TO: Mortgage Banking Professionals

FROM: Jim Schmersahl, Director of Community Development, AICP

RE: Sold on Frederick Second Mortgage Program

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The City of Frederick recently set aside Community Development Block Grant (CDBG) funds for second mortgages for low to moderate-income first-time homebuyers.

We are seeking participating lenders to help us to find qualified borrowers and to coordinate the settlement on the primary loan and the City’s “soft second” deferred payment loan.

A participating lender will:

1. Verify a borrower’s eligibility as to income and other program requirements
2. Reserve funds on behalf of the borrower
3. Assist the borrower to meet homeownership counseling, home inspection requirements
4. Notify the City of the time and location of the settlement
5. Submit necessary documents to the City prior to settlement
6. After settlement, provide us with information on the borrowers for our reports to HUD.

If you would like to join us and become a participating lender, please complete the participating lenders registration form and return it to me. I will send you copies of a lenders package with all the appropriate forms.

If you have any questions, please feel free to call me at 301-228-2842 or email me at jschmersahl@cityoffrederick.com.