Administrator s Guidelines Housing Finance Authority of Pinellas County 2019A Home Key Bond Program

Transcription

1 ! Administrator s Guidelines Housing Finance Authority of Pinellas County 2019A Home Key Bond Program Published December 03, 2018 Updates are detailed on Page 3!

2 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!2 TABLE OF CONTENTS PROGRAM UPDATES 3 THE HFA OF PINELLAS COUNTY TEAM 5 THE PRODUCTS 6 HOME KEY FIRST MORTGAGE LOAN 6 HOME KEY PLUS SECOND MORTGAGE 6 AFFORDABLE INCOME SUBSIDY (AIS) GRANT 7 Freddie Mac HFA Advantage Loan ONLY 7 FINANCING FACTS 8 PROGRAM REQUIREMENTS 11 Eligible Area 11 Eligible Borrowers 11 Minimum Credit Score 11 Manual Underwriting 11 Maximum Debt to Income Ratio 11 FIRST-TIME BUYER EXCEPTIONS 12 Veterans Exception 12 Targeted Area Buyers 12 PROGRAM HOUSEHOLD QUALIFYING INCOME 13 HOUSEHOLD INCOME LIMITS 13 HOUSEHOLD INCOME LIMITS 13 AFFORDABLE INCOME SUBSIDY GRANT 13 ACQUISITION LIMITS (Sales Price Limits) 13 PROPERTY QUALIFICATIONS 14 MANDATORY LENDER TRAINING REQUIREMENTS 14 SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS 15 COMPLIANCE DELIVERY INSTRUCTIONS 16 PROGRAM TIMELINE 19 Loan Reservation/Rate Lock 19 Underwriter Certification 19 Extensions 19 PROGRAM FEES 20 PROGRAM COMPLIANCE FORMS 22 Who Signs the Program Forms? 23 Who Must Submit Tax Returns/Transcripts? 23

3 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!3 PROGRAM UPDATES New 2019A Guide published

4 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!4 CONTACT DIRECTORY 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) Ashlynn Mosher (954) ext 261 ehousingplus (ehp) 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

5 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!5 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.

6 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!6 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. 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. Pinellas County: $7,500 Pasco County: $7,500 Polk County: $7,500 Assistance may be used for down payment (more than 3-1/2%), closing costs, reimbursement of prepaids. 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. Funding of the HFA s Home Key Plus Second Mortgage - At closing the Lender will fund the second mortgage. 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 an Authorized Draw Letter 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 Draw Letter is accessed for Closing following submission of the Underwriter Certification and is found in the ehousingplus ehportal. The letter includes distribution instructions at the bottom.

7 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!7 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. 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 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.

8 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!8 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. Additional Fees No Broker Fees or additional fees to realtors are allowed to be charged on the first or second mortgage. 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. Cash Back Cash back to the borrower is not permitted. Borrowers are permitted a reimbursement of pre-paids 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-signors (FHA, VA, USDA-RD)- Are permitted to the extent allowed by applicable Agency (FHA,etc). Treat co-signor income as directed by the Agency. A co-signor cannot have any ownership interest in the property (they cannot be on the mortgage/deed/warranty deed). Co-signors (Freddie Mac) - Not allowable. 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 exempt from Documentary Stamps and Intangible Taxes. The second mortgage will auto populate with the exemption language. Please print the following at the bottom of the first mortgage and Note: THIS MORTGAGE AND NOTE ARE EXEMPT FROM DOC STAMPS, INTANGIBLE TAX, AND FLORIDA NONRECURRING INTANGIBLE TAX UNDER FLORIDA STATUTE (1) 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. Flood Certificates For all second mortgage loans, do not charge for flood certificates.

9 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!9 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. Manufactured Homes - 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. 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. Non-Traditional Credit Please contact the US Bank HFA Division for assistance ( ). Ownership in Other Properties 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. 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 and within 60 days of loan closing. Prepayment without penalty. The second mortgage loan, as well as the first mortgage loan, may be prepaid at any time 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 Borrower(s) may be subject to recapture tax upon resale if borrower(s) have a gain resulting from the sale or disposition of the property purchased under this Program within the first nine years of ownership and the initial qualifying annual Household Income increases above specified levels at the time of sale or disposition of the residence. A borrower should be provided the Recapture Brochure at time of reservation, this may be printed directly from the ehportal. 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).

10 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!10 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 Lenders are required to provide the LE and CD for the second mortgage. Second Mortgage Documents / Title Insurance / Mortgagee Clause Documents to be prepared for the second mortgage: LE and CD, Second Mortgage and Second Note. Title Insurance for the second mortgage is not required. A LENDER MUST USE THE SECOND MORTGAGE/NOTE (DESIGNED AS ONE DOCUMENT) AND RECORD THE COMBINED DOCUMENT. Mortgagee Clause / Loss Payee for 2nd Lien: Housing Finance Authority of Pinellas County, it's successors and/or assigns US Why.19 North, Ste. 110, Clearwater, FL U.S. Bank reviews all second mortgage documents post-closing. NOTE: Reference HFA specific checklist for second lien documentation required for delivery in the U.S. Bank Lending Guide at 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.

11 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!11 PROGRAM REQUIREMENTS 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 The eligible area Includes all of 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 (exceptions to the first-time buyer requirement for buyers using the Veterans Exception and buyers purchasing in a Targeted Area qualifying census tract). 2. Buyers and their spouse must not exceed the maximum household income and acquisition limits determined by the program. 3. Follow Agency (FHA, VA, USDA-RD, Freddie Mac) and U.S. Bank guidelines for non-citizens. 4. Buyers must live in the property they purchase as their principal residence. 5. All applicants must be considered irrespective of age, race, color, religion, national origin, sex, marital status, military status or physical handicap. This is an equal opportunity program. 6. Buyers must occupy the property purchased within 60 days of closing. 7. 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. 8. Contact the ehousingplus Compliance with questions regarding eligibility. 9. 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. 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. Manual Underwriting Not permitted on FHA loans. Contact US Bank HFA Division for the Freddie Mac HFA Advantage loan product overlays. 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. 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).

12 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!12 FIRST-TIME BUYER EXCEPTIONS 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. Targeted Area Buyers Identified as Qualified Census Tracts and Areas of Chronic Economic Distress (if any) which are listed below, a borrower purchasing in home in a targeted area census tract is not required to be a first-time buyer. Per the 2010 census, the following census tracts constitute the Targeted Areas for this program. Pasco Pinellas Polk

13 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!13 PROGRAM HOUSEHOLD QUALIFYING INCOME Program qualifying income considers the income of borrowers and their spouses (regardless of spouse s occupancy of the primary residence and whether or not a party to the loan) AND all household members 18 years of age or older (related or unrelated). 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 2019A HOMEKEY PROGRAM FHA, VA, RD and FREDDIE MAC LOANS Pasco & Pinellas Counties Non-Targeted Areas Targeted Areas 1-2 Person Household $63,900 $76,680 3 or more Person Household $73,485 $89,460 Polk County Non-Targeted Areas Targeted Areas 1-2 Person Household $62,500 $75,000 3 or more Person Household $71,875 $87,500 HOUSEHOLD INCOME LIMITS AFFORDABLE INCOME SUBSIDY GRANT FREDDIE MAC LOANS ONLY County 80% AMI 50% AMI Pasco $51,120 $31,950 Pinellas $51,120 $31,950 Polk $42,880 $26,800 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 $271,164 $331,423

14 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!14 PROPERTY QUALIFICATIONS New or existing, attached or detached, one-unit, town-homes, PUD s and condos are allowable in the program. 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. Homes are considered new if never previously occupied. Not permitted in the program: manufactured homes, mobile, recreational, seasonal or other types of vacation or non-permanent homes The remaining economic life of the property may be no less than 30 years. Land may not exceed the size required to maintain basic livability. Properties purchased in the program must be residential units. 2-4 units are NOT eligible for the program. 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). No refinances. However, temporary, construction or bridge financing with a term of 2 years or less may be taken out with a program loan Construction to perm is not permitted. MANDATORY LENDER TRAINING REQUIREMENTS Loan Officers, Loan Processors, Closers, Underwriters Program training is mandatory. ehousingplus provides program training online 24/7. To attend, click here. Post Closers, Shippers, Funders, Anyone clearing file deficiencies, Anyone making payments to ehp Digital Docs training is mandatory. ehousingplus provides training. To attend, click here. ehportal 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. ehportal and Digital Docs User Credentials After completing Program training OR Digital Docs training, an attendee will receive a follow-up with instructions to apply for user credentials. If you need assistance please contact trainer@ehousing.cc

15 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!15 SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS 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 Reservations cannot be made more than 20 days prior to closing. 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. Provide the borrower with the Notices to Buyers and Recapture Tax Brochure at time of reservation printed directly from the ehpotal. IMPORTANT - A reservation is for a borrower with a real estate purchase contract for a specific property. If the property needs to change, the loan must be cancelled and re-reserved. The lender is responsible for cancelling the loan within the ehousingplus Lender Portal. And then, the lender must (services@ehousingplus.com) or call the ehousingplus Compliance office at to have the borrower permanently removed from the ehousingplus Lender Portal. Until this process is complete, the lender will not be able to re-reserve funds for the borrower. 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. 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.

16 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!16 UNDERWRITE AND CERTIFY Lenders underwrite & are responsible for credit decisions of the loans in the program. The program Servicer does not re-underwrite loans. Following credit approval the Lenders Underwriter completes the online Underwriter Certification within the ehousingplus Lender Portal. Once a loan is Underwriter Certified no further changes can be made. If a change needs to occur after the certification is complete, please (services@ehousingplus.com) or call the ehousingplus Compliance office at to request to have the certification removed. Once the Underwriter Certification is complete, program closing forms may be printed from the ehousingplus ehportal. CLOSE It s important to provide accurate closing instructions to closing agents. All program documents must be returned to the lender. The following forms are located within the ehousingplus Lender Portal and must be signed by the borrower at closing: Affidavit/Certification - Signed by the borrower(s) and notarized, Signed by the Seller, Signed by the Lender Tax Exempt Rider - Signed by the borrower(s) Second Mortgage and Note - Signed by the borrower(s) and notarized 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 2019A Bond 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 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. COMPLIANCE DELIVERY INSTRUCTIONS Detailed instructions located on the next page.

17 NEW INSTRUCTIONS FOR THE DELIVERY OF COMPLIANCE FILES, FEES AND CORRECTED DEFI S. Effective December 10, 2018 Compliance Files and Corrections to previously submitted files with erroneous or missing required documents will be managed through the NEW ehousingplus Digital Docs Portal. This NEW Portal provides lenders with all the tools necessary to deliver the required documents for the approval of the originated loan(s) in their respective affordable homebuyer programs. This Portal is a secure, easy to use and efficient way for lenders to deliver the Compliance File, Correct DEFI s and pay the required Compliance Review Fees via our new ehpay on line fee approval, and related tools. Who needs Access to ehp Digital Docs? Closers, Post-closers, Shippers, Defi/Exceptions and Accounting personnel. FIRST STEPS HELPFUL TIPS FOR UPLOADING THE COMPLIANCE FILE The site works best with the Google Chrome browser. All other browsers may encounter problems. If you cannot remember your password, you can reset from the ehp Digital Docs log in screen. You will need a Username and Password to access ehp Digital Docs a. If you are already an existing Active User of the ehportal Lender Portal, you will automatically be set up to use ehp Digital Docs. Your Username and Password will be the same, but you may be prompted to change the password if it does not meet security guidelines. b. If you are NEW to any of the ehousingplus Portals, you will need to request User Credentials at NEXT, ACCESS THE NEW EHP DIGITAL DOCS PORTAL As a participating lender to various programs, you already know that our website at is where you access both Program Info and the Systems. Click on the PROGRAM Tab and select the desired Agency s available Program(s). New Digital Delivery Instructions ehp Digital Docs ehousingplus

18 There are two icons you will immediately see: o This is the existing Lender Origination Portal o This is the NEW ehp Digital Docs Portal. NOW YOU ARE READY TO DELIVER YOUR COMPLIANCE FILE The Compliance File should be a PDF file composed of all required documents on the Checklist. Ø By clicking NEW UPLOAD on the Digital Docs Menu, you will be able to upload the file easily. Ø Currently, there are three file types you will upload into the new DD Portal: Compliance Files, DEFI s, and/or pre-closing documents as required. Additional uploads after the Compliance File are identified as Defis. Ø There is a NOTES Feature in case there is any pertinent information you want to add to the compliance documents. Ø Once Submitted, the System will confirm that the document was uploaded successfully, or it will present an error. Ø All Files Uploaded, can be seen immediately in UPLOADED DOCS. Ø All documents must be a PDF format and must not be locked or encrypted. Ø Documents must be uploaded upright and in a clear legible format. Ø Use the Checklist to make sure you are delivering al required documents. AND SUBMIT THE REQUIRED COMPLIANCE REVIEW FEE Ø Compliance Review Fees may now be submitted separately from the Compliance File. Ø The NEW ehpay is a secure, efficient method for lenders to pay the fees ON- LINE by enrolling in this FREE Program. Loans managed through ehpay are processed faster, without fee errors or other unnecessary delays. Accounting Staff can access ehp Digital Docs and process the compliance fees payment easily via ehpay. New Digital Delivery Instructions ehp Digital Docs ehousingplus

19 TIPS Not sure of the required fee for your loan? Use the FIND MY FEE feature under PAYMENT CENTRAL and get the instant answer. Ø Compliance Files Uploaded are NOT ready for review until the Compliance Review Fee Payment has been received by ehp. Ø FILES PENDING PAYMENT lists Compliance Files that have been uploaded successfully, but whose fee payment is still pending. Lenders can monitor this area to ensure their fees have been delivered in a timely manner. Ø UNIDENTIFIED PAYMENTS are payments received from your company without the proper identification to apply it to the intended loan. Lenders can monitor this area to ensure that payments made are being properly identified with OUR LOAN NUMBER. Ø SHORT PAYMENTS If an incomplete payment is submitted, it will be displayed indicating the amount paid and the correct fee amount. Ø Sign up for ehpay. This is a secure solution for the payment of fees. Talk to one of our ehousingplus Business Representatives about how you can sign up, and to answer any questions related to this new service Ø Make sure that every payment made is properly identified with OUR LOAN NUMBER. This is particularly a problem with Wires and ACH payments, as well as bundled payments. ACH/Wires do not properly identify loans in most cases and hold up the processing of your loans! Ø If submitting a paper check, print the INVOICE/RECEIPT. You can submit the fee for one or several loans at one time by attaching this receipt to your check. NOT QUITE READY TO UPLOAD YOUR COMPLIANCE FILES? During this initial transition of delivering Compliance Files Digitally on our NEW ehp Digital Docs portal, ehousingplus will continue to accept paper Compliance Files from those lenders that need a little extra time. If you are sending the paper files, please continue to ship them as you currently do to: ehousingplus 3050 Universal Boulevard, Suite 190 Weston, FL WE trust that you will soon be utilizing all the new features that have been developed to make the delivery of Compliance Files easier and less costly via our NEW ehp Digital Docs portal available for you, the participating lenders. New Digital Delivery Instructions ehp Digital Docs ehousingplus

20 CORRECTING DEFICIENT FILES ü AS OF 12/10/2018 CORRECTED LOAN DEFICIENCIES WILL NO LONGER BE ACCEPTED VIA . The ehportal (Lender Origination Portal) has various tools that alert lenders when a Compliance File is delivered DEFICIENT. These multiple tools assist you, the lender, in easily correcting these deficiencies and allow your file to be Compliance Approved in a timely manner. Ø System generated DEFI s sent at time of review with corrective actions. Ø Loan s TIMELINE Tab depicts pending deficiencies ANYTIME you log in and view your loan. Ø EXCEPTIONS/DEFICIENCY Reports are available on the REPORTS Menu. WHEN YOU ARE READY TO SUBMIT YOUR CORRECTED DEFI S OR MISSING DOCUMENTS NEW: The Corrected DEFI s will now be submitted and UPLOADED via ehp Digital Docs, using the same easy method the Compliance File is delivered. Log in to ehp DIGITAL DOCS Search for your loan NEW UPLOAD: select your file(s), and if prompted select Corrected DEFI as Type. The NOTES Feature is available to add any relevant information if needed. YOU RE DONE! Defi s may be uploaded as a lender receives a document. Corrected Defi s may be view in ehp Digital Docs under, Uploaded Docs. QUICK TIPS Ø Save time by trying to consolidate corrections to your loan files. Ø Working on DEFI s might be easier if grouped by loan & Program; typically, the same types of errors occur based on varying Program Criteria. Ø Use the reports available on the ehportal (EXCEPTIONS/DEFICIENCIES) as a guide and deliver them easy using ehp Digital Docs. New Digital Delivery Instructions ehp Digital Docs ehousingplus

21 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!18 SUBMIT MORTGAGE FILE & CREDIT PACKAGE TO SERVICER 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. US BANK 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.

22 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!19 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 Reservations cannot be made more than 20 days prior to closing. (ʺRate Lock Dateʺ) Reservations in the ehousingplus ehportal require than an applicant has: (a) placed an eligible residence under contract (b) completed a loan application with a Lender (c) provided a Lender with all documentation required by the Lender including relevant federal income tax returns. 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. Loan Purchase within 60 days of reservation/rate lock. 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: August 1, 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. 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 2019A HomeKey Bond Program Administrator Guidelines Page!20 PROGRAM FEES Origination/Discount Fee 1.00% 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. 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. $300 - HFA of Pinellas County HomeKey Program Loan $375 - HFA of Pinellas County HomeKey Program Loan AND Affordable Income Subsidy Grant 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.). Tax Service Fee $80 payable to Core Logic Tax Services or the Lender s vendor of choice. Funding Fee $400 should reflect as Investor Funding Fee on the LE/CD. 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

24 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!21 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 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).

25 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!22 PROGRAM COMPLIANCE FORMS The program forms MUST generated directly from the ehousingplus Lender Portal at the loan level. The program forms MUST be printed from the ehousingplus ehportal ONLY. Any program forms printed anywhere other than the ehportal will be deemed void and may cause a loan file to not be purchased. This topic addresses the specific forms required for the program for originating, processing, closing and loan delivery. A complete Mortgage package must include all standard Agency (FHA, VA, RD, Freddie Mac HFA Advantage) 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. PRE CLOSING PROGRAM FORMS Notices to Buyers and Recapture Brochure CLOSING PROGRAM 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. Second Mortgage/Note 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. Recorded Mortgage/Note must be sent to U.S. Bank as per U.S. Bank s Final Document instructions. Authorized Draw Letter POST CLOSING PROGRAM FORMS Compliance File Checklist available in the ehousingplus ehportal.

26 HFA of Pinellas County 2019A HomeKey Bond Program Administrator Guidelines Page!23 Who Signs the Program Forms? Non Form Borrower Co-Borrower Purchasing Spouse Co-signor Notices to Buyers Yes Yes Yes No Affidavit/ Certification Authorized Draw Letter Yes Yes Yes No Yes Yes Yes No 2 nd Mortgage Yes Yes Yes No 2 nd Note Yes Yes No Yes Who Must Submit Tax Returns/Transcripts? Borrower Co-Borrower Non Purchasing Spouse Co-signor Yes Yes Yes No