Louisiana Housing Corporation Market Rate GNMA Program

Lenders Training

Lender Training Agenda

•Welcome & Introductions •Market Rate GNMA Program Overview •Step by Step Reservation Guide & Document Introduction

•Questions

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Overview • State-wide program• 30 year fixed competitive rates • Down Payment Assistance (DPA Grant) - 3.0%• Minimum FICO Credit Score – 640 • Available Mortgage Types – FHA, VA and RD • First-time homebuyer requirement does not apply• Purchase money transactions only • Properties

– Single family dwelling (1-unit), condos and townhomes, double wide mobile homes permanently affixed (FHA financing only)

• Lender Compensation – 1.5% of mortgage note amount • Origination/Discount Fees – None Allowed• Current income limit is maximum of 115% AMI

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Rates

• Rates will be posted daily to the LHC website at www.lhc.la.gov and a term sheet will be emailed out by 9:00 am.

• Reservations can only be made between the hours of 9:00 am – 6:00 pm daily.

• After the rate is posted at 9:00 am, there is a possibility the rate may change. Always confirm current rate prior to locking rate.

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Reservations

• Step by step instructions to make a reservation are contained in the Market Rate GNMA Program Reservation Guide – Exhibit E.

• Once the reservation is completed, print the Market Rate GNMA Program Loan Confirmation – Exhibit A.

• Export Fannie 3.2 file from your LOS and upload into SMC Website to create a SMC loan Number. This will allow you the ability to upload future documents. The website address is: https://loans.approvedfast.com/standard/wholesale_pe595/index.php

• Upload the Market Rate GNMA Program Loan Confirmation document and the LHC Market Rate GNMA Program Term Sheet to https://loans.approvedfast.com/standard/wholesale_pe595/index.php

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Screen Shot of SMC B2B

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Screen Shot of Upload Page for SMC

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Lock Loan with SMC

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Locking Loan with SMC

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Select Product

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Send Data and Request Lock

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Upload to SMC the LHC Registration Form

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Market Rate GNMA Program Lender Certification

• The lender is required to complete and sign the Market Rate GNMA Program Lender Certification Form – Exhibit C. The Lender Certification confirms the borrower(s) do not qualify or there are no funds available for a reservation under the following LHC programs:

• Mortgage Revenue Bond Program• CDBG Parish Programs administered in Acadia, Calcasieu, Cameron,

Iberia, Jefferson, Plaquemine, St. Tammany, Tangipahoa, Terrebonne, Vermilion and Washington Parish

and that there is a reasonable expectation that the borrower(s) qualify for the Market Rate GNMA Program

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Market Rate GNMA Program Lender Certification

• Submit the completed Market Rate GNMA Program Lender Certification Form, Exhibit C to the following:

• singlefamily@lhc.la.gov and

• https://loans.approvedfast.com/standard/wholesale_pe595/index.php. Note the form must be associated to the appropriate SMC loan number.

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Upload to SMC the LHC Certification Form

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Market Rate GNMA Program Lender Certification

• NOTE: The Market Rate GNMA Program Lender Certification Form, Exhibit C must be provided no later than 15 calendar days from the date of the mortgage reservation.

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Market Rate GNMA Program Extension Form

• If the lender determines a loan cannot meet the 45 day closing deadline or the 70 day purchasable loan deadline, lenders may request a one-time 30 day extension for the cost of $375 by completing the Market Rate GNMA Program 30 Day Extension Form.

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Market Rate GNMA Program Extension Form

• Submit the completed Market Rate GNMA Program 30 Day Extension Form – Exhibit D to the following:

• singlefamily@lhc.la.gov and

• https://loans.approvedfast.com/standard/wholesale_pe595/index.php. Note the form must be associated with the appropriate SMC loan number.

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Market Rate GNMA Program Extension Form

The $375 fee will be netted from the first mortgage loan purchase price when purchased by SMC.

If an extension is elected but the mortgage is not purchased by SMC, the Lender will be billed by LHC for the extension fee of $375.

Any Lender with total outstanding extension fees of $3750 will not be eligible to continue participation in the program until the balance is paid in full.

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Deadline Requirements

• Reservations are only accepted between the hours of 9:00 am – 6:00 pm daily.

• Lender Certification must be received within 15 days of the reservation date. Failure to complete and submit this form will result in automatic termination of the reservation.

• Closed loan files must be delivered to SMC within 45 days of the reservation date. If the closed loan cannot be delivered to SMC within 45 days, the loan will be cancelled unless the lender completes and submits the 30 Day Extension Form to LHC and SMC prior to the expiration of the loan reservation.

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Market Rate GNMA Program Deadline Requirements

• If the 30 day extension is requested, the loan must be delivered to SMC within 75 days of the reservation date. Failure to deliver will result in termination of the reservation and the loss of the $375 extension fee.

• The loan must be purchased by SMC within a 70 day period of the reservation date or within a 100 day period of the reservation date with the 30 day extension.

• Failure to clear “Funding Conditions” will result in loans being returned to the lender.

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Market Rate GNMA Program Requisition Form – Exhibit H

The lender must email the Market Rate GNMA Program Requisition Form /Wiring Instructions, Exhibit H and Complete Preliminary HUD-I to singlefamily@lhc.la.gov and mrbaccounting@lhc.la.gov no later than 24 hours prior to the scheduled loan closing date with cut off being 2:00 pm.

The assistance should be labeled “LHC Down Payment Assistance” or LHC

Closing Cost Assistance” on the complete preliminary HUD-I.

Additionally, upload the completed Market Rate GNMA Program Requisition Form, Exhibit H to the following and associate to the appropriate SMC loan number: https://loans.approvedfast.com/standard/wholesale_pe595/index.php

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Upload Requisition Form to SMC

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Upload Closed Loan File

• Upload the completed Closed Loan File to the following and associate to the appropriate SMC loan number: https://loans.approvedfast.com/standard/wholesale_pe595/index.php

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Upload to SMC Closed Loan File

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Clear Funding Conditions

• Upload the completed Funding Conditions to the following and associate to the appropriate SMC loan number: https://loans.approvedfast.com/standard/wholesale_pe595/index.php

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Typical Funding Conditions

• Incomplete closed loan files• Lenders not submitting Funding Conditions in a timely manner• Requested Conditions being delivered sporadically• Act of Correction – Omission of Title Insurance Rider to the mortgage as

required by LA, Tax Exempt Rider and Lender Name incomplete or missing• Hazard/Flood Insurance –Required 80% Total Estimate of Cost New as

shown on appraisal• Hazard/Flood Insurance – Premium increases – Need evidence of

payment of additional cost and notice to borrower of increased escrows required

• Evidence of MERS registration• Evidence of Flood Zone Determination and Life of Loan tracking transfer• RD documents missing or incomplete RD case number and evidence of

payment of RD fee• Current payment history and evidence of payment of monthly MI

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Rate Lock

Once a reservation is made, the rate lock will remain with the borrowerthroughout the lock period.

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Program Fees

• Doc Review Fee - $175

• Tax Service Fee - $85

• Flood Certification Fee - $14.50

• Wire Fee - $20

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Loan Cancellations

• Should the lender cancel a reservation and later request reinstatement of the reservation within the original 45 day period, the higher of the original market rate or current market rate will prevail.

• If the lender cancels a reservation and later reserves the same borrower with a different property address, a new loan number will be issued at the current market rate.

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Loan Cancellation

• It is important for the lenders to cancel the loan with LHC as soon as you determine the loan will not close.

• LHC will report to SMC all canceled loans and SMC will cancel the loan in SMC’s system.

• Cancellations can occur if lenders fail certain program requirements. For example, not completing lender certification within 15 days of registration, or not clearing “Funding Conditions” in a timely manner.

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Market Rate GNMA Program Documents

The following documents will be posted to the LHC Website at

http://www.lhc.la.gov/programs/homeownership/sf_downloads.aspx

in the Market Rate GNMA Program dropdown box:

1. Exhibit A – Market Rate GNMA Program Loan Confirmation2. Exhibit B – Market Rate GNMA Program Reservation Request Form3. Exhibit C – Market Rate GNMA Program Lender Certification Form4. Exhibit D – Market Rate GNMA Program 30 Day Extension Form 5. Exhibit E – Market Rate GNMA Program Reservation Guide6. Exhibit F – Market Rate GNMA Program Maximum Permissible Mortgage Limits7. Exhibit G – Market Rate GNMA Program Income Limits8. Exhibit H – Market Rate GNMA Program Requisition Form – Wiring Instructions

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Benefits to Program

•Borrower does not have to be a first-time homebuyer•Borrower receives down payment assistance •Mortgage loan limits exceed MRB limits •NO potential repayment of a soft second mortgage •NO IRS recapture provision•NO Compliance package required to LHC •NO $75 compliance fee •NO bond documents to be signed by Borrower(s) •Possibility of going to 140% AMI

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Market Rate GNMA Program Mortgage Origination Agreement

• Prior to participation in the program, all SMC approved lenders must execute and notarize the Mortgage Origination Agreement.

• If the lender has not received already, the MOA will be emailed to lenders after this training session.

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Contacts

• Program Administrator • Brenda Evans, bevans@lhc.la.gov 225-763-8852

• Administrative Assistant• Carrie Barbin, cbarbin@lhc.la.gov 225-763-8867

• Manager • Mary Antoon, mantoon@lhc.la.gov 225-763-8649

• Compliance Supervisor• Mary Boudreaux, mboudreaux@lhc.la.gov 225-763-8640

• Technical Supervisor• Sonja Smith, ssmith@lhc.la.gov 225-763-8654

• Compliance Specialists• Alex Stewart, astewart@lhc.la.gov 225-763-8653• Cody Henderson, chenderson@lhc.la.gov 225-763-8650• Laura Womack, lwomack@lhc.la.gov 225-763-8628

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SMC Contacts

• Account Manager – JoAnn Crow• jcrow@stanmor.com 504-569-3707

• Secondary Supervisor – Tricia McBride• tmcbride@stanmor.com 504-569-3709

• Secondary Lock Desk – Judy Bingham• jbingham@stanmor.com 504-569-3781

• Funding Supervisor – Sheila Hunter• shunter@stanmor.com 504-569-3773

• For Questions and/or Concerns contact lockdesk@stanmor.com 36

Questions?

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