Administrator s Guideline Southern California Home Financing Authority (SCHFA) First Home Mortgage Program UPDATED

Transcription

1 Administrator s Guideline Southern California Home Financing Authority (SCHFA) First Home Mortgage Program UPDATED

2 TABLE OF CONTENTS Revision Table 3 Southern California Home Financing Authority Team 4 Who To Contact 5 Program Products 7 Eligibility 8 Property Requirements 9 Compliance Underwriting 11 Income 12 FICO Credit Scores and Downpayment and Closing Cost Assistance 17 Automated and Manual Underwriting Systems 18 Summary of the Compliance Origination Process 19 Funding of Downpayment and Closing Cost Assistance 20 Loan Closing 22 Program Timeline 23 Program Fees and Lender Compensation 24 Program Forms 26 Final Closing Disclosure (TRID) 27 Post Closing Shipping and Submission 27 Compliance File Mailing Address ehousing Plus 27 Mortgage File 27 2

3 REVISION TABLE Date Revision Page Revised US Bank contact for DPA wire requests Ownership Interest in Another Property Homebuyer Education Requirement Maximum Purchase Price Limits Maximum Income Limits Removed Roger Sinila from contact list Debt Ratio Maximum Loan Amount Revised US Bank Tax Service Fee Revised income and purchase price limits 9, Added ehp Digital Docs information & REMOVED DU as AUS for Freddie Mac HFA Advantage Loan Product Throughout 3

4 THE SOUTHERN CALIFORNIA HOME FINANCING AUTHORITY TEAM Southern California Home Financing Authority Creates and sponsors a first mortgage and down payment assistance program, funds down payment/closing cost assistance, solicits lender participation, sets the rate, term and points and markets the program. Participating Lenders Take applications, process, underwrite, approve, fund, close and sell qualified loans to US Bank, the program Master Servicer. Lenders are responsible for servicing first mortgage program loans in accordance with Agency guidelines until the loan is purchased by the US Bank. US Bank National Association Master Servicer Conducts training, provides information on acceptable loan products and delivery and funding, receives all mortgage files, reviews mortgage files, notifies lenders of mortgage file exceptions, approves mortgage files, purchases first mortgage loans, services loans. US Bank National Association Global Trust Services Escrow Agent This is a different US Bank division that is providing the service of wiring the Authority s funds for down payment/closing cost assistance to each closing. Please do not contact US Bank, the Master Servicer regarding the wiring of these funds. The Grant Wire Requisition Forms are located on the ehousingplus system SCHFA page behind a secured area. ehousingplus Program Administration Maintains the program reservation system, website, and posts Administrator s guide, forms, training materials, provides program and system training, answers program and system questions, receives compliance files, reviews, posts and notifies of exceptions and approves compliance file. 4

5 WHO TO CONTACT Question General Program Compliance Questions Assistance with ehportal Assistance with User Credentials for ehportal Direct Questions to: ehousingplus (ehp) Contact Information Patt Denihan Joe Athey Jennifer Erwin Vicki Stewart Update an Underwriter Certified Loan Program Training Problems with Training System Software Training for ehp Lender Portal Program Rates ehousingplus (ehp) Anyone at ehp Compliance Office ehousingplus (ehp) Click on this link. Joe Athey ehousingplus (ehp) Click on this link for the once weekly Live Webinar: Or Contact: Jennifer Erwin Vicki Stewart ehousingplus (ehp) Click on this link Then click on the RATES page. Credit Underwriting Questions Participating Lenders need to refer to internal Underwriting Department or Manager US Bank does not re-underwriter loans. For general questions, contact US Bank at or Option 2 (for general questions) Please note: US Bank answers underwriting questions from the underwriter of a lender for whom US Bank provides underwriting services ONLY. 5

6 Question Questions regarding the shipping of closing loan files Questions regarding exceptions Down Payment Assistance Direct Questions to: ehousingplus (ehp) for questions regarding the program compliance file US Bank for questions regarding the first mortgage closed loan file ehousingplus (ehp) for questions regarding exceptions on the program compliance file US Bank for questions regarding exceptions on the first mortgage closed loan file Contact Information Debbie Kerr X216 hfacustomercare.com Option 1 Southern California Home Financing Authority Community Development Commission of the County of Los Angeles Jewel Warren-Reed (626) Carmen Zamarripa (626) Silvia Delgadillo (626) Am Vuong (626) jewel.warren-reed@lacdc.org carmen.zamarripa@lacdc.org silvia.delgadillo@lacdc.org am.vuong@lacdc.org 6

7 PROGRAM PRODUCTS FIRST MORTGAGE LOAN The following mortgage products have been approved by US Bank, the Master Servicer and may be used with the First Home Mortgage Program, (Program): FHA, VA, USDA/RD and Freddie Mac HFA Advantage Mortgage. Please note that interest rates and the amount of the down payment assistance are subject to change at any time. With respect to reserved loans, the interest rate and assistance will not change as long as loans are delivered according to the timetable included in this guide. Funds are available in a first-come, firstserved revolving pool that provides a continuous source of funding. The loan may be paid off early without a prepayment penalty. Down Payment Assistance Non-Repayable Grant The program provides Down Payment Assistance, (DPA) in the form of a non-repayable grant and is calculated based on the Note amount. The DPA is funded at closing by the Custodian, US Bank Global Trust Services on behalf of the Authority. The DPA funds are automatically reserved when the first mortgage loan is reserved. There are no liens or deed restrictions recorded against the property. The DPA is not a stand-alone product and must be used with the Authority s First Home Mortgage Program. The DPA may be used for the following: To pay closing costs described as prepaid taxes and insurance premiums, origination points, a buy down reserve, guaranty fees, credit report fees, survey fees, appraisal fees, inspection fees, title insurance premium, abstract and attorneys fees, escrow and courier fees, recording fees, discount fees and similar fees, but only if the fees and premiums do not exceed the reasonable and customary amounts charged by the Lender for other mortgage loans. The DPA may not be used under any circumstances to pay the difference between the purchase price and the appraised value if the purchase price is higher or to pay off borrower debt. Borrowers are permitted a reimbursement of pre-paids and overage of earnest money deposit to the extent any minimum contribution has been satisfied and permitted by FHA, VA, USDA/RD and Freddie Mac HFA Advantage guidelines. There must be no cash back from the proceeds of the DPA. The Lender will be required to repay the Authority in full if the DPA is funded and any of the following circumstances occur: if the Mortgage Loan is not closed, if the Mortgage Loan is not purchased by the Servicer within 70 days of the Mortgage Loan reservation or if an extension is granted, 100 days of the Mortgage Loan reservation date, if the Mortgage Loan is to be repurchased by the Lender prior to being pooled into a GNMA or FHLMC Certificates or in the event of fraud. 7

8 ELIGIBILITY Borrower Requirements Each borrower must be a U.S. citizen, permanent resident alien or qualified alien. Must meet the credit, income and loan requirements as outlined in this Guide. Eligible Homebuyers First Time Homebuyer Requirement The program is available for first time homebuyers unless the borrower is purchasing a home in an IRS Designated Target Area Census Tract. A first time homebuyer is defined as a borrower who does not have a present ownership interest in a principal residence at any time during the three (3) year period immediately before the date of obtaining the Program loan. Federal Income Tax Returns or transcripts for the past three years are required for borrowers and spouse, even if the spouse is not on the loan or on title unless the borrowers are purchasing a home in an IRS Designated Targeted Area Census Tract. OWNERSHIP INTEREST IN ANOTHER PROPERTY (Rev 12/10/18) Lender should contact the Agency (FHA, VA, RD, Freddie Mac) regarding ownership of other property. Homebuyer Education Requirement (Effective May 22, 2017) Homebuyer Education is required for at least one homebuyer. The certificate will expire the earlier of one (1) year from issuance or the expiration date on the certificate. Each certificate must be dated within twelve (12) months prior to the close of escrow. Providers of such programs will include programs developed and approved by the following: HUD-approved counseling agencies. Housing Finance Agencies (HFAs). Community Development Financial Institutions (CDFIs). Mortgage Insurance Companies. Other Providers with programs which meet the standards of the National Industry Standards for Homeownership Education and Counseling ( Freddie Mac Credit Smart ( Owner Occupancy Requirement Must reside in the home as their primary residence within 60 days after the close of escrow. Co-Signers Non-occupant co-signers are permitted for FHA, VA and USDA/RD loans. Non-occupant co-signers are not permitted for Freddie Mac HFA Advantage loans. Co-Borrowers Non-occupant co-borrowers are not permitted for FHA, VA and USDA/RD loans. Non-occupant co-borrowers are not permitted for Freddie Mac Advantage loans. 8

9 PROPERTY REQUIREMENTS Eligible Areas Los Angeles County All cities and unincorporated areas are eligible for the Program except the City of Los Angeles areas. Please Note: If a property is located in the County of Los Angeles County and has an IRS Census Tract Number of or lower, that property is located in the City of Los Angeles jurisdiction and DOES NOT QUALIFY for the program. Go to to verify the IRS Census Tract Number. Orange County All cities and unincorporated areas are eligible for the Program. Maximum Purchase Price Limits (Effective 5/22/2018) Purchase price limits are subject to change annually. Los Angeles and Orange Counties for New and Existing Construction Non Targeted and Targeted Areas $625,764 Property Types Property must be a single family one-unit residence, including FHA approved condominiums and PUDs. Two to four units are not permittted. Manufactured, mobile homes and modular homes are not permitted. No more than 15% of the square footage of the home being purchased may be used in connection with a trade or business including child care services. Homes are considered new if never previously occupied. Land may not exceed the size required to maintain basic livability. Appraisal must indicate that the home has at least a 30 year remaining useful life. 9

10 IRS Designated Targeted Area Census Tracts (As of April 1, 2014) Los Angeles County: , , , , , , , , , , , , , , 4088, , , , , , , , , , , , , , , , , , , , , , , , , , , , , 5328, 5329, , , , , , , , , , , , , , , , , , , , , , , , 5353, 5354, , , , , , 5360, , , 5406, 5415, , , , , , , , , , , , 5716, , , , , , 5733, , , 5753, , , , , , , , , , , , , , , , , 6011, , 6016, 6017, 6019, , , , , 7011, , , , , , , , , , , , , , , , , , Orange County: , , , , , , , , , ,

11 COMPLIANCE UNDERWRITING Mortgage Credit Certificates (MCCs) MCCs may be layered with the first mortgage products and considered as qualifying income. Subordinate Financing and Affordable Seconds The loan may be layered with the Community Development Commission s Home Ownership Program (HOP). The program may be layered with approved subordinate financing products. Subordinate financing is not required to be approved by the Authority of US Bank. Lenders are responsible for determining if the subordinate financing loan products meet FHA, VA, USDA/RD and Freddie Mac HFA Advantage guidelines. The maximum CLTV must meet Investor requirements. Transaction Type Purchase transactions only Terms Fully amortized 30 year fixed rate loan Minimum Loan Amount There is no minimum loan amount in this program Maximum Loan Amount The first mortgage loan amount cannot exceed $453,100 including MIP for FHA loans The first mortgage loan amount cannot exceed $453,100 for Freddie Mac HFA Advantage loans 2/1 Temporary Buydowns Are permitted as per FHA, VA USDA/RD and Freddie Mac HFA Advantage, Master Servicer and Primary Mortgage Insurer guidelines Mortgage Insurance FHA Loans - Mortgage Insurance is required regardless of the LTV Freddie Mac HFA Advantage offers monthly and single-premium borrower-paid payment options which may be financed Loan To Value (LTV) and Combined Loan To Value (CLTV) LTV must follow applicable agency guidelines CLTV must follow applicable agency guidelines Freddie Mac HFA Advantage Loans LTV cannot exceed 97% CLTV cannot exceed 105% 11

12 INCOME Maximum Family Income Limits (Effective 5/22/2018) Income limits are subject to change annually. Los Angeles County: 1-2 person household - $116, person household - $135,660 Orange County: 1-2 person household - $131, person household - $153,020 Lenders are required to calculate income to qualify the borrowers(s) for loan approval using FHA and Freddie Mac guidelines; in addition, ehousingplus will review the borrower s income pursuant to Program compliance. The income of borrower(s) and spouse whether or not spouse is liable on the loan or is on the title must be included. Income must also be included for any adult (over 18 years of age) who will live in the household and be secondarily liable on the note or on the title. Program income is not averaged. It is annualized. This income calculation is different from income used for credit underwriting. More detailed guidelines for calculating program income are in the Compliance Underwriting section included in this Guide. Family Income Includes: Gross pay, overtime, bonuses, commission, part-time employment, dividends, interest, interest, annuities, child support, public assistance, disability payments, alimony, sick pay, social security benefits and pensions, deferred income, Veterans Administration (VA) Compensation, unemployment compensation. Family Income Excludes: Gifts - casual, sporadic, or irregular, lump sum inheritances, insurance settlements, capital gains, student financial aid assistance and settlements for personal and property losses, education scholarships, food stamps, foster care and adoption assistance payments unless used to credit qualify for the loans, income from household members not on title or the loan. PLEASE NOTE: CALCULATION OF PROGRAM (COMPLIANCE) INCOME IS DIFFERENT THAN CALCULATION OF INCOME FOR CREDIT PURPOSES. The program requires that underwriters include all income of borrowers and their spouses (regardless of their address) and all household members 18 years of age or older(related or unrelated) who are secondarily liable on the note or on the title and expected to live in the residence. Use the information below as a general guide. Because each case is different, please contact ehousingplus Compliance if you have questions. Unlike income that is averaged for credit underwriting, the Program is concerned with actual current income. You should be reviewing the YTD income, the income of the last 4 months and the income shown on previous tax returns for consistency. You should not be averaging income. If there are not inconsistencies in earnings, use the guidelines for each loan type to determine current gross monthly income. Current gross monthly income is multiplied by remaining months in the year to determine "total current annualized income". 12

13 For the tax year in which the closing occurs, consider YTD income. Then establish current base income for the balance of the year using the guidelines for each type of income. Then consider any additional income. For assistance, contact the Compliance Office. Gross monthly income is the sum of monthly gross pay; any additional income from overtime, part-time employment, bonuses, income from self-employment, dividends, interest, royalties, pensions, VA compensation and net rental income, other income (such as alimony, child support, public assistance, sick pay, social security benefits, unemployment compensation, income received from trusts, and income received from business activities or investments, continuation of which is probable based on foreseeable economic circumstances based upon the Mortgagor's Certification (to such effect), all as computed at the time of application for a mortgage loan and confirmed at the time of closing. ehousingplus will check information with respect to gross monthly income obtained from the reservation form, Underwriter s Certification and applicable certificates and affidavits executed the date of the Closing of the Mortgage Loan, provided that any gross monthly income not included for credit underwriting purposes must be included in determining gross monthly income. The limit is the limit and any amount over the limit is not acceptable. Include the income of non-borrower co-habitants who will reside in the property. However, do not include dependents that are claimed on tax returns but who will not permanently reside in the home the majority of the time. The Certification, executed by the borrower(s), and certified by the lender, must include the total verified annual household income. Questions regarding the calculation of income for program purposes should be directed to the Compliance office (954) There are many variables, and the Compliance Office will be pleased to assist. The Servicer requires the complete closing and credit documentation as identified on their specific loan delivery checklists. Lenders may rely on the same documentation for program compliance purposes. Although mentioned in this section of the guidelines, VOE s and VOD s, current pay stubs which delineate current period, W-2's, for all borrowers from all employers, and bank statements to verify assets may be included to the extent required by the Servicer for their purposes. Figures shown on all documents should be consistent. Because a program qualifier is income, even if not required for credit purposes (i.e. automated underwriting), you should be seeking the two most current paystubs with YTD. Do not include in the compliance file, keep copies for your records. Although reference is made to the last 4 to 6 weeks income, Underwriters should review the income tax returns submitted to verify that there are no unexplained and/or unacceptable differences between current income and past income. The examples below are not intended to serve as an exclusive method on how to calculate income. Please contact the Compliance Office with questions regarding individual cases. Please note that the income reported for the Program income calculation CAN NEVER BE LOWER THAN THE INCOME USED TO QUALIFY FOR CREDIT PURPOSES. Hourly Employees For the tax year in which the loan is closing, use the Year to Date base income. If consistent, utilize the base to determine the balance of the year as follows: 13

14 1. Using last 4 to 6 weeks' pay stubs, identify hourly rate of pay and average number of regular hours worked per week. Multiply hourly rate times regular weekly hours. Multiply result times number of weeks for balance of year and add to YTD for an annualized base salary. 2. If the person has no other sources of income (for example: overtime, bonus, commissions, second jobs, interest, dividends, child support, alimony, public assistance), this will be the Current Total Annual Income. 3. Compare the total annual income in #2 above to Paystubs, VOE s, previous year s income per W- 2's and tax returns. You should not find significant differences. In some cases, the Current Total Annual Income will be higher than the previous year's income. Variances should be attributable to increases/decreases in pay or number of hours worked. Salaried Employees 1. Using last 4 to 6 weeks' pay stubs, identify weekly (or other frequency) rate of pay. Multiply rate times the number of regular pay periods in the year (52 weekly, 26 bi-weekly, 24 semi-monthly, 12 monthly). 2. If the person has no other sources of income (for example: overtime, bonus, commissions, second jobs, interest, dividends, child support, alimony, public assistance), this will be the Current Total Annual Income. 3. Compare the total annual income in #2 above to Paystubs, VOE s, previous year s income per W-2's and tax returns. You should not find significant differences. In some cases, the Current Total Annual Income will be higher than the previous year's income. Variances should be attributable to increases/decreases in pay or number of hours worked. Business, Self-Employment 1. Use the quarterly tax returns and financial statements to identify the current NET year to date income. 2. Divide the year to date income by the number of months during which it was earned and multiply times remaining number of months in year. Add to actual YTD. ADD DEPRECIATION. 3. If the person has no other sources of income (for example: overtime, bonus, commissions, second jobs, interest, dividends, child support, alimony, public assistance), this will be the Current Total Annual Income. 4. Compare the total annual income in #2 above to the previous year's income per W-2's and tax returns. You SHOULD not find significant differences. Verified Termination of Overtime, Commission, Bonus, Seasonal, Periodic, One Time Overtime, Bonus, Commissions Use the last 4 to 6 weeks' pay stubs, identify the year to date total earnings of the borrower. Subtract the Current Total Base Income (see above) to arrive at the total year to date extraordinary income. If verification of termination of overtime, commission or bonus is provided in writing (i.e. a letter from an employer) or such termination is due to a change of employment, use the current YTD overtime, commission or bonus, do not annualize and add as a lump sum to the Current Total Annual Income. Regular Overtime, Bonus, Commissions 1. Use the last 4 to 6 weeks' paystubs, identify the year to date total earnings of the borrower. Subtract the Current Total Base Income (see above) to arrive at the total year to date extraordinary income. 14

15 2. Divide the year to date extraordinary income by the number of pay periods during which it was earned (to obtain an average). Multiply times the appropriate factor (Balance of year weeks, months, semimonths, etc.) for balance of year figure and add to actual YTD extraordinary income for annual income. 3. If the person has no other sources of income (for example: second jobs, interest, dividends, child support, alimony, public assistance), this will be the Current Total Annual Income. 4. Compare the total annual income in #2 above to Paystubs, VOE s, previous year s income per W-2's and tax returns. You should not find significant differences. In most cases, the Current Total Annual Income will be higher than the previous year's income. It will also generally be higher than the annualized year to date income. The variances should be attributable to increases/decreases in pay. Interest and Dividends 1. Use current earnings statements issued by the bank, investment broker or agent. Identify the year to date interest or dividend earnings. Divide by the investment term year to date (for an average) and multiply times appropriate factor to annualize the earnings. 2. If statements are not available, and the terms of the investment agreement are available, multiply the principal amount of the asset times the annual interest yield factor for a projected interest earnings amount. 3. If neither are available, use the previous year's earnings statements or tax returns to identify total annual interest and dividend income. If the assets are still invested in the same instruments, use the previous year's figure. 4. Add the result of the computation in either #1, #2 or #3 above to the Current Total Annual Income. Alimony and Child Support 1. Use the monthly amount appearing in the divorce decree, separation agreement or other support document. 2. If the borrower receives more than the amount stipulated in the agreements, use the monthly figure that the borrower declares and can be verified. 3. If the borrower receives less than the amount stipulated in the agreements and there is a verifiable history of the underpayments for at least 2 years (as evidenced by Court records), then use the past 2 years' historical monthly earnings. If there is no such history that can be verified, use the amount stipulated in #1 above. 4. Multiply the monthly amount of alimony or child support times 12. Add to the Current Total Annual Income (plus any other income sources). Pensions, Temporary Payments 1. Use the benefits statement issued by the benefits provider (pensions, workers compensation, disability compensation, social security, AFDC, etc.) to identify the amount of the benefit, payment frequency and expected term of the benefit. 15

16 2. Multiply the amount of the benefit times the payment frequency for the balance of year and add to actual YTD for an annualized amount. Add to the Current Total Annual Income (plus any other income sources). 3. If the benefit is absolutely not payable to the recipient beyond a given date (that means a complete and permanent stop of benefits without extensions, exceptions, waivers or other conditions) and such date is within 12 calendar months of the anticipated closing date, then calculate the benefits expected through the end of the benefits term. That will be the total annual income amount from the specific benefits source. Add to the Current Total Annual Income (plus any other income sources). Debt Ratios 1. FHA Loans - The maximum debt ratio cannot exceed 45.0% 2. Freddie Mac HFA Advantage Loans A maximum debt ratio up to 50.0% is permitted as long as the loan receives an Accept through Loan Product Advisor (LPA) or Approved/Eligible through Desktop Underwriter (DU). The Mortgage Credit Certificate may be used for credit qualifying purposes per Investor guidelines. Please Note: If a stricter policy is required by the GSEs or MI insurers, it must be adhered to. 16

17 FICO CREDIT SCORES AND DOWN PAYMENT ASSISTANCE Minimum FICO Credit Scores The program requires a minimum credit score of 640 (mid score must be at least the minimum) regardless of the type of loan. A borrower without a credit score may be eligible as long as an occupant borrrower(s) has a credit score that meets the minimum representative credit score requirement required by the Master Servicer. When all borrowers have a credit score they must meet the minimum representative credit score requirements. The middle score of the lowest-scoring borrower should be used to determine eligibility. If a tri-merged credit report is used, use the middle score. If a merged credit report only has only two scores, use the lower score. If a merge report only has only one score, that score must be used. FICO Credit Scores and Down Payment and Closing Cost Assistance LOAN TYPE FICO CREDIT SCORE REQUIREMENT ASSISTANCE AMOUNT FHA % FHA % USDA/RD, VA % Freddie Mac HFA Advantage % Please Note: If a stricter policy is required by the GSEs or MI insurers, it must be adhered to. 17

18 AUTOMATED AND MANUAL UNDERWRITING SYSTEMS FHA Acceptable Automated Underwriting Systems Loan Prospector (LP) Risk Class: Accept Recommendation Desktop Underwriter (DU) with an Approve/Eligible Recommendation Freddie Mac HFA Advantage Acceptable Underwriting Systems Freddie Mac HFA Advantage Loan Prospector (LP) Run as Home Possible Advantage for HFAs or Offering 251 Manual Underwriting Systems US Bank s guidelines are located can be found at Should the guidelines differ, the most restrictive requirements will apply. FHA loans is not permitted under any circumstances VA and USDA/RD loans is permitted. Must follow all Agency and Master Sevicer s guidelines. Freddie Mac HFA Advantage loans is permitted, however the LTV cannot exceed 95.0%. Must follow all Agency and Master Servicer s guidelines for Debt to Income Ratios. 18

19 SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS (Revised 12/10/18) MANDATORY PROGRAM TRAINING Lender training is mandatory for anyone working with this program. ehousingplus and US Bank provide program training online 24/7. To attend click on this link. ehousingplus ehportal and ehp Digital Docs Training We highly encourage anyone who will reserve funds, complete an underwriter certification, print forms or clear exceptions to attend this additional training. Click here for ehportal Training Click here for ehp Digital Docs Training ehportal USER CREDENTIALS Following completion of Program training at ehp University training, an will be sent to lenders giving directions on how to apply for User Credentials for the ehportal. These instructions are for both new users of system and existing users looking to add programs to their profile. QUALIFY Lenders use program requirements to qualify applicants for the program. Buyers must present an executed sales agreement before being entered into the program reservation system. RESERVE FIRST MORTGAGE FUNDS and ASSISTANCE To reserve funds, use the ehousingplus ehportal. Log in and reserve the first mortgage that automatically provides Assistance. To reserve funds in the program the borrower is required to have a signed real estate purchase contract for a specific address. You will need a 1003 and the Real Estate Purchase contract in order to make a reservation. If the reservation is successful, you will receive a loan number and a message that you ve completed the reservation successfully. IMPORTANT - A reservation is for a borrower with a real estate purchase contract for a specific property. If the property needs to change, the loan must be cancelled and re-reserved. The lender is responsible for cancelling the loan within the ehousingplus Lender Portal. And then, the lender must (services@ehousingplus.com) or call the ehousingplus Compliance office at to have the borrower permanently removed from the ehousingplus Lender Portal. Until this process is complete, the lender will not be able to re-reserve funds for the borrower. (Added 12/10/18) 19

20 FUNDING OF DOWN PAYMENT AND CLOSING COSTS ASSISTANCE You must complete, sign, scan, and the following documents to the Authority and US Bank National Association Global Trust Services, as Escrow Agent for the Authority. 1. Down Payment and Closing Cost Assistance Grant Wire Requisition Form 2. Underwriter s Certification Form 3. Closing Disclosure (all pages) 4. Wiring Instructions Please Note: All of the information on the forms must be accurate and cannot be handwritten except for the signature of the authorized signer. The Mortgage Loan must receive its Underwriter Certification prior to the request of DPA Grant Funds provided by the Authority. The Grant Wire Requisition Form requires the Lenders to include the FICO score used for the final credit approval. Please the documents listed above (with a subject line reference to "SCHFA DPA Grant Wire Requisition and Borrower's Last Name") no later than 10:00 a.m. Pacific Time at least two (2) business days prior to the Mortgage Loan closing to: US Bank National Association Global Corporate Trust Services 633 W. 5th Street, 24th Floor Los Angeles, CA Attention: Lorraine Goodson Telephone: (213) Fax: (213) And with a copy ed to (and with a subject line reference to "SCHFA DPA Grant Wire Requisition and Borrower's Last Name"): Attention: Bertha Mares Telephone: (213) Fax: (213) bertha.mares@usbank.com And to: Attention: Michael Popham Telephone: (213) Fax:(213) michael.popham@usbank.com And with a copy ed to the Authority (and with a Subject Line Reference to "SCHFA DPA Grant Wire Requisition and Borrower's Last Name"): Southern California Home Financing Authority c/o Community Development Commission of the County of Los Angeles 700 West Main Street Alhambra, CA Attention: Jewel Warren-Reed and Carmen Zamarripa and Silvia Delgadillo and Am Vuong Telephone: (626) Fax: (626) s: jewel.warren-reed@lacdc.org and carmen.zamarripa@lacdc.org and silvia.delgadillo@lacdc.org and and am.vuong@lacdc.org 20

21 A representative of the Authority will review the required documentation within four hours of receipt. A Reply to All on the Requisition "Authorized and Confirmed" after a representative of the Authority has confirmed the Mortgage Loan Number and Loan A mount on the website of the Compliance Administrator for the Program, ehousingplus. The Escrow Agent will rely solely on s received from Jewel Warren- R eed or Carmen Zamarripa or Silvia Delgadillo or Am Vuong for the purposes of approving your request to fund the DPA. The DPA Grant funds must be returned to the Authority s Escrow Agent if the Mortgage Loan closing does not occur within 1 (one) business day after the funds have been wired to the closing agent. The funds must be returned to the Escrow Agent using the following wire instructions: For: US Bank National Association ABA#: Acct #: BNF: US Bank Trust N.A. Attn: Lorraine Goodson (213) REF: Southern California HFA First Home Mortgage Escrow Account 21

22 LOAN CLOSING It is important to provide accurate closing instructions to closing agents. All program documents must be returned to you. At closing the borrower will sign the Mortgagor & Lender Certification Form and the Notice of Down Payment/Closing Cost Assistance Grant Letter. The originals remain with Lender, copy to borrower. Also include a copy of the Grant Letter to US Bank (with USB002) and in FHA Case Binder. Find all forms behind security at the ehousingplus web site. IT IS IMPORTANT that lenders have the borrower(s) sign the letter that meets requirements of (appears in the auto-fill Forms available for closing labeled as ) and retain original with copies to borrower, US Bank and a copy in the FHA Case Binder. COMPLIANCE FILE DELIVERY INSTRUCTIONS (ADDED 12/10/18) All compliance files are uploaded directly to ehousingplus via ehp Digital Docs. All exceptions / file deficiencies will be communicated to the Lender via and will be posted in the ehportal. Exceptions may be viewed online at the loan level and in an exceptions report. Documentation requested to clear file deficiencies are uploaded directly in ehp Digital Docs. ehp Digital Docs See pages of this guide for detailed information about ehp Digital Docs. (Added 12/10/18) 22

23 23 NEW INSTRUCTIONS FOR THE DELIVERY OF COMPLIANCE FILES, FEES AND CORRECTED DEFI S. Effective December 10, 2018 Compliance Files and Corrections to previously submitted files with erroneous or missing required documents will be managed through the NEW ehousingplus Digital Docs Portal. This NEW Portal provides lenders with all the tools necessary to deliver the required documents for the approval of the originated loan(s) in their respective affordable homebuyer programs. This Portal is a secure, easy to use and efficient way for lenders to deliver the Compliance File, Correct DEFI s and pay the required Compliance Review Fees via our new ehpay on line fee approval, and related tools. Who needs Access to ehp Digital Docs? Closers, Post-closers, Shippers, Defi/Exceptions and Accounting personnel. FIRST STEPS HELPFUL TIPS FOR UPLOADING THE COMPLIANCE FILE The site works best with the Google Chrome browser. All other browsers may encounter problems. If you cannot remember your password, you can reset from the ehp Digital Docs log in screen. You will need a Username and Password to access ehp Digital Docs a. If you are already an existing Active User of the ehportal Lender Portal, you will automatically be set up to use ehp Digital Docs. Your Username and Password will be the same, but you may be prompted to change the password if it does not meet security guidelines. b. If you are NEW to any of the ehousingplus Portals, you will need to request User Credentials at NEXT, ACCESS THE NEW EHP DIGITAL DOCS PORTAL As a participating lender to various programs, you already know that our website at is where you access both Program Info and the Systems. Click on the PROGRAM Tab and select the desired Agency s available Program(s). New Digital Delivery Instructions ehp Digital Docs ehousingplus

24 24 There are two icons you will immediately see: o This is the existing Lender Origination Portal o This is the NEW ehp Digital Docs Portal. NOW YOU ARE READY TO DELIVER YOUR COMPLIANCE FILE The Compliance File should be a PDF file composed of all required documents on the Checklist. Ø By clicking NEW UPLOAD on the Digital Docs Menu, you will be able to upload the file easily. Ø Currently, there are three file types you will upload into the new DD Portal: Compliance Files, DEFI s, and/or pre-closing documents as required. Additional uploads after the Compliance File are identified as Defis. Ø There is a NOTES Feature in case there is any pertinent information you want to add to the compliance documents. Ø Once Submitted, the System will confirm that the document was uploaded successfully, or it will present an error. Ø All Files Uploaded, can be seen immediately in UPLOADED DOCS. Ø All documents must be a PDF format and must not be locked or encrypted. Ø Documents must be uploaded upright and in a clear legible format. Ø Use the Checklist to make sure you are delivering al required documents. AND SUBMIT THE REQUIRED COMPLIANCE REVIEW FEE Ø Compliance Review Fees may now be submitted separately from the Compliance File. Ø The NEW ehpay is a secure, efficient method for lenders to pay the fees ON- LINE by enrolling in this FREE Program. Loans managed through ehpay are processed faster, without fee errors or other unnecessary delays. Accounting Staff can access ehp Digital Docs and process the compliance fees payment easily via ehpay. New Digital Delivery Instructions ehp Digital Docs ehousingplus

25 25 TIPS Not sure of the required fee for your loan? Use the FIND MY FEE feature under PAYMENT CENTRAL and get the instant answer. Ø Compliance Files Uploaded are NOT ready for review until the Compliance Review Fee Payment has been received by ehp. Ø FILES PENDING PAYMENT lists Compliance Files that have been uploaded successfully, but whose fee payment is still pending. Lenders can monitor this area to ensure their fees have been delivered in a timely manner. Ø UNIDENTIFIED PAYMENTS are payments received from your company without the proper identification to apply it to the intended loan. Lenders can monitor this area to ensure that payments made are being properly identified with OUR LOAN NUMBER. Ø SHORT PAYMENTS If an incomplete payment is submitted, it will be displayed indicating the amount paid and the correct fee amount. Ø Sign up for ehpay. This is a secure solution for the payment of fees. Talk to one of our ehousingplus Business Representatives about how you can sign up, and to answer any questions related to this new service Ø Make sure that every payment made is properly identified with OUR LOAN NUMBER. This is particularly a problem with Wires and ACH payments, as well as bundled payments. ACH/Wires do not properly identify loans in most cases and hold up the processing of your loans! Ø If submitting a paper check, print the INVOICE/RECEIPT. You can submit the fee for one or several loans at one time by attaching this receipt to your check. NOT QUITE READY TO UPLOAD YOUR COMPLIANCE FILES? During this initial transition of delivering Compliance Files Digitally on our NEW ehp Digital Docs portal, ehousingplus will continue to accept paper Compliance Files from those lenders that need a little extra time. If you are sending the paper files, please continue to ship them as you currently do to: ehousingplus 3050 Universal Boulevard, Suite 190 Weston, FL WE trust that you will soon be utilizing all the new features that have been developed to make the delivery of Compliance Files easier and less costly via our NEW ehp Digital Docs portal available for you, the participating lenders. New Digital Delivery Instructions ehp Digital Docs ehousingplus

26 26 CORRECTING DEFICIENT FILES ü AS OF 12/10/2018 CORRECTED LOAN DEFICIENCIES WILL NO LONGER BE ACCEPTED VIA . The ehportal (Lender Origination Portal) has various tools that alert lenders when a Compliance File is delivered DEFICIENT. These multiple tools assist you, the lender, in easily correcting these deficiencies and allow your file to be Compliance Approved in a timely manner. Ø System generated DEFI s sent at time of review with corrective actions. Ø Loan s TIMELINE Tab depicts pending deficiencies ANYTIME you log in and view your loan. Ø EXCEPTIONS/DEFICIENCY Reports are available on the REPORTS Menu. WHEN YOU ARE READY TO SUBMIT YOUR CORRECTED DEFI S OR MISSING DOCUMENTS NEW: The Corrected DEFI s will now be submitted and UPLOADED via ehp Digital Docs, using the same easy method the Compliance File is delivered. Log in to ehp DIGITAL DOCS Search for your loan NEW UPLOAD: select your file(s), and if prompted select Corrected DEFI as Type. The NOTES Feature is available to add any relevant information if needed. YOU RE DONE! Defi s may be uploaded as a lender receives a document. Corrected Defi s may be view in ehp Digital Docs under, Uploaded Docs. QUICK TIPS Ø Save time by trying to consolidate corrections to your loan files. Ø Working on DEFI s might be easier if grouped by loan & Program; typically, the same types of errors occur based on varying Program Criteria. Ø Use the reports available on the ehportal (EXCEPTIONS/DEFICIENCIES) as a guide and deliver them easy using ehp Digital Docs. New Digital Delivery Instructions ehp Digital Docs ehousingplus

27 SUBMIT MORTGAGE FILE & CREDIT PACKAGE TO SERVICER The Mortgage File including Credit Package and it is sent to US Bank. The US Bank Delivery and Funding Checklist is found within the US Bank web site. To locate the US Bank Checklist click on this link: Click on US Bank Lending Manuals. Pop-up box will appear, click on Continue. Web page will be redirected to US Bank AllRegs site. Click on Housing Finance Authority folder. Exceptions Lenders are notified by ehousingplus and US Bank of exceptions. Exceptions for both ehousingplus and US Bank are available in the ehportal. APPROVALS Following approval of Compliance File by ehousingplus, lenders are notified and reminded of the purchase deadline. 27

28 PROGRAM TIMELINE The borrowers must have a fully executed purchase contract for a specific property in order to have funds reserved or be on a waiting list. The contract may be dated prior to the date of the loan application. Borrowers may be pre-qualified. To assure that loans are purchased, please follow the Processing, Delivery and Purchase Timetable below. Please DO NOT reserve loans that cannot meet the timetable. If the loan is not Underwriter Certified within 15 days of loan reservation, the loan is subject to cancellation. ehousingplus via notifies lenders that the loan may be canceled if the Underwriter Certification is not completed. If the loan reservation is canceled at any point during the reservation, the Authority may allow the loan to be reinstated at the higher of the mortgage rate originally reserved or the then current program mortgage rate. Please wait until 45 days before closing to reserve funds for new construction, short sales and foreclosures. Loans not purchased within the timeframe below cannot be purchased. The revolving pool of funds assures continuous funding, therefore it is not necessary to rush to reserve funds. Loan Processing, Delivery and Purchase Timetable Once a loan is reserved in the ehousingplus system and is provided the Servicer s Loan number, the loan must be 1) Underwriter certified within 15 days of loan reservation. 2) Closed and delivered to the Servicer within 45 days of loan reservation and, 3) Purchased within 70 days of loan reservation. Requests for Extensions A Mortgage Loan not purchased within the 70 day period referenced above will not be eligible for purchase unless the Lender elects a one-time only 30 day extension. An extension fee of $375 will be imposed. The extension fee will be due whether or not a Mortgage Loan is ultimately delivered and/or purchased. The extension fee will be netted from the loan purchase price by the Master Servicer when the Mortgage Loan is purchased from the Lender. The Lender will be billed by the Authority if an extension is granted, and the Down Payment Assistance is funded and the related Mortgage Loan is not purchased by the required purchase date. The Authority may suspend any Lender with outstanding extension fees or unreimbursed Down Payment Assistance until the unpaid balance of extension fees, or Down Payment Assistance are paid in full. A request for an extension can be completed online at The request for an extension must be submitted BEFORE the 70th day. The Authority may suspend or terminate any Lender from further participation in the Program if the Lender has an excessive amount of canceled loan reservations of fails to deliver loans for purchase in a timely manner to the Master Servicer. 28

29 PROGRAM FEES AND LENDER COMPENSATION First Mortgage Loan Fees There is a 1.00% origination fee and 0% ZERO discount fee. Lenders cannot charge additional points. Lenders may charge reasonable and customary closing costs and fees in full disclosure in accordance with FHA, VA, USDA/RD, Freddie Mac and federal, state and local laws and regulations. ehousingplus Fees The program includes a first mortgage Compliance/Admin Fee of $250 and a penalty fee of $100 for files that are chronically deficient. The Compliance/Admin Fee is submitted with the Compliance File. Read pages of this guide for information about Payment Central located in ehp Digital Docs. (Rev 12/10/18) 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. 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(s). 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 pre-defined 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 and FICO credit score. US Bank, Master Servicer Fees $80 Tax Service Fee and $400 Funding Fee. These fees will be netted out at time of purchase by US Bank. (Rev 04/25/18) Lenders are permitted to charge reasonable and customary charges for out of pocket expenses and costs. Other financing costs such as legal fees and underwriting fees may be charged and courier fees may be charged if such fees are normally charged. Lenders may charge the usual and reasonable settlement costs. Settlement costs include titling and transfer costs, title insurance, survey fees or other similar costs. Other allowable fees include doc prep fees, notary fees, hazard, mortgage and life insurance premiums, recording or registration charges, prepaid escrow deposits and other similar charges allowable by the insurer/guarantor. "Junk" fees are not a defined term and may not be charged. Excessive fees are not permitted in the program. 29