The Atlanta Development Authority is shuttering a new homebuyer assistance program because the program's servicer, Bank of America, has decided to exit the correspondent lending business.
The program, launched Sept. 1, provides 30-year mortgages at a fixed interest rate of 3.5% to eligible borrowers who purchase homes within Atlanta's city limits. The Atlanta Business Chronicle reported Friday that the authority will no longer be able to offer the mortgages because Bank of America, the program's master servicer, is planning to sell or wind down its correspondent lending unit.
The agency said in a news release that it is currently looking for a new master servicer for the program. It also said that approved mortgage applications that close before Nov. 1 will still be able to receive the 3.5% interest rate.
The authority also said that it would continue offering a program that assists homebuyers with downpayments.
