1. Welcome Single Family Program Training Conference Dial-in Number: (641) 715-3276 Participant Access Code: 297334# https://apps.na.collabserv.com/meetings/join?id=4789-5707

2. Access to the Presentation Audio for the presentation must be accessed through the conference dial- in number Conference Dial-in Number: (641) 715-3276 Participant Access Code: 297334# Audio is not available through the slide presentation Questions can be asked via: “ Chat Box” within the presentation Via the conference call-line will be open periodically throughout the presentation for questions A copy of the presentation is available on MFA’s website 2

3. Webinar Agenda Overview of Programs First Home/First Down Next Home/Next Home Grant Compliance Review Process First Home Next Home Process and Flow of Loan File/Documents MFA Idaho Housing Forms Down Payment Assistance (“DPA”)Funding Process Loan closing/funding Delivery of Closed Loan Files Lender funded DPA Note Delivery/Closed File Delivery Trailing Docs Endorsement/Allonge Net Payment for Purchased Loans 3

4. Overview of Programs 4

5. 5 “First Home” Program First Time Homebuyer Program $500 borrower contribution 620 credit score 0% Origination Fee and 0% Discount Fee Homebuyer Counseling Required for all Borrowers Government (“FHA, VA, USDA, HUD Section 184”) and Conventional (“HFA Preferred”) rates Income Limits and Acquisition Cost Limits detailed in First Home Program Policy and on MFA’s website at www.housingnm.org Can be used in conjunction with “First Down” (for down payment assistance) or as a stand alone first mortgage

6. Overview of Programs 6 “First Down” Program Down Payment Assistance 2 nd Mortgage Loan Up to $8,000 30 year, fixed rate (6.00%) $100 origination fee may be charged Used for minimum down payment and closing costs only No cash back to homebuyer at closing Combined with First Home Program

7. Overview of Programs 7 “Next Home” No First Time Homebuyer Requirement Includes 3.0% DPA grant to homebuyer (“Next Home Grant”) One Income Limit and one Purchase Price limit $75,000 income $350,000 purchase price $500 borrower contribution 0% Origination Fee and 0% Discount Fee 620 credit score Must be primary residence. Homebuyer can own another home. Exception-HFA Preferred Conventional Product does not allow the homebuyer to have an ownership interest in any other residential dwelling at the time of loan closing HFA Preferred fact sheet is available on MFA’s website @ www.housingnm.orgwww.housingnm.org

8. Overview of New Programs 8 “Next Home” (cont.) Qualify with income from borrower(s) Lender’s underwriter determines MFA qualifying income not to exceed program limits Simplified Documentation Lenders will not need to provide: Paystubs Tax returns Bank statements VOR’s VOE’s No “bond loan” documentation (i.e. Recapture Notice, Affidavit of Buyer/Seller, Riders)

9. Overview of Programs “Next Home Grant” 3.0% DPA grant to the homebuyer Lenders will reserve Next Home grant via the Online Reservation system Grant is 3.0% of the total loan amount of the 1 st Mortgage When 1 st mortgage is reserved, then click on “reserve a second” and reserve the grant amount. Enter the grant amount including the cents in the “loan amount” field even though it is not a loan (this is the only way to enter in the Online Reservation System) Grant can be used for down payment, closing costs, etc. Cannot be used for cash back to the homebuyer Each Next Home Grant is assigned an ID number at time of reservation 9

10. Compliance Review Process 10

11. Overview of DPA Funding Process 11 Compliance Review Process Lender will submit a Compliance File to MFA for review Follow current process (submit electronically) After Compliance Approval Lender will receive a “Compliance Approval/Loan Purchase Commitment” for each first mortgage and DPA second mortgage loan Lender will also receive a “DPA Funding Commitment” for DPA loan or grant Lender closes first mortgage and second mortgage loans in their name and funds the first and second mortgage loans or grant at the closing table Other than the pre-closing Compliance Approval, no additional approval from MFA is required prior to closing

12. First Home/First Down Must provide documentation for MFA to calculate income, determine property eligibility, first time homebuyer status, etc. MFA calculates Household Income All income from married couple included in income calculation Must provide VOE, VOR, bank statements, etc. Home buyer counseling required for all borrowers/married couples First time homebuyer (“bond”) disclosures must be signed at closing 12

13. Next Home/Next Home Grant MFA will use the lender credit underwriting income to qualify the borrower for the program  MFA will not calculate “program” income separately  All credit underwriting income will be used including co-signer income Lender is not required to submit paystubs, VOE, VOR, bank statements to MFA Very limited documentation  Appraisal  Purchase contract  Correct and accurate Next Home Reservation/Lock Commitment  Correct and accurate Next Home DPA Grant Reservation/Lock Commitment  Credit report  Counseling certificate (FTHB only)  Final first mortgage loan application  FINAL underwriter approval and DU Findings  Complete and accurate Next Home Compliance Addendum No “bond” documents need to be signed, even if the borrower is a first time homebuyer Homebuyer counseling only required for first time homebuyers 13

14. Process and Flow of Loan File/Documents 14

15. Process and Flow of Loan File Process and Flow of Loan File/Documents MFA (via Online Reservation System) Loan Reservation (First Home & First Down OR Next Home & Next Home Grant) Compliance Review Clearing Compliance Conditions Compliance Approval Forms and Checklists for closed loans Close First and Second loans Delivery of original 2 nd mortgage Note Idaho Housing(via Lender Connection) Delivery of first mortgage closed loan file Delivery of Lender Funded DPA Loan File Delivery of original 1 st mortgage Note Purchase pending conditions Purchase of first mortgage Purchase/reimbursement of DPA Concurrent purchase process and separate purchase advices for the first mortgage and DPA loan 15

16. Reservation/Compliance Review/Compliance Approval Forms All Reservation/Compliance Review/Compliance Approval Forms will print directly from the ILRS Forms will be populated with individual loan information Loan number (Second Mortgage or Grant ID# will have to be completed manually on the MFA Compliance Addendum) Loan Amount Borrower/Co-Borrower name Property address Forms will be available to print based on the status of the loan First Home, First Down, Next Home, Next Home Grant Loan Reservation/Lock Commitments (Provided at time of Reservation) Compliance Approval/Loan Purchase Commitment (Provided at time of Compliance Approval for all loans excluding the Next Home Grant) DPA Funding Commitment for second mortgage or grant (Provided at time of Compliance Approval) Sample Forms are available on MFA’s website www.housingnm.org 16

17. Reservation/Compliance Review/Compliance Approval Forms (continued) 17 “MFA Compliance Addendum” Print at time of loan reservation Separate Compliance Addendums for First Home and Next Home “Index Sheets and Compliance Review Checklists” First Home with First Down or stand alone First Home Next Home and DPA Grant (single checklist) FTHB bond loan documentation (“First Home”) Affidavit of Seller Affidavit of Buyer Notice of Potential Recapture Tax Exempt Financing Rider VA Rider (if applicable)

18. Reservation and Compliance Review MFA Loan/Grant Reservation Compliance Submission Compliance Review Compliance Suspense Compliance Approval Close 1st and 2 nd in Lender‘s name 18 Loan reserved on MFA’s Internet Loan Reservation System (“ILRS”) Loan Reservation/Lock Commitment form(s) available for print Compliance File submitted via ILRS Index Sheets and checklists printed off ILRS First Home/First Down packaged together Next Home/Next Home Grant packaged together Compliance Review conducted by MFA If suspended, Compliance Suspense Conditions printed via ILRS Compliance Suspense conditions submitted via ILRS Compliance Approval Compliance Approval/Loan Purchase Commitment available to print DPA Funding Commitment also available to print

19. Compliance Approval Forms 19 “Compliance Approval/Loan Purchase Commitment” MFA’s commitment to purchase the loan from the Lender Details the terms and conditions by which the Master Servicer will purchase the loan Loan that is delivered to Master Servicer must match the terms and conditions of the “Compliance Approval/Loan Purchase Commitment” It is the Lender responsibility to ensure that the “Compliance Approval/Loan Purchase Commitment” is accurate prior to loan closing

20. Compliance Approval Forms (continued) 20 “DPA Funding Commitment” Provided for DPA second mortgage loans and DPA grant MFA’s commitment to purchase the DPA loan or reimburse the grant to the Lender Includes information required by FHA/FNMA regarding DPA secondary financing (if applicable), source of DPA funds, commitment of DPA funds by MFA and a gift letter (if applicable) for the borrower It is the Lender’s responsibility to ensure that the “DPA Funding Commitment” is accurate prior to loan closing MFA will only purchase/reimburse for the amount listed on the “DPA Funding Commitment” and “Compliance Approval/Loan Purchase Commitment”

21. Closing First and Second Loans Close Loan(s)Close loans in Lender’s Name Deliver Original 2 nd Mortgage Note Deliver Closed loans to Idaho Housing 21 Close First and Second Mortgages in Lender’s Name Close First Mortgages on standard forms depending on investor Close Second Mortgages on standard FNMA Note and Mortgage (Do not use a Deed of Trust for the Second Mortgages) First Home Program Loans will need the Bond Documents executed Next Home Program Loans do not have any Bond Document executed

22. Loan Delivery and Purchase Process Idaho Housing Delivery of Closed Loan(s)Closed Loan ReviewPurchase/DPA Conditions Loan Purchase/DPA Reimbursement 22 Closed Loan delivered to Idaho Housing for Purchase Closed Loan delivery checklists for Idaho Housing Closed First and Second Loan file(s) delivered to Idaho Housing (Including Lender funded DPA Grant) Delivery of original 1 st mortgage Note Closed Loan Review Purchase pending conditions for first mortgage and lender funded DPA Purchase/DPA Conditions Conditions uploaded, reviewed and cleared First Mortgage Loan Purchase/DPA Loan Reimbursement provided by Idaho Housing via Lender Connection Separate purchase advice for each loan One wire for both First Mortgage Loan Purchase/Grant Reimbursement Reimbursement provided by Idaho Housing via Lender Connection One purchase advice One wire for both

23. Forms Closed Loan Delivery/Purchase Closed Loan Delivery File checklists available on MFA website for loans to be delivered to Idaho Separate Checklists for each Loan Type on MFA’s website Idaho Housing MFA Lender Checklist MFA Items Delivery Checklist (First Home or Next Home) First Down DPA Closed Loan Checklist Checklists combined in Closed Loan file delivered to Idaho Housing First mortgage and DPA checklists included in file upload via Lender Connection 23

24. Down Payment Assistance (“DPA”) Funding Process 24

25. DPA Funding Process Each DPA loan or DPA grant is reserved separately from the first mortgage Each DPA Loan or Grant reservation gets a unique loan number (First Down) or ID number (Next Home Grant) Each Reservation will receive a separate DPA Reservation/Lock Commitment Each type of down payment assistance will receive a DPA Funding Commitment Sample forms are available on the MFA website (www.housingnm.org)www.housingnm.org Lender is responsible for ensuring all applicable program guidelines, rules, regulations, processes and procedures are followed 25

26. DPA Funding Process All DPA is funded by the Lender at closing Next Home grant or First Down DPA loans (First Down) are closed in the name of the lender DPA loan is assigned/transferred through MERS to MFA at loan purchase OR if lender does not participate in MERS a paper assignment is recorded after the loan is purchased First mortgage loan is assigned/transferred through MERS to Idaho Housing OR if lender does not participate in MERS a paper assignment is recorded after the loan is purchased MFA MERS Org. ID #1013401 DPA is reimbursed to lender when the first mortgage loan is purchased First mortgage assigned/transferred to Idaho Housing using their MERS Org. ID 26

27. DPA Funding Process 27 Lender receives Compliance Approval from MFA Lender Closes first mortgage and DPA second mortgage loan Lender funds DPA at closing (2 nd mortgage or Grant) Lender Delivers Closed Loan Package to Idaho Housing (or MFA) Lender Assigns/Transfers First Mortgage to Idaho Housing Lender Assigns/Transfers DPA 2 nd Mortgage to MFA Idaho Housing provides purchase advice for both the first mortgage and DPA 2 nd mortgage and the first mortgage/grant combination

28. Lender Funded DPA DPA 2 nd mortgage loans are closed on standard FNMA or standard FNMA Multi- State Note and Mortgage. (MFA does not allow a Deed of Trust) The Lender will provide a “goodbye letter” to homebuyer on both the first and DPA 2 nd mortgage loans when the loan is assigned/transferred Payment Address for 2 nd Mortgages: MFA, P.O. Box 912727, Denver, Colorado 80291-2727 Correspondence Address for 2 nd Mortgages: MFA, 344 4 th Street SW, Albuquerque, NM 87102 MFA Phone numbers for borrowers: 505.843.6880 or Toll Free (within the state of NM) 1.800.444.6880 28

29. Lender Funded DPA Idaho will provide a “welcome letter” to the homebuyer on the first mortgage loans MFA will provide a “welcome letter” to the homebuyer on the DPA 2 nd mortgage loans Idaho will service all First Mortgage Loans MFA will service all DPA 2 nd mortgage loans 29

30. Note Delivery Original 1 st Mortgage Note sent to Idaho Housing: Idaho Housing and Finance Association 565 W. Myrtle St. Boise, ID 83702 Original 2 nd Mortgage Note sent to New Mexico MFA New Mexico Mortgage Finance Authority 344 4 th Street SW Albuquerque, NM 87102 Include a copy of the Original 2 nd Note in Loan File upload 30

31. Closed Loan File Delivery 1 st Mortgage loan documents uploaded to Lender Connection using IHFA checklist and stacking order 2 nd Mortgage loan documents uploaded to Lender Connection using NM MFA checklist and stacking order Two separate uploads are requested 31

32. Trailing Documents 1 st Mortgage docs to IHFA Final Title Policy, Insurance Certificate (if applicable) and Original Recorded Deed of Trust/Mortgage, including Riders and Original Recorded Assignment (if applicable), delivered to: Idaho Housing and Finance Association Attn: Document Center 565 W. Myrtle Street Boise, ID 83702 ****Final Title Policy and Insurance Certificate may be uploaded to Lender Connection **** 32

33. Trailing Documents 2nd Mortgage docs to NM MFA Recorded 2 nd Mortgage documents delivered to: New Mexico Mortgage Finance Authority 344 4 th Street SW Albuquerque, NM 87102 **Please write 2 nd (DPA) MFA loan number on the top of the document** 33

34. 1 st Mortgage Note Endorsement to IHFA Pay to the order of Idaho Housing and Finance Association (no Ampersand signs, must spell out “And”) Without Recourse Lender Name _____(signature)_____ Signatory’s typed name, Title 34

35. 2 nd Mortgage Note Endorsement to New Mexico MFA Pay to the order of New Mexico Mortgage Finance Authority Without Recourse Lender Name _____(signature)_____ Signatory’s typed name, Title 35

36. If Using an Allonge Borrower’s Name (exact match to Note) Property Address (exact match to Note) Note/Loan Amount Note Date (no closing date if different) Pay to the Order of Idaho Housing and Finance Association (No Ampersand sign) (First Mortgage) OR Pay to the Order of New Mexico Mortgage Finance Authority (No Ampersand sign) (DPA Mortgage) Without Recourse Company Name as it appears on the Note Signature Line Signatory’s Typed Name Signatory’s Title 36

37. Loans Purchased within 15 days of First Payment Due Date First payment (and subsequent payments) will be netted out of purchase amount of the First Mortgage purchase Purchase Statement will account for escrow amount Lender retains entire PITI First payment (and subsequent payments) will be netted out of purchase amount of the Second Mortgage purchase 37

38. Additional Items MFA program documents available on MFA website Compliance Manual for First Home/First Down Compliance Manual for Next Home/ Next Home grant Online Reservation and Closed Loan Delivery Manual Sample Forms Checklists Fact Sheets Program Policies 38

39. Questions? 39