ADMINISTRATOR S GUIDE

Transcription

1 Orange County Housing Finance Authority Freddie Mac HFA Advantage Central Florida Housing Opportunities Program Lake, Orange, Osceola and Seminole Counties ADMINISTRATOR S GUIDE Published on 08/03/18 Revised on 05/18/18

2 Orange County HFA - Central Florida Housing Opportunities Program Page 2 TABLE OF CONTENTS ORANGE COUNTY HOUSING FINANCE AUTHORITY 4 FREDDIE MAC HFA ADVANTAGE 4 WHO TO CONTACT 5 THE PRODUCTS 6 Orange County HFA 7 Central Florida Housing Opportunities Program 7 Eligible Borrowers 7 Eligible Area 7 Minimum FICO Score 7 Maximum Debt to Income Ratio 7 Household Income Calculation 7 Acquisition Limit (Sales Price Limit) 8 Must include everything paid by the buyer or on the buyer s behalf. 8 FINANCING FACTS 8 Homebuyer Education 9 LENDER TRAINING REQUIREMENTS 10 SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS 11 PROGRAM TIMELINE 14 Loan Processing, Delivery and Purchase Timetable 14 PROGRAM FEES 15 FIRST MORTGAGE FEES 15 LENDER FEES 16 LENDER COMPENSATION 16 PROGRAM FORMS 17 DOCUMENTS REQUIRED FOR THE COMPLIANCE FILE 17

3 Orange County HFA - Central Florida Housing Opportunities Program Page 3 REVISIONS CHART Date Revision Page 01/04/18 Revised guide cover to include participating counties Cover 05/18/18 Added AIS Grant information to guide 6, 7, 11, 12, 13 07/23/18 Revised AIS Grant Income Limits effective 07/29/18 New Documentary Stamp and Intangible Tax information Effective 07/01/ /03/18 Revised maximum DTI ratio effective 06/26/18 7

4 Orange County HFA - Central Florida Housing Opportunities Program Page 4 ORANGE COUNTY HOUSING FINANCE AUTHORITY FREDDIE MAC HFA ADVANTAGE! Orange County Housing Finance Authority (HFA) Creates the first mortgage and down payment assistance programs. Sets the rate, term and points, markets the program. The HFA also solicits the participation of other counties and signs inter-local agreements with those choosing to participate. 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. Lenders are responsible for servicing program loans in accordance with Freddie Mac 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. ehousingplus Program Administration Maintains the program reservation system, websites, and posts guides, forms, training materials, provides training on compliance issues and system, answers program compliance questions, receives compliance files, reviews, posts and notifies of exceptions and approves compliance file.

5 Orange County HFA - Central Florida Housing Opportunities Program Page 5 Question General Program Compliance Questions Assistance with ehp Lender Portal Assistance with User Credentials for ehp Lender Portal Update an Underwriter Certified Loan Direct Questions to: ehousingplus (ehp) ehousingplus (ehp) ehousingplus (ehp) WHO TO CONTACT Contact Information support@ehousingplus.com (954) support@ehousingplus.com Ashlynn Mosher (954) ext 261 ashlynne.mosher@ehousingplus.com Anyone at ehp Compliance Office services@ehousingplus.com Program Training ehousingplus (ehp) Click on this link to attend Program training. Program Training Issues ehousingplus (ehp) support@ehousingplus.com System Software Training for ehp Lender Portal ehousingplus (ehp) Click on this link for the once weekly Live Webinar: System Software Issues ehousingplus (ehp) support@ehousingplus.com Program Rates ehousingplus (ehp) Click on this link: to view the Orange County HFA Program 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-underwrite loans. For general questions, contact US Bank at hfa.programs@usbank.com 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

6 Orange County HFA - Central Florida Housing Opportunities Program Page 6 THE PRODUCTS Freddie Mac HFA Advantage Conventional Loan The borrower receives a 30-year, fixed rate, fully amortizing first mortgage loan with 360 level monthly payments as well as a second mortgage in an amount of $7500 to apply toward down payment or closing costs. Current rates and assistance are available online within the system. Certain income limits and purchase price maximum amounts apply. Second Mortgage Assistance The Assistance is $7,500. Lenders advance the Assistance at closing on behalf of the Authority. Lenders are reimbursed at loan purchase. The Assistance may be used for down payment or closing costs and prepaids. While there is no cash back in this program, the borrower may be reimbursed for any overpayment of escrow to the extent permitted by Agency (Freddie Mac) guidelines. Remember to document your files. Second Mortgage Loans bear interest at a rate of 0%, 30 year, deferred (or due upon sale, refinancing, transfer of title, or rental of the home if done within first 30 years). This loan is never forgiven. The lender will fund the second mortgage at closing and US Bank will service the loans. The Second Mortgage offered with the program s First Mortgage Loans can provide up to 100% of the homebuyer s cash to close. Proceeds may be used for any eligible use associated with the Mortgage Loan closing process, including but not limited to closing costs, Lender fees, Servicer fees, prepaids, mortgage insurance premiums, discounts, and the reimbursement of earnest money and pre-close fees, such as credit report and appraisal fees. The second mortgage proceeds may not be used to pay off debt, nor may any surplus funds from the Assistance be paid to the homebuyer over and above any reimbursable fees paid prior to the close of escrow. Second Mortgage Disclosure Requirements The determination has been made that the Orange County HFA Second Mortgage, as non-amortizing 0%, 30-year deferred subordinate loans, IS NOT SUBJECT TO TILA or RESPA and lenders may NOT use the new TRID forms (Loan Estimate and Closing Disclosure) for these loans. The use of a separate HUD-1 Disclosure for the second mortgage is NOT required. Instead, 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. 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. Effective with new loan reservations 05/29/18 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 is 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 Orange County HFA Central Florida Housing Opportunities Program. Any questions about the preparation of the CD should be directed to US Bank HFA Division. (Added 05/18/18)

7 Orange County HFA - Central Florida Housing Opportunities Program Page 7 Orange County HFA Central Florida Housing Opportunities Program Eligible Borrowers * Buyers are NOT required to be first time buyers. * Buyers and their spouses must be able to permanently reside in the US. * Follow Agency (Freddie Mac) and US Bank guidelines for non-citizens. * Buyers must live in the property they purchase as their principal residence. All applicants must be considered irrespective of age, race, color, religion, national origin, sex, marital status, military status or physical handicap. Buyers must occupy the property purchased within 60 days of closing. The past three years federal income tax returns are NOT required. US Bank may have overlays. Please contact the US Bank help desk. There is no Recapture Tax. With a Freddie Mac HFA Advantage Conventional Loan, a borrower CANNOT own other property at the time of closing. Eligible Area Includes all of Lake, Orange, Osceola and Seminole counties. Minimum FICO Score Buyers must have a minimum FICO credit score of 640 (the mid score must be the minimum or above). If Freddie Mac 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. Maximum Debt to Income Ratio The maximum debt to income ratio is 50%. Effective for all new conventional loan reservations 06/26/18 and after. (Rev 08/03/18) Household Income Calculation Qualifying income in this program includes ONLY the 1003 income used to qualify borrower(s) for the loan. Lake, Orange, Osecola, Seminole Counties All Household Sizes Income Limit All counties $82,600 Affordable Income Subsidy (AIS) Income Limits - Reservations 07/29/18 and after. (Rev 07/23/18) Lake, Orange, Osecola, Seminole Counties 80% AMI = $1,500 50% AMI = $1,500 All counties $50,320 $31,450 Affordable Income Subsidy (AIS) Income Limits - Reservation 05/18/18 thru 07/28/18 Lake, Orange, Osecola, Seminole Counties 80% AMI = $1,500 50% AMI = $1,500 All counties $46,720 $29,200

8 Orange County HFA - Central Florida Housing Opportunities Program Page 8 Acquisition Limit (Sales Price Limit) Must include everything paid by the buyer or on the buyer s behalf. $311,881 Property Requirements Primary residences only, new or existing, one unit only, detached or attached, condos (up to 95% LTV), townhomes. Homes are considered new if never previously occupied. Manufactured housing, mobile, recreational, seasonal or other types of vacation or non-permanent homes are not permitted. Land may not exceed the size required to maintain basic livability. FINANCING FACTS It s expected that lenders have reviewed some preliminary documentation and believe that applicants will also qualify for credit. Excessive cancellations will be reviewed to assure that allocation is not being utilized inappropriately. Check with your underwriter for updates to information for Freddie Mac HFA Advantage. Such information is provided by a third party (i.e.freddie Mac, U.S. Bank, etc) who do not provide updated information to ehousingplus. Appraisal must indicate that the home has at least a 30 year remaining useful life. 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. Buydowns Not permitted. Cash Back Cash Back to the borrower is not permitted. However, borrowers are permitted a reimbursement of prepaids and reimbursement of overage of earnest money deposit to the extent any minimum contribution has been satisfied and permitted by Agency guidelines. Construction to perm is not permitted. Co-signers (Freddie Mac) - Not allowable. Documentary Stamps/Intangible Tax LOANS RESERVED 07/01/18 AND AFTER See pages of this guide for details. Documentary Stamps LOANS RESERVED PRIOR TO 07/01/18 First and second mortgages and notes are NOT exempt from documentary stamps. Documentary stamps must be charged. Also, deeds continue to not be exempt. Sellers must pay the fee on the deed. Only in cases of an REO of FHA, VA, USDA, Freddie, Fannie or bank, may the buyer pay the fee on the deed.

9 Orange County HFA - Central Florida Housing Opportunities Program Page 9 Freddie Mac Loan Level Price Adjustment and Adverse Market Fees. These fees have been waived. Freddie Mac HFA Advantage Fact Sheet: hfa_factsheet.pdf 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. Homebuyer Education Buyers utilizing the Freddie Mac HFA Advantage Conventional Loan will be required to attend homebuyer education. This education MUST be provided pre-closing, or the loan will NOT be purchasable by the program Master Servicer, US Bank. The Issuer prefers that education be taken as early in the homebuyer process as possible to maximize the benefit to the borrowers. A Homebuyer Education Certification is acceptable for a period of one year from issuance. Lender provided homebuyer education is unacceptable as is over the phone education. If an education course is not listed on the HUD face-to-face web site, it is not acceptable. Approved Face-to-Face education providers: Face to face from a HUD approved education provider Approved Online education providers: Online education from ehomeamerica Freddie Mac Credit Smart HomeTRAK online education: Manufactured Homes - Not permitted. Minimum Loan Amount There is no minimum loan amount in this program. Maximum Loan Amount Follow Agency (Freddie Mac) guidelines. Must also meet program maximum purchase price limits. Also considered, loans cannot exceed appraised value. DPA cannot be used as borrowers funds make up the difference between appraised value and purchase price. Prepayments The first and second mortgages may be prepaid at any time without penalty. Recapture Tax There is no recapture tax in this program. 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.

10 Orange County HFA - Central Florida Housing Opportunities Program Page 10 Refinances This program is for new mortgage loans. Refinances are not permitted. However, temporary, construction or bridge financing with a term of 2 years or less may be taken out with a program loan. Remaining reserves are not established by this program. Mac. If any, these are determined by Freddie Tax Returns or Tax Transcripts are NOT required for this program. US Bank may have overlays. Please contact the US Bank help desk at 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

11 Orange County HFA - Central Florida Housing Opportunities Program Page 11 SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS (Rev 05/18/18) 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. (Rev 05/18/18) RESERVE SECOND MORTGAGE ASSISTANCE Immediately following reservation of the Orange County HFA Central Florida Housing Opportunities 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 05/18/18) 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 7) and enter that amount in the ADDITIONAL LOAN tab. The subsidy must be for the exact amount ($1500 or $2500) based upon borrower AMI - no more and no less. Follow the details step-by-step instructions on the next page. (Added 05/18/18)

12 Orange County HFA Central Florida Housing OpportuniOes Program AIS Grant STEP-BY-STEP RESERVATION INSTRUCTIONS 1. A%er the first mortgage is reserved, click on the ADD ADDITIONAL in the main menu bar. 2. A%er you click on ADD ADDITIONAL the following pop-up box will appear. Choose either 80%AMI or 50% AMI. Orange Freddie Mac Program 0.00% DPA Assistance 3. Click on New AddiOonal Loan in the main menu bar. Orange Freddie Mac Program 0.00% DPA Assistance 4. Enter the amount of assistance. Then click on the UPDATE in the main menu bar. Orange Freddie Mac Program Orange Freddie Mac Program Enter assistance amount Buyers at or below 50% AMI = $2,500 Or Buyers at or below 80% AMI = $1,500

13 Orange County HFA - Central Florida Housing Opportunities Program Page 13 UNDERWRITE AND CERTIFY Lenders underwrite & are responsible for credit decisions of the loans in the program. Servicer does not re-underwrite loans. Following credit approval AND WITHIN 15 DAYS OF LOAN RESERVATION, Underwriter completes the online Underwriter Certification within the ehousingplus Lender Portal. CLOSE Borrower executes the Mortgagor Certificate, DPA Loan Disclosure, Down Payment Assistance Award letter, Second Mortgage and Second Note. 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 grant assistance received from the Orange County HFA Central Florida Housing Opportunities 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 Orange County HFA Central Florida Housing Opportunities 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 05/18/18) 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 Lenders are notified by ehousingplus and US Bank of exceptions. Exceptions for both ehousingplus and U.S. Bank are available in the ehousingplus web-based system.

14 Orange County HFA - Central Florida Housing Opportunities Program Page 14 PROGRAM TIMELINE Buyers must have a fully executed sales contract for a specific property in order to have funds reserved or be on a waiting list. The contract may be dated prior to the date of the loan application. Buyers may be pre-qualified. However, if the buyer does not have a contract on a property, program funds cannot be reserved for the buyer until such time as the buyer presents a valid contract. To assure that loans are purchased, please follow the Processing, Delivery and Purchase Timetable below. Please DO NOT reserve loans that cannot meet the timetable. This is particularly important with respect to new construction, foreclosures and short sales. Please wait to reserve funds until loans can meet the timelines below. Loans not purchased within the timeframe below, cannot be purchased. The revolving pool of funds assures continuous funding. rush to reserve funds. Fund availability makes it unnecessary to Loan Processing, Delivery and Purchase Timetable Once a loan is reserved in the ehousingplus system and is provided the Servicer s Loan number, the loan must be 1. Underwriter certified within 15 days of loan reservation; 2. Purchased within 60 days of loan reservation. Loan Purchase Extension Any loan not purchased within 60 days is ineligible for purchase unless the lender chooses a onetime only 30-day extension. The cost of the extension is $500. The $500 extension penalty fee is due whether or not loans are ultimately delivered and/or purchased. The $500 will be netted by the Servicer when loans are purchased. If an extension is permitted, but the loan is not purchased, the originating lender will have 15 days from the date of notice from Issuer to pay the Issuer $500. A lender will be unable to make additional reservations in the Program until all extension fees have been paid to the Issuer. Again, the extension is offered once per loan and no further extensions will be allowed. Furthermore, regardless of choosing an extension, any loan not purchased within the approved timeframe will become the liability of the originating lender, including any down payment assistance provided at closing. An extension request is available on the ehousingplus web site and must be submitted BEFORE the 60th day. The extension request is completed and submitted online.

15 Orange County HFA - Central Florida Housing Opportunities Program Page 15 PROGRAM FEES FIRST MORTGAGE FEES Lenders may charge 1.00% Origination AND ZERO DISCOUNT. Please see pages 8 and 9 of this guide for guidance regarding Documentary Stamps and Intangible Taxes. ehousingplus Fees The program includes a first mortgage Compliance/Admin Fee $300 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. 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. 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.). US Bank Fees $58 Tax Service Fee and $400 Funding Fee. These fees will be netted out at time of purchase by U.S. Bank. Note: Please do not send separate checks for these fees.

16 Orange County HFA - Central Florida Housing Opportunities Program Page 16 LENDER FEES 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 stamp and intangible taxes, 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. LENDER COMPENSATION Total Lender Compensation = 1.50% from SRP plus 1.00% Origination Fee

17 Orange County HFA - Central Florida Housing Opportunities Program Page 17 PROGRAM 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. All forms are available behind security in the ehousingplus Lender Portal. The forms are behind security so that system data is accessed when the forms are printed. The forms auto-fill and are ready for execution. It s important that Underwriters and Closers are certain that the data in the system is correct before forms are printed. The simple rule of who signs program forms if the person is named on the Mortgage or Warranty Deed or is the spouse of the Mortgagor (even if a non-borrowing spouse), they sign the compliance 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. DOCUMENTS REQUIRED FOR THE COMPLIANCE FILE 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 Mortgagor Certificate COPIES OF THE FOLLOWING: Homebuyer Education Certificate Real Estate Purchase Contract FINAL SIGNED 1003 FINAL SIGNED CLOSING DISCLOSURE (TRID form) Warranty Deed THE COMPLETE ACCO-BOUND COMPLIANCE FILE FOLDER IS SUBMITTED TO: ehousingplus 3050 Universal Blvd., Suite 190 Weston, FL 33331

18 Orange County HFA - Central Florida Housing Opportunities Program Page 18 U.S. BANK WEBSITE The following may be found on the US Bank ALL Regs web site. Division please call To contact the US Bank HFA U.S. Bank Lending Manual Delivery Checklist Bulletins Delivery & Funding Training 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 Click Florida Click Orange County Then click on the information you want to access!

19 Orange County HFA - Central Florida Housing Opportunities Program Page 19 Orange County Housing Finance Authority 2211 E. Hillcrest Street Orlando, FL Dear Lenders: The Orange County Housing Finance Authority is a proud member of the Florida Association of Local Housing Finance Authorities, which worked hard to encourage the Florida Legislature to enact legislation to allow housing finance authority mortgages to be exempt from the Florida documentary stamp tax. We are so pleased that the Legislature enacted Section (2), Florida Statutes, because of their efforts! The great news is that the new statute provides the exemption for mortgages made by or on behalf of a housing finance authority. The not so great news is that to qualify for the exemption, an affidavit identifying the mortgage as a housing finance authority mortgage must be recorded with each mortgage. The first mortgage payable to the Lender and the second mortgage payable to the Authority must each be recorded with their own affidavit. The affidavits can be executed by the Authority or an agent of the Authority. The undersigned has executed a certificate that designates both the lenders and the mortgagors as the agents of the Authority for purposes of executing and recording the affidavits. It is expected that the Authority Board will adopt a resolution when it next meets specifically designating both the lenders and the mortgagors as its agents for purposes of executing and recording the affidavits and ratifying and confirming the prior actions of the Executive Director with regard to designation of agents to execute and deliver the affidavits. We believe that it will be easiest for the affidavits to be executed by the mortgagors and notarized in the same manner as the signature page of the mortgages, and then recorded immediately prior to the mortgages at the time of closing. The Administrator for the Authority s Homebuyers Dream and Housing Opportunities Programs will include the form of affidavit for the first mortgages in the on-line system. The Authority s second mortgage will be revised to incorporate the affidavit as page one of the second mortgage. We are asking you as the lender (or with your loan processor), to fill out the affidavits for execution by your mortgagors. We have attached forms of the affidavits, along with detailed instructions on how to fill out the affidavits as Exhibits A and B. We know this is a change, and that it will take some time to get the process smoothed out. If you are closing a loan and have been unable to (or didn t know you needed to!) have the affidavits prepared, let us know and the Authority will send executed affidavits to the closing agent or title company. 1

20 Orange County HFA - Central Florida Housing Opportunities Program Page 20 Don t forget: All first mortgages reserved on or after July 1, 2018 will be exempt from the Florida documentary stamp tax (if an affidavit is recorded with the first mortgage), but are not exempt from the non-recurring intangible tax. Please remember to adjust your numbers to take this into account. All second mortgages reserved on or after July 1, 2018 will be exempt from the Florida documentary stamp tax (if an affidavit is recorded with the second mortgage), and are exempt from the non-recurring intangible tax. Please remember to adjust your numbers to take this into account. To qualify for the documentary stamp tax exemption, each mortgage must be recorded with its own affidavit. You as Lender (or your loan processor) will prepare the affidavits for execution by your Mortgagor. The form of the affidavit for the first mortgage along with instructions for completing it, is attached hereto as Exhibit A. The form of the affidavit for the second mortgage along with instructions for completing it, is attached hereto as Exhibit B. Please let your loan processors and closing agents know that the affidavit relating to each mortgage should be recorded immediately prior to the mortgage. Thank you for being a great partner! We love what you do for our community. ORANGE COUNTY HOUSING FINANCE AUTHORITY W.D. Morris Executive Director 2

21 Orange County HFA - Central Florida Housing Opportunities Program Page 21 EXHIBIT A - AFFIDAVIT REGARDING EXCISE TAX EXEMPTION FOR FIRST MORTGAGES AFFIDAVIT OF ORANGE COUNTY HOUSING FINANCE AUTHORITY REGARDING EXEMPTION FROM DOCUMENTARY STAMP TAX PURSUANT TO SECTION (2), FLORIDA STATUTES FOR FIRST MORTGAGE STATE OF FLORIDA COUNTY OF (1) DO NOT RE-TYPE, THIS FORM MAY ONLY BE PRINTED DIRECTLY FROM THE EHOUSINGPLUS LENDER PORTAL. The undersigned authorized representative of the MORTGAGOR named below, hereby affirms: 1. That MORTGAGOR has been designated by the Orange County Housing Finance Authority (the Authority ) as its agent for purposes of providing this Affidavit in accordance with Section (2), Florida Statutes, for purposes of establishing that the Mortgage described herein is exempt from the excise tax on documents under Chapter 201, Florida Statutes. 2. That this Affidavit is being given in connection with that certain Mortgage dated (2), 20, from (3) [Names of Mortgagors] (individually or collectively the MORTGAGOR ) to (4) [Name of Lender] to secure a mortgage loan in the principal amount of $ (5), which loan provides financing for the acquisition of real property located in (6) [Name of County], Florida, at (7) [Street Address] which Mortgage shall be recorded immediately after this Affidavit. 3. That said Mortgage secures a loan that was made by or on behalf of the Authority under the provisions of Section (8), Florida Statutes. Dated this day of (8), 20. (9) Typed Name: (10) Mortgagor The foregoing instrument was acknowledged before me on (11), 20, by (12), as MORTGAGOR. (13) Notary Public--State of Florida Personally Known Produced Identification Print Notary Name: My Commission Number is: 3

22 Orange County HFA - Central Florida Housing Opportunities Program Page 22 Type of Identification My Commission Expires: DO NOT RE-TYPE, THIS FORM MAY ONLY BE PRINTED DIRECTLY FROM THE EHOUSINGPLUS LENDER PORTAL. Instructions for completing First Mortgage Affidavit: 1. Type the name of the County where the affidavit is being signed 2. Type the date of the First Mortgage 3. Type the name(s) of the Mortgagor(s) 4. Type the name of the Lender 5. Type the (number) amount of the First Mortgage 6. Type the name of the County where the home being purchased is located 7. Type the street address of the home being purchased 8. Type the date that the First Mortgage Affidavit is executed 9. Have the Mortgagor(s) sign on this line 10. Type the name(s) of the Mortgagor(s) 11. The Notary should write or type the date that the First Mortgage Affidavit is signed before the Notary 12. The Notary should write or type the name(s) of the Mortgagor(s) who signed the First Mortgage Affidavit 13. The Notary should complete the notary form as normal for a notarized document Record the First Mortgage Affidavit immediately prior to the First Mortgage. Include the following language at the bottom of page 1 of the first mortgage: THIS MORTGAGE IS EXECUTED AND DELIVERED IN CONNECTION WITH A LOAN MADE BY OR ON BEHALF OF A HOUSING FINANCE AUTHORITY. IT IS EXEMPT FROM DOCUMENTARY STAMP TAX PURSUANT TO THE PROVISIONS OF SECTION (2), FLORIDA STATUTES UPON THE FILING OF THE ATTACHED AFFIDAVIT. 4

23 Orange County HFA - Central Florida Housing Opportunities Program Page 23 EXHIBIT B - AFFIDAVIT REGARDING EXCISE TAX EXEMPTION FOR SECOND MORTGAGES AFFIDAVIT OF ORANGE COUNTY HOUSING FINANCE AUTHORITY REGARDING EXEMPTION FROM DOCUMENTARY STAMP TAX PURSUANT TO SECTION (2), FLORIDA STATUTES FOR SECOND MORTGAGE STATE OF FLORIDA COUNTY OF (1) DO NOT RE-TYPE, THIS FORM MAY ONLY BE PRINTED DIRECTLY FROM THE EHOUSINGPLUS LENDER PORTAL. The undersigned authorized representative of the MORTGAGOR named below, hereby affirms: 1. That MORTGAGOR has been designated by the Orange County Housing Finance Authority (the Authority ) as its agent for purposes of providing this Affidavit in accordance with Section (2), Florida Statutes, for purposes of establishing that the Mortgage described herein is exempt from the excise tax on documents under Chapter 201, Florida Statutes. 2. That this Affidavit is being given in connection with that certain Mortgage dated (2), 20, from (3) [Names of Mortgagors] (individually or collectively the MORTGAGOR ) to the Authority to secure a mortgage loan in the principal amount of $ (4), which loan provides financing for the acquisition of real property located in (5) [Name of County], Florida, at (6) [Street Address] which Mortgage shall be recorded immediately after this Affidavit. 3. That said Mortgage secures a loan that was made by or on behalf of the Authority under the provisions of Section (8), Florida Statutes. Dated this day of (7), 20. (8) Typed Name: (9) Mortgagor The foregoing instrument was acknowledged before me on (10, 20, by (11), as MORTGAGOR. 12 Notary Public--State of Florida 5

24 Orange County HFA - Central Florida Housing Opportunities Program Page 24 Personally Known Print Notary Name: Produced Identification My Commission Number is: Type of Identification My Commission Expires: DO NOT RE-TYPE, THIS FORM MAY ONLY BE PRINTED DIRECTLY FROM THE EHOUSINGPLUS LENDER PORTAL. Instructions for completing Second Mortgage Affidavit: 1. Type the name of the County where the Second Mortgage Affidavit is being signed 2. Type the date of the Second Mortgage 3. Type the name(s) of the Mortgagor(s) 4. Type the (number) amount of the Second Mortgage 5. Type the name of the County where the home being purchased is located 6. Type the street address of the home being purchased 7. Type the date that the Second Mortgage Affidavit is executed 8. Have the Mortgagor(s) sign on this line 9. Type the name(s) of the Mortgagor(s) 10. The Notary should write or type the date that the Second Mortgage Affidavit is signed before the Notary 11. The Notary should write or type the name(s) of the Mortgagor(s) who signed the Second Mortgage Affidavit 12. The Notary should complete the notary form as normal for a notarized document Record the Second Mortgage Affidavit immediately prior to the Second Mortgage. 6