seth 5 star texas advantage rev 10-10-12...

Southeast Texas Housing Finance Corporation!5 Star Texas Advantage!

Program Lender Training!Revised 10-11-12!

WHAT YOU’RE GOING TO LOVE

ABOUT THIS PROGRAM?

!5 Star Texas Advantage Program!

NEW!

THIS ISN’T A BOND PROGRAM THIS PROGRAM HAS A DIFFERENT FUNDING

SOURCE: THE SALE OF MORTGAGE BACKED SECURITIES DIRECTLY TO THE SECONDARY MARKET

SAY GOODBYE TO THE OLD RULES

The program changes support more streamlined

and faster loan closings and funding

and decrease exceptions while increasing profitability.

!5 Star Texas Advantage Program!

, NO

First-Time Homebuyer Requirement

!5 Star Texas Advantage Program!

NEW!!

NEW!

5 STAR TEXAS ADVANTAGE loans may be combined with SETH MCC Programs (MCC requirements apply)

!5 Star Texas Advantage Program!

NEW!

Increase profitability with Shorter Delivery Timelines IMPORTANT! 70 days from loan reservation until loan is purchased by US Bank Fewer Exceptions with fewer forms

!5 Star Texas Advantage Program!

!5 Star Texas Advantage Program!

First mortgage loans feature automatic assistance grant

•  30 year fixed-rate loans

•  Current rates available online on eHousingPlus site

•  Rates and assistance - subject to change at any time

•  Loans in process grandfathered but must meet timelines

Assistance Grant •  Grant = No second lien DOT’s or notes

•  not repayable under any circumstances

•  may be used for down payment/closing costs

•  calculated on Note amount

•  funded by Lender at closing •  Servicer loan purchase = lender reimbursement

!5 Star Texas Advantage Program!

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A FEW MORE REQUIREMENTS

Remember: Forget the Old Rules

!5 Star Texas Advantage Program!

For non-citizens Follow Agency (FHA, etc.) Guidelines

!5 Star Texas Advantage Program!

NEW!!

NO FEDERAL INCOME TAX RETURNS FOR PROGRAM PURPOSES

Check with your underwriter

on tax returns for credit purposes

!5 Star Texas Advantage Program!

NEW!!

, NO RECAPTURE TAX

!5 Star Texas Advantage Program!

NEW!!

, NO PURCHASE PRICE LIMITS

!5 Star Texas Advantage Program!

NEW!!

ELIGIBLE AREA Entire State of Texas

!5 Star Texas Advantage Program!

NEW!!

NO TARGETED AREAS

!5 Star Texas Advantage Program!

NEW!!

•  New or Existing •  Residential, 1-2 unit properties •  Attached, detached •  Condos, town homes •  Manufactured homes – Not permitted •  No temporary, seasona l , mob i le ,

recreational properties

!5 Star Texas Advantage Program!

INCOME LIMITS

Listed by county in the Administrator’s Guidelines

!5 Star Texas Advantage Program!

NO HOUSEHOLD INCOME CALCULATION

USE ONLY 1003 QUALIFYING INCOME

!5 Star Texas Advantage Program!

NEW!!

MINIMUM CREDIT SCORE 640

(MID SCORE REQUIREMENT)

MAXIMUM DTI = 45%

!5 Star Texas Advantage Program!

NEW!!

HOMEBUYER EDUCATION REQUIREMENT

•  All borrowers (those on the Note) must attend Homebuyer Education

•  Provided by SETH online

•  Click on Homebuyer Education on the SETH website www.sethfc.com

!5 Star Texas Advantage Program!

NEW!!

I M P O R T A N T!Very different calendar for processing

and delivering program loans

NEED MORE TIME? WAIT TO RESERVE!

New construction, foreclosures, short sales – save time, save money,

Reserve 45 days prior to closing.

!5 Star Texas Advantage Program!

NEW!!

From the time a loan is reserved in the eHousingPlus system •  Underwriter Certified in eHousingPlus system within 15

days of reservation •  Closed and delivered to US Bank within 45 days of

reservation •  Compliance File delivered to eHousingPlus within 10

days of closing •  Purchased within 70 days of reservation

I M P O R T A N T!

!5 Star Texas Advantage Program!

NEW!!

Loans not purchased within 70 days ineligible for purchase unless lender chooses one time 30 day extension. Extensions are subject to an extension fee due whether loan delivered or purchased. Fee detailed in Rate Lock Notice. If loan not closed, may re-reserve 60 days after Rate Lock expires (including extensions).

!5 Star Texas Advantage Program!

NEW!!

Appraisal must indicate that the home has at least a 30 year remaining useful life No Asset Test in this program. Buydowns (temporary 2/1, 1/1) - Follow Agency Guidelines. Cash Back to borrower not permitted Borrowers permitted reimbursement of prepaids and overage of earnest money deposit if permitted by Agency

!5 Star Texas Advantage Program!

Construction to perm not permitted Cosigners or any non-occupying borrower not permitted. There is no minimum loan amount in this program. Prepayments - The first mortgage may be prepaid at any time without penalty. Remaining reserves are not established by the program - Follow Agency Guidelines.

!5 Star Texas Advantage Program!

THE PROCESS

!5 Star Texas Advantage Program!

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Companies •  Must be approved by U S Bank through new

process •  Must execute program Lender Agreement

Personnel •  Must attend training •  Usernames and passwords assigned

!5 Star Texas Advantage Program!

QUALIFY •  Lenders qualify applicants for the program •  Borrowers need an executed Purchase agreement for

reservation. RESERVE •  Reserve funds by going to eHousingPlus.com. PROCESS •  Lenders process loan normally keeping in mind the

program timelines.

!5 Star Texas Advantage Program!

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UNDERWRITE AND CERTIFY •  Lenders underwrite & are responsible for credit

decisions. Servicer does not re-underwrite loans •  Following credit approval AND WITHIN 15 DAYS OF

LOAN RESERVATION, Underwriter completes online Underwriter Certification form

CLOSE •  Lender closes loan Two program forms at closing.

!5 Star Texas Advantage Program!

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SHIP / SUBMIT •  Use Compliance Checklist to assemble compliance file.

First mortgage file and credit package submitted to US Bank within 45 DAYS OF RESERVATION

•  Compliance File submitted directly to eHousingPlus within 10 days of closing

•  Recorded mortgage documents should be submitted to US BANK .

!5 Star Texas Advantage Program!

PROGRAM FEES The program includes a first mortgage Program Fee of $225. The fee payable at closing and remitted to eHousingPlus with Compliance File. Fee disclosed on HUD-1 as being paid to eHousingPlus and can’t be financed. US Bank fees of $85 Tax Service Fee and $150 Transfer Fee payable at closing. Both disclosed on the HUD-1 as being paid to US Bank. They will be netted at loan closing and can’t be financed.

!5 Star Texas Advantage Program!

PROGRAM FEES

Lenders charge and retain 1.00% Origination Fee paid by buyer or seller as allowable. Lenders are permitted to charge reasonable and customary charges for out of pocket expenses and costs. "Junk" fees are not a defined term and may not be charged. Excessive fees are not permitted in the program.

!5 Star Texas Advantage Program!

NEW! ONLY TWO FORMS

REQUIRED BY THE 5 STAR TEXAS ADVANTAGE PROGRAM

•  Mortgagor Acknowledgment •  Notice of Down Payment and

Closing Cost Assistance

!5 Star Texas Advantage Program!

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DOCUMENTS REQUIRED FOR COMPLIANCE FILE Compliance File Checklist Available online on the ehousingplus website. Final Typed Loan Application (1003) The typed application signed and dated by all parties is required

!5 Star Texas Advantage Program!

HUD-1 Settlement Statement Buyer, seller and closing agent must fully execute the HUD-1. The Compliance Review Fees must be shown as being payable to eHousingPlus. Please do not bundle charges. Itemize all charges to the transaction Warranty Deed A copy of the Warranty Deed is required.

!5 Star Texas Advantage Program!

Homebuyer Education Certificate A copy of the Homebuyer Education Certificate must be in the Compliance File. All those on the Note must attend homebuyer education. ONLY approved education is provided by SETH via an online course.

!5 Star Texas Advantage Program!

ONGOING TRAINING!!

eHousingPlus and US Bank!Available!

on eHousingPlus.com!!

Start Date will be in email you receive tomorrow.!

!5 Star Texas Advantage Program!

Information is in Administrator’s Guidelines Follow up Email Tomorrow Going Forward – Call Us With Questions

!5 Star Texas Advantage Program!