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Council approves State Bank of the Lakes to administer Home Kenosha loans
Summary
The council approved a lending services agreement authorizing State Bank of the Lakes to administer underwriting and loan monitoring for the Home Kenosha program; the bank will vet applicants and collect a 1% fee on second‑mortgage balances, while the city retains builder vetting duties.
The Kenosha City Council approved a lending services agreement with State Bank of the Lakes to administer the Home Kenosha loan program, including underwriting, monitoring and selection of eligible borrowers under parameters set by the city.
In staff remarks, Mister Morrissey said the bank responded to an RFP and will run the loan program’s underwriting and monitoring; the city’s role will be limited to vetting builders for eligibility. Morrissey said the bank will collect a 1% fee on second‑mortgage balances as its administering fee. He described a forgiveness schedule for portions of the second mortgage tied to milestone years—staff described portions forgiven after 10 and 20 years and a reduced remaining balance after 30 years, but the transcript’s phrasing on exact percentages was inconsistent; the resolution and bank agreement should be consulted for precise language.
Morrissey said city employees (other than elected officials) would be eligible under the program though the bank had chosen to exclude bank employees from eligibility. The council voted to approve the agreement during the meeting after a brief question‑and‑answer exchange about who sets eligibility parameters; staff said the resolution itself establishes those parameters (for example income capped at 150% of Kenosha County median income and the $325,000 maximum loan cited elsewhere in the agenda).
