1. Welcome Welcome Single Family Program Training October 22, 2015
1:00PM-2:00PM Mountain Time
Conference Dial-in Number: (641)
Participant Access Code: #

2. Access to the Presentation
Audio for the presentation must be accessed through the conference dial-in number
Conference Dial-in Number: (641)
Participant Access Code: #
Audio is not available through the slide presentation
Questions can be asked via:
“ Chat Box” within the presentation
Via the conference call-line will be open periodically throughout the presentation for questions
Copies of the presentation will be available on MFA’s website

3. Webinar Agenda Overview of New Programs
First Home/First Down/Next Home and 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
Old Programs with MFA funded DPA
Old and New Programs with Lender funded DPA
Note Delivery/Closed File Delivery
Trailing Docs
Endorsement/Allonge
Net Payment for Purchased Loans

4. Overview of New Programs

5. Overview of New Programs
“First Home” Program
First Time Homebuyer Program
$500 borrower contribution
620 credit score
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

6. Overview of New 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

7. Overview of New 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
$75,000 income
$350,000 purchase price
$500 borrower contribution
0% Origination Fee and 0% Discount Fee
620 credit score
Must be primary residence. Homebuyer can own another home.
Exception-HFA Preferred Conventional Product does not allow the homebuyer to have an ownership interest in any other residential dwelling at the time of loan closing
HFA Preferred fact sheet is available on MFA’s

8. Overview of New Programs
“Next Home” (cont.)
Qualify with income from borrower(s)
Income used for credit qualifying is income for program limits
Lender’s underwriter determines MFA qualifying income
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)

9. Overview of New Programs
“Next Home Grant”
3.0% DPA grant to the homebuyer
Lenders will reserve Next Home grant via 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

10. Compliance Review Process

11. First Home/First Down Same process as has been traditionally done
Must provide documentation for MFA to calculate income, determine property eligibility, first time homebuyer status, etc.
MFA calculates Household Income
Income from married couple included in income calculation
Must provide VOE, VOR, bank statements, etc.
Home buyer counseling required for all borrowers/married couples
First time homebuyer (“bond”) disclosures must be signed at closing

12. Next Home/Next Home Grant
Income used to qualify the borrower for the credit underwrite is the income to qualify for the program
MFA will not calculate “program” income separately
Only the income of the borrower will be counted towards the qualifying income
Lenders not required to submit paystubs, VOE, VOR, bank statements to MFA
Very limited documentation
Appraisal
Purchase contract
Correct and accurate Reservation/Lock Commitment
Next Home DPA Funding Commitment
Credit report
Counseling certificate (FTHB only)
Final first mortgage loan application
Final underwriter approval/DU
Complete and accurate Compliance Addendum
No “bond” documents need to be signed, even if the borrower is a first time homebuyer
Homebuyer counseling only required for first time homebuyers

13. Process and Flow of Loan File/Documents

14. Process and Flow of Loan File
Process and Flow of Loan File/Documents
MFA (via Online Reservation System)
Loan Reservation
Compliance Review
Clearing Compliance Conditions
Compliance Approval
Forms and Checklists to close loans
Delivery of original 2nd mortgage DPA Note
Delivery of MFA funded DPA Loan File
Idaho Housing(via Lender Connection)
Delivery of first mortgage closed loan file
Delivery of Lender Funded DPA Loan File
Purchase pending conditions
Purchase of first mortgage
Purchase/reimbursement of DPA
Concurrent purchase process a separate purchase advices for the first mortgage and DPA loan

15. 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
Delivery of MFA funded DPA Loan File
MFA funded DPA loan file/follow up conditions
Delivered via the same process as before
Loan/Grant Reservation
Compliance Submission
Compliance Review
Compliance Suspense
Compliance Approval
Delivery of MFA funded DPA loan file

16. Loan Delivery and Purchase Process Idaho Housing
Closed Loan delivered to Idaho Housing for Purchase
Closed Loan file(s) delivered to Idaho Housing (Lender funded DPA only)
Closed Loan delivery checklists for Idaho Housing
First Mortgage Loans
DPA Loans/grant reimbursement for Lender funded DPA
Closed Loan Review
Purchase pending conditions for first mortgage and lender funded DPA
Mortgage$aver, Mortgage Booster, HERO
First Home/First Down
Next Home/Next Home Grant
Purchase/Reimbursement Conditions
Provided by Idaho Housing via Lender Connection
Submitted for first mortgage loans and lender funded DPA
First Mortgage Loan Purchase/DPA Loan/Grant Reimbursement
Separate purchase advice for each loan
One wire for both
Delivery of Closed Loan(s)
Closed Loan Review
Purchase/Reimbursement Conditions
Loan Purchase/DPA Reimbursement

17. Forms Reservation/Compliance Review/Compliance Approval
All Reservation/Compliance Review/Compliance Approval Forms will print directly from the ILRS
Forms will be populated with individual loan information
Loan number
Loan Amount
Borrower/Co-Borrower name
Property address
Forms will be available to print based on the status of the loan
Loan Reservation/Lock Commitment
Compliance Approval/Loan Purchase Commitment
DPA Funding Commitment
Sample Forms are available on MFA’s website

18. Forms Closed Loan Delivery/Purchase
Closed Loan Delivery File checklists available on MFA website
Separate Checklists for each Loan Type on MFA’s website
Idaho Housing MFA Lender Checklist
MFA Items Delivery Checklist (First Home, Next Home, Mortgage$aver, HERO)
First Down/ Mortgage Booster 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

19. Forms Available for printing from ILRS
“Loan Reservation/Lock Commitment”
Provided at time of reservation
First Home, First Down and Next Home loans and Next Home Grant
“Compliance Approval/Loan Purchase Commitment”
Compliance Approval and Purchase Agreement in one document
Provided at time of Compliance Approval
First Home , First Down and Next Home loans
Does not apply to Next Home Grant
“DPA Funding Commitment”
Next Home grant
First Down second mortgage loan
Satisfies HUD/ FNMA requirements regarding source of DPA, commitment of DPA funds by MFA and gift letter.

20. Forms (cont.) “MFA Compliance Addendum”
Print at time of loan reservation
Separate Compliance Addendums for First Home and Next Home
Not required for First Down and Next Home Grant
“Index Sheets and Compliance Review Checklists”
First Home with First Down (same as Mortgage$aver Zero and Mortgage Booster)
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)

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

22. 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

23. DPA Funding Process
As of October 1, 2015, all DPA is funded by the Lender at closing
Can include Mortgage Booster, Mortgage$aver Plus grant, HERO grant, Next Home grant or First Down
DPA loans (First Down, Mortgage Booster) are closed in the name of the lender
DPA loan is assigned/transferred through MERS to MFA at loan purchase
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 and DPA loan (or grant) is delivered to Idaho Housing via Lender Connection
Original second mortgage note is delivered to MFA
Original first mortgage note is delivered to Idaho Housing
First mortgage assigned/transferred to Idaho Housing using their MERS Org. ID

24. 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
Lender Delivers Closed Loan Package to Idaho Housing (or MFA)
Lender Assigns/Transfers DPA 2nd Mortgage to MFA

25. Delivery of Closed Loan Files

26. MFA Funded DPA Old Programs
Includes Mortgage$aver, HERO and Mortgage Booster
The first mortgage loan file (including grant documentation) and a copy of the DPA second mortgage loan are delivered to Idaho Housing
Uploaded via the Lender Connection
The original DPA 2nd mortgage loan file is delivered to MFA
via ILRS on MFA website
The original DPA 2nd Note is delivered to MFA
Idaho Housing purchases the first mortgage loan

27. Lender Funded DPA All Programs
May include Mortgage$aver, HERO, Mortgage Booster, First Home and Next Home
The first mortgage loan file (including grant documentation) and the original DPA 2nd mortgage loan file is delivered to Idaho Housing
Uploaded via the Lender Connection
The original DPA 2nd Note is delivered to MFA
Idaho Housing purchases both first and DPA 2nd mortgage (or reimburses DPA grant)
Idaho Housing will send one wire to lender for purchase/reimbursement

28. Lender Funded DPA All Programs
DPA 2nd mortgage loans are closed in the name of the lender
The lender will provide a “welcome letter” to the homebuyer on both the first and DPA 2nd mortgage loans
The Lender will provide “goodbye letter” to homebuyer on both the first and DPA 2nd mortgage loans when the loan is assigned/transferred
MFA will service all DPA 2nd mortgage loans

29. 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
Include a copy of the Original 2nd Note in Loan File upload

30. 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
Two separate uploads are requested

31. Trailing Documents 1st Mortgage docs to IHFA
Final Title Policy, Insurance Certificate (if applicable) and Original Recorded Deed of Trust, 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

32. Trailing Documents 2nd Mortgage docs to NM MFA
Recorded 2nd Mortgage documents and title insurance policy for 2nd delivered to:
New Mexico Mortgage Finance Authority
344 4th Street SW
Albuquerque, NM 87102

33. 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

34. 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

35. If Using an Allonge 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)
Without Recourse
Company Name as it appears on the Note
Signature Line
Signatory’s Typed Name
Signatory’s Title

36. Loans Purchased within 15 days of First Payment Due Date
First payment will be netted out of purchase amount
Purchase Statement will account for escrow amount
Lender retains entire PITI
This includes 2nd Mortgage payment

37. Additional Items MFA program documents available on MFA website
Compliance Manual for Mortgage$aver/HERO/Mortgage Booster
Compliance Manual for First Home/Next Home
Compliance Manual for Next Home/ Next Home grant
Online Reservation and Closed Loan Delivery Manual
Sample Forms
Checklists
Fact Sheets
Program Policies

38. Questions?