DC OPEN DOORS LENDER TRAINING

Welcome to DC Open Doors Program Overview o Program Highlights o Loan Products o Down Payment Assistance o Program Facts o Program FAQs Program Process o Reservation Process o Data Transmission o Pre-closing Review o Reservation Extensions o Direct Funding, Closing o Post-Closing o Process FAQs Contact Information 2 Presentation Summary

Program Highlights DC Open Doors allows participating lenders to offer affordable mortgages and down payment assistance to eligible homebuyers. DC Open Doors has Continuous Funding for its mortgages AND down payment assistance! o Interest rates are posted daily at Facebook (DC Open Doors) and Twitter U.S. Bank, National Association is the Master Servicer. All participating lenders must: o Be approved by both U.S. Bank and DCHFA o Participate in all mandatory trainings Lenders are encouraged to originate a minimum of $1 Million annually. 3

FHA and Conventional Loan Types Open Doors can provide 1 st trust alone or 1 st trust and DPAL Open to First Time and Repeat Homebuyers Open to all D.C. Neighborhoods and Wards Maximum Borrower Income of $125,580 No Household income test $417,000 Maximum 1 st Trust Loan Amount No Sales Price Limitations No Asset Test U.S. Bank Overlays & Investor Guidelines Apply 4 More Inclusive Affordable Homeownership! Program Highlights

DC Open Doors Loan Products FHA 1 st Mortgage up to 96.5% LTV Standard FHA Loan Standard MIP, upfront and monthly FHA Plus 1 st Mortgage up to 96.5% LTV Subordinate loan of 3.5% of sales price Standard FHA Loan, MIP, etc. HFA Preferred HFA Advantage 1 st Mortgage up to 97% LTV Charter minimum, MI Coverage Refinances eligible Homebuyer education required Conventional w/DPAL 1 st Mortgage up to 97% LTV Subordinate loan of 3.0% of sales price Charter minimum, MI Coverage Homebuyer education required 5 Government Conventional

Available for FHA and Conventional Loans Must be coupled with DC Open Doors 1 st Trust Amount is 3.0% or 3.5% of sales price Structured as Subordinate Lien Can be used in conjunction with other assistance programs (HPAP, EAHP, etc.) Forgiven over 5 years, 20% per year DPAL is 0% & non-amortizing (No Payments) Interest rate on 1 st Trust will be slightly higher when using DPAL DPAL is repayable within first 5 years only upon sale, refinance or transfer of title 6 DC Open Doors Down Payment Assistance

DC Open Doors – Program Facts Interest Rates Not Credit Score Based Rate Offered at Par (No Lender Credit, Points, etc.) 45% Maximum Debt to Income Ratio (U.S. Bank) 640 Minimum Credit Score (680 required on HFA Preferred/HFA Advantage over 95% LTV) The maximum loan amount of $417,000 can only be exceeded by the UFMIP on an FHA loan 7

DC Open Doors – Program FACTS Charter minimum MI coverage for conventional loans – 18% at 97% LTV Seller Contributions Allowable – Follow FHA/Fannie/Freddie Guidelines Buyers can use their own funds plus DPAL for additional down payment or closing costs DC Open Doors continues to offer 97% LTV on condominiums Homebuyer education requirement can be completed online or face-to-face. Provider must meet standards defined by the National Industry Standards for Homeownership Education and Counseling = (follow FNMA/FHLMC guidelines) No DCHFA Review/Requirement of the Home Inspection 8

DC Open Doors – Program FAQs Why use HFA without DPAL? o The MI rates are lower on DC Open Doors than on standard conventional loans o Rates are not credit score driven o Choice of Homebuyer Education Provider - Not required to use a specific Homebuyer Education Provider Is there a maximum sales price for the program? o No, there is not a maximum sales price amount. However, the loan amount may not exceed $417,000 plus FHA MIP. What income must be used to determine qualifications under the maximum income requirement? o All borrower income must be documented/verified, regardless of whether or not being used for qualifying purposes –however, NOT based upon household Do you allow a non-occupant co-borrower? o Yes, following Investor/Insurer/Servicer guidelines. Income is counted for eligibility Is there a maximum origination charge the lender is permitted to collect? o No, however it must be reasonable and customary – you may not charge more to our customer than what would be the usual customary amount charged on other loans. 9

DC Open Doors – Program FAQs Can the borrower buy down the interest rate? o No, all of our loans are quoted with 0 points only (no lender credits, either) If I have more than one purchaser, but only one is going to be on the loan, can the other person be on the deed? o Yes, non-borrowers are permitted to be on the title. Can the DC Open Doors programs be used for a refinance? o Yes, the HFA Preferred is also a refinance program up to 97% LTV/CLTV Can my borrower own any other property at the time of closing on a DC Open Doors loan? o No, the borrower may not have ownership interest in any other property at the time of closing. What types of non-resident aliens are allowed under the program? o We follow FHA/FNMA/FHLMC/U.S. Bank guidelines 10

DC OPEN DOORS PROGRAM PROCESS

DC Open Doors Program Process No separate application for DC Open Doors – the borrowers meet with Lender and start loan application Lender is required to disclose the DPA Loan on a separate GFE and have Acknowledgement Form signed on behalf of DCHFA – must follow RESPA guidelines (Loan Estimate form is not permitted for the DPAL) A separate HUD1 Settlement Statement is required at closing (CD not permitted) Lender reserves loan with DC Open Doors (via eHousingPlus website) at time of rate lock (must have ratified contract) Reservation (Rate Lock) starts 70 Day reservation period (delivery & purchase) – recommended quote to borrower is 30 days 12

DC Open Doors Program Process DC Open Doors does pre-closing review for all loans DC Open Doors coordinates closing with Lender Post-closing – eHousingPlus review & U.S. Bank review DC Open Doors – always here to answer questions! 13

DC Open Doors – Reservation Process Reservation = Official Program Rate Lock Date Reservation date starts 70 Day period from lock to U.S. Bank purchase post-closing o Recommended quote of 30 days to borrower to allow sufficient time for post-closing Reserve Loan Using Online Reservation System (eHousingPlus): o Input as much borrower/loan information into the reservation system as possible to reduce Pre-Closing Review processing time o Information must match what is submitted to DCHFA Purchase Contracts MUST be Fully Ratified Prior to Reserving a Loan with DCHFA 14

DC Open Doors Data Transmission DCHFA uses a secure FTP portal for receiving and sending all data, documents, etc. o FTP portal supports PDF, Word, Excel, etc.; o Lenders are responsible for transmitting all document submissions via FTP portal; o Documents are uploaded to DCHFA via secure FTP portal, with specific file naming: Last Name, First Name – Submission or Document Title o DCHFA will transmit DPAL closing documents (commitment letters, loan documents, settlement instructions, etc.) via FTP portal; o DPAL docs are NOT sent to lender via eHousingPlus – the FTP is a separate website; o Each Lender will be provided with login credentials FTP link: 15

DC Open Doors Data Transmission Lenders must designate a system administrator to manage access to FTP portal DCHFA will provide each individual lender with one set of log-in credentials for access. Credentials can be used by multiple parties (processors, underwriters, etc.) 16

DC Open Doors Pre-closing Review DCHFA reviews all loans for compliance and provides a “Clear to Close” Notice. DCHFA is reviewing for the following: o Loan Application Form 1003 for accuracy o Maximum Borrower Income of $125,580 o Proof of Income (*see checklist) o Ratified Purchase Contract o Homebuyer Education (If Applicable) o DPAL (If Applicable) GFE & Acknowledgement – Compliance with RESPA DPA Loan Funding Request form & Wiring Instructions Need 3 business days to process DPAL funding * Always reference the Initial/Final Review Checklist to ensure your package is complete. 17

DC Open Doors Pre-Closing Review Files reviewed on “first come, first served” basis; We will receive an alert when a loan file has been uploaded by a lender. Files will be logged upon receipt; Files missing documentation will be taken out of the review queue and placed in pending queue until the files are complete; DCHFA commits to a timely pre-closing review time from receipt of a completed package; File Approved – DC Open Doors Sends ‘Clear to Close’ Notice 18

DC Open Doors – Reservation Extensions Lenders must request all reservation extensions in writing All extensions will trigger Extension Fees 70 Day Base Rate Lock 30 Day Extension – 0.25% of Loan Amount Fee 100 Days Total 20 Day Extension – 0.50% of Loan Amount Fee 120 Days Total Extension Fees are netted from ALL loans delivered after 70 Days Avoid Extension Fees – Quote 30 Day Locks to Borrowers! 19

DCHFA prepares DPAL closing documents and uploads to FTP for lender to access Lender downloads DPAL closing documents and sends to settlement company with 1 st trust docs DCHFA funds the DPAL directly to settlement company o DCHFA NEEDS 3 BUSINESS DAYS TO PROCESS FUNDING. PLEASE ENSURE DCHFA HAS SUFFICIENT TIME TO FUND THE DPAL If a first trust loan contains deficiencies, or for any other reason cannot be purchased by U.S. Bank, the lender is responsible for reimbursing DCHFA for the DPAL o DCHFA will send a letter to the lender requesting reimbursement including wiring instructions and timing o Failure to reimburse DCHFA for a DPAL closed with a first trust loan that is not purchased by U.S. Bank could result in lender suspension. 20 DC Open Doors Direct Funding and Closing – DPAL only

DC Open Doors Post-Closing Three Parallel Processes Start Immediately After Closing: DC Open Doors & DPAL o Copies of Executed HUD1, Note & DOT uploaded via FTP Portal o Original Borrower Recertification, Note & Recorded DOT mailed to DCHFA eHousingPlus Compliance Review o Package is sent to eHP in Weston, FL o eHP will follow DCHFA’s Post-Closing Review File Checklist for review: Copy of checklist – available on eHousingPlus Copy of the Borrower Recertification Final executed 1003 Copy of executed HUD-1/TRID Certified true copy of Executed DOT and Note o eHousingPlus compliance approval is required before U.S. Bank will purchase loan U.S. Bank Purchase Review o Package is sent to U.S. Bank via docVelocity Imaging o Standard purchase file – please refer to US Bank for complete document list o Please ensure package is complete o Allow time for review and purchase – reservation timeline management is critical eHousingPlus Approval & U.S. Bank Approval Required Loan purchased! 21

Borrower starts process Meets with Lender No separate application for DC Open Doors Must disclose DPALs on a separate GFE Form – must follow RESPA requirements – cannot use LE Lender Reserves Loan Reservation = Rate Lock Starts 70 Day Reservation Period Need fully executed purchase contract Can be before or after underwriting approval Pre-Closing Review Required for all loans, with or without DPAL Submitted to DCHFA via FTP Complete files reviewed Funding, Closing DCHFA funds DPALs directly at closing DCHFA sends DPAL loan docs to Lender via FTP 3 business days needed to fund DPAL Loan closes! 22 DC Open Doors – Process Summary

Post Closing Compliance Review file mailed to eHousingPlus Purchase file uploaded to U.S. Bank DPAL original docs sent to DCHFA Post Closing eHousingPlus communicates any deficiencies to Lender. Approves loan Notifies U.S. Bank Post Closing U.S. Bank communicates any deficiencies to Lender. Approves loan Purchases loan 70 Day Reservation Period Extensions Must be requested PRIOR to expiration Must be requested in writing Trigger Extension Fees 23

Subordinate financing listed as Source of Down Payment/Closing Costs on 1003 and must have GFE and HUD1 (DPAL loans only) All lender and DCHFA numbers required to reflect the same amounts All document or approval contingencies must be received before lender receives a Clear to Close from DCHFA. After an approval is issued, no changes to DU, 1003, U.S. Bank approvals, etc. can be made. If so, it must be reviewed again with revisions. 24 DC Open Doors – Process FAQs and Tips LENDERS DO NOT CANCEL DC OPEN DOORS LOANS IN SYSTEM Please us at to cancel a loan

Lender should submit loan files as close to the loan settlement date as possible, but not less than 5 business days before; Please coordinate with your Secondary/Loan Ops Department about locks (timing and how-to) HFA Conventional loans with LTVs greater than 95% must be underwritten pre-closing by US Bank, unless the lender is delegated No specific MI company is required on DC Open Doors’ loans o Refer to U.S. Bank for a list of acceptable MI Providers HFA Preferred (FNMA) loans must be run through DU and coded as “HFA Preferred” o Must receive DU “Approve/Eligible” Findings HFA Advantage (FHLMC) loans must be run through LP and coded as “HFA”. o Must receive Accept findings. 25 DC Open Doors – Process FAQs and Tips

DC Open Doors Contact Information 26 Program Administration Lisa Hensley, Single Family Director Bill Milko, Single Family Deputy Director Deborah Jones, Single Family Program Manager Website and Social Media Website: (All forms, presentations, etc. are in For Participating Lenders Only section) (Follow us!) Facebook: (Like our page!)

Additional Contacts 27 U.S. Bank U.S. Bank Guidelines: Post-Closing Package: Upload via docVelocity Imaging Required Original Documents: Mail to: U.S. Bank Home Mortgage, HFA Division Note Vault 1550 American Blvd. E, Suite 440, Bloomington, MN Help Desk: (800) or eHousingPlus Website: Mailing Address: 3050 Universal Blvd., Suite 190, Weston, FL Phone: (954) Address:

Common Conditions o Findings Reflecting Cash Back to the Borrower – Common reason for this finding is that EMD is reflected as paid under Details of Transaction. Cure is to reflect EMD under the Asset Section of the o Property address mismatch on Flood Cert, Note and other Loan Documents. Example: Unit #XXX, #XXX, Unit XXX – ALL MUST MATCH!!! o Demand Feature not checked on the Closing Disclosure. o List of Service Providers not provided. o Source of Funds on 1003 must reflect Subordinate Financing/DC Open Doors (or Secured Borrowed Funds) for loans with DPA. o AU Findings must reflect program type (HFA Preferred or HFA Advantage) so that MI requirements are correct and findings are correct. o DC Open Doors separate GFE for DPA loans completed. o Separate HUD1 for DPA loans (not TRID form) and NO title insurance/fees other than cost to record! Let your title company know up front. HUD1 must reflect TOTAL DPAL amount in parenthesis ($x,xxx) and then reflect the net amount after recording fee is deducted as the actual credit 28

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DC Open Doors Program Instructions for after the Live Webinar Program Training Step #1 Attend the eHousingPlus Lender Portal System Software Training This training is only required for anyone who will reserve funds, print forms, view the program pipeline and clear exceptions. System software training is conducted on a weekly basis via Live Webinar. Please click on this link to register : Step #2 After System Software Training - Apply for user credentials. Loan Officers who will NOT reserve funds in the eHousingPlus Lender Portal but DO need their name to appear in drop down to receive credit for originating a DCHFA DC Open Doors loan, click on this link: Loan officers, processors, closers, shippers and post closers who need access to the lender portal and do NOT currently have an eHousingPlus Lender Portal username and password, please click this link: Look for the Sign-In button, directly below click on the link “Register for User ID”. Complete the required information and submit the form. Loan officers, processors, closers, shippers and post closers who need access to the lender portal and DO currently have an eHousingPlus Lender Portal username and password, please click this link: Use the FlexCode: AEROMANCY (code will expire in 5 business days) 32

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