10/23/17. Chenoa Fund Program

Transcription

1 10/23/17 Chenoa Fund Program

2 Disclaimer While every effort has been made to ensure the reliability of the webinar content, PRMG s product profiles and their updates, are the official statements of PRMG and in the event of discrepancies between the information in this webinar and the product profiles, the product profiles will always supersede the information provided here.

3 Chenoa Fund Program FHA 30 Year Fixed First Mortgage

4 Chenoa Fund Program Retail Channel Only Release date: February 1, 2017 Loans referred to AFS Division

5 Down Payment Assistance Chenoa Gift Up to 3.5% of the adjusted value of the property. Available to borrowers whose income is 115% AMI or less Chenoa Soft Second Forgivable DPA Up to 3.5% of the adjusted value of the property Available to borrowers whose income is at 115% AMI or less No monthly payments, the loan will be forgiven after the borrower has made 36 monthly payments on the First Mortgage. Chenoa Repayable Second 30-Year DPA Up to 3.5% of the adjusted value of the property Available to borrowers whose income exceeds 115% AMI 5% interest amortized monthly payments over a 30-year period

6 Program Highlights Program is available in all states except IL, MS, NY, SD, WV 30 year fixed Credit score 620 Purchase, Primary Residence Single Family Residences, PUD and Warrantable Condos

7 Loan Parameters No minimum loan amount The maximum loan amount is the lesser of $424,100 or the particular county s maximum HUD loan limit.

8 Borrower Requirements First time and non-first time homebuyers All borrowers must occupy the property as their primary residence within 60 days of closing Homebuyer education is not required Borrower may own another property at close of escrow

9 Program Fees and Documentation Chenoa Fund Program Origination points and non-bona-fide discount points are not allowed Standard PRMG Underwriting and Processing Fees to be charged Chenoa requires a soft credit pull or credit monitoring for all three credit bureaus within 10 days of closing

10 Appraisal Requirements One full appraisal is required

11 Maximum Program Compliance Income Limits: Borrowers whose qualifying income is less than or equal to 115% of AMI can receive the gift or soft second. Borrowers whose qualifying income exceeds 115% of AMI must use the repayable second Income used towards limits include only the qualifying income of the occupying borrower(s). In other words, whatever income on 1003 for any borrower occupying the property would be used. If there is a non-occupying borrower than that income is not counted toward the income MCCs: MCCs can only be used if the entity providing the MCC will allow CBC Mortgage Agency to purchase the FHA insured first mortgage. MCCs can be added to Gross Income PRMG does allow MCCs to be used to reduce payments Please Note: For additional information on MCCs please refer to program guidelines

12 Maximum Program Compliance Income Limits: 1. Log into HUD Area Median Income Site: Select the most recent fiscal year 3. Select button under Access Individual Income Limits Areas (Click Here for FY 20XX IL Information) 4. Select the state and county 5. Determine the generic median income number (located on the left hand side of the results screen under the column heading Median Income), do not be concerned with income listed in the columns based on the number of persons in family. 6. Multiply Median Income result by 115% to determine limit A worksheet to calculate 115% of median income can be found in the Resource Center ingauthoritydpaproducts/chenoa%20fund%20ami %20Calculator.xlsx

13 First Lien AUS Requirements Desktop Underwriter (DU) only allowed Approve/Eligible required The Agency AUS for the first lien must be included in the file Manual Underwriting is not allowed Loan Product Advisor (LPA) not allowed Chenoa Fund Program

14 Completing the 1003 with a Gift On page 1 of the 1003 form, select the following gift options from the Source of Down Payment dropdown: 1. FHA Gift Source Government Assistance 2. For the Explanation of Down Payment, Enter CBC Mortgage Agency Please review the DU and verify the Source of Down payment, explanation of down payment and amounts are correct in the Terms & Property section In the Assets Section please ensure the Asset Type is Gift and the cash value amount is correct 2 1

15 Completing the 1003 with a Gift On page 2 of the 1003 form, enter the following information VOD Screen Name: CBC Mortgage Agency Balance: Enter the Amount of the Gift in the balance field 2/17/16 Donor: CBC Mortgage Agency Borrower(s): 600 N 100 E Cedar City, UT FHA Case #: Gift Amount: $0.00 Gift Letter and Funding Obligation 600 N 100 E Cedar City, UT Tax ID # CBC Mortgage Agency is a governmental agency operating Chenoa Fund, a program that provides homeownership assistance to low-and moderate-income families through a gift for the down payment (Minimum Required Investment or MRI). Funds provided to the borrower under the Chenoa Fund are a bona-fide gift to the borrower and must be used to purchase the property located at:, 0 With a purchase price of: $ - The entire amount of the gift must be utilized towards the purchase of the property referenced above and may not result in cash back to the borrower(s) (except to reimburse borrower(s) for verified funds the borrower(s) has all ready paid such as earnest money, appraisal fees, credit report fees, etc.). In accordance with the procedures outlined in Mortgagee Letter , CBC Mortgage Agency, with this document, has incurred a legally enforceable obligation to provide the funds towards the borrower(s) MRI. The Lender should deliver funds for the MRI to the closing entity prior to or at the time of loan closing. CBCMA will reimburse Lender from funds legally belonging to CBCMA at or before closing under this obligation once the following conditions are met: The first mortgage associated with this assistance must be closed and delivered to CBCMA for purchase All purchase conditions for the first mortgage associated with this assistance have been satisfied. If these items are not delivered to CBCMA, this obligation will be void. WARNING: Failure of CBCMA to satisfy the obligation may result in a determination that the funds for the Borrower(s) MRI were provided by a prohibited source and the first mortgage obligation may not be insurable under the FHA insurance program. Sincerely, Borrower Acknowledgment Richard Ferguson President CBC Mortgage Agency X X

16 Completing 1003 Page 2 with a Gift (Continued): Complete the VOD fields as follows: 1. Enter the name of the agency followed by GIFT FUNDS in the name of Depository field 2. Select the Gifts Not Deposited option from the Account Type dropdown 3. Enter the reservation number in the Account Number field 4. Enter the amount of the gift in the Balance field 2 1

17 Entering Gift as a File Contact: The applicable agency must be indicated in the File Contacts section on the Tools tab 1 1. In locate the tools tab and select file contacts

18 Entering Gift as a File Contact: Locate a Custom Category 1. Select one of the Custom Category options available 1

19 Entering Gift as a File Contact: Access PRMG s business contact list by clicking on the lookup icon 1. Select the Down Payment option from the Category dropdown list 1

20 Entering Gift as a File Contact: 1. Locate the applicable agency and click on Select to update the main File Contact page 1

21 Closing Disclosure Gift Requirement: 1. The amount of the gift must be indicated in Section L on page 3 of the Closing Disclosure this is an agency requirement 2. All Final CDs are sent to the agency before closing 1 2

22 Entering Subordinate Financing on the 1 st TD if required: Forms -> Borrower Summary 1 1. Click the Sub. Financing Button 2. Enter your 2 nd Mortgage amount in the second mortgage field 3. Click OK 2 3

23 Lien Position and Down Payment: Forms -> Borrower Summary 1. Verify the lien position is correct for both the first and additional loans 2. Down Payment is the down payment in addition to the subordinate financing being utilized to complete the purchase 3. Verify the Subordinate Financing appears in VII details of Transaction 1 2 3

24 1003 Page 1 (Borrower Information) Borrower phone number must be completed CBC Mortgage Agency has partnered with Hope Loan Port, a HUD approved counseling agency, to provide borrowers with information, free counseling, and support after the borrowers have received their home loans in order to help borrowers better understand how and when their loan will be sold, let them know to whom they need to make their payments for which month, and to reassure them that none of their loan terms will change. They will also be available for counseling if borrowers encounter challenges or need help understanding the responsibilities of homeownership at no cost to them. In order to ensure all of our borrowers have a positive experience and to avoid the confusion that has resulted in the past from the multiple loan transfers after home purchase, CBCMA will need contact phone numbers for all borrowers prior to issuing closing documents. CBCMA will not issue a Funding Obligation Letter until they have a valid phone number, so if your 3.2 file does not contain the borrower s phone number, their staff will be reach out to you to get this number.

25 1003 Page 3 (VIII. Declarations): When completing the declarations section of the 1003 locate question H 1. Question H: Mark Y (Yes) for is any part of the down payment borrowed for borrower and co-borrower 1

26 Completing DU: Prior to running DU please verify Section 2 Terms & Property information are correct Section 5 Assets information is correct Reflect the amount and subordinate financing information are properly filled and carried over from FT Process your DU findings

27 Duplicating a loan for Subordination if Required: 1. Right mouse click on the loan you wish to duplicate 2. In the options menu select Duplicate Loan 1 2

28 Duplicating a loan for Subordination if Required: You are presented with three different duplication options: Duplicate the selected Loan Create a second lien using the data from the selected loan Create a second lien linked as a piggyback using the data from the selected loan 1. Select the folder where you would like the Duplicate Loan to reside 2. Click OK 2 1

29 Verifying a Lien Position and Down Payment on a Subordination if required: On the newly duplicated loan verify the Lien Position and Down payment information is correct Forms -> Borrower Summary 1. Verify the lien position is correct for both the first and additional loans 2. Down Payment is the down payment in addition to the subordinate financing being utilized to complete the purchase 1 2

30 Mavent Compliance: Subordinate financing may cause Mavent to Fail Support has access to the ATR/QM Eligibility screen which bypasses Mavent provided the circumstances are allowed

31 Chenoa Fund Repayable/Silent Second: Qualifying Income > 115% AMI 30-Year term 5% interest rate Requires monthly payment Payment must be included in housing ratio Borrower must indicate down payment borrowed in declarations section of 1003 (question H) MRI Funding Obligation Lender: ABC Lender Loan Application Number: FHA Case Number Borrower(s): John Doe Jane Doe Purchase Price of Property: $200, Property Address: 123 Main Street Anywhere, TN Form of Assistance: Soft Second Amount of Assistance: $7, Interest Rate (If Applicable): 0 Term (If Applicable): 360 Monthly Payment Amount (If Applicable): $0.00 Commitment Date: 11/10/ N 100 E Cedar City, UT As of the commitment date, CBC Mortgage Agency has incurred a legally enforceable obligation to provide the funds towards the Borrower(s) Minimum Required Investment. Lender should deliver funds for the MRI to the closing entity prior to or at the time of loan closing. CBCMA will reimburse Lender from funds legally belonging to CBCMA at or before closing under this obligation once the following conditions are met: The first mortgage associated with this assistance must be closed and delivered to CBCMA for purchase. All purchase conditions for the first mortgage associated with this assistance must be satisfied. If these items are not delivered to CBCMA, this obligation will be void. WARNING: Failure of CBCMA to satisfy the obligation may result in a determination that the funds for the Borrower(s) MRI were provided by a prohibited source and the first mortgage obligation may not be insurable under the FHA insurance program. Sincerely,

32 Chenoa Loan Process Details In Optimal Blue Locate the Chenoa 30 Year FHA fixed loan program and follow normal lock procedures locating the target rate and desired lock days (your loan is not locked until secondary completes the process with Chenoa) 2 Chenoa Fund Program 1. Complete the Chenoa Loan Registration Lock Request Form and send it to secondary@prmg.net This form will need to be completed in its entirety 1 2. If registering and floating lock only mark the check box located on top of the PDF form Special note: This form can be located in the resource center under: Chenoa Registration / Lock Request Form. Once completed Secondary will information to Chenoa

33 Secondary will export the FNMA 3.2 files sending them to directly to Chenoa Secondary will receive the following items from Chenoa: 1. Rate Lock Form 2. Funding Obligation Letter 3. Loan Estimate (LE) 4. Doc Request form (for use by closing) 5. Printable PDF initial disclosures (these must be sent to borrower by along with FT360 1 st mortgage disclosures during initial disclosure process by PRMG LO or Processor by secure . DO NOT WAIT UNTIL THE 3 rd BUSINESS DAY to request or complete this) 6. Disclose 1 st and Second together Secondary will you items above in addition to placing a copy inside the efolder for each loan respectively 1 st efolder Place Holders 1. Chenoa Lock Registration 2. Chenoa Documents 2 nd efolder Place Holders 1. Chenoa Lock Registration 2. Chenoa Documents Special Note: This is how initial disclosures for the 2 nd mortgage must be obtained (applies when not utilizing Chenoa gift option) and the disclosures must be sent to borrower by loan officer. Special Note: If disclosures are requested before 4:00 PM MST turn times from Chenoa are 2 hours. DO NOT WAIT UNTIL 4:00 PM MST. If locking locks must be submitted to secondary prior to 1:00 PM PST

34 IF THERE IS A VALID CHANGE OF CIRCUMSTANCE ALL FILES CONNECTED TO THIS TRANSACTION WILL NEED TO BE REDISCLOSED. ONCE THE CHANGE HAS BEEN MADE BY YOU IN ALL LOANS SECONDARY FOR UPDATED CHENOA DISCLOSURE DOCUMENTS Docs/Closing TO BE PROVIDE TO YOUR BORROWER

35 Chenoa Mortgagee Clause Chenoa Fund Program 1 st and 2 nd TD: PARAMOUNT RESIDENTIAL MORTGAGE GROUP, INC., ITS SUCCESSORS AND/OR ASSIGNS 1265 CORONA POINTE COURT, SUITE 301 CORONA, CA Loan #

36 Chenoa Title Policy Chenoa Fund Program You do not need a title policy for the second TD

37 Logging into Chenoa Fund Client Site Post Closing Only: Accessing the Chenoa Fund Login Page mber=&jobid=&cldd_loan=click Loan Application and Process 1. Enter your address 2. Enter Your Password 3. Click Logon

38 Logging into Chenoa Fund Client Site: 1. After the loan closes, using the proper Stacking Order, Post Closing uploads the credit file and closing packages (including the Collateral Package*) into the Client Portal. To login to the Client Portal, you will need to contact us for credentials or complete the form to the left 2. Originator sends the Collateral Package (including an Allonge endorsing note to CBCMA) to Originator s warehouse bank 3. Originator pays the FHA insurance fee and requests an FHA insurance endorsement. Evidence is uploaded by Originator into the Client Portal 4. The Mortgage Loan is underwritten and conditions sent to Originator 5. The Collateral Package* is sent to Chenoa Funds s warehouse bank from Originator s warehouse bank. 6. Any conditions are uploaded into the Client Portal for review. 7. Chenoa Fund provides purchase and reimbursement advice to Originator. 8. Chenoa Fund wires funds to Originator s warehouse bank 9. Originator sends a Goodbye letter to borrower and transfers MERS to Chenoa Fund 10. Upon endorsement, Originator transfers the FHA Case Number to Chenoa Fund

39 Loan Cancellation Cancel Reservation Notify Secondary Cancel Secondary cancellation request FT360 Upload cancellation request into FT360

40 Homebuyer Advantages DPA Not restricted to first time homebuyers Credit score as low as 620 May be layered with Mortgage Credit Certificate

41 Realtor or Lender Advantages Ability to offer DPA options Flexibility of financing More qualified borrowers=more closed loans Dream of homeownership a reality Increase in referrals

42 Resources Chenoa Fund Training Material is available in the PRMG University Training Portal. Chenoa Fund Product Profile is available in the Resource Center under Product Profiles Other Resources: Chenoa Program Guidelines:

43 Marketing Material PRMG Marketing Department

44 Questions?