Straight from the Source: A Dialogue with FHA, Ginnie Mae, VA and USDA Management Joyce Allen Deputy Administrator for Single Family Housing January 15, HFA Institute

90% Guarantee! Loans are Ginnie Mae Eligible 100% financing 30 year terms, fixed interest rates Expanded qualifying ratios Gift/Grant funds and MCC’s allowed Existing homes, new construction and new manufactured homes eligible Serve low to moderate income rural homebuyers USA = 90% rural as defined by our programs!

Rural Tools

Guaranteed Loan Program Updates 7 CFR Part 3555: NEW REGULATION! Effective December 1, 2014 Technical Handbook (HB ) MANY EXCITING CHANGES!

Guaranteed Loan Program Updates Maximum Interest Rate Fannie Mae 90 day delivery, Fixed Rate Mortgages Plus 100 basis points Rounded to nearest one quarter of one percent Determined on date of rate lock

Federally Supervised Lenders Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of Thrift Supervision Office of the Comptroller of the Currency Federal Housing Finance Board System

Student Loans Verified fixed payments not subject to change are eligible 1% of outstanding loan balance on credit report must be used for all non- fixed/IBR/adjustable rate/graduated etc. payments. No further documentation required.

Pools No restrictions or deductions for in-ground pools Above ground pools/hot tubs are eligible personal property

Site Restrictions on site value removed There has never been an “acre limitation” Sites may not be tillable farms, or specifically income producing Multiple parcels are allowed, ensure all collateral is on appraisal and title

SAVE Systematic Alien Verification for Entitlements (SAVE) Database of Department of Homeland Security Incorporated into GUS: Additional Data application page USDA Offices available to assist

NEW Combination Construction to Permanent Loan LNG issued at construction closing Ginnie Eligible Loan is closed with fixed interest rate Reserve account can be financed to pay interest Real estate taxes and hazard insurance can be paid from the reserve account Loan is modified and reamoritzied over remaining term when construction is complete, borrower commences scheduled payments

Appraisals Appraisals are valid for 120 days (including new construction) 30 day grace period is allowed NEW Appraisal Update! Appraisal may be extended up to 240 days from the date of the original appraisal New Market Conditions Addendum required Updated appraisals are not eligible for 30 day grace period

Outbuildings No deductions for outbuildings Properties may not have income producing structures Properties must be residential in character, design and use

Electronic Signatures Acceptable unless prohibited by Federal or State law Use is voluntary Lender must follow ESIGN Act Must be clear electronically and printed Lender is responsible for all e- signatures

Certified Loan Application Packaging Process Proposed rule published on August 23, 2013 (78 FR – 52464); final rule is expected in the near future. Through the rulemaking, the loan application packaging process currently in place will be strengthened and improved. Requirements will be placed on eligible individuals to become Agency-certified packagers and on qualified nonprofit organizations and public agencies that employ certified packagers. The requirements will cover experience, training, proficiency, and structure. Section 502 Direct Program Partnering Through Loan Packaging

Questions?