TO ALL: THIS SLIDE PRESENTATION IS NOT INTENDED TO REPLACE ANY LENDER TRAINING THAT IS DONE VIA WEBINAR for our lenders. Please note that everyone who

TO ALL: THIS SLIDE PRESENTATION IS NOT INTENDED TO REPLACE ANY LENDER TRAINING THAT IS DONE VIA WEBINAR for our lenders. Please note that everyone who touches the loan must take the training. This training is not just for a single representative of your company.

HOC will keep a record of persons who have entered the power point and will be used to verify with eHousingPlus for your credentials.

You will not be able to access the eHP reservation system if you have not had training. If you are not a U.S. Bank approved MRBP Lender and HOC approved lender you cannot originate any loans. Contact U.S. Bank to check whether as a corresponding lender you are approved under the U.S. Bank MRBP program.

Help Desk Line:1-800-562-5165E-Mail the Help Desk [email protected]

Any questions or concerns, please email Paulette Dudley, [email protected]/8/2013 HOC LENDER TRAINING 1

Lender Training PresentationLender Training PresentationFebruary 8, 2013February 8, 2013

2/8/2013 HOC LENDER TRAINING 2

Mortgage Purchase Program (MPP)

MORTGAGE BACKED SECURITIES

Housing Opportunities CommissionHousing Opportunities CommissionMontgomery County, MarylandMontgomery County, Maryland

AgendaAgenda• Welcome & Introductions

• Change to MBS Format

• General Information

• Eligibility & Compliance

• Property (General & MPDU) • Loan Products (Mortgage Options

& Closing Cost Programs)

• Origination & Documentation

• Loan Closing Requirements

• Post Closing/Loan Purchase • eHousingPlus Online

Reservations 2/8/2013 HOC LENDER TRAINING 3

Mortgage Purchase ProgramMortgage Purchase ProgramWeb PageWeb Page

www.hocmc.orgwww.hocmc.org (Click on Mortgage & Financing Programs)(Click on Mortgage & Financing Programs)


Updates by email through HOC NOTICES and/or eHousingPlus Bulletin Board

and emails

HOC CHANGES TO MBS FORMATHOC CHANGES TO MBS FORMAT

The HOC Mortgage Purchase Program converted from a whole loan program to a Mortgage Backed Securities Program as of August 31, 2012.

Prior to August 31, 2012, HOC purchased and retained the loans originated in the MPP. After August 31, HOC loans are purchased by a Master Servicer for pooling.

U.S. Bank is Master Servicer.

HOC began using an online reservation system through eHousingPlus, Inc. on August 31, 2012.


Basic ProcessBasic Process1. Lender takes application2. Reserves first mortgage (and HOC Purchase

Assistance) with eHousingPlus3. Reserves county closing cost with HOC (if applicable)

4. Lender submits pre-closing compliance file to HOC5. Lender approves for credit6. HOC approves for program compliance7. Lender closes loan8. Lender submits post-closing file to HOC 9. Lender submits closing file to U.S. Bank 10. U.S. Bank buys loan


General InformationGeneral Information

HOC underwrites MBS loans for program compliance ONLY

Lender underwrites for credit that conforms to FHA guidelines for purchase by U.S. Bank.

Loans cannot close without HOC approval




First Mortgage Program Requirements• US citizenship is not required

•No requirement for current Montgomery County residency for MPP first mortgage

•No requirement for working in Montgomery County for MPP first mortgage

•Property must be owner occupied



First Mortgage Program Requirements

•No non-occupant co-signers

•Rent back more than 30 days after settlement is not allowed

•No more than 15% of property can be used for a business purpose

• FHA Loans may be assumable only to another eligible borrower



Loan Types

All HOC loans have Thirty (30) Year Terms

FHA Loans Only

No VA Financing NOW (2-8-13)

No Conventional Financing Available

• OK for Seller- does not require HOC Approval

• POA for Borrowers requires HOC approval prior to settlementoSpecific for TransactionoHOC requires at least one borrower at settlement

• Use of borrower POA should be due to circumstances beyond borrower’s control


General InformationGeneral InformationPower of AttorneyPower of Attorney

General Information General Information Homebuyers Education ClassHomebuyers Education Class

At least one borrower in the household must attend first time homebuyer class/training

Homebuyer Education required prior to reservation of funds

Any certified housing counseling course accepted – free classes offered by Housing and Community Initiatives www.hcii.org


General InformationGeneral InformationHome InspectionsHome Inspections

HOC requires a Home Inspection for All Existing Properties, Except Condo conversions with renovation (including foreclosure sale

• HOC does not require a copy of the full inspection report

HOC Home Inspection Certification form completed and signed (by borrower and LO) and a copy of the invoice billing as evidence the inspection was completed


General InformationGeneral InformationFees and ChargesFees and Charges

HOC has no separate fees for the first mortgage

U.S. Bank/Master Servicer Fees– Loan Funding Fee - $150.00– Tax Service Fee - $85.00

eHousingPlus charges $225 reservation fee per loan application that closes

County Closing Cost Assistance loan “5 for 5”- HOC charges $100 application fee


Fees And ChargesFees And ChargesLender Payment ScheduleLender Payment Schedule

2/8/2013

HOC LENDER TRAINING 15

•Lender is paid upon loan purchase by U.S. Bank according to the following schedule

TIMELINE AND PURCHASE SCHEDULE/LENDER COMPENSATIONLender compensation applies from the ORIGINAL

loan reservation confirmation date

Compensation # of days from reservation date 2% Loan Purchased within 60 days of the reservation date 1.5% Loan Purchased within 61 - 90 days of the reservation date 1% Loan Purchased within 91-120 days of the reservation date 0% Loan Purchased within 121-150 days of the reservation dateAfter 150 days The loan will not be purchased

FHA and the FHA and the HOC Loan ProductHOC Loan Product

• FHA GUIDELINES PREVAIL

• LOANS MUST HAVE FHA AND HOC APPROVAL

• HOC sets income limits and sales price limits• HOC can offer closing cost/down payment assistance as

governmental entity

• Borrower Contribution – 3.5% Can be a gift, Revolving Closing Cost Assistance

Loan if Borrower works in Montgomery County, or HOC Purchase Assistance Loan

• Seller Closing Cost Contribution – follow FHA guidelines


Underwriting MBS LoansUnderwriting MBS Loans

Lenders will underwrite for credit according to FHA guidelines and U.S. Bank required guidelines.

HOC will underwrite for compliance/eligibility prior to closing. HOC is not underwriting for credit in the MBS program.


Credit UnderwritingCredit Underwriting

• Will be covered by U.S. Bank

• FICO SCORE

• Automated underwriting

• Ratio Limits


Eligibility/Program Compliance Eligibility/Program Compliance


Eligibility/Program ComplianceEligibility/Program Compliance

• First Time Homeownership

All adult occupants must be a first time homeowner.- Prior ownership = having an ownership interest in a primary residence anywhere during the last three years.

- Last 3 years’ federal tax return and IRS transcript for all borrowers used to verify.

- If an applicant currently owns real estate which has not been used as primary residence during the past three years, the applicant may still be eligible. The Commission will review each case INDIVIDUALLY.INDIVIDUALLY. This needs to be determined at the start of your application.



• Citizenship Borrowers do not have to be a U.S. citizen. If other than U.S. citizen, it will be necessary to document status. HOC will not extend financing to borrowers with Diplomatic Immunity

• Sales Price (Acquisition Cost)

Cannot exceed the limits set by the Commission - $429,619. HOC’s definition is different from FHA’s definition



• Income:Household income is total gross annual rate of income for all adult members of the household, whether used for qualifying or not. HH income cannot exceed the limits in effect at time of loan application.

NOTE: HOC and MPDU income limits are not the same. MPDU buyer must not exceed MPDU income limits as of settlement.

(If a borrower appears to be over-income during the application phase or verification process, call HOC’s underwriter so a decision can be made before the entire file is submitted for pre-closing compliance underwriting)



INCOME LIMITS AND SALES PRICE LIMITS are set by HOC – Income Limits Effective 1/23/12

1 Person $ 89,160 2 Person $ 127,320 3+ Person $ 148,540

MAXIMUM SALES PRICE: $ 429,619




Mortgage Purchase Program – MPP• Borrowers do not have to be a County Resident

prior to purchase for the MPP

• Borrowers do not have to be working in Montgomery County to use the MPP

•HOWEVER, a borrower must be working in Montgomery County to be eligible for the

“5 for 5” Closing Cost Assistance (RCCAP)

•There is no asset test for the MPP or County Closing Cost Program.

PRE-CLOSING COMPLIANCEPRE-CLOSING COMPLIANCE


Pre-Closing Compliance Pre-Closing Compliance Package SubmissionPackage Submission

Refer to MBS Pre-Closing Compliance Checklist Stacking Submission OrderRefer to MBS Pre-Closing Compliance Checklist Stacking Submission Order

• The appropriate party must sign the documents after information has been filled in.

• These forms are statements of the mortgagors or sellers, not the lender (except for the Participant’s Affidavit) and are necessary in order to comply with bond requirements.

• Application and Origination Documents

• Mortgage Purchase Program Disclosure of Information

• Mortgagor’s Affidavit

• Certificate of Mortgagor

• FHA Notice to Buyers

• Notice of Potential Recapture Tax (one page document)

• Seller’s Affidavit


Pre-Closing Compliance Pre-Closing Compliance Package SubmissionPackage Submission

Files should be submitted to HOC’s Single Family Underwriting Department, located at:

Housing Opportunities CommissionMortgage Finance DivisionSingle Family Office10400 Detrick AvenueKensington MD 20895Attention: SF Underwriter


HOC Pre-Closing Compliance/ HOC Pre-Closing Compliance/ UnderwritUnderwritinging

Pre-Closing Compliance package is sent to HOC for compliance/eligibility approval. Refer to the HOC Pre-Closing Compliance Checklist on the eHP website or the HOC website. - Turn-around time in Underwriting 1-2 business days (depending on volume)

- Loans are underwritten on a “First in First “First in First Out”Out” basis HOC underwrites for compliance/eligibility prior to closing. HOC

is not underwriting for credit in the MBS program.• Loan not considered approved until HOC has approved AND cannot close without HOC approval• Approval letter, pending and / or rejection notice are faxed or emailed to the lender by HOC once the file has been reviewed.- HOC also posts approval to eHP system under UW certification

•


HOC Pre-Closing Compliance/ HOC Pre-Closing Compliance/ UnderwritUnderwritinging


•HOC issues an approval letter to close with instructions, if applicable. HOC’s Approval Letter Approval Letter confirms the following:

oInterest RateoPointsoApproved Loan AmountoApproved Purchase Assistance (if applicable)oExpiration date of your Locked Financing TermsoTerms of Any Secondary Financing

• Lender closes and funds the First Trust loan

• HOC funds purchase assistance loan- Purchase Assistance Loan, specific documents are

required to be sent with the pre-closing compliance package, refer to the Secondary Financing Checklist on HOC website

Pre-Closing ComplianceSECONDARY FINANCING PROGRAMS

Refer to HOC webpage for checklist

Secondary Financing Checklist Documents Submission

HOC underwrites the Secondary Financing Programs – submitted with the Pre-Closing Compliance Package

- CLOSING COST DOCUMENTS – required for all SF loans

- Additional documents required for specific Secondary Financing programs

COUNTY’S CLOSING COST ASSISTANCE PROGRAM “5 FOR 5” REVOLVING CLOSING COST

3% PURCHASE ASSISTANCE” LOAN – FUNDED BY HOC

HOUSE KEYS FOR EMPLOYEES (HK4E)


PropertyProperty


PropertyProperty HOC accepts any property, except co-ops, in

Montgomery County (foreclosures are acceptable)

Sales price cannot exceed the limits established by HOC

Standard appraisal required

HOC requires that all resale properties receive an in-depth home inspection by a qualified contractor


PropertyProperty• Project Approval

• FHA project approval is necessary for a FHA Loan

• HOC relies on the lender to determine if a project has FHA approval


PropertyProperty


• FHA Condominium Insurance Concentration applies

•Investor concentration – FHA has said it will not regard units owned by a public housing agency in the investor category. Each situation requires waiver from FHA

• Condominium submits request for waiver

PropertyProperty

• Both market units and MPDUs - (Moderately Priced Dwelling Unit) are acceptable

• A MPDU is a property with a controlled sales price (sold below market value). The county controls the sales price based on a formula. When the owner is ready to sell, the county government will calculate the allowable resale price. Price control ends upon foreclosure.

• MPDU has its own Income Limits. They are different from HOC Income Limits

Website: www.montgomerycountymd.gov/dhcaCall: (240) 777-3711


MODERATELY PRICED DWELLING UNIT (MPDU)

MPDU PRE-QUALIFICATION LETTER

Anyone wishing to enter the county’s MPDU program is required to get a pre-qualification letter from an HOC participating lender for a mortgage loan of at least $120,000. This letter is a prerequisite for the county’s acceptance of the applicant to the MPDU program.

The county has created a format for the pre-qual letter it wants the lender to use. The pre-qual letter does not obligate the lender to making the loan.


FHA APPROVAL OF MPDU FINANCINGFHA APPROVAL OF MPDU FINANCINGMONTGOMERY COUNTY ONLYMONTGOMERY COUNTY ONLY

FHA deems units subject to the Montgomery County MPDU program as eligible for FHA insurance.

FHA has stipulated: a. This approval only applies to Montgomery County’s MPDU program

b. Each lender should keep a copy of the FHA approval letter in each loan underwriting file.




HOC LOAN PRODUCTHOC LOAN PRODUCT


HOC LOAN PRODUCTSHOC LOAN PRODUCTS

HOC SETS ITS OWN INTEREST RATES

LENDER CANNOT CHARGE MORE POINTS THAN HOC QUOTE

HOC DOES NOT SET SETTLEMENT COSTS


HOC Loan ProductsHOC Loan Products First Mortgage Interest RateFirst Mortgage Interest Rate

Option 1Option 130 Year Fixed Rate

with 00 PointsWithout Purchase Assistance

Lender CannotCannot charge points in excess of HOC’s quoted rate

Interest rates and points are subject to change


HOC Loan ProductsHOC Loan ProductsFirst Mortgage Interest RateFirst Mortgage Interest Rate

Option 2Option 2

30 Year Fixed Rate

with 00 PointsWITH

3% Purchase Assistance


HOC Loan ProductsHOC Loan ProductsOption 2Option 2

Refer to HOC website, www.hocmc.orgclick on Mortgage & Financing Programs,

HOC First Mortgage With 3% Purchase Assistance

Purchase Assistance is secured, secondary financing which may be used to cover points, down payment, closing costs, escrows, or other prepaid expenses – no cash back.

HOC will directly fund the Purchase Assistance loan to comply with FHA. (revised 1-24-13)



HOC Purchase Assistance Terms LOAN AMOUNT: 3% of the sales price.

(No maximum, a flat 3% of sales price)

INTEREST RATE: Zero percent (0%) per annum

TERMS: Secured Five (5) year deferred loan effective from the settlement date. No interest shall accrue on the Loan and no monthly installments shall be due. Pro rata due upon sale or refinance during first five years. The loan will be forgiven after five (5) years.



REPAYMENT: If first mortgage loan prepays within five years of its origination, borrower is required to repay the unamortized balance of the Purchase Assistance loan. CANNOT BE SUBORDINATED

Purchase Assistance loan is not included in the principal balance of the first Mortgage Loan; however, the Mortgagor pays a higher rate of interest on the Mortgage Loan than is paid by Mortgagors not receiving such assistance

HOC sets the first mortgage rate specifically to be used with the Purchase Assistance. All terms and conditions of the HOC First Trust Mortgage Program apply



Borrower does not have to work in Montgomery County to qualify for the First Mortgage loan with the Purchase Assistance

Can be combined with the Revolving County Closing Cost Assistance Loan “5 for 5”. BUT….the borrower must work in Montgomery County to combine both

MAY be used with other HUD approved closing cost and/or downpayment programs (i.e. FHLBB)



General Requirements

Not intended to pay off debts NO CASH OUT– excess funds will be used as a principal

curtailment to the first loan

Seller contributions within FHA acceptable guidelines

Total debt ratio not to exceed 45%

Maximum CLTV is 104.5%

No asset test is required All terms and conditions of the

HOC First Trust Mortgage Program apply 2/8/2013 HOC LENDER TRAINING 48

Housing Opportunities Housing Opportunities Commission Commission

Mortgagee ClauseMortgagee ClauseUSE FOR “5 for 5” Revolving County Closing

Cost Assistance Loan and Purchase Assistance Loan

The Housing Opportunities Commission Of Montgomery County, Its Successors

And Assigns As Their Interest May Appear


Closing Cost AssistanceClosing Cost Assistance


Employer Identification Employer Identification Number (EIN) Number (EIN) 52-085909052-0859090

Effective 10-1-08 lenders are required to report to HUD the EIN of all government, state, county, city municipalities and non-profits providing secondary financing assistance grants or gifts to the borrower when receiving an FHA first mortgage.


Closing Cost Assistance Closing Cost Assistance ProgramsPrograms

HOC First Mortgage Rate with Purchase Assistance – Option 2 (HOC Funded)

Revolving County Closing Cost Assistance Program (RCCAP) – “5 for 5” (HOC funded)

House Keys 4 Employee (HK4E) (State program)

(Administered and funded by HOC from “5 for 5” Closing Cost Program)


Revolving County Closing Cost Revolving County Closing Cost Assistance ProgramAssistance Program

(RCCAP)(RCCAP)Source of Funding: Montgomery County Government

RCCAP administered by HOC

““5 for 5”5 for 5” Funds disbursed by HOC, Funds disbursed by HOC, serviced by Bogman, Inc.serviced by Bogman, Inc.



“5 for 5”“5 for 5”


• Max Loan = 5% of Sales Price – up to $10,000•Secured Mortgage – second lien•10 year term at 5% - amortized over 10 years•Must be used with HOC First Mortgage-EXCEPTION: HK4E Program used with CDA

Maryland Mortgage Purchase Program•Allowed with FHA Financing – Direct funding by governmental agency


“5 for 5“5 for 5””


• At least one Borrower or Co-Borrower MUST BE WORKING IN Montgomery County

•Regular work location is in the county; company headquarters does not have to be here

•Part-time means at least 20 hours/week spent working in the county; 12 months employment history for part time work required



“5 for 5 “5 for 5

•Borrower applies through HOC Participating Lender

•Lender reserves funds with HOC- Use the current “5 for 5” Reservation Form; (on HOC website)

- Email or fax to HOC --- not ehousing plus

- Lender will receive confirmation from HOC

RESPA REQUIREMENT FOR THEREVOLVING COUNTY CLOSING COST LOAN PROGRAM


- HOC will provide the borrower with the initial GFE & TIL for the Secondary Financing (Revolving County Closing Cost Loan and HK4E)

- Lender must complete the “Closing Cost Good Faith Information Form” for HOC to can get the information.

LOG ON TO: www.hocmc.org,

Mortgage and Finance Programs “FOR LENDERS”

- Print A Copy For Your File. (to be submitted w/ Secondary Financing Pre-Closing Compliance Package)


“5 for 5“5 for 5””


• $100 application fee collected from Borrower

• Automatic Withdrawal from Checking or Savings Account Required

•The loan is due at time of sale or refinancing of property.

•Subordination: will review on case by case basis – no cash out

•There is no “prepayment penalty”

•The property must be owner occupied and remain owner occupied

while the loan is outstanding

Revolving Revolving County Closing Cost Assistance ProgramCounty Closing Cost Assistance Program

“5 for 5”“5 for 5”


• LENDER should inform settlement agent of secondary financing

• HOC will prepare the closing documents and Instructions to the Settlement Attorney for the county closing cost loan

• HOC disburses funds by check to settlement• HOC will notify settlement agent and Lender when check is ready.

Checks should be picked up by lender or settlement agent at:HOCHOC

Mortgage Finance DepartmentMortgage Finance Department10400 Detrick Avenue10400 Detrick AvenueKensington MD 20895Kensington MD 20895

(240) 773-9193 (Liz Zadeng)(240) 773-9193 (Liz Zadeng)

REVOLVING CLOSING COST LOANSREVOLVING CLOSING COST LOANSSettlement InstructionsSettlement Instructions

Closed Loan SubmissionClosed Loan Submission


•Bogman, Inc. services the county closing cost loans

All Closing Cost documents are to be returned to HOC within five (5) days

of settlement NOT with the Post Closing Compliance

package or to U.S. Bank

All Closing Cost documents are to be returned to HOC within five (5) days

of settlement NOT with the Post Closing Compliance

package or to U.S. Bank

House Keys 4 EmployeesHouse Keys 4 EmployeesHK4EHK4E

State Program- refer to flyerState Program- refer to flyer


•HK4E is a state program in which employers may contribute assistance to their employees for purchasing a first home and the state provides matching assistance up to $3,500 $3,500 (subject to MD CDA policy)(subject to MD CDA policy)

HK4E Match - $2,500SK4E “Bonus” - $1,000

- Must be HOC/CDA Lender - Must use CDA First Mortgage-Maryland Mortgage Program

- State Income limits apply

House Keys 4 EmployeesHouse Keys 4 EmployeesHK4EHK4E

Montgomery County is the Employer(includes several county agencies/commissions – see list on HOC website)

• A borrower must be County employee-(see list)* Signed Verification of Partner Contribution by appropriate HR dept.

First time HomebuyerCounty’s participation is the RCCAP “5 for 5”• Lender reserves HK4E/RCCAP w/HOC. All terms of the RCCAP

apply• HOC disburses the County funds • Other documents required for an approval by HOC

- (refer to Secondary Financing Programs Document Checklist)


Settlement and Loan ClosingSettlement and Loan Closing


Required HOC Settlement Required HOC Settlement Documents Documents

• Seller’s Affidavit

• Mortgagor’s Affidavit

• Certificate of Mortgagor

• Occupancy Addendum to Deed of Trust

• FHA Addendum to Deed of Trust

• Information Regarding Potential Recapture Tax

(most recent edition: form is revised annually)


Required HOC Settlement Required HOC Settlement Documents ExplanationDocuments Explanation

HOC FORMS TO BE COMPLETED AND SIGNED AT SETTLEMENT

• Seller’s Affidavit – Signed first at application. Signed AGAIN and notarized at settlement – By the Seller. The ORIGINAL is submitted to HOC with closed loan package for purchase review.

• Mortgagor’s Affidavit – Signed first at application. Signed AGAIN and notarized at settlement. The ORIGINAL is submitted to HOC with closed loan package for purchase review.

• Certificate of Mortgagor – Borrower(s) and adult members of household sign. Signed first at application. Signed AGAIN and notarized at settlement.

• The ORIGINAL is submitted to HOC with closed loan package for purchase review.


Required HOC Settlement Required HOC Settlement Documents ExplanationDocuments Explanation

HOC FORMS TO BE COMPLETED AND SIGNED AT SETTLEMENT• Occupancy Addendum to Deed of Trust – To Be Recorded with First Deed of Trust

o Completed, signed and notarized at closing for all HOC loans.o A copy is submitted with the copy of the Deed of Trust in the closed loan package for purchase.

• FHA Addendum to Deed of Trust – To Be Recordedo Re-discloses to the borrower(s) the additional restrictions during the lifetime of the loan as to use and

occupancy as well as sale by assumption etc. with regard to their FHA-HOC loan. o The original is recorded with the First Deed of Trust.o A copy is submitted with the copy of the Deed of Trust in the closed loan package for purchase.


Required HOC Settlement Required HOC Settlement Documents Explanation Documents Explanation

HOC FORMS TO BE COMPLETED AND SIGNED AT SETTLEMENT

• Information Regarding Potential Recapture Tax• The current edition (changes yearly) must be given to all

borrowers at settlement. This document provides them with instructions for determination of their potential tax liability when they sell their home.

• The borrower (s) receive a copy and the ORIGINAL is sent to HOC with the closed loan file for purchase.

2/8/2013HOC LENDER TRAINING 67

POST CLOSING REVIEW POST CLOSING REVIEW AND LOAN PURCHASEAND LOAN PURCHASE


Post Closing and Post Closing and Loan PurchaseLoan Purchase

Post-closing compliance review is done by HOC. Final approval by U.S. Bank.

Closed loan files for Post closing review must be submitted within 10 days of settlement to HOC

Lenders send the required post-closing compliance documents to HOC, as per the HOC Post-Closing Compliance Checklist. Refer to HOC website for the checklist

HOC will review closed loan files for completeness, advise lender of any missing/incomplete documents

NOTE: eHousingPlus fee of $225.00 in the form of a check made payable to eHousing Plus must accompany the Post-Closing

Compliance package. 2/8/2013 HOC LENDER TRAINING 69


A closed loan file goes to U.S. Bank, as per U.S. Bank FHA Loan Delivery Chklist.

Help Desk: [email protected] Help Desk Line: 1-800-562-5165

HOC’s post-closing compliance review and U.S. Bank’s review of the file will be done simultaneously. Any exceptions noted from either side will be worked through with the lender.

HOC will notify U.S. Bank thru eHousingPlus when HOC approves the Post-Compliance package.



When all exceptions are cleared between the lender and U.S. Bank on the closed loan file AND HOC’s compliance approval date is reflected in the U.S. Bank system and eHP system, U.S. Bank will buy the loan from the lender and commence servicing of the loan.

In order for loans to be approved and purchased, loans must be

delivered with all of the proper documents.

The First Trust loan will be purchased by U.S. Bank.

U.S. Bank will net all fees/compensation. Lender fee paid at this time.


HOC ContactsHOC ContactsTom DeBrine, Single Family Manager

[email protected]

Paulette Kee-Dudley, Program Specialist240-773-9196

[email protected]

Gabriela Merida, Underwriter240-773-9194

[email protected]

Liz Zadeng, Closing Cost Assistant240-773-9193

[email protected]


eHousingPlus (eHP)eHousingPlus (eHP)Online ReservationsOnline Reservations

Reservations/Extensions/Cancellations

First Mortgage and Purchase Assistance Loan is reserved with eHousingPlus (eHP), not with HOC.

Option 1 and Option 2 w/Purchase Assistance• Reservation window: Daily 10:00a.m to 8:00 p.m. • INTEREST RATE LOCK IN

• The interest rate reserved will be locked in for 60 DAYS. Settlement must take place within 60 Days from the Reservation Date with eHP.



Effective 2-7-2013: EXTENSIONS:

◦ Settlement after 60 days from the reservation date: a) A ONE-TIME 15 DAY EXTENSION to settle at the SAME RATE WILL

BE GRANTED, approval by HOC and eHP needed (use Extension Form on eHP website)

b) SETTLEMENTS BEYOND THE 15 DAYS AND UP TO DAY 30 will be granted at the higher of the original rate or the rate at time of extension

c) IF SETTLEMENT DOES NOT TAKE PLACE WITHIN THIS 90 DAY PERIOD YOU WILL NOT BE ABLE TO RE-RESERVE UNTIL 60 DAYS AFTER THE 90 DAY PERIOD.

eHP’s system will lock the loan if not settled within this time frame.



• PLEASE NOTE: The lender compensation is based on the ORIGINAL RESERVATION DATE and not the settlement date. Lender Compensation Fees are affected by these extensions.

• CANCELLATION AND RE-RESERVE: Loans cannot be cancelled and re-reserved. A loan that cancels can only be reserved 60 days after the expiration of the applicable settlement date period.

There is a $225 per loan reservation fee paid to eHousingPlus. The fee is earned only if the loan closes. This fee will be submitted to HOC upon the delivery of the Post Closing Compliance file required for review prior to purchase. (Post Closing Compliance Checklist should be followed)


eHousingPlus System Training

Offered on a weekly basis every FridayLEARN HOW TO•Register a loan

•Check your pipeline•Apply for user credentials

•Find the current rate in the program•Navigate eHousingPlus Lender Portal

Click on this link: http://ehousingpl.us/hocThen click on the TRAINING tab (see below) to register for system training

2/8/2013 76HOC LENDER TRAINING

MBS ProgramMBS ProgramGeneral Information General Information

U.S. Bank is HOC’s master servicer for the MBS program

U.S. Bank will purchase and retain loans from HOC participating lenders

U.S. Bank will securitize loans for HOC


HOC LENDER TRAINING 782/8/2013