Docstoc

MFA Housing New Mexico

Document Sample
MFA Housing New Mexico Powered By Docstoc
					Welcome

  May 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

                     May 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.

                       May 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.


                       May 2012                   4
            Vision Statement

• All New Mexicans will have quality affordable
  housing opportunities




                       May 2012                   5
           Tax Code Criteria
(First - Time Home Buyer Program Requirements)


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


                    May 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.


                          May 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




                           May 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

                        May 2012                        9
          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.



                      May 2012                  10
          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




                       May 2012                         11
              MFA Guidelines
• Tax Returns (For ALL Borrowers on the loan)

    Three (3) years Tax Returns are not required
     if borrower has at least one creditor with a
     three year credit history on their credit report
    Two (2) years Tax Returns are required for all
     Self-Employed borrowers, only, unless they
     do not have a three year credit history, then
     three years of Tax Returns are required

                         May 2012                  12
            MFA Guidelines
• Minimum Credit Score of 620
   Except for manual underwrite with HFA
    Preferred Product which has a minimum of
    660
    If credit report provides 3 credit scores (tri-merge),
     then the middle credit score must be at least
     620/660 for each borrower
    If credit report only provides 2 credit scores, the
     lowest credit score must be at least 620/660 for
     each borrower
                         May 2012                          13
            MFA Guidelines
• Minimum Credit Score of 620/660
   If the credit report only provides 1 credit score
    that score must be at least a 620/660 for each
    borrower

   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
                       May 2012                       14
            MFA Guidelines
• Minimum Credit Score of 620/660
   When reserving a borrower without a credit
    score, the system will not allow you to move
    to the next screen without entering a score. A
    620 score must be entered to get to the next
    page. After the reservation is complete you
    must call MFA so that the score can be
    changed and notes added to the reservation
    screen.

                      May 2012                   15
            MFA Guidelines
• Minimum borrower cash contribution

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

   Funds must be from the borrower and
    cannot be derived from any type of gift, grant,
    pro-rated taxes or down payment.

                      May 2012                    16
            MFA Guidelines
• Minimum borrower cash contribution

   MFA requires the lender to provide proof of
    borrower’s funds

   If the borrower contributes more than $500 to
    the transaction (i.e. Earnest Money, POC
    Appraisal Fee) the borrower can get those
    funds back at closing

                      May 2012                    17
           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
    high. The principal reduction must be applied
    to the first mortgage

                     May 2012                  18
              MFA Guidelines
• Reasons for Sole and Separate

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

   One party does not have a Social Security or ITIN
    Number (Proof of no Social Security or ITIN
    number must be provided)

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

                           May 2012                            19
             MFA Guidelines
• Mandatory Homebuyer Counseling

   Effective with loans reserved on March 5, 2012 or
    after all MFA Borrowers are required to take pre-
    purchase homebuyer counseling regardless of
    program type.

     Reference Lender Memo 12-03 dated February 22,
      2012 and Clarifications Lender Memo 12-04 dated
      April 12, 2012

                        May 2012                        20
              MFA Guidelines
• Mandatory 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

         Face to Face counseling must be used for the
          Payment$aver and Helping Hand Programs (the on-line
          counseling is not acceptable for these two programs

         Borrowers preferring to go to a counselor instead of
          taking the class on-line is also acceptable OR
                            May 2012                             21
               MFA Guidelines
• Mandatory Homebuyer Counseling
   Pre-purchase homebuyer counseling
       Through the eHome America on-line Housing counseling
        program
           Borrowers may take the course together (married or
            unmarried) for the fee of $45 paid at the time of registration.
            When registering type both first names [example: Joe and
            Judy] in the first name field and type both last names in the
            last name field, both names will print on the certificate of
            completion.

           The $45 fee can be reimbursed at closing and included with
            the closing costs included in the second mortgage loan


                                May 2012                                      22
             MFA Guidelines
• Mandatory Homebuyer Counseling
   Pre-purchase homebuyer counseling

     Link to the eHome America site is on the MFA Home
      Page




                        May 2012                          23
Questions?


    May 2012   24
       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



                         May 2012                        25
         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
           3.5% Grant is based on the final loan amount

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



                               May 2012                         26
    HFA Preferred Loan Program
          Special Housing Finance Agency Conventional Loan Product

Parameters                 Program Requirements
Pricing Terms              •   0.00% Loan Level Pricing Adjustment (LLPA)
Adverse Market Delivery    •   0.25%
Charge
Eligible Products          •   30 year, fixed rate, fully amortizing
Eligible Occupancy         •   Owner Occupied
Eligible Purpose           •   Purchase transaction
Desktop Underwriter (DU)   •   HFA Preferred is available through DU using the
                               “Additional Data” screen; select “HFA Preferred”.
                               Approve/Eligible and EA-1/Eligible required

                           •   Qualifying ratios, reserves and income requirements are
                               determined by DU




                                        May 2012                                     27
    HFA Preferred Loan Program
          Special Housing Finance Agency Conventional Loan Product

Parameters                  Program Requirements
Manual Underwriting         •   Allowed
                            •   Alternate Credit allowed with 95% LTV/ 105% CLTV
Maximum LTV/CLTV            •   One Unit: 97% / 105%
Minimum Borrower            •   $500; borrowers own funds
Contribution
Subordinate Financing       • Community Seconds only
                            (Mortgage Booster, Payment$aver or Helping Hand)
Eligible Property Types     •   Single Family Dwelling
                            •   Planned Unit Development (PUD)
                            •   Approved Condo’s
                            •   No Manufactured Housing
                            •   No Co-Op’s
Minimum Credit Score        •   Per DU or 660 with manual underwrite
                          NOTE: Maximum CLTV Subject to MI

                                       May 2012                                    28
    HFA Preferred Loan Program
           Special Housing Finance Agency Conventional Loan Product

Parameters                  Program Requirements
Income Limits               •   Mortgage$aver Income Limits
Acquisition Cost Limits     •   Mortgage$aver Acquisition Cost Limits
Mortgage Insurance          •   18% for LTV’s > 95% and <= 97%
Requirements                •   16% for LTV’s > 90% and <= 95%
                            •   12% for LTV’s > 85% and <= 90%
                            •   06% for LTV’s > 80% and <= 85%
Alternative Credit          •   Acceptable
                            •   Max LTV/CLTV – 95%/ 105%
                                  CLTV Subject to MI
Reserves                    •   Non required
Qualifying Ratios           •   Per DU or max debt-to-income (DTI) ratio of 45% with
                                manual underwriting
                          NOTE: Maximum CLTV Subject to MI


                                        May 2012                                       29
    HFA Preferred Loan Program
          Special Housing Finance Agency Conventional Loan Product


Parameters               Program Requirements
Interested Party         •   3% Maximum for CLTV greater than 90%
Contributions            •   6% Maximum for CLTV less than or equal to 90%
Homebuyer Education      •   Required
                         •   eHome America on-line or HUD approved face-to-face
Special Feature Code     •   SFC 358 should be used to identify all HFA Preferred
(SFC)                        loans
                         •   SFC 088 should also be used along with SFC 358 to
                             identify HFA Preferred loans that will be delivered as a
                             Mortgage Revenue Bond (MRB) loan within a Mortgage
                             Backed Security (MBS)
NOTE: See US Bank and Genworth Mortgage Insurance Power Point Presentations
posted on MFA Website under lender training for additional information.




                                     May 2012                                       30
     Mortgage$aver Programs

               Current Rates
• Mortgage$aver (1 + 1)
   Can be used with DPA loan


   Government                    -   3.750%

   HFA Preferred Conventional    -   3.875%


                       May 2012                31
     Mortgage$aver Programs

               Current Rates
• Mortgage$aver Zero (0 + 0)
   Can be used with DPA loan


   Government                    -   4.500%

   HFA Preferred Conventional    -   4.625%


                       May 2012                32
     Mortgage$aver Programs

                Current Rates
• Mortgage$aver Plus (0 + 0)
   Borrower receives 3.5% grant at time of closing


   Government                         -      5.000%

   HFA Preferred Conventional         -      5.125%


                         May 2012                      33
                             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



                                         May 2012                              34
                      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

                                  May 2012                                 35
        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

                           May 2012                       36
        Acquisition Cost Limits
          (Targeted Areas)
(Mortgage$aver and Mortgage Booster Programs)

 All areas of the                 $ 298,155
       state




                    May 2012                  37
  Second Mortgage Programs
• Mortgage Booster – 6.00%,

• Payment$aver Loan – 0.00%,

• Helping Hand Loan – 0.00%,



                  May 2012     38
           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%)


                       May 2012                       39
         Mortgage Booster
• Lender may charge a $100 origination fee
  for the Mortgage Booster loan




                   May 2012              40
    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
   Lender must re-disclose per RESPA
    guidelines
   NOTE: The Payment$aver and Helping Hand
    programs are exempt because they are
    0.00% non amortizing loans
                    May 2012                41
 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



                      May 2012                 42
 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

                       May 2012                    43
 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



                 May 2012               44
  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


                         May 2012                      45
   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

                      May 2012                      46
   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



                      May 2012                   47
                             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/
                       30,380   34,720    39,060   43,330   46,830   50,330   53,760   57,260
Valencia/Torrance
Counties

Santa Fe MSA and
                       38,500   44,000    49,500   54,950   59,350   63,750   68,150   72,550
Los Alamos County
Farmington MSA
                       31,650   36,200    40,700   45,200   48,850   52,450   56,050   59,700
San Juan County
Las Cruces MSA
                       26,750   30,550    34,350   38,150   41,250   44,300   47,350   50,400
Doña Ana County
Colfax                 29,650   33,850    38,100   42,300   45,700   49,100   52,500   55,850
Eddy                   32,400   37,000    41,650   46,250   49,950   53,650   57,350   61,050
Harding                27,400   31,300    35,200   39,100   42,250   45,400   48,500   51,650
Lea                    27,550   31,500    35,450   39,350   42,500   45,650   48,800   51,950
Lincoln                31,750   36,300    40,850   45,350   49,000   52,650   56,250   59,900
All other counties     26,750   30,550    34,350   38,150   41,250   44,300   47,350   50,400




                                             May 2012                                           48
  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

                      May 2012                    49
  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



                      May 2012                  50
              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


                      May 2012                      51
              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)


                      May 2012                   52
                             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/
                       34,650   39,600    44,550   49,500   53,500   57,450   61,400   65,350
Valencia/Torrance
Counties

Santa Fe MSA and
                       38,500   44,000    49,500   54,950   59,350   63,750   68,150   72,550
Los Alamos County
Farmington MSA
                       31,650   36,200    40,700   45,200   48,850   52,450   56,050   59,700
San Juan County
Las Cruces MSA
                       26,750   30,550    34,350   38,150   41,250   44,300   47,350   50,400
Doña Ana County
Colfax                 29,650   33,850    38,100   42,300   45,700   49,100   52,500   55,850
Eddy                   32,400   37,000    41,650   46,250   49,950   53,650   57,350   61,050
Harding                27,400   31,300    35,200   39,100   42,250   45,400   48,500   51,650
Lea                    27,550   31,500    35,450   39,350   42,500   45,650   48,800   51,950
Lincoln                31,750   36,300    40,850   45,350   49,000   52,650   56,250   59,900
All other counties     26,750   30,550    34,350   38,150   41,250   44,300   47,350   50,400




                                             May 2012                                           53
             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

                      May 2012                    54
        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$aver Program,
       However, the Mortgage$aver Limits must be used **
                             May 2012                           55
        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
                               May 2012                               56
           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)


                            May 2012                               57
                 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)

                           May 2012                       58
         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

                    May 2012                   59
          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.

                       May 2012                         60
Questions?


    May 2012   61
         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.
   Lender should notify MFA of staff changes (additions
    or deletions); if a new password is needed a manager
    must e-mail a member of the Homeownership
    Department requesting password.

                         May 2012                         62
         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.

                       May 2012                    63
        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.



                     May 2012                  64
        Reservation Process
• Clock starts ticking from the date of
  reservation

   45 days to submit compliance package

   75 days to submit closed loan package




                     May 2012               65
        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

                      May 2012                  66
        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


                      May 2012                     67
     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



                    May 2012                   68
   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

                       May 2012                         69
      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.


                        May 2012                     70
     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.

                        May 2012                          71
     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


                     May 2012             72
     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



                        May 2012                     73
   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



                     May 2012                  74
        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


                        May 2012                  75
      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.


                        May 2012                       76
      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.




                      May 2012                      77
     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



                              May 2012                    78
       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)

                         May 2012                      79
   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

                           May 2012                     80
   Payment$aver & Helping Hand
             Compliance Guidelines
• Homebuyer Counseling is required by
  MFA Approved Housing Counseling
  Agency (8 hour class)
• Non-Profit Agency providing the
  counseling will provide the lender with the
  following completed forms:
      Completion Certificate
      Completed Environmental Review Record
      Completed Set-up Report
      Request for Reimbursement
                       May 2012                 81
   Payment$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)

                                 May 2012                                   82
  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)

                         May 2012                         83
   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)




                       May 2012              84
  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



                         May 2012                      85
Questions?


    May 2012   86
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)



                         May 2012                       87
   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



                       May 2012                    88
   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.




                    May 2012                89
     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

                             May 2012                               90
    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



                     May 2012                    91
      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



                      May 2012             92
      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.

                      May 2012                     93
    Closed Loan File Delivery
• Be sure to include pre-close TIL along with
  final TIL

   Loan must comply according to RESPA rules




                    May 2012                    94
      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



                     May 2012                95
           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


                       May 2012                   96
           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.




                      May 2012                   97
       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



                      May 2012                  98
 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.




                  May 2012             99
 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

                       May 2012                   100
     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

                     May 2012                    101
Be sure to carefully follow all checklists and
guidelines

               REMEMBER…

A complete package = a smooth transaction



                     May 2012                102
• All MFA forms are available on our
  website

   Choose Lender/Realtor

      Program Manual/Forms

     Other Lender Resources for Power Point
      Presentations and additional information regarding
      the HFA Preferred Loan Product


                        May 2012                      103
            MFA Information
• Contact us …
     www.housingnm.org
     Program Fact Sheets
     Newsletter
     Housing Services Directory
     Annual Report
     Homeownership Department at 505-843-6881
      or 1-800-444-6880

                     May 2012               104
• 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


                            May 2012                105
Questions?


    May 2012   106
Thank you from all of
  us at the MFA for
 your participation in
    our programs
         May 2012    107

				
DOCUMENT INFO
Categories:
Tags:
Stats:
views:6
posted:5/29/2012
language:Latin
pages:107