ADMINISTRATOR S GUIDELINES FOR

Transcription

1 !!! ADMINISTRATOR S GUIDELINES FOR MCC Tax Credit Program First Published May 15, 2012 Revised 09/20/16 Revisions are shown on Page 3

2 CalHFA Mortgage Credit Certificate (MCC) Program Administrator s Guide Page 2 TABLE OF CONTENTS TOPIC See Page Table of Contents 2 Revisions Table 3 The ORIGINATION Team 4 Contact Directory 5 CalHFA online 6 The MCC Process Process in a Nutshell, Process Summary Detail 7 The MCC Tax Credit Program Processing and Delivery Timetable 10 Program Fees 10

3 CalHFA Mortgage Credit Certificate (MCC) Program Administrator s Guide Page 3 REVISIONS TABLE Date Item (effective immediately unless otherwise noted) Page 10/03/15 Added ehp Contact Directory 5 10/15/15 Added link to MyHome Assistance Program Handbook 7 10/15/15 Renamed the MCC fee to Compliance/Admin Fee and added ehp fee information 11 & 12 09/20/16 Removed CHDAP Handbook Link 7 09/20/16 Revised MCC Administration Fees 12 09/20/16 Replaced references to CHDAP with MyHome Assistance Program Several pages

4 ! CalHFA Mortgage Credit Certificate (MCC) Program Administrator s Guide Page 4 THE ORIGINATION TEAM CalHFA Is the Issuer of the MCC program, authorizes tax credit for qualified borrowers, provides documents, provides training materials, conducts training for MyHome Assistance loans, may provide subordinate financing for down payment assistance, reviews files for compliance with MyHome Assistance subordinate financing, markets the program. Participating Lenders Take applications, reserve first mortgage product from their own rate sheets, process, underwrite, approve, fund, close loans. Retain first mortgage loan. Process borrowers for Mortgage Credit Certificate (MCC) and deliver documents required by the program to CalHFA and/or the Program Administrator. Program Administration Maintains the program reservation system, websites, and posts program materials, provides training on compliance issues and system, issues usernames and passwords, answers compliance questions, receives compliance files, reviews, posts and notifies of exceptions, approves compliance file, mails or s final recapture notice and MCC to borrower s new property address, sends Lender form 8329 for each year in which an MCC was originated by the Lender.

5 CalHFA Mortgage Credit Certificate (MCC) Program Administrator s Guide Page 5 WHO TO CONTACT Question Direct Questions Contact Information to: General Program Compliance Questions (ehp) Assistance with ehp Lender Portal Assistance with User Credentials for ehp Lender Portal Update an Underwriter Certified Loan MCC Program Training Problems with Training System Software Training for ehp Lender Portal MCC Program Web page on ehousing Plus Web Site Questions regarding the shipping of closing loan files Questions regarding exceptions (ehp) (ehp) (ehp) (ehp) (ehp) for questions regarding the program compliance file (ehp) for questions regarding exceptions on the program compliance file Sue Denihan sue@ehousing.cc Patt Denihan patt@ehousing.cc Joe Athey joe@ehousing.cc Jennifer Erwin Jennifer@ehousing.cc Vicki Stewart Vicki@ehousing.cc Anyone at ehp Compliance Office services@ehousingplus.com Click on this link: calhfa.html Joe Athey joe@ehousing.cc Click on this link for the once weekly Live Webinar: Or Contact: Jennifer Erwin jennifer@ehousing.cc Vicki Stewart vicki@ehousing.cc Click on this link: Then click on the SUMMARY page. services@.com Debbie Kerr ehp.exceptions@ehousingplus.com X216

6 CalHFA Mortgage Credit Certificate (MCC) Program Administrator s Guide Page 6 Screen shot of page FIND the following on the above linked page: Link to web page for CalHFA MCC program Administrator s Guidelines, sample forms, Participating Lenders, FFIEC site link for census tract numbers, Live Chat, User Credentials system via Lender Portal Site for making reservations, tracking, reporting, MCC compliance exceptions Link to ( UniversityTraining Information Click on the Training tab Link to Contacts ADDRESS 3050 Universal Blvd, Suite 190 Weston, FL 33331

7 CalHFA Mortgage Credit Certificate (MCC) Program Administrator s Guide Page 7 CalHFA CalHFA MCC Tax Credit Handbook For CalHFA Eligible County database See Page 3 For CalHFA MCC Tax Credit Current Income limits for both Targeted and non-targeted areas See Page 10 For Single Family Sales Price limits for both Targeted and non-targeted areas See Page 6 Link to MyHome Assistance Handbook (Added on 10/15/15) Quesitons may be directed to: CalHFA Homeownership Division homeownership@calhfa.ca.gov Link to list of qualified census tracts for Targeted Areas. Link to FFIEC website to convert property address to CensusTract Link to Lender Page, for lender to become approved to participate in the program For additional information, please contact Sharyl Silva SSilva@CalHFA.ca.gov For information regarding reissuance of MCC, please contact Sheryl Angst SAngst@CalHFA.ca.gov PHONE CalHFA Toll Free CalHFA ( ) CalHFA Contact Page

8 CalHFA Mortgage Credit Certificate (MCC) Program Administrator s Guide Page 8 THE MCC PROCESS PROCESS IN A NUTSHELL Applicant applies for loan with Lender. Lender determines if buyer qualifies for CalHFA MCC and other products (CalHFA first mortgage and/or MyHome Assistance Program assistance) Applicant presents Purchase/Sales to lender and lender has applicant sign CalHFA MCC Tax Credit Notice of Potential Recapture as well as reserve the MCC in the system. Lender processes loan(s) and with final Lender credit approval Lender s underwriter completes online Underwriter Certification. Lenders should keep in mind the timelines associated with the CalHFA MCC. Lender prints auto-fill forms from system for closing. For non-myhome Assistance transactions, this includes the Income worksheet and Summary. Lender closes loan and delivers compliance file to administrator within 10 days of closing. Lenders are notified of any exceptions and exceptions are posted in the system. For approved files, issues MCC to applicant. Each January during the program origination period, provides Form 8329 (Lenders Annual Report to the IRS) to Lenders. The report details all MCC s issued by lender for the previous calendar year. Applicant applies for loan with Lender DETAILED PROCESS SUMMARY Lender determines applicant eligibility for CalHFA MCC Tax Credit Purchase/Sales agreement executed by buyer and seller Lender has applicant sign CalHFA MCC Tax Credit Notice to Borrowers of Potential Recapture Tax. This is a disclosure of possible tax consequences. Lender determines if the applicant qualifies for the MyHome Assistance Program. Also, a borrower make take advantage of the CalHFA first mortgage. If either the MyHome Assistance or CalHFA first mortgage program is being used, lender will reserve the loan on CalHFA s lender access system (las) lender submits the loan directly to CalHFA once the MyHome Assistance loan or CalHFA is conditionally approved, CalHFA will supply lender with a Conditional approval (lender must submit a copy of the Conditional approval to Program Administrator with the MCC closing package).

9 CalHFA Mortgage Credit Certificate (MCC) Program Administrator s Guide Page 9 The MCC Process continued Lenders reserve the MCC for their borrower in the secure system. There is now an easier way to reserve a loan. Simply upload your electronic Some spaces on the reservation screen may have to be completed by the lender. As an example, the estimated closing date has to be added. The more complete the 1003, the less blanks to complete. After uploading the 1003, review the entry, Go into Borrower and complete any blanks. When a MCC is reserved successfully, the system provides the MCC number that is used on all MCC documents. Because the MyHome Assistance loan has received a conditional approval from CalHFA, the lender enters the additional mortgage information utilizing the conditionally approved MyHome Assistance loan amount Lenders may use either the CalHFA first mortgage or one of their own first mortgage products. Lender processes the first mortgage loan following the approved guidelines for the loan type utilized. Lender s underwriter will complete an online Underwriter s Certification following final approval of the borrower and prior to closing. Only the lender s underwriter may access the system for this step. Changes may be made to most system information prior to Underwriter Certification. The program compliance forms are available in the Lender Portal (behind security) for an individual borrower. Your underwriter must complete the Underwriter Certification in order for closers or processors to access the forms. You can only access the forms for a specific borrower. Lender closes first mortgage loan using the normal process. Within ten (10) days of loan closing, lender will submit a MCC compliance packet which will contain the required documents listed on the CalHFA MCC Tax Credit Closing Packet Checklist. If the borrower is receiving a MyHome Assistance loan or a CalHFA First mortgage, include the CalHFA conditional approval as directed on the MCC Tax Credit Closing Packet Checklist. If the borrower is NOT receiving a MyHome Assistance loan, include the CalHFA MCC Program Income Calculation Worksheet. A separate Income Calculation Worksheet is completed for each borrower. Following closing, is reviewing income for non- MyHome Assistance borrowers and has provided an Income Calculation Worksheet and Worksheet Summary form.

10 CalHFA Mortgage Credit Certificate (MCC) Program Administrator s Guide Page 10 Please make sure to include the MOST Current VOE and pay stubs for each borrower per directions on the Worksheet). The income calculation worksheet collects the name of the person whose income is being calculated. If not, the primary borrower, then the primary borrower s information is also The MCC Process continued identified. Then insert the date of income calculation. Most loans will likely involve only 1 or 2 borrowers. You will probably not be using every line for every borrower. Please use gross pay and list the base monthly income as per current VOE. The VOE is attached as are the paystubs covering a 30 day period. Both the VOE and paystubs should not be more than 60 days old at time of submission Also please include the other monthly income as described in the CalHFA MCC Tax Credit handbook. We re collecting overtime, bonus and commission income, part-time employment income. Each, income from dividends, interest and annuities, pension and social security benefits income and income from unemployment compensation, disability, worker s compensation, VA compensation, spousal support and child support as well as human assistance and welfare payments. One or more worksheets must include the CalHFA MCC Summary of All Attached Income Calculation Worksheets. In addition to transferring information from one or more individual Income Calculation Worksheets, the Worksheet Summary allows the borrower to note any differences in income from that shown on the individual income calculation worksheet. The Worksheet Summary collects the MCC Number, primary borrower name, property address, city, county and zip code of the property. Also, included are the other borrower s names and the total income for each borrower from the Income Calculation Worksheet. All income is totaled. Please insert the closing date. At closing Borrowers should be asked if there have been any changes to the income shown. If there are, the name of the borrower and the changes should be noted. If there are changes, as long as the loan continues to qualify, all borrowers sign. If there aren t changes, all borrowers sign. Then include the forms that are required for all loans and, if applicable, any additional compliance forms. All are detailed on the CalHFA MCC Tax Credit Closing Packet Checklist. In addition, please include rental income, deferred income, business and investment income for all non-taxable and taxable sources, active duty military housing allowances and any other regularly occurring additional include that isn t limited to earnings. In all cases please attach documentation. Then please total all amounts in the Monthly Amount Column for all other income.

11 CalHFA Mortgage Credit Certificate (MCC) Program Administrator s Guide Page 11 Once that step is completed, please multiply the total Monthly income amount times 12 and insert as the Total Annual Income. Please note that 2106 business expenses CANNOT be deducted from gross wages for tax compliance purposes. The MCC Process continued For this borrower, now you re ready to transfer information to the Worksheet Summary Form. If there are questions, please contact when the worksheet is being completed PRIOR to closing. Please ask the question via so that you receive a written response that you may print and keep in your file and include a copy in the Compliance File sent to. The MCC Tax Credit Program Processing and Delivery Timetable The MCC Tax Credit is locked for the borrower for 90 days from the date reserved in the system. Within 10 days of closing, be delivered, be reviewed, exceptions cleared and be approved for issuance of the MCC Tax Credit. Lenders are notified of exceptions via AND the exceptions are posted online in the system. If the file can t be delivered, please cancel it in the system. If the loan hasn t closed and if funds are available, it may be reserved again. Even when a loan is cancelled, the system remembers. So before you can re-reserve send an to the services address stating the details.

12 CalHFA Mortgage Credit Certificate (MCC) Program Administrator s Guide Page 12 Program Fees The program fees connected with MCC (Rev 09/20/16 Effective 09/06/16) $450 Compliance/Admin Fee for MCCs combined with CalHFA first mortgage loans OR $750 Compliance/Admin Fee for MCCs combined with a non-calhfa first mortgage AND $75 Lender Document Fee. The Compliance/Admin Fee is the fee charged by the Program Administrator/Compliance Agent to process the applicant/borrower from Origination to Compliance Approval, and to assess that the lenders originating such loans are following Program guidelines for the benefit of the eligible borrower(s). The Program Administrator/Compliance Agent tracks the loan via its web-based system, and assists the lender in processing the loan ensuring eligibility to the program available offerings, which can include various rate options, and down payment assistance. (Added 10/15/15) The Compliance/Admin fee includes the review of information and documents delivered in the form of a Compliance File by the originating lender, on behalf of the borrower. Additionally the Compliance review verifies that the lender has charged only the fees allowed by the Program. Contrary to this, approval may be denied and/or fees may have to be reimbursed to the borrower. The compliance file processing consists of required affidavits, application, closing documents, certain non-mortgage documents, tax returns where applicable and other predefined Program documents that are disclosed to the potential borrower(s). This is required to ultimately receive Compliance Approval. These documents can support both the first mortgage and any down payment assistance available, and are required to ensure eligibility to the Program, Federal, State and Local requirements, where applicable. The Compliance review verifies that the data and documents submitted meet all requirements, and may include those for first-time homebuyer, income limits, sales price limits, targeted areas, homebuyer education, rate, term, points, fee limits, LTV, FICO score, special state, city, county program requirements for qualified military, first responders, teachers, etc.). (Revised 09/20/16) Lenders are permitted to charge their usual, customary and reasonable fees but cannot charge MCC Tax Credit borrowers more than they charge other buyers who are not receiving a MCC Tax Credit.