Housing Floridians Structured Partnership Product Overview

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1 Housing Floridians Structured Partnership Product Overview FHLBank Atlanta and Florida Local Housing Finance Agencies March 15, 2017

2 Housing Floridians Overview Structured Partnership Structured arrangement between the Federal Home Loan Bank of Atlanta (FHLBank Atlanta) and a group of Florida local housing finance agencies (HFAs) using a universal agreement Lead HFA Participating Counties Products At least a HFA of Hillsborough County HFA of Miami-Dade County HFA of Pinellas Hillsborough*, Brevard, Clay, and Duval Miami-Dade* ** Pasco, Pinellas*, and Polk FHA Loans VA Loans RD Loans Freddie Mac* Fannie Mae** Section 108 Indian Program Orange County HFA Orange, Lake, Osceola, and Seminole Funding $1 Million $2 Million 2:1 Ratio FHLBank Atlanta commitment is up to $ 1 million FL HFAs maximum commitment is $2 million FHLBank Atlanta and FL HFAs will commit grant funds on at least a 2:1 ratio, on a transactional basis FEDERAL HOME LOAN BANK OF ATLANTA 2

3 Housing Floridians Overview What is the value to shareholders? Exclusive access to $11,250 to $22,500 per household in grant funding for eligible homebuyers in targeted markets to assist in the purchase of their primary residence Engage local HFAs via a single agreement (universal MOA) Major metro markets in Florida CRA Innovation Strategy Positive branding and public relations FEDERAL HOME LOAN BANK OF ATLANTA 3

4 Housing Floridians Overview FEDERAL HOME LOAN BANK OF ATLANTA 4

5 Housing Floridians Key Partner Overview FL HFAs Provide down-payment assistance (second mortgages) in an estimated amount of $7,500 $15,000 per unit for the purchase of an eligible property FHLBank Atlanta Members First and second mortgage originator and submit application for FHLBank Atlanta funds through FHLBAsap FHLBank Atlanta Provide grants of up to $7,500 to support the purchase of an eligible property Homebuyer Submit required documentation to an FHLBank Atlanta member and complete required pre-purchase counseling U. S. Bank Investor and Master Servicer purchase and service first and second mortgages ehousingplus Program administrator/compliance agent provides online reservation reporting system for first and second mortgages FEDERAL HOME LOAN BANK OF ATLANTA 5

6 Housing Floridians FHLBank Atlanta Shareholder s Role Shareholders become participating lenders with the Florida HFAs engaged in the partnership via a universal MOU and approval from U.S. Bank Shareholders originate the first and second mortgages based on program guidelines Grant funds are delivered to eligible borrowers (households) exclusively through FHLBank Atlanta shareholders Shareholders manage intake, processing, and funding of transactions via FHLBAsap and the ehousingplus lender portal (online reservation and reporting system) FEDERAL HOME LOAN BANK OF ATLANTA 6

7 Housing Floridians Product Matrix First Mortgage Term/Rate All loan types are 30-year fixed rate Government FHA, VA, USDA, and RD (all counties), Section 108 Indian Program loans (Pinellas only) Conventional Freddie Mac HFA Advantage (Miami-Dade, Hillsborough, and Pinellas only) - Fannie Mae HFA Preferred (Miami-Dade only) FL HFA sets the interest rate on the first mortgage Max LTV/CLTV As permitted by Agency (FHA, RD, VA, and Freddie) guidelines Minimum FICO/ Maximum DTI 640 for Brevard, Clay, Duval, Hillsborough, Orange, Lake, Osceola, Seminole, and Miami- Dade counties 660 for Pasco, Pinellas, and Polk counties (640 for Freddie Mac HFA Advantage Program) DU, LP or GUS ONLY no manual underwriting for FHA loans in Miami-Dade, Pasco, Pinellas, and Polk counties Maximum debt-to-income ratio cannot exceed 45% FEDERAL HOME LOAN BANK OF ATLANTA 7

8 Housing Floridians Product Matrix Origination/Discount Points Brevard, Clay, Duval, Hillsborough, Orange, Lake, Osceola, Seminole, and Miami-Dade counties Lenders may charge 1% origination and/or discount (any combination but not more than 1%) Pasco, Pinellas, and Polk counties Lenders may charge 0.50% origination and/or discount (any combination but not to exceed 0.50%) Servicing Release Premium Lender will close the first mortgage in their name and sell the mortgage to the program designated Master Servicer, U.S. Bank. Upon loan purchase, U.S. Bank will pay the lender a service release premium (SRP) Brevard, Clay, Duval, Hillsborough, Orange, Lake, Osceola, Seminole and Miami-Dade counties: 1.50% Pasco, Pinellas, and Polk counties: 1.75% Origination to Purchase Timeline Reservation to UW Cert: 15 calendar days (cancelled if not certified) Reservation to Loan Purchase: 60 calendar days FEDERAL HOME LOAN BANK OF ATLANTA 8

9 Housing Floridians Product Matrix Second Mortgage Term/Rate Second mortgage 0% interest 30-year deferred Never forgiven Repayment is deferred, except in the event of the sale, transfer, satisfaction of the first mortgage, refinancing of the property, or until such a time the mortgagor ceases to occupy the property at which time, the second mortgage will become payable in full Second Mortgage Amount $7,500 for Pasco, Pinellas, and Polk counties $10,000 for Brevard, Clay, Duval, $15,000 for Hillsborough and Miami-Dade counties $10,000* for Orange, Lake, Osceola, and Seminole counties * Participating lenders will also receive a $ processing fee for the second mortgage Minimum FICO/ Maximum DTI 640 for Brevard, Clay, Duval, Hillsborough, Orange, Lake, Osceola, Seminole, and Miami- Dade counties Pasco, Pinellas, and Polk counties - Government loans Freddie Mac HFA Advantage- 640 DU, LP or GUS ONLY no manual underwriting for FHA loans in Miami-Dade, Pasco, Pinellas, and Polk counties Maximum debt-to-income ratio cannot exceed 45% FEDERAL HOME LOAN BANK OF ATLANTA 9

10 Housing Floridians Product Matrix Third Mortgage Term/Rate Third Lien 0% interest 5-year deferred Forgiven Third Mortgage Amount Up to $7,500 N/A FICO/ DTI Repayment, forgiven at approximately 20% per year. In the event of sale or refinancing of the property within five years resulting in a gain, the mortgage will become payable at a prorated portion of the subsidy amount. FEDERAL HOME LOAN BANK OF ATLANTA 10

11 Housing Floridians Who is Eligible to Receive Housing Floridian Funds? Household Eligibility Household income must be < = 80% of the county area median income, or state median family income, adjusted for family size (whichever is greater) FHLBank Atlanta AHP Income Limits Owner-occupant of the property Complete FHLBank Atlanta s prescribed homebuyer counseling program provided by ClearPoint Credit Counseling Solutions Contribute the product s matching requirement Minimum $1,000 contribution No cash back to the borrower FEDERAL HOME LOAN BANK OF ATLANTA 11

12 Housing Floridians Becoming a Participating Lender Overview Easy as 1-2-3! Contact FHLBank Atlanta Participating lenders must be members of FHLBank Atlanta Learn More Interested lenders contact FHLBank Atlanta for more information on the lender approval process Lender Approval Visit to view, execute, and return lender participation documents FHLBank Atlanta Membership Directory Rob Boyd rboyd@fhlbatl.com ShaDonte Butler sbutler@fhlbatl.com Cassandra Madden cmadden@fhlbatl.com FEDERAL HOME LOAN BANK OF ATLANTA 12

13 Housing Floridians Participating Lender Approval Timeframe Contact Sue Denihan For Lender Approval Process Universal MOA and US Bank Approval and Program Training 30 Days Total FEDERAL HOME LOAN BANK OF ATLANTA 13

14 Housing Floridians Outreach and Marketing Drive potential borrowers to consumer website Website includes logos of each participating member Income Calculator to determine borrower eligibility FEDERAL HOME LOAN BANK OF ATLANTA 14

15 Housing Floridians Outreach and Marketing Member Locator Tool AHP Income Calculator Tool FEDERAL HOME LOAN BANK OF ATLANTA 15

16 Housing Floridians Outreach and Marketing Press Releases Member Marketing Materials FEDERAL HOME LOAN BANK OF ATLANTA 16

17 Do You Have Any Questions? We are happy to help! FEDERAL HOME LOAN BANK OF ATLANTA 17