MEMORANDUM OF UNDERSTANDING
among
THE CHOCTAW NATION,
PMI MORTGAGE INSURANCE COMPANY,
XXXXXXX MAC, AND WASHINGTON MUTUAL
This Memorandum of Understanding (hereinafter "MOU") is entered into on the
fifteenth day of September, 1998, by and among THE CHOCTAW NATION, PMI MORTGAGE
INSURANCE CO., XXXXXXX MAC, AND WASHINGTON MUTUAL. This MOU expresses the
parties' understanding and agreement on the responsibility of the parties.
WHEREAS, The Choctaw Nation has identified the housing needs of its citizens and
desires to address those needs; and
WHEREAS, PMI Mortgage Insurance Co. ("PMI") endeavors to assist minority and low
income populations by insuring mortgage products that address special needs; and
WHEREAS, Xxxxxxx Mac endeavors to expand home ownership opportunities for
minority and low- and moderate-income populations through the purchase of
mortgages on Native American homes; and
WHEREAS, Washington Mutual is a mortgage lender that has a significant interest
in making loans to previously unserved and unserved populations; and
WHEREAS, the parties desire to coordinate their best efforts to provide a
mortgage product that is sensitive to the culture and traditions of Choctaw
citizens.
NOW THEREFORE, in consideration of the parties' mutual goals, the parties enter
into this MOU and agree as follows:
1. Relationship. There is hereby created a working relationship among the
parties that will utilize the experience, expertise and abilities of each
party to the maximum benefit of the parties and the citizens of the Choctaw
Nation. The relationship shall be defined by the terms and conditions
herein by formal transaction documents which will be entered into from time
to time, subject to the approval of the applicable parties.
2. Term. Beginning on September 15, 1998, this MOU shall be in full force and
effect until canceled by subsequent written agreement of the parties
pursuant to Section 4 below.
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3. Provisions. The parties shall coordinate their best efforts to provide a
culturally sensitive mortgage product for Choctaw citizens. The product
shall be know as the "Choctaw Homebuyer Advantage Program" (CHAP). To that
end, the parties hereby accept duties and responsibilities as follows:
The Choctaw Nation shall:
A. Market the CHAP mortgage product to all eligible Choctaw citizens who will
reside within the state of Oklahoma;
B. Provide assistance to First Americans Mortgage Corporation, such as office
space, staff support, and equipment used for purposes of loan origination;
and
C. Collaborate with PMI and Xxxxxxx Mac to deliver pre-purchase,
post-purchase, and early intervention counseling services to borrowers.
PMI shall:
A. Insure up to $ 10,000,000.00 of CHAP mortgages against potential losses;
B. Underwrite all loans to investment quality standards; and
C. Provide post-purchase counseling and early intervention counseling in
collaboration with the Choctaw Nation.
Xxxxxxx Mac shall:
A. Invest in eligible CHAP mortgages up to a total aggregate value of
$10,000,000.00;,
B. Utilize its experience and expertise to enhance all parties' understanding
of the responsible use of mortgage financing; and
C. Review the performance of CHAP mortgages to determine the feasibility of
investing in additional culturally sensitive products.
Washington Mutual shall:
A. Purchase approved CHAP loans through its brokered loan agreement with First
Americans Mortgage Corporation;
B. Sell CHAP mortgages to Xxxxxxx Mac; and
C. Utilize its experience and expertise to enhance the performance of CHAP
mortgages.
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4. Cancellation. This MOU may be canceled by any party upon thirty (30) days'
written notice to the other parties.
5. Sovereign Immunity. Nothing contained in this MOU can be construed to waive
the sovereign immunity of the Choctaw Nation, its officers, employees or
agents.
IN WITNESS of the foregoing, the following agree to abide by the terms of this
MOU.
/s/ Xxxxxxx X. Xxxx
Chief Xxxxxxx X. Xxxx
The Choctaw Nation
/s/ Xxxxxxxx X. Xxxxxxx
Xxxxxxxx X. Xxxxxxx, Vice P resident, Industry Relations
PMI Mortgage Insurance Co.
/s/ Xxxxx X. Xxxxxxxxx
Xxxxx X. Xxxxxxxxx, Vice President, Community Development Lending
Xxxxxxx Xxx
Xxxxxxxxxx Mutual
/s/ Xxxxxx X. Xxxxxxxx
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