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  • Florida Housing Finance


    Training Presentation

    Florida Housing Finance


    Training Presentation

    Sally Mazzola

    UW/Closing/Delivery Overview

    Sally Mazzola

    UW/Closing/Delivery Overview11.15.1111.15.11

  • Disclaimer

    This presentation represents only a general

    overview of the bond program.

    It is the lenders responsibility to follow

    all specific Federal, Agency and Bond program


  • Agency Announcements/BulletinsAgency Announcements/Bulletins

    Lenders are responsible for keeping updated on all Announcements

    and Bulletins released by Agencies

    U S Bank requires lenders adhere to all terms and conditions of these

    announcements unless otherwise instructed

    U S Bank Help Desk (MRBP Division) will advise lenders of

    any updates by bulletin

  • Product & Underwriting


  • Government-Eligible Loan ProductsGovernment-Eligible Loan Products

    FHA Products 203b - FHA 203ks Streamline Rehab 203h - Disaster Victims 234c Condo FHA loans only 2-1 buy downs are permitted

    VA Products

  • Conventional- Eligible Products

    Fannie Mae MyCommunityMortgage (MCM)

    Fannie Mae Standard products

    Freddie Mac Home Possible products

  • Loan Products Not PermittedLoan Products Not Permitted

    Fannie Mae Flex products Split Loan Products (80/20, 80/15/5 etc.) 203k Rehab Participating Lenders- Government products with FICO


  • MyCommunityMortgage / Home Possible Standard

    Eligible Properties: Single Family Single Family

    Condos permitted No condos, manufactured or coops

    No Manufactured or Coops

    Eligible Loans: DU approved DU-No EAs / LP accept w.

    including EA1 or manual 45% DTI permitted, restricted

    UW to 95% LTV

    HomePossible- LP accept /

    Limited to 45% DTI/ 95% LTV

    LLPAs & Adverse Market

    Fees: LLPAs pd. By FHFC LLPA & Adverse pd. by buyer or

    MCM only seller

    Adverse.25% pd. by

    buyer or seller

    Conventional Product Comparison

  • Maximum LTV/CLTV MCM: 97% / 105% 97% / 105% w.

    w. community 2nd community 2nd

    No minimum LTV

    Condos limited

    to 95% LTV

    Maximum LTV/TLTV HP: 95% Not permitted

    Conventional Product Comparison

    MyCommunity Mortgage / Home Possible Standard

  • MyCommunity Mortgage / Home Possible Standard

    Manual UW Fannie only: LTV/CLTV: 95% FICO >660 Per Selling Guide

    Limited to 43% for total DTI DU (limited to 45% DTI

    45% with strong compensating factors restricts to 95% LTV

    MI companies may restrict to 90% LTV

    AUS: MCM DU / Limited to 45% DTI

    HomePossible- LP accept / Limited to 45% DTI

    Non-Traditional Credit UW Maximum: LTV 95% Not permitted(with no credit) MCM or HP only

    Conventional Product Comparison

  • MyCommunity Mortgage / Home Possible Standard

    Pre-Closing Homebuyer

    Education: Required form at closing

    Refer to Floridas website for

    for approved HBE options

    Early Delinquency

    Counseling: Required form at closing Required form at closing

    Min Borrower None 3% of borrowers own resources

    Funds: No contribution if < 80% LTV

    MI may require Gifts & grants and Community

    1% or $1,000 2nds considered borrowers own


    Conventional Product Comparison

  • MyCommunity Mortgage/ Home Possible Standard

    Seller Contributions: > 90% LTV=3% > 90% LTV = 3%

    < 90.01% LTV=6% < 90.01% LTV = 6%

    Other: May not own another residential property N/A

    Freddie Mac All loans must be submitted through LP only

    Home Possible: NO manual underwrite

    Risk Class: LP Accept

    Max DTI: 45%

    LTV or CLTV Min. FICO

    Max LTV/CLTV: 95% / 95% 80% and under Credit score >620

    95% / 95% Over 80% Credit score >700

    Conventional Product Comparison

  • MCM / HP Standard

    Additional variance: Non-occupant co-signer signing only Note. May ignore DU non-occupant co-signer messaging.

    Limited to 90% LTV / Occupant DTI 55%

    Conventional Product Comparison

    Income Limits: Above Fannies 100% AMI permitted as long as checked to ensure limits are within Floridas limits or use income AUS adjustor button to increase limit to Floridas

  • MCM/HP Standard Fannie

    80.01-85% LTV: 6% 12% 85.01-90% LTV: 12% 25% 90.01-95% LTV: 16% 35%95.01-97% LTV: 18% N/A HP

    Single Premium Financed:

    MCM: up to 97% Up to 95% standard coverageHomePossible: up to 95%

    MI Coverage Comparison

    Note: All applicable Special Feature

    Codes and Special Characteristic Codes

    must be listed on the 1008

  • Automated Underwriting SystemsAutomated Underwriting Systems

    The following automated systems (AUS) are approved for use in the bond program

    Conventional Loan Types: Fannie Mae loans (DU) Only Freddie Mac loans (LP) Only

    Government Loan Types: FHA & VA loans (DU or LP)

    If manual underwrite is necessary, full documentation is required

    Other customized automated underwriting systems are not acceptable at this time.

  • Appraisals/Condo RequirementsAppraisals/Condo Requirements

    USBHM will require a full appraisal report unless otherwise indicated on DU findings

    Condominiums - Please follow all agency guidelines relative to loan product you are originating

  • Manufactured HousingManufactured Housing

    Manufactured Homes are permitted on FHA loans only

    Reference USBHMs website for manufactured housing guidelines at www.mrbp.usbank.com select U S Bank Lending manuals, click on Manufactured Housing icon

    Read & comply with all Agency & U S Bank guidelines prior to loan closing!

    Title must be surrendered at closing

  • Secondary FinancingSecondary Financing

    Non-HFA provided Down Payment Assistance Programs

    USBHM does not approve your secondary financing programs

    Funding source for the DPA program must be:

    Must meet Agency (HUD, Fannie, & VA) requirements

    Stated on the 1003 and HUD-1

    Loan product, down payment source & amount reflected on the 1008 or LT92900 form

    Exception: DPA programs that contain Shared Equity component must be reviewed and approved by U.S. Bank Home Mortgage, Underwriting Department send program description to www.bedfordmrb@usbank.com or call 1-800-562-5165

  • Mortgage Disclosure Improvement Act


    Real Estate Settlement Procedures Act


    High Priced Mortgage Loans (HPML)

  • Mortgage Disclosure Improvement Act

    All amortizing loans (includes Hami) delivered for purchase REQUIRED to have:

    Early TIL- Delivered or mailed to borrower(s) no later than 3 general business days after lender receives borrower(s) written application.

    Corrective TIL- Any corrective TILs that were required, delivered

    or mailed to borrower(s)

    Final TIL Signed and dated at consummation

    Initial loan application (1003) Signed & dated by interviewer

    Reference USBHM bulletins: 2009-40, 2009-47, 2009-52, 2009-75 and any subsequent bulletins.

    NOTE: Per bulletin 2011-03 USBHM will require that all TILA disclosures be in the regulatory required format.

  • MDIA/APR Tolerance

    Corrective TIL is required when APR on the Early TIL disclosure

    increases by more than the .125% tolerance

    NOTE: ** USBHM will not purchase a loan which closed before the

    three or six precise business day waiting period has expired!

    Reference USBHM MRBP bulletin 2009-75

  • Real Estate Settlement Procedures Act (RESPA)

    The following slides represent U.S. Bank Home

    Mortgage-MRBP Divisions RESPA related policies

    and procedures. For questions related to other

    RESPA regulations, please consult with your Legal

    Counsel or Compliance Department

    The information provided is a summary of

    USBHM-MRBP bulletin 2009-89

  • Real Estate Settlement Procedures Act (RESPA)

    GFE must be provided no later than 3 business days after lender either receives application or obtains information sufficient to complete and application.

    Essential loan terms and costs must be disclosed and remain in effect for at least 10 business daysPage 1 must show:

    Initial loan amount, term, and interest rate

    Initial monthly payment amount

    Whether there was an interest rate change increase

    Whether loan allows for negative amortization, provides for a pre-payment penalty or a balloon payment

    Total origination charges and charges for other settlement services

    REQUIRED: Each individual loan requires a separate GFE & HUD-1 i.e. 1st and 2nd (Hami or Florida Assist mortgage loans must be completed by lender and provided to USBHM with file

    GFE format cannot be altered in any way

    USBHM Reference Bulletins: 2009-84, 2009-89, 2010-02, 2010-03, 2010-36 and 2010-37

  • Real Estate Settlement Procedures Act (RESPA)

    Changed Circumstances

    When changed circumstance has occurred, lender MUST issue a revised GFE within

    3 business days of receipt of the information that triggered a changed circumstance

    Loan officer is bound to GFE tolerances unless new GFE provided; ONLY changed circumstances allow re-disclosure of certain terms on GFE

    If lender provides a revised GFE based on a changed circumstance, documentation must


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