Own New Orleans Program Down Payment Loan (Amortizing 2nd Mortgage)

Transcription

1 Own New Orleans Program Down Payment Loan (Amortizing 2nd Mortgage) Program Issuer: Finance Authority of New Orleans ADMINISTRATOR S GUIDE Published on 08/15/17 Updated 12/12/18 Updates on Page 3

2 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!2 TABLE OF CONTENTS OWN NEW ORLEANS PROGRAM TEAM 4 CONTACT DIRECTORY 5 THE PRODUCTS 6 Own New Orleans First Mortgage 6 Own New Orleans Second Mortgage Down Payment Loan 6 Second Mortgage Disclosure Requirements 6 Program Rates and Reservation System Availability 7 FIRST MORTGAGE PROGRAM REQUIREMENTS 8 Eligible Borrowers 8 Eligible Loan Area 8 Minimum Credit Score 8 Homebuyer Education 8 Income Qualifying and Income Limits 8 Acquisition Price Limits 9 Property Requirements 9 ABOUT THE FINANCING 10 SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS 12 REQUEST DOWN PAYMENT ASSISTANCE FUNDS 13 ehp Digital Docs 14 PROGRAM TIMELINE 20 Loan Processing, Delivery and Purchase Timetable 20 Extension Request 20 PROGRAM FEES 21 First Mortgage Fees % origination fee and no discount fees permitted in the program. 21 Lender Compensation 22 PROGRAM FORMS PRINTED FROM THE ehousingplus LENDER PORTAL 23 DOCUMENTS REQUIRED FOR COMPLIANCE FILE 24

3 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!3 UPDATES TABLE Date Topic (effective immediately unless otherwise noted) Page Revised Property requirements to clarify condos Revised US Bank tax service fee effective04/30/ Revised income limits effective 04/01/18 Revised US Bank Tax Service Fee Revised Freddie Mac income limits effective 04/13/18 Corrected Freddie Mac HFA Advantage Loan Max DTI Ratio Added AIS Grant to guidelines 6, 8, 12, 13, Revised AIS Grant Income limits effective 07/29/ Removed USDA from allowable loan products 6, 8, Changed ehousingplus Lender Portal to: ehportal Added language for a lender to contact Agency (FHA, VA, RD, Freddie Mac) regarding ownership of other property Added Mortgage Insurance language under DTI requirement Added ehp Digital Docs Throughout , 14-18, 21, 24

4 ! FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!4 OWN NEW ORLEANS PROGRAM TEAM FANO, Participating Lenders, US Bank and ehousingplus Partnership Finance Authority of New Orleans (FANO) Program Issuer Creates the first mortgage program, the down payment assistance second mortgage program. Sets the rate, term and points, markets the program. FANO also solicits the participation of other counties and signs inter-local agreements with those choosing to participate. Participating Lenders Take applications, reserve in their own systems, process, underwrite, approve, fund, close and sell qualified loans to the program. Check with your company on how to reserve a program loan rate in your own system so that you have funds available for closing. Lenders are responsible for servicing first second program loans until they re purchased by the Master Servicer. U S Bank Master Servicer 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 and second mortgage loans. ehousingplus Program Administrator Maintains the program reservation system, websites, and posts guides, forms, training materials, provides training on compliance issues and system, answers program compliance questions, receives compliance files, reviews, posts and notifies of exceptions and approves compliance file.

5 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!5 Question General Program Compliance Questions Assistance with ehportal Assistance with User Credentials for ehportal Update an Underwriter Certified Loan Direct Questions to: ehousingplus (ehp) ehousingplus (ehp) CONTACT DIRECTORY (Rev 12/12/18) ehousingplus (ehp) Contact Information support@ehousingplus.com (954) support@ehousingplus.com Ashlynn Mosher (954) ext 261 ashlynne.mosher@ehousingplus.com Anyone at ehp Compliance Office services@ehousingplus.com Program Training ehousingplus (ehp) Click on this link to attend Program training. Program Training Issues ehousingplus (ehp) support@ehousingplus.com System Software Training for ehp Lender Portal ehousingplus (ehp) Click on this link for the once weekly Live Webinar: System Software Issues ehousingplus (ehp) support@ehousingplus.com Program Rates ehousingplus (ehp) Click on this link: to view the RATES/OFFERINGS tab. Credit Underwriting questions Questions regarding the shipping of closing loan files Questions regarding exceptions Participating Lenders need to refer to internal Underwriting Department or Manager 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 US Bank does not re-underwriter loans. For general questions, contact US Bank at hfa.programs@usbank.com 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. services@ehousingplus.com hfa.programs@usbank.com Debbie Kerr debbie.kerr@ehousingplus.com X216 hfa.communications@usbank.com

6 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!6 THE PRODUCTS Own New Orleans First Mortgage (Rates are subject to change, for current rate please visit ehousingplus.com) No defined limit for first mortgage funds -- continuously funded pool to be replenished and/or supplemented as loans are pooled and delivered. The borrower receives a 30-year, fixed rate, fully amortizing first mortgage loan with 360 level monthly payments. The participating lender will fund the first mortgage at closing and sell the loan to the program Master Servicer, US Bank. The following mortgage products are offered in this program: FHA, VA and Freddie Mac HFA Advantage conventional loan. US Bank provides the types of government and conventional loan products permitted. The program offers down payment and closing cost assistance in the form of a second mortgage. Own New Orleans Second Mortgage Down Payment Loan The assistance is in the form of a second mortgage, sized at 10% (but no more than $20,000) of the Acquisition Price as shown on the Real Estate purchase agreement. The second mortgage may be used for down payment, closing costs, prepaid, upfront private mortgage insurance and other related program and mortgage loan fees and expenses. The second mortgage proceeds may not be used to pay off debt, nor may any surplus funds from the second mortgage be paid to the homebuyer over and above any reimbursable fees paid prior to the close of escrow. The Second Mortgage offered with the program s First Mortgage Loans can provide up to 100% of the homebuyer s cash to close. The second mortgage is a 30-year, fixed rate fully amortizing loan. Principal payments are due monthly. This loan is never forgiven. FANO will fund the second mortgage at closing and US Bank will service the second mortgage. Second Mortgage Disclosure Requirements FANO s position is that its DPA Loans are subject to TILA and RESPA regulations. As a result, Participating Lender will be required to complete the TRID disclosures, specifically a Loan Estimate and Closing Disclosure for all DPA Loans. FANO has provided a TRID Letter and samples of the Loan Estimate and Closing Disclosure for the DPA Loan, these may be found within the ehousingplus Lender Portal Loan Forms section. Affordable Income Subsidy (AIS) Grant - Freddie Mac HFA Advantage Loan ONLY Borrowers using the Freddie Mac HFA Advantage Loan that meet specific income limits may be eligible for additional funds to help with down payment and closing costs. Effective with new loan reservations 06/01/18 and after, borrowers at or below 80% of the Area Median Income Limits as published by Freddie Mac are eligible for an additional grant in the amount of $1,500 and borrowers at or below 50% AMI will receive an additional grant of $2,500. The AIS Grant is reserved in the ehousingplus Lender Portal using the ADDITIONAL LOAN tab after the first mortgage is reserved. The AIS will be provided at closing by the Lender. The AIS funds must be used for down payment and closing cost assistance only. There is no repayment of the AIS Grant. Upon purchase of the loan, US Bank will reimburse the Lender for all qualified subsidies. The AIS must be reflected on Page 3, Section L of the CD as Affordable Income Subsidy. This AIS Grant must be reflected in DU or LP findings, along with the Grant provided by the FANO Own New Orleans 2nd Mortgage Down Payment Loan Program. Any questions about the preparation of the CD should be directed to US Bank HFA Division. (Added 05/18/18)

7 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!7 Program Rates and Reservation System Availability Rates and assistance will be posted on the ehousingplus web page by 9:00 am CT Monday-Friday excluding Holidays. New loan reservations are accepted Monday-Friday 9:00 am 4:00 pm CT excluding Holidays. All other functions: underwriter certification, print forms, view pipeline are available 24/7. Loan Product FICO Requirement Assistance Amount VA % FHA % Fredddie Mac HFA Advantage %

8 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!8 OWN NEW ORLEANS PROGRAM FIRST MORTGAGE PROGRAM REQUIREMENTS Eligible Borrowers There is no first-time homebuyer requirement in this program. Follow Agency (FHA, VA, Freddie Mac) and U.S. Bank guidelines for non-citizens. Buyers must occupy the property within 60 days of closing. Freddie Mac HFA Advantage Conventional Loan, a borrower CANNOT own other property at the time of closing. Applicants must be considered irrespective of age, race, color, religion, national origin. Lender should contact the Agency (FHA, VA, RD, Freddie Mac) regarding ownership of other property. (Rev 12/12/18) Eligible Loan Area Within the city limits of the City of New Orleans. Minimum Credit Score The program requires a minimum credit score (mid score must be at least the minimum). Different minimums apply to different products as shown on the previous page. If Agency guidelines (FHA, VA etc) or a participating lender s own requirements, are higher, then the highest requirement must be used. DTI Requirement The program maximum DTI ratio is 45% for Government loan products. The program maximum DTI ratio is 50% for the Freddie Mac HFA Advantage loan product. Contact US Bank HFA Division with any questions regarding acceptable AUS, Lenders must comply with Mortgage Insurance DTI requirements which may limit the maximum DTI for borrowers with a FICO under 700. (Rev 12/12/18) Homebuyer Education The Authority requires homebuyer education for first-time buyers. Borrower may select any certified non-profit homebuyer education provider from the Louisiana Homebuyer Education Collaborative. Click on this link for a list of the certified homebuyer organizations. Information is located on the homepage of the above listed web site. Income Qualifying and Income Limits FHA, VA and Freddie Mac Loans Use Form 1003 credit qualifying income as the qualifying income in the program. Effective with new loan reservations 04/01/18 and after. (Rev 04/11/18) FHA/VA Loans Freddie Mac HFA Advantage Loan $91,840 $104,960* *Lender must reserve loan using the maximum income of $91,840 and then call the ehousingplus compliance office to manually override the higher conventional loan income limit. (Rev 04/11/18)

9 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!9 Affordable Income Subsidy (AIS) Income Limits - Freddie Mac Loans ONLY (Added 05/18/18) Loan reservations 07/29/18 and after 80% AMI 50% AMI $52,480 $32,800 Acquisition Price Limits No acquisition/purchase price limits at this time. Agency (FHA, etc) limits apply. Property Requirements ALL PROPERTIES IN THIS PROGRAM MUST HAVE FLOOD INSURANCE. New or existing, one - two unit, detached or attached, condos*, town homes. Manufactured housing, mobile, recreational, seasonal or other types of vacation or non-permanent homes are not permitted. (Rev 12/01/15) Land may not exceed the size required to maintain basic livability. Properties purchased in the program must be residential units. * When using the Freddie Mac HFA Advantage conventional loan for a condo, LTVs from 95.01% to 97% are acceptable, the project must be approved by US Bank and must meet Freddie Mac guidelines. Review US Bank bulletin Condominium Guideline Expansion for complete details. (Rev 04/09/18)

10 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!10 ABOUT THE FINANCING It s expected that lenders have reviewed some preliminary documentation and believe that applicants will also qualify for credit. Excessive cancellations will be reviewed to assure that allocation is not being utilized inappropriately. FHA, VA, RD and Freddie Mac HFA Advantage conventional loans are permitted. Find the specific government and conventional loan products permitted on the US Bank website. Check with your underwriter for updates to information for Freddie Mac HFA Advantage. Such information is provided by a third party (i.e.freddie Mac, U.S. Bank, etc) who do not provide updated information to ehousingplus. Freddie Mac HFA Advantage Fact Sheet: hfa_factsheet.pdf AN IMPORTANT RULE If a topic is not addressed or detailed in these guidelines, IT IS NOT PERMITTED IN THE PROGRAM. Appraisal - The appraisal must indicate that the home has at least a 30-year remaining useful life. Assumptions - Follow Agency Guidelines. Buydowns - Follow Agency Guidelines. Cash Back - Cash Back to the borrower is not permitted. However, borrowers are permitted a reimbursement of pre-paids and overage of earnest money deposit as permitted by Agency guidelines and to the extent any minimum contribution, if any, has been satisfied. Construction to Perm - Not permitted. Co-signors - Co-signors are not permitted in this program. Manual Underwriting for FHA loans - See U.S. Bank bulletin effective with new reservations as of September 1, Minimum Borrower Contribution - Government loans, no minimum down payment required from the Borrower s own funds. Minimum Loan Amount - There is no minimum loan amount in this program. Prepayments - The first mortgage may be prepaid at any time without penalty. Recapture Tax - There is NO RECAPTURE TAX IN THIS PROGRAM.

11 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!11 Refinances - Refinances are not permitted in this program. However, temporary, bridge or construction loans with a term of 2 years or less may be taken out with a program loan. Seller Contributions - Follow Agency (FHA, etc.) guidelines.

12 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!12 SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS (Revised 12/12/18) 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. (Rev 12/12/18) 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 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 12/12/18) RESERVE AFFORDABLE INCOME SUBSIDY (AIS) GRANT INCOME QUALIFIED FREDDIE MAC HFA ADVANTAGE LOAN ONLY To reserve the Affordable Income Subsidy Grant funds, immediately following the first mortgage loan reservation, click on the Add Additional tab. The lender will be responsible for calculating the amount of the additional subsidy based upon borrower AMI (view AMI limits on page ) and enter that amount in the ADDITIONAL LOAN tab. The subsidy must be for the exact amount ($1500 or $2500) based upon borrower AMI - no more and no less. (Added 05/18/18) PROCESS Lenders process the loan as they would normally keeping in mind the program timelines.

13 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!13 UNDERWRITE AND CERTIFY Lenders underwrite & are responsible for credit decisions of the loans in the program. Servicer does not re-underwrite loans. Following credit approval AND WITHIN 15 DAYS OF LOAN RESERVATION, the Underwriter completes the online Underwriter Certification within the ehportal. Once a loan is Underwriter Certified no further changes can be made. If a change needs to occur after the certification is complete, please (services@ehousingplus.com) or call the ehousingplus Compliance office at to request to have the certification removed. REQUEST DOWN PAYMENT ASSISTANCE FUNDS DPA Wire Request Second Mortgage funds MUST be provided directly to the Closing Agent by FANO. not advance these funds. These requirements apply to all loan types. Lenders may Once the loan has been granted final approval internally, the Lender s Underwriter will complete the online Underwriter s Certification. With a minimum 2 business day notice prior to the Loan Closing Date, lender will the DPA Wire Request AND the Second Mortgage Gift Letter to: Carolyn Simmons at csimmons@financeauthority.org AND the following addresses: angela.fyssas-lear@whitneybank.com; erick.ranta@whitneybank.com Direct office telephone number for FANO is CLOSE It s important to provide accurate closing instructions to closing agents. All program documents must be returned to the lender. The following forms are located within the ehportal and must be signed by the borrower at closing: DPA Commitment Letter (the Original remains with Lender, provide a copy to borrower, copy to US Bank and a copy in the FHA Case Binder. FANO Second Mortgage and Note CLOSE - BORROWER RECEIVING AFFORDABLE INCOME SUBSIDY GRANT The lender will fund the additional Affordable Income Subsidy (AIS) grant at closing. It is critically important that the lender does NOT combine the grant assistance received from the FANO Own New Orleans DPA Grant Program with the AIS grant on the CD. The AIS must be reflected on Page 3, Section L of the CD as Affordable Income Subsidy. This AIS Grant must be reflected in DU or LP findings, along with the Grant provided by the FANO Own New Orleans 2nd Mortgage Down Payment Loan Program. Any questions about the preparation of the CD should be directed to US Bank HFA Division The AIS grant must be used for down payment and closing cost assistance only. ( Rev 05/18/18)

14 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!14 COMPLIANCE FILE DELIVERY INSTRUCTIONS 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. (Added 12/12/18) ehp Digital Docs See pages of this guide for detailed information about ehp Digital Docs. (Added 12/12/18)

15 15 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

16 16 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

17 17 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

18 18 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

19 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!19 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 All Regs site. Click on Housing Finance Authority folder. US BANK notifies lenders of Exceptions, posts exceptions online and sends a weekly summary of outstanding exceptions. APPROVALS Following approval of Compliance File by ehousingplus, lenders are notified and reminded of the purchase deadline.

20 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!20 PROGRAM TIMELINE Buyers must have a fully executed sales 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. Buyers may be pre-qualified. However, if the buyer does not have a contract on a property, program funds cannot be reserved for the buyer until such time as the buyer presents a valid contract. 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. This is particularly important with respect to new construction, foreclosures and short sales. Please wait to reserve funds until loans can meet the timelines below. Loans not purchased within the timeframe below, cannot be purchased. 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, and (2) purchased within 70 days of loan reservation. If the loan is not underwriter certified within 15 days of loan reservation, the loan is subject to cancellation. ehousingplus notifies lenders via that the loan may be canceled if the underwriter certification is not completed. Should the loan reservation be canceled at any point during the reservation, the issuer may allow the loan to be reinstated at the higher of the mortgage rate originally reserved or the current program mortgage rate. Extension Request Any loan not purchased within 70 days is ineligible for purchase unless the lender chooses a onetime only 30-day extension. The cost of the extension is $375. The $375 extension fee is due whether or not loans are ultimately delivered and/or purchased. The $375 will be netted by the Servicer when loans are purchased. If an extension is permitted, but the loan is not purchased, the originating lender will be billed for the extension fee of $375. Any outstanding fees owed by the lender may result in that Lender becoming ineligible to participate in the program. At 101 days, a loan that hasn t been purchased is cancelled and cannot be reinstated. Again, the 30-day extension is offered once per loan and no further extensions will be allowed. Furthermore, regardless of choosing an extension, any loan not purchased within the approved timeframe will become the liability of the originating lender. An extension request is available on the FANO ehousingplus web page. Click on the SUMMARY tab, scroll to the area titled, Extensions. Remember that the form must be submitted BEFORE the 70th day after loan reservation.

21 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!21 PROGRAM FEES First Mortgage Fees 1.00% origination fee and no discount fees permitted in the program. ehousingplus Fees The program includes a first mortgage Compliance/Admin Fee of $300 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 12/12/18) 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. 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, FICO score, special state, city, county program requirements for qualified military, first responders, teachers, etc.). US Bank Fees $80 Tax Service Fee and $400 Funding Fee. And a $175 Second Mortgage Servicing Fee. These fees will be netted out at time of purchase by US Bank. (Rev 04/07/18) FANO Fees $25 Wire transfer fee. 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.

22 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!22 Lender Compensation On each loan the lender receives 1.50% SRP for FHA, Freddie Mac loans and 1.00% SRP for VA loans paid by U.S. Bank at loan purchase. Loan Type SRP Origination Total FHA 1.50% 1.00% 2.50% VA 1.00% 1.00% 2.00% Freddie Mac 1.50% 1.00% 2.50%

23 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!23 PROGRAM FORMS PRINTED FROM THE ehousingplus LENDER PORTAL PRE-CLOSING FANO Sample Second Mortgage Loan Estimate FANO relies upon its participating lender to complete the Loan Estimate for the 2nd mortgage DPA Loan in compliance with TRID requirements. Lenders should consult their compliance and/or legal departments for assistance with questions related to the content of the forms prior to disclosure. DPA Wire Request After the Underwriter Certification has been completed in the ehousingplus lender portal, the lender may print, execute, scan and the DPA Wire Request to FANO 2 business days prior to closing. See page 11 of these guidelines for details. CLOSING FANO DPA Loan Commitment Letter Signed by the borrower. Original retained by the lender, copies to borrower and US Bank. FANO Second Mortgage and Note Signed by the borrower. Original recorded and shipped to US Bank. FANO Sample Second Mortgage Closing Disclosure FANO relies upon its participating lender to complete the Closing Disclosure for the 2nd mortgage DPA Loan in compliance with TRID requirements. Lenders should consult their compliance and/or legal departments for assistance with questions related to the content of the forms prior to disclosure. SHIPPING ehousingplus Compliance File Checklist ehousingplus has developed a checklist to be utilized after closing to assemble the Compliance File that is delivered to ehousingplus. The checklist is located in the ehp Lender Portal in the Loan Forms area.

24 FANO Own New Orleans Program - 2nd Mortgage Down Payment Loan Page!24 DOCUMENTS REQUIRED FOR COMPLIANCE FILE Read pages of this guide for information the compliance file submission to ehp Digital Docs. (Rev 12/12/18) These are the required documents for this program. For accuracy with the payment of the Compliance Review Fee, please visit PAYMENT CENTRAL and FIND MY FEE in ehp Digital Docs. Homebuyer Education Certificate Real Estate Purchase Contract FINAL SIGNED 1003 FINAL SIGNED CLOSING DISCLOSURE (TRID form) Warranty Deed