Welcome

WelcomeNew Single Family Program Training

September 22, 2015

Conference Dial-in Number: (641) 715-3276Participant Access Code: 297334#

https://apps.na.collabserv.com/meetings/join?id=4789-5707

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Webinar Agenda• Introductions• Background on Program Changes• Overview of New Programs

• First Home• First Down• Next Home

• Forms• Compliance Review

• MFA Compliance Addendum• First Home/First Down• Next Home

• Additional Items

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New Single-Family Programs

Why redesign the Single Family Programs?

• Too many programs-multiple programs with multiple options

• Complicated/confusing guidelines

• Time intensive qualification and approval process

• To utilize the benefits of “traditional” mortgage financing

• Loan specific detail and version control of program documents

• Opportunity to serve more New Mexico homebuyers

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New Single-Family Programs

What’s new?

• New Programs• First Home • First Down• Next Home

• Process for utilizing/printing forms

• Down Payment Assistance reservation process • Compliance Review for Next Home program

• DPA funding process (separate training)

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New Single-Family Programs

• Available for reservation on October 1st

• September 30th-last day to reserve current programs

• Program documents, website and online reservation system will be updated on October 1st

• Updated Compliance Manual, with reservation and loan

purchase procedures will be available prior to roll-out.

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New Single Family Programs“First Home” Program

• Essentially, it is a “Mortgage$aver Zero” loan

• Income Limits and Acquisition Cost Limits detailed in First Home program policy

• Government (“FHA, VA, USDA, HUD Section 184”) and Conventional (“HFA Preferred”) rates

• 0% Origination and 0% Discount Fee

• $500 borrower contribution

• 620 credit score

• Homebuyer counseling required

• Can be used in conjunction with “First Down” (for down payment assistance) or as a stand alone first mortgage

• First Down is the only type of DPA available with First Home

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New Single Family Programs“First Down” Program

• Essentially, it is a “Mortgage Booster” loan

• Up to $8,000

• 30 year, fixed rate (6.00%)

• $100 origination fee (may be charged)

• Used for minimum down payment and closing costs

• No cash back to homebuyer at closing

• Can be combined with First Home (for down payment assistance)

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New Single Family Programs“Next Home”

• New non-first time homebuyer program

• Also available for first time homebuyers

• 3% grant to homebuyer

• One Income Limit and one Purchase Price limit• $75,000 income• $350,000 purchase price

• $500 borrower contribution

• 0% Origination Fee and 0% Discount Fee

• 620 credit score

• Must be primary residence

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New Single Family Programs“Next Home” (cont.)

• Qualify with income from borrower(s)• Income used for credit qualifying is income for program limits• Lender’s underwriter determines MFA qualifying income• Only need to count income from borrowers

• For Next Home Only-Lenders will not need to provide:• Paystubs• Tax returns• Bank statements• VOR’s• VOE’s

• Homebuyer can own another property• Just need to occupy Next Home property as primary residence

• No “bond loan” documentation (i.e. Recapture Notice, Affidavit of Buyer/Seller, Riders)

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New Single Family Programs

Next Home Grant

• Lenders will reserve Next Home grant via the Online Reservation system

• Next Home Grant will be assigned an identification number at time of reservation

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Program Forms

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Program Forms

• No longer provide fillable forms for download on the MFA website

• MFA will post sample non-fillable forms to the website for reference only

• Forms will print directly from the online loan reservation system

• Forms will be populated with individual loan information

Loan number Loan Amount Borrower/Co-Borrower name Property address

• Forms will be available to print based on the status of the loan

Reservation, Compliance Approval, etc.

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Program Forms

• “Loan Reservation/Lock Commitment”

• Provided at time of reservation• First Home, First Down and Next Home loans and Next Home Grant

• “Compliance Approval/Loan Purchase Commitment”

• Compliance Approval and Purchase Agreement in one document• Provided at time of Compliance Approval• First Home , First Down and Next Home loans • Does not apply to Next Home Grant

• “DPA Funding Commitment”

• Next Home grant• First Down second mortgage loan• Satisfies HUD/ FNMA requirements regarding source of DPA, commitment of DPA

funds by MFA and gift letter.

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Program Forms (cont.)

• “MFA Compliance Addendum”• Print at time of loan reservation• Separate Compliance Addendums for First Home and Next Home• Not required for First Down and Next Home Grant

• “Compliance Review Checklists”

• First Home with First Down (same as Mortgage$aver Zero and Mortgage Booster)• Next Home and DPA Grant (single checklist)

• Loan Delivery Checklists

• Will be covered in specific Closed Loan Delivery training in October, 2015

• FTHB bond loan documentation (“First Home”)

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Commitment Forms (by Program)

Loan Reservat

ion

Reservation/ Lock

Commitment

Compliance Addendum

Compliance

Review

First Home Program

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Commitment Forms (by Program)

Loan Reservat

ion

Reservation/ Lock

Commitment

Compliance

Approval/Loan Purcha

se CommitmentDPA

Funding

Commitment

Compliance

Review

First Down Program

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Commitment Forms (by Program)

Loan Reservat

ion

Reservation/ Lock

Commitment

Compliance Addendum

Compliance Approval/Loan Purch

ase Commitment

Compliance

Review

Next Home Program

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Commitment Forms (by Program)

Loan Reservat

ion

Reservation/ Lock

Commitment

Compliance

Review

Next Home Grant

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Compliance Review

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Compliance Addendum

• MFA’s Compliance Addendum is the “source document” for MFA loans

• Compliance Addendum provides MFA with information that may not be available in the credit file

• Separate Compliance Addendum for First Home and Next Home

• Signed, borrower “certification” that the information provided on the Compliance Addendum is “true and correct”

• Explanations/Comments section in Compliance Addendum replaces borrower affidavits and allows lender to describe “unique” situations to MFA

• Participating Lender signs the Compliance Addendum

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Compliance Addendum (cont.)• The Compliance Addendum must be complete and accurate

• MFA will condition for corrections/revisions to the Compliance Addendum

• MFA Commitment Forms and Compliance Addendum must match

• Information printed out of the Online Reservation system• Must be correct at time of Compliance File submission• Includes Loan amount, property address, loan type, etc.

• Incomplete or inaccurate information on the Compliance Addendum will delay the Compliance Review

• Changes made to the loan by the Participating Lender after Compliance package submission will put the file at the “back of the line”

• A clean and accurate file means a quick turnaround

• A poorly packaged file means the Compliance Approval will be delayed

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Compliance Review

“First Home” and “First Down”

Same process as Mortgage$aver Zero and Mortgage Booster

Must provide documentation for MFA to calculate income, determine property eligibility, first time homebuyer status, etc.

Compliance File submitted electronically

Compliance File and Compliance Suspense conditions submitted electronically to MFA

“Bond” disclosures must be signed at closing

Compliance Approval/Loan Purchase Commitment can be printed after Compliance Approval

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Compliance Review

“Next Home”

• Income used to qualify the borrower for the credit underwrite is the income MFA will use to qualify for the program

MFA will not calculate “program” income separately

• Very limited documentation Appraisal Purchase contract Correct and accurate Reservation/Lock Commitment Next Home DPA Funding Commitment Credit report Counseling certificate (FTHB only) Final first mortgage loan application Final underwriter approval/DU Complete and accurate Compliance Addendum

• Compliance File and Compliance Suspense conditions submitted electronically to MFA • Compliance suspense conditions greatly reduced or eliminated

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Compliance Review

“Next Home” (cont.)

• Complete and accurate information!

• Clean files!

• MFA is only obligated to purchase first mortgages or reimburse DPA based on the Compliance Approval

• Must be correct at time of Compliance File submission

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Additional Items

New DPA funding process effective for all loans closed on or after October 1, 2015

New program forms, documents and updated website will go live on October 1, 2015

Compliance Manual and Online Reservation Manual will be available prior to roll-out

More detailed Compliance Review and Closed Loan training will be provided in early October

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Questions?