Presentation on theme: "Florida Housing Finance Corporation Training Presentation"— Presentation transcript:
1 Florida Housing Finance Corporation Training Presentation Sally MazzolaUW/Closing/Delivery OverviewRev
2 Disclaimer This presentation represents only a general overview of the bond program.It is the lender’s responsibility to followall specific Federal, Agency and Bond programguidelines.
3 Agency Announcements/Bulletins Lenders are responsible for keeping updated on all Announcementsand Bulletins released by AgenciesU S Bank requireslenders adhere to all terms and conditions of theseannouncements unless otherwise instructedU S Bank Help Desk (MRBP Division) will advise lenders ofany updates by bulletin
6 Conventional- Eligible Products Fannie Mae MyCommunityMortgage (MCM)Fannie Mae Standard productsFreddie Mac Home Possible products
7 Loan Products Not Permitted Fannie Mae Flex productsSplit Loan Products (80/20, 80/15/5 etc.)203k RehabParticipating Lenders- Government products with FICO scores <620 will not be accepted(Reference bulletin )Correspondent lenders of USBHM should follow specific U.S. Bank guidelines for FICO score limitsManufactured housing (Conv., VA & RD)Note: For borrowers with no credit scores, manual underwrite is permitted as a non-traditional.
8 Conventional Product Comparison MyCommunityMortgage / Home Possible StandardEligible Properties: Single Family Single FamilyCondo’s permitted No condos, manufactured or coopsNo Manufactured or CoopsEligible Loans: DU approved DU-No EA’s / LP accept w.including EA1 or manual 45% DTI permitted, restrictedUW to 95% LTVHomePossible- LP accept /Limited to 45% DTI/ 95% LTVLLPA’s & Adverse MarketFees: LLPA’s pd. By FHFC LLPA & Adverse pd. by buyer orMCM only sellerAdverse.25% pd. bybuyer or seller
9 Conventional Product Comparison MyCommunity Mortgage / Home Possible StandardMaximum LTV/CLTV MCM: 97% / 105% % / 105% w.w. community 2nd community 2ndNo minimum LTVCondos limitedto 95% LTVMaximum LTV/TLTV HP: % Not permitted
10 Conventional Product Comparison MyCommunity Mortgage / Home Possible StandardManual UW Fannie only: LTV/CLTV: 95% FICO >660 Per Selling GuideLimited to 43% for total DTI DU (limited to 45% DTI45% with strong compensating factors restricts to 95% LTVMI companies may restrict to 90% LTVAUS: MCM – DU / Limited to 45% DTIHomePossible- LP accept / Limited to 45% DTINon-Traditional Credit UW Maximum: LTV 95% Not permitted (with no credit) MCM or HP only
11 Conventional Product Comparison MyCommunity Mortgage / Home Possible StandardPre-Closing HomebuyerEducation: Required form at closingRefer to Florida’s website forfor approved HBE optionsEarly DelinquencyCounseling: Required form at closing Required form at closingMin Borrower None 3% of borrowers own resourcesFunds: No contribution if < 80% LTVMI may require Gifts & grants and Community1% or $1, nds considered borrowers ownfunds
12 Conventional Product Comparison MyCommunity Mortgage/ Home Possible StandardSeller Contributions: > 90% LTV=3% > 90% LTV = 3%< 90.01% LTV=6% < 90.01% LTV = 6%Other: May not own another residential property N/AFreddie Mac All loans must be submitted through LP onlyHome Possible: NO manual underwriteRisk Class: LP AcceptMax DTI: 45%LTV or CLTV Min. FICOMax LTV/CLTV: 95% / 95% 80% and under Credit score >62095% / 95% Over 80% Credit score >700
13 Conventional Product Comparison MCM / HP StandardAdditional variance: Non-occupant co-signer signing only Note. May ignore DU non- occupant co-signer messaging.Limited to 90% LTV / Occupant DTI 55%Income Limits: Above Fannie’s 100% AMI permitted as long as checked to ensure limits are within Florida’s limits or use income AUS adjustor button to increase limit to Florida’s
14 MI Coverage Comparison MCM/HP Standard Fannie% LTV: % 12%% LTV: % 25%% LTV: % 35%% LTV: % N/A HPSingle Premium Financed:MCM: up to 97% Up to 95% standard coverageHomePossible: up to 95%Note: All applicable Special Feature Codes and Special Characteristic Codes must be listed on the 1008
15 Automated Underwriting Systems The following automated systems (AUS) are approved for use in the bond programConventional Loan Types:Fannie Mae loans (DU) OnlyFreddie Mac loans (LP) OnlyGovernment Loan Types:FHA & VA loans (DU or LP)If manual underwrite is necessary, full documentation is requiredOther customized automated underwriting systems are not acceptable at this time.
16 Appraisals/Condo Requirements USBHM will require a full appraisal report unless otherwise indicated on DU findingsCondominiums - Please follow all agency guidelines relative to loan product you are originating
17 Manufactured HousingManufactured Homes are permitted on FHA loans onlyReference USBHM’s website for manufactured housingguidelines at select U S Bank Lendingmanuals, click on Manufactured Housing iconRead & comply with all Agency & U S Bank guidelines prior to loan closing!Title must be surrendered at closing
18 Secondary Financing Must meet Agency (HUD, Fannie, & VA) requirements Non-HFA provided Down Payment Assistance ProgramsUSBHM does not approve your secondary financing programsFunding source for the DPA program must be:Must meet Agency (HUD, Fannie, & VA) requirementsStated on the 1003 and HUD-1Loan product, down payment source & amount reflected on the 1008 or LT92900 formException: DPA programs that contain Shared Equity component must be reviewed and approved by U.S. Bank Home Mortgage, Underwriting Department send program description to or call
20 Mortgage Disclosure Improvement Act All amortizing loans (includes Hami) delivered for purchase REQUIRED to have:Early TIL- Delivered or mailed to borrower(s) no later than 3 general business days after lender receives borrower(s) written application.Corrective TIL- Any corrective TIL’s that were required, deliveredor mailed to borrower(s)Final TIL – Signed and dated at consummationInitial loan application (1003) Signed & dated by interviewerReference USBHM bulletins: , , , and any subsequent bulletins.NOTE: Per bulletin – USBHM will require that all TILA disclosures be in the regulatory required format.
21 Reference USBHM MRBP bulletin 2009-75 MDIA/APR ToleranceCorrective TIL is required when APR on the Early TIL disclosure increases by more than the .125% toleranceNOTE: ** USBHM will not purchase a loan which closed before thethree or six precise business day waiting period has expired!Reference USBHM MRBP bulletin
22 Real Estate Settlement Procedures Act (RESPA) The following slides represent U.S. Bank Home Mortgage-MRBP Division’s RESPA related policies and procedures. For questions related to other RESPA regulations, please consult with your Legal Counsel or Compliance DepartmentThe information provided is a summary of USBHM-MRBP bulletin
23 Real Estate Settlement Procedures Act (RESPA) GFE must be provided no later than 3 business days after lender either receives application or obtains information sufficient to complete and application.Essential loan terms and costs must be disclosed and remain in effect for at least 10 business days Page 1 must show:Initial loan amount, term, and interest rateInitial monthly payment amountWhether there was an interest rate change increaseWhether loan allows for negative amortization, provides for a pre-payment penalty or a balloon paymentTotal origination charges and charges for other settlement servicesREQUIRED: Each individual loan requires a separate GFE & HUD-1 i.e. 1st and 2nd (Hami or Florida Assist mortgage loans must be completed by lender and provided to USBHM with fileGFE format cannot be altered in any wayUSBHM Reference Bulletins: , , , , and
24 Real Estate Settlement Procedures Act (RESPA) Changed Circumstances When changed circumstance has occurred, lender MUST issue a revised GFE within3 business days of receipt of the information that triggered a changed circumstanceLoan officer is bound to GFE tolerances unless new GFE provided; ONLY changed circumstances allow re-disclosure of certain terms on GFEIf lender provides a revised GFE based on a changed circumstance, documentation must be retained in loan file for at least 3 years after settlement.Note: Reference RESPA guidelines for definition of a changed circumstance.
25 Real Estate Settlement Procedures Act (RESPA) TolerancesThe first “fixed” tolerance is 0% and applies to all lender and mortgage broker origination fees. None of these items may exceed the amount disclosed on the GFE by any amount.The second is 10% and applies to total of:All lender required settlement services paid to providers selected by lenderAll lender required settlement services paid to providers selected by borrower from lender-provided listsPremiums for optional owners’ title insurance selected by borrower from lender provided listsGovernment recording feesThis means sum of actual charges cannot exceed sum of charges disclosed on the GFE for these items by 10%
26 Real Estate Settlement Procedures Act (RESPA) Tolerances continued…. The third tolerance is for fees that may change at settlement (no tolerances apply)Required services the borrower shops forTitle services and lenders title insurance not ID by lenderOwner’s title insurance not identified by lenderInitial deposit for escrow accountDaily interest chargesHomeowners insurance
27 Real Estate Settlement Procedures Act (RESPA) U.S. Bank’s File ReviewU.S. Bank Home Mortgage-MRBP staff performs a basic compliance review of the GFE document to ensure compliance with the following:Ensure GFE is on proper formEnsure HUD-1 is on proper formVerify “Loan Terms” on HUD-1 match “Summary of Your Loan” on the last issued GFE.Verify HUD-1 is within acceptable tolerances with last GFE issued including a review of charges that cannot increase by more than 10%Verify lender provided acceptable cure documentation, if applicablePost Settlement Cure: HUD allow lenders a 30-day cure period from date of borrower’s signed closing documents for violating GFE/HUD-1 fee tolerances. Lenders exceeding fee tolerances will be in violation of Section 5 of RESPA. USBHM must receive proof of refund to borrower and a corrected HUD-1, from settlement agent prior to loan purchase.NOTE: If there is a known issue, don’t wait until USBHM has reviewed as you may exceed the 30-day cure period for correction.
28 Reg Z -High Priced Mortgage Loans (HPML) Loans purchased by USBHM must comply with TILA requirements and changes to Reg Z regarding HPML’sYou may have a HPML loanWhen to Test:Time of Early TIL disclosureTime of locking the loanTime of any Corrective TIL disclosure andTime of Final TIL prior to closingReference USBHM MRBP bulletin for details on HPML requirements
30 Preparing to DeliverLoan Officers, Underwriters, Processors, Shippers & Closers should review the guides and documentation required prior to closingClosing instructions, document preparation and appropriate disclosures are to be done by you and closed in your nameProvide updated or complete Contact Information Sheet and submit to USBHM if you haven’t already done soAccess the USBHM website at or on the Ehousing website to obtain the information
31 US Bank Home Mortgage - MRBP Division Lender Contact Information / AuthorizationBond Program: _________________________________________________________Lender Name: _________________________________________________________Mailing Address: __________________________________________________________________________________________________________________Main Phone Number: _________________________________________________________Main Fax Number: _________________________________________________________Website (if applicable) _________________________________________________________MERS ID # (if applicable): _________________________________NameMain Contact: ______________________ Phone_______________Fax______________Main Contact ______________________Bulletin Contact: ______________________ Phone_______________Fax______________Bulletin Contact ______________________Underwriting Manager: ______________________ Phone_______________Fax______________Underwriting ______________________Shipping Supervisor: ______________________ Phone_______________Fax______________Shipping ______________________Shipping Staff: ______________________ Phone_______________Fax______________Processing Manager: ______________________ Phone_______________Fax______________Processing ______________________Exception Contact: ______________________ Phone_______________Fax______________Exceptions ______________________Final Documents: ______________________ Phone_______________Fax______________Final Docs ______________________Lender Scorecard Recipient: ________________________ Phone_______________Fax______________Scorecard ______________________Wire Instructions:Bank Name: __________________________________________________________ABA Number: ______________________ Account Number:_____________________Account Name: ______________________________________________________Purchase Advice Attn: _________________________ Phone: _________________________Fax # for Purchase Advice: _________________________address: _________________________Authorized Signature: _________________________Fax this completed authorization form to: OR-Scan and this completed authorization form to:Updated –
32 Loan File Submission Process Ship loan(s) immediately after closing within required guidelinesReservation to Exceptions Cleared, Loan Purchased = 115 daysComplete Loan Delivery Checklist for loan type you are shippingAll documentation is completed & correctly executed prior to shipping
33 Collateral ORIGINAL NOTE: Endorsed to U.S. Bank National Association Name Affidavit Required, if Borrower(s) undersignBorrowers typed name(s) under signature lineCo-Signers are to execute NOTE onlyBe sure intangible tax verbiage reads as follows:THIS NOTE AND THE MORTGAGE SECURING THIS NOTE ARISEOUT OF OR ARE GIVEN TO SECURE THE REPAYMENT OF A LOANISSUED IN CONNECTION WITH THE FINANCING OF HOUSING ANDARE EXEMPT FROM DOCUMENTARY STAMP TAX AND INTANGIBLETAX PURSUANT TO SECTION (1), FLORIDA STATUTES
34 Collateral MORTGAGE: (copy) Be sure intangible tax verbiage reads as follows:“THIS MORTGAGE AND THE NOTE SECURED BY THIS MORTGAGE ARISE OUT OF OR ARE GIVEN TO SECURE THE REPAYMENT OF A LOAN ISSUED IN CONNECTION WITH THE FINANCING OF HOUSING AND ARE EXEMPT FROM DOCUMENTARY STAMP TAX AND INTANGIBLE TAX PURSUANT TO SECTION (1), FLORIDA STATUTES
35 Collateral RIDERS: (copy) Other applicable riders (condo, pud, etc.) Tax Exempt Rider (required on all tax exempt bond loans) Original MUST be recorded with mortgageOther applicable riders (condo, pud, etc.)ASSIGNMENT: (copy) – if not a MERS lenderAssigned to U.S. Bank National Association
36 FL Assist /HAMI Programs 1) Original Note to USBHMCopy of Mortgage (with complete legal description)DPA Acknowledgement Form (signed by borrower) in file submissionCorrect tax verbiage appears on the Note and MortgageHAMI LOANS – Early and Final T-I-L’s are required for USBHM to purchaseFlorida Assist – TIL is not a requirement of purchase by USBHM, however if your company policy/procedures do require completion of the TIL, then follow internal guidelinesLenders are to fund 1st and 2nd mortgages USBHM will reimburse at purchaseBe sure to use the correct pre-printed forms located on Ehousing website
38 Coverage Requirements-Hazard Ins. Amount of Coverage 1-4 Family properties must equal the higher of:The loan amount or100% replacement cost of the insurable improvements as determinedby the property insurerFull replacement cost coverage is also acceptableCondo’s & PUD’s amount of coverage must equal:100% of the insurable improvements on a replacement cost basis.Blanket coverage is also acceptable.HO-6 insurance requires that policy be equal to at least 20% of theappraised value of the unit, unless Home Owner Association insurancecovers the “walls in” content (Note: This must be escrowed for)
39 Coverage Requirements-Flood Ins. Amount of coverage for single family dwelling,1-4 Family unit, PUD or detached individual condo unit must equal the lower of:Loan amountReplacement cost of the insurable improvements orMaximum amount of coverage sold under applicable program of theNFIP for the type of improvementsCondo (if high rise or vertical dwelling unitThe building replacement cost or$250,000 multiplied by number of residential units in the buildingCondo properties in a flood zone will require the number of units tocovered by both hazard and flood policies
40 Updated Sinkhole Coverage Guidelines Effective for loans closing on or after December 7, 2011 per USBHM bulletinSinkhole coverage will NOT be required in the state of Florida unless the following is identified:If appraiser has identified any settlement deficiencies and is referenced on property appraisala Sinkhole Inspection will be requiredBased on the Sinkhole Inspection, sinkhole insurance may be necessaryUSBHM will require a copy of the sinkhole inspection report to be included in loan file deliveredfor purchase should there be evidence of settlement deficiencies referenced on the appraisal.In those instances when sinkhole coverage must be obtained please follow guidelines below for proof of coverage:Same deductible requirements as homeowner insurance policyProof of coverage may consist of the following:Clear evidence on declarations page of the hazard policyLetter from insurance agent, on company letterhead referencing borrower, property address, policy # clearly stating borrower has sinkhole coverage and signed by the insurance agentWhen sinkhole coverage is required, catastrophic ground collapse coverage is not acceptable in lieu of sinkhole coverage as it does NOT provide adequate coverage. It only pays out if property is uninhabitable
41 Insurance Deductibles – Government Loans Hazard / Flood / Sinkhole Hazard / FloodUnless a higher maximum amount is required by state law, maximum deductible clause may not exceed the greater of $1,000 or 1 percent of the face amount of the policy1-4 family; Individual PUD units; Individual condo units(i.e. detached condo’s, town or row house)Deductibles may not exceed the higher of $1,000 or 1 percent of the policy’s insurance limits for all covered losses.Association Policy requirements for CONDO/PUD Projects and common areasWindstorm / HurricaneThe greater of $2,000 or 2% of the dwelling coverage
42 Insurance Deductibles – Conventional loans Hazard / Flood / Windstorm / HurricaneMaximum deductible may not exceed 5 percent of the face amount of the insurance policy limits for dwelling coverage (applies to all perils)For 1-4 family; Individual PUD units; Individual condo units(i.e. detached condo’s, town or row house)Maximum deductible may not exceed 5 percent of the face amount of the insurance policy (applies to all perils)Association Policy requirements for CONDO/PUD Projects and common areas;
43 Loan File and Post Close Trailing Document Deficiencies In order of the most common
44 Loan File Deficiencies MortgageMissing Tax Exempt RidersMissing or incorrect tax verbiage information (corrective documentationdoes not state proper corrective verbiage)Property address differs from other docsMissing pages and/or legal descriptionBlank or incorrect notary section (missing county, borrower’snames, complete dates, seal or expiration date)NoteMissing or incorrect endorsements (lenders not usingU.S. Bank National Association) See BulletinIncorrect payment terms
45 Loan File Deficiencies Truth-In-Lending (TIL)Early T-I-L not in file on 1st mortgageFinal T-I-L not in fileCorrective Final T-I-L, if applicable not in fileMI under disclosed or not disclosed in payment streamPer Bulletin new form requiredMDIA bulletins & for referenceNote: If loan is not compliant, it will not be purchased by USBHM and will be cancelled and returned!
46 Loan File Deficiencies HUD-1 Settlement StatementDPA not clearly identified or different amount than on otherdocumentationMissing in file submissionTolerance violation in GFE fee comparison with and no cure documentation in the file (USBHM bulletin )Missing monthly escrows or not collected escrows
47 Loan File Deficiencies Good Faith Estimate (GFE)Most recently issued in file does not match loan terms at closing(See RESPA Bulletin )Initial Loan ApplicationInterviewer date missingMissing from file submissionNot properly documenting applicable date for timing of early TIL (see MDIA bulletins &
48 Loan File Deficiencies Hazard & Flood PoliciesNames & Addresses do not precisely match other docsFlood coverage inadequateDeductibles greater than what is requiredFlood policy missing Flood Zone from CertificationProof of payment not in fileManufactured Housing DocumentationExceptions identified related to USBHM 2007 bulletinNot providing evidence of title being surrenderedMissing information on manufactured home not listed onSecurity instrument
49 Loan File Deficiencies Underwriting DocumentationMissing AUS (DU) findings in the file submissionMissing or unsigned or 1008Questions from that arise either from missing informationor documentation provided that is not accurate (Conventional loans)AssignmentMissing from fileMissing all recordings of the mortgageNot assigned correctly to U.S. Bank National Association(See USBHM BulletinIncorrect reference to lender, borrower, and/or property informationfrom mortgage
50 Loan File Deficiencies FHA ConnectionClosing date not correctADP code not correctNo evidence that UFMIP has been sent to FHACompliance approvalNot providing Ehousing appropriate documentation in order to approve loan for purchase
51 Post-Close Trailing Doc Exceptions Title Policy:Mortgage amount is missingSchedule A, item 4 contains incorrect mortgage recording informationName of insured is incomplete (needs to mirror mortgage and have “it’s successors and/or assigns”)Missing required endorsementsSecond Mortgages:Closing date is incompleteMissing marital status of borrower(s)Incorrect maturity dateLegal description missingTax Exempt Rider is recorded with Second Mortgage instead of the First Mortgage
52 Loan File Deficiencies Posted online for referral and communicated byFaxWeekly Exception ReportProvide separate cover letter / sheet identified by USBHM loannumber or attach weekly exception report to your submissionFax exceptions (216) orexceptions to per USBHMbulletin NO inquiries should be directed to this mailbox!Inquiries should be directed to:Partial submissions are acceptableExceptions are received and reviewed for accuracyOnce ALL deficiencies are resolved loan purchased
53 Post Closing Documentation Organize documents in order of Final Document ChecklistDocs due in our office no later than 120 days after purchaseA $50 penalty fee may be assessed after 120 days (at a rate of $50 permonth until last document has been received)Final Recorded Mortgages, Assignments, Riders, Title Policy, (MIC, LGC,LNG) ONLY!Deliver to: U S Bank Home Mortgage / Document Control Department17500 Rockside RoadBedford, OhioQuestions? Contact Document Control SupervisorDarlene Kreigh – (216)
54 Lender Compensation LENDERS NET: 1.50% Origination : 0% Discount: 0% * SRP: %LENDERS NET: 1.50%All conventional products will be funded with an adjustment for the Adverse Market fee of .25%.MCM Loans ONLY! - LLPA’s will be paid by Florida Housing
55 Loan PurchasePurchased Daily / Amortized Balance / Purchase Summaries FaxedLoan history is required, if payment activity has occurredNet Purchase: (no checks)Current principal balance, interest, SRP, starting escrowBond Application Fee $275.00Tax Service Fee $85.00Adverse market fee .25%, ConventionalExtension Fee, if applicable .25%Second Mortgage Loan Application Fee $ (HAMI Only)
56 U. S. Bank Home Mortgage - MRBP Division Quick Reference Guide
57 USBHM-MRBP Website Access our website at www.mrbp.usbank.com, select U S Bank Lending Manuals and link up to ourinformation via AllRegsLender manualLoan Delivery ChecklistsProduct DescriptionsU S Bank Lender BulletinsManufactured Housing requirements (state specific)
60 Click on Housing Finance Authority for dropdown USBHM Manufactured Housing Guidelines, 203ks manual & USBHM Bulletins can be found here
61 Click on Florida Housing to obtain information For access to Florida’s product descriptions and LoanDelivery Checklists
62 Loan File Delivery Address All Closed Loan files should be delivered to:U.S. Bank Home Mortgage – MRBP Division17500 Rockside RoadBedford, OHAttn: Operations Department
63 Post Closing Trailing Document Delivery Address All Post Closing documents should be delivered to:U.S. Bank Home Mortgage – MRBP Division17500 Rockside RoadBedford, OHAttn: Document Control Department
64 Note Endorsements/Assignments U.S. Bank National Association
65 Hazard/Flood Insurance U.S. Bank National Association Loss Payee ClauseHazard/Flood InsuranceU.S. Bank National Associationits successors and or assigns as their interest may appear.c/o U.S. Bank Home MortgageP.O. Box 7298Springfield, OH
66 Lender Support (Help Desk) In an effort to provide all Lenders who participate in the program with easy access to facilitate Program Administration, we have a specialized Help Desk exclusively for that purposeProduct informationPipeline informationLoan level informationTrack lender performance quarterly (scorecard) andadvise lender and Florida Housing of issuesAny other support that you may require(8:00 a.m. EST - 6:00 p.m. EST)or
67 Shared Mailbox E-mail Addresses Exceptions sent for clearing should be submitted to:Loan status inquiries or general questions should be submitted to:Post funding requests should be submitted to:Examples of post funding requests:Request refund of MIRequest refund of hazard ins. or taxes paidAssistance/DPA missed at fundingWire short due to error at fundingNote: Do not send exceptions or loan status inquiries to this address
68 UW Contact InformationParticipating LendersPrior to contacting USBHM, please reference specific Agency guidelines relative to product you are underwriting. If further clarification is still neededUNDERWRITERS ONLY can send questions viaor call
69 Borrower Payment Address and website: Payment InformationBorrower Payment Address and website:U.S. Bank Home MortgageP.O. BoxBedford, OHBorrowers will receive a monthly statementPayments can be made online at:Borrower can also access payment transaction & loan information.
70 Please give this information to your borrowers at loan closing Customer ServiceToll Free Number(800)Hours: Monday – Friday7:00 am – 8:00 pm ESTPlease give this information to your borrowers at loan closing
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