PENNSYLVANIA HOUSING FINANCE AGENCY
Homeownership Programs Division
211 North Front Street, P.O. Box 8029, Harrisburg, Pennsylvania 17105-8029
717.780.3871 1.800.822.1174 FAX 717.780.3872 www.phfa.org
3rd QUARTER PROGRAMS UPDATE
QUICK LINKS TO UPDATED FORMS: Appendix A, Appendix B, Form 54, Form 54TC
1. REGISTRATION NOW OPEN!! The “Reconnect with PHFA” tour will soon be coming to a town near
you. These are great sessions for PHFA newcomers and pros alike. There have been many updates and
several new programs added to our line of homeownership products so you don’t want to miss this. Dates
and times are below and you can register online at www.phfa.org (see “Conferences and Training” under the
“Current Events” section on our home page). We anticipate a full day with lunch included so mark your
Mars, PA King of Prussia, PA Williamsport, PA Mechanicsburg, PA
Wed., Sept. 9 Wed., Sept. 16 Tues., Sept. 22 Thurs., Sept. 24
Four Points by Sheraton Radisson Hotel & Suites The Genetti Hotel & Suites Holiday Inn Harrisburg-
910 Sheraton Drive 1160 First Avenue 200 West Fourth Street West, 5401 Carlisle Pike
2. Please continue to use the current Keystone Home Loan and Keystone Home Loan PLUS brochures but
remember to use the new, increased income limits from Appendices A & B. New brochures are currently
being developed to include the new limits as well as the new K-Gov Program; they will be distributed as
soon as possible. Thanks for your patience.
1. Life of Loan Flood Certifications. Effective for loans received on or after September 1, 2009, a Life of
Loan Flood Certification will be required to be submitted in the underwriting package in order to be
approved. If it conflicts with the flood information on the appraisal, please follow the procedures referenced
in Chapter 4, Section 402.3 of the PHFA Sellers Guide and provide the necessary documentation in order to
proceed to loan approval. Underwriting packages without the certification or with conflicting information
and no explanation will be suspended.
2. Market Condition Addendum to Appraisal (Fannie Mae Form 1004MC). PHFA has adopted the use of
the MC Appraisal Addendum on all loans.
3. Home Valuation Code of Conduct (HVCC). PHFA has adopted the HVCC for all Conventional loans. It
does not apply to government insured/guaranteed loans at this time, but keep in mind that if FHA, RD
and/or VA decide to follow it, then it would also apply to PHFA funded government loans.
4. Reminder on Revised TILA Disclosure Requirements. Lenders are required to ensure all loan
applications taken on and after 7/30/2009 comply with the new requirements.
5. Non-Occupying Co-borrowers. PHFA will accept the use of Non-Occupying Co-Borrowers on FHA loans
under the Keystone Government Program (KGov) only. In addition to the non-occupying co-borrower’s
information being in the underwriting file, lenders will be responsible to complete their address information
on the purchase package checklist (Form 58, page 4 under section 22).
6. Clarification on Tax Credit Advance Loan Program. All borrowers, including non-occupying co-
borrowers (under the KGov program) must be first time home buyers in order to apply.
7. Keystone Government Loans (KGov). Just a reminder that these are not Mortgage Revenue Bond loans
and it is not necessary to have the borrower and/or seller sign a Mortgagor’s Affidavit, Seller’s affidavit,
Mortgagor’s Reaffirmation or Recapture Notice.
CLOSING AND POST CLOSING
1. Clarification on Tax Credit Advance Truth in Lending & Note (Form 54TC). The Annual Percentage
Rate in the Truth in Lending (TIL) section should list the same interest rate that is on the primary note, not
zero. The finance charge is the total of the payments minus the amount financed. The amount financed is
the actual loan amount and the total of payments is 120 times the monthly payment amount. Please advise
all appropriate staff to make sure this top TIL Section is completed before sending it to closing to be
2. Revised Subordinate Notes. Form 54 (Subordinate Note and TIL for the Keystone Assistance Loan and
Keystone Government Assistance Loan) and Form 54TC (Subordinate Note and TIL for the Tax Credit
Advance Loan Program) have been revised to indicate that they may be assumable along with the first
mortgage by eligible qualified buyers at PHFA’s discretion.
Kate Newton Dona Palmer Fred Fegan Tammy Miller Karen Zapotosky
Homeownership Programs Business Development Purchasing Manager Compliance Manager Post Purchase Manager
(717) 780-3891 (717) 780-3908 (717) 780-1825 (717) 780-3884 (717) 780-3873
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