OPEN MORTGAGE. October 22, 2015

Transcription

1 OPEN MORTGAGE October 22, 2015

2 Borrower Eligibility All occupying Borrowers 18 years or older and Non- Purchasing Spouse must be a first-time homebuyer Household income is within NIFA s Income limit Purchase price must be at or below purchase price limit Borrowers must meet the 2 credit overlays (credit score & DTI)

3 First Time Buyer Definition Cannot have owned a home and lived in it as their principal residence within the past 3 years Borrower can own investment properties as long as they have not lived in them during the past 3 year period If buying in a target area, first-time requirement does not apply If borrower is a qualified veteran, first-time requirement does not apply

4 Exceptions to First-Time Requirement NIFA can make exceptions on 5% of loans within each bond issue Divorce Need a copy of the divorce decree or property settlement agreement. Borrower must give up their interest in the property and receive no sale proceeds Forced Job Relocation Need letter from employer. Transfer must be from same employer Natural Disaster Need insurance claim evidencing loss of home by tornado, flood, fire, etc.

5 Credit Overlays Government & 95% or less Conventional Loans Minimum credit score 640 (no exceptions) Alternative credit allowed for no score borrowers only Maximum DTI is 45% (no exceptions) Conventional 97% Loans Minimum credit score 680 Please refer to US Bank s bulletin for additional overlays on 97% loans Maximum DTI is 45% (no exceptions)

6 Homebuyer Education Required on all NIFA loans for all occupying borrowers on the Note Names & Signatures on completion certificates must match Borrowers must complete by closing Certificates are valid for 12 months from issuance REACH face-to-face education is preferred ( On-line course is acceptable (Homebuyer FUNDS, Essent, Genworth or MGIC websites)

7 APPROVED MI COMPANY PROVIDERS Essent Guaranty Genworth Financial MGIC United Guaranty

8 Mortgage Rates (effective October 21, 2015) Program Name Government Rate Conventional Rate Military Home 3.00 NA First Home Plus First Home Focused Homebuyers Assistance (HBA) st rate nd rate st rate nd rate -Rates are subject to change without prior notice -All rates are at par (no origination fee) -Loan reservations are valid for 60 days -Extended reservations for new construction only are valid for 150 days -Conventional rate (HFA Preferred product only) includes Fannie Mae adverse market fee

9 NIFA Programs Homebuyer s Assistance (HBA) Military Home First Home Plus First Home Focused

10 Homebuyers Assistance (HBA) Program Provides down payment & closing cost assistance 2 nd mortgage interest rate is 1% HBA 2 nd amount is up to 5% of the purchase price (can be less as needed) 2 nd mortgage term is 10 years (120 months) Minimum borrower investment of $1,000 (gift funds are allowed)

11 HBA Program Government (FHA, RD & VA) and conventional loans are eligible All 1 st mortgage underwriting guidelines must be satisfied No cash back policy. Prorated taxes must be used to reduce 2 nd mortgage loan amount

12 HBA Program Forms Lenders are required to complete the same federal disclosures for the 2 nd mortgage (Loan Estimate and Closing Disclosure) NIFA program forms: Form F (Notice signed at application) Form G (Note signed at closing) Form H (Deed of Trust signed at closing) Closing Approval Request (Lender submits prior to closing) Form J (HBA Borrower Acknowledgement Letter is signed at Closing & must be included in FHA Case Binder)

13 Form F HBA Notice to Borrower Is a Disclosure provided at Loan Application Signed by Borrower, Co-Borrower & Non- Purchasing Spouse Must be included in loan file sent to US Bank for purchase

14 Form G HBA Second Promissory Note Includes final HBA 2 nd mortgage loan amount Has interest rate of 1% Amortized over 10 years (120 months) Signed by Borrower, Co-Borrower & Co-Signor

15 Form H HBA Second Deed of Trust Includes final HBA 2 nd mortgage loan amount Signed by Borrower, Co-Borrower, Non-Purchasing Spouse & Non-Occupying Spouse Co-Signors cannot be on DOT

16 Form J Borrower Acknowledgement Letter Signed by all borrowers at closing HBA 2 nd Loan amount must match the HBA Note, HBA Deed of Trust and Closing Disclosure Form J must be included in the FHA case binder and closed loan file sent to US Bank

17 HBA Payments Lender provides a First Payment Letter for HBA 2 nd mortgage loan with same first payment dates as 1 st mortgage If 1 st or subsequent payments become due before the loan is purchased, lender also collects HBA 2 nd mortgage payment(s)

18 Military Home Program Program was developed to support Nebraska military Program provides NIFA s lowest possible rate Active military can be in any branch of military Qualified veterans may have served in any branch of the military & can be on active duty again (the same or a different branch)

19 Military Home Program To qualify, must be: 1) active military or 2) qualified veteran Active military includes Air Force, Army, Navy, Marines, Coast Guard, National Guard and Reserves. First-time buyer requirement must be met except for target areas. Qualified veteran is defined by the federal government (not NIFA) within the meaning of 38 U.S.C. Section 101. Must have served in the active military and has been discharged or released from the service under conditions other than dishonorable. Veteran does not have to be a first-time buyer.

20 Military Home Program VA, FHA and RD loans are eligible For active military borrowers, NIFA must receive the most recent Leave and Earnings Statement (LES) with the preclosing file For qualified veterans, NIFA must receive an executed Form I and Certificate of Release or Discharge from Active Duty Form (DD Form 214) with the pre-closing file Military borrowers without VA eligibility can still use the Program by using an FHA or RD loan

21 Form I Veteran s Exception Use when Borrower meets the Veteran s Exception definition so does not need to be a first-time homebuyer status. Must include a copy of Borrower s DD-214 Not to be used if Borrower is active military unless borrower has been honorably discharged and is on active duty again Is executed by the Borrower

22 First Home Plus Program 1 st mortgage loan only Government and conventional loans are eligible For properties located in a non-target area

23 First Home Focused Program 1 st mortgage loan only Government and conventional loans are eligible Properties located in federally designated target area (Lancaster, Douglas, Adams, Jefferson & Scotts Bluff Counties) First-time buyer requirement does not apply when property is located in a target area Income and purchase price limits are higher

24 Loan Products Fannie Mae HFA Preferred loans only FHA 203b FHA 203k streamline (lender must be approved by US Bank Home Mortgage) VA Rural Development (RD)

25 HFA Preferred 95.01%-97% Max LTV/CLTV 97%/105% Eligible Products Purchases and No Cash-out Refinances Eligible Properties Single-Family Residences (includes Attached PUD s/townhomes) Ineligible Properties Condominiums and Manufactured Homes Minimum FICO Score Maximum DTI 45% Maximum Loan Term 30 year Primary MI 680 FICO = Charter Minimum NO Manual Underwrites NOTE: These underwriting standards apply regardless of DU Response and are subject to HFA overlays

26 HFA Preferred 95.01%-97% For guidelines on Conventional loans with an LTV s = to 95% or below 95% please refer to the U.S. Bank Lender guide at mrbp.usbank.com All 95.01% to 97% Conventional LTV loans will be underwritten by U.S. Bank, unless prior approval was given to Lender for delegated underwriting authority ALL Conventional loans with an LTV from 95.01% to 97% are subject to the guidelines covered in this presentation, whether underwritten by U.S. Bank or by lenders with delegated underwriting authority Lenders can obtain these guidelines as well as the 97% Loan Underwriting Submission Checklist from the HFA Division website at mrbp.usbank.com

27 HFA Preferred 95.01%-97% Loans are required to be run through Desktop Underwriter (DU), utilizing the HFA Preferred loan product ONLY Lenders that currently utilize FNMA DU will continue to assign loans in their own names Those that are not currently Seller/Servicers of FNMA will run DU with U.S. Bank Home Mortgage, MRBP Division as sponsor and final assign Please contact the HFA Division Help Desk at or if you need assistance with sponsorship Loan Prospector (LP) is not acceptable Manual Underwriting is not permitted Only Approve/Eligible findings are permitted, no exceptions

28 HFA Preferred 95.01%-97% USBHM charges an underwriting fee of $ The $300 underwriting fee will be netted out at funding Lenders will receive a quarterly billing statement for loans that do not close Ship file to: U.S. Bank Home Mortgage Attn: Underwriting Department Rockside Road Bedford, Ohio Mail Code: CN-OH-R2FR

29 Program Forms Used with All NIFA Loans

30 Form A Household Verification Includes number in the household Number over/under 18 Number with a source of income If a tax return was not filed in any year, must state an acceptable reason (didn t earn enough to file, did not live in the US, etc.) Signed by all occupants 18+ years old, including non-purchasing occupants

31 Form B Borrower Affidavit Is a Closing Form to be submitted with Post-Closing Package Signed by Borrower, Co-Borrower and Non-Purchasing Spouse Final Income Worksheet must be attached

32 Form C Certificate of Seller Signed at closing by the Seller Document affirms the sale price and there are no other side agreements between Buyer and Seller If property is sold by auction, HUD repo, etc., Buyer can execute the document

33 Form D Recapture Tax - Initial Initial Disclosure is signed at Loan Application Includes applicant names, the estimated loan amount, maximum recapture tax potential, property address, county and if it is located in a target or non-target area Must be signed by all Borrowers and Non-Purchasing Spouse Not signed by Co-Signers or Non-Purchasing Occupant

34 Form D Recapture Tax-Final the Final Disclosure is signed at Closing Includes applicant names, the actual (final) loan amount, maximum recapture tax potential, property address, county and if it is located in a target or non-target area Must be signed by all Borrowers and Non-Purchasing Spouse Not signed by Co-Signers or Non-Purchasing Occupant

35 Final Form D Making Corrections After Closing, corrections to Final Form D do not need to be initialed by the Borrower(s) Send corrected document to Borrower(s) with a cover letter of explanation Copies of both must be submitted to NIFA to clear condition

36 Must fill in & correct before closing after last minute change

37 Recapture Tax Reimbursement Policy NIFA will reimburse recapture tax if: Borrower closed their NIFA loan on or after June 1, 2004 Borrower s NIFA loan is active at the time when property is sold (hasn t been refinanced) Borrower submits claim to NIFA by July 15 th following the year the home was sold NIFA will refund actual amount of recapture tax due to the IRS

38 Forms E-1, E-2 & E-3 Tax Exempt Riders Form E-1 is the rider to be used with FHA loans Form E-2 is the rider to be used with VA loans Form E-3 is the rider to be used with Conventional and RD loans Must be recorded with the 1 st mortgage Deed of Trust If corrections need to be made after closing, follow the same process as correcting the Deed of Trust

39 Forms & Required Signatures

40 Allowable Closing Costs GOVERNMENT & CONVENTIONAL LOANS Reserved On & After

41 Allowable Closing Costs GOVERNMENT & CONVENTIONAL LOANS Reserved On & After

42 NIFA Pre-Closing Approval NIFA s Pre-Closing Review includes: Determining the borrowers are first time buyers or qualify for a waiver Determining the household size Calculating total household income and that it is at or below the limit Determining the purchase price is at or below the limit NIFA s Final Income Worksheet will be uploaded into LOL once the file is (pre) approved

43 Household Income Must include all income sources for all household members who will occupy the property and are 18 years of age & older NIFA is required to project income out for next 12 months Include full-time, part-time, seasonal, temporary, selfemployment Also child support and alimony

44 Household Income Must use more than base income. Also include: Overtime Bonus Commission Shift Differential Salary in lieu of Benefits Interest income is calculated on assets & converted to monthly income Income calculated by your Underwriter should be equal to or less than NIFA s calculated household income

45 Income Documentation Need current paystubs and VOE s for each job SSI Awards Letter for current year Current statement for each asset account (savings, checking, retirement, 401k, investment) Federal Tax Return & YTD Profit & Loss for self-employed

46 Self-Employed Borrower Most Recent Tax Return or Tax Transcript W-2 s and 1099 s Current YTD Profit & Loss (Affidavit IV) Current K-1, if applicable Business Use of Home (Affidavit I) if applicable

47 Paystubs Must meet 120 day validity standard Must cover recent consecutive 30-day period Need 1 if paid monthly Need 2 if paid bi-monthly Need 4 if paid weekly Require paystubs for every job Review for asset information

48 VOE s Required for each current job held Must be complete and include current year & previous year(s) income history Termination VOE s required on all previous employment unless start and end date are on Loan Application Work Number requires use of pin number to get income information

49 Asset Statements Statements are required for ALL assets. Look for: Loan application Bank accounts listed Paychecks stubs deductions Bank statements Transfers between accounts Automatic deposits Tax returns Interest and dividends Asset statements Transfers or automatic deposits

50 IRS Tax Transcripts Must include: -Type of form filed and the tax year -Borrower name(s) -Borrower social security number(s) Tax transcripts do NOT need to be signed by the borrower(s) Need from and executed by borrower, co-borrower and non-purchasing spouse Order from the IRS at when borrower(s) have not kept a copy of their federal return

51 Federal Tax Returns Type of form filed Verify social security numbers Need from and executed by borrower, co-borrower and non-purchasing spouse Current year s W2s Self employment income Additional asset accounts not listed on application Type of deduction taken

52 NIFA Deposits Policy Two months of current bank statements required VOD s are no longer allowed Large unidentified single deposits of $500 or more Recurring/periodic deposits Borrower to execute Affidavit 5 Borrower Letter of Explanation

53 Affidavit 5 Borrower Letter of Explanation Used to explain the following situations: Unidentified transfers between asset accounts Unidentified one-time deposits or transfers of $500 or more Unidentified automatic deposits Unidentified multiple deposits made in a single month that exceed $500 Recurring deposits (weekly, bi-weekly, bi-monthly or monthly) that are not necessarily the same amount Can be used by Borrower to explain other situations

54 edocs Income Worksheet

55 edocs Income Worksheet Final NIFA Income Worksheet Click to Open and Print Income Worksheet

56 HBA Closing Approval NIFA approves the final Closing Disclosures prior to closing HBA Closing Checklist and final Closing Disclosures for the 1 st and 2 nd mortgages must be submitted to NIFA prior to closing Upload request at least 24 hours prior to closing and NIFA to advise when uploaded

57 HBA Closing Package

58 Obligation Letter Is automatically generated once the HBA Closing Approval stage has been approved Can be found in PDF Documents in Loan Status Must be included in the FHA Case Binder & closed file that is sent to US Bank for purchase

59 NIFA Post-Closing Approval NIFA s Post-Closing Review includes: Verification the loan closed using one of NIFA s programs, approved loan types and at the correct interest rate Determination the borrower(s) meet NIFA s two credit overlays Validation the Underwriter s income calculation is at or below NIFA s final approved income for the household Verification all outstanding pre-closing conditions are included in the file Verification all Loan Estimates and the signed final Closing Disclosure are included (US Bank reviews for compliance)

60 Same Name Affidavit Must be included with Post-Closing files for all individuals who provided income documentation: Borrower Co-Borrower Non-Purchasing Spouse

61 Lender Online (LOL) Secure site only available for NIFA approved lenders Loan reservations/rate locks Paperless file submissions (edocs) All program announcements Pipeline reports

62 Accessing Lender Online (LOL)

63 User Access Levels Lender Level (Administrator) full access to all controls within LOL. Can add/delete users. Lender Level processors, closers, shippers, post-closing deficiencies and underwriters Loan Officer Level loan officers only

64 Entering Loan Reservations Click here to enter reservation

65 Entering Loan Reservations Click Here

66 Reservation Process Select a Program

67 Data Entry Screen

68 Data Entry Co-Borrower

69 Data Entry Target/Non Target Takes you to the FFIEC Geo- Coding Site To Get the Census Tract number which determines if the property is in a Target or Non Target Area

70 Tract Code must be entered when reserving a NIFA loan Enter Address

71 Submit Process Loan # Assigned Must click to complete to complete Reservation

72 Lock Confirmation

73 Reservation Process HBA Loans Select a Program

74 Data Entry Screen HBA Loans

75 PDF Compliance Documents

76 PDF Options Select your Post package here. Can also select individual forms if needed.

77 Prefilled Documents

78 edocs Upload Process

79 edocs Upload Process

80 edocs Upload Process #1-Search your Inbox for Scanned Documents #2-Upload Documents

81 edocs Upload Process #2 Save Selected Document #1 Select Pre- Defined Document

82 edocs Upload Process Submit Documents

83 edocs - Confirmation

84 Reprint Lock Confirmation

85 Lock Confirmation

86 Loan Status & Conditions

87 Loan Status & Conditions

88 Loan Reservations Loan reservations/locks are valid for 60 days Extended lock reservations for new construction are valid for 150 days Loans must close within the lock period

89 Extended Locks Are available up to 150 days for new construction purchases Lender must collect a one-time upfront fee equal to.50% of the first mortgage amount Fee is refundable if loan closes within the 150 day reservation period Fee is retained by the lender or closing agent and is credited back to the borrower on the final Closing Disclosure NIFA must be notified within 5 business days of the loan reservation date using the Extended Lock Request Form NIFA staff will manually change the Commitment Expiration Date from 60 days to 150 days

90 Loan Extensions Request will be granted on a case-by-case basis and approval is not guaranteed Reservation Extension Request form should be completed and uploaded into the loan file in LOL

91 Loan Changes All loan reservation changes are made by submitting Loan Change Request Form NIFA staff will make changes to LOL LOL system updates changes every 15 minutes Timely changes are important to keep database accurate for auto generated Forms

92 Change Request Form Use when requesting the following changes to a loan reservation when: Changing loan amount Changing loan program Changing loan type Correcting address Adding/deleting a borrower

93 Cancellation Request Form Use when the NIFA loan will not close Include additional document for the following cancellation reasons: Loan denial Over NIFA program income limits Appraisal/inspections Completed form should be uploaded into LOL as soon as possible

94 Loan Delivery Schedule Closed loans must be delivered to US Bank Home Mortgage for purchase within 10 days of closing Lenders must submit the NIFA post-closing compliance package within 10 days of closing

95 Loan Delivery Schedule Effective February 1, 2015

96 Loan Purchasing NIFA s goal is for every loan to be purchased within 30 days of closing Lenders will make the maximum allowable SRP Management of Pipeline by NIFA & Lender NIFA Representative assigned to each lender Take advantage of the Reports in LOL NIFA Conditions listed in LOL until satisfied USB Conditions listed in LOL until satisfied

97 Pipeline Reports Track Conditions Track Lock Expiration Dates Track Stages & Status Codes Track edoc Submissions PIPELINE MANAGEMENT REPORTS

98 Lender-on Line NIFA Resources Everyone who works on NIFA loans should have their own log in Source for all NIFA information NIFA s Lender Distribution List Everyone who works on NIFA loans should be on our distribution list. Contact Cindy or Susan to be added

99 US Bank Lender Help Desk Use the Help Desk Team for: Status of loan funding Status of documents received Program guidelines General information Phone number: (800) US Bank website:

100 US Bank Contact Information

101 NIFA Single Family Team Shelley Abraham, Compliance Reviewer (402) Stephanie Do, Compliance Reviewer (402) Micheline Henning, Compliance Reviewer (402)

102 NIFA Single Family Team Susan Lauver, Team Leader (402) Jacki Young, Program Manager (402) Cindy Trautman, Assistant Manager (402)

103 Thank You!!