KHC s 45 th Anniversary

Transcription

1 2017 REGIONAL

2 KHC s 45 th Anniversary Created by the 1972 General Assembly. Self-supporting, public corporation of the Commonwealth of Kentucky. Governed by a 15-member Board of Directors. Quasi-governmental agency. Administratively attached to the Finance and Administration Cabinet. KHC works with many partners across the state to invest in and create affordable housing opportunities. KHC has made the American Dream possible for more than 94,000 Kentuckians since 1972.

3 New Executive Director Edwin King

4 RECENT CHANGES

5 2017 Recent KHC Changes KHC s Home Buyer Tax Credit. Income and Purchase Price Limits. DAP. Single Pay Upfront option for Mortgage Insurance. Student Loan debt through Fannie Mae Programs. Electronic Welcome Letter from KHC to New Homeowners. KHC s Minimum Credit Score Requirements. GUS Access on RHS Loans for TPO Lenders. Affordable DAP. Fees. Reservation Extension Policy.

6 KHC s Home Buyer Tax Credit Effective January 1st Tax Credit increased from 25% to 35%. New Home Buyer Tax Credit Pamphlet. Redesigned Home Buyer Tax Credit page with FAQ s Redesigned Home Buyer Tax Credit flier

7 Income and Purchase Price Limits Effective May 1st Secondary Market. Purchase Price Limit: $282,000. Income Limit Range: $98,875 - $130,725. MRB/KHC s Home Buyer Tax Program. Purchase Price Limit: $253,800. Income Limit Range: $53,200 - $104,580.

8 Jefferson: $116,200 Fayette: $116,550 NKY: $130,725 Warren: $108,500

9 Jefferson: $66,400 $76,360 Fayette: $66,600 $76,590 NKY: $74,700 $85,905 Warren: $62,000 $71,300

10 Down Payment Assistance Program Effective May 1st First Mortgage Loan not required to be at maximum LTV. KHC s DAPs take a second lien position. As long as KHC s DAP remains in second position other Down payment Assistance Programs can be used. Welcome Home Funds. City/Government Monies. Employer Assistance Funds. DAPs can work with seller paid closing costs, gifts and borrower s own funds.

11 Minimum Credit Score lowered Effective May 25th Conventional Programs. 660 Government Programs. 620 KHC s foreclosure and default rates well below the national average. KHC s default rate in April was a historic low at 2.63% Thanks to our lender partners, for continuing to make sustainable & affordable mortgages through KHC!

12 Conventional is Better than FHA No Upfront MI option. Reduced MI. Less documentation. No case number to order. Mortgage Insurance can be cancelled or avoided. A lower monthly payment to the borrower!!!

13 Terms FHA With DAP Conventional No MI With DAP Conventional With MI With DAP Interest Rate Base First Mortgage Financed MI Total First Mortgage Amount Monthly MI Monthly Payment 4.25% 5.125% *Higher Rate* 4.625% $144,750 $145,500 $145,500 $2,533 N/A N/A $147,283 $145,500 $145,500 $102 N/A $101 $827 $792 *Lower Payment* Monthly Savings N/A $35 savings vs FHA $849 $22 higher than FHA **Can Drop MI** Based on $150,000 purchase price, 97% LTV, 30 year fixed interest rate.

14 KHC Conventional vs. Home Ready Mortgage Insurance Rates HFA Preferred & Preferred Risk Sharing Higher Income Limits. Secondary Market. KHC DAPs. No MI Option. Lower MI Payments. Counseling from multiple sources. Home Ready / Home Possible Lower Income Limits. 100% AMI. No KHC DAP. Higher MI Payments.

15 KHC Conventional vs. Home Ready KHC s Charter Coverage % = 18% % = 16% % = 12% 85 81% = 6% Home Ready % = 25% % = 25% % = 12% 85 81% = 6%

16 Mortgage Insurance Borrower paid monthly Approved MI Companies. Arch MI Essent Genworth MGIC National MI Radian United Guaranty Cancelled automatically when the LTV based on the original value reaches 78%.

17 Mortgage Insurance Effective March 8 th Single Pay Premium Single Pay Premium Upfront. Borrower, Lender, or DAP paid. Paid entirely at closing. Often the lowest monthly PITI payment of the MI options. Refundable or non-refundable.

18 Terms Interest Rate Base First Mortgage Financed MI Total First Mortgage Amount Monthly MI Monthly Payment Monthly Savings Conventional HOME READY KHC Conventional No MI With DAP KHC Conventional w /monthly MI With DAP KHC Conventional With Single Premium MI With DAP 4.625% 5.125% 4.625% 4.625% $142, ,500 $142,500 $142,500 N/A N/A N/A $ Single Premium $142,500 $142,500 $142,500 $142,500 25% $111 N/A 16% $99 N/A $843 $775 $831 $732 N/A $68 savings vs Home Ready $12 savings vs Home Ready $111 savings vs Home Ready $23 savings vs Conventional NO MI Based on $150,000 purchase price at 95% LTV, 30 year fixed interest rate.

19 Fannie Mae Announcement Effective April 25 th -- SEL If a payment amount is provided on the credit report, that amount can be used for qualifying purposes. If the credit report does NOT identify a payment amount (or reflects $0), the lender can use either: 1% of the outstanding student loan balance, or A calculated payment that will fully amortize the loan based on the documented loan repayment terms. ***The only exception to use the $0 payment (reported on credit report) is if documentation can be provided to show the IBR payment is $0***

20 Electronic Welcome Letter from KHC Effective March 2017 New borrowers of closed loans. Monthly basis. Survey. Experience through the loan process. Links to Loan Servicing for auto draft. Share feedback and highlight in KHC s egrams. Lenders need to complete address of all borrowers. Loan Review tab.

21 Welcome Letter Results March s sent. 54% Opens 30% Clicks. 3 Positive Responses out of 5 completed surveys. Chase Blume: Century Mortgage Company. Clayton Farris: Stockyards Bank & Trust Company. Ravi Patel: Option Financial, LLC.

22 Welcome Letter Results April s sent. 54% Opens. 43% Clicks. 4 Positive Responses out of 4 completed surveys. Becky Bleemel: Caliber Home Loans. Elayne Havens: American Mortgage Service Company. Keith Swisher: Statewide Mortgage, LLC. Seldon Sullivan: PrimeLending, a Plains Capital Company.

23 Welcome Letter Results May s sent. 56% Opens. 49% Clicks. 5 Positive Responses out of 5 completed surveys. Daniel Rettig: InterLinc Mortgage Services, LLC. Elayne Havens: American Mortgage Service Company. Kyle Wheatley: Century Mortgage Company. Maggie Clark: Cumberland Valley National Trust Bank. Racee Greene: Century Mortgage Company.

24 GUS Access for TPO Lenders Effective May 25th TPO Lenders have access to GUS through KHC. Select KHC as lender. Manual Underwrite allowed (only with RHS) when an Approval is not received through GUS. Must submit GUS Findings.

25 Affordable DAP Effective June 1st Applicant s Income Only. Based on County. Higher Income limits. Household size no longer a factor. This change makes more borrowers eligible for Affordable DAP at 1% over 10 years!

26 Jefferson: $53,120 Fayette: $53,280 NKY: $59,760 Warren: $49,600

27 New Fees Effective July 1st Administration Fee. $125 Appraisal Fees for TPO Lenders: Government: $495 Conventional: $425 Final Inspection: $150

28 Reservation Extension Policy Effective June 22nd 7 days for.125% -- NEW option 15 days for.25% 30 days for.50% KHC will extend any reservation free of charge that expires on a weekend or holiday through the next business day. Borrower always has a total of 75 days ( ) before worst case pricing!

29 KHC VALUE

30 Community Reinvestment Act Is a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low-and moderate-income neighborhoods.

31 Value of KHC CRA Credit. How can KHC help you with CRA? Lower income borrowers. Send KHC lower loan amounts to a minimum of $15,001! Interest Rate It is what it is no add on pricing. Lower loan amounts. Credit Score. Manufactured housing.

32 DESKTOP UNDERWRITER Version 10.1 Release Overview

33 DU Version 10.1 Coming the weekend of July 29, 2017 Updated DU Risk Assessment. Credit history (age), payment history, late payments, public records, foreclosures, deed-in-lieu, inquiries. Maximum DTI of 50%. No longer require compensating factors. Disputed Tradelines. DU will first access using all tradelines reported as disputed by the borrower. If Approve recommendation no further documentation is needed. When an Approve recommendation is not received lender will confirm if account belongs to borrower an accuracy of the information. If borrower s account then may be downgraded to manual underwrite.

34 DU Version 10.1 Coming the weekend of July 29, 2017 Self-employment Income Documentation. Eligible for one year of personal and business tax return documentation. Employment Offer Message. Policy is being updated to provide the option for delivery of the loan prior to the borrower starting employment when additional eligibility requirements are met (waiting on specific requirements from Fannie Mae). Treatment of Timeshares. Certain timeshare installment loans are reported in the credit report data as mortgage related and are considered a mortgage in DU Version DU Version 10.1 will no longer treat timeshare loans as a mortgage.

35 KHC RATIO GUIDELINES

36 Ratio Guidelines Effective July 29, 2017 with DU 10.1 KHC is increasing back-end ratio limit of 45% to 50% on all conventional loans with DU Approval.

37 SELLER CONTRIBUTIONS Fannie Mae

38 Seller Contributions Fannie Mae Effective August 1, 2017 Fannie Mae is raising allowable seller contributions on LTV s greater than 90%. From 3% to 4%. Only with HFA Preferred and Preferred Risk Conventional programs. Special Feature Code: 849 for the 4% seller contribution.

39 NEW DOWN PAYMENT SOURCES Effective July 18, 2017

40 AFFORDABLE CLOSING COST GRANT Conventional Loans

41 Affordable Closing Cost Grant $1,500 grant. Applicant(s) income must be under Affordable DAP income limits. Available on conventional loans only. Shown as a lender credit on the first mortgage LE/CD. KHC will fund or include in purchase monies for eligible loans. Funds are limited. Loan must be closed by end of ***System still being updated khcuw@kyhousing.org the reservation number to add the Affordable Closing Cost Grant***

42 Jefferson: $53,120 Fayette: $53,280 NKY: $59,760 Warren: $49,600

43 HHF DAP New Reservations as of July 18, 2017 at 2:00 PM ET

44 HHF DAP $4 million -- $3 million new money ($1 million announced in Christian County) $10,000, 0 percent interest, forgivable over a 5 year term. Income and purchase price limits follow funding source. Property located in Christian, Hardin, Jefferson or Kenton County. No new-construction properties. Property must have been previously occupied. Borrower must be first time home buyer Most recent 3-year federal tax returns or tax transcripts required. Pre-purchase home buyer education required for ALL borrowers. Cannot go below 81% LTV on conventional loans. Dodd Frank Certification form must be completed. GFE, TIL and HUD-1.

45 USE THESE FUNDS TO THE FULLEST Sales Tips

46 Scenario #1 Repeat Homebuyer. Purchasing $145,000 (fixer upper) property in Bullitt County. Property Appraised at $160,000. Credit Score 750. Borrower s own funds ($13,000) from previous sale to use for upgrades or required appraisal repairs. Self-Employed with adjusted Gross Income of $51,000. No seller concessions. Does not want to pay MI. What would be the best option for this customer?

47 Affordable DAP with Affordable CC Grant 2MK Conventional 97% NO MI product. Affordable DAP with Affordable Closing Cost Grant % first mortgage interest rate. Affordable DAP Income limit $53,120. Total Cash to Close $7750. Down payment $4350. CC & prepaids $3400. Affordable DAP $4500 at 1% over 10 years. Affordable Closing Cost Grant $1500. Borrower funds $1750. Borrower has $11,250 remaining for upgrades.

48 Scenario #2 First Time Homebuyer. Purchasing $130,000 home in Jefferson County. $46,000 Gross Annual Income. Credit Score 688. $4,000 Gift from Parents. $2,000 Seller Concessions. You are competing for this client with a national lender who has rocketed to popularity based on their smart phone based technology and catchy marketing. What KHC products can you offer this client that the missile can t touch?

49 HHF DAP with Affordable CC Grant 2MK Conventional 90% LTV w/mi. HHF DAP with Affordable Closing Cost Grant. Add a KHC Home Buyer Tax Credit % first mortgage interest rate. Affordable DAP Income limit of $53,120. Total Cash to Close $16,200. Down payment $13,000. CC & prepaids $3,200. Affordable Closing Cost Grant $1,500. HHF DAP $10,000 5 year forgivable second mortgage. Gift from parents of $4,000. Seller Concessions $2000. ZERO cash from borrower.

50 KHC QUICK REFERENCE CARDS

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54 THINGS TO COME STAY TUNED! MRB Special Funding

55 MID-YEAR STATISTICS

56 Top 10 Delegated/Correspondent Lenders 1. CENTURY MORTGAGE COMPANY 2. AMERICAN MORTGAGE SERVICE COMPANY 3. STOCKTON MORTGAGE CORPORATION 4. COMMONWEALTH BANK & TRUST COMPANY 5. FIRST LIBERTY FINANCIAL 6. CALIBER HOME LOANS 7. ENVOY MORTGAGE LTD 8. INTERLINC MORTGAGE SERVICES LLC 9. HOMESERVICES LENDING, LLC 10. FAIRWAY INDEPENDENT MORTGAGE CORPORATION

57 Top 10 TPO Lenders 1. STATEWIDE MORTGAGE, LLC 2. CUMBERLAND VALLEY NATIONAL BANK AND TRUST 3. CITIZENS NATIONAL BANK OF SOMERSET 4. INDEPENDENCE BANK OF KENTUCKY 5. HERITAGE BANK MORTGAGE SERVICES 6. NEW PERSPECTIVE MORTGAGE LLC 7. SWAN FINANCIAL CORPORATION 8. AMERICAN MORTGAGE SOLUTIONS INC 9. SOUTH CENTRAL BANK INC 10. CITIZENS FIRST BANK INC

58 Top 10 Loan Officers 1. Elayne Havens 2. Ravi Patel 3. Lindsay Ballard 4. Josh Price 5. Clayton Farris 6. Josh M. Hay 7. Christie Brown 8. Michael Clark 9. Dustin Mistelske 10. Tracy Holtsclaw

59 Top MCC Lenders / Loan Officers Lenders 1. American Mortgage Service Company 2. Stockton Mortgage Corporation 3. Stock Yards Bank & Trust Company 4. Commonwealth Bank & Trust Company 5. Caliber Home Loans 6. Republic State Mortgage Company 7. Century Mortgage Company 8. Envoy Mortgage LTD 9. Option Financial, LLC 10. Cumberland Valley National Bank & Trust Loan Officers 1. Clayton Farris, Stockyards Bank & Trust 2. Elayne Havens, American Mortgage Service Co 3. Ravi Patel, Option Financial Mortgage

60 QUESTIONS Open Discussion

61 KHC MAKING AN IMPACT In Kentucky

62 Beverly Haskins / Louisville, KY After losing her job, Beverly received assistance from the Unemployment Bridge Program (UBP) to help pay her house payment. UBP gave Beverly time find employment and eventually open her own business.

63 Jennie & Emery Mullins / Whitesburg, KY Emory and Jeannie love their two-story farmhouse in Letcher County, but it lost cool air in summer and allowed cool air inside in winter. Through KHC federal weatherization grant funding, low-income homeowners, like Emory and Jeannie, can make their homes more energy efficient and lower energy bills. Just a week after their energy audit, Emory and Jeannie s home repairs were completed, sealing air leaks and making their home more comfortable and cost-effective all year long.

64 Beverly Raines / Frankfort, KY Beverly Raines rented for many years before pursuing homeownership through a KHC mortgage two years ago. Now she, her son, Barrett, and their dog, Bella, live in a beautiful home in Franklin County. Beverly appreciates having her loan serviced by KHC rather than a call center out of state and enjoys the ease of having taxes and insurance paid through her escrow account.

65 Breondra Cork / Paducah, KY Breondra worked full time to support her family and decided to delay her education. She just needed a little support to achieve her dream of an advanced education. Through KHC s investment in construction and rental assistance for Scholar House locations, single parents can obtain rental assistance, receive counseling and parenting education, and gain support from neighbors and staff, while working on academic or vocational coursework as full-time students. With KHC s support, Breondra completed her associate degree and is working on her bachelor s degree.

66 Wes Farmer / Bowling Green, KY Wes is a resident of the Men's Addiction Recovery Campus (MARC) in Bowling Green. Recovery Kentucky is a joint effort by the Department for Local Government, the Department of Corrections, and KHC to build ten housing recovery centers across the state. As supportive housing developments, each center uses a recovery program model that includes peer support, daily living skills training, job responsibilities, and challenges to practice sober living.

67 Share your Success Stories Be sure to share your KHC success stories. Photos. s. Reviews. Celebrate Affordable Housing

68 Recent Success Story

69 Contacts Cindy Bradley Ext. 347 Jamie Swindler Ext. 329 KHC Hotline Ext. 291

70 THANK YOU