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HomeMy Public PortalAbout2015.04.29 Ltr Re Attorney Opinion LetterCity of McCall www.mccali.id.us April 29, 2015 Dana Borgquist 675 W. Pickford St Meridian, ID 83646 Re: City Attorney Opinion Letter Request Dear Mr. Borgquist 216 East Park Street McCall, Idaho 83638 Phone 208-634-7142 Fax 208-634-3038 After receiving your email on April 17, 2015 regarding the request for a letter of opinion from the City Attorney in relation to your loan to refinance your home at 1547 McCall Avenue, the Council met with Bill Nichols our City Attorney. We learned that the request to certify that "All warranties ... have been met..." is impossible under the circumstances. For example, the first warranty is "The mortgage must be secured by the property improvements and the borrower's leasehold interest in the land." But the actual "mortgage" has not yet been prepared and the sample mortgage (actually a deed of trust) was an unsigned template document with no legal description. Mr. Nichols addressed the issue by calling out that there are blanks to be filled in, signatures to be obtained, the document has to be recorded, etc. to meet the warranty and that if the lender does that then the warranty will be met. This request is not the first request the City has received to provide an attorney opinion. Even though the warranties that the lender wants assurances for are the kinds that are typically provided by borrower's counsel, not the attorney for the Lessor, our attorney had provided what he could. Some of the previous lenders accepted an answer where Mr. Nichols pointed out the limits to the opinion based on what still had to be done to meet the warranty. An example is that previous lenders accepted answers which simply referred to specific sections of the ground lease and the statement that the specific section "speaks for itself." In this opinion Mr. Nichols had to reproduce the sections in question as part of the answer. After discussion by the City Council, it was the Council's opinion that Mr. Nichols had went above and beyond to try to provide your lender with what they had asked within the limits he has as a city attorney. For your information, if you want to look for a different lender, lenders that have accepted similar opinion letters in the past are Idaho First Bank and Gate Way Funding. Thank you for your understanding on this issue. Sincerely, Jackie J. m6n Mayor