URBAN RESIDENTIAL FINANCE AUTHORITY OF THE CITY OF ATLANTA, GEORGIA. HOME ATLANTA 4.0 FEBRUARY 22, 2013 Revised Revisions are shown on Page 3

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1 ehousingplus Administrator s Guidelines URBAN RESIDENTIAL FINANCE AUTHORITY OF THE CITY OF ATLANTA, GEORGIA HOME ATLANTA 4.0 FEBRUARY 22, 2013 Revised Revisions are shown on Page 3

2 HOME ATLANTA 4.0 Program Administrator Guidelines Page 2" TABLE OF CONTENTS Topic See Page Table of Contents 2 Revisions Table 3 The URFA Team 4 PROGRAM PRODUCTS 5 THE REQUIREMENTS" About the Borrower FICO Score, Maximum Debt to Income Ratio, Homebuyer Education, Household Income Limits " About the Property Purchase Price Limits, Eligible Area About the Financing LoanTypes, Appraisal, Asset Test, Buydowns, Cash Back, Construction to Perm, Cosigners, Minimum Loan Amount, Prepayments, RecaptureTax, Remaining Reserves THE PROCESS" Process Summary Process Guidelines for Requesting Down Payment Assistance ProgramTimetable Loan Processing, Delivery and Purchase Timetable, Extensions Program Fees THE DOCUMENTS REQUIRED FOR COMPLIANCE FILE US BANK WEB SITE INFORMATION 16

3 HOME ATLANTA 4.0 Program Administrator Guidelines Page 3" Date Page 14, Lender Net Increased REVISIONS TABLE Pages 9, 11, 14, Revised language to conform to requirements of Mortgagee Letter and Page 16, US Bank new Verification Form See US Bank Bulletins Pages 9, 11 Further clarified Notice of Dpa Assistance Gift Letter Page 5, Two rate options available in the program Page 6, updated income limits eft ; Page 7, tool to determine if property located in City of Atlanta; Page 17, U.S. Bank Website information updated Page 13, US Bank funding fee increased to $300

4 HOME ATLANTA 4.0 Program Administrator Guidelines Page 4" URBAN RESIDENTIAL FINANCE AUTHORITY (URFA) OF THE CITY OF ATLANTA, GEORGIA URFA TEAM" URFA Create and direct implementation of the first mortgage and down payment assistance programs, set the interest rate, term and points, table fund down payment assistance and market the program. Participating Lenders Take applications, reserve in their own systems, process, underwrite, approve, fund, close and sell qualified loans to the program. Lenders are responsible for servicing program loans in accordance with Agency requirements until they re purchased by the Master Servicer. US Bank Master Servicer Provides information on acceptable loan products and delivery and funding first mortgage, receives all first mortgage files, reviews first mortgage files, notifies lenders of first mortgage file exceptions, approves first mortgage files, purchases pools and delivers loans, delivers certificate. ehousingplus Program Administration Maintains the program reservation system, websites, and posts Administrator s guide, forms, training materials, provides program and system training, answers program and system questions, receives compliance files, reviews, posts and notifies of exceptions and approves compliance file.

5 HOME ATLANTA 4.0 Program Administrator Guidelines Page 5" PROGRAM PRODUCTS" Please note that mortgage interest rates and assistance grant percentages are subject to change at any time. With respect to reserved loans, the rate and assistance will not change as long as loans are delivered according to the timetable included in this Guide. Program mortgage interest rates are available in the reservation system. All loans will be 30- year, fixed, assisted rate loans and are fully amortizing. " Daily Rate Lock Reservation Availability" Reservations in this program are available Monday - Friday 10:00 a.m. - 8:00 p.m. Eastern Time excluding holidays. REFINANCES" Refinances are permitted under the following conditions -- All loans must have a minimum FICO of 640, and a maximum DTI of 45%. No Cash Out. FHA to FHA streamline are eligible only if U.S. Bank is currently servicing the FHA loan (U.S. Bank to U.S. Bank). Conventional loans, RHS or VA Loans that qualify for FHA refinancing are eligible, however, full documentation will be required. Questions concerning refinances should be directed to U. S. Bank. FIRST MORTGAGE RATE OPTIONS" OPTION 1: FIRST MORTGAGE WITH ASSISTANCE GRANT " The borrower receives a 30-year, fixed rate, fully amortizing first mortgage loan with 360 level monthly payments as well as an assistance payment equal to a percentage of the note amount 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. The Assistance is calculated on the Note amount. This amount is provided by the Authority at closing. 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 (FHA, VA) guidelines. Remember to document your files. Because the Assistance is a fixed percentage, any remaining Assistance must be applied as a principal reduction. Assistance is in the form of a non-repayable grant. It is not repayable under any circumstances. When you reserve the first mortgage, the Assistance is automatically reserved. There is no additional reservation necessary. When you close the loan there are no second mortgages, second notes, deed restrictions or liens. There is no repayment. Please see pages Process Guidelines for Requesting Down Payment Assistance. OPTION 2: BELOW MARKET RATE FIRST MORTGAGE NO ASSISTANCE GRANT The borrower receives a 30-year, fixed rate, fully amortizing first mortgage loan with 360 level monthly payments. Current rate is available online within the system. Certain income limits and purchase price maximum amounts applly.

6 HOME ATLANTA 4.0 Program Administrator Guidelines Page 6" BORROWER REQUIREMENTS" THE REQUIREMENTS There is no first-time homebuyer requirement in this program. Borrowers must follow InvestAtlanta guidelines regarding ownership of other property. Borrowers must be able to permanently reside in the US. Please contact ehousingplus with questions regarding permanent residency. Work visas, student visas, any temporary visas do not qualify. Those with permanent asylum do qualify and should provide an I-9. Buyers must occupy the property within 60 days of closing. Applicants must be considered irrespective of age, race, color, religion, national origin. Contact ehousingplus ( and/or with questions regarding eligibility. MINIMUM CREDIT SCORE Buyers must have a minimum FICO credit score of 640, the mid score must be the minimum or above. If an Agency (FHA, 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 loans, then lenders must use the higher minimum. For home buyers without a FICO score, manual underwriting shall be permitted. Underwriters must follow the manual underwriting guidelines for the product. MAXIMUM DEBT TO INCOME RATIO The maximum DTI (debt to income) ratio for this program is 45%. HOMEBUYER EDUCATION" All borrowers (any person on the Note/Warranty Deed) eligible for the Home Atlanta first mortgage program must attend an Invest Atlanta approved 6-8 hour home buyer education course. A certificate of completion must be received prior to closing. Click here for the list of approved courses Please note that borrowers eligible for the Home Atlanta first mortgage program AND the Neighborhood Lift Downpayment Assistance Program must receive a Homebuyer Education Certificate (HEC) from a local provider that meets both Invest Atlanta and Neighborhood Lift guidelines. See the approved list for more details. Updated HOME ATLANTA 4.0 INCOME LIMITS 1 Person Household $63, Person Household $72, Person Household $81, Person Household $90, or more Person Household $97,300.00

7 HOME ATLANTA 4.0 Program Administrator Guidelines Page 7" PROPERTY REQUIREMENTS ABOUT THE PROPERTY New or existing, one-four units, detached or attached, condos, town homes, manufactured homes that meet servicer/insurer/guarantor requirements. Homes are considered new if never previously occupied. 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. Properties purchased in the program must be residential units. PURCHASE PRICE LIMITS " $374,268 ELIGIBLE AREA " Incorporated City of Atlanta. Added To determine if property is located in the city of Atlanta, go to gis.atlanta.gov, type in the property address and look for the three qualifying indicators (Neighborhood, NPU and Council District)

8 HOME ATLANTA 4.0 Program Administrator Guidelines Page 8" ABOUT THE FINANCING The following mortgage products are offered in this program: FHA VA No conventional loans permitted U.S. Bank provides the types of government loans permitted. 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 program funds are not being utilized inappropriately. Program Features (permitted and not permitted) Appraisal must indicate that the home has at least a 30 year remaining useful life. Assets are NOT required to be considered for purposes of program eligibility. However, interest income on assets over $5,000 will be counted as a part of income calculation. Buydowns are NOT permitted. Cash Back to the borrower is NOT permitted. However, borrowers are permitted a reimbursement of prepaids and overage of earnest money deposit as permitted by Agency guidelines and to the extent any minimum contribution, if any, has been satisfied. Construction to perm is NOT permitted. Cosigners are NOT permitted. Minimum loan amount. There is NO minimum loan amount in this program. Prepayments. The first mortgage may be prepaid at any time without penalty. Recapture tax. There is NO recapture tax requirement in this program. Remaining reserves are NOT established by the program. Follow Agency Guidelines.

9 HOME ATLANTA 4.0 Program Administrator Guidelines Page 9" SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS MANDATORY PROGRAM TRAINING Lender training is mandatory for anyone working with this program. Training is provided by the Administrator -- See TRAINING tab located on georgia/urfa/ -- ehp University program and system information are available 24/7. See Page 16 for U.S. Bank Website information. ehousingplus LENDER PORTAL SYSTEM TRAINING Conducted once a week via live WebEx with the ehousingplus Compliance Office. We highly encourage anyone who will reserve funds, complete an underwriter certification, print forms or clear exceptions to attend this 30 minute training. Click here to register to attend. LENDER PORTAL USER CREDENTIALS Following ehp University training, Lenders apply for User Credentials on the with instructions received in an the Wednesday following training. QUALIFY" Lenders qualify applicants for the program. Buyers must present an executed sales agreement before being entered into the program reservation system. RESERVE To reserve funds in program s online system click on this link. Log in and reserve the first mortgage that automatically provides Assistance. You will receive a loan number and a message that you ve completed the reservation successfully. PROCESS" Lenders process the loan as they would normally keeping in mind the program timelines. 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 form. Access system on the ehousingplus website. GRANT FUNDING Please see the next two pages for detailed information. CLOSE (Rev7-1-13) Lender closes loan. At closing, the Mortgagor executes the following: Mortgage Assistance Income Calculation Worksheet; Affidavit of Homebuyer Eligibility and the GNMA Grant Letter. AT CLOSING, BORROWERS MUST ALSO SIGN THE AWARD LETTER. DIRECTIONS OF WHAT TO DO WITH THE LETTER ARE DETAILED AT BOTTOM OF THE FORM. SHIP / SUBMIT Use the Compliance Checklist to assemble the Compliance File. The Compliance File is submitted directly to ehousingplus. The first mortgage file, credit package and recorded mortgage documents are submitted to US Bank.

10 HOME ATLANTA 4.0 Program Administrator Guidelines Page 10" PROCESS GUIDELINES FOR REQUESTING DOWN PAYMENT ASSISTANCE (DPA) FUNDS Based on NEW HUD-mandated regulations, URFA MUST provide DPA funds directly to the Closing Agent. The Lender may no longer advance these funds. The requirements apply to all loans and the process is as follows: 1. Lender will reserve the first mortgage and any assistance as is being done today in the online system at 2. Lender will process the loan(s) and update the information in the system as the loan moves through the pipeline. 3. Once the loan has been approved internally, the Lender s Underwriter will execute the Underwriter s Certification online. 4. After the Underwriter Certification has been completed, and with a scheduled closing date, the Lender s authorized representative must fill out and execute the Down Payment Assistance Funding Request Form available in the system, under FORMS. The form will have a Loan Confirmation Form appended to it. 5. The Request Form must be printed, signed, and scanned in pdf, jpg, tiff or png format. 6. Three (3) business days prior to funding, the Lender sends a complete, executed.pdf or scanned version of the Down Payment Assistance Funding Request Form and the Commitment Form, to ehousingplus (ehp) at fundsrequest@ehousingplus.com. 7. Request Form Review: a. Anything received by 2:00 pm ET will be verified that day and the requests will be forwarded to the HFA. b. Requests received after 2:00 pm ET, will be processed by 12:00 noon ET the following day. c. Special Attention will be given to Forms received on Fridays to ensure that they are forwarded before the start of business on Monday. d. Any s received over the weekend will be processed on Monday and s received on Holidays will be processed on the next business day. 8. The Down Payment Assistance Funding Request Forms will be reviewed by (ehp) for accuracy. Lenders will be contacted by ehp if the Form cannot be verified. Verified forms will be forwarded by ehp to URFA staff members at homeownership@investatlanta.com. 9. URFA will verify the documentation and (1) send the approval transmittal and wire request to the lender and (2) send closing instructions to the attorney. 10.After URFA receives and approves the HUD-1 settlement statement from the attorney, the wire will be sent.

11 HOME ATLANTA 4.0 Program Administrator Guidelines Page 11" Rev IT S IMPORTANT that lenders (1) have the borrower(s) sign the letter that meets requirements of (appears in the auto-fill Forms available for closing labeled as ) and retain original with copies to borrower, US Bank and a copy in the FHA Case Binder; AND (2) have a copy of the wire or proof of the wire delivered to the Closing Agent. Lenders retain proof, place a copy of the proof in their FHA Case Binder and FOLLOW US BANK requirements. ehousingplus goal is to facilitate the notification and approval process and to provide Lenders the assistance needed to ensure the DPA Funds are available at each closing. Please make sure that ehp and Frank George addresses are added to your white lists/contacts as both systems generated and other s related to the DPA Funds Request will be sent. Should you have any questions, please contact ehp staff at services@ehousingplus.com or Frank George at fgeorge@investatlanta.com.

12 HOME ATLANTA 4.0 Program Administrator Guidelines Page 12" PROGRAM TIMETABLE" 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. Loans not purchased within the timeframe below, cannot be purchased. The revolving pool of funds assures continuous funding. unnecessary to rush to reserve funds. Fund availability makes it 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. Closed and delivered to the Servicer within 45 days of loan reservation; and 3. Purchased within 70 days of loan reservation. Any loan not purchased within 70 days is ineligible for purchase unless the lender chooses a onetime only 30-day extension. The cost of the extension is $375. The $375 extension fee is due whether or not loans are ultimately delivered and/or purchased. The $375 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 be billed for the extension fee of $375. Any outstanding fees owed by the Lender may result in that Lender becoming ineligible to participate in the program. At 101 days, a loan that hasn t been delivered is cancelled and cannot be reinstated. 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 HOME ATLANTA 4.0 web page at Then click on the SUMMARY link, scroll down to the area titled - Extension. Program Docs hold the Extension Request form that is completed and submitted online. Remember that the form must be submitted BEFORE the 70th day after loan reservation.

13 HOME ATLANTA 4.0 Program Administrator Guidelines Page 13" PROGRAM FEES" FIRST MORTGAGE FEES " The lender may charge an Origination Fee of 1.00% and a Discount Fee of 1.00% or 2.00% Origination if permitted by Agency Guidelines. The buyer or seller is permitted to pay the fees if permitted by Agency Guidelines. No additional origination or discount fees are allowed. The program includes a first mortgage Program Fee of $225. The fee is payable at closing and remitted to ehousingplus with the Compliance File. Cashier s or Corporate checks are acceptable. Personal checks are not accepted. The fee must be disclosed on the HUD-1 as being paid to ehousingplus and cannot be financed. US Bank fees of $85 Tax Service Fee and, effective with all loans registered on or after June 9, 2014, a Funding Fee of $300 are payable at closing. Both must be disclosed on the HUD-1 as being paid to U.S. Bank. They will be netted at loan closing and cannot be financed. (Revised Funding Fee formerly known as Transfer Fee.) Lenders are permitted to charge reasonable and customary charges for out of pocket expenses and costs. Other financing costs such as legal fees and underwriting fees may be charged and courier fees may be charged if such fees are normally charged. Lenders may charge the usual and reasonable settlement costs. Settlement costs include titling and transfer costs, title insurance, survey fees or other similar costs. Other allowable fees include doc prep fees, notary fees, hazard, mortgage and life insurance premiums, recording or registration charges, prepaid escrow deposits and other similar charges allowable by the insurer/guarantor. "Junk" fees are not a defined term and may not be charged. Excessive fees are not permitted in the program. LENDER NET" Lenders net a total of 2.50% with the retention of the Origination and Discount Fees described above for FHA loans. Lenders net a total of 2.00% with the retention of the Origination and Discount Fees described above for VA loans. LOAN PURCHASE PRICE (Revised ) Lenders fund the first mortgage and URFA advances the Downpayment Assistance. Lenders are reimbursed % at loan purchase by U.S. Bank for FHA loans and % for VA loans.

14 HOME ATLANTA 4.0 Program Administrator Guidelines Page 14" DOCUMENTS REQUIRED FOR COMPLIANCE FILE ehousingplus has developed a checklist to be utilized after closing to assemble the Compliance File that is delivered to ehousingplus. The documents are outlined below DPA Funding Request Form (Original) Following completion of the Underwriter s Certification and not less than 3 business days prior to closing, the DPA Funding Request Form should be utilized. See detailed instructions on pages Compliance File Checklist (Original) Please use the compliance File Checklist to compile the Compliance File. The original should be placed in the Compliance Files. 3. Mortgage Assistance Income Calculation Worksheet (Original) Located on - This form should be completed online as an interactive form, printed and signed by the Lender. The original should be placed in the Compliance File. 4. Affidavit of Homebuyer Eligibility (Original) This form is available behind security on the ehousingplus web site. Form is auto-filled by ehousingplus system and executed by the Lender. The original should be placed in the Compliance File. 5. GNMA Grant Letter Notice of Downpayment Assistance (no longer required in Compliance File) Rev This form is available behind security on the ehousingplus web site. Borrower executes at closing and receives a copy. Original letter is retained by the lender. Copy is placed in Agency case binder and a copy is sent to US Bank (see US Bank Bulletins). 6. Real Estate Purchase Contract (Copy) 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 a subdivision name are required. All named persons must sign. Include the name and title whenever a representative is signing for a corporation. A copy should be placed in Compliance File. 7. Final Typed Loan Application Form 1003 (Copy) 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. A copy should be placed in Compliance File 8. HUD-1 Settlement Statement (Copy) Buyer, seller and closing agent must fully execute the HUD-1. Borrowers on the HUD-1 must be all persons taking title to the property and must match the Affidavit and application. Persons not taking title to the property may not appear or sign the HUD-1. The Application Fee must be shown as being payable to ehousingplus. Please do not bundle charges. Itemize all charges to the transaction. Payoffs of other debt must appear on Page 1 under Section 100 of the HUD-1 as part of "Settlement Costs". A copy should be placed in Compliance File.

15 HOME ATLANTA 4.0 Program Administrator Guidelines Page " Warranty Deed (Copy) A copy of the Warranty Deed is required and should be placed in File. 10. Homebuyer Education Certificate (Copy) A copy of the Homebuyer Education Certificate must be in the Compliance File. All those on the Note must attend homebuyer education.

16 HOME ATLANTA 4.0 Program Administrator Guidelines Page 16" U. S. BANK WEB SITE INFORMATION Down Payment Assistance Funding Verification Form - USB002 This form may be found on the US Bank ALL Regs web site. U.S. Bank Checklists U.S. Bank Lender 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 Georgia Click URFA Then click on the information you want to access

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