1. Louisiana Housing Corporation Choice Conventional Program Lender Training

2. Lender Training Agenda
Welcome
Introductions
Overview
LHC Choice Conventional Program
Reservation Process
Questions

3. Preferred and Choice rates are the same unless noted
Rate Publishing
Published Interest Rates will be posted daily to the Louisiana Housing Corporation’s website at and a Term Sheet will be ed to lenders by 9:00 am and are valid through 6:00 pm daily.
Preferred and Choice rates are the same unless noted
After the rate is posted at 9:00 am, there is a possibility the rate may change. Always confirm current rate prior to locking rate.

4. No Origination/Discount Fees Down Payment Assistance Grant of 3% or 4%
Program Details
Competitive 30 year fixed rate mortgages
Available state-wide
No Origination/Discount Fees
Down Payment Assistance Grant of 3% or 4%
w/possibility for an increase based on borrower(s) income
Minimum FICO Score of 640
Purchase Money Transactions Only
No First Time Homebuyer Requirement
No Bond Documents/Compliance Package
No Second Mortgage
Lender SRP of 2%
No IRS Recapture Provision
Loan limit is $424,100

5. LHC Choice Conventional Program
The LHC Choice Conventional Program allows lenders to run their loans through Freddie Mac system - Loan Product Advisor
LTV to 97%
Income limits to $99,000
Reduced mortgage insurance premium
Possible additional subsidy dependent on income and AMI

6. Program Details
Non Occupying Co-Borrowers not allowed
Homebuyer Education required for First Time Homebuyers
Loan Product Advisor “Accept” only – Manual underwriting not allowed
Temporary buy downs not allowed
SF Dwelling (1 unit principal residences)
Site Built Houses (detached structures)
Condos and Townhomes
2-4 Units and Manufactured Not Allowed

7. Qualifying Income/Income Limits
Maximum borrower(s) annual income is $99,000. Refer to Exhibit F(c) for the 50%/80% income limits by parish to determine if your borrower qualifies for additional subsidy. Sample parishes below:
Parish
80% - Additional .50% Closing Cost Assistance
50% - Additional 2.0% Closing Cost Assistance
Bossier, Caddo, DeSoto,
$46,640
$29,150
Ascension, East Baton Rouge, Livingston, West Baton Rouge
$51,280
$32,050
Orleans, Plaquemines, St. Charles, Jefferson, St. Bernard, St. Tammany,
$48,000
$30,000

8. Increased Grant Adjustments
Borrowers earning up to and including 50% of the parish median income regardless of family size or loan size are entitled to a 2% increase in the posted Grant size.
Example: Current maximum grant is 4% and if borrower(s) qualify, the maximum grant would increase to 6%.
Borrowers earning greater than 50% up to and including 80% of the parish median income regardless of family size or loan size are entitled to a .50% increase in the posted Grant size.
Example: Current maximum grant size is 4% and if borrower(s) qualify, the maximum grant would increase to 4.5%.
The grant amount will be advanced by LHC at closing.
**Lenders will be liable for repayment if it is determined post closing that AMI income limits did not apply**

9. Compliance Review Requirements
Pre-Close Compliance Review:
None required by LHC
Underwriters should re-confirm the final qualifying income to ensure the amount of the grant has been calculated correctly especially if the borrower qualifies for additional closing cost assistance.
Post Close Compliance: LHC will require the following documents for all loans:
Copy of signed final 1003 loan application
Copy of executed purchase contract
Copy of the Underwriting Transmittal Summary (FHLMC 1077/FNMA 1008)
First two pages of the appraisal and any applicable addendums
Homebuyer Education Certificate
NOTE: Documents should be transmitted to immediately after closing

10. Ownership Interest in Other Residential Properties
There are three (3) circumstances in which a borrower may hold ownership interest in a property that is acceptable to the program.
1. The borrower inherited their ownership interest in the property and shares ownership with another party. Documentation supporting the inheritance is required.
2. The borrower owns the property with another party and the debt associated with the property was assigned to the other party by a court order (e.g., a divorce decree, property settlement, etc.
3. The borrower is a cosigner/guarantor on the related Mortgage debt and someone other than the borrower has made payments on the debt associated with the property for the most recent 12 months, as documented with copies of canceled checks , bank statements or a statement from the lender

11. Program Deadline Requirements
All program deadlines must be followed to avoid termination of the reservation.
Exhibit C - Lender Certification must be received within 20 days for LHC Choice Conventional Program from the reservation date.
Closed loan files must be delivered to SMC within 45 days of the reservation date. If the closed loan cannot be delivered to SMC within 45 days, the loan will be cancelled unless the lender completes and submits the Program’s Exhibit D - Extension Request Form to LHC and SMC prior to the expiration of the loan reservation.

12. Program Deadline Requirements
If the 30 day extension is requested, the loan must be delivered to SMC within 75 days of the reservation date. Failure to deliver will result in termination of the reservation and the loss of the $375 extension fee.
The loan must be purchased by SMC within a 70 day period of the reservation date or within a 100 day period of the reservation date with the 30 day extension.
Failure to clear “Funding Conditions” will result in loans being returned to the lender.

13. Program Documents
The LHC Choice Conventional Program documentation is streamlined to expedite loan processing. The documentation below can be found at: , and by selecting this program.
Required:
Exhibit A – Loan Confirmation Report
Exhibit C – Lender Certification Form
Exhibit E – Requisition Form
Optional:
Exhibit B – Reservation Request Form (Backup Document)
Exhibit D – Extension Request Form
Informational:
Exhibit F – Maximum Limits
Reservation Guide
Program Comparison

14. Program Fees
The fees associated with the programs are the same for all Market Rate Programs. Fees will be netted from the purchase of the loan by SMC.
Doc Review Fee - $300
Tax Service Fee - $85
Flood Certification Fee - $14.50
Transferring your own flood certification to SMC is allowed and will omit this fee
Wire Fee - $20

15. Rate Lock
Once a reservation is made, the rate lock will remain with the borrower throughout the lock period. Property transfers are allowed. Please contact LHC if these situations arise. Program transfers are allowed on a case by case basis.

16. Reservation
Step by step instructions to make a reservation in the LHC online system are available through the Program’s Reservation Guide.
To lock the reservation with the Master Servicer Standard Mortgage Corporation:
Export Fannie 3.2 file from your LOS
Download the Program’s Exhibit A – Loan Confirmation Report provided by the LHC online system
Grab the daily Term Sheet published by LHC
Then upload all forms into SMC Website to create a SMC loan Number.

17. Louisiana Housing Corporation Program Reservation Guide (excerpt)
Select the desired program in the Program Selection Screen by clicking on the name then clicking on [New Loan].

18. Director Of Housing Development Administrative Assistant Manager
Contacts
Director Of Housing Development
Brenda Evans,
Administrative Assistant
Carlette Powell,
Manager
Mary Antoon,
Compliance Specialists
Mary Boudreaux,
Sonja Andrews,
Cody Henderson,
Marketing Representative
Casie McMurray,

19. SMC Contacts
Account Manager – JoAnn Crow Secondary Lock Desk – Tacey Schilling Funding Supervisor – Sheila Hunter For Questions and/or Concerns contact

20. Questions?