1. Welcome Welcome Single Family Program Training
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2. Access to the Presentation
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Conference Dial-in Number: 1 (415)
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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 was sent to you with the reminder

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

4. Overview of Programs

5. Overview of Programs “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
Can be used in conjunction with “First Down” (for down payment assistance) or as a stand alone first mortgage
“First Home” Program is for first time homebuyers – the definition of a first time homebuyers is: either this is the homebuyer’s first home or the homebuyer has not owned a home as their primary residence for a full three years.
$500 Contribution, must be from the borrower’s own funds, not a gift, grant or credit card charge.
620 minimum credit score
0 & 0 to the borrower; however, the lender will be paid a 1% origination fee at the time the loan is purchased
Homebuyer Counseling – E-Home America (MFA’s website) or HUD approved agency
All products – Government and only HFA Preferred Conventional
Income Limits/Acquisition cost
Used in conjunction with First Down

6. Overview of Programs “First Down” Program
Down Payment Assistance 2nd 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
2nd Mortgage
Maximum loan amount is $8,000 determined by need
30 year fixed rate 6%
The lender may charge $100 origination fee for the 2nd; must be disclosed up front
First Down can only be used for the minimum down payment and closing costs. If a borrower wishes to put more money down then they will need to have the funds from another source: savings, gift, etc.
The borrower cannot receive any funds back from the 1st or 2nd mortgages. However, if they paid for the appraisal out of closing and wish to put the cost into the second mortgage, then they can get the funds back at closing because it was their own funds up front.

7. Overview of Programs “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
$ 90,000 income
$350,000 purchase price
$500 borrower contribution
620 credit score
0% Origination Fee and 0% Discount Fee
Must be primary residence. Homebuyer can own another home.
Update-HFA Preferred Conventional Product now allows the homebuyer to have an ownership interest in another residential dwelling at the time of loan closing
HFA Preferred fact sheet is available on MFA’s
The borrowers do not need to have owned a home prior to obtaining this mortgage; first time borrowers are eligible as well.
3% of the final loan amount appears as a credit on the settlement statement that can be used for costs associated with the closing of this loan.
The Next Home income limits are higher because this program is not funded by bond funds. The Income Limit and Purchase Price is for the entire state
$500 Contribution, must be from the borrower’s own funds, not a gift, grant or credit card charge.
620 minimum credit score
0 & 0 to the borrower; however, the lender will be paid a 1% origination fee at the time the loan is purchased
Primary Residence – must follow FNMA Guidelines- Now allows occupant borrower to own another property

8. Overview of New Programs
“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)
Income – MFA does not calculate the income – The lender’s underwriter determines the income and MFA reviews the final AUS findings to make sure the borrower(s) are eligible for the program.
Simplified Documentation – MFA will go over the documentation when we review the Compliance Checklists
No “bond loan” documentation -

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 1st Mortgage
When 1st 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 the Grant 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
The Grant is reserved via the On-line Reservation System and is 3% of the total loan amount (including the cents – don’t round up or down).

10. Compliance Review Process

11. Overview of DPA Funding Process
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.
Homebuyer counseling required for all borrowers/married couples
First time homebuyer (“bond”) Affidavits/Disclosures must be signed at closing
Provide income documentation – send the most current pay stub when submitting Compliance File
MFA calculates the Household Income
All income from a married couple – if spouse is taking title sole and separate, make sure to obtain the current paystub, VOE and VOR for the spouse not taking title.
Homebuyer counseling certificate must have all borrowers names and must not be older than 1 year
First time homebuyer Affidavits signed at closing

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 is only required for first time homebuyers
MFA uses the income that shows on the AUS – we will need the final AUS to determine income qualification
If there is a co-signer on the loan, be aware that the co-signer income shows on the AUS because it is used for qualifying which then will usually show the borrower over income and then the loan would need to go regular market.
Limited documentation
No Bond documentation
Housing counseling for first time homebuyers or if borrower has had a foreclosure or bankruptcy (in Compliance Manual)

14. Process and Flow of Loan File/Documents

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 2nd mortgage Note
Idaho Housing(via Lender Connection)
Delivery of first mortgage closed loan file
Delivery of Lender Funded DPA Loan File
Delivery of original 1st 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

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
The forms are printed from the MFA system through “print documents”. The documents are coded to be printed at a certain status of the loan. Make sure that the information entered into the MFA system is correct and review all the forms before they are submitted to MFA, closing or Idaho.

17. Reservation/Compliance Review/Compliance Approval Forms (continued)
“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)
The Addendums will be shown and reviewed when we go over the checklists
The Index Sheets and Compliance Review Checklists are printed as a set of forms. The Index Sheet will show the loan number, section of the package and a bar code which will let the system know where to parse the file to.

18. Reservation and Compliance Review MFA
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
All loans/grants to be reserved and have the Loan Reservation/Lock Commitment printed
Compliance files are submitted electronically
MFA will review the Compliance files and the lender will receive an stating that the status changed; then the lender will sign back into the ILRS to retrieve the conditions or print documents
Loan/Grant Reservation
Compliance Submission
Compliance Review
Compliance Suspense
Compliance Approval
Close 1st and 2nd in Lender‘s name

19. Compliance Approval Forms
“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
All information on the Compliance Approval/Loan Purchase Commitment MUST be correct.

20. Compliance Approval Forms (continued)
“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”
Switch to the Compliance Checklists and review in this order:
First Home/First Down Compliance Checklist
Switch to the Addendum when it shows on the checklist
Switch back to the First Home/First Down Compliance Checklist
When finished with the checklist switch to the Next Home Checklist
The final document to bring up will be the Next Home Addendum

21. Closing First and Second Loans
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
The loans are closed in the Lender’s name (both first and second)
All first mortgages are closed on standard forms according to the investor
The seconds are closed on standard FNMA Note and Mortgage. Deed of Trusts are not allowed. DO NOT use the documents from Idaho’s website (they have Idaho Housing and Finance Association in the documents and in the footer)
Bond documents (Affidavits, Riders, etc.) will be used for the First Home program but not the Next Home program.
Close Loan(s)
Close loans in Lender’s Name
Deliver Original 2nd Mortgage Note
Deliver Closed loans to Idaho Housing

22. Loan Delivery and Purchase Process Idaho Housing
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 1st 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
One purchase advice
The closed loan delivery checklists are located on the MFA website and the Idaho website. The checklists are one long checklist with the small MFA items checklist, the packages are uploaded to Idaho as one big package and not in sections like the Compliance files.
When Idaho sends the wires to the lenders, the wire will be for all loans purchased that day firsts and second.
Delivery of Closed Loan(s)
Closed Loan Review
Purchase/DPA Conditions
Loan Purchase/DPA Reimbursement

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

24. Closed Loan File Delivery
1st Mortgage loan documents uploaded to Lender Connection using IHFA checklist and stacking order
2nd Mortgage loan documents uploaded to Lender Connection using NM MFA checklist and stacking order
Include a copy of the Original 2nd Note in Loan File upload
Two separate uploads are requested

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

26. 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 (
Lender is responsible for ensuring all applicable program guidelines, rules, regulations, processes and procedures are followed

27. 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
MFA MERS Org. ID #
DPA is reimbursed to lender when the first mortgage loan is purchased
First mortgage assigned/transferred to Idaho Housing using their MERS Org. ID

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

29. Lender Funded DPA
DPA 2nd mortgage loans are closed on standard FNMA or standard FNMA Multi-State Note and Mortgage.
The Lender will provide a “goodbye letter” to homebuyer on both the first and DPA 2nd mortgage loans when the loan is assigned/transferred
Payment Address for 2nd Mortgages (Lock Box):
MFA, P.O. Box , Denver, Colorado
Correspondence Address for 2nd Mortgages:
MFA, 344 4th Street SW, Albuquerque, NM
MFA Phone numbers for borrowers:
or Toll Free (within the state of NM)

30. 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 2nd mortgage loans
Idaho will service all First Mortgage Loans
MFA will service all DPA 2nd mortgage loans

31. Note Delivery Original 1st Mortgage Note sent to Idaho Housing:
Idaho Housing and Finance Association
565 W. Myrtle St.
Boise, ID 83702
Original 2nd Mortgage Note sent to New Mexico MFA
New Mexico Mortgage Finance Authority
344 4th Street SW
Albuquerque, NM 87102

32. Trailing Documents 1st Mortgage docs to IHFA
Final Title Policy, Insurance Certificate (if applicable) and Original Recorded 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 ****

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

34. 1st 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

35. 2nd 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

36. If Using an Allonge OR 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

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

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 Manual
Sample Forms
Checklists
Fact Sheets
Program Policies

39. Contact Information
Idaho Housing and Finance Association
Mark Suderman, Loan Acquisition Manager

40. Contact Information- (Cont.)
New Mexico Mortgage Finance Authority
Anita Rehm-Racicot, Homeownership Lead
Cynthia Marquez, Compliance Specialist
Lisa Romero, Compliance Specialist
Shawn Rasmussen, Lending Specialist

41. Contact Information- (Cont.)
New Mexico Mortgage Finance Authority (Cont.)
Melissa Cabrera , Lending Specialist
Barbara Tashkandy, Lending Coordinator
Teri Baca, Homeownership Representative
Eunice Duran, Homeownership Representative

42. Questions?