Oklahoma County Home Finance Authority Turnkey Mortgage Origination Program

Transcription

1 Oklahoma County Home Finance Authority Turnkey Mortgage Origination Program! Administrator s Guidelines Published - January 4, 2013 Updated 04/23/18 Updates are shown on Page 3!

2 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 2 TABLE OF CONTENTS REVISIONS TABLE 3 REVISIONS TABLE CONTINUED 4 OKLAHOMA COUNTY HOME FINANCE AUTHORITY PROGRAM TEAM 5 WHO TO CONTACT 6 THE PROGRAM PRODUCTS 7 Program Rates and Reservation System Availability 7 Assistance 7 Mortgage Loan Options 8 PROGRAM REQUIREMENTS 10 Eligible Borrowers 10 Homebuyer Education - FHA, VA RD Borrowers 10 Homebuyer Education - Freddie Mac HFA Advantage Borrowers 10 HOUSEHOLD INCOME LIMITS FOR TURNKEY FIRST MORTGAGE PROGRAM 10 ALL LOAN PRODUCTS 10 Use Form 1003 Credit Qualifying Income 10 Eligible Area 10 HOUSEHOLD INCOME LIMITS AFFORDABLE INCOME SUBSIDY GRANT 11 80% of AMI $55, % of AMI $53, PURCHASE PRICE LIMITS FOR TURNKEY FIRST MORTGAGE PROGRAM AND AFFORDABLE INCOME SUBSIDY GRANT 11 Property Requirements 11 ABOUT THE FINANCING 12 LENDER TRAINING REQUIREMENTS 13 SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS 14 PROGRAM TIMETABLE 18 Loan Processing, Delivery and Purchase Timetable 18 Extension Request 18 PROGRAM FEES 19 First Mortgage Fees 19 Lender Compensation 20 PROGRAM FORMS 21 US BANK WEB SITE INFORMATION 22

3 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 3 REVISIONS TABLE Date Topic (effective date shown in date column and applies to reservation date unless otherwise noted. Page Added ehp fee information & revised US Bank fees Added disclaimer regarding not reproducing program forms Revised U.S. Bank Funding Fee Revised U.S. Bank Manufactured Housing policy Added Freddie Mac HFA Advantage and new section 14, 25 9, 20 7, Revised FICO Score Language Maximum DTI for manually underwritten HFA Advantage loans Homebuyer education requirement for HFA Advantage loans Program Products Chart Minimum Credit Score language revised Manufactured Housing Manual underwriting 8, , , 21 10, Revised ehp Fee 15, Program Products Chart change - now includes manual underwriting for FHA loans Deleted language excluding FHA loans from manual underwriting ehousingplus fee change Clarified minimum FICO language Updated manual underwriting US Bank Bulletin Clarified tax return requirement Clarified ehousingplus fee Added eligible borrower requirement Revised Conventional loan minimum FICO 8 10, 21 15, Removed separate Freddie Mac HFA Advantage guide section and added overlays 8 & Revised Who To Contact Directory Revised DTI Requirement Added Freddie Mac Credit Smart homebuyer eduction link Added US Bank overlays to Property requirements Added US Bank overlay regarding tax transcripts Revised US bank Tax Service Fee Revised US Bank Web Site link Revised DTI requirement for Freddie Mac HFA Advantage loan Removed reference to US Bank for tax returns Increased income and purchase price limits Added Affordable Income Subsidy Grant Information Revised ehp Fee for Affordable Income Subsidy Grant Loan ,9,13,14, Revised Rates/Offerings chart 8 REVISIONS CONTINUED ON NEXT PAGE

4 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 4 REVISIONS TABLE CONTINUED Date Topic (effective date shown in date column and applies to reservation date unless otherwise noted. Page Revised AIS Grant amount Effective 04/23/18 Removed incorrect information from AIS Grant regarding no reimbursement of overage of EMD Revised Rate/Offerings Chart, Effective02/01/18 Revised US Bank Tax Service Fee, Effective 04/30/18 8, 14, 15, 17 8, 14, Revised AIS Income Limits effective 07/29/18 11

5 ! OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 5 OKLAHOMA COUNTY HOME FINANCE AUTHORITY PROGRAM TEAM OKLAHOMA COUNTY HOME FINANCE AUTHORITY ( OCHFA or the Authority ) Creates and sponsors a first mortgage program and a down payment assistance program, sets the mortgage loan rate, term and points, and markets the program Participating Lenders Take applications, reserve in their own systems, process, underwrite, approve, fund, close and sell qualified home mortgage 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 or Servicer Provides information on acceptable loan products and delivery and funding, 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, website, 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.

6 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 6 Question General Program Compliance Questions Assistance with ehp Lender Portal Assistance with User Credentials for ehp Lender Portal Update an Underwriter Certified Loan Direct Questions to: ehousingplus (ehp) ehousingplus (ehp) ehousingplus (ehp) WHO TO CONTACT (Rev 05/19/17) Contact Information support@ehousingplus.com (954) support@ehousingplus.com Ashlynn Mosher (954) ext 261 ashlynne.mosher@ehousingplus.com Anyone at ehp Compliance Office services@ehousingplus.com Program Training ehousingplus (ehp) Click on this link to attend Program training. Program Training Issues ehousingplus (ehp) support@ehousingplus.com System Software Training for ehp Lender Portal ehousingplus (ehp) Click on this link for the once weekly Live Webinar: System Software Issues ehousingplus (ehp) support@ehousingplus.com Program Rates ehousingplus (ehp) Click on this link: to view the OCHFA Turnkey Program ratethen 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 hfa.programs@usbank.com or Option 2 (for general questions) Please note: US Bank answers underwriting questions from the underwriter of a lender for whom US Bank provides underwriting services ONLY. services@ehousingplus.com Questions regarding exceptions US Bank for questions regarding the first mortgage closed loan file ehousingplus (ehp) for questions regarding exceptions on the program compliance file US Bank for questions regarding exceptions on the first mortgage closed loan file hfa.programs@usbank.com hfa.exceptions@usbank.com Debbie Kerr ehp.exceptions@ehousingplus.com X216 hfa.communications@usbank.com hfa.exceptions@usbank.com

7 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 7 THE PROGRAM PRODUCTS PLEASE NOTE THAT RATES AND ASSISTANCE GRANT AMOUNTS 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. Funds are available in a first-come, first-served revolving pool that provides continuous funding. All loans in this program are Assisted Rate Loans. The following mortgage products are offered in this program: FHA, VA, USDA: RD and the Freddie Mac HFA Advantage Conventional Loan. US Bank provides the types of government loans permitted. (Rev 11/02/15) Program Rates and Reservation System Availability Rates and Assistance will be posted on the ehousingplus web page by 9:00am CT Monday-Friday excluding Holidays. New loan reservations are accepted Monday-Friday 9:00am 7:00pm CT excluding Holidays. All other functions: underwriter certification, print forms, view pipeline are available 24/7. Assistance The Assistance is calculated on the Note amount. The Assistance may be used for down payment or closing costs and prepaids. Assistance may not be used for payoff of other debt or difference between appraised value and sales price. While there is no cash back in this program, the borrower may be reimbursed for any overpayment of escrow. Because the Assistance is a fixed percentage of the original principal amount of the mortgage loan, 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 the first mortgages reserved, the Assistance is automatically reserved. There is no additional reservation necessary. When you close the loan there are not second mortgages, second notes, deed restrictions or liens. There is no repayment. (Rev 10/26/15) The Assistance will be funded by the Authority via electronic wire transfer either directly or from its agent. Lenders are required to submit a Wire Transfer Request Form minimum of 2 business days prior to any loan closing date. The Wire Transfer Request Form may be found in the secure section of the ehousingplus Lender Portal. The Underwriter Certification must be completed prior to the submission of the Requisition Form. Follow instructions on the Requisition Form for delivery to the appropriate parties.

8 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 8 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. Effective with new loan reservations April 23, 2018 and after, Borrowers at or below 80% of the Area Median Income Limits as published by Freddie Mac are eligible for an additional grant in the amount of $1,500 and Borrowers at or below 50% AMI will receive an additional grant of $2,500. The AIS Grant is reserved in the ehousingplus Lender Portal using the ADDITIONAL LOAN tab after the first mortgage is reserved. The AIS will be provided at closing by the Lender. The AIS funds must be used for down payment and closing cost assistance only. Upon purchase of the loan, US Bank will reimburse the Lender for all qualified subsidies. The AIS must be reflected on Page 3, Section L of the CD as Affordable Income Subsidy. This AIS Grant must be reflected in DU or LP findings, along with the Grant provided by the Program. Any questions about the preparation of the CD should be directed to US Bank HFA Division. The AIS Grant will be available for new reservations beginning 12/14/17. (Rev 04/23/18) Mortgage Loan Options On all assisted rate loan options, 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 the applicable percentage of the note amount (based on the grant assistance selected) to apply toward down payment and/or closing costs. Current rates are available online within the system. Income limits apply. (Added 11/02/15) See next page for Mortgage Loan Options!

9 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 9 RATES/OFFERINGS CHART Please note that the Rate/Offerings tab at oklahoma/oklahoma-county/ includes the information below AND the current first mortgage rate. Beginning with new reservations dated , the following products will be available in this program: Mortgage Loan Options FICO Score DPA/Grant Assistance GOVERNMENT USDA-RD or VA 640 w/3.5% FHA w/3.5% FHA 660 w/manual underwrite 660 w/2.5% FHA w/2.5% FHA 640 w/manual underwrite w/1.5% CONVENTIONAL - FREDDIE MAC HFA ADVANTAGE 640 5% HFA ADVANTAGE % All Loans are Assisted Rate Loans 30 Year, Fixed Rate, Amortized Non repayable grant based on the final loan amount; Funds requested prior to closing Manufactured homes not allowed (Effective with 12/1/15 reservations)

10 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 10 PROGRAM REQUIREMENTS Eligible Borrowers There is no first-time homebuyer requirement in this program. Follow Agency (FHA, VA, USDA-RD, Freddie Mac) and U.S. Bank guidelines for non-citizens. Buyers must occupy the property within 60 days of closing. Freddie Mac HFA Advantage Conventional Loan, a borrower CANNOT own other property at the time of closing. (Added 01/23/17) Applicants must be considered irrespective of age, race, color, religion, national origin. Homebuyer Education not required (except for Freddie Mac borrowers). (Added 01/23/17) Minimum Credit Score and DTI Ratio The Program requires a minimum FICO credit score for various products, 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 with NO FICO score, participating lenders must comply with U.S. Bank Lender Bulletin DTI Requirement For Government loans (FHA, VA, RD) the maximum DTI ratio is 45%. For the Freddie Mac HFA Advantage conventional loan the maximum DTI ratio is 50%. Contact US Bank HFA Division ( ) for DTI overlays on conventional loans. (Rev 12/01/17) Homebuyer Education - FHA, VA RD Borrowers The Authority recommends but does not require homebuyer education for borrowers originating a government loan product (FHA, VA, RD). (Rev 01/23/17) Homebuyer Education - Freddie Mac HFA Advantage Borrowers Buyers utilizing the Freddie Mac HFA Advantage Conventional Loan will be required to attend homebuyer education. The course, Freddie Mac CreditSmart Steps to Homeownership Tutorial is required if a borrower is a first-time homebuyer. The tutorial must be completed by at least one borrower per Guide Section Click on this link to attend the training: The course may also be conducted by a HUDapproved counseling agency including online HUD-approved non-profits using ehomeamerica (Neighborworks based curriculum) (Rev 05/20/17) HOUSEHOLD INCOME LIMITS FOR TURNKEY FIRST MORTGAGE PROGRAM ALL LOAN PRODUCTS Use Form 1003 Credit Qualifying Income Maximum Income Limit = $94,220 (Rev 12/01/17) Eligible Area Oklahoma County including Oklahoma City.

11 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 11 HOUSEHOLD INCOME LIMITS AFFORDABLE INCOME SUBSIDY GRANT FREDDIE MAC LOANS ONLY Loan reservations 07/29/18 and after 80% of AMI $55,520 50% of AMI $34,700 Loan reservations 12/14/17 thru 07/28/18 80% of AMI $53,840 50% of AMI $33,650 PURCHASE PRICE LIMITS FOR TURNKEY FIRST MORTGAGE PROGRAM AND AFFORDABLE INCOME SUBSIDY GRANT New or Existing Residence = $275,665 Rev and Effective for loans reserved on or after 12/01/17 Must include everything paid by the buyer or on the buyer s behalf. Property Requirements New or existing residential, one-four units*, detached or attached, condos, townhomes. *Freddie Mac Loans - One Unit property ONLY. Freddie Mac Loans - Condos are permitted. For condos with LTVs from 95.01% to 97% the project must be approved by US Bank, in addition to meeting Fannie Mae or Freddie Mac guidelines, as applicable. Review US Bank bulletin Condominium Guideline Expansion for complete details. (Added 05/19/17) Homes are considered new if never previously occupied. Manufactured homes, mobile, recreational, seasonal or other types of vacation or non-permanent homes are not permitted. (Rev 12/01/15) Land may not exceed the size required to maintain basic livability. Properties purchased in the program must be residential units.

12 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 12 ABOUT THE FINANCING It s expected that lenders have reviewed some preliminary documentation and believe that applicants will also qualify for credit. Excessive cancellations will be reviewed to assure that allocation is not being utilized inappropriately. FHA, VA, RD and Freddie Mac HFA Advantage conventional loans are permitted. Find the specific government and conventional loan products permitted on the US Bank website. (Rev 01/23/17) Check with your underwriter for updates to information for Freddie Mac HFA Advantage. Such information is provided by a third party (i.e.freddie Mac, U.S. Bank, etc) who do not provide updated information to ehousingplus. (Added 01/23/17) Freddie Mac HFA Advantage Fact Sheet: hfa_factsheet.pdf (Added 01/23/17) Appraisal The appraisal must indicate that the home has at least a 30 year remaining useful life. Asset test Asset tests are not required in this program. Assumptions Not permitted. Buy downs Not permitted. Cash Back Cash Back to the borrower is not permitted. However, borrowers are permitted a reimbursement of pre-paids 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 Not permitted. Co-signors Permitted to the extent permitted by FHA. Treat co-signor/income as directed by FHA. A co-signor cannot reside in the property and cannot have any ownership interest in the property (they cannot be on the Mortgage/Deed/WarrantyDeed). Co-signors (Freddie Mac) - Not allowable. (Added 01/23/17) Manual Underwriting - With new reservations as of February 1, 2016, FHA loans may be manually underwritten. ALL manually underwritten loans must adhere to the following U.S. Bank credit guidelines. Lenders are required to follow a combination of U.S. Bank, Agency, and HFA program guidelines. When guidelines differ, use the more restrictive. See U.S. Bank bulletin and (Rev 08/22/16) Manufactured Housing See U.S. Bank Bulletin for current guidance. As of December 1, 2015 effective for new loan reservations, manufactured housing will no longer be eligible for purchase. U.S. Bank considers manufactured housing to be 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. Revised Minimum Loan Amount There is no minimum loan amount in this program.

13 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 13 Prepayments The first mortgage may be prepaid at any time without penalty. Recapture Tax There is NO RECAPTURE TAX IN THIS PROGRAM. Refinances Refinances are not permitted in this program. However, temporary, bridge or construction loans with a term or 2 years or less may be taken out with a program loan. Remaining reserves are not established by the program. Follow Agency Guidelines. Tax Returns or Tax Transcripts - Not required for program compliance purposes. (Rev 12/01/17) LENDER TRAINING REQUIREMENTS MANDATORY PROGRAM TRAINING FOR LENDERS Lender training is mandatory for anyone working with this program. ehousingplus provides program training online 24/7. To attend, click here. ehousingplus LENDER PORTAL SYSTEM TRAINING Conducted once a week via live WebEx with the ehousingplus Compliance Office. Anyone who will need access to the ehousingplus Lender Portal for the MCC program will need to attend. Training lasts 45 to 60 minutes. Click here to register to attend. LENDER PORTAL USER CREDENTIALS After completing Program training an attendee will receive a follow-up with instructions to apply for user credentials. If you need assistance please contact trainer@ehousing.cc

14 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 14 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 To reserve funds in program s online system click on this link. Log in and reserve the first mortgage that automatically provides Assistance. 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. 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 first 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 10) and enter that amount in the ADDITIONAL LOAN tab. The subsidy must be for the exact amount ($1,500 or $2,500) based upon borrower AMI - no more and no less. Follow the details step-by-step instructions on the next page. (Rev 04/23/18)

15 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page Click on ADD ADDITIONAL After you click on ADD ADDITIONAL you will see the below. 2. Select one of the options After you select one of the options, you will see the below 3. Click on New Additional Loan 4. Enter the calculated loan amount

16 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 16 UNDERWRITE AND CERTIFY Lenders underwrite & are responsible for credit decisions of the loans in the program. Servicer does not re-underwrite loans. Following credit approval AND WITHIN 15 DAYS OF LOAN RESERVATION, Underwriter completes the online Underwriter Certification within the ehousingplus Lender Portal. REQUEST WIRE TRANSFER OF ASSISTANCE FOR TURNKEY GRANT FUNDS ONLY Lenders are required to submit a Wire Transfer Request Form a minimum of 2 business days prior to any loan closing date. The Wire Transfer Request Form may be found in the secure section of the ehousingplus.com website. Underwriter Certification must be completed prior to the submission of the Wire Transfer Request Form. After the Underwriter Certification has been completed, and Two (2) business days prior to funding, with a scheduled closing date, the Lender s authorized representative must fill out and execute the DPA Grant Requisition own Payment Assistance Funding Request Form available in the system, under LOAN FORMS. The DPA Grant Requisition Form must be printed, signed, and scanned in.pdf format. Two (2) business days prior to funding, the Lender sends a complete, executed.pdf or scanned version of the DPA Grant Requisition Form, to the following addresses: dsuddath@bancfirst.com bancfirstct@bancfirst.com emcgee@ochfa.org The DPA Grant Funds Requisition Form is reviewed. The Authority then will Reply to All on the Requisition Confirmed after a representative of the Authority has confirmed the Mortgage Loan number and amount on the website of the Program Compliance Administrator, ehousingplus. BancFirst, custodian for OCHFA, wires funds to the Closing Agent. Funds are wired directly to the Closing Agent/Title Company and NOT the Lender or Borrower. Please make sure that instructions are provided to internal Processor/Closer and to the Title Company/Closing Agent. If the Loan does not close on the Loan Closing Date indicated on the Request Form, Lender agrees to cause the funds to be returned to BancFirst for the credit of the Authority s account not later than the close of business on the business day following the Loan Closing Date. Wiring instructions for the return of funds are as follows: BancFirst; ABA ; Account Number: ; Attention: Trust Department; REF: Oklahoma County HFA 13 Turnkey Escrow Account IT S IMPORTANT that lenders (1) have the borrower(s) sign the letter that meets requirements of 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 (USB002). NOTE: The Lender will be required to repay the DPA Grant to the Authority if the mortgage loan is not ultimately pooled into a GNMA Certificate sold to the Authority under the program.

17 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 17 LENDER WILL FUND AFFORDABLE INCOME SUBSIDY (AIS) GRANT AT CLOSING The AIS will be provided at closing by the Lender. The AIS funds must be used for down payment and closing cost assistance only. Upon purchase of the loan, US Bank will reimburse the Lender for all qualified subsidies. The AIS must be reflected on Page 3, Section L of the CD as Affordable Income Subsidy. This AIS Grant must be reflected in DU or LP findings, along with the Grant provided by the Program. Any questions about the preparation of the CD should be directed to US Bank HFA Division. (Rev 04/23/18) CLOSE Borrower executes the Notice of Down Payment/Closing Cost Assistance Grant Obligation/Gift Letter. There are two (2) files shipped post closing: SHIP / SUBMIT File #1 is the Compliance File and it is sent to ehousingplus. The Compliance File Checklist is found within the ehousingplus Lender Portal in the Loan Forms section. File #2 is the Mortgage File including Credit Package and it is sent to US Bank. The US Bank Delivery and Funding Checklist is found within the US Bank web site. To locate the US Bank Checklist click on this link: Click on US Bank Lending Manuals. Pop-up box will appear, click on Continue. Web page will be redirected to US Bank All Regs site. Click on Housing Finance Authority folder. EXCEPTIONS Lenders are notified by ehousingplus and U.S. Bank of exceptions. Exceptions for both ehousingplus and U.S. Bank are available in the ehousingplus web-based system.

18 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 18 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. If the loan is not underwriter certified within 15 days of loan reservation, the loan is subject to cancellation. ehousingplus via notifies lenders that the loan may be canceled if the underwriter certification is not completed. Should the loan reservation be canceled at any point during the reservation, the issuer may allow the loan to be reinstated at the higher of the mortgage rate originally reserved or the then current program mortgage rate. Please wait until 45 days before closing to reserve funds for new construction, short sales and foreclosures. Loans not purchased within the timeframe below cannot be purchased. The revolving pool of funds assures continuous funding. Fund availability makes it unnecessary to rush to reserve funds. 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. Extension Request 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. To the extent that Assistance is advanced on loans that do not close, are not purchased by the Servicer under the program or are to be repurchased by the lender prior to being pooled into a mortgage-backed security, the lender will be required to reimburse the City with respect to such Assistance so advanced. An extension request is available on the ehousingplus web page for the OCHFA Program, click on this link. Then click on the SUMMARY tab, scroll to the area titled, Extensions. Remember that the form must be submitted BEFORE the 70th day after loan reservation.

19 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 19 PROGRAM FEES First Mortgage Fees There are zero origination and zero discount fees in this program. charged. No additional points may be ehousingplus Fees The program includes a first mortgage Compliance/Admin Fee: (Rev 12/14/17) LOAN PRODUCT ehousingplus Compliance/Admin Fee Turnkey First Mortgage with Grant Assistance $300 Turnkey First Mortgage with Grant Assistance and Affordable Income Subsidy (AIS) Grant $375 The Compliance/Admin Fee is collected at closing, is payable to ehousingplus and submitted with the Compliance File. ONLY Cashier s or Corporate checks are acceptable and the fee may not be financed. The Compliance/Admin Fee is the fee charged by the Program Administrator/Compliance Agent to process the applicant/borrower from Origination to Compliance Approval, and to assess that the lenders originating such loans are following Program guidelines for the benefit of the eligible borrower(s). The Program Administrator/Compliance Agent tracks the loan via its web-based system, and assists the lender in processing the loan ensuring eligibility to the program available offerings, which can include various rate options, and down payment assistance. (Added 10/14/15) 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.). (Rev 08/22/16) US Bank Fees LOAN RESERVATIONS APRIL 30, 2018 AND AFTER - $80 Tax Service Fee and $400 Funding Fee. These fees will be netted out at time of purchase by US Bank. See US Bank Bulletin L TAX SERVICE FEE CHANGE for further details. (Rev 04/23/18) LOAN RESERVATIONS PRIOR TO APRIL 30, $58.00 Tax Service Fee and $400 Funding Fee. These fees will be netted out at time of purchase by US Bank. See US Bank Bulletin L TAX SERVICE FEE REDUCTION for further details. (Rev 05/19/17)

20 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 20 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 Compensation On each loan the lender receives 2.00% SRP for FHA, Freddie Mac and USDA: RD loans and 1.50% SRP for VA loans paid by US Bank on loan purchase.

21 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 21 PROGRAM FORMS PRE-CLOSING Extension Request Form An extension request is available here. Click on the SUMMARY tab and scroll down to the area titled - PROGRAM DOCUMENTS. The extension request will be completed and submitted online. DPA Grant Requisition Form Underwriter Certification must be completed prior to submission of the Requisition Form. The Requisition Form is available in the ehousingplus Lender Portal behind security, click on this link.. CLOSING DOCUMENT Notice of Down Payment and Closing Cost Assistance Rev Auto-fills from Forms on website. Prints ready for signature. Original to Lender, copies to Borrower, US Bank (follow most recent Bulletin) and one copy for the FHA case binder. DOCUMENTS REQUIRED FOR THE COMPLIANCE FILE (Rev 10/15/15) (Effective for loan applications dated 10/03/15 and after) The program forms are generated directly from the ehousingplus Lender Portal at the loan level. The program forms MUST be printed from the Lender Portal. It is not acceptable to re-create program forms. (Rev 10/15/15) ehousingplus has developed a checklist to be utilized after closing to assemble the Compliance File that is delivered to ehousingplus. The checklist is located in the ehp Lender Portal in the Loan Forms area. PLEASE SUBMIT ONLY COMPLETE FILES IN AN ACCO-BOUND FILE FOLDER IN THE EXACT ORDER SHOWN BELOW. INCOMPLETE AND NON ACCO-BOUND FILES WILL BE RETURNED AT LENDER EXPENSE. The Compliance Checklist Compliance/Admin Fee COPIES OF THE FOLLOWING: Real Estate Purchase Contract FINAL SIGNED 1003 FINAL SIGNED CLOSING DISCLOSURE (TRID form) Warranty Deed THE COMPLETE ACCO-BOUND COMPLIANCE FILE FOLDER IS SUBMITTED TO: ehousingplus 3050 Universal Blvd., Suite 190 Weston, FL PLEASE NOTE: MORTGAGE FILE, INCLUDING CREDIT PACKAGE ARE SENT TO U S BANK.

22 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 22 US Bank HFA Division Help Desk Use the U.S. Bank All Regs website for: Underwriting, delivery and funding information Training U.S. Bank Manuals U.S. Bank Bulletins Delivery Checklists US BANK WEB SITE INFORMATION 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 Oklahoma Click Oklahoma County Home Finance Authority