Accepting "new" Lender participation for a 30-day period, November 1, 2008 through November 30, 2008.
No applications will be accepted prior to November 1. If received, applications will be returned to the Lender.
As you are aware, VHDA issued a moratorium on the acceptance of new lender applications as of December 1, 2006. We were facing limited funding resources and increased competition to access our program. Although we are still in a very difficult market, we have seen a significant reduction in our lender numbers due to mergers and adverse market conditions. Because of this, we will open our program for "new" Lender participation for a 30-day period, November 1, 2008 through November 30, 2008. No applications will be accepted prior to November 1st. If received, applications will be returned to the Lender.
All applications will be reviewed based on current criteria set forth in the Single Family Originations Guide, developed under VHDA Regulations. Emphasis will be given to lenders with branches in underserved areas of the Commonwealth, physical presence in more than one region of the Commonwealth and past experience with VHDA at company and individual staff levels. The number of new lenders accepted into the program will be based upon projected volume and additional bonding capacity. Unfortunately, until we have a sense of how many will apply, we cannot provide a definitive number of Lenders being accepted into the program. We do anticipate that number will not exceed 15 to 20.
We will review applications through November and December with January 1, 2009 approval dates. Thank you all for your continued interest in VHDA.
Director, Homeownership Programs