September 22, 2011
FOR IMMEDIATE RELEASE
Contact: Tracey Powell
Contact: Sonya Moste, Director of Marketing and PR
Atlanta Development Authority Feels the Effects of Bank of America’s Correspondent Lending Downsizing
ATLANTA – On September 1, 2011, The Atlanta Development Authority (ADA) began offering 30-year, fixed rate mortgages at 3.5 percent interest. Unfortunately, Bank of America (BOA), ADA’s Master Servicer of its first mortgages, announced yesterday its intent to sell or wind down its correspondent lending business.
Without correspondent lending BOA will no longer have the ability to conduct business as Master Servicer which means ADA will have no longer have the ability to provide first mortgages to home buyers. ADA is currently searching for a new Master Servicer in order to resume the successful program. The down payment assistance programs will continue to benefit interested homebuyers with or without the ADA first mortgage program.
“Any approved mortgage applications currently in the pipeline, that close before November 1st, 2011 will still be able to receive the 3.5% interest mortgage,” says Tracey Powell. “Despite this set back, we continue to offer help to people with their down payment and in some cases buyers can receive as much as $40,000.”
ADA offers down payment assistance for home buyers purchasing property within the city limits of Atlanta. For borrowers using ADA’s down payment assistance program, the maximum price of the home cannot exceed $252,890.
Since 2007, the ADA has provided mortgage assistance to over 850 home buyers with an average income of $45,000 and representing a total of more than $130 million in residential real estate sold within the limits of the City of Atlanta.
ABOUT ATLANTA DEVELOPMENT AUTHORITY
The Atlanta Development Authority is the official economic development agency for the city of Atlanta. ADA represents intown Atlanta, which has a population of 420,000 and growing. ADA is a research-based economic development organization, focused on residential, business and investment growth in the city. Visit www.atlantada.com.