Flips. Refinances: and Straw-buyers. “MANAGER” agrees not to finance loans secured by properties, which have been sold within the previous six (6) months. This practice is known as “flips” and is becoming grounds for repurchase by mortgage investors. “MANAGER” agrees to not participate in or finance this practice. If this practice occurs in “MANAGER’S” branch, “MANAGER” agrees to pay any cost associated with this prohibited arrangement. “MANAGER” agrees to not finance any real estate where the borrower is used only for his/her credit on investment property and does not plan to actively participate in the management or payment of the loan. This person and practice is called a “Straw-buyer”. The “MANAGER” agrees to not knowingly finance any party or be apart of this prohibited practice. “MANAGER” agrees not to solicit for refinance any property financed through “AMSTAR” for a period of one year after closing the loan with “AMSTAR” or its investors.
Appears in 2 contracts
Sources: Branch Manager Employment Agreement (Amstar International, Inc.), Branch Manager Employment Agreement (Amstar International, Inc.)