SS Memo 11-02

SELLING GUIDE REVISIONS: CONTACT UNDERWRITING

Date: January 24, 2011

Interest Rate Buydowns

(Section 1003 & 1005)

After a review of the pricing model utilized for buying down interest rates for its loan programs, AHFC has changed its pricing. The change is necessary to accurately reflect the actual cost of the buydown to AHFC.

Effective with the date of this memo, an interest rate buydown is limited to a maximum 1% and fees associated with the incremental percentages are reflected in the chart below.

A buydown associated with a commitment issued prior to the date of this memo will be honored at the previous pricing. However, all other business, for example, an adjustment to a buydown associated with a commitment issued prior to the date of this memo, or a buydown associated with a pre-purchase or post-purchase audit, is subject to the new pricing.

Interest Rate

Buydown Amount

Buydown Fee

15 year

30 year

.125

.500

.500

.250

1.000

1.125

.375

1.750

2.000

.500

2.500

2.875

.625

3.500

3.750

.750

4.375

4.875

.875

5.375

6.000

1.000

6.500

7.125


Forms Guide revisions: Contact Underwriting

Available in PDF. (Adobe Acrobat or Adobe Reader is required to read and print PDF files.).

ATTACHMENTS

Available in PDF only. (Adobe Acrobat or Adobe Reader is required to read and print PDF files.).

Attachments

  • Section 1003
  • Section 1005