Michigan State Housing Development Authority 6/29/2018
Topics Covered in this Training 1. MI First Home & MI Next Home Programs 2. Down Payment Assistance 3. MI First Home Program Highlights 4. MI Next Home Program Highlights 5. First Home Borrower Requirements 6. MI Next Home Borrower Requirements 7. MSHDA Housing Allowable Fee Chart 8. MI First Home First Mortgage Interest Rates MI Next Home First Mortgage Interest Rates 9. MI Next Home & MI Next Home Property Types 10. Key Program Differences 11. Appraisal Requirements 12. First Lien AUS Requirements 13. MI First Home & MI Next Home Requirements 14. Completing the 1003 in FT360 15. Exporting Fannie Mae File for MSHDA Lender Website 16. MSHDA (Lender Website) 17. MSHDA Disclosures 18. Closing Document Packages 19. MSHDA Process Flow 20. Loan Cancellation 21. RealtorRor Lender Advantages
MI First Home & MI Next Home Programs: FHA 30 year first mortgage 1. Fixed interest 2. Fully amortizing Available for Retail Channel Only Loans are referred to AFS division and Fulfilled by Plantation Florida Release Date is March 31 th 2017
Down Payment Assistance: Up to $7,500 1. No Interest 2. No Monthly Payments Funds may be applied towards down payment and/or closing costs 1% minimum borrower contribution $7,500 liquid cash asset restriction all accounts documented in order to obtain DPA Available for Retail Channel Only Loans are referred to AFS division and fulfilled by Plantation Florida Release Date is March 31 st 2017
MI First Home Program Highlights Available in the state of Michigan (MI) Available in targeted areas for all borrowers and all areas for first time borrowers Purchase Price limits - $224,500 30 year fixed, Credit score 640 Purchase, Primary Residence Single Family Residences, PUD and Warrantable Condos
MI Next Home Program Highlights Available in the state of Michigan (MI) Repeat homebuyers only Purchase Price limits - $224,500 30 year fixed, Credit score 660 Purchase, Primary Residence Single Family Residences, PUD and Warrantable Condos
First Home Borrower Requirements First time homebuyers All adults intending to occupy the residence must co-apply and credit qualify Adult children must apply No homeownership restriction for borrowers purchasing in a Targeted Area Purchase, Primary Residence All borrowers must occupy the property as their primary residence within 60 days of closing
First Home Borrower Requirements Non-occupying co-borrowers are not allowed Non-occupying co-signers are not allowed The income limits may be found on MSHDA website: http://www.michigan.gov/documents/mshda_sf_income _and_sales_price_limits_100946_7.pdf Homebuyer education required from all adults
MI Next Home Borrower Requirements Previous homebuyers All adults in the household DO NOT need to apply. Only qualifying borrowers No homeownership restriction All borrowers must occupy the property as their primary residence within 60 days of closing Borrower may own another property at close of escrow.
MI Next Home Borrower Requirements Non-occupying co-borrowers are not allowed Non-occupying co-signers are not allowed The income limits may be found on MSHDA website: http://www.michigan.gov/documents/mshda/mshda_income S ales_price_limits_expanded_04-16_523586_7.pdf Homebuyer education required
MSHDA Housing Allowable Fee Chart: MSHDA Housing Product Name MI First Home MI Next Home Program Fees Allowable Fees 1.000% Origination Fee Standard PRMG Underwriting fee No Processing Fee Non-Allowable Borrower fees: Application fee, lock in fee, lender processing fee, real estate commission, servicing fee, and tax service fee No discount points, rate lock fees or junk fees allowed to be charged Allowable Standard Fees Normally Charged to the borrower: Appraisal Fee, Credit Report Fee, Flood Certification, Freight, Document Preparation are allowed as long as it is an actual cost
MI First Home First Mortgage Interest Rates: MSHDA posts the First Mortgage interest rates daily on their website PRMG must first obtain a MSHDA reservation number prior to quoting and committing an interest rate to the borrower Reserved interest rates are valid for 90 calendar days Purchase Agreement and Sales Contract required prior to reserving funds on MSHDA Lender Online Website. After you obtain a MSHDA reservation, you must submit a complete credit package within the 90-day expiration date to MSHDA for compliance review
MI Next Home First Mortgage Interest Rates: MSHDA posts the First Mortgage interest rates daily on their website. PRMG must first obtain a MSHDA reservation number prior to quoting and committing an interest rate to the borrower. Purchase Agreement and Sales Contract required prior to reserving funds on MSHDA Lender Online Website. Rate lock/reservation is good for 70 days. Closed, delivered and purchased by U.S. Bank within 70 days of reservation. Extension fee is $375 for a maximum of 30 days.
MI Next Home & MI Next Home Property Types: Single Family Residence 1 Unit HUD Approved Condos PUDs Attached and Detached Must be residential units
Key Program Differences: Item First Home Program Next Home Program Master Servicer MSHDA U.S. Bank Sub-servicer LoanCare, LLC N/A Min Credit Score 640 660 Eligible Borrower First time Previous homebuyers only Geographic State of Michigan: Non-targeted areas & Targeted areas Recapture Tax Required N/A State of Michigan Document Delivery LoanCare, LLC U.S. Bank Rate Lock 90 Days 90 Days Extension N/A $375 for a maximum of 30 days
Appraisal Requirements: One full appraisal is required
First Lien AUS Requirements: Desktop Underwriter (DU) only allowed Approve/Eligible required The Agency AUS for the first lien must be included in the file Manual Underwriting is not allowed Loan Product Advisor (LPA) not allowed
MI First Home & MI Next Home Requirements: No Mortgage Credit Certificates allowed No additional down payment
Completing the 1003 in FT360
Loan Program Selection & Closing Cost Templates: Forms -> Borrower Summary locate the transaction details section 1 1. In the Transaction Details section of the Borrower Summary (PRMG) form, click on the magnifying glass icon to the right of the Loan Program field 2. Select the applicable Loan Program template, based on the loan you are creating 2 3. Click the Select button 3
Loan Program Selection & Closing Cost Templates: 1. After the applicable Loan Program has been selected, click on the magnifying glass icon to the right of the Closing Cost template 1 2. Select the applicable Closing Cost template, based on the loan you are creating 3. Click the Select Button 2 3
Loan Program Selection & Closing Cost Templates: 1. The completed Transaction Details section for the MSHDA 1 st TD will look like this: 1 2. The completed Transaction Details section for the MSHDA 2 nd TD will look like this 2
Entering Subordinate Financing on the 1 st TD: 1. In Forms Click Borrower Summary (PRMG) 2. Click the Sub. Financing Button 3. Enter your 2 nd Mortgage amount in the second mortgage field 4. Click OK 1 2 3 4
Lien Position and Down Payment: Forms -> Borrower Summary 1. Verify the lien position is correct for both the 1st and 2nd liens 2. Down Payment is the down payment in addition to the subordinate financing being utilized to complete the purchase 1 3. Verify the Subordinate Financing appears in VII details of Transaction on the 1st TD Loan 2 3
1003 Page 3 (VIII. Declarations): When completing the declarations section of the 1003 locate question H 1. Question H: Mark Y (Yes) for is any part of the down payment borrowed for borrower and co-borrower 1
Duplicating the 1st TD Loan to Create the 2nd TD Loan: Creating a Junior Lien in FT360 feature can be found in PRMG Resource Center by clicking on the following link; http://www.eprmg.net/resourcecenter/traininginst ructionalmaterial/creatingajuniorlieninft360.pdf
Verify Lien Position and Down Payment: On the newly duplicated loan verify the Lien Position and Down payment information is correct 1 2 3 Forms -> Borrower Summary 1. Verify Loan Type is Correct 2. Verify the lien position is correct the second loan 3. Amortization type mark the Other Checkbox and type deferred payment 4. There is no interest rate charged in connection with MSHDA DPA loan enter zeros in both the Note Rate and Qual Rate fields 4
Exporting Fannie Mae File for MSHDA Lender Website
Exporting a Fannie Mae formatted file: 1. Click on Services and Select Lenders from the drop down menu 2. Select Export file to other partners 3. Click Continue 1 2 3
Exporting a Fannie Mae formatted file: 1. Set the Request Type drop down to: Export Fannie Mae formatted file 2. Browse the desired Export to Path 3. If you would like to create a shortcut for next time for export purpose: Send to Correspondent lender 4. Enter a description and mark the checkbox Save purpose and description 5. Click Continue
Exporting a Fannie Mae formatted file: If your loan application is Incomplete you will be prompted to complete the loan application If you wish to complete the loan application prior to exporting the Fannie Mae File click cancel 1. Click Continue to complete the Fannie Mae export process 2. The Export File popup window will appear notifying you the file export process has been completed. 3. Click OK 1 2 3
MSHDA (Lender Website) Please Note: Prior to originating any MSHDA loans it is important to review and complete the online training material available through MSHDA Lender Online Portal. Information on how to access these trainings is available following this page.
MSHDA Lender Website: Please go to the following url: https://mshdalenderaccess.cgibps.com/bin/display.exe/showsection To receive access credentials please contact support@prmg.net in the subject line please state Michigan State Housing Development Authority 1. Please enter your Username 2. Please enter your Password 3. Click Login button 3 1 2
MSHDA Lender Website: Once you have successfully logged in to the MSHDA Lender website you will be able to access: 1. Lender Letters & Announcements 2. Marketing Materials & Resources 3. Information & Contacts 4. Training Presentations 5. Watch the MI First Home Underwriting Podcast 1 2 5 I 3 4 Note: Underwriting Turn-around times are located at the top of the screen underneath the daily interest rates I
MSHDA Training Video & PowerPoint Library: The MSHDA training video library can be located in the following locations: 1. https://mshdalenderaccess.cgibps.com/bin/display.exe/showsection 2. http://www.michigan.gov/mshda/0,46 41,7-141-59976---,00.html#trainings 1 1. If accessing from within Lender Online locate the Bulletin Board Link on the top of the page 2. Locate Training and Presentations 3. Click the desired training presentation 2 3 Please Note: Prior to originating any MSHDA loans it is important to review and complete the online training material available through MSHDA Lender online portal.
MSHDA New Reservation: Locate the New Reservation tab in the top navigation tab 1. Click the New Reservation Tab 2. Locate the Single Family Series 3. Click the [+] to expand 4. Click to Select the Desired Loan Program 1 3 2
MSHDA New Reservation: After you have selected the First TD you will be prompted with two options to continue: Continue Without Additional Mortgage(s) Continue With Additional Mortgage(s) 1. Select the correct option 2. Click the Import 1003 button 3. Click the Choose File Button 4. Click Upload 1 1 2 Please Note: Once the Fannie Mae file has been imported, please review your data on the entry insuring all fields have been properly completed. Reservations must be made on Lender Online. Reservations stay with the buyer no necessarily the property. 3 4
MSHDA Program Documents: 1. Locate the program documents link at the top of the page 2. Select the desired document program 3. Download or access the desired document/s you will need to complete and fill in the fields 2 2 1 3
Sample Commitment Letter:
MSHDA Disclosures
Disclosures 1 st TD: Please refer to the Disclosing a Loan Training material for general disclosure questions 1. Click on the efolder icon 2. Click the edisclosures Button 2 1 Special Note: When clicking the edisclosures button if there are any missing required fields needing to be completed or corrected FT360 system will prompt you
Disclosures 1 st TD: 1. Select the Borrower Pair you are Disclosing to 2. Select the Correct Plan Code 3. Click Order edisclosures 1 Note: Complete the Standard edisclosure Process 2 3
Closing Document Packages
Closing Document Packages: When the loans are clear to close and ready for generation of the Closing Doc packages, the MSHDA 1 st TD will be drawn in accordance to PRMG s standard Closing Doc process, utilizing the Order Docs feature All standard Closing Doc forms must be completed in their entirety Concurrently with generating a Closing Doc package for the MSHDA 1 st TD, the Doc Drawer will be required to generate a Note and Deed/Mortgage for the MSHDA DPA 2 nd B B
Closing Document Packages: Due to the fact that only a Note and Deed/Mortgage are required for the DPA 2 nd TDs, the standard Order Docs feature will not be utilized 1 Instead, the Doc Drawer must follow these steps 1. Complete the Closing Doc forms in accordance with PRMG s standard Closing Doc process, ensuring at a minimum, that the fields below are completed On Page 3 of the 1003 form, ensure all Loan Originator and Company information fields are complete, including the names and NMLS numbers
Closing Document Packages: 1. Complete the Vesting Information section on the Borrower Information Vesting form 2. Complete all Closing Doc date fields on the RegZ CD form 1 2
Closing Document Packages: 1. Complete both the Lender and Docs Prepared By sections on the Closing Vendor Information form 2. Complete the Legal Description section on the Property Information form 1 2 1
Closing Document Packages: 1. When all of the fields on the Closing Doc forms have been completed, click on the printer icon in the upper right hand of the screen 1
Closing Document Packages: 1. Go to the Custom Forms tab 2. Select the MSHDA DPA Deed and MSHDA DPA Note forms 3. Select the Print to File option 4. Save the documents to your desktop and send to the Closing Agent with the MSHDA 1 st TD Closing Doc package 1 2 4 3
MSHDA Process Flow: Signed Purchase Agreement Make a Reservation to lock in the interest rate Package the loan Underwritten & approved by lender Send loan package to MSHDA MSHDA reviews & commitment is sent Lender closes and funds the loan Lender sends package to MSHDA for purchase Funds Sent to Lender
Loan Cancellation: Cancel Reservation Notify Secondary FT360 Cancel via fax to MSHDA 517-335-7081 Email Secondary cancellation request Upload cancellation request into FT360
Homebuyer Advantages: DPA up to $7500 Soft 2 nd lien Credit score as low as 620 State of Michigan
RealtorRor Lender Advantages: Ability to offer DPA options Flexibility of financing More qualified borrowers=more closed loans Dream of homeownership a reality Increase in referrals
Questions? Questions? PRMGUniversity@prmg.net