loan purchase operations training chfa conventional loan programs for closers, funders, and shippers

loan purchase operations training chfa conventional loan programs for closers, funders, and shippers

Disclaimer This Disclaimer applies to all content provided through CHFA webinars or other training events. The training content provided is intended to help explain CHFA s programs, but should not be relied upon as an alternative to the CHFA Seller s Guide. CHFA makes reasonable efforts to ensure that information provided in its trainings is up-to-date and accurate. If there are any discrepancies between information provided in a training event, including in slide presentations, and CHFA s Seller s Guide and/or enews, the later documents should be relied upon.

general chfa guidelines Only CHFA-approved Participating Lenders can originate All Loans must meet Fannie Mae or Freddie Mac and CHFA guidelines* Only borrower(s) may take title to the property No one else may be included on the purchase documents/in title to property No cosigners or non-occupying co-borrowers 30 year fixed rate mortgages only Owner occupied primary residence only Optional Down Payment Assistance available CHFA Preferred Plus * CHFA Seller s Guide available on AllRegs via CHFA s website 3

general chfa guidelines continued Cash Back follow your Insurer/Guarantor guidelines, borrowers still have to have $1,000 minimum contribution Gift funds (follow agency guidelines); and/or Earnest money deposit; and/or Application, appraisal, or credit report fee paid to the participating lender; and/or Home inspection fee, including fees paid for additional inspection services, such as sewer scopes, structural engineers report, etc.; and/or Hazard insurance premium paid outside of closing; and/or Thirty (30) day Loan Delivery Extension of.35% of the total loan amount and/or Any homebuyer education fee, if applicable; and/or HOA Fees paid out of pocket by borrower Items must show on Closing Disclosure as paid outside of closing (poc)

purchase guidelines No interest credits Borrower Premiums must show on the Closing Disclosure (CD) as a credit and must be for the exact dollar amount (including cents) Calculation must be the 1%, 2% or 3% of the total first mortgage loan amount 3% Borrower Premium is only for the CHFA to CHFA FHA Streamline program All MERS members must close on the MERS/MOM Deed of Trust Non MERS members must use the Standard Deed of Trust and the CHFA Form 230M Assignment Lender receives payments on first until loan is purchased Lender can take a maximum of 4 payments Outstanding compliance approval conditions must be in purchase file CHFA will run Fannie Mae Early Check or Freddie Mac LQA at time of Purchase, file may be suspended for errors Principal reductions received on Closing Disclosure require a pay history showing the unpaid principal balance after principal reduction Proof of MI activation, if applicable

purchase guidelines - continued Purchase review turn time is 6 business day from receipt of a complete file. Suspended or incomplete files will result in further delays Decision letters sent via email Submission of suspend conditions to CHFA deliver via: Secure e-mail through CHFA verified link If you have not been previously approved by our IT department to send conditions via e-mail, have your IT department contact CHFA s Information Security team to validate the e-mail communications are secure. Send request to TLS_Request@chfainfo.com Your own company secure e-mail Fax Upload through document delivery system Must email CHFA Analyst from suspend letter to avoid delays in review of conditions Suspend conditions will be reviewed in order received Lender must provide final documents to CHFA within 90 days of purchase 6

chfa conventional loans comparison CHFA Advantage 97% LTV 105% CLTV Minimum LTV 80.01% CHFA Preferred / Preferred Plus 97% LTV 105% CLTV No Minimum LTV No Mortgage Insurance Mortgage insurance borrower(s) have a choice of selecting single pay premium or monthly reduced coverage per DU or LP findings; underwritten by mortgage insurer, unless lender is approved delegated underwriter for private mortgage insurance company Arch MI, Essent, Genworth, National MI, MGIC, Radian or UGI CHFA grant not applicable CHFA grant applicable Community Seconds (DU) and Affordable Seconds (LP) are acceptable; follow Fannie Mae/Freddie Mac guidelines 3% can be a gift funds No first time buyer requirement Borrowers permitted to own one additional non CHFA property (Fannie Mae only) No buy downs Must meet income limits based on household size Manufactured housing (Fannie only; not permitted with Freddie) Double-wide or larger - 95% max LTV/CLTV DU Approve /Eligible ; LP Accept DU AUS HFA Preferred Risk Sharing LP AUS Home Possible Advantage for HFA s Minimum credit score 680 DU Approve /Eligible ; LP Accept DU AUS HFA Preferred LP AUS - Home Possible Advantage for HFA s Minimum credit score 620 Refinance programs available 7

chfa conventional purchase submission documentation requirements Follow the list of conditions/documents in the Document Delivery system or utilize document checklist for the program CHFA Advantage CHFA Form 726, Purchase Submission Review Checklist CHFA Preferred programs CHFA Form 728, Purchase Submission Review Checklist Do not include checklist with document upload All information used to underwrite file from AUS findings including asset statements Submission Summary Report (SSR) for the Appraisal also known as UCDP (Uniform Collateral Data Portal) Fannie Mae for DU loans Freddie Mac for LP loans

common issues that delay purchase approval and funding Purchase file does not check in for review Incorrect Note or Deed of Trust requiring Modification Compliance conditions are not met Incorrect, missing, or dated Note Endorsements If an error is made, void any incorrect endorsements prior to sending Note to CHFA for purchase Endorser printed name and job title missing Attorney In Fact is allowed to sign, must include Power of Attorney (POA) showing all authorized signors Simultaneous use of note endorsement and allonge Missing MI information, if applicable Missing payment history showing principal reduction applied, property taxes paid, MI disbursement and any late fees if applicable

loan information - HomeConnection Check the status column in the loan line to confirm the loan has moved to a Purchase status Click on the + icon to see loan details. Once clicked the + icon will become a - icon and can be clicked to collapse the loan detail. 10

chfa preferred mortgage insurance guidelines MI only available through these approved companies: Arch Essent Guaranty Genworth MGIC National Mortgage Insurance Corp Radian Guaranty Inc United Guaranty Delegated underwriting of MI allowed AUS determines the MI coverage amount Minimum required coverage for CHFA Preferred programs 95.01% - 97% LTV 18% MI coverage 90.01% - 95% LTV 16% MI coverage 85.01% - 90% LTV 12% MI coverage 80.01% - 85% LTV 6% MI coverage Single paid premium option available 11

chfa advantage and preferred refinance Any loan eligible for Refinance, not just CHFA loans! Same guidelines as CHFA Advantage or Preferred Purchase loan programs Differences Some CHFA second mortgages may be eligible for subordination Non CHFA second mortgages cannot be subordinated No new MCC available, but existing MCC may be reissued borrower completes after closing No homebuyer education required

chfa advantage and preferred refinance - continued Limited Cash-Out transaction Purchase Money subordinate liens, closing costs, pre-paids and escrows may be included LTV must not exceed 97% (95% on manufactured homes Fannie Mae only) Cash back to borrower must follow Fannie Mae or Freddie Mac guidelines No LTV lower than 80.01% on the Advantage refinance

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