Administrator s Guidelines Housing Finance Authority of Pinellas County HOME KEY and HOME KEY PLUS PROGRAM Published June 16, 2014

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1 ! Administrator s Guidelines Housing Finance Authority of Pinellas County HOME KEY and HOME KEY PLUS PROGRAM Published June 16, 2014 Revised Updates are detailed on Page 3!

2 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!2 TABLE OF CONTENTS THE HFA OF PINELLAS COUNTY TEAM 7 THE PRODUCTS 8 HOME KEY FIRST MORTGAGE LOAN 8 HOME KEY PLUS SECOND MORTGAGE 8 FINANCING FACTS 10 PROGRAM REQUIREMENTS - ALL LOAN TYPES 13 Eligible Area 13 Eligible Borrowers 13 Veterans Exception 13 Minimum Credit Score 13 Maximum Debt to Income Ratio 13 Homebuyer Education 14 Household Income Limits 14 HOUSEHOLD INCOME LIMITS 14 AFFORDABLE INCOME SUBSIDY GRANT 14 HOUSEHOLD INCOME LIMITS 14 AFFORDABLE INCOME SUBSIDY GRANT 14 PROPERTY QUALIFICATIONS 15 Targeted Areas 15 LENDER TRAINING REQUIREMENTS 16 SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS 17 PROGRAM TIMELINE 21 Loan Reservation/Rate Lock 21 Underwriter Certification 21 Extensions 22 PROGRAM FEES 23 DOCUMENTS REQUIRED FOR THE COMPLIANCE FILE 26 U.S. BANK WEB SITE INFORMATION 27

3 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!3 UPDATES DATE TOPIC (effective immediately unless otherwise noted) PAGE Updated File Delivery process clarified Income and Sales Prices Changed, Effective for 1003 loan applications dated and after NT 3+ for Polk County increased ehousingplus fees increased Under Mandatory Program Training and Training see new link and under Disclose see new link for upfront access of Notices to Buyers Final Purchase Date Extended Final Purchase Date Extended New income limits for 1003 s (loan applications) dated Monday, April 6, 2015 and after Amount of DPA changes to $7, New Income and Sales Price Limits effective for 1003 s dated on or after July 22, 2015 Added Non-Traditional Credit information Revised final purchase date to June 1, Added Who To Contact directory 4 & Added Documentary Stamps, 1003 Application, Real Estate Contract and Tax Returns to Program Facts 13 & Reformatted the Compliance Process Reformatted ehp and US Bank Fees Reformatted Documents Required for the Compliance File Added Funding the HFA s Second Mortgage, Disclosure Requirement, Doc Stamps & Intangible Taxes on 2nd, Flood Certificate on 2nd Added Title Insurance requirement for 2nd Added DPA Funding request procedures Added ehp fee s information & revised US Bank fee Added disclaimer regarding not reproducing program forms Added information regarding additional fees from a broker or Realtor Revised minimum FICO Manufactured homes no longer permitted in program Language added regarding non-traditional credit and manual underwriting Language added regarding credit documentation for the Master Servicer Updated the program final purchase date of the program to Added Section 184 Indian Home Loan to the guidelines , 11, Revised income and purchase price limits effective with loan applications dated and after Corrected Polk County Non-Target 3 or more Person and Target 1-2 Person Income Limits Revised effective date for new income & purchase price limits 12

4 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!4 DATE TOPIC (effective immediately unless otherwise noted) PAGE Clarified ehousingplus Fees Removed Sheri Harris from DPA Wire Request Added Freddie Mac HFA Advantage to acceptable loan products Revised credit score to include Freddie Mac HFA Advantage Included Freddie Mac HFA Advantage to Buy downs & Co-Signers Revised Documentary Stamps and Intangible Taxes language Added Freddie Mac HFA Advantage Fact Sheet Added LLPA, Mortgage Insurance, Ownership in Other Properties Clarified prepayment language Revised Recapture Tax information Revised minimum credit score and manual underwriting Included Freddie Mac overlays to Property Qualification Updated Close instructions Updated Us Bank link Removed Notices to Buyers, Recapture Tax Notice and Tax Exempt Rider from compliance forms 25 & Added Notices to Buyers, Recapture Tax Notice and Tax Exempt Rider from compliance forms 25 & Added Down payment assistance amounts according to county Removed HUD Section 184 loan product Revised Income limits verbiage Removed restriction of condos with conventional loan Revised lender compensation (SRP) Removed Recapture brochure and Tax Exempt Rider from list of program documents Bond Compliance Underwriting Guidelines removed for guide completely Revised Contact Directory Removed reference to US Bank in the funding of the second mortgage Revised US Bank Fees Revised US Bank Web Site link 7 & Added further explanation regarding second mortgage disclosure 8 & Added Agency & US Bank overlay to Eligible Borrower Revised Final Purchase Date to Revised DPA amount in Pinellas county to $7,500 Revised final purchase date to 07/01/ Added Freddie Mac AIS Grant information Added Eligible Borrower requirement Revised DTI Ratios for conventional loan Added AIS Grant Income Limits Added Pinellas 2nd Mtg Requirements to the Origination Process Added Freddie Mac AIS Grant to the Reservation Process Added Freddie Mac AIS Step-By-Step Reservation Process Added Closing instructions for Freddie Mac AIS Grant Revised ehp fee with a Freddie Mac AIS Grant Removed incorrect information from AIS Grant regarding no reimbursement of overage of EMD Revised Final Purchase Date to Oct. 1, 2018 Revised US Bank Tax Service Fee effective 04/30/ , Revised AIS Grant Amount, effective 04/23/18 8, Revised Origination and SRP, effective 05/18/18 21, Revised second mortgage funding process, effective 06/13/18 7, 17

5 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!5 DATE TOPIC (effective immediately unless otherwise noted) PAGE Revised DPA loan amount for Paso and Polk counties effective 07/23/18 Revised AIS Grant income limits effective 07/29/ Revised Final Purchase Date to Revised Second Mortgage Disclosure Effective 10/01/ Revised Second Mortgage Disclosure Effective 10/01/18 Revised Homebuyer Education links

6 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!6 CONTACT DIRECTORY (Rev 05/09/17) Question Direct Questions to: Contact Information General Program Compliance Questions Assistance with ehp Lender Portal Assistance with User Credentials for ehp Lender Portal Update an Underwriter Certified Loan ehousingplus (ehp) ehousingplus (ehp) (954) ehousingplus (ehp) Ashlynn Mosher (954) ext 261 Anyone at ehp Compliance Office Program Training ehousingplus (ehp) Click on this link to attend Program training. Program Training Issues ehousingplus (ehp) System Software Training for ehp Lender Portal ehousingplus (ehp) Click on this link for the once weekly Live Webinar: System Software Issues ehousingplus (ehp) Program Rates ehousingplus (ehp) Click on this link: to view the HFA of Pinellas County rates. Then click on the RATES tab. Credit Underwriting questions Questions regarding the shipping of closing loan files Participating Lenders need to refer to internal Underwriting Department or Manager ehousingplus (ehp) for questions regarding the program compliance file US Bank does not re-underwriter loans. For general questions, contact US Bank at or Option 2 (for general questions) Please note: US Bank answers underwriting questions from the underwriter of a lender for whom US Bank provides underwriting services ONLY. services@ehousingplus.com Questions regarding exceptions US Bank for questions regarding the first mortgage closed loan file ehousingplus (ehp) for questions regarding exceptions on the program compliance file US Bank for questions regarding exceptions on the first mortgage closed loan file hfa.programs@usbank.com hfa.exceptions@usbank.com Debbie Kerr ehp.exceptions@ehousingplus.com X216 hfa.communications@usbank.com hfa.exceptions@usbank.com

7 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!7 THE HFA OF PINELLAS COUNTY TEAM! HFA of Pinellas County Creates the first and second mortgage programs, sets the rate, term and points, markets the program Participating Lenders Take applications, reserve in their own systems, process, underwrite, approve, fund, close and sell qualified loans to the program. Check with your company on how to reserve a program loan rate in your own system so that you have funds available for closing. Your company may have their own codes. Lenders are responsible for servicing first program loans in accordance with GNMA requirements until they re purchased by the Master Servicer. U S Bank Master Servicer Provides information on acceptable loan products and delivery and funding, receives all mortgage files, reviews mortgage files, notifies lenders of mortgage file exceptions, approves mortgage files, purchases first mortgage loans, pools and delivers loans, delivers certificate to Trustee May accept applications from qualified correspondent lenders. ehousingplus Program Administration Maintains the program reservation system, websites, and posts guides, forms, training materials, provides training on compliance issues and system, answers compliance questions, receives compliance files, reviews, posts and notifies of exceptions and approves compliance file.

8 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!8 THE PRODUCTS HOME KEY FIRST MORTGAGE LOAN The HFA of Pinellas County Home Key Program is a multi-county program. Loans may be originated in Pasco, Pinellas and Polk counties. All Home Key Mortgage Loans shall bear a fixed rate of interest, have level payments and be fully amortizing over a 30 year term. All Home Key Mortgage Loans must be insured or guaranteed by FHA, VA, RD or Freddie Mac HFA Advantage Conventional Loan. Check with U.S. Bank for specific allowable loan products. (Rev. 02/13/17 - removed HUD Section 184 loan product) Minimum credit score for government loans is 660 and for Freddie Mac HFA Advantage /01/16) (Rev. Mortgage interest rates and amount of down payment assistance may be changed at any time by the Issuer at its sole discretion. The Issuer s published interest rate on the date a loan registers a Rate Lock is a firm interest rate for that loan and cannot be changed by the Lender or by the Issuer. PLEASE CHECK THE SYSTEM FOR RATES. HOME KEY PLUS SECOND MORTGAGE DOWN PAYMENT ASSISTANCE The second mortgage currently at 0% (subject to change at any time) may ONLY be used with the HFA s 30- year fixed rate first mortgage noted above. Available for borrower s purchasing a home anywhere in Pasco, Pinellas and Polk Counties. If a borrower qualifies for the HFA of Pinellas County First Mortgage, they will automatically qualify for a second mortgage in an amount to be determined by the Issuer. (Rev 12/11/17) Effective with new loan reservations 07/23/18 and after: Pinellas County: $7,500 Pasco County: $5,000 Polk County: $5,000 Please check system for amount, amortization and rate. May be used for down payment (more than 3-1/2%), closing costs, reimbursement of prepaids and overage of earnest money deposit). If there are funds remaining at closing, they must go to pay down the first mortgage. This loan is never forgiven. IMPORTANT: Original Mortgage and Note must be filed as ONE DOCUMENT in public records, A copy of the Mortgage and Note must be included in mortgage file to U,S. Bank, and The recorded Mortgage and Note must be sent to U.S. Bank as per U.S. Bank s Final Document instructions. Income and Sales Price Limits are the same for the first and second mortgage. Loan reservations June 13, 2018 and after. Funding of the HFA s Home Key Plus Second Mortgage - At closing the Lender will fund the second mortgage funds. At loan purchase US Bank will reimburse the Lender for the second mortgage funds. Lenders must use the program second mortgage/note showing the HFA as the mortgagee. This affects the use of the proceeds. With the HFA as the mortgagee, the funds may be used toward FHA s borrower minimum contribution. The Authority provides two letters in response to FHA ML Both obligate the Authority s funds to provide the borrower with down payment assistance toward the borrower s minimum cash investment. The letters are accessed for Closing following submission of the Underwriter Certification and are found in Forms in the Lender Portal. Both letters include distribution instructions at the bottom. (Rev 06/13/18)

9 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!9 Loan Reservations Prior to June 13, 2018 Funding of the HFA s Home Key Plus Second Mortgage - At closing the HFA of Pinellas County will table fund the second mortgage funds. Three (3) business days prior to closing the lender must submit a DPA Funding Request to the HFA of Pinellas for approval. Upon approval, the HFA will wire DPA funds to the closing agent. Lenders must use the program second mortgage/note showing the HFA as the mortgagee. This affects the use of the proceeds. With the HFA as the mortgagee, the funds may be used toward FHA s borrower minimum contribution. The Authority provides two letters in response to FHA ML Both obligate the Authority s funds to provide the borrower with down payment assistance toward the borrower s minimum cash investment. The letters are accessed for Closing following submission of the Underwriter Certification and are found in Forms in the Lender Portal. Both letters include distribution instructions at the bottom. (Rev 05/09/17) Affordable Income Subsidy (AIS) Grant - Freddie Mac HFA Advantage Loan ONLY Borrowers using the Freddie Mac HFA Advantage Loan that meet specific income limits may be eligible for additional funds to help with down payment and closing costs. The income limits are determined by the county location of the home. Effective with new loan reservations 04/23/18 and after, borrowers at or below 80% of the Area Median Income Limits as published by Freddie Mac are eligible for an additional grant in the amount of $1,500 and borrowers at or below 50% AMI will receive an additional grant of $2,500. The AIS Grant is reserved in the ehousingplus Lender Portal using the ADDITIONAL LOAN tab after the first mortgage AND Second Mortgage are reserved. The AIS will be provided at closing by the Lender. The AIS funds must be used for down payment and closing cost assistance only. There is no repayment of the AIS Grant. Upon purchase of the loan, US Bank will reimburse the Lender for all qualified subsidies. The AIS must be reflected on Page 3, Section L of the CD as Affordable Income Subsidy. This AIS Grant must be reflected in DU or LP findings, along with the Second Mortgage provided by the Program. Any questions about the preparation of the CD should be directed to US Bank HFA Division. (Rev 04/16/18)

10 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!10 FINANCING FACTS It is the responsibility of the lender to follow all program, Agency (FHA, VA, USDA:RD, Freddie Mac) and master servicer guidelines. Check with your underwriter for updates to information for Freddie Mac HFA Advantage. Such information is provided by third parties who do not provide updated information on a regular basis to ehousingplus. (Added 10/01/16) Additional Fees No Broker Fees or additional fees to realtors are allowed to be charged on the first or second mortgage. (Added 10/26/15) Allowable Fees to the Mortgage Lender No commitment or origination fee will be charged for the second loan however, the Mortgage Lender may collect a $75 Second Mortgage Loan Application Fee. Assumptions First mortgage loans may be assumed by a qualified borrower meeting qualifying requirements, income and acquisition price restrictions in place at the time of the assumption. Such loans must continue to fully comply and be insured or guaranteed by the insurer/guarantor or the mortgage insurer. The second mortgage loan is not assumable. Buydowns 2/1 buydowns are permitted for FHA and Freddie Mac HFA Advantage loans to the extent allowable by FHA and Freddie Mac. (Rev. 10/01/16) Cash Back Cash back to the borrower is not permitted. Borrowers are permitted a reimbursement of prepaids and overage of earnest money deposit to the extent any minimum contribution has been satisfied and is permitted by Agency (FHA, VA, RD, Freddie Mac) guidelines. Co-signers (FHA, VA, USDA-RD)- Are permitted to the extent allowed by applicable Agency (FHA,etc). Treat co-signer income as directed by agency. A co-signer cannot have any ownership interest in the property (they cannot be on the mortgage/deed/warranty deed). Co-signers (Freddie Mac) - Not allowable. (Added 10/01/16) Construction to Perm Construction to Perm is not permitted in this program. Documentary Stamps and Intangible Taxes on HFA of Pinellas County First and Second Mortgages are NOT exempt from Documentary Stamps and Intangible Taxes and will need to be collected at closing effective October 1, (Rev. 10/01/16) Final Typed Loan Application (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. All persons taking title to the property must execute all program documents. The income disclosed on the Affidavit must be the same or more than that shown on the The purchase price, loan amount, and other financial details must be the same as shown on all other documents.

11 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!11 Flood Certificates For all second mortgage loans closing on and after Oct. 19, 2015, do not charge for flood certificates. (Added 10/03/15) Freddie Mac HFA Advantage Fact Sheet: Insurance Requirements The hazard insurance policy, when issued, must name the Housing Finance Authority of Pinellas County as an insured second mortgagee. The mortgage title insurance policy, when issued, must include the second mortgage as a valid lien against the property subordinate only to the first mortgage. Loan Level Price Adjustment (Freddie Mac) These fees have been waived. (Added 10/01/16) Manufactured Homes - As of December 1, 2015, U. S. Bank will not purchase loans for manufactured housing. U.S. Bank considers manufactured housing a mobile home built entirely offsite on a permanent chassis that is pulled on the highway to a permanent location. Modular, panelized or prefabricated homes are not considered manufactured housing. (Rev. 12/01/15) Minimum Loan Amount There is no minimum loan amount required in this program. Mortgage Insurance Mortgage insurance for the conventional loan product (Freddie Mac HFA Advantage) may be lower than on the government loan products. (Added 10/01/16) Mortgagee The Mortgagee is the Housing Finance Authority of Pinellas County as preprinted on the N o t e and Mortgage and, therefore, an Assignment is not required. Non-Traditional Credit Please refer to U.S. Bank website and Bulletin dated May 25, 2015 and effective with new reservations July 1, (Added ) Ownership in Other Properties Freddie Mac - A borrower may not have ownership interest in a residential property at time of closing. All Loan Types - Divorced Borrower, If divorced and marital home was awarded to the spouse the borrower must be off the mortgage, note and deed of the marital home. (Added 10/01/16) Owner Occupancy Requirement The borrower receiving the Down Payment Assistance Loan must occupy the residence for the term of the loan or until the loan is satisfied. Prepayment The second mortgage loan, as well as the first mortgage loan, may be prepaid at any time without penalty. (Clarified 10/01/16) Real Estate Purchase Contract The full address of the property, full names of all sellers and buyers, total purchase price of the property must be included. If there is not an address for new construction, a lot number and subdivision name are required. All named persons must sign. Include the name and title whenever a representative is signing for a corporation. Recapture Tax After October 1, 2016 and until further notice, Recapture Tax will not apply. (Rev 10/01/16)

12 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!12 Recordation Requirements The first and second mortgages must be recorded in the following order: First Mortgage, Assignment of First Mortgage; Second Mortgage and Note recorded as one document (Marital Status must be noted for all borrowers) (Rev 10/01/16) Remaining Reserves Remaining reserves are not established by the program. If any, these are determined by the type of financing used (i.e. FHA, VA.). Second Mortgage Disclosure Requirements Loan Reservations 10/01/18 and after Lenders are required to provide the LE and CD. (Rev 08/06/18) Second Mortgage Disclosure Requirements Loan Reservations PRIOR to 10/01/18 Lenders are required to use a DPA Loan Disclosure Form created to further clarify the terms of the Second Mortgage for the borrower. The disclosure is generated from the ehousingplus Lender portal and is signed at closing by the borrower. Tax Returns or Tax Transcripts or any combination Tax returns or tax transcripts or any combination of returns or transcripts for the preceding year are due April 15 of the current year. The past three years tax returns/transcripts are required for borrowers and spouses. Not required for those buying in Targeted Areas or those purchasing under the Veteran s Exception. Requests for Extensions are not acceptable in lieu of tax returns/transcripts. If a borrowers did not file federal income tax returns for any or all of the three year period and were required by law to do so, they cannot participate in the program until such returns are filed. If a borrower did not file federal income tax returns for any or all of the three year period and was not required by law to do so, use the space provided on the Mortgagor Affidavit and list the name(s) of the party(ies), the tax year(s) and the reason for not filing. Title Insurance NOT required on the second mortgage. (Rev. 10/27/15) YOU MUST USE THE SECOND MORTGAGE/NOTE (DESIGNED AS ONE DOCUMENT) AND RECORD THE COMBINED DOCUMENT.

13 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!13 PROGRAM REQUIREMENTS - ALL LOAN TYPES The eligibility requirements of the first and second mortgage may or may not be the same. If there are lower limits for some second mortgage products, then the lower limits apply to both first and second if both are being used. Eligible Area First Mortgage Area Includes all of Pinellas, Pasco and Polk Counties Home Key Plus Second Mortgage Area includes Pinellas, Pasco and Polk counties. Eligible Borrowers 1. Buyers and their spouses (occupant and non-occupant) must be first-time buyers and must be able to permanently reside in the US. 2.Follow Agency (FHA, VA, USDA-RD, Freddie Mac) and U.S. Bank guidelines for non-citizens. (Added 05/19/17) 3. Buyers must live in the property they purchase as their principal residence. 4. All applicants must be considered irrespective of age, race, color, religion, national origin, sex, marital status, military status or physical handicap. 5. Buyers must occupy the property purchased within 60 days of closing. 6. If Borrowers used the program previously, and the HFA suffered a loss due to foreclosure, short sale, or bankruptcy, they are not eligible to participate in the program again. 7. Contact Compliance with questions regarding eligibility. 8. The past three years federal income tax returns are required for program purposes. Exceptions would be those purchasing in Targeted Areas or using the Veteran s Exception. Veterans Exception Veterans who meet the qualifications listed in this paragraph are not required to be first-time homebuyers. Congress has reinstated the Veteranʹs Exception provision. For this feature, ʺveteranʺ is defined as ʺa person who served in the active military, naval or air service, and who was discharged or released therefrom under conditions other than dishonorable.: The Mortgagor Affidavit has a checkbox that states: ʺMortgagor or Co-mortgagor meets the requirements to qualify as a ʹveteranʹ as defined in 38 U.S.C. Section 101 and has not previously obtained a loan financed by single family mortgage revenue bonds utilizing the veteran exception to the first-homebuyer requirement set forth in Section 416 of the Tax Relief and Health Care Act of Attached hereto are true and correct copies of my discharge or release papers which demonstrate that such discharge or release papers which demonstrate discharge or release was other than dishonorable. Minimum Credit Score Buyers must have a minimum FICO credit score of 660 for loan types: FHA, VA, RD (the mid score must be the minimum or above). Freddie Mac HFA Advantage buyers must have a minimum FICO credit score of 640. If an Agency (FHA. VA, 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 bond loans, then lenders must use the higher minimum. (Rev. 02/13/17) Manual Underwriting Not permitted on FHA loans and Freddie Mac loans with 95.01% - 97% LTV. (Added 10/01/16) Maximum Debt to Income Ratio The maximum DTI ratio is 45% for Government loans (FHA, VA, RD). And the maximum DTI ratio is 50% for the Freddie Mac HFA Advantage Conventional Loan. Reference US Bank Bulletin for additional information. (Rev 01/24/18)

14 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!14 Homebuyer Education All borrowers and anyone listed on the deed must take face to face homebuyer education from an approved agency or other educational component approved by the Issuer. The Issuer prefers that education be taken as early in the homebuyer process as possible to maximize the benefit to the borrowers. Borrowers who have owned homes in the last three years are exempt from the homebuyer education classes. All other Borrowers who have not been homeowners in the last three years are not exempt even if purchasing in targeted areas or using the Veteran s Exception. Homebuyer Education Certification is acceptable for a period of one year from issuance. HFA of Pinellas County approved homebuyer education courses: HUD approved agencies, ehomeamerica (online) and Home TRAK (Online). (Rev 08/06/18) Unless otherwise directed, Lenders are responsible for assuring that loans meet the strictest of Agency (FHA, etc) and/or program guidelines with respect to income and sales price limits. Household Income Limits Effective with all loans in the program pipeline 02/14/17 and after, to determine program qualifying income use the borrower/s income as reflected on the Uniform Residential Loan Application (URLA) Form (1003) which is considered in credit underwriting. (Rev.02/13/17) HOUSEHOLD INCOME LIMITS HOMEKEY PROGRAM FHA, VA, RD and FREDDIE MAC LOANS Effective with new loan reservations dated January 12, 2017 County 1-2 Person Household 3 or more Person Household Pasco, Pinellas, Polk $70,800 $82,600 HOUSEHOLD INCOME LIMITS AFFORDABLE INCOME SUBSIDY GRANT FREDDIE MAC LOANS ONLY Reservations 01/24/18 thru 07/28/18 County 80% AMI 50% AMI Pasco $47,840 $29,900 Pinellas $47,840 $29,900 Polk $42,000 $26,250 HOUSEHOLD INCOME LIMITS AFFORDABLE INCOME SUBSIDY GRANT FREDDIE MAC LOANS ONLY Reservations 07/29/18 and after (Rev 07/19/18) County 80% AMI 50% AMI Pasco $51,120 $31,950 Pinellas $51,120 $31,950 Polk $42,880 $26,800

15 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!15 ACQUISITION LIMITS (Sales Price Limits) FOR ALL LOANS The sales price must include everything paid by the buyer or on the buyer s behalf. County NON-TARGET TARGETED Pasco, Pinellas, Polk $255,573 $312,368 PROPERTY QUALIFICATIONS 1. New or existing, attached or detached, one-unit, town-homes, PUD s and condos are allowable in the program. (Revised 02/13/17) 2.While the program refers to Acquisition Limits - in most cases this is the Sales Price and is never FHA Acquisition limits. Has to include everything paid by the buyer or on the buyer s behalf. 3. Homes are considered new if never previously occupied. 4. Manufactured homes, Mobile, recreational, seasonal or other types of vacation or non-permanent homes - not permitted. 5. The remaining economic life of the property may be no less than 30 years. 6. Land may not exceed the size required to maintain basic livability. 7. Properties purchased in the program must be residential units. 2-4 units are NOT eligible for the program. (Rev. 10/01/16) 8.No more than 15% of the square footage of the home being purchased may be used in connection with a trade or business including Child Care services (other than incidental rental from eligible multi-unit structures). 9. No refinances. However, temporary, construction or bridge financing with a term of 2 years or less may be taken out with a program loan 10. Construction to perm is not permitted. Targeted Areas Per the 2010 census, the following census tracts constitute the Targeted Areas for this program Pasco Pinellas Polk

16 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!16 LENDER TRAINING REQUIREMENTS MANDATORY PROGRAM TRAINING FOR LENDERS Lender training is mandatory for anyone working with this program. ehousingplus provides program training online 24/7. To attend, click here. ehousingplus LENDER PORTAL SYSTEM TRAINING Conducted once a week via live WebEx with the ehousingplus Compliance Office. Anyone who will need access to the ehousingplus Lender Portal for the MCC program will need to attend. Training lasts 45 to 60 minutes. Click here to register to attend. LENDER PORTAL USER CREDENTIALS After completing Program training an attendee will receive a follow-up with instructions to apply for user credentials. If you need assistance please contact trainer@ehousing.cc

17 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!17 SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS (Rev 01/24/18) QUALIFY Lenders use program requirements to qualify applicants for the program. Buyers must present an executed sales agreement before being entered into the program reservation system. PROCESS Lenders process the loan as they would normally keeping in mind the program timeline. Please do not reserve funds too soon. Wait to reserve until you are relatively sure your underwriter will approve the loan within 15 days of reservation in the ehousingplus Lender Portal. RESERVE FIRST MORTGAGE FUNDS To reserve funds in program s online system click on this link. Log in and reserve the first mortgage. To reserve funds in the program the borrower is required to have a signed real estate purchase contract for a specific address. You will need a 1003 and the Real Estate Purchase contract in order to make a reservation. If the reservation is successful, you will receive a loan number and a message that you ve completed the reservation successfully. RESERVE SECOND MORTGAGE ASSISTANCE Immediately following reservation of the HFA of Pinellas County HomeKey first mortgage click on the Add Additional button found on the main menu to reserve the second mortgage funds. All fields will populate except for the second mortgage loan amount. Enter the loan amount and then click on the Update button to add the second mortgage assistance to the first mortgage loan reservation. (Added 01/24/18) RESERVE AFFORDABLE INCOME SUBSIDY (AIS) GRANT INCOME QUALIFIED FREDDIE MAC HFA ADVANTAGE LOAN ONLY To reserve the Affordable Income Subsidy Grant funds, immediately following the second mortgage loan reservation, click on the Add Additional tab. The lender will be responsible for calculating the amount of the additional subsidy based upon borrower AMI (view AMI limits on page ) and enter that amount in the ADDITIONAL LOAN tab. The subsidy must be for the exact amount (50bps or 200 bps) based upon borrower AMI - no more and no less. Follow the details step-by-step instructions on the next page. (Added 01/24/18)

18 AIS GRANT STEP-BY-STEP RESERVATION INSTRUCTIONS 1. Click on ADD ADDITIONAL 1 Conventional w/60 day lock FreddieMac HFA Advantage After you click on ADD ADDITIONAL you will see the below. 2. Select one of the options Pinellas 2016B 0.00% DPA Assistance DPA Second AIS 80% AMI - $1,500 AIS 50% AMI - $2,500 After you select one of the options, you will see the below. 3. Click on New Additional Loan Pinellas 2016B 0.00% DPA Assistance DPA Second 4. Enter the calculated loan amount Pinellas 2016B ENTER THE LOAN AMOUNT Buyers at or below 50% AMI = $2,500 Or Buyers at or below 80% AMI = $1,500

19 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!19 UNDERWRITE AND CERTIFY Lenders underwrite & are responsible for credit decisions of the loans in the program. Servicer does not reunderwrite loans. Following credit approval the Lenders Underwriter completes the online Underwriter Certification within the ehousingplus Lender Portal. REQUEST DPA FUNDS - LOAN RESERVATION PRIOR TO JUNE 13, 2018 For loans reserved prior to June 13, 2018, Lenders are required to submit a Wire Transfer Request Form a minimum of three (3) 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. After the Underwriter Certification has been completed, and with a scheduled closing date, the Lender s authorized representative must fill out and execute the Down Payment Assistance Funding Request Form available in the system, under LOAN FORMS. The Request Form must be printed, signed, and scanned in pdf, jpg, tiff or png format. Three (3) business days prior to funding, the Lender sends a complete, executed pdf or scanned version of the DPA Funds Request Form to the following: Karmen Lemberg KLemberg@pinellashfa.com Kathryn Driver kdriver@pinellashfa.com Request Form Review Anything received by 2 pm EST will be verified that day. Requests received after 2 pm EST, will be processed by 12 noon EST the following business day. Special Attention will be given to Forms received on Fridays to ensure that they are sent before start of business on Monday. Any s received over the weekend will be processed on Monday and for Holidays on the next business day. The DPA Funds Request Form is reviewed by the HFA representative for accuracy. Lenders will be contacted if the Form cannot be verified. The HFA will wire funds to the closing agent. Funds are wired directly to the Closing Agent/Title Company and NOT the Lender or Borrower. Please make sure that instructions are provided to internal Processor/Closer and to the Title Company/ Closing Agent. CLOSE For loans reserved June 13, 2018 and after, the Lender will fund the second mortgage assistance at closing. Borrower executes the Affidavit/Certification, DPA Loan Disclosure, Down Payment Assistance Gift Letter, Second Mortgage and Second Note. IT S IMPORTANT that lenders have the borrower(s) sign the DPA Award Letter that meets requirements of (appears in the auto-fill Forms available for closing). Lenders retain original, copies in their FHA Case Binder, to borrowers and to U.S. Bank. (Rev 06/13/18)

20 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!20 CLOSE - BORROWER RECEIVING AFFORDABLE INCOME SUBSIDY GRANT The lender will fund the additional Affordable Income Subsidy (AIS) grant at closing. It is critically important that the lender does NOT combine the second mortgage assistance received from the HFA of Pinellas County HomeKey Program with the AIS grant on the CD. The AIS must be reflected on Page 3, Section L of the CD as Affordable Income Subsidy. This AIS Grant must be reflected in DU or LP findings, along with the Second Mortgage provided by the HFA of Pinellas County HomeKey Program. Any questions about the preparation of the CD should be directed to US Bank HFA Division The AIS grant must be used for down payment and closing cost assistance only. ( Rev 04/07/18) There are two (2) files shipped post closing: SHIP / SUBMIT File #1 is the Compliance File and it is sent to ehousingplus. The Compliance File Checklist is found within the ehousingplus Lender Portal in the Loan Forms section. File #2 is the Mortgage File including Credit Package and it is sent to US Bank. The US Bank Delivery and Funding Checklist is found within the US Bank web site. To locate the US Bank Checklist click on this link: 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. EXCEPTIONS Following review of Compliance File by ehousingplus. if there are exceptions, 1.Lenders will receive notice from ehousingplus via 2.Exceptions will be posted online. Exceptions may be viewed online in two places a. at the loan level and b. in an exceptions report Files with exceptions remain subject to the purchase timelines. EXCEPTIONS CONTINUED Loans are reviewed weekly by ehousingplus to assure compliance with timelines. Questions regarding exceptions should be directed to: services@ehousingplus.com US BANK also notifies lenders of Exceptions, posts exceptions online and sends a weekly summary of outstanding exceptions. APPROVALS Following approval of Compliance File by ehousingplus, lenders are notified and reminded of the purchase deadline.

21 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!21 PROGRAM TIMELINE It is extremely important that lenders are familiar with the timetable established for this program. There are 60 DAYS FROM THE DAY THE LOAN IS RESERVED UNTIL ALL EXCEPTIONS ARE CLEARED AND THE LOAN PURCHASED BY THE SERVICER. Again, the entire process must take place within 60 days of the day the rate is locked in in the Administrator s system. Loan Reservation/Rate Lock (ʺRate Lock Dateʺ): Reservations in the Program Administratorʹs system require than an applicant has (a) placed an eligible residence under contract, (b) completed a loan application with a Lender, and (c) provided a Lender with all documentation required by the Lender including relevant federal income tax returns. Reservations cannot be made more than 20 days prior to closing. Underwriter Certification Following the Rate Lock Date, the Lenderʹs underwriter must complete an online Underwriter Certification. This step must be accomplished well in advance of loan closing. Loan Closing Confirmation No more than 20 days from the Rate Lock Date and on the day of Closing, Lenders must confirm the ʺLoan Closing Dateʺ by entering the date into the Program Administratorʹs System. File Delivery A complete mortgage file must be delivered to the Master Servicer U.S. Bank for purchase within * days of the Rate Lock Date (ʺLoan Delivery Dateʺ). At the same time, a complete Compliance File must be delivered to the Program Administrator ehousingplus. Cleared for Purchase All loan files must be cleared of any exceptions, the Compliance File must receive Compliance Approval and the Mortgage Loan deemed eligible for purchase by the Master Servicer within 60 days of the Rate Lock Date. Final Purchase Date: April 30,2019 Lenders have a total of 40 days from loan closing to deliver a file, clear exceptions and have a loan purchased by the Servicer. Lenders may determine the number of days from closing to delivery with the understanding that all loans must be purchased by the Servicer on or before the 60th day from Rate Lock Date. Lenders must commit to the number of days for all their loans by completing the blank in Exhibit B and simultaneously notifying the Program Administrator. EXAMPLE: If a lender determines that they can deliver loans within 10 days of closing, they will add 10 days to the 20 days to closing for a total of 30 days from Rate Lock Date. They will then enter 30 into the blank in the File Delivery paragraph. Loans not meeting the timetable will cancel.

22 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!22 Extensions 1. There are no extensions for loans not meeting the Closing and File Delivery dates. 2. Extensions may be granted for loans not purchased within the 60 days. 3. EXTENSIONS MUST BE REQUESTED PRIOR TO 60 days from Rate Lock. 4. Extensions will be for 1-30 calendar days. 5. An extension will require a reduction of Lender net profit from 2.00% to 1.40% to account for additional negative arbitrage and/or rate hedging costs incurred by the Issuer. 6. Mortgage Loans that are late for purchase and not delivered within the authorized extension period will be cancelled. 7. Request an Extension For Purchase by clicking the link ehousingplus.com and then click on the SUMMARY tab for instructions.

23 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!23 PROGRAM FEES Origination/Discount Fee LOAN RESERVATIONS MAY 18, 2018 AND AFTER % may be charged and retained by lender as ORIGINATION FEE OR DISCOUNT FEE OR a combination of both BUT may not exceed 1.00% in total. (Rev 05/16/18) LOAN RESERVATIONS PRIOR TO MAY 18, % may be charged and retained by lender as ORIGINATION FEE OR DISCOUNT FEE OR a combination of both BUT may not exceed.50% in total. ehousingplus Fee The program includes a first mortgage Compliance/Admin Fee and a penalty fee of $100 for files that are chronically deficient. The Compliance/Admin Fee is collected at closing, payable to ehousingplus and submitted with the Compliance File. ONLY Cashier s or Corporate checks are acceptable and the fee may not be financed. (Rev 01/24/18) HFA of Pinellas County HomeKey Program Loan $300 HFA of Pinellas County HomeKey Program Loan AND Affordable Income Subsidy Grant $375 The Compliance/Admin Fee is the fee charged by the Program Administrator/Compliance Agent to process the applicant/borrower from Origination to Compliance Approval, and to assess that the lenders originating such loans are following Program guidelines for the benefit of the eligible borrower(s). The Program Administrator/Compliance Agent tracks the loan via its web-based system, and assists the lender in processing the loan ensuring eligibility to the program available offerings, which can include various rate options, and down payment assistance. (Added 10/15/15) The Compliance/Admin fee includes the review of information and documents delivered in the form of a Compliance File by the originating lender, on behalf of the borrower. Additionally the Compliance review verifies that the lender has charged only the fees allowed by the Program. Contrary to this, approval may be denied and/or fees may have to be reimbursed to the borrower. The compliance file processing consists of required affidavits, application, closing documents, certain non-mortgage documents, tax returns where applicable and other pre-defined Program documents that are disclosed to the potential borrower(s). This is required to ultimately receive Compliance Approval. These documents can support both the first mortgage and any down payment assistance available, and are required to ensure eligibility to the Program, Federal, State and Local requirements, where applicable. The Compliance review verifies that the data and documents submitted meet all requirements, and may include those for first-time homebuyer, income limits, sales price limits, targeted areas, homebuyer education, rate, term, points, fee limits, LTV, FICO score, special state, city, county program requirements for qualified military, first responders, teachers, etc.). (Rev 08/22/16) US Bank Fees LOAN RESERVATIONS APRIL 30, 2018 AND AFTER - $80 Tax Service Fee and $400 Funding Fee. These fees will be netted out at time of purchase by US Bank. See US Bank Bulletin L TAX SERVICE FEE CHANGE for further details. (Rev 04/07/18) LOAN RESERVATIONS PRIOR TO APRIL 30, $58 Tax Service Fee and $400 Funding Fee. These fees will be netted out at time of purchase by US Bank. See US Bank Bulletin L TAX SERVICE FEE REDUCTION for further details. (Rev 04/07/18

24 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!24 Lender Fees The program also includes a Home Key Plus Second Mortgage Application Fee of $75 that is retained by the lender. Lender fees must follow Agency guidelines. To the extent permitted by such guidelines, Lenders are permitted to charge an up-front application fee not exceeding the actual cost of the appraisal and credit report. 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. Lenders receive a net amount when the Servicer purchases a program loan. Lender Compensation LOAN RESERVATIONS MAY 18, 2018 AND AFTER - In addition to normal, customary, reasonable fees, Lenders receive compensation of 2.50% (1.00% origination/discount and 1.50% SRP credited by U.S. Bank at loan purchase). (Rev 05/16/18) LOAN RESERVATIONS PRIOR TO MAY 18, In addition to normal, customary, reasonable fees, Lenders receive compensation of 2.50% (.50% origination/discount and 2.00% SRP credited by U.S. Bank at loan purchase).

25 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!25 PROGRAM COMPLIANCE FORMS The program forms are generated directly from the ehousingplus Lender Portal at the loan level. The program forms MUST be printed from the Lender Portal. It is not acceptable to re-create program forms. ( Added 10/15/15) This topic addresses the specific forms required for the program for originating, processing, closing and loan delivery. All forms are in an interactive format. You may download these forms onto your PC or laptop in their interactive format. You simply place your cursor on the first blank, complete and then tab to the next blank. A complete Mortgage package must include all standard Agency (FHA, VA, RD, Section 184 Indian Home loan, Freddie Mac HFA Advantage) forms. (Rev. 10/01/16) While forms may be downloaded on your PC or laptop, going to the Website for forms each time you need them assures that the most current version is being used. The simple rule of who signs program forms if the person is named on the Mortgage/Deed, they sign the program forms. If they are not on the Mortgage/Deed, they do not sign the program forms. Original, personal signatures of all borrowers and sellers are required and must match on all documents associated with the transaction. Whenever a party is known in any of the documents by more than a single name, a Name Affidavit Will Be Required. Powers of Attorney and/or Personal Representatives for the Borrower Are Not Acceptable. Exception: Active Duty Military Personnel may provide an Alive and Well letter. ORIGINATING COMPLIANCE FORMS PRE-CLOSING FORM DPA Wire Request Submitted 3 business days prior to closing to the HFA of Pinellas County. CLOSING FORMS * Affidavit/Certifications Please note that if the Seller is FHA, VA, Fannie, Freddie or a bank in a foreclosure scenario, the Seller Affidavit is not a requirement. DPA Loan Disclosure (Loan reservations PRIOR to 10/01/18) Second Mortgage/Note 1. Original Mortgage and Note must be filed as one document in public records, 2. A copy of the Mortgage and Note must be included in mortgage file to U.S. Bank, and 3. Recorded Mortgage/Note must be sent to U.S. Bank as per U.S. Bank s Final Document instructions. * Authorized Draw Letter * POST CLOSING FORMS * Compliance File Checklist is available online. * Remittance Advice (only special circumstances) Removed Notice to Buyers, Recapture Brochure and Tax Exempt Rider from list of compliance forms. (Rev. 02/13/17)

26 HFA of Pinellas County HomeKey Program Administrator Guidelines Page!26 DOCUMENTS REQUIRED FOR THE COMPLIANCE FILE (Rev 11/15/16) (Effective for loan applications dated 10/03/15 and after) ehousingplus has developed a checklist to be utilized after closing to assemble the Compliance File that is delivered to ehousingplus. The checklist is located in the ehp Lender Portal in the Loan Forms area. PLEASE SUBMIT ONLY COMPLETE FILES IN AN ACCO-BOUND FILE FOLDER IN THE EXACT ORDER SHOWN BELOW. INCOMPLETE AND NON ACCO-BOUND FILES WILL BE RETURNED AT LENDER EXPENSE. The Compliance Checklist Compliance/Admin Fee ORIGINAL OR CERTIFIED TRUE ONLY OF THE FOLLOWING: SIGNED Affidavit - Mortgagor & Seller/Builder Affidavit & Lender Certificate COPIES OF THE FOLLOWING: Signed Income Tax Returns or Transcripts or any combination Homebuyer Education Certificate Real Estate Purchase Contract FINAL SIGNED 1003 FINAL SIGNED CLOSING DISCLOSURE (TRID form) Warranty Deed Discharge papers (DD214) only if Veteran is qualifying under the Veterans Exception THE COMPLETE ACCO-BOUND COMPLIANCE FILE FOLDER IS SUBMITTED TO: ehousingplus 3050 Universal Blvd., Suite 190 Weston, FL PLEASE NOTE: MORTGAGE FILE, INCLUDING CREDIT PACKAGE AND SECOND MORTGAGE DOCS ARE SENT TO U S BANK.