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Closing Costs Reduced on HNI Loan Products

Over the course of the past year Healthy Neighborhoods (HNI) has been working with M&T Bank to reduce closing cost expenses for borrowers using the HNI home improvement loan product. M&T Bank has approved changes to the settlement fee structure that will reduce closing cost expenses due from the borrower for the home improvement loan product, but also first mortgages with rehab and first mortgages only. This fee structure will be implemented effective September 3, 2013.

The matrix below outlines the new fees. Please note that the origination fee has been eliminated from the home improvement loan product and it has increased from 2.0% to 2.25% for acquisition rehabs and refi rehabs.

Transaction Type

First Mortgage

w/Rehab

First Mortgage

Only

Home

Improvement Loan

Construction-Renovation

Origination Fee

Title Insurance

Mortgage Recording

Flood Certification

Survey

Tax Service

Inspection Fees

Title Bringdowns

 

Not Applicable

Standard Pricing

Yes

Yes

Yes

Yes

Yes

Only for loan > $100K

 

 

 

Not applicable

 

 

 

Not Applicable

 

 

Permanent

Origination Fee

Title Insurance

Mortgage Recording

Flood Certification

Survey

Tax Service

 

2.25%

Not Required

Yes (for Mod Agreement)

Yes

Only if foundation altered

Yes; ½ of standard rate

 

1.5%

Standard Purchase Rates

Yes

Yes

Yes

Yes

 

Not Applicable

$2.85 per thousand

Yes

Yes

Yes

Yes

 Please feel free to contact Carl Cleary at the RHIC offices for questions related to this change: 410.225.7547.

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