We have made a slight update to the language on our standard Buydown Agreement (Cx25) to more specifically address what happens to buydown funds when a loan is refinanced during the buydown period. We have modified language in the third paragraph, by removing the portion struck below:
If the property is sold by Borrower and the mortgage is prepaid in full during the buydown period, the nondisbursed and available buydown funds shall be credited to the unpaid principal balance of the mortgage.
This language change will be in effect on November 12, 2022. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DR-137117
LEG-413