1. Welcome Closed Loan File Submission and Review Dial in number: (641) 715-3276 Participant Access Code: 297334#

2. Homeownership Staff Erik Nore, Director of Homeownership Anita Racicot, Homeownership Specialist Cynthia Marquez, Compliance Specialist Shawn Rasmussen, Lending Specialist Lisa Romero, Lending Specialist Barbara Tashkandy, Lending Coordinator Teri Baca, Homeownership Representative Eunice Duran, Homeownership Representative 2 4/01/2015

3. Reservation Process All Programs Reservation period  Loan must be purchased by Master Servicer no later than 60 days from the loan reservation date  First mortgage loans that are not purchased within the applicable timeframe must be extended or cancelled by the Lender. No exceptions, for any reason will be made to the reservation policies. 3 4/01/2015

4. Reservation Process All Programs Extension Fees  Lender can request either a 15 day or a 30 day extension for the loan delivery, for a fee:  15 day extension (0.1875% of the loan amount)  30 day extension (0.3750% of the loan amount)  Only ONE extension is allowed  Extension fee applies to first mortgage only 4 4/01/2015

5. Reservation Process All Programs Extension Fees  In the event that a loan is not purchased by the Master Servicer within 60 days of loan reservation, a 30 day extension will automatically be applied, unless the Lender requests a 15 day extension from MFA prior to the 60 day loan reservation expiration date.  The extension fee may be charged to the borrower 5 4/01/2015

6. 6 Reservation Process All Programs Extension Fees  If loan is not purchased within 75 (15 day extension) or 90 (30 day extension) days of the date of reservation (including extension), loan can still be delivered, but will be purchased from Mortgage Lender on a worst case, Mark-to-Market basis that is determined at the time of purchase.

7. 4/01/2015 7 Reservation Process All Programs Watch Pipeline  If the purchase dates cannot be met  ONLY MFA can grant extensions

8. 4/01/2015 8 MFA Guidelines Electronic/Digital Signature Policy  MFA now accepts electronic/digital signatures on all documents except for the following:  Income disclosure letter  Any Borrower explanation letter  Lender certification/letter of explanation  YTD Profit and Loss for self-employed borrowers  Rental verification letters from Landlords  Original Note  Original Mortgage  Signature Affidavit

9. 4/01/2015 9 MFA Guidelines Minimum borrower cash contribution  MFA requires a minimum borrower cash contribution of $500.00, regardless of program type. HERO Program requires a $1,000.00 contribution.  Funds must be from the borrower and cannot be derived from any type of gift, grant, pro-rated taxes or down payment.

10. 4/01/2015 10 MFA Guidelines Minimum borrower cash contribution  MFA requires the lender to provide proof of borrower’s funds on the Final First Mortgage Application in Section VII and on the Final HUD 1  If the borrower contributes more than $500 or $1,000 to the transaction (i.e. Earnest Money, POC Appraisal Fee) the borrower can get those funds back at closing

11. 4/01/2015 11 MFA Guidelines Use of Mortgage Booster Funds  May only be used for minimum down payment and allowable closing costs  MFA will allow a principal reduction of up to $100 if the final Mortgage Booster loan is too high. The principal reduction must be applied to the first mortgage

12. 4/01/2015 12 Fees to Borrower and Lender Fees  Mortgage$aver: 1.00% Origination + 1.00% Discount to the borrower (s)  Mortgage$aver Zero, Mortgage$aver Plus and HERO: 0.00% Origination + 0.00% Discount to the borrower(s)  Lender will be paid 1.00% Origination when the loan is purchased by the Master Servicer

13. 4/01/2015 13 Fees to Borrower and Lender Fees  Mortgage$aver, Mortgage$aver Zero, Mortgage$aver Plus and HERO  Master Servicer (Idaho Housing) will pay a Service Release Premium of the Higher of 1.50% or $750

14. 4/01/2015 14 Second Mortgage Allowable Fees Fees must be reflected on the initial GFE and TIL as well as any additional disclosures that are required. Fees must also appear on the final HUD-1, in accordance with the applicable regulations

15. 4/01/2015 15 Second Mortgage RESPA Lender must provide a Truth in Lending (TIL) Statement and Good Faith Estimate (GFE) to the borrower for the Mortgage Booster Program per RESPA Guidelines  Lender must re-disclose for MFA if the loan amount increases  NOTE: The Payment$aver and Helping Hand programs are exempt because they are 0.00% non amortizing loans

16. Second Mortgage Allowable Fees 16 4/01/2015 Lender may charge an Origination Fee for Mortgage Booster only of: $100.00 Recording Fee (DPA Mortgages)Actual Cost Daily Interest ChargesActual Cost

17. 4/01/2015 17 Recapture Tax (IRS Imposed) Only applies to First Mortgage loans funded from Tax-Exempt Bond proceeds (Does not apply to HERO) Will only be required if all three of the following events occur  Borrower sells the home during the first nine (9) years of ownership  Borrower has a net gain (net profit) on the sale of the home  Borrower experiences a substantial increase in their income (IRS formula will define)

18. 4/01/2015 18 Servicing of Loans Master Servicer will service all First Mortgage loan products MFA will service all Second Mortgage loan products Borrower will receive two coupons

19. 4/01/2015 19 Servicing of Loans Master Servicer will service all First Mortgage loan products MFA will service all Second Mortgage loan products Borrower will receive two coupons

20. 4/01/2015 20 DPA Funding Process Per HUD’s Directive, MFA must fund DPA directly to the title company  DPA must be Compliance Approved prior to MFA sending the wire to the title company

21. 4/01/2015 21 DPA Funding Process Lender must provide to MFA 24 hours prior to closing  Wire Request Form (Current form from MFA website)  Wire Instructions to the Title Company  Copy of the FINAL pre-close HUD 1  Need two (2) HUDs, if borrower obtaining a Mortgage Booster, Payment$aver, Helping Hand along with the MFA First Mortgage Loan

22. 4/01/2015 22 DPA Funding Process  Copy of unsigned documents for funds being wired to title company  Note and  Mortgage  Upload Wire Request and Attachments via the secure on-line Document Imaging (On-Line Reservations) portal

23. 4/01/2015 23 DPA Funding Process MFA prepares wire requests once a day  Cut off time to receive wire requests/corrections is 10:00 am for wire to be sent out same day  Wires will be sent out by 3:00 pm to arrive at the title company by 5:00 pm same day  If property is a HUD or Bank owned property the funds need to be at title at the time of signing, be sure to request the funds to be sent to title the day before closing.

24. 4/01/2015 24 DPA Funding Process Mortgage$aver Plus DPA  MFA will wire 3.50% of final loan amount (must be entire 3.50% including cents) HERO DPA  MFA will wire 3.00% of final loan amount (must be entire 3.00% including cents)

25. 4/01/2015 25 DPA Funding Process Mortgage Booster loan  MFA will wire loan amount less interest collected on the 2 nd mortgage HUD  Since MFA is sending the funds to the title company at the time of closing, the first payment will be due to MFA and not the lender

26. 4/01/2015 26 Compliance Guidelines Questions?

27. 4/01/2015 27 Closing Documents All Programs Non-occupying co-signer(s) allowed** not non-occupying co-borrower(s)  Co-signer will not take title to property  Co-signer(s) must sign Note for first and second mortgages ** Co-signers are not allowed under the HFA Preferred Program

28. 4/01/2015 28 First Mortgage Closing Documents Mortgage$aver Programs Tax Code Documents  Affidavit of Purchaser  Affidavit of Seller  Notice of Potential Recapture  Tax Exempt Financing Rider attached to the first mortgage (FHA, Conventional or USDA loans)  VA Rider attached to the first mortgage (VA loan only)

29. 4/01/2015 29 First Mortgage Closing Documents HERO Program The following documents are not required for the HERO Program  No “Recapture” requirement  Tax Exempt Financing/VA Rider not required  Seller and Purchase Affidavits are not required

30. 4/01/2015 30 First Mortgage Insuring Package The DPA Commitment Form issued at the time of Compliance Approval is included in the insuring package to the investor.

31. 4/01/2015 31 Second Mortgage MFA Closing Documents Note and Mortgage (Mortgage Booster)  Complete the Organization and Loan Originator NMLS # below the signature lines

32. 4/01/2015 32 Second Mortgage MFA Closing Documents Mortgage Booster Program Loan Breakdown Form Loan Disclosure

33. 4/01/2015 33 Second Mortgage MFA Closing Documents Loan Break Down  Final Form to be completed at the time of closing or no later than when preparing the closed loan package for delivery to MFA (The figures on the form are the actual costs that appear on the final settlement statement)

34. 4/01/2015 34 Compliance Guidelines Questions?

35. 4/01/2015 35 Compliance Guidelines Second Mortgage closed Loan Files Delivered to MFA

36. 4/01/2015 36 Closed Loan File Delivery Deliver all closed loan packages (First and Second) simultaneously to Idaho Housing and MFA  Deliver ORIGINAL SECOND NOTE to MFA  Homeownership Department, 344 4 th Street SW, Albuquerque, NM 87102  Both the first and second are delivered electronically to different systems  First mortgage to Idaho via the Lender Connection  Second mortgage to MFA via the On-Line Reservations/Document Imaging Portal

37. 4/01/2015 37 Second Mortgage Closed Loan File Delivery to MFA Training on the portal is via a different presentation - the training will be provided on Thursday, July 23 rd – please reference latest lender memo.

38. 4/01/2015 38 Second Mortgage Closed Loan File Delivery Common Mistakes Loan Breakdown is missing  If the form is missing it causes additional review time when the form is eventually sent in to clear the condition.

39. 4/01/2015 39 Second Mortgage Closed Loan File Delivery Common Mistakes Be sure to include pre-close TIL along with final TIL  Loan must comply according to RESPA rules

40. 4/01/2015 40 Compliance Guidelines Review of MFA’s Second Mortgage Closed Loan Checklist

41. 4/01/2015 41 Second Mortgage Closed Loan Conditions Please send all suspense conditions at once – this will speed up the process.

42. 4/01/2015 42 Second Mortgage Closed Loan File Pending Conditions  All purchase pending conditions must be cleared with the Master Servicer (for first mortgage loans and MFA (for second mortgage/DPA program loans) within 30 days of the issuance of the purchase pending notification

43. 4/01/2015 43 Second Mortgage Closed Loan File Pending Conditions  Conditions need to be cleared ASAP.  All First Mortgage Loans need to be purchased by Master Servicer no later than 60 days from date of reservation.

44. 4/01/2015 44 Closed Loan Approval Once all suspense conditions have been cleared for the second mortgage MFA will send a letter to the Lender. Which reads:  The above referenced closed loan file has been reviewed for QC and has no outstanding conditions.  See the following attachment for required final documents that are due no later than 00/00/0000 ( 90 days from the funding [closing] date).  Please send a copy of this letter attached to the documents when returning them to MFA. This will help MFA process your documents faster. Thank you for your assistance.

45. 4/01/2015 45 Final Document Delivery Final Documents for SECOND mortgages are to be delivered to MFA. Final Documents for FIRST mortgages are to be delivered to Master Servicer.  Final Documents are due within 90 days of the date of purchase/funding  Please send the original Mortgage plus one (1) copy

46. 4/01/2015 46 Compliance Guidelines Questions?

47. 4/01/2015 47 Compliance Guidelines First Mortgage closed Loan Files Delivered to Idaho Housing and Finance

48. 4/01/2015 48 Idaho Housing Please let your borrowers know that their loan will be serviced by HomeLoanServ (Servicing Division of Idaho Housing and Finance)

49. 4/01/2015 49 Idaho Housing Ship the closed loan documents to Idaho Housing and Finance using appropriate loan checklist and delivery mechanism.  Electronic Loan Delivery – Lender Connection Web Portal Send original Notes to IHFA street address Idaho Housing and Finance 565 W. Myrtle Boise, ID 83702

50. 4/01/2015 50 Idaho Housing Tax Service Fee  $59.00

51. 4/01/2015 51 Idaho Housing – Endorsing Note Pay to the order of Idaho Housing and Finance Association Without Recourse “Lender Name” Signature Signatory’s typed name, Title Do not use the ampersand “&” sign, must spell out “and”

52. 4/01/2015 52 Idaho Housing – Allonge Issues Information should match the Note exactly  Borrower’s Name  Property Address  Loan Amount  Note Date (not closing date if different) Endorsement should be per Idaho’s guidelines

53. 4/01/2015 53 Idaho Housing Review Common Mistakes UCDPs are required on HFA Preferred Program loans  The Uniform Collateral Data Portal® (UCDP®) is a single portal through which lenders electronically submit appraisal reports for conventional mortgages delivered to Fannie Mae or Freddie Mac. Through UCDP, lenders can upload appraisal data and view edits and submission details.

54. 4/01/2015 54 Idaho Housing Review Common Mistakes Checklists are not completed  Need contact information Hazard Insurance is not transferred to IHFA Need a letter of intent to transfer in file Flood Certification is not transferred to IHFA Need a letter of intent to transfer in file If file was manually underwritten, need AUS

55. 4/01/2015 55 Idaho Housing Final Document Delivery Documents not required at time of purchase: Original FHA MIC, VA LGC, USDA-RD LNG Original ALTA Title Policy w/104 endorsement Original recorded Trust Deed with riders Original recorded Assignment, if not utilizing MERS

56. 4/01/2015 56 Idaho Housing Final Document Delivery Lenders will be required to certify delivery of these final documents within 90 days of the date of purchase by Idaho Housing and Finance

57. 4/01/2015 57 Idaho Housing Assignments If utilizing MERS, IHFA # 1009670 If utilizing an Assignment:  FOR VALUE RECEIVED, the undersigned hereby grants, assigns and transfers to IDAHO HOUSING AND FINANCE ASSOCIATION, PO Box 7899, Boise, Idaho 83707 all beneficial interest under certain Deed of Trust Dated…

58. 4/01/2015 58 Idaho Housing Lender Connection Finding you Master Servicer Loan Number  Loan number will start with 350 XXXXXX Upload your electronic closed loan documents Upload appraisals Export your loan file 1003.FNM to the finalized reservation information provided by MFA. Track loan status Print purchase advice

59. 4/01/2015 59 Idaho Housing Lender Connection Point your web browser to www.housingnm.orgwww.housingnm.org Click on the “Login” tab at the top of the page.

60. 4/01/2015 60 Idaho Housing Lender Connection Click on drop down in the center of window and select “Lender Connection Idaho Housing”

61. 4/01/2015 61 Idaho Housing Lender Connection – Log In IHFA will provide one person at every MFA lending partner’s office administrative login and rights to Lender Connection. Your administrator will be able to provide you with a username and an initial log-in password. From that point, you will be able to manage your personal account

62. 4/01/2015 62 Idaho Housing Lender Connection – Log In Type in your user name and password and click “Log In.”

63. 4/01/2015 63 Idaho Housing Lender Connection – Main Page The main page lists all of MFA’s loan products

64. 4/01/2015 64 Idaho Housing Lender Connection – Main Page The main page lists all of MFA’s loan products

65. 4/01/2015 65 Idaho Housing Lender Connection – Idaho Loan Number This screen provides details about the loan, the borrower and the property.

66. 4/01/2015 66 Idaho Housing Lender Connection – Upload Documents Click “Upload Documents” to securely send loan documents to Idaho Housing Documents must be in PDF format and less than 100 megabytes

67. 4/01/2015 67 Idaho Housing Lender Connection – Purchase Advice

68. 4/01/2015 68 Idaho Housing Lender Connection – Purchase Advice

69. 4/01/2015 69 Idaho Housing Contacts Annie Smith, Customer Service annies@ihfa.org 208-331-4813  General Master Servicing/Loan Program Questions Liz Calentino, Loan Acquisition Specialist lizc@ihfa.org 208-331-4837  Master Servicer loan purchase inquiries

70. 4/01/2015 70 Idaho Housing Contacts Mark Suderman, Loan Acquisition Lead marks@ihfa.org 208-331-4870  Master Servicer loan purchase inquiries General Mail Box resloan@homeloanserv.com 800-219-2285

71. Contact Information Homeownership Staff Anita Racicot, Homeownership Specialist  505-767-2230; aracicot@housingnm.org Cynthia Marquez, Compliance Specialist  505-767-2238; cmarquez@housingnm.org Shawn Rasmussen, Lending Specialist  505-767-2259; srasmussen@housingnm.org Lisa Romero, Lending Specialist  505-767-2208; lromero@housingnm.org Barbara Tashkandy, Lending Coordinator  505-767-2261; btashkandy@housingnm.org 71 4/01/2015

72. Contact Information Homeownership Staff Teri Baca, Homeownership Representative  505-238-7375; tbaca@housingnm.org Eunice Duran, Homeownership Representative  505-239-1301; eduran@housingnm.org 72 4/01/2015

73. 73 Compliance Guidelines Questions?

74. 4/01/2015 74 Compliance Guidelines Thank you from all of us at the MFA for your participation in our programs