Welcome Closed Loan File Submission and Review Dial in number: (641) 715-3276 Participant Access Code: 297334#

WelcomeClosed Loan File Submission and Review

Dial in number: (641) 715-3276Participant Access Code: 297334#

24/01/2015

Homeownership Staff

• Erik Nore, Director of Homeownership• Anita Racicot, Homeownership Specialist• Cynthia Marquez, Compliance Specialist• Shawn Rasmussen, Lending Specialist• Lisa Romero, Lending Specialist• Barbara Tashkandy, Lending Coordinator• Teri Baca, Homeownership Representative• Eunice Duran, Homeownership Representative

34/01/2015

Reservation ProcessAll Programs

• Reservation period

Loan must be purchased by Master Servicer no later than 60 days from the loan reservation date

First mortgage loans that are not purchased within the applicable timeframe must be extended or cancelled by the Lender. No exceptions, for any reason will be made to the reservation policies.

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• Extension Fees

Lender can request either a 15 day or a 30 day extension for the loan delivery, for a fee:

15 day extension (0.1875% of the loan amount)30 day extension (0.3750% of the loan amount)

Only ONE extension is allowed

Extension fee applies to first mortgage only

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• Extension Fees In the event that a loan is not purchased by the Master

Servicer within 60 days of loan reservation, a 30 day extension will automatically be applied, unless the Lender requests a 15 day extension from MFA prior to the 60 day loan reservation expiration date.

The extension fee may be charged to the borrower

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• Extension Fees

– If loan is not purchased within 75 (15 day extension) or 90 (30 day extension) days of the date of reservation (including extension), loan can still be delivered, but will be purchased from Mortgage Lender on a worst case, Mark-to-Market basis that is determined at the time of purchase.

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• Watch Pipeline

– If the purchase dates cannot be met

• ONLY MFA can grant extensions

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MFA Guidelines

• Electronic/Digital Signature Policy– MFA now accepts electronic/digital signatures on all

documents except for the following:

• Income disclosure letter• Any Borrower explanation letter• Lender certification/letter of explanation• YTD Profit and Loss for self-employed borrowers• Rental verification letters from Landlords• Original Note• Original Mortgage• Signature Affidavit

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MFA Guidelines

• Minimum borrower cash contribution

– MFA requires a minimum borrower cash contribution of $500.00, regardless of program type. HERO Program requires a $1,000.00 contribution.

– Funds must be from the borrower and cannot be derived from any type of gift, grant, pro-rated taxes or down payment.

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MFA Guidelines

• Minimum borrower cash contribution

– MFA requires the lender to provide proof of borrower’s funds on the Final First Mortgage Application in Section VII and on the Final HUD 1

– If the borrower contributes more than $500 or $1,000 to the transaction (i.e. Earnest Money, POC Appraisal Fee) the borrower can get those funds back at closing

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MFA Guidelines

• Use of Mortgage Booster Funds

– May only be used for minimum down payment and allowable closing costs

– MFA will allow a principal reduction of up to $100 if the final Mortgage Booster loan is too high. The principal reduction must be applied to the first mortgage

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Fees to Borrower and Lender

• Fees

– Mortgage$aver: 1.00% Origination + 1.00% Discount to the borrower (s)

– Mortgage$aver Zero, Mortgage$aver Plus and HERO: 0.00% Origination + 0.00% Discount to the borrower(s)

• Lender will be paid 1.00% Origination when the loan is purchased by the Master Servicer

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Fees to Borrower and Lender

• Fees

– Mortgage$aver, Mortgage$aver Zero, Mortgage$aver Plus and HERO

• Master Servicer (Idaho Housing) will pay a Service Release Premium of the Higher of 1.50% or $750

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Second Mortgage Allowable Fees

• Fees must be reflected on the initial GFE and TIL as well as any additional disclosures that are required.

• Fees must also appear on the final HUD-1, in accordance with the applicable regulations

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Second Mortgage RESPA

• Lender must provide a Truth in Lending (TIL) Statement and Good Faith Estimate (GFE) to the borrower for the Mortgage Booster Program per RESPA Guidelines– Lender must re-disclose for MFA if the loan

amount increases– NOTE: The Payment$aver and Helping Hand

programs are exempt because they are 0.00% non amortizing loans

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Second Mortgage Allowable Fees

Lender may charge an Origination Fee for Mortgage Booster only of:

$100.00

Recording Fee (DPA Mortgages) Actual Cost

Daily Interest Charges Actual Cost

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Recapture Tax (IRS Imposed)

• Only applies to First Mortgage loans funded from Tax-Exempt Bond proceeds (Does not apply to HERO)

• Will only be required if all three of the following events occur– Borrower sells the home during the first nine (9)

years of ownership– Borrower has a net gain (net profit) on the sale

of the home– Borrower experiences a substantial increase in

their income (IRS formula will define)

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Servicing of Loans

• Master Servicer will service all First Mortgage loan products

• MFA will service all Second Mortgage loan products

• Borrower will receive two coupons

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Servicing of Loans

• Master Servicer will service all First Mortgage loan products

• MFA will service all Second Mortgage loan products

• Borrower will receive two coupons

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DPA Funding Process

• Per HUD’s Directive, MFA must fund DPA directly to the title company

– DPA must be Compliance Approved prior to MFA sending the wire to the title company

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DPA Funding Process

• Lender must provide to MFA 24 hours prior to closing

Wire Request Form (Current form from MFA website)

Wire Instructions to the Title Company

Copy of the FINAL pre-close HUD 1

Need two (2) HUDs, if borrower obtaining a Mortgage Booster, Payment$aver, Helping Hand along with the MFA First Mortgage Loan

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DPA Funding Process

– Copy of unsigned documents for funds being wired to title company

Note andMortgage

– Upload Wire Request and Attachments via the secure on-line Document Imaging (On-Line Reservations) portal

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DPA Funding Process

• MFA prepares wire requests once a day

– Cut off time to receive wire requests/corrections is 10:00 am for wire to be sent out same day

– Wires will be sent out by 3:00 pm to arrive at the title company by 5:00 pm same day

– If property is a HUD or Bank owned property the funds need to be at title at the time of signing, be sure to request the funds to be sent to title the day before closing.

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DPA Funding Process

• Mortgage$aver Plus DPA– MFA will wire 3.50% of final loan amount (must be entire 3.50%

including cents)

• HERO DPA– MFA will wire 3.00% of final loan amount (must be entire 3.00%

including cents)

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DPA Funding Process

• Mortgage Booster loan

– MFA will wire loan amount less interest collected on the 2nd mortgage HUD

• Since MFA is sending the funds to the title company at the time of closing, the first payment will be due to MFA and not the lender

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Compliance Guidelines

Questions?

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Closing Documents All Programs

• Non-occupying co-signer(s) allowed** not non-occupying co-borrower(s)

• Co-signer will not take title to property• Co-signer(s) must sign Note for first and second

mortgages

** Co-signers are not allowed under the HFA Preferred Program

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First Mortgage Closing DocumentsMortgage$aver Programs

• Tax Code Documents

– Affidavit of Purchaser– Affidavit of Seller– Notice of Potential Recapture– Tax Exempt Financing Rider attached to the first

mortgage (FHA, Conventional or USDA loans)– VA Rider attached to the first mortgage (VA loan only)

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First Mortgage Closing DocumentsHERO Program

• The following documents are not required for the HERO Program

No “Recapture” requirementTax Exempt Financing/VA Rider not required Seller and Purchase Affidavits are not required

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First Mortgage Insuring Package

• The DPA Commitment Form issued at the time of Compliance Approval is included in the insuring package to the investor.

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Second Mortgage MFA Closing Documents

• Note and Mortgage(Mortgage Booster)

– Complete the Organization and Loan Originator NMLS # below the signature lines

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Second Mortgage MFA Closing DocumentsMortgage Booster Program

• Loan Breakdown Form

• Loan Disclosure

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Second Mortgage MFA Closing Documents

• Loan Break Down

– Final Form to be completed at the time of closing or no later than when preparing the closed loan package for delivery to MFA (The figures on the form are the actual costs that appear on the final settlement statement)

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Questions?

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Second Mortgage closed Loan Files Delivered to MFA

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Closed Loan File Delivery

• Deliver all closed loan packages (First and Second) simultaneously to Idaho Housing and MFA

– Deliver ORIGINAL SECOND NOTE to MFA• Homeownership Department, 344 4th Street SW,

Albuquerque, NM 87102

– Both the first and second are delivered electronically to different systems• First mortgage to Idaho via the Lender Connection• Second mortgage to MFA via the On-Line

Reservations/Document Imaging Portal

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Second Mortgage Closed Loan File Delivery to MFA

• Training on the portal is via a different presentation - the training will be provided on Thursday, July 23rd – please reference latest lender memo.

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Second Mortgage Closed Loan File Delivery

Common Mistakes• Loan Breakdown is missing– If the form is missing it causes additional review time

when the form is eventually sent in to clear the condition.

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Second Mortgage Closed Loan File Delivery

Common Mistakes• Be sure to include pre-close TIL along with final

TIL– Loan must comply according to RESPA rules

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Review of MFA’s Second Mortgage

Closed Loan Checklist

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Second MortgageClosed Loan Conditions

• Please send all suspense conditions at once – this will speed up the process.

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Second MortgageClosed Loan File

• Pending Conditions

– All purchase pending conditions must be cleared with the Master Servicer (for first mortgage loans and MFA (for second mortgage/DPA program loans) within 30 days of the issuance of the purchase pending notification

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Second MortgageClosed Loan File

• Pending Conditions

– Conditions need to be cleared ASAP.

– All First Mortgage Loans need to be purchased by Master Servicer no later than 60 days from date of reservation.

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Closed Loan Approval

• Once all suspense conditions have been cleared for the second mortgage MFA will send a letter to the Lender. Which reads:

– The above referenced closed loan file has been reviewed for QC and has no outstanding conditions.

– See the following attachment for required final documents that are due no later than 00/00/0000 ( 90 days from the funding [closing] date) .

– Please send a copy of this letter attached to the documents when returning them to MFA. This will help MFA process your documents faster. Thank you for your assistance.

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Final Document Delivery

• Final Documents for SECOND mortgages are to be delivered to MFA.

• Final Documents for FIRST mortgages are to be delivered to Master Servicer.

– Final Documents are due within 90 days of the date of purchase/funding

– Please send the original Mortgage plus one (1) copy

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Questions?

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First Mortgage closed Loan Files Delivered to

Idaho Housing and Finance

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Idaho Housing

• Please let your borrowers know that their loan will be serviced by HomeLoanServ (Servicing Division of Idaho Housing and Finance)

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Idaho Housing

• Ship the closed loan documents to Idaho Housing and Finance using appropriate loan checklist and delivery mechanism.– Electronic Loan Delivery – Lender Connection

Web Portal• Send original Notes to IHFA street address

Idaho Housing and Finance565 W. MyrtleBoise, ID 83702

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Idaho Housing

• Tax Service Fee– $59.00

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Idaho Housing – Endorsing Note

Pay to the order ofIdaho Housing and Finance Association

Without Recourse“Lender Name”Signature

Signatory’s typed name, Title

Do not use the ampersand “&” sign, must spell out “and”

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Idaho Housing – Allonge Issues

Information should match the Note exactly• Borrower’s Name• Property Address• Loan Amount• Note Date (not closing date if different)

• Endorsement should be per Idaho’s guidelines

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Idaho Housing ReviewCommon Mistakes

• UCDPs are required on HFA Preferred Program loans– The Uniform Collateral Data Portal® (UCDP®) is a single

portal through which lenders electronically submit appraisal reports for conventional mortgages delivered to Fannie Mae or Freddie Mac. Through UCDP, lenders can upload appraisal data and view edits and submission details.

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Idaho Housing ReviewCommon Mistakes

• Checklists are not completed– Need contact information

• Hazard Insurance is not transferred to IHFA• Need a letter of intent to transfer in file

• Flood Certification is not transferred to IHFA• Need a letter of intent to transfer in file

• If file was manually underwritten, need AUS

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Idaho HousingFinal Document Delivery

• Documents not required at time of purchase:

•Original FHA MIC, VA LGC, USDA-RD LNG

•Original ALTA Title Policy w/104 endorsement

•Original recorded Trust Deed with riders•Original recorded Assignment, if not utilizing

MERS

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Idaho HousingFinal Document Delivery

• Lenders will be required to certify delivery of these final documents within 90 days of the date of purchase by Idaho Housing and Finance

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Idaho HousingAssignments

• If utilizing MERS, IHFA # 1009670• If utilizing an Assignment:– FOR VALUE RECEIVED, the undersigned hereby

grants, assigns and transfers to IDAHO HOUSING AND FINANCE ASSOCIATION, PO Box 7899, Boise, Idaho 83707 all beneficial interest under certain Deed of Trust Dated…

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Idaho HousingLender Connection

• Finding you Master Servicer Loan Number– Loan number will start with 350 XXXXXX

• Upload your electronic closed loan documents• Upload appraisals• Export your loan file 1003.FNM to the finalized

reservation information provided by MFA.• Track loan status• Print purchase advice

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• Point your web browser to www.housingnm.org• Click on the “Login” tab at the top of the page.

http://www.housingnm.org/

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• Click on drop down in the center of window and select “Lender Connection Idaho Housing”

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Idaho HousingLender Connection – Log In

• IHFA will provide one person at every MFA lending partner’s office administrative login and rights to Lender Connection.

• Your administrator will be able to provide you with a username and an initial log-in password.

• From that point, you will be able to manage your personal account

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Idaho HousingLender Connection – Log In

• Type in your user name and password and click “Log In.”

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Idaho HousingLender Connection – Main Page

• The main page lists all of MFA’s loan products

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Idaho HousingLender Connection – Main Page

• The main page lists all of MFA’s loan products

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Idaho HousingLender Connection – Idaho Loan Number

• This screen provides details about the loan, the borrower and the property.

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Idaho HousingLender Connection – Upload Documents• Click “Upload

Documents” to securely send loan documents to Idaho Housing

• Documents must be in PDF format and less than 100 megabytes

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Idaho HousingLender Connection – Purchase Advice

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Idaho HousingLender Connection – Purchase Advice

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Idaho HousingContacts

• Annie Smith, Customer [email protected]– General Master Servicing/Loan Program Questions

• Liz Calentino, Loan Acquisition [email protected]– Master Servicer loan purchase inquiries

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Idaho HousingContacts

• Mark Suderman, Loan Acquisition [email protected]– Master Servicer loan purchase inquiries

• General Mail [email protected]

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Contact InformationHomeownership Staff

• Anita Racicot, Homeownership Specialist 505-767-2230; [email protected]

• Cynthia Marquez, Compliance Specialist 505-767-2238; [email protected]

• Shawn Rasmussen, Lending Specialist 505-767-2259; [email protected]

• Lisa Romero, Lending Specialist 505-767-2208; [email protected]

• Barbara Tashkandy, Lending Coordinator 505-767-2261; [email protected]

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Contact InformationHomeownership Staff

• Teri Baca, Homeownership Representative 505-238-7375; [email protected]

• Eunice Duran, Homeownership Representative 505-239-1301; [email protected]

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Questions?

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Thank you from all of us at the MFA for your participation in

our programs