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<br />6.11 <br />Page 16 <br /> <br />D. All recorded indebtedness cannot exceed 80010 of the appraised <br />value of the home. <br /> <br />E. The City of Redwood City/Agency's loan must be recorded in <br />second position unless the Home Improvement Loan Committee <br />grants an exception. <br /> <br />F. City staff will review the proposed promissory note, deed. appraisal, <br />estimated buyer's settlement charges and title report to verify <br />compliance with these aiteria prior to execution of a subordination <br />document by City/Agency. <br /> <br />CITY/AGENCY APPROVAL AUTHORITY FOR HANDLING SUBORDINATION <br />REQUESTS: <br /> <br />When City or Redevelopment Agency Loan dients request the City or Agency to <br />subordinate to their new mortgage with a private lender, there shall be two levels <br />of consideration: <br /> <br />. The First level is a review and approval by the Housing Coordinator, <br />or her Designee, when the proposed subordination will have no <br />impact on the CitYs loan as stated in Section A of Policy section <br />above. <br /> <br />. The Second level is a review and determination by the City's Loan <br />Committee when the proposed subordination may increase the <br />City'slAgency's risk as slated In Section B of Policy section above. <br /> <br />. The City/Agency shall be provided with a minimum of 15 working <br />days from the date of City/Agency receipt of Borrower's request to <br />approve and execute a Subordination Agreement (cover letter, <br />Subordination Request Form, Buyer's Estimated Settlement Charges <br />and original Subordination Form). <br /> <br />HOW TO SUBMIT A REQUEST FOR SUBORDINATION: <br /> <br />Every Request for Subordination shall be submitted by the City/Agency's <br />Sorrower only, and may not be submitted by a realtor, mortgage broker, <br />lender, TItle or Escrow Officer nor anyone else on behalf of the Borrower <br />except for the indlvldual(s) who signed the previous loan with the City or <br />Redevelopment Agency and Is party to the transaction for which the <br />Subordination request Is being made, or has Power of Attorney granted by <br />the Court to act in behalf of the Sorrower. <br /> <br />Every request shall be standard and must indude the follOwing three Items prior <br />to City/Agency executing a Subordination Agreement. <br /> <br />3 <br />