Welcome to the TSAHC Lender Training. Module II Compliance, Closing, & Delivery

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1 Welcome to the TSAHC Lender Training Module II Compliance, Closing, & Delivery

2 Reservation & Origination Flow Lender completes loan reservation in the Lender Portal at online.org. HFA Preferred loans must be run through DU and receive an Approve/Eligible result. HFA Preferred loans with LTVs of to 97% must then be delivered to US Bank for underwriting. All other loans will be underwritten by the lender. Underwriter uploads the Underwriter Certification Form within 15 days of reservation to the Lender Portal. Lender delivers the Pre Compliance Package to TSAHC via the Lender Portal at least 10 days prior to closing. Pre Compliance Package is reviewed/approved by TSAHC. A Compliance Commitment Letter is made available via the Lender Portal. Lender submits the Funding Request Form and HUD 1 to wire.request@tsahc.org at least 2 days prior to closing date. Lender closes/funds the loan. Lender submits Post Compliance Package to TSAHC via the Lender Portal within 10 days of closing date. Post Compliance Package reviewed/approved by TSAHC. For DPA loans, Servicer notified of compliance approval and loan purchased. For MCC loans, certificate will be issued.

3 Loan Officer Responsibilities Pre qualify borrower per Program Guidelines Must have an executed sales contract Ensure borrower does not exceed income and DTI limits Ensure borrower has a minimum FICO of 640 Complete the Loan Reservation Reserve the loan on the Lender Portal at online.org

4 Underwriter Responsibilities Lenders are responsible for underwriting all FHA, VA and USDA loans. Loans may be underwritten through: Automated Underwriting System ( AUS ), Fannie Mae s Desktop Underwriter ( DU ), Freddie Mac s Loan Prospector ( LP ), or Manually underwritten according to the criteria established for the applicable loan product. HFA Preferred loans must be run through DU and receive an Approve/Eligible. Lenders, without approval by US Bank, are then required to submit those HFA Preferred loans with LTVs of to 97% to US Bank for further underwriting. Please visit to access the US Bank Underwriting Guidelines. Only HFA Preferred mortgage loans with LTVs of 95% or less may be underwritten by the Lender following Fannie Mae underwriting guidelines.

5 Underwriter Responsibilities Additional credit and debt overlays: FHA, VA or USDA RHS Loans A minimum FICO score of 640 with a maximum DTI of 45%, or A minimum FICO score of 660 with a maximum DTI of 50%. FNMA HFA Preferred Conventional Loans For LTVS of to 97%: Minimum FICO score of 680 with a maximum DTI of 45% For LTVs of 95% or Lower: Minimum FICO score of 640 with a maximum DTI of 45% For those with a FICO score of 660 or greater, a maximum DTI of 50% will be allowed. Within 15 calendar days of loan reservation the Underwriter Certification Form must be uploaded to the Lender Portal. This form can be found through the PDF Docs button associated with your loan on the Lender Portal. The MCC program does not require an Underwriter Certification Form.

6 Processor Responsibilities Upload Pre Closing Compliance Package Within 10 calendar days prior to closing this package will need to be uploaded to the Lender Portal. This package can be found through the PDF Docs button associated with your loan on the Lender Portal. Commitment Letter Issued by TSAHC This letter is to verify that the loan meets eligibility criteria. This letter can be found through the PDF Docs button associated with your loan on the Lender Portal.

7 Closer Responsibilities DPA or DPA/MCC Loans: Request DPA Funds from TSAHC Complete the Funding Request Form and it and the final HUD 1 to wire.request@tsahc.org at least 2 business days prior to closing. Close and Fund Loan Close and fund the loan according to Agency and Program Guidelines Upload Post Closing Compliance Package Within 10 calendar days following loan closing this package must be uploaded to the Lender Portal. This package can be found through the PDF Docs button associated with your loan on the Lender Portal.

8 Shipper Responsibilities DPA or DPA/MCC Loans: Deliver the necessary documents to U.S. Bank per the Closing and Funding guidelines found in the Lender Manuals at Must be approved by TSAHC, then delivered and purchased by U.S. Bank within 70 calendar days of loan reservation All Loans: Check the status of your loan periodically through the Loan Status tab on the Lender Portal DPA or DPA/MCC Loans: Once the Post Closing Compliance Package has been approved by TSAHC, U.S. Bank will be authorized to purchase the loan (subject to U.S. Bank requirements) MCC Loans: Once the Post Closing Compliance Package has been approved by TSAHC, the Mortgage Credit Certificate will be issued to the borrower.

9 Accessing the Lender Portal Participating lenders will reserve loans and submit compliance packages through TSAHC s Lender Portal at online.org. One person from each Lender s organization will be designated the TSAHC Administrator of the Lender Portal for purposes of granting access to company personnel. The administrator is responsible for determining who within their company will have access and as well as the level of access each employee will have. TSAHC does NOT create login credentials.

10 TSAHC Lender Portal at

11 1. Login to the TSAHC Lender Portal at online.org. 2. Click on Program Documents Home Page

12 Important Documents Download and print the Step by Step Origination Procedures document to help you determine our timeline and the required documents for each program. Please refer to this document throughout the entire process.

13 Step by Step Procedures Steps Step 1. Loan Reservation Step 2.ONLY for HFA Preferred conventional loans Homeownership (DPA) Program Only Reserve the loan on the Lender Portal at online.org. Lender runs loan through DU and receives an Approve/Eligible. Loans with LTVs of to 97% must be sent to US Bank for underwriting. Loans with LTVs of 95% or less are underwritten by the lender. MCC Program Only Combined Homeownership/MCC TSAHC Required Documents Reserve the loan on the Lender Portal at online.org. N/A. Reserve the loan on the Lender Portal at online.org Lender runs loan through DU and receives an Approve/Eligible. Loans with LTVs of to 97% must be sent to US Bank for underwriting. Loans with LTVs of 95% or less are underwritten by the lender. N/A. N/A. Step 3. Upload Underwriter Certification Form Step 4. Upload Pre Closing Compliance Package/Program Affidavit. Step 5. Download and Print Commitment Letter. Within 15 calendar days of loan reservation, upload the Underwriter Certification Form to the Lender Portal. At least 10 calendar days prior to loan closing, upload the Program Affidavit and the additional documents listed on the Pre Closing Compliance Checklist. Once the Pre Closing Compliance Package has been approved by TSAHC, a Commitment Letter will be available through the PDF Forms tab on the Lender Portal to download and print. N/A. The MCC Program does not require an Underwriter Certification Form. At least 10 calendar days prior to loan closing, upload the Program Affidavit and the additional documents listed on the Pre Closing Compliance Checklist. Once the Pre Closing Compliance Package has been approved by TSAHC, a Commitment Letter will be available through the PDF Forms tab on the Lender Portal to download and print. Within 15 calendar days of loan reservation, upload the Underwriter Certification Form to the Lender Portal. At least 10 calendar days prior to loan closing, upload the Program Affidavit and the additional documents listed on the Pre Closing Compliance Checklist. Once the Pre Closing Compliance Package has been approved by TSAHC, a Commitment Letter will be available through the PDF Forms tab on the Lender Portal to download and print. 1. Underwriter Certification Form 1. Compliance Checklist 2. Program Affidavit 3. Initial Loan Application (1003) 4. Copy of Purchase Contract (Purchase transactions only) 5. Tax Returns (MCC only) 6. Rental Verification (MCC only) N/A. The Commitment Letter is available to Lenders after the Pre Closing Compliance Package has been preliminarily approved. It is for the Lender s records only and does not need to be submitted to TSAHC. 1. Funding Request Form 2. Approved HUD 1 Settlement Statement Step 6. Request DPA Funds From TSAHC. Complete and the Funding Request Form to wire.request@tsahc.org at least two (2) business days prior to closing. TSAHC will table fund DPA proceeds. N/A. TSAHC does not provide DPA funds through the MCC Program. Complete and the Funding Request Form to wire.request@tsahc.org at least two (2) business days prior to closing. TSAHC will table fund DPA proceeds.

14 Step by Step Procedures Steps Step 7. Close/Fund Mortgage Loan Step 8. Upload Post Closing Compliance Package. Step 9. Deliver Loan to U.S. Bank for Purchase.¹ Step 10. Check Loan Status. Step 11. Loan Purchased/MCC Issued. Homeownership (DPA) Program Only Close and fund loan according to Agency and Program Guidelines. Within 10 calendar days following loan closing, upload the documents listed on the Post Closing Compliance Checklist to TSAHC to the Lender Portal at online.org Closed/funded loan must be delivered to U.S. Bank within 45 calendar days of loan reservation. Closing package must be approved by TSAHC and the loan purchased by U.S. Bank within 70 calendar days of loan reservation.¹ Check the status of your loan periodically through the Loan Status tab on the Lender Portal. Once the Pre and Post Compliance Packages have been fully approved by TSAHC, U.S. Bank will be authorized to purchase the loan (subject to compliance with U.S. Bank requirements). Once all TSAHC and U.S. Bank conditions have been met, the loan will be purchased by U.S. Bank. MCC Program Only Combined Homeownership/MCC Required Documents Close and fund loan according to Agency and Program Guidelines. Within 10 calendar days following loan closing, upload the documents listed on the Post Closing Compliance Checklist to TSAHC to the Lender Portal at online.org N/A. Lender follows their own organization s secondary marketing policies for distribution of the loan. Loan must be closed, funded and fully approved by TSAHC within 70 days of loan reservation. Check the status of your loan periodically through the Loan Status tab on the Lender Portal. The Pre and Post Closing compliance packages must be fully approved by TSAHC before the Borrower is eligible to receive his/her MCC. Once all conditions have been met, the Mortgage Credit Certificate will be mailed to the Borrower. Close and fund loan according to Agency and Program Guidelines. Within 10 calendar days following loan closing, upload the documents listed on the Post Closing Compliance Checklist to TSAHC to the Lender Portal at online.org Closed/funded loan must be delivered to U.S. Bank within 45 calendar days of loan reservation. Closing package must be approved by TSAHC and the loan purchased by U.S. Bank within 70 calendar days of loan reservation.¹ Check the status of your loan periodically through the Loan Status tab on the Lender Portal. Once the Pre and Post Compliance Packages have been fully approved by TSAHC, U.S. Bank will be authorized to purchase the loan (subject to compliance with U.S. Bank requirements). Once all TSAHC and U.S. Bank conditions have been met, the loan will be purchased by U.S. Bank. N/A. No documents required to be sent to TSAHC at loan closing. 1. Compliance Checklist 2. Reaffirmation of Mortgagor 3. Final Loan Application (1003) 4. Homebuyer Education Cert. 5. Final HUD 1 6. Sellers Affidavit (MCC only) 7. ACH Transfer (MCC only) 8. Appraisal (Refinance transactions only) N/A. Once the Post Closing Compliance Package has been approved, the status of the loan in the Lender Portal will be changed to Approved and the Servicer will be notified that the loan meets TSAHC s eligibility requirements. N/A. N/A.

15 TSAHC Compliance Packages The Lender Portal allows lenders to complete and submit electronic documents. All documents must be uploaded electronically. No paper documents are required. Click on the PDF Docs button to access the electronic documents.

16 TSAHC Compliance Packages All of the documents we require for that particular loan will be listed. Select/generate the desired document and ensure all required fields are completed. If the applicable form requires a signature, the form must be completed, printed, saved as a PDF, and uploaded to the system.

17 Uploading Program Documents 1. Go back to the Loan Status button. NEVER use the back arrows or it will log you out of the system. 2. Click the edocs button.

18 Uploading Program Documents 3. Click the Add New button to upload a saved document.

19 Uploading Program Documents 4. Click the Click Here button to access your computer files and select the document to upload. Click Choose File, find the document, and then click Open. #1 #2 #3

20 Uploading Program Documents 5. Name the document you are uploading by choosing an option from the drop down list under Select a document from the predefined list. If you don t see your document on the list, use the Enter a customized document name field to name the document you are uploading. 6. Then you MUST click SAVE! This will save the uploaded documents to the edocs section of the loan.

21 Uploading Program Documents 7. Once all of the required documents have been uploaded to the Lender Portal, you will need to return to the edocs button associated with the loan. 8. You should see the uploaded documents under the appropriate section. 9. IMPORTANT: Click on the Submit button associated with the each section. If you do not hit the Submit button, TSAHC will NOT know that you have uploaded any documents!

22 Loan Stages You can always check the stage of your loan by clicking on the Loan Status tab. TSAHC will NOT notify you when your status has changed. You are responsible for managing your own pipeline. For definitions of each stage, click on the Program Documents tab and download the Loan Stages in Lender Portal document.

23 Stage Name Full Stage Name Loan Stages Potential Loan/MCC Status(es) Reserved Reserved N/A* UW Cert. Recd. Comp. Pkg. Recd Comp. Pkg. Rev. Underwriter Certification Received Pre Closing Compliance Package Received Pre Closing Compliance Package Reviewed N/A* N/A* Incomplete Approved Committed Committed N/A* Description Loan/MCC has been reserved on our system. No other activity on loan. The Underwriter s Certification has been uploaded to the Lender Portal. The documents representing the Pre Closing Compliance Package have been uploaded to the Lender Portal. Missing/incomplete documentation. Pre Closing Package has been approved and will be moved to Committed status. Loan is pre approved for compliance with TSAHC s eligibility criteria. Required Action/Next Step Upload Underwriter s Certification within 15 calendar days. Upload Pre Closing Compliance Package Prior to loan closing. Delivery 10 calendar days prior to closing is recommended. Check Lender Portal within 48 hours to obtain status of the compliance package. Click on the view icon associated with your loan to view conditions. Clear conditions. Refer to Committed stage for next step. Close/fund mortgage loan. A commitment letter (preapproval) can be printed from the PDF Docs icon associated with your loan on the Lender Portal.

24 Stage Name Close Pkg. Recd Close Pkg. Rev. Full Stage Name Post Closing Compliance Package Received Post Closing Compliance Package Reviewed Loan Stages Potential Loan/MCC Status(es) N/A* Incomplete Approved MS Purchased Master Servicer Purchased N/A* TSAHC Purchased TSAHC Purchased N/A* MCC Issued MCC Issued N/A* Description The documents representing the Post Closing Compliance Package have been uploaded to the Lender Portal. Missing/incomplete documentation. Pre Closing Package has been approved. Loan/MCC is fully approved at this stage and eligible for purchase by U.S Bank (subject to U.S. Bank purchase provisions). Loan has been purchased by U.S. Bank. (Not applicable to MCCs). Loan has been securitized and sold to TSAHC (not applicable to MCCs). MCC application has been fully approved and Certificate has been mailed to the borrower along with Recapture Tax form and any other required documentation. Required Action/Next Step Check Lender Portal within 48 hours to obtain status of the post closing compliance package. Click on the view icon associated with your loan in the Lender Portal to view conditions. Clear conditions. If not already submitted, deliver loan to U.S. Bank for purchase (not applicable to MCCs). None None None

25 Frequently Asked Questions Loan Status Notifications Lenders are responsible for managing their pipelines. Check the Lender Portal regularly to determine the status of the loans in your pipeline and take the appropriate action (clear conditions, upload required packages, contact TSAHC to cancel loans that fall out, etc.) You can click the VIEW icon on the portal for conditions. Underwriter s Certification The Underwriter s Certification Form (DPA and combined DPA/MCC Programs only) must be uploaded through the Lender Portal within 15 calendar days of loan reservation. Loans that do not meet this requirement will be cancelled on day 16 after loan reservation. Pre and Post Closing Compliance Packages Both Packages must be uploaded to the Lender Portal within the published timeframes: Pre Closing Package 10 calendar days prior to loan closing. Post Closing Package within 10 calendar days following loan closing. Please do not send packages via mail.

26 Frequently Asked Questions Middle Names During the reservation process, the Lender Portal will only accept a borrower s middle initial not the full middle name. Borrower names on our reservation forms don t necessarily have to match your legal/credit documents. Rate lock TSAHC locks the interest rate at the time the loan is reserved. Reservation Expiration This is 45 calendar days from the reservation date. Loans must be CLOSED by this date. Contact TSAHC if you need more time. Commitment Expiration This is 70 calendar days from the reservation date. Loans must be sold to US Bank by this date. Loans not purchased by this expiration date will charged $375 for a 30 day extension. Extension forms are found on the Portal in Program Documents. DPA Program Fees US Bank will collect our DPA fees when they purchase the loan. Please DO NOT mail the Compliance fees to TSAHC. MCC Program Fees For stand alone MCC loans, please send TSAHC the Compliance and Issuance fees. For the combination MCC/DPA loans, please send TSAHC the MCC Issuance fee only, US Bank will collect the Compliance fees at purchase.

27 Borrowers have access to YOU! Links to the guidelines, forms and training information. Access to the TSAHC Lender Portal ( online.org). Free marketing materials Visit to find: Speaking engagement requests A link to find home buyer education providers in your area via

28 Have a Question? Homeownership Hotline: (877) Paige Omohundro (512) pomohundro@tsahc.org Sarah Ellinor (512) sellinor@tsahc.org Tim Almquist (512) talmquist@tsahc.org Delia Davila (512) ddavila@tsahc.org