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Housing Finance Corporation
        Lender Training

        May 23, 2006
   Loan Products
Secondary Financing
   U.S. Bank Home Mortgage
        MRBP Division
       Master Servicer

• FHA – 203b, 203b2, 234c
• VA

 Stand Alone Product*
• HUD 184 Native American
    *Insured by HUD, but not a Government
   Product. Can be included in GNMA or Fannie
   Mae/Freddie Mac pools.

 Fannie Mae: Conventional Products
   “MyCommunityMortgage” (MCM)
    – My Community Mortgage Suite of Products:
       • MCM 97, MCM100, Community Solutions
    Fannie 3/2 Option
    Fannie 97
    Community Homebuyers
    Community Land Trust Mortgage Loans
 Standard Conventional 5/10/15/20% down – 30 year fixed rate
No “Split Loan” Products allowed.
i.e. 80/20, 90/10/10, 80/15/5                                  4
Freddie Mac: Conventional Products
  “Home Possible”
   – Home Possible 97
   – Home Possible 100
   – Home Possible Neighborhood Solutions 97
   – Home Possible Neighborhood Solutions 100
Standard Conventional 5/10/15/20% down - 30 year fixed rate

 No “Split Loan” Products allowed.
 i.e. 80/20, 90/10/10, 80/15/5
FHA References
    Guide – 4155.1 rev 5
    FHA website

Other References

Fannie Mae References
  – Fannie Mae Selling Guide, Chapter X
    Section 304 – Community Lending
  – Fannie Mae Guide to Desktop Underwriting
  – Fannie Mae website

Freddie Mac References
   – Seller Servicer Guide, Chapter A34 (HP only)
   – Learning Center:
   – Website:
   – Seller Servicer Guide, Chapter 37:
     “Underwriting the Borrower”

• Credit Underwriting is the responsibility of the
  originating lender.
• U.S. Bank Home Mortgage (Master Servicer) does
  not re-underwrite your loans.
• All loans are subject to internal and agency audits.
• Underwriters should make sound credit decisions,
  assure data integrity, and include all necessary
  documents in support of the underwriting

• All loans should be underwritten in compliance
  with the most current underwriting guidelines for
  FHA, VA, Rural Housing, Fannie Mae, and
  Freddie Mac.

• The loan file must comply with the Bond program
  guidelines for income limits, sales price limits,
  property types, locations and program parameters.

 The following automated systems are approved for use
 with conventional loans in the bond programs

          Fannie Mae DU                        Freddie Mac LP
     • Fannie Mae loans                  • Freddie Mac loans
     • FHA loans                         • FHA LP
     • VA loans                          • VA loans
 If manual underwriting is necessary, full documentation is required

Other lender customized automated underwriting systems
are not acceptable for loan approval at this time.
• Full appraisal reports are required if manually
  underwritten. (make sure the appraiser use the most
  current version and the appropriate forms for property
  types which were effective January 1)
• Correspondent Lenders, sponsored by the Master
  Servicer, are required to submit full appraisals.
• Form 2055 or 2075 with a DU “Approve/Eligible”
• Full appraisal report required for Freddie Mac Home
  Possible loans evaluated by LP

Homebuyer Counseling Certificate must be included in the file
  Note: Fannie Mae -Everyone who signs the note is required to attend
  Freddie Mac -only one borrower required for Home Possible – all
  borrowers preferred

• Training must take place in one of the following forums:
   – Face-to-face home-buyer education
   – Classroom or workshop sessions
   – Telephone education/counseling program by an approved mortgage
      insurer sponsored by the lender
   – Internet training: permitted by Fannie Mae and Freddie Mac through
     approved MI companies
• Freddie Mac also offers online homebuyer education at their website: (Home Possible
                Loans/Standard Freddie products only)
                        no Fannie Mae Products
*Early Delinquency Counseling is provided by U S Bank
  Home Mortgage & acknowledged by the borrowers in the
  Authorization for Counseling notice.
     Make sure Borrowers Sign and include in the mortgage
   • “Fannie Mae’s Borrower’s Authorization for
     Counseling” form located in the Fannie Selling Guide
   • Freddie Mac requires similar documentation, but does
     not require a specific form

 Government Loans:
• Manufactured Homes are permitted in the program. The
  loan must follow FHA, VA, Rural Housing and Program
• Manufactured homes must meet specific size and
  structural requirements, remain permanently affixed to a
  foundation, and be taxed as real estate.
Conventional Loans:
• Manufactured homes are not currently eligible for
  Fannie Mae or Freddie Mac financing with the Bond
  program (due to LLPA)

   Generally Cash Back is not allowed but may be granted
   under the following exceptions:

• Borrowers may* receive cash back for fees paid outside
  of closing/settlement, i.e. earnest money deposits,
  appraisal and or credit report fees, as long as the cash
  back does not eliminate the borrowers required
  contribution per the specific product.

*Borrowers may only receive cash back indicated above if allowed by the bond
  program documents.

• Lenders need to verify that the fees were in
  fact paid by the borrower with the
  borrowers own funds.
• Documentation should include copies of
  cancelled checks or copies of check and
  bank statements to support that the funds
  cleared the borrowers account.

•     Follow the most recent Fannie Mae and FHA Condo Underwriting Guidelines
•     All Fannie Mae loans must follow the Condominium Project Acceptance
      guideline as outlined in the Fannie Mae Announcement 05-03
•     Underwriters must indicate on the 1008 the Project Acceptance Review Type

Project Type Codes     Project Acceptance Review Type

            P          Limited Review – New Project

            Q          Limited Review-Established or Two Unit to
                       Four Unit Project

            R          Expedited Review- New Project

            S          Expedited Review-Established or Two Unit to
                       Four Unit Project

            T          Fannie Mae Review

            U          FHA – approved

                  Freddie Mac
•   Follow the most recent Freddie Mac Condo
    Underwriting Guidelines – next slide
•   Underwriters must indicate on the 1077 the Project
    Classification Codes
•   Lenders may use Fannie Mae’s “Condo Project
    Manager” to assess Condo eligibility
    (Freddie Mac does not have a specific assessment tool)
•    Reference Seller Servicer Guide Chapter 42

Freddie Mac Standard & HP Products

                Fannie Mae ONLY
Originating lenders need to be familiar with the terms and
conditions for the Fannie Mae Community Land Trust
Mortgages. Originating lenders will represent and warrant
that the loan file meets the Fannie Mae CLT terms and

This Fannie Mae product option may be used in
conjunction with the following:            CLT is not a
   •Community Home Buyers             “Stand Alone” Product
                                Must be used with an actual product
   •Fannie 97
   •Fannie 3/2
•Eligible Properties: Owner-occupied, principal residence, one unit,
condo and PUDs
•The CLT must be affiliated with an organization with, a minimum of 2
years experience in successfully developing/managing low-and/or
moderate income housing.
•Executed Fannie Mae Uniform Community Land Trust Ground Lease
•Any Resale Restrictions must terminate upon foreclosure
•Appraisal must follow Fannie Mae Selling Guide, Part XI, Sec. 312
•Down Payment requirement based on the borrower’s minimum
contribution of the loan product
•Title Insurance is required per the Fannie Mae Selling Guide
•Underwriters should use the SFC of 054 on the 1008

• Funding source for the DPA program must be stated in
  the source of funds section of the 1003 (application) and
  the HUD-1.
  Example: IDA’s of the City of Phoenix, County of
             Maricopa and County of Pima.
   Make sure the DPA program meets FHA, Freddie Mac
    and Fannie Mae requirements.

  Write the loan product, DPA source, & amount on the
  Fannie Mae 1008 / Freddie Mac 1077
  (loan transmittals), or
  mortgage credit analysis worksheet (MCAW)
     •Fannie Mae Community Homebuyers 95% 061
     •Fannie 97                           121
     •Fannie 3/2                          074
     •Community Land Trust Mortgages      054
     •HUD 184 Native American Loans       128
     •Community Second Mortgages          118
     •Bond Loans                          088

* Special Feature Codes must be listed on the Fannie Mae 1008
and the USBHM Loan Submission Delivery Checklist
•Home Possible 97                                G00
•Home Possible Neighborhood Solution 97          G01
•Home Possible 100                               G02
•Home Possible Neighborhood Solution 100         G03
•Affordable Housing Initiative Mortgage          071
•MRB Loans (ALL)                                 545
•Transfer of Servicing – restricted (ALL)        510
•Affordable Housing Initiative Mortgage          535
w/TLTV greater than 100%
•Mortgage with Affordable Seconds                583
*Other SCC’s may apply as noted on LP Findings         25
 Amortized
 Silent
 Soft
 Deed Restrictions
 Deferred


  Any financing that creates a lien against the
  property is considered secondary financing and
  not a gift, even if it is a "soft" or "silent" second
  (i.e., has no monthly repayment provisions), or has
  other features forgiving the debt.

    Change to DPA Programs
  Please note that, effective May 22, 2006, seller funded
  DPA’s* on FHA Loans will no longer be allowed.
  The Purchase Agreement/Sales Contract (including any
  amendment to purchase price) must be executed and
  completed by May 22, 2006.
*Affected Programs: Nehemiah, Neighborhood Gold,
  Ameridream, Futures, etc.).
NOT Affected: any legitimate Government, Municipal, or
  Faith-Based Non-Profit grants, gifts, or funding
  assistance programs.

Documents Required for Approval
• Copy of the second mortgage (DPA) program description
• Copy of any applicable promissory notes, deeds, riders and other
  legal documentation
• Completed Fannie Mae second mortgage loan checklist

   Note: Catastrophic Language is not a requirement with
    Community/Affordable Second used with an NORTEX Bond

• Always use the SFC: 118 for Fannie Mae Community Seconds
• Always use the SCC: 583 for Freddie Mac w/Affordable 2nds

• If non-profit, provide copy of the letter of designation from
  IRS and the federal tax I.D. number.
• Must have a document that discloses the loan amount, and
  describes the terms of repayment. This document must be
  given to the borrower and a signed copy included in the
  loan file.
• Originating Lenders are responsible for the review per
  agency guidelines prior to closing.

Q –Can the entire amount needed for downpayment come from
the second mortgage source?

A - Fannie Mae/Freddie Mac will allow the entire down payment to
come from an approved down payment source as long as the borrower
makes their minimum contribution.
FHA will only allow the funding to cover all of the down payment
when the funds come from a Federal, State and local agencies or non-
profits considered instrumentalities of the government and the lien
must be in the name of the governmental entity.

*Approved non-profits must be listed on HUD’s approval list – check regional HUD
Homeownership Center (HOC) or

Q - If the second is provided by a non-profit or other
entity that is not a governmental entity and the borrower
is getting an FHA loan is the borrower required to make a
cash investment from their own funds?

A - Yes, FHA requires the borrower to make a cash
investment of at least 3 % of the acquisition cost. Also,
lender must refer to the HUD HOC website listing for all
approved non-profits eligible to provide secondary financing
with an FHA loan.
(see mortgagee letter 98-29)

Q - May we use more than one source of assistance

A – Lender must make sure that the NORTEX second
mortgages are always in second position. Also, the other
funding entities must give approval to have their liens placed
in 3rd or 4th position.

Q -Is a gift letter required if the funds have been gifted
by a non profit or instrumentality of government ?

A - Yes, Lenders must obtain evidence from the donor
(agency) of the amount of funds being provided, as well as
evidence that no repayment by the borrower is required.
Evidence of the actual transfer of funds can be shown as a
transaction on the HUD-1.
 The same documentation is required for secondary

(see mortgagee letter 00-28)

    Product Training for
  Housing Finance Agency

 Please be advised that the material provided
in this training presentation is for
informational purposes only, and that it does
not modify and is not a replacement or
substitution    for   information    in    the
Selling/Servicing Guide, Guide to Underwriting
with Desktop Underwriter® and related
supplements/ release notes, and/or the terms
of your Master Agreement or Master
Commitment, MyCommunityMortgage Terms
and Conditions, or any other contract you
have with Fannie Mae.

MyCommunityMortgage is better than ever, offering NORTEX
   A product that helps serve Texas’ increasingly diverse
    population of low- to moderate-income home buyers and/or
    underserved neighborhoods
   A streamlined product platform with multiple flexibilities
    and additional targeted borrower options to ensure just the
    right fit for each borrower
   The speed, power, and efficiency of automated underwriting
    through Desktop Underwriter® for most loans

       MCM in DU Headlines

• Expanded Approval (EA) Levels I and II with limited
  waiver of reps and warrants and no EA loan-level
  price adjustments (LLPAs)
• 3% seller contributions allowed (limited to closing
  costs and prepaid items)
• Lender will need to be activated to use DU™
• DU not required but strongly encouraged

         MCM in DU Headlines
• Quick approval
• Waiver of reps and warrants
• Possible reduced documentation – HFA guidelines
  may override
• Possible higher ratios than with manual underwriting
• Possible lower credit score than with manual

          MCM in DU Headlines
Respond to customer demand by:
• Facilitating automated underwriting of MCM, and
    establishing a process that controls deliveries;
• Creating a less complicated offer for lenders
    (collapse multiple MCM products);
• Minimizing the need for lenders to manually
    underwrite; AND
• Continuing to incorporate all high LTV products into

         MCM in DU Headlines
• DU underwrites most MCM product options:

• MCM 97 or 100% LTV
• Community Solutions™ option in some cases –
  manual underwriting may be required
• Based on loan characteristics (e.g., LTV) DU will
  determine specific MCM criteria to apply

           Counseling Requirements
* Prepurchase Counseling is required for all home buyers
  (everyone who signs the Note) utilizing one of the following
  forms of prepurchase counseling:
   – Face-to-face home-buyer education
   – Classroom or workshop sessions
   – Telephone education/counseling program by an approved
     mortgage insurer sponsored by the lender
   – Internet training is permitted through Fannie Mae
     approved MI companies

  *Early Delinquency Counseling MUST BE IN PLACE!!

     Income and Purchase Price

Borrowers must meet both income and purchase price
limits as set by the NORTEX HFC.

Basic DU MCM Parameters

                                   MCM Purchase One-Unit Property
Occupancy           Primary Residence Only
Product Types       Fixed rate, per bond program

Max LTV/CLTV        100% LTV/ 105% CLTV w/Community Seconds®

Min CLTV            95%
Min Borrower        $500 from borrower’s own funds
Eligible            Approve/Eligible, Expanded Approval Levels I and II/Eligible (No LLPAs)
Recommendations     (Refer with Caution: Follow standard DU Refer policies)

Eligible Property   Single-Family attached, detached, PUDs, condos permitted.
Types               Manufactured homes/Co-ops not permitted.

MI Coverage         80.01% - 85.00% - 6%
                    85.01% - 90.00% - 12%                95.01% - 97.00% - 18%
                    90.01% - 95.00% - 16%                97.01% - 100.00% - 20%
Home-Buyer          Pre-Purchase and Early Delinquency Counseling
Education           mandatory

Submitting MCM Loans to DU
                             •Click on next
                             at the bottom of
                             the screen to
                             open the
           Click “yes” to Community
           Lending on the Additional
           Data Screen

Click on “next” at
the bottom of the
screen to open the
Lending Screen                                  46
Select the
county or MSA
in which the
property is
                  Choose MCM as
                  the Community
                  Lending Product

                Adjust Community
                Lending income
                limit as needed up to
                maximum income

Submit the loan for underwriting

DU will do the rest

     If Lender has been activated for
       Expanded ApprovalTM (EA):
MCM message:
   EA-III/Ineligible, RWC/IV: “This case is ineligible because
   MyCommunityMortgage™ loans with an EA-III or RWC/IV
   recommendation are not eligible according to the DU MCM
   (If this message appears, lender may take the loan “out of DU” and
    manually underwrite borrower in accordance with MCM terms and
    conditions and the Fannie Mae Selling Guide. If borrower qualifies
    (including appropriate home-buyer education, meets income and
    eligibility requirements), the loan is saleable to Fannie Mae as an
    MCM loan (not EA), with no LLPAs.)
Lender does NOT receive DU limited waiver of Reps and Warrants!

If Lender has not been activated for EA:
Lender may receive following messaging:

•   Approve/Eligible recommendation; OR
•   Refer with Caution (“RWC”): “This case has been referred to an
    underwriter for further review. Based on the data submitted to
    Desktop Underwriter, this case does not appear to meet Fannie
    Mae's underwriting guidelines.”
•        (Lender may take this loan “out of DU” and manually
    underwrite the RWC borrower using the MyCommunityMortgage
    terms and conditions and the Selling Guide.)

    If approved on a manual underwrite, lender does NOT receive
    limited waiver of Reps and Warrants!

  MCM Manual Underwriting

    Core Product Features

Manual Underwriting Parameters

            When to Use Manual
• Lender is not a DU subscriber
• Lender chooses to manually underwrite
• Lender not activated for Expanded Approval
•   (Refer with Caution)
• Under the following DU Recommendations:
      • “Approve/Ineligible,” “Refer/Ineligible,” “EA-III,”
        “Refer with Caution IV,” “Refer with Caution,” or “Out
        of Scope”
• Nontraditional credit history borrowers (Out of Scope)
• Borrowers with extenuating circumstances
• Borrowers needing additional flexibility through a targeted
  borrower option (Community Solutions or Community
  HomeChoice – but in some cases may go through DU)

        Using Manual Underwriting
Credit history guidelines – lender should select one of these four
 1. Lender requests representative credit scores
         – LTV does not exceed 97%, minimum credit score of 600
         – LTV exceeds 97%, minimum credit score of 620

2. Lender does not request representative credit score
       – Traditional credit profile per the Fannie Mae Selling
       – Nontraditional credit profile per the Selling Guide,
          except minimum of three sources of credit
       – 30% of income from co-borrower without a traditional or
          nontraditional credit history
       – Reestablished credit per the Selling Guide

       Using Manual Underwriting
3.    Lender requests a representative credit score, and borrower does
      not have a credit record (nontraditional credit)
     • Nontraditional credit profile per the Selling Guide, except
           minimum of three sources of credit
     • 30% of income from co-borrower without a traditional or
           nontraditional credit profile
     • Reestablished credit per the Selling Guide
4.    Lender requests a representative credit score, and the credit score
      is less than the minimum
     • Traditional credit profile per the Selling Guide
     • Nontraditional credit profile per the Selling Guide, except
           minimum of three sources of credit
     • 30% of income from co-borrower without a traditional or
           nontraditional credit profile
     • Reestablished credit per the Selling Guide

          Extra flexibilities ……
• For a borrower utilizing nontraditional credit,
  require only three lines of nontraditional credit
• Permit 30 percent of qualifying income from
  occupying co-borrower with no credit history
  provided that the primary borrower meets the
  minimum credit standards for MCM.
• Allow boarder income from non-related parties
  in addition to relatives.

Cash on-hand
• Cash on hand may be used for down payment and closing costs, subject to
  specific criteria
   • Limited to one-unit, principal residences
   • Community Renovation loans are ineligible
• Funds will not be used to calculate reserves
• DU will use the Cash on-hand amount to calculate the available funds to
• Lender must verify & document the following:
   • Cash customarily used to expenses – consistent with previous payment
   • Credit report indicates limited (or no) credit use / depository relationship
   • Borrowers must provide a signed statement which discloses the source
      of funds (proof that they were not borrowed).
• Borrower MUST deposit funds sufficient for the downpayment and closing
  costs with a financial institution (at time of application,
  or no less than 30 days prior to closing)
•No payoff required for collections items of $250 or less or
aggregate collections of $5,000 or less.
•Requires payoff only if aggregate collection exceeds $5000
                Must be submitted through DU –
          Manually underwritten loans are not eligible

•MCM 97 – Loans with LTVs of 97% and below                         460

•MCM100 – Loan with LTVs above 97%, up to 100%                     480

•MCM Community Solutions (Manual Underwrite)                       481
Teachers,Firefighters, Policemen and HealthCare workers

     Plus: Code 088 on ALL Bond loans
            * Special Feature Codes must be listed on the Fannie
            Mae1008 and USBHM Loan Submission Delivery Checklist

Home Possible Mortgages™

    Product Training for
   Housing Finance Agency

 Please be advised that the material provided in
this training presentation on Home Possible
Mortgages is for informational purposes only. It
does not modify or supplement, and is not a
replacement or substitution for, the provisions in
the Freddie Mac Single-Family Seller/Servicer
Guide and Guide Bulletins and/or terms of the
other Freddie Mac Purchase Documents,
including your Master Agreement and/or Master


Freddie Mac’s Home Possible Mortgages offer HFA
customers opportunities to meet the home financing
needs of borrowers looking for low downpayments
and flexible sources of funds, for first-time
homebuyers, including families in underserved areas,
new immigrants, and others.

        Eligible Loan Products
Home Possible Products
      Home Possible 97
      Home Possible 100
      Home Possible Neighborhood Solutions 97
      Home Possible Neighborhood Solutions 100

Standard Conventional 5%/10%, etc.
     *No loan products with LLPAs

          HP Features
•$500 minimum borrower contribution
•Loan Prospector® first
  (all HP loans must be run through LP first)
•Area Median Income qualifications assessed
automatically via Loan Prospector
• Already licensed LP users have immediate
access to originate Home Possible loans!

             HP Headlines -
• Four simple products, available with no special
  contracts, designed to meet your borrowers’ needs
• Flexible credit terms, including expanded ratios
  and options for borrowers with less-than-perfect
• Secondary Financing including Affordable
• Low Mortgage Insurance coverage levels
• Maximum financing with up to 100 percent LTV
  and up to 105% TLTV
              HP Headlines -
•   Can use HP on all risk classes
•   Cash-on-Hand can be acceptable
•   Qualify with rental income from a non-relative
•   Co-borrower with no credit can now be
    submitted to LP

HP Headlines for MRB Loans

Eligible Mortgages:
• Purchase loans
• Fixed rate: 30-year
• Standard Level Documentation required

               Home Possible 100
Eligible Property Types
• 1-unit, owner- occupied, primary residences only
• SF detached, attached, condominiums and/or PUDs
Maximum LTV / TLTV
• 100% LTV without secondary financing
• 105% TLTV with certain types of secondary financing
• Zero Downpayment -- $500 borrower contribution / No
Eligible Mortgages
• Purchase
• Fixed rate: 30-year

                 Home Possible 97
Eligible Property Types
• 1-4* unit, owner- occupied, primary residences only
       *number of units as allowed per Bond Program guidelines
Maximum LTV / TLTV
• 1-2 unit: 97% LTV without secondary financing
• 3-4 unit: 95% LTV without secondary financing* (only as allowed per
 the bond program docs)
• 105% TLTV with certain types of secondary financing
• 1-unit: $500 borrower contribution / no reserves
Eligible Mortgages
• Purchase
• Fixed rate: 30-year
Teachers/Teachers’ Aides

                                 Healthcare workers
                            $500 borrower contribution
                                                                Professional and
                            for 1-unit properties               volunteer firefighters
 Law enforcement officers
                                                          1 month’s reserves
                                                        required – may be a gift
     1-unit properties for Neighborhood Solution 100
     1- to 2-unit properties for Neighborhood Solution 97

Mortgage Insurance

   80.01 - 85%: 6%
   85.01 - 90%: 12%
   90.01 - 95%: 16%
   95.01 - 97%: 18%
   Greater than 97%: 20%

             “Home Possible”
          Details for Underwriters


   NORTEX Lender Training
       May 23, 2006
    Cross-Functional Team Management
                HFA                                  LENDER             PROGRAM
              SUPPORT                               SUPPORT             SUPPORT

               ACCOUNT                                LENDER SUPPORT         PROGRAM
               EXECUTIVE                                SPECIALIST         DEVELOPMENT

                                                     LOAN REVIEW
                                                      SPECIALIST       PRODUCT DEVELOPMENT

               HFA CLIENT
                                                      SPECIALIST           UNDERWRITING

                            HFA SERVICING LIASION

                   YOUR TEAM CONTACTS

Laurel Kleinhenz, Lender Support Specialist             (216) 475-8323
Jacqueline White, Exception Specialist              (216) 475-8388
Ronald Moore, Loan Review Supervisor              (216) 475-8693
Rod Martin, Operations Manager                (216) 475-8236

Lynda Davis, Underwriter                   (216) 475-8246
Rita Connelly, Underwriting Manager

               Lender Compensation
                         Series 2006

Origination                                    0.00 %
Discount                                       0.00 %
Servicing Release Fee                           tbd %
Lender Net Compensation                        2.00 %


Principal Balance (amortized as necessary) 100.00 %
SRP                                          tbd %
Second Mortgage (up to 8%- as determined)    8.00 % (actual % of 2nd mtg used)
USBHM Funding                                      % maximum
•Fees: $165Compliance Review Fee – All Netted at funding
•      $ 65 Review Fee
•      $ 80 Tax Service Fee
•      $ 175 Second Mortgage transfer fee

             Documentation and Manuals

• Review Delivery and Funding Guidelines, Checklists,
  Forms, and Program Information in USBHM’s Delivery
  & Funding Guide

• Share information with Originators, Closers & Shippers

• USBHM Contact Directory Provided

•   Use correct checklist for loan
    type being delivered

•   Verify all documents are included in
    delivered loan file

•   All documents should be complete, and
    correctly executed prior to shipping the
    loan file


Indicate Conventional
Product originated

Program: NORTEX SERIES 2006
Participating Lender:
Mailing Address:

Main Phone Number:
*Customer “800” Number:
                                           Contact                                   Phone
Administrative:                            ______________________                 _______________
Shipping Super:                            ______________________                 _______________
Shipping Staff:                            ______________________                 _______________
Shipping Staff:                            ______________________                 _______________
Fax # for above:                           ______________________
E-Mail address:                            ______________________
Final Documents:                           ______________________                  _______________
Fax # for above:                           ______________________
E-Mail address:

                                           Do you have the ability to interim service loans?

Wire Instructions:                         Yes ________       NO __________ (Requires loan purchase at original balance).
ABA Number:                   _________________________
Account Number:               _________________________

Bank Name:                    _________________________

Purchase Advice Attn:         _________________________
Fax # f or Purchase Advice:   _________________________
E-Mail address:               _________________________

Please complete and fax to 216-475-8627                      Attn: Ralph Pasterak                                           80
                  Delivery Instructions

• Provide Complete Contact Information and Wiring Instructions
• Submit closed Mortgage Loan File
• Ship files immediately after closing
• Deliver loan files to:
       U.S. Bank Home Mortgage – MRBP Operations Department
       17500 Rockside Road
       Bedford, OH 44146-2099

                  Collateral Review Process

ORIGINAL NOTES – First and Second:
  • Endorse note to: U.S. Bank N.A.
  • Assignment to: U.S. Bank N.A.
   • MERS Loan? Use MOM Docs / Include MIN number
   • FHA/VA/USDA-RD Loans-Include case number-matches other docs
   • Undersigned docs = name affidavit required
   • Borrowers typed name under their signature
   • Co-Signers      Execute NOTE only
   • Rural Housing Loans      FHA docs recommended

                          Special Note
                       DPA – if applicable

• Assistance / 2nd Mortgages listed on HUD-1 with correct amounts

• DPA Acknowledgement form included in file

                 Loan Review Process
Hazard Insurance
  • Complete & Accurate Homeowners Information
  • One year proof of payment, (POC = N/A)
  • Sufficient dwelling coverage

  • Flood Certifications required
       Life of Loan
       Transferable to USBHM
  • Proof of Insurance & Payment (if applicable)

                 Loan Review Process
Property Taxes
 • Submit complete information (Tax Certification
   and Title Commitment) to ensure timely loan
 • Provide proof of Tax Payment

Mortgage Insurance
 • Lenders are required to make monthly MI
   payments prior to loan purchase

Termite Reports
   • Any infestation requires treatment
   • Damage from any previous infestation / structural
     engineer to assess damage and make recommendations
     if repairs are required

                 Loan Purchase Setbacks
• Missing compliance approval
• Property address on collateral documents must match
  hazard/flood policies and appraisals exactly.
• Borrower’s “Authorization for Counseling” form and /or
  Homebuyer Education Certificate missing
• Missing survey (if indicated on HUD I)
• Missing “Notice of Assignment”
• Proof of payment of hazard/flood insurance. *Remember –
  POC is not permissible
• Earnest deposit on sales contract must be on HUD I (if
  deposit was returned to borrower, lender should note this on the HUD I or as
  an addendum to the contract)

                 Loan Purchase Setbacks
   • MCAW not included
   • Proof of FHA insurance

   • VA form 26-1899 (Loan Guaranty) not included

  • 1008/ 1077 – SPF/SCC’s not listed / Product not clearly identified
  • DU/LP findings not included
  • Insufficient MI coverage, or cert not included
  • Homebuyer Education Certificate not included (product specific)

   • Loan Note Guaranty not included
• Compliance / Errors & Omissions Form Missing
        – see exhibit
  Sample Errors &
    Omissions /
Compliance Agreement

           Loan Purchase Setbacks

Reasons for delay:
• Late delivery of Loan Files
• Mortgage or Compliance Exceptions

Lender communication is the key to minimize delays in
  resolving issues
Repurchase Obligation:
• Audit Findings
• Program Requirements
• Uninsurable loans

A U.S. Bank representative will contact you:

PHONE               FAX             EMAIL

         Submission of File Exceptions

Identify File Exceptions

• Provide separate cover sheet for each loan
• Include copy of report/letter identifying
  specific exception items
• Partial submissions are welcome

• Loans purchased daily
• Purchase Schedule faxed
• Net Funding: (no checks)
   • Pay loan amount, interest
   • (up to) 8% DPA reimbursement
   • tbd service release premium
   • Net escrow amount
   • Net Fees

• Organize documents according to checklist
• Due in 90 days
• A late fee of $50 will be assessed after 90 days
• Deliver to
               Document Control
               17500 Rockside Road
               Bedford, Ohio 44146-2099
• Contact Final Doc Supervisor
            Darlene Kreigh –
                                    (216) 475-7739

Use your Program Team for:
• Status of loan funding         Finish

• Status of documents received
• Program guidelines
• General information

          Payment Information
     Borrower Payment Address and website:
                  U.S. Bank Home Mortgage
                       P.O. Box 468002
                  Bedford, OH 44146-8002

• Monthly statement to borrowers instead of 12 month
  coupon booklet
• Borrowers can make payment online at and see payment
  transaction / loan information.
• Borrowers can make their payment directly at any U.S.
  Bank Branch *must have their USBHM loan number



              17500 Rockside Road
               Bedford, OH 44146

   • All MRBP Bond loans serviced from this facility
   • Specializing in Bond Loan Servicing


  Customer Service Toll Free Number
    Hours:     Monday – Friday
             8:00 am – 9:00 pm EST

 Please give this information to your borrowers
                  at loan closing.


Customer Service Toll Free Number          800-240-7890
Hours: Monday – Friday                     8:00 am – 9:00 pm

Payoff Requests                             Fax #(216) 475-8572
•Need written request with customer authorization & loan number

Assumption Requests
• Inquiries are routed through Customer Service
• Initial letter is sent
• Borrower must meet all bond guidelines to assume loan


Default Toll Free Number             800-337-1193
Hours: Monday – Friday               8:00 am – 8:00 pm EST

HFA Servicing Relations Main Contact:
Linda Tully              Phone #(216) 475-7369
17500 Rockside Rd.       Fax #(216) 475-8569
Bedford, OH 44146        Email:


JIT (Just in Time)
•Checking/savings information over the phone.
•Can set up payments 30 days in advance. $9.00 fee

Online Payments
•Need loan number and password to access this option

•See our online instructions for sign up on the web address

Western Union
• Visit any Western Union outlet.
• USBHM city code “Allstar” State code “KY”
• $12.95 Fee

• Available in many WalMart stores.
• USBHM Receiver Code – 2442 $8.50 fee

US Bank Branches
• Visit any US Bank branch.
• Delinquent payments for 90+ accounts will be accepted, but
  not processed at the branch.
NSFs within the past 12 month period will require certified funds.



      Thanks for attending!

Your U.S. Bank Home Mortgage Team


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