MCC Funding is not necessary to obtain an RMCC.
The Reissued Mortgage Certificate (RMCC) Program is designed to reissue Mortgage Credit Certificates (MCCs) to current holders who refinance their original mortgage loan, allowing them to maintain their federal tax credit, as long as they reside in the home as their principal residence.
Conditions for Reissuance
All RMCCs must meet the following criteria:
• The original MCC was issued by Santa Clara County (the "County")as the program administrator.
• The RMCC is issued in the name of the original MCC holder, except only for reason of death or divorce, in which case a copy of the Death Certificate or Divorce Decree must be provided to the County.
• The borrower currently owns the property for which the borrower was originally issued a County MCC.
• Said property is the borrower’s principal residence.
• The new Certified Indebtedness Amount (the portion of the loan on which the interest for the tax credit is calculated) of the RMCC cannot exceed the lesser of either the amortized Certified Indebtedness Amount of the original loan for which a County MCC was issued or the new refinanced loan amount.
• The expiration date of the RMCC will be the earlier of either the original Mortgage Credit Certificate expiration date or the refinance mortgage loan maturity date.
• The tax credit rate on the RMCC cannot exceed the tax credit rate of the original County MCC.
• There is no requalification of borrower eligibility in terms of income, purchase price, or household size.
• The borrower must use a Participating RMCC Funding Lender. The borrower may use a Broker as long as the loan is brokered to an RMCC Participating Lender for funding.
• The borrower cannot use both the original MCC and new RMCC.
• If there have been multiple refinances, the County will amortize the original Certified Indebtedness Amount based on the original loan note interest rate to determine the RMCC Certified Indebtedness Amount.
The RMCC application fee is $350, made payable to the County of Santa Clara, and must be submitted with the RMCC application.
Neither Santa Clara County nor the Lender can guarantee that any individual will receive a RMCC.
- There is no limit to the number of times an MCC/RMCC holder may refinance. Each time an MCC/RMCC holder refinances a new RMCC application needs to be submitted to the County, within one year of the date of the refinance, for processing.
- The RMCC application and attachments are sent to the County AFTER the refinanced loan has closed and not before the close of escrow.
- The 9-year Recapture Tax time period does not reset. The 9-year recapture tax time period begins in the year the original purchase was made with an MCC. If an MCC was issued on a home which was purchased in year 2000 and the MCC holder refinances in 2005, the 9-year recapture tax time period still begins in year 2000 not 2005.
- Only Direct Funding Lenders need to participate in the RMCC program. Only the Loan Officer or Agent of the Financial Institution who is funding the refinanced loan should sign the RMCC application forms.
Beginning in 1993 the IRS allowed MCC holders to refinance their mortgage loans without voiding their current Mortgage Credit Certificates by applying for an RMCC from the County using a Participating RMCC Lender. For a list of Participating MCC/RMCC Lenders. IRS regulations allow existing recipients of MCC's to refinance their original mortgage loans on their principal residence and obtain a new MCC with a tax credit rate the same as their original MCC.The Santa Clara County RMCC program requires that holders of existing MCC's who wish to refinance use a County-approved RMCC participating lender. The purpose of refinancing with a participating lender is to ensure that he lender is fully aware of Santa Clara County's RMCC guidelines and will not accidentally disqualify an MCC holder from future tax credits based on their new loan or other criteria. RMCC approved lenders can answer your questions about how to refinance without jeopardizing your existing MCC. Your loan agent will help you submit all of the required RMCC paperwork and answer any other RMCC questions that you may have about the Program. Lenders must submit the RMCC applications to the County in a timely fashion in order to ensure prompt processing of RMCC applications.The RMCC Program is limited to persons who have previously received an original MCC or who refinanced and hold a valid RMCC. RMCC's are NOT available to persons who did not previously hold an MCC certificate.For More Information Please Contact:Tracy CunninghamCounty of Santa ClaraManagment AnalystOffice of Affordable Housing70 West Hedding Street, East Wing, 7th FloorSan Jose, CA 95110Phone: (408) 299-5765Email: Tracy.Cunningham@pln.sccgov.orgFax: (408) 441-4332 (Fax)
- Broker may not sign the RMCC application and forms on behalf of the Funding Lender. Brokers do not need to be participate in the RMCC program.