September 2010 PHFA Form 53 Pennsylvania Housing Finance A

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September 2010 PHFA Form 53 Pennsylvania Housing Finance A Powered By Docstoc
					September 2010                                                                                                        PHFA Form 53
                                      Pennsylvania Housing Finance Agency
                                        Home Loan Closing Instructions
   NOTE: All PHFA forms referenced in this document may be obtained at www.phfa.org. Feel free to call (717) 780-
   3871 for the Homeownership Programs Division with any questions.

   Lender please select type of PHFA Loan:     □ REAL □ Keystone Government □ Keystone Home Loan
This is a Pennsylvania Housing Finance Agency Bond loan. These closing instructions must be followed for the loan to
    be funded. If there is a problem with any of the instructions being satisfied, do not close the loan. The instructions
    below are in addition to the PHFA closing instruction letter.
1. Title Insurance Discount. All PHFA loans with a sales price of $200,000 or less are eligible for a charge of 75% of
    the basic rate for Title Insurance. Please note: if an owner’s and loan policy are issued simultaneously, then the
    higher policy amount cannot exceed $200,000 to qualify for the discount. For further details refer to Chapter 5 of
    the PA Title Insurance Ratings Manual, the Policies and Rates Section.
2. Certified Copies. Certify copies of the first mortgage, assignment and subordinate mortgage(s), if applicable, that
   they are true and correct copies of the originals that have been sent for recording.
3. First Payment Date. The first payment date on the Note can be one of the following: 1) the first day of the second
    month following loan closing or 2) if it is closed within the first 5 calendar days of the month it could be the first of
    the month following loan closing. (This applies to “short term interest” or “interest credit” options.)
4. Original Instant Mortgagee Residential Short Form. The long form policy is also acceptable with the
      endorsements referenced below.
    (a) A counter-signed policy is required on all PHFA loans. PHFA strongly encourages the use of the Residential
       Short Form Title Policy because there is no need to require separate 100, 300 & 8.1 Endorsements. Please also
       note if the policy references an agreement to remove minerals from the property an endorsement 1030 is required.
       When the traditional long form is used the following endorsements must be included with the policy:
         •   100 (If there are no restrictions, and an endorsement 100 is not being issued, this information must be stated
             on a signed letter to PHFA from the title agent regarding the missing endorsement 100.)
         •   300 except when a Condo or a PUD
         •   8.1 or 900 Environmental
         •   800 Condo or 801 PUD, when applicable
         •   1030 Mineral Rights endorsement. Endorsement 100 is not needed when the endorsement 1030 is purchased.
     (b) Schedule A - the date of the policy should be the date of settlement and include the following: “or the date of the
         recording, whichever is later.” This language is not needed if the policy contains a revised (6/17/06) title jacket.
         The language regarding the recording date is preprinted in the revised jacket.
    (c) Schedule A - the name insured should be the name of the lender for example, “ABC Mortgage," followed by "it
        successors and/or assigns".
    (d) There is no need to list the assignment of the mortgage on schedule A.
    (e) PHFA does not require an endorsement to reflect the recording data.
    (f) The borrower’s names should be the same on the Deed, Mortgage, Note, Assignment and Title Policy.




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 September 2010                                                                                                     PHFA Form 53



 5. PHFA Borrower Forms. The following forms must be executed at closing and notarized, if applicable, for all PHFA
    mortgage revenue bond loans:
    a. Recapture Tax Form (PHFA Form 4) (N/A on Real & Keystone Government Loans)
    b. Re-affirmation of Mortgagor’s Affidavit (PHFA Form 3, page 4) (N/A on Real & Keystone Government
    Loans)
    c. Borrowers to sign their respective name affidavits, if necessary (N/A on Real & Keystone Government Loans)
    d. Automatic Withdrawal ( PHFA Form 67), optional on all loans except for Real loans.
 6. Insurance Policies: Homeowners’ insurance must be pre-paid for a full 12 months; Homeowners’, Flood and/or
    Mine Subsidence (if applicable) must carry the following Mortgagee clause:
             Pennsylvania Housing Finance Agency, Its Successors and/or Assigns
             211 North Front Street, P.O. Box 15057, Harrisburg, PA 17105-5057
 7. Mortgage Insurance. Please follow the procedures when using these 2 types of remittances. A copy of the check
 must be included in the purchase package (refer to page 4 of form 58).
    a. Monthly – forward 2 months of premiums to the MI Company
    b. FHA MIP Premiums - do not remit any monthly premiums to FHA. Please continue to forward the UPFRONT
       Premiums to FHA.
 8. Outstanding Taxes. All taxes that are due and payable must be collected at loan closing. The taxes can be paid
    directly to the tax collector, or the tax bill and funds can be sent to PHFA to Escrow Servicing for disbursement.
    Also, extra funds should be collected to account for any known interim assessments.

 9. Hello/Goodbye Letter. The mortgagor(s) must receive a copy of this letter (PHFA Form 28). The Preliminary Set-Up
     Sheet (PHFA Form 26) requires certification that Form 28 was given to the mortgagor(s).

10. Acceptable Fees. An Administration Fee no greater than $550 may be charged to cover the lender’s overhead
    expenses. No additional overhead fees such as doc prep, underwriting, etc., may be charged. The normal and
    customary fees for expense items may be charged; e.g., credit report, appraisal, etc. A tax service fee can not be
    charged.

 11. Cash Back at Closing. Cash back to the borrower is limited to $100 in excess of reimbursement for POC items
     ($500 is permitted on REAL loans). Any additional funds must be reimbursed to the lender, and any PHFA
     subordinate closing cost/downpayment assistance loan must be reduced accordingly (or the first mortgage when there
     is no PHFA second).

 12. Special Instructions for Refinance Loans. Two additional items are needed. 1) Proof a Right of Rescission was
    given to each owner of the property and 2) a completed automatic withdrawal form (Form 67). Also, the borrower
    may receive up to $500 cash back at closing; any additional funds must be reimbursed to the lender, and the principal
    on the new loan must be reduced accordingly.

     I do hereby certify that the above items have been completed and are enclosed.


                                                           _________________________
                                                           Signature


                                                           _________________________
                                                           Title




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