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MFA Housing New Mexico

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					Welcome

  March 12, 2012   1
        Homeownership Staff
•   Erik Nore, Director of Homeownership
•   Anita Racicot, Homeownership Specialist
•   Cynthia Marquez, Lending Specialist
•   Lisa Romero, Lending Specialist
•   Barbara Tashkandy, Lending Coordinator
•   Teri Baca, Representative
•   Eunice Duran, Representative

                    March 12, 2012            2
              MFA Mandate
• In 1975 the New Mexico state legislature created
  the New Mexico Mortgage Finance Authority
  (MFA), a public body politic and corporate,
  separate and apart from the state, constituting a
  governmental instrumentality, with the power to
  raise funds from private investors in order to
  make such private funds available to finance the
  acquisition, construction, rehabilitation and
  improvement of residential housing for persons
  and families of low or moderate income within
  the state.

                     March 12, 2012               3
          Mission Statement

• MFA provides innovative policies, products,
  education, and services in collaboration with
  strategic partners to ensure that all New
  Mexicans have access to affordable housing.
  We engage in self-sustaining practices to
  strengthen      the    social   and     economic
  development of New Mexico’s communities and
  families by financing, developing, and preserving
  homes.


                     March 12, 2012               4
            Vision Statement

• All New Mexicans will have quality affordable
  housing opportunities




                     March 12, 2012               5
           Tax Code Criteria
(First - Time Home Buyer Program Requirements)


•   First -Time Home Buyer
•   Income Limits
•   Acquisition Cost Limits
•   Owner Occupied
•   Single Family Residence


                   March 12, 2012            6
            Tax Code Criteria
• First -Time Home Buyer
   Definition
     Borrowers are purchasing first home
     Borrowers have not owned a home as their
      primary residence for a full three (3) years.
     Borrower has not lived with an ex-spouse that
      owned the property as his/her sole and separate
      property prior to the marriage for a full three years.


                        March 12, 2012                     7
            Tax Code Criteria
• First -Time Home Buyer - Waiver
   Veterans
     Veterans do not need to be first time home buyers
        Do not need to use a VA loan, can use any loan product

        Lender should place proof the borrower is a veteran in
         the compliance package




                         March 12, 2012                           8
          Tax Code Criteria
• Owner Occupied

   Borrowers must occupy the property as their
    primary residence

   Six (6) month rule for owner occupancy

    Borrowers may not rent the property within the first
     six (6) months of occupancy without the
     permission of MFA’s Board of Directors

                      March 12, 2012                    9
          Tax Code Criteria
• Owner Occupied (continued)

   Non-occupying co-signer(s) allowed
    not non- occupying co-borrower(s)

    Co-signer(s) must sign Note for first and second
     mortgages, but won’t take title to property




                      March 12, 2012                    10
          Tax Code Criteria
• Single Family Residence

   One Kitchen, no rental units

   Tax code restriction on business use of
    property less than or equal to 15% of the
    home.



                    March 12, 2012              11
            MFA Guidelines
• Minimum Credit Score of 620

   If credit report provides 3 credit scores (tri-
    merge), then the middle credit score must be
    at least 620 for each borrower

   If credit report only provides 2 credit scores,
    the lowest credit score must be at least 620
    for each borrower
                      March 12, 2012                  12
            MFA Guidelines
• Minimum Credit Score of 620

   If either borrower has no credit score, due to
    insufficient or stale credit, MFA will accept a
    manually underwritten loan. In addition, the
    loan must be underwritten to applicable
    secondary market guidelines



                     March 12, 2012                   13
            MFA Guidelines
• Minimum borrower cash contribution

   MFA requires a minimum borrower cash
    contribution of $500.00, regardless of loan
    type.

   Funds must be from the borrower and
    cannot be derived from any type of gift, grant,
    pro-rated taxes or down payment.
                     March 12, 2012               14
              MFA Guidelines
• Reasons for Sole and Separate

   Spouse is not able to enter into a contract (i.e. not of
    legal age)

   Spouse does not have a Social Security Number
    (Lender Must Prove)

  ** All household income needs to be counted toward
     income eligibility **

                         March 12, 2012                        15
               MFA Guidelines
• Homebuyer Counseling

  •   Effective with loans reserved on March 5, 2012 or
      after all MFA Borrowers are required to take pre-
      purchase homebuyer counseling.
      •   Reference Lender Memo 12-03 dated February 22, 2012




                          March 12, 2012                        16
                MFA Guidelines
• Homebuyer Counseling
  •   The pre-purchase homebuyer counseling will be
      either:
      •   Face to Face pre-purchase housing counseling provided in
          either a classroom or one-on-one setting by a HUD
          approved housing counseling agency, OR

      •   Through the eHome America on-line Housing counseling
          program (link on the Home Page of the MFA website)




                           March 12, 2012                        17
                MFA Guidelines
• Homebuyer Counseling

  •   All loans are required to receive pre-purchase
      homebuyer counseling from either of these two
      approved sources

      •   However, if borrower is receiving a Payment$aver or
          Helping Hand second loan, the counseling must be taken in
          person (face to face) from an MFA approved Housing
          Counseling Agency


                           March 12, 2012                        18
                MFA Guidelines
• Homebuyer Counseling

  •   When the counseling is taken through e-Home
      America on-line; the cost of the program is $45, paid
      at the time the course is taken.

      •   The $45 can be credited towards the $500 out-of-pocket
          requirement or it can be reimbursed at closing with down
          payment assistance.



                            March 12, 2012                           19
                             Income Limits
               (Mortgage$aver and Mortgage Booster Programs)

                                  1 or 2 Person Household   3 or More Person
                                                               Household

Albuquerque MSA                          $ 61,000              $ 70,150
(Bernalillo, Sandoval, Valencia
& Torrance Counties)

Santa Fe MSA and Los                     $ 67,800               77,970
Alamos County
Farmington MSA                           $56,200                $64,630

All other areas of the                   $53,800                $61,870
state



                                       March 12, 2012                          20
                      Income Limits
                       (Targeted Areas)
           (Mortgage$aver and Mortgage Booster Programs)
                           1 or 2 Person Household      3 or More Person
                                                           Household

Bernalillo and Sandoval           $ 73,200                     $ 85,400
Counties census tracts


San Juan County census            $67,440                      $78,680
        tracts

 All other census tracts          $ 64,560                     $ 75,320


                 See county and census tracts of fact sheets
                  Maps available at www.housingnm.org

                                March 12, 2012                             21
        Acquisition Cost Limits
        (Mortgage$aver and Mortgage Booster Programs)



Los Alamos County                             $ 342,555


Santa Fe County                                $384,750


San Juan County                               $ 253,125


All other areas of                            $ 243,945
     the state

                         March 12, 2012                   22
        Acquisition Cost Limits
          (Targeted Areas)
(Mortgage$aver and Mortgage Booster Programs)

 All areas of the                    $ 298,155
       state




                    March 12, 2012               23
       Overview of Programs
• Continuous Lending Program

   Funds are always available for reservation

   MFA will periodically “re-price” the Mortgage$aver
    Program, based on market conditions

   Funds are available statewide



                       March 12, 2012                    24
         Overview of Programs
• May use FHA, VA, Conv, USDA [RHS], Section 184
  Indian Housing (Section 184)
    1st Mortgage Options
       Mortgage$aver, Mortgage$aver Zero, Mortgage$aver Plus

    DPA Options
       3.5% Grant (Mortgage$aver Plus), Mortgage Booster,
        Payment$aver, SmartChoice and Helping Hand


• HERO (No Funds Available At This Time)
    1st Mortgage and DPA



                            March 12, 2012                      25
     Mortgage$aver Programs

              Current Rates
• Mortgage$aver – 3.750% (1 + 1 – can be used
  with DPA loan)

• Mortgage$aver Zero – 4.50% (0 + 0 – can be
  used with DPA loan)

• Mortgage$aver Plus – 5.00% ( 0 + 0 – borrower
  receives 3.5% grant at time of closing)

                    March 12, 2012              26
  Second Mortgage Programs
• Mortgage Booster – 6.00%,

• Payment$aver Loan – 0.00%,

• Helping Hand Loan – 0.00%,



                 March 12, 2012   27
           Mortgage Booster
• Use with Mortgage$aver OR Mortgage$aver
  Zero with FHA, Conv, RHS, or Section 184(not
  allowed with VA)

• Maximum loan amount of $8,000 (must follow
  loan guidelines for CLTV)

• 30 year amortization, low fixed rate (i.e. 6.00%)


                      March 12, 2012                  28
         Mortgage Booster
• Lender may charge a $100 origination fee
  for the Mortgage Booster loan




                  March 12, 2012         29
    Second Mortgage RESPA
• Lender must provide a Truth in Lending
  (TIL) Statement and Good Faith Estimate
  (GFE) to the borrower for ALL Second
  Mortgage loan types

   Lender must re-disclose per RESPA
    guidelines



                   March 12, 2012           30
 Second Mortgage Allowable Fees
Origination Fee (Mortgage Booster    $100
and HERO DPA [when available])
Recording Fee (DPA Mortgages)        Actual Cost

Title Insurance Fees (not Settlement Actual Cost
Fees) for DPA loans
Daily Interest Charges               Actual Cost



                    March 12, 2012             31
 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

• Variances on the allowable TIL tolerances will
  require re-disclosure and will trigger the
  mandatory MDIA “cooling off” period

                      March 12, 2012               32
 Second Mortgage Allowable Fees


• No other fees may be charged in
  conjunction with the origination,
  processing and settlement of an MFA
  second mortgage Down Payment
  Assistance loan



                March 12, 2012          33
  Use of Down Payment Funds
• Use of funds are limited to cover the minimum down
  payment and allowable closing costs associated
  with the particular loan program


• Principal Reductions
   Case by case – MFA will allow a principal
    reduction of up to $100
   Principal Reduction MUST be applied to the first
    mortgage loan


                         March 12, 2012                34
   Payment$aver/SmartChoice
• With Mortgage$aver or Mortgage$aver Zero

• Maximum loan amount is 8% of the sales price
  OR $8,000 which ever is less

• SmartChoice Program – Borrower must be in
  possession of a Section 8 Housing Voucher.
  Loan amount is $15,000, no more and no less

• 0% non-amortizing loan due on sale, transfer or
  refinance

                     March 12, 2012                 35
   Payment$aver/SmartChoice
• Borrower may finance down payment, temporary
  buydowns, closing costs (excluding pre-paids)

• Income limits vary by county and household size

• Eight hour Housing Counseling class required
  by MFA approved Housing Counseling Agency



                    March 12, 2012               36
                         Income Limits
                                      Payment$aver
       MSA or                   Number of People in the Household
       County            1        2         3        4        5        6        7        8
Albuquerque MSA
Bernalillo/Sandoval/
                       29,890   34,160    38,480   42,700   46,130   49,560   52,990   56,420
Valencia/Torrance
Counties

Santa Fe MSA and
                       38,000   43,400    48,850   54,250   58,600   62,950   67,300   71,650
Los Alamos County

Farmington MSA
                       30,200   34,500    38,800   43,100   46,550   50,000   53,450   56,900
San Juan County

Las Cruces MSA
                       26,400   30,150    33,900   37,650   40,700   43,700   46,700   49,700
Doña Ana County

Colfax                 28,950   33,050    37,200   41,300   44,650   47,950   51,250   54,550
Eddy                   30,900   35,300    39,700   44,100   47,650   51,200   54,700   58,250
Harding                27,000   30,850    34,700   38,550   41,650   44,750   47,850   50,900
Lea                    27,250   31,150    35,050   38,900   42,050   45,150   48,250   51,350
Lincoln                31,300   35,800    40,250   44,700   48,300   51,900   55,450   59,050

All other counties     26,400   30,150    33,900   37,650   40,700   43,700   46,700   49,700



                                         March 12, 2012                                         37
  Payment$aver/SmartChoice
• Available Statewide
   Except in the City Limits of Albuquerque

• Forgiveness Terms
   Original principal amount of loan is from $1 to
    $8,000, the principal amount shall be reduced
    at a rate of 20% per year for 5 years
    beginning on the 6th anniversary date of the
    Note

                     March 12, 2012               38
  Payment$aver/SmartChoice
• Forgiveness Terms (continued)

   Original principal amount of loan is $15,000,
    (SmartChoice Program) the principal amount
    shall be reduced at a rate of 20% per year for
    5 years beginning on the 11th anniversary
    date of the Note



                    March 12, 2012              39
              Helping Hand
• One person in the household meets the ADA
  definition of disabled

• With Mortgage$aver or Mortgage$aver Zero

• Loan amount is $8,000, no more and no less

• 0% non-amortizing loan due on sale, transfer or
  refinance


                     March 12, 2012                 40
              Helping Hand
• Borrower may finance down payment, temporary
  buydowns, closing costs (including pre-paids)

• Income limits vary by county and household size

• Eight hour Housing Counseling class required
  by MFA approved Housing Counseling Agency
  (Suggested agency is ILRC/Housing
  Division)


                    March 12, 2012               41
                             Income Limits
                                         Helping Hand
       MSA or                   Number of People in the Household
       County            1        2         3        4        5        6        7        8
Albuquerque MSA
Bernalillo/Sandoval/
                       34,200   39,050    43,950   48,800   52,750   56,650   60,550   64,450
Valencia/Torrance
Counties

Santa Fe MSA and
                       38,000   43,400    48,850   54,250   58,600   62,950   67,300   71,650
Los Alamos County
Farmington MSA
                       30,200   34,500    38,800   43,100   46,550   50,000   53,450   56,900
San Juan County
Las Cruces MSA
                       26,400   30,150    33,900   37,650   40,700   43,700   46,700   49,700
Doña Ana County
Colfax                 28,950   33,050    37,200   41,300   44,650   47,950   51,250   54,550
Eddy                   30,900   35,300    39,700   44,100   47,650   51,200   54,700   58,250
Harding                27,000   30,850    34,700   38,550   41,650   44,750   47,850   50,900
Lea                    27,250   31,150    35,050   38,900   42,050   45,150   48,250   51,350
Lincoln                31,300   35,800    40,250   44,700   48,300   51,900   55,450   59,050
All other counties     26,400   30,150    33,900   37,650   40,700   43,700   46,700   49,700




                                          March 12, 2012                                        42
             Helping Hand
• Available Statewide
   Including in the City Limits of Albuquerque

• Forgiveness Terms

   Original principal amount of loan is $8,000,
    the principal amount shall be reduced at a
    rate of 20% per year for 5 years beginning on
    the 6th anniversary date of the Note

                    March 12, 2012                43
        Acquisition Cost Limits
                Payment$aver and Helping Hand

Los Alamos County                                $ 380,650

Santa Fe County                                  $ 427,500

San Juan County                                   $281,250

All other areas of                               $ 271,050
     the state
    **Please note that the Acquisition Cost Limits are higher
                than the Mortgage$aver Program,
          but the Mortgage$aver Limits must be used **
                           March 12, 2012                       44
        What Goes With What
 DPA Options       3.5%      Mortgage          Pmt$aver      Helping

    ►             GRANT      Booster           (Low inc.)     Hand
                                                             (Low Inc.)
                   Use w/    Maximum           8% of sales
                  FHA, VA,     loan            price, max    (ADA elig)
1st Mortgage                 amount of             $8,000      $8,000
                   USDA
  Options                     $8,000          SmartChoice
                   [RHS],

    ▼              CONV       Use w/
                             FHA, RHS,
                                                (Section 8
                                                 Voucher)
                                                               Use
                                                              w/FHA,
                              CONV,               $15,000      RHS,
                              Section         Use w/ FHA,     CONV,
                                184           RHS, CONV,      Section
                                              Section 184       184
Mortgage$aver
   (1+1)           No         Yes                Yes          Yes
Mortgage$aver
 Zero ( 0 + 0 )    No         Yes                Yes          Yes
Mortgage$aver
 Plus ( 0 + 0 )    Yes         No                No            No
                             March 12, 2012                               45
           HOW TO COMBINE
                                      Choose 1st        Choose 2nd
Consider income level of
  borrower                                  ▼                ▼
                                      Mortgage$aver    Mortgage Booster,
                                          (1+1)         *Payment$aver,
                                                         SmartChoice,
                                                         Helping Hand
*Note: (Very low income
  borrowers may qualify for a         Mortgage$aver    Mortgage Booster,
  Federally-funded DPA                     Zero         *Payment$aver,
  program such as Payment-                               SmartChoice,
  $aver, SmartChoice or                                  Helping Hand
  Helping Hand)                       Mortgage$aver     NO 2nd allowed
                                            Plus
                                       ( 3.5% Grant)


                           March 12, 2012                             46
                 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)

                         March 12, 2012                   47
         Servicing of Loans
• Master Servicer (US Bank) will service all
  First Mortgage loan products

• MFA will service all Second Mortgage loan
  products

• Borrower will receive two coupons

                   March 12, 2012              48
          Servicing of Loans
• Subordination Guidelines
   MFA will subordinate on a case by case basis
    as long as the refinance is for the benefit of
    the borrower and the borrower does not
    receive any cash back.

     Guidelines are posted on MFA’s website
     Call MFA’s Servicing Department to determine if
      borrower may be eligible.

                      March 12, 2012                    49
        Reservation Process
• Lender accesses reservation system on
  MFA secure website with password

   There is no limit to the number of passwords
    issued to the lender – each person who
    reserves loans should have their own
    password.



                    March 12, 2012                 50
         Reservation Process
• Lender enters information for both 1st and 2nd
  mortgages
• Lender will print Agreements
   MBS Agreement (First Mortgage)
   Mortgage Purchase Agreement [MPA] (Second
    Mortgage)

• Please do not hesitate to contact MFA if
  there are technical difficulties with entering
  the reservation as this will eliminate any
  problems in the future with the reservation.

                     March 12, 2012                51
        Reservation Process
• Loans reserved under a particular
  allocation and interest rate will not be
  changed.

   Lenders must carefully consider the loan
    structure the borrower needs prior to
    reserving the loan.



                   March 12, 2012              52
        Reservation Process
• Clock starts ticking from the date of
  reservation

   45 days to submit compliance package

   75 days to submit closed loan package




                   March 12, 2012           53
        Reservation Process
• Watch Pipeline

   Extension and cancellation policy will be
    strictly enforced


   First mortgage loans must be Underwriter
    Certified and second mortgages must be
    delivered to MFA by the 45 day date

                     March 12, 2012             54
        Reservation Process
• Watch Pipeline
   Contact MFA in regards to loans that need to
    be cancelled (Lender can go on-line and
    cancel loan or call MFA)
   OR
   If the delivery dates cannot be met
     ONLY MFA can grant extensions


                     March 12, 2012                55
     Compliance File Delivery
• Compliance Files must be delivered to
  MFA (2nd Mortgage) or Underwriter
  Certified with E-Housing (1st Mortgage)
  prior to the expiration date (45 days from
  the date of reservation) or Lender will
  need to contact MFA for an extension



                   March 12, 2012              56
   Compliance File Delivery
• First Mortgage must be Underwriter Certified
  through the E-Housing website prior to the
  expiration date

• 2nd mortgage package is delivered to MFA
  prior to the expiration date (45 days from the
  date of reservation prior to closing)
    2nd mortgage may be delivered to MFA without the
     Underwriter Certification; file will be reviewed and
     suspended until received

                      March 12, 2012                    57
      Compliance File Delivery
• If file cannot be delivered prior to expiration date
    Lender should contact MFA and a 2 week
      extension will be granted at no charge
         A letter will be sent to lender that should be
          placed in the file when it is delivered in
          order that no additional fees are charged.
    If additional time is needed then the lender
      will be charged a fee of $100 per week.


                        March 12, 2012                 58
     Compliance File Delivery
• Turn times for review – contract states
  files are to be reviewed within 3 business
  days of receipt

   Typically files are reviewed within 2 business
    days of receipt or sooner.

     Please do not call the same day the file is
      delivered or the following day as this slows down
      the process.

                       March 12, 2012                     59
     Compliance File Delivery
• Use most current check list and forms
  from MFA’s web site

• Two hole punch and Accofasten package
  (no paperclips)

• Do not place in file folder


                    March 12, 2012        60
     Compliance File Delivery
• Good Faith Estimate and Preliminary Truth
  in Lending (TIL) disclosure required at the
  time of Compliance (ALL Mortgages)

   Lender MUST follow RESPA Guidelines
     Re-disclose when required
     All disclosures to be sent to MFA in package



                      March 12, 2012                 61
   Compliance File Conditions
• Please send all suspense conditions at
  once – this will speed up the process.

• Loan cannot be closed without approval
  from both the Master Servicer and MFA
   Underwriter Certification from E-Housing
   Compliance Approval from MFA


                    March 12, 2012             62
        Compliance Guidelines
• Completing the FHA Loan Underwriting and
  Transmittal Summary when there is a second
  mortgage

     MFA’s EIN# must be completed – 85-0252748
     Check the Government box
     Enter 2nd mortgage loan amount
     2nd mortgage is not a gift
     If using CHUMS ID # as ZFHA make sure DU
      Findings are attached


                       March 12, 2012             63
      Compliance Guidelines
• Three (3) years Federal Income Tax
  Returns

   ONLY required if Borrowers’ Credit Report(s)
    DO NOT reflect at least a 3 year trade history

     For ALL Borrowers on the loan



                     March 12, 2012              64
      Compliance Guidelines
• Income Calculation

   ALL Household income is considered

   Example: John Doe is purchasing home and
   is not married. John Doe qualifies for home
   on his own, however his girlfriend lives with
   him and will not be on title. The girlfriends
   income must be counted toward household
   income according to Tax Code.
                    March 12, 2012             65
      Compliance Guidelines
• Income Calculation

   Common mistake with the current pay stub

     The date that MUST be within 30 days of
     submitting the package is the pay period paid
     through date NOT the check date or the pay date.




                     March 12, 2012                 66
     Compliance Guidelines
Verification of Employment Income
Monthly gross income includes, but is not limited to:
Monthly gross pay             Interest and dividends
(wages, salary, tips, etc.)
Overtime                      SSI
Part-time                     Disability income
Bonuses                       Child Support
Business income               Alimony
VA Compensation               Rental income
Other income



                        March 12, 2012                  67
       Compliance Guidelines
• Loan Break Down Form

   Preliminary Loan Break Down Form to be completed
    at the time of submitting the Compliance Package
    (This is an estimate of the down payment and closing
    costs)

   Final Loan Break Down Form to be completed at the
    time of submitting the Delivery Package (This is the
    actual down payment and closing costs that match
    the settlement statement)

                       March 12, 2012                  68
   Payment$aver & Helping Hand
               Compliance Guidelines
• Borrower is not allowed to have more than 6
  months income in the bank as cash assets at the
  time of closing
• If liquid assets exceed $5,000 an asset test is
  required to performed per the following example:
   Borrower has $20,000 in liquid assets
      $20,000 × 2% = $400.00
      $400.00 ÷ 12 (months) = 33.33

   $33.33 will be added to borrower’s monthly income

                         March 12, 2012                 69
   Payment$aver & Helping Hand
             Compliance Guidelines
• Homebuyer is required by MFA Approved
  Housing Counseling Agency (8 hour class)
• Non-Profit Agency providing the
  counseling will provide the lender with the
  following completed forms:
      Completion Certificate
      Completed Environmental Review Record
      Completed Set-up Report
      Request for Reimbursement
                     March 12, 2012             70
   Payment$aver & Helping Hand
                  Compliance Guidelines
• HQS (Housing Quality Standards) Inspection is required
  if home was built prior to 1978 (no matter what type of
  loan the first mortgage is)

• HQS inspection is required for homes built after 1978 if
  loan type is Conventional (FNMA), VA or Rural Housing.
  (Except if home is a new construction or if there is
  an FHA appraisal)

• List of HQS inspectors available from MFA
    HQS Inspector will provide
       Copy of signed inspection indicating if the property failed or passed
       Request for Reimbursement(s)

                               March 12, 2012                               71
  Payment$aver & Helping Hand
              Compliance Guidelines
• Fund Use Form

   Preliminary Fund Use Form to be completed at the
    time of submitting the Compliance Package (This is
    an estimate of the down payment and closing costs)

   Final Fund Use Form to be completed at the time of
    submitting the Delivery Package (This is the actual
    down payment and closing costs that match the
    settlement statement)

                       March 12, 2012                     72
   Payment$aver & Helping Hand
               Compliance Guidelines

• Original completed, signed and dated
  Certification of Asset Form

• Certification of Status Form
  (Documentation regarding disability status
  form signed by doctor) (Required for Helping
 Hand loans)




                     March 12, 2012          73
  Payment$aver & Helping Hand
              Compliance Guidelines
• Bank Statements
   Copies of full 6 months bank statements OR
   1 printout from bank showing average balance over
    the last 6 months OR
   Written statement from bank that borrower does not
    have a 6 month history but has X months history with
    them and average balance over X months OR
   If borrower does not have a bank account an original
    signed and notarized statement will be accepted



                       March 12, 2012                  74
First Mortgage Closing Documents
• Tax Code Documents

   Affidavit of Purchaser
   Affidavit of Seller
   Notice of Potential Recapture
   Tax Exempt Financing Rider attached to the first
    mortgage (FHA or Conventional loan)
   VA Rider attached to the first mortgage (VA loan only)



                       March 12, 2012                   75
   First Mortgage Purchase from
          Master Servicer
• Mortgage$aver, Mortgage$aver Zero and
  Mortgage$aver Plus

   Master Servicer will pay appropriate Service
    Release Premium

     US Bank:   Higher of 1.69% or $750



                     March 12, 2012                76
   First Mortgage Purchase from
          Master Servicer

• Master Servicer will provide purchase
  advise for first mortgage. If there are
  questions on how the first mortgage is
  funded please contact US Bank.




                   March 12, 2012           77
     Closed Loan File Delivery

• Deliver both 1st mortgage and 2nd mortgage
  closed loan files simultaneously to Master
  Servicer and MFA.
   Deliver the First Mortgage Closed Loan Package and
    the E-Housing Compliance Package to US Bank
     • Place files in separate file folders and mark clearly, US Bank
       or E-Housing
     • US Bank will forward the E-Housing Package to them
   Deliver the Second Mortgage Closed Loan Package
    to MFA

                           March 12, 2012                           78
    Closed Loan File Delivery

• Use most current check list and forms
  from MFA’s web site

• Place file in file folder and two hole punch
  and Accofasten



                    March 12, 2012               79
      Closed Loan File Delivery
         Common mistakes

• Please make appropriate copies where
  asked on the checklist

   2 copies of Wire Instructions

   Original Note and 2 certified copies



                    March 12, 2012         80
      Closed Loan File Delivery
         Common mistakes

• Send originals or certified copies where
  asked on the checklist

• Loan Breakdown or HOME Fund Use form
  is missing
  • If this form is missing it causes additional
    review time when the form is eventually sent
    to clear condition.

                    March 12, 2012                 81
    Closed Loan File Delivery
• Be sure to include pre-close TIL along with
  final TIL

   Loan must comply according to RESPA rules




                   March 12, 2012               82
      Closed Loan Conditions
• Please send all suspense conditions at
  once – this will speed up the process.

• If loan is suspended for an original, please
  do not fax and then send the original; this
  slows the process down



                   March 12, 2012            83
           Closed Loan File
• Purchase 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



                     March 12, 2012               84
           Closed Loan File
• Purchase Pending Conditions

   Files that are not cleared of all pending
    purchase conditions will be cancelled and will
    not be purchased from the Participating
    Lender. No exceptions will be given.




                     March 12, 2012              85
       Closed Loan Approval
• Once all suspense conditions have been
  cleared MFA will send a “Clear to
  Purchase” letter to the Master Servicer
  and the Lender.

   This will let the Master Servicer know to
    purchase the first mortgage



                     March 12, 2012             86
 Second Mortgage Loan Purchase
• MFA will purchase the second mortgages
  the following Tuesday or Thursday after
  receiving the electronic data from the
  Master Servicer showing that the first
  mortgage has been purchased.




                 March 12, 2012        87
 Second Mortgage Loan Purchase
• Purchase Advices and Final Document
  request letters are e-mailed to the contact
  on the Delivery Checklist by 5:00pm on
  the day the wire will be sent.

   If this information is to go to another person or
    department, please forward internally or
    inform MFA of additional staff for our
    distribution list

                     March 12, 2012                88
     Final Document Delivery
• Final Documents for second mortgages
  are to be delivered to MFA not the Master
  Servicer

   Final Documents are due within 120 days of
    the date of purchase

   Please send the original Mortgage plus one
    (1) copy

                    March 12, 2012               89
• Be sure to carefully follow all checklists
  and guidelines

               REMEMBER…

A complete package = a smooth transaction



                    March 12, 2012             90
• All MFA forms are available on-line

   Choose Lender/Realtor

      Program Manual/Forms




                    March 12, 2012      91
• If you are not receiving notifications from MFA
  and would like to, please go to our web site

   Choose Lender/Realtor

   Join MFA E-mail Notifications

      Choose Notifications you wish to receive

   Or you can contact your representative (Teri or
    Eunice) to make sure your information is correct
    in our data base


                          March 12, 2012               92
Questions?


   March 12, 2012   93
Thank you from all of
  us at the MFA for
 your participation in
    our programs
         March 12, 2012   94

				
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