Oklahoma County Home Finance Authority Turnkey Mortgage Origination Program

Transcription

1 Oklahoma County Home Finance Authority Turnkey Mortgage Origination Program Administrator Guideline Published - January 4, 2013 Revised Revisions are shown on Page 3

2 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 2 TABLE OF CONTENTS REVISIONS TABLE 3 OKLAHOMA COUNTY HOME FINANCE AUTHORITY PROGRAM TEAM 4 THE PROGRAM PRODUCTS 5 Assisted Rate Loan with 3.50% Assistance Grant 5 PROGRAM REQUIREMENTS 6 Eligible Borrowers 6 Maximum Debt-to-Income (DTI) Ratio 6 Homebuyer Education 6 Income Limits Rev Eligible Area 6 Purchase Price Limits Rev Property Requirements 6 ABOUT THE FINANCING 7 THE PROCESS SUMMARY 8 PROCESS GUIDELINES FOR REQUESTING DOWN PAYMENT ASSISTANCE FUNDS 9 PROGRAM TIMETABLE 11 Loan Processing, Delivery and Purchase Timetable 11 Extension Request 11 ehousingplus WEB-BASED SYSTEM 12 PROGRAM FEES 13 First Mortgage Fees 13 DPA Funding Wire Fee 13 Lender Net 13 PROGRAM FORMS 14 NEW DOCUMENT REQUIRED FOR US BANK FILE 15

3 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 3 REVISIONS TABLE Date Pg 6, Income and Purchase Price Limits Changed Pg Guidelines for Requesting DPA Funds; DPA Funding Wire Fee Revised; Pg. 16 Sample Forms Pages 10 and 14, language updated to reflect t requirements Page 10, Further clarification on distribution of ML Page 11, Clarification of processing timetable

4 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 4 OKLAHOMA COUNTY HOME FINANCE AUTHORITY PROGRAM TEAM OKLAHOMA COUNTY HOME FINANCE AUTHORITY ( OCHFA or the Authority ) Creates and sponsors a first mortgage program and a down payment assistance program, sets the mortgage loan rate, term and points, and markets the program Participating Lenders Take applications, reserve in their own systems, process, underwrite, approve, fund, close and sell qualified home mortgage loans to the program. Lenders are responsible for servicing program loans in accordance with Agency requirements until they re purchased by the Master Servicer. US Bank Master Servicer or Servicer Provides information on acceptable loan products and delivery and funding, receives all first mortgage files, reviews first mortgage files, notifies lenders of first mortgage file exceptions, approves first mortgage files, purchases pools and delivers loans, delivers certificate. 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.

5 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 5 THE PROGRAM PRODUCTS PLEASE NOTE THAT RATES AND ASSISTANCE GRANT AMOUNTS ARE SUBJECT TO CHANGE AT ANY TIME. With respect to reserved loans, the rate and assistance will not change as long as loans are delivered according to the timetable included in this Guide. All loans in this program are Assisted Rate Loans. The following mortgage products are offered in this program: FHA, VA, USDA: RD. No conventional loans. US Bank provides the types of government loans permitted. Funds are available in a first-come, first-served revolving pool that provides continuous funding. Assisted Rate Loan with 3.50% Assistance Grant The borrower receives a 30-year, fixed rate, fully amortizing first mortgage loan with 360 level monthly payments as well as an Assistance payment equal to 3.50% of the original principal Note amount to apply toward down payment or closing costs. Current rates are available online within the system ehousingplus Lender Portal. Income and purchase price limits apply. The Assistance is calculated on the Note amount. The Assistance may be used for down payment or closing costs and prepaids. While there is no cash back in this program, the borrower may be reimbursed for any overpayment of escrow. Because the Assistance is a fixed percentage of the original principal amount of the mortgage loan, any remaining Assistance must be applied as a principal reduction. Assistance is in the form of a non-repayable grant. It is not repayable under any circumstances. When you reserve the first mortgage, the Assistance is automatically reserved. There is no additional reservation necessary. When you close the loan there are not second mortgages, second notes, deed restrictions or liens. There is no repayment. The Assistance will be funded by the Authority via electronic wire transfer either directly or from its agent. Lenders are advised that according to the HUD Manual ( Chapter 5, Section B, page 5-B-16): Lender must obtain and keep the documentation of the wire transfer in its mortgage loan application binder. While the document does not need to be provided in the insurance binder, it must be available for inspect by FHA s QAD when that office conducts its onsite review. Lenders are required to submit a Wire Transfer Request Form minimum of 2 business days prior to any loan closing date. The Wire Transfer Request Form may be found in the secure section of the ehousingplus Lender Portal. The Underwriter Certification must be completed prior to the submission of the Requisition Form. Follow instructions on the Requisition Form for delivery to the appropriate parties.

6 PROGRAM REQUIREMENTS Eligible Borrowers There is no first-time homebuyer requirement in this program. With regard to citizenship requirements, follow applicable Agency (FHA, VA, USDA;RD) Buyers must occupy the property within 60 days of closing. Applicants must be considered irrespective of age, race, color, religion, national origin Buyers must have a minimum FICO credit score of 640, the mid score must be the minimum or above. If an Agency (FHA, etc) has a higher minimum, follow Agency guidelines. If a participating lender has a higher minimum for other loans and wishes to require a higher minimum for loans, then lenders must use the higher minimum. For home buyers with NO FICO score, manual underwriting shall be permitted. Underwriters must follow the manual underwriting guidelines for the loan product. Maximum Debt-to-Income (DTI) Ratio The maximum DTI ratio is 45%. Homebuyer Education The Authority recommends but does not require homebuyer education. Income Limits Rev Use Form 1003 Credit Qualifying Income Maximum Income Limit = $86,100 Eligible Area Oklahoma County including Oklahoma City. OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 6 Purchase Price Limits Rev New or Existing Residence = $214,925 Must include everything paid by the buyer or on the buyer s behalf Property Requirements New or existing, one-four units, detached or attached, condos, town homes, manufactured homes that meet servicer/insurer/guarantor requirements. Mobile, recreational, seasonal or other types of vacation or non-permanent homes are not permitted. Land may not exceed the size required to maintain basic livability. Properties purchased in the program must be residential units.

7 ABOUT THE FINANCING The following mortgage products are currently offered in this program: FHA, VA, USDA;RD. No conventional loans. US Bank provides the types of government loans permitted. 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 program funds are not being utilized inappropriately. Appraisal The appraisal must indicate that the home has at least a 30 year remaining useful life. Asset test Asset tests are not required in this program. 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 prepaids 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. OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 7 Cosigners Permitted to the extent permitted by FHA. Treat cosigner/income as directed by FHA. A cosigner cannot reside in the property and cannot have any ownership interest in the property (they cannot be on the Mortgage/Deed/WarrantyDeed). 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. Refinances Refinances are not permitted in this program. However, temporary, bridge or construction loans with a term or 2 years or less may be taken out with a program loan. Remaining reserves are not established by the program. Follow Agency Guidelines.

8 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 8 THE PROCESS SUMMARY TRAIN Lender training provided by the Administrator and Servicer -- See TRAINING tab located on the ehousingplus web page for the OCHFA program. For programmatic information and program and system training -- ehp University is offered 24/7 -- username and passwords, added to notice directory once weekly on Wednesdays. For underwriting, delivery and funding information --US Bank also offers ongoing training. LENDER PORTAL USER CREDENTIALS Following ehp University training, Lenders apply for User Credentials on the ehousingplus website with instructions received in an the Wednesday following training. QUALIFY Lenders qualify applicants for the program. Buyers must present an executed sales agreement before being entered into the program reservation system. RESERVE To reserve funds in program s online system click on this link. Log in and reserve the first mortgage that automatically provides Assistance. You will receive a loan number and a message that you ve completed the reservation successfully. PROCESS Lenders process the loan as they would normally keeping in mind the program timelines. UNDERWRITE AND CERTIFY Lenders underwrite & are responsible for credit decisions of the loans in the program. Servicer does not reunderwrite loans. Following credit approval AND WITHIN 15 DAYS OF LOAN RESERVATION, Underwriter completes the online Underwriter Certification form. Access system on the ehousingplus website. REQUEST WIRE TRANSFER OF ASSISTANCE Lenders are required to submit a Wire Transfer Request Form a minimum of 2 business days prior to any loan closing date. The Wire Transfer Request Form may be found in the secure section of the ehousingplus.com website. Underwriter Certification must be completed prior to the submission of the Wire Transfer Request Form. See Page 9 of this guideline for details. CLOSE Lender closes loan. Notice of Down Payment and Closing Cost Assistance (gift letter acknowledgment) is signed at closing and retained by lender. Lender is also advised to keep documentation of wire transfer in its mortgage loan application binder. SHIP / SUBMIT Use the Compliance Checklist to assemble the Compliance File. The Compliance File is submitted directly to ehousingplus. The first mortgage file and credit package are submitted to US Bank. US Bank checklists are on their website. Recorded mortgage documents should be submitted to US Bank.

9 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 9 Added OKLAHOMA COUNTY HOME FINANCE AUTHORITY (OCHFA) PROCESS GUIDELINES FOR REQUESTING DOWN PAYMENT ASSISTANCE FUNDS Based on NEW HUD-mandated regulations, the Authority MUST provide DPA funds directly to the Closing Agent. The Lender may no longer advance these funds. These requirements apply to all loan types. The NEW process will become effective for all mortgage loans closed on and after January 24, 2013 and as follows: 1. Lender will reserve the first mortgage and any assistance as is being done today on the online system at: 2. Lender will process the loan(s) and update the information in the system as the loan moves through the pipeline. 3. Once the loan has been approved internally, the Lender s Underwriter will execute the Underwriter s Certification online. 4. After the Underwriter Certification has been completed, and with a scheduled closing date, the Lender s authorized representative must fill out and execute the DPA Grant Requisition own Payment Assistance Funding Request Form available in the system, under LOAN FORMS. 5. The DPA Grant Requisition Form must be printed, signed, and scanned in.pdf format. 6. Two (2) business days prior to funding, the Lender sends a complete, executed.pdf or scanned version of the DPA Grant Requisition Form, to the following addresses: dsuddath@bancfirst.com bancfirstct@bancfirst.com emcgee@ochfa.org 7. The DPA Grant Funds Requisition Form is reviewed. The Authority then will Reply to All on the Requisition Confirmed after a representative of the Authority has confirmed the Mortgage Loan number and amount on the website of the Program Compliance Administrator, ehousingplus. BancFirst, custodian for OCHFA, wires funds to the Closing Agent. Funds are wired directly to the Closing Agent/Title Company and NOT the Lender or Borrower. 8. Please make sure that instructions are provided to internal Processor/Closer and to the Title Company/Closing Agent. 9. If the Loan does not close on the Loan Closing Date indicated on the Request Form, Lender agrees to cause the funds to be returned to BancFirst for the credit of the Authority s account not later than the close of business on the business day following the Loan Closing Date. Wiring instructions for the return of funds are as follows: BancFirst; ABA ; Account Number: ; Attention: Trust Department; REF: Oklahoma County HFA 13 Turnkey Escrow Account

10 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 10 ehousingplus (ehp) goal is to facilitate this process and to provide Lenders the assistance needed to ensure the DPA Funds are available at each closing. Please make sure that ehp and the following addresses are added to your white lists/contacts as both systems generated and other s related to the DPA Grant Requisition will be sent: IT S IMPORTANT that lenders (1) 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; AND (2) have a copy of the wire or proof of the wire delivered to the Closing Agent. Lenders retain proof, place a copy of the proof in their FHA Case Binder and FOLLOW US BANK requirements (USB002). NOTE: The Lender will be required to repay the DPA Grant to the Authority if the mortgage loan is not ultimately pooled into a GNMA Certificate sold to the Authority under the program.

11 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 11 PROGRAM TIMETABLE Rev Red bolded paragraph below 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. 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. 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 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. Fund availability makes it unnecessary 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. Extension Request Any loan not purchased within 70 days is ineligible for purchase unless the lender chooses a one-time 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 delivered is cancelled and cannot be reinstated. Again, the 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. To the extent that Assistance is advanced on loans that do not close, are not purchased by the Servicer under the program or are to be repurchased by the lender prior to being pooled into a mortgage-backed security, the lender will be required to reimburse the City with respect to such Assistance so advanced. An extension request is available on the ehousingplus web page for the Denver MMA Plus Program, click on this link. Then 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.

12 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 12 ehousingplus WEB-BASED SYSTEM (Reserve, View Your Pipeline, View or Run Reports, Review Exceptions) This represents a brief presentation of information available to lenders. The ehousingplus online system is called the lender portal. There is an online Chat feature, which is the easiest way to receive answers for your questions about the use of the system. You do not need a username and password to access the program guidelines or training materials. Click here for the ehousingplus OCHFA web page, then click on the SUMMARY tab to view the Administrator Guidelines. Click here to attend program training, click on the TRAINING tab. You do need a username and password to log in and reserve money for a borrower and to print forms that are auto-filled and printed ready for execution or to run a variety of reports. These reports offer an opportunity to truly manage your pipeline. To make a reservation, complete and underwriter certification, check your pipeline, view allocation and print program forms click on this link. The system is live and available 24/7 with the exception of scheduled and unscheduled maintenance. When you reserve a loan, it is immediately reflected in the remaining available funds. When you cancel a loan, funds are immediately reflected and available. Program funds are locked for a buyer when a reservation is submitted on and accepted by the system and a loan number is obtained. All loans must be registered through the ehousingplus Website. Complete the reservation screens online and submit. Reservations submitted correctly receive a loan number that becomes the loan number for the life of the loan. If submitted incorrectly, there is instant online feedback identifying non-compliance and/or missing information issues. The security features control the information each user can access. For example, only Underwriters may access the Underwriter Certification. The Underwriter Certification serves as the pre-approval process and is implemented by the lender s Underwriter. In this program, the Underwriter will simply be verifying data that has already been input into the system (i.e. property address, borrower name, loan amount, etc) and making changes where necessary. To reserve funds in the ehousingplus Lender Portal, click on this link. Log in and reserve the first mortgage that automatically provides assistance. You will receive a loan number and a message that you ve completed the reservation successfully.

13 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 13 PROGRAM FEES First Mortgage Fees There are zero origination and zero discount fees in this program. No additional points may be charged. The program includes a Compliance Fee of $225. The fee is payable at closing and remitted to ehousingplus with the Compliance File. The fee must be disclosed on the HUD-1 as being paid to ehousingplus and can t be financed. US Bank fees of $85 Tax Service Fee and $200 Funding Fee are payable at closing. Both must be disclosed on the HUD-1 as being paid to US Bank. They will be netted at loan closing and can t be financed. DPA Funding Wire Fee OCHFA will pay the $25 DPA Wire fee. As of Feb. 8, 2013 the $25 DPA wire fee will NOT be netted from the DPA wire amount. 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. Lender Net On each loan the lender receives 2.00% SRP for FHA and USDA: RD loans and 1.50% SRP for VA loans paid by US Bank on loan purchase.

14 PROGRAM FORMS PRE-CLOSING Extension Request Form An extension request is available here. Click on the SUMMARY tab and scroll down to the area titled - PROGRAM DOCUMENTS. The extension request will be completed and submitted online. DPA Grant Requisition Form Underwriter Certification must be completed prior to submission of the Requisition Form. The Requisition Form is available in the ehousingplus Lender Portal behind security, click on this link. See page 10 of these guidelines for a complete explanation.. CLOSING DOCUMENT Notice of Down Payment and Closing Cost Assistance Rev Now fulfills requirements. Auto-fills from Forms on website. Prints ready for signature. Original to Lender, copies to Borrower, US Bank (follow most recent Bulletin) and one copy for the FHA case binder. Compliance File Checklist Available online DOCUMENTS REQUIRED FOR COMPLIANCE FILE Copies of the following: Real Estate Purchase Agreement Complete Agreement including any addendums. All signed and dated by all parties. Final Typed Loan Application (Form 1003) The typed application signed and dated by all parties is required. Loan interviewer must complete and sign page 3 of 4 of the If this is not possible, then an Officer must sign in place of the interviewer. HUD-1 Settlement Statement Buyer, seller and closing agent must fully execute the HUD-1. Borrowers on the HUD-1 must be all persons taking title to the property and match other documents. Persons not taking title to the property may not be named or sign the HUD-1. The TBA Application Fee must be shown as being payable to ehousingplus and US Bank fees must be disclosed as being paid to US Bank.. Please do not bundle charges. Itemize all charges to the transaction. Payoffs of other debt must appear on Page 1 under Section 100 of the HUD-1 as part of "Settlement Costs". Warranty Deed A copy of the Warranty Deed is required. OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 14

15 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 15 NEW DOCUMENT REQUIRED FOR US BANK FILE Effective for all loans CLOSING on or after July 1, 2013 Down Payment Assistance Funding Verification Form - USB002 IT IS IMPORTANT that lenders receive a copy of the DPA Requisition wire. Lenders retain a copy of the wire, place a copy of the wire in their FHA Case Binder AND also must submit a copy of the wire to US Bank as an attachment to the Down Payment Assistance Funding Verification Form - USB001 and placed in the Mortgage File as per the US Bank delivery checklist. This form may be found on the US Bank ALL Regs web site. Click on this link: mrbp_division.cfm 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 Click Oklahoma Click Oklahoma County Home Finance Authority

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