Homebuyer Education Seminars
Home Ownership Programs
First-Time Homebuyers
Housing Preservation
Eligible home improvements are acceptable if reviewed and pre-approved by CDC and must be submitted signed by the homeowners and two (2) licensed contractor's itemized agreement/contract. CDC eligible home improvements are code enforcement items (e.g. for plumbing, electrical, heating, roofing) and/or improvements requiring permits from the appropriate municipality building & safety department.
The CLTV for Home Ownership loans may not exceed 80%. The CLTV is calculated based on all existing liens. Additional parties may not be added to title. Quitclaims may be acceptable if one of the original parties will remain in the property and a certified executed copy of the quitclaim deed is provided. There are NO EXCEPTIONS.
CDC will allow maximum 3% for loan origination, financing of fees and costs.
Example: Total payoff loan is $195,000 + 3% = $200,850 (maximum new loan). In this case $5,850 would be allowed for loan origination, financing of fees, and costs.