2004B Single Family Mortgage Revenue Bond Program

Transcription

1 ALAMO AREA HOUSING FINANCE CORPORATION 2004B Single Family Mortgage Revenue Bond Program U.S. Bank Home Mortgage MRBP Division Master Servicer

2 USB Location ROCKSIDE ROAD BEDFORD, OH

3 Working with Housing Authorities is our Business Assisting and Educating First Time Homebuyers is our Expertise

4 WASHINGTON MONTANA NORTH DAKOTA MINNESOTA NEW HAMPSIRE VERMONT MAINE OREGON IDAHO WYOMING SOUTH DAKOTA WISCONSIN MICHIGAN NEW YORK MA NEBRASKA IOWA PENNSYLVANIA RI CALIFORNIA NEVADA UTAH ARIZONA COLORADO NEW MEXICO KANSAS OKLAHOMA OKLAHOMA MISSOURI ARKANSAS ILLINOIS INDIANA TENNESSEE OHIO KENTUCKY W. VA VIRGINIA NORTH CAROLINA SOUTH CAROLINA CT NJ DE MD MISSISSIPI ALABAMA GEORGIA Bond Production 68 Active Programs 55 Local, 13 State Annual Combined Bond Production $1.8 Billion TEXAS Combined Bond Servicing 126,052 Loans, $8.6 Billion LOUISIANA FLORIDA

5 Lender Support Program Support Lender Support Specialist Program Development Manager Exceptions Specialist Program Manager Loan Review Supervisor Underwriting Manager HFA Servicing Analyst

6 U.S. Bank Home Mortgage MRBP Division YOUR TEAM CONTACTS JoReatha Polk, Loan Review Supervisor (216) Laurel Kleinhenz, Lender Support Specialist (216) Darlene West, Exception Specialist (216) Kim Gigliotti, Loan Review Manager (216) Rita Connelly, Manager Underwriting (216) Shermaine Weathersby, Product Development (216) Sheryl Krocek, MRBP Client Executive (216)

7 The s of MRBs Mortgage Revenue Bond Programs

8 Mortgage Revenue Bond: A bond backed by a lien on the monthly payments of a large pool of mortgages, usually issued by a state or local housing authority. MRB financing is an important source of funds for the development of affordable housing. The MRB Programs provide mortgage financing for affordable housing through the sale of tax-exempt bonds. Primarily, for first time homebuyers who want to own and live in their own homes. Provide below-market interest rate loans and down payment assistance to eligible families who might not otherwise be able to purchase a home.

9 Participating mortgage lenders originate loans and then sell their loans to USBank (Master Servicer) who pools the loans and sells them to Ginnie Mae and Fannie Mae. USBank continues to service the loans on behalf of the HFA. USBHM is also the Administrator of this program. In addition to reviewing the mortgage loan file, the servicer must review other documents to determine that the loan qualifies within program regulations established by the IRS Code or the HFA.

10 Board of Directors for Housing Authority Obtains Bonds / Determine Funding Source & Volume for the Year Review the Requirements Regarding the Issue (Cost, Time Frames) Appoints Program Underwriter / Bond Counsel / Finance Group Obtain RFP s and Bids from Master Servicer and Trustee Determine WINNING Bids / Selects Master Servicer and Trustee Sends Lenders Invitations to Participate Bond Closing Occurs (Legal Documents Executed) Lender Training is Conducted Loan Origination Begins Lenders Close Loans Lenders Deliver Loans to USB (Master Servicer) Upon Compliance Approval & Review, U.S. Bank Purchases Loans USBank pools and securitizes loans

11 ALAMO AREA HFC 2004B

12 ALAMO AREA HFC 2004B Alamo Area HFC offers greater opportunity for low and moderate-income families to realize their dreams of owning a home through its First-Time Homebuyer Program FHA, VA, or USDA/RD Loan Products CONVENTIONAL Products Market or below market interest rates 30 year fixed rate mortgage 2-1 Buydowns permitted Down payment assistance grant 4% of Original Principal Balance

13 ALAMO AREA HFC 2004B Borrower Eligibility Must be first-time homebuyers Persons not owning a principal residence in the last three years Or, who purchases a home in a targeted area Targeted area is defined as an economically-distressed area as designated by HUD. (See census tracts) Must meet income and purchase price limits Income limits vary with the # of persons in the household and by county (reference Origination Guide material) Purchase price limits vary according to whether house is new or existing and if targeted or non-targeted (reference Origination Guide) Must be borrower s principal residence

14 ALAMO AREA HFC 2004B Secondary Financing USBHM must approve any type of secondary financing to be used in conjunction with the first mortgage. Documentation needed for approval includes: Program description Note Mortgage Completed Fannie Mae checklist

15 Fannie Secondary Financing Checklist 1. Does the combined loan-to-value ratio for the first and subordinate liens exceed 100%? Yes No If Yes, this element of the program would nevertheless comply with Fannie Mae guidelines if the answers to both of the following questions is No. Does the combined loan-to-value ratio exceed 105%? Yes No Does the program description fail to address how the second mortgage lien should be handled on the occurrence of a catastrophic event that results in the property s having to be sold? Yes No 2. Do the subsidized second mortgage documents include any conditions for declaration of a default other than the following? The borrower s failure to make any scheduled, periodic payments due under the subsidized second mortgage; The borrower s sale or transfer of the property in violation of the subsidy provider s policies. (Transfers that result from marriage, divorce, death of a spouse, or that are otherwise allowed under applicable federal law may not be a condition for default, although the subsidy provider may require the transferee to assume the transferor s obligations.); The borrower s failure to occupy the property as a principal residence; The subsidy provider s determination that the borrower misrepresented a required condition for obtaining the subsidized second mortgage (such as a misrepresentation of income); The borrower s cash-out refinancing or full repayment of the first mortgage; The first mortgage lender s declaration of default under the first mortgage; and The borrower s voluntary termination of his or her employment (for any reason other than disability), if the employer is providing the subsidy. Yes No

16 Fannie Mae checklist cont d 3. Does the subsidized second mortgage provide for negative amortization (accrual of interest during a period when payments are otherwise deferred)? Yes No 4. If interest is charged on the subsidized second mortgage, is the rate higher than the interest rate of the first mortgage? Yes No 5. If the subsidized second mortgage provides for the subsidy provider to share in any appreciation in the value of the property, does the subsidy provider s share exceed the percentage calculated by dividing the original principal balance of the subsidized second mortgage by the value of the property (as it was determined in connection with the origination of the first mortgage)? Yes No 6. If the subsidized second mortgage provides for the subsidy provider to share in any appreciation in the value of the property, is interest also charged on the subsidized second mortgage? Yes No 7. Does the subsidized second mortgage provide for a balloon payment that (1) is larger than the periodic payment required to amortize the loan and (2) becomes due and payable before the maturity date of the first mortgage? Yes No

17 Fannie Mae checklist cont d 8. Are there any covenants or restrictions recorded against the property (including, but not limited to, provisions in the subsidized second mortgage documents) that restrict the use and resale of the property, and which would not otherwise be terminated on foreclosure of the first mortgage or would reattach in connection with subsequent transfers of the property? Yes No 9. Will the subsidized second mortgage documents constitute a lien that is a prior lien to the first mortgage? Yes No 10. If the first mortgage is originated as a Fannie 3/2 mortgage or a Fannie 97 mortgage, is the downpayment from the borrower s own funds less than 3% of the purchase price of the property? Yes No If the first mortgage is originated as one of Fannie Mae s other conventional mortgage products (other than a Flexible 97 mortgage or a Flexible 100 mortgage), is the downpayment from the borrower s own funds less than 5% of the purchase price of the property? Yes No 11. Is the percentage downpayment from the borrower s own funds based on a subsidized sales price (I.e., the sales price to the borrower reduced by the amount of any downpayment assistance, such as that provided by the subsidized second mortgage)? Yes No

18

19 Documentation and Manuals Review Delivery and Funding Guidelines, Checklists, Forms, and Program Information in USBHM s Delivery & Funding Guide Share information with Originators, Closers & Shippers USBHM Contact Directory Provided

20 Use correct checklist for loan type being delivered Verify all documents are included in delivered loan file All documents should be complete, and correctly executed prior to shipping the loan file

21 Example

22 Delivery Instructions Provide Complete Contact Information and Wiring Instructions Submit closed Mortgage Loan File Loans must be shipped immediately after closing, within the required timeframes Advise borrower their loan will be sold to U.S.Bank 48 hour turnaround from receipt to purchase on exception free, compliance approved files Deliver loan files to: ROCKSIDE ROAD BEDFORD, OH

23 Program: Participating Lender: Mailing Address: Alamo Area 2004B U.S. Bank Home Mortgage Main Phone Number: *Customer 800 Number: *Required Contact Phone Administrative: Shipping Super: Shipping Staff: Shipping Staff: Fax # for above: address: Final Documents: Fax # for above: address: Do you have the ability to interim service loans? Yes NO (Requires loan purchase at original balance). Wire Instructions: ABA Number: Account Number: Bank Name: Purchase Advice Attn: Fax # for Purchase Advice: address: Please complete and fax to Attn: Ralph Pasterak

24 Loan File Review Process Loan files delivered receive a date stamp and logged into our system Loan files set up with a jeter file, labeled with our loan number Daily inventory reports are generated Files are pulled for review USBHM will thoroughly review the loan Exception free loans (compliance approved) are purchased If loan has exceptions Mortgage file exceptions are communicated by phone / fax / weekly recap report When exceptions are cleared, exceptions are removed, and the loan is purchased Loans are purchased daily, on an amortized basis Purchased summary / detail is faxed to lenders Purchased loans are transferred to U.S. Bank s servicing system

25 ORIGINAL NOTE: Endorsement to U.S. Bank N.A. Assignment to U.S. Bank N.A. COLLATERAL REVIEW PROCESS MERS Loan? Use MOM Docs / Include MIN number FHA/VA/USDA-RD Loans-Include case number-matches other docs Lender name is consistent with other documents in file If Borrowers undersign a name affidavit is required Borrowers typed name under their signature Co-Signers Rural Housing Loans Execute NOTE only FHA docs recommended

26 COLLATERAL REVIEW PROCESS MORTGAGE: Completed Mortgage (copy) all pages included Complete legal description matches appraisal All fields are completed to include, maturity date, marital status, notary section Tax Exempt Rider Any other applicable rider, (condo, pud, etc.) attached ASSIGNMENT: Completed Assignment (copy) - U.S. Bank N.A., its successors and or assigns as their interest may appear All fields completed, include names and signatures

27 LOAN REVIEW PROCESS Accrued per diem interest calculation on HUD-1 HUD I Escrow & Sales Price amounts are accurate Escrow reserves are required on all MRB Loans Assistance / 2 nd Mortgages listed on HUD-1 with correct amounts Appraiser s Certification signed by Appraiser Final Inspection clearing all noted repairs Sales / Purchase contract is in file Final Application included and signed by interviewer / borrowers All other required documents must be included in the loan file

28 First Payment Letter IRS Form 4506 Underwriter Approval W-9 Form Survey Final 1003 Final TIL Applicable Disclosures Loan Review Process

29 Hazard Insurance Loan Review Process Complete & Accurate Homeowners Information One year proof of payment, (POC = N/A) Sufficient dwelling coverage Flood Flood Certifications required Life of Loan Transferable to USBHM Proof of Insurance & Payment (if applicable)

30 Loan Review Process Property Taxes Submit complete information (Tax Certification and Title Commitment) to ensure timely loan purchase Provide proof of Tax Payment Mortgage Insurance Lenders are required to make monthly MI payments prior to loan purchase

31 Termite Reports Any infestation requires treatment Damage resulting from any previous infestation requires a structural engineer to assess the damage and make recommendations if repairs are required

32 Loans purchased daily / within 3 days of receipt Purchase Schedule faxed USBHM reimburses lender for DPA Net: fees (no checks) Pay loan amount, interest, & service release premium Reimburse DPA Net escrow amount Net transfer fee Applicable program fees 32

33 A U.S. Bank representative will contact you: PHONE FAX

34 Loan Purchase Setbacks Reasons for delay: Late delivery of Loan Files Mortgage or Compliance Exceptions Uninsured Loans (over 90) FHA- MIC VA- LGC USDA/RD- LNG Lender communication is the key to minimize delays in resolving issues Repurchase Obligation: Audit Findings Program Requirements Uninsurable loans

35 FHA LOANS: MCAW not included Proof of FHA insurance Loan Purchase Setbacks VA LOANS: VA form (Loan Guaranty) not included CONVENTIONAL LOANS: 1008 Special Feature Codes not listed / Product not clearly identified DU findings not included Insufficient MI coverage, or cert not included Homebuyer Education Certificate not included (product specific) USDA/RD LOANS: Loan Note Guaranty not included

36 Submission of File Exceptions Identify File Exceptions Provide separate cover sheet for each loan Include copy of report/letter identifying specific exception items Partial submissions are welcome

37 Organize documents according to checklist Due in 90 days A late fee of $50 will be assessed after 90 days Deliver to Document Control Rockside Road Bedford, Ohio Contact Final Doc Supervisor Darlene Kreigh darlene.kreigh@usbank.com (216)

38 Program Team Status of loan funding Status of documents received Program guidelines General information Originating Lender contacts: Supervisor: JoReatha Polk Lender Support Rep: Laurel Kleinhenz Exception Specialist: Darlene West

39 Note Endorsements / Assignments: U.S. BANK N.A. Lender Changes names, dba s etc.. Please Notify: Elaine Wojtowicz fax *MERS: *USB Mers ID # Hazard Insurance / Loss Payee Clause: U.S. BANK N.A. its successors and or assigns as their interest may appear. c/o U.S. Bank Home Mortgage P.O. Box 7298 Springfield, OH Borrower Payment Address and website: U.S. Bank Home Mortgage P.O. Box Bedford, OH

40 Monthly statement to borrowers instead of 12 month coupon booklet Borrowers can make payment online at and see payment transaction / loan information. Borrowers can make their payment directly at any U.S. Bank Branch

41 Thank you for attending & participating! We appreciate your commitment to Affordable Housing!