Florida Housing Finance Corporation Training Presentation. Sally Mazzola UW/Closing/Delivery Overview

Transcription

1 Florida Housing Finance Corporation Training Presentation Sally Mazzola UW/Closing/Delivery Overview

2 Disclaimer This presentation represents only a general overview of the bond program. It is the lender s responsibility to follow all specific Federal, Agency and Bond program guidelines.

3 Agency 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

4 Product & Underwriting Overview

5 Government-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

6 Conventional- Eligible Products Fannie Mae MyCommunityMortgage (MCM) Fannie Mae Standard products Freddie Mac Home Possible products

7 Loan Products Not Permitted Fannie Mae Flex products Split Loan Products (80/20, 80/15/5 etc.) 203k Rehab Participating Lenders- Government products with FICO scores <620 will not be accepted (Reference bulletin ) Correspondent lenders of USBHM should follow specific U.S. Bank guidelines for FICO score limits Manufactured housing (Conv., VA & RD) Note: For borrowers with no credit scores, manual underwrite is permitted as a non-traditional.

8 Conventional Product Comparison MyCommunityMortgage / Home Possible Standard Eligible Properties: Single Family Single Family Condo s permitted No condos, manufactured or coops No Manufactured or Coops Eligible Loans: DU approved DU-No EA s / LP accept w. including EA1 or manual 45% DTI permitted, restricted UW to 95% LTV HomePossible- LP accept / Limited to 45% DTI/ 95% LTV LLPA s & Adverse Market Fees: LLPA s pd. By FHFC LLPA & Adverse pd. by buyer or MCM only seller Adverse.25% pd. by buyer or seller

9 Conventional Product Comparison MyCommunity Mortgage / Home Possible Standard Maximum LTV/CLTV MCM: 97% / 105% 97% / 105% w. w. community 2 nd community 2 nd No minimum LTV Condos limited to 95% LTV Maximum LTV/TLTV HP: 95% Not permitted

10 Conventional Product Comparison 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% (with no credit) MCM or HP only Not permitted

11 Conventional Product Comparison MyCommunity Mortgage / Home Possible Standard Pre-Closing Homebuyer Education: Required form at closing Refer to Florida s 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 funds

12 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

13 Conventional Product Comparison MCM / HP Standard Additional variance: Non-occupant co-signer signing only Note. May ignore DU nonoccupant co-signer messaging. Limited to 90% LTV / Occupant DTI 55% Income Limits: Above Fannie s 100% AMI permitted as long as checked to ensure limits are within Florida s limits or use income AUS adjustor button to increase limit to Florida s

14 MI Coverage Comparison MCM/HP Standard Fannie % LTV: 6% 12% % LTV: 12% 25% % LTV: 16% 35% % LTV: 18% N/A HP Single Premium Financed: MCM: up to 97% HomePossible: up to 95% Up to 95% standard coverage Note: All applicable Special Feature Codes and Special Characteristic Codes must be listed on the 1008

15 Automated 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.

16 Appraisals/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

17 Manufactured Housing Manufactured Homes are permitted on FHA loans only Reference USBHM s website for manufactured housing guidelines at 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

18 Secondary 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 or call

19 Mortgage Disclosure Improvement Act (MDIA) Real Estate Settlement Procedures Act (RESPA) High Priced Mortgage Loans (HPML)

20 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 TIL s 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: , , , and any subsequent bulletins. NOTE: Per bulletin USBHM will require that all TILA disclosures be in the regulatory required format.

21 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

22 Real Estate Settlement Procedures Act (RESPA) The following slides represent U.S. Bank Home Mortgage-MRBP Division s 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

23 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 days Page 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: , , , , and

24 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 be retained in loan file for at least 3 years after settlement. Note: Reference RESPA guidelines for definition of a changed circumstance.

25 Real Estate Settlement Procedures Act (RESPA) Tolerances The first fixed tolerance is 0% and applies to all lender and mortgage broker origination fees. None of these items may exceed the amount disclosed on the GFE by any amount. The second is 10% and applies to total of: All lender required settlement services paid to providers selected by lender All lender required settlement services paid to providers selected by borrower from lender-provided lists Premiums for optional owners title insurance selected by borrower from lender provided lists Government recording fees This means sum of actual charges cannot exceed sum of charges disclosed on the GFE for these items by 10%

26 Real Estate Settlement Procedures Act (RESPA) Tolerances continued. The third tolerance is for fees that may change at settlement (no tolerances apply) Required services the borrower shops for Title services and lenders title insurance not ID by lender Owner s title insurance not identified by lender Initial deposit for escrow account Daily interest charges Homeowners insurance

27 Real Estate Settlement Procedures Act (RESPA) U.S. Bank s File Review U.S. Bank Home Mortgage-MRBP staff performs a basic compliance review of the GFE document to ensure compliance with the following: Ensure GFE is on proper form Ensure HUD-1 is on proper form Verify Loan Terms on HUD-1 match Summary of Your Loan on the last issued GFE. Verify HUD-1 is within acceptable tolerances with last GFE issued including a review of charges that cannot increase by more than 10% Verify lender provided acceptable cure documentation, if applicable Post Settlement Cure: HUD allow lenders a 30-day cure period from date of borrower s signed closing documents for violating GFE/HUD-1 fee tolerances. Lenders exceeding fee tolerances will be in violation of Section 5 of RESPA. USBHM must receive proof of refund to borrower and a corrected HUD-1, from settlement agent prior to loan purchase. NOTE: If there is a known issue, don t wait until USBHM has reviewed as you may exceed the 30-day cure period for correction.

28 Reg Z -High Priced Mortgage Loans (HPML) Loans purchased by USBHM must comply with TILA requirements and changes to Reg Z regarding HPML s You may have a HPML loan When to Test: Time of Early TIL disclosure Time of locking the loan Time of any Corrective TIL disclosure and Time of Final TIL prior to closing Reference USBHM MRBP bulletin for details on HPML requirements

29 Closing / Delivery / Closing, Delivery, Purchase Purchase and & Post-Closing Post-Closing Overview

30 Preparing to Deliver Loan Officers, Underwriters, Processors, Shippers & Closers should review the guides and documentation required prior to closing Closing instructions, document preparation and appropriate disclosures are to be done by you and closed in your name Provide updated or complete Contact Information Sheet and submit to USBHM if you haven t already done so Access the USBHM website at or on the Ehousing website to obtain the information

31 Bond Program: Lender Name: Mailing Address: US Bank Home Mortgage - MRBP Division Lender Contact Information / Authorization Main Phone Number: Main Fax Number: Website (if applicable) MERS ID # (if applicable): Name Main Contact: Phone Fax Main Contact Bulletin Contact: Phone Fax Bulletin Contact Underwriting Manager: Phone Fax Underwriting Shipping Supervisor: Phone Fax Shipping Shipping Staff: Phone Fax Processing Manager: Phone Fax Processing Exception Contact: Phone Fax Exceptions Final Documents: Phone Fax Final Docs Lender Scorecard Recipient: Phone Fax Scorecard Wire Instructions: Bank Name: ABA Number: Account Number: Account Name: Purchase Advice Attn: Phone: Fax # for Purchase Advice: address: Authorized Signature: Fax this completed authorization form to: OR- Scan and this completed authorization form to: mrbp.helpdesk@usbank.com Updated

32 Loan File Submission Process Ship loan(s) immediately after closing within required guidelines Reservation to Exceptions Cleared, Loan Purchased = 115 days Complete Loan Delivery Checklist for loan type you are shipping All documentation is completed & correctly executed prior to shipping

33 Collateral ORIGINAL NOTE: Endorsed to U.S. Bank National Association Name Affidavit Required, if Borrower(s) undersign Borrowers typed name(s) under signature line Co-Signers are to execute NOTE only Be sure intangible tax verbiage reads as follows: THIS NOTE AND THE MORTGAGE SECURING THIS NOTE ARISE OUT OF OR ARE GIVEN TO SECURE THE REPAYMENT OF A LOAN ISSUED IN CONNECTION WITH THE FINANCING OF HOUSING AND ARE EXEMPT FROM DOCUMENTARY STAMP TAX AND INTANGIBLE TAX PURSUANT TO SECTION (1), FLORIDA STATUTES

34 Collateral MORTGAGE: (copy) Be sure intangible tax verbiage reads as follows: THIS MORTGAGE AND THE NOTE SECURED BY THIS MORTGAGE ARISE OUT OF OR ARE GIVEN TO SECURE THE REPAYMENT OF A LOAN ISSUED IN CONNECTION WITH THE FINANCING OF HOUSING AND ARE EXEMPT FROM DOCUMENTARY STAMP TAX AND INTANGIBLE TAX PURSUANT TO SECTION (1), FLORIDA STATUTES

35 Collateral RIDERS: (copy) Tax Exempt Rider (required on all tax exempt bond loans) Original MUST be recorded with mortgage Other applicable riders (condo, pud, etc.) ASSIGNMENT: (copy) if not a MERS lender Assigned to U.S. Bank National Association

36 FL Assist /HAMI Programs 1) Original Note to USBHM 2) Copy of Mortgage (with complete legal description) 3) DPA Acknowledgement Form (signed by borrower) in file submission 4) Correct tax verbiage appears on the Note and Mortgage 5) HAMI LOANS Early and Final T-I-L s are required for USBHM to purchase 6) Florida Assist TIL is not a requirement of purchase by USBHM, however if your company policy/procedures do require completion of the TIL, then follow internal guidelines 7) Lenders are to fund 1 st and 2 nd mortgages USBHM will reimburse at purchase 8) Be sure to use the correct pre-printed forms located on Ehousing website

37 Hazard / Flood Hazard / Flood / Wind / Sinkhole Insurance Coverage & Deductible Requirements

38 Coverage Requirements-Hazard Ins. Amount of Coverage 1-4 Family properties must equal the higher of: The loan amount or 100% replacement cost of the insurable improvements as determined by the property insurer Full replacement cost coverage is also acceptable Condo s & PUD s amount of coverage must equal: 100% of the insurable improvements on a replacement cost basis. Blanket coverage is also acceptable. HO-6 insurance requires that policy be equal to at least 20% of the appraised value of the unit, unless Home Owner Association insurance covers the walls in content (Note: This must be escrowed for)

39 Coverage Requirements-Flood Ins. Amount of coverage for single family dwelling,1-4 Family unit, PUD or detached individual condo unit must equal the lower of: Loan amount Replacement cost of the insurable improvements or Maximum amount of coverage sold under applicable program of the NFIP for the type of improvements Condo (if high rise or vertical dwelling unit The building replacement cost or $250,000 multiplied by number of residential units in the building Condo properties in a flood zone will require the number of units to covered by both hazard and flood policies

40 New Coverage Requirement- Sinkhole Effective on loans that closed on or after June 10, 2011 Sinkhole will be required only in the following counties or if the appraiser has identified any settlement deficiencies and it is referenced on the property appraisal: Pinellas Pasco Hillsborough Hernando Same deductible requirements as homeowner insurance policy Proof of coverage may consist of the following: Clear evidence on declarations page of the hazard policy Letter from insurance agent, on company letterhead referencing borrower, property address, policy # clearly stating borrower has sinkhole coverage and signed by the insurance agent When sinkhole coverage is required, catastrophic ground collapse coverage is not acceptable in lieu of sinkhole coverage as it does NOT provide adequate coverage. It only pays out if property is uninhabitable

41 Insurance Deductibles Government Loans Hazard / Flood / Sinkhole Hazard / Flood Unless a higher maximum amount is required by state law, maximum deductible clause may not exceed the greater of $1,000 or 1 percent of the face amount of the policy 1-4 family; Individual PUD units; Individual condo units (i.e. detached condo s, town or row house) Deductibles may not exceed the higher of $1,000 or 1 percent of the policy s insurance limits for all covered losses. Association Policy requirements for CONDO/PUD Projects and common areas Windstorm / Hurricane The greater of $2,000 or 2% of the dwelling coverage

42 Insurance Deductibles Conventional loans Hazard / Flood / Windstorm / Hurricane Maximum deductible may not exceed 5 percent of the face amount of the insurance policy limits for dwelling coverage (applies to all perils) For 1-4 family; Individual PUD units; Individual condo units (i.e. detached condo s, town or row house) Maximum deductible may not exceed 5 percent of the face amount of the insurance policy (applies to all perils) Association Policy requirements for CONDO/PUD Projects and common areas;

43 Loan File and Post Close Trailing Document Deficiencies In order of the most common

44 Loan File Deficiencies Mortgage Note Missing Tax Exempt Riders Missing or incorrect tax verbiage information (corrective documentation does not state proper corrective verbiage) Property address differs from other docs Missing pages and/or legal description Blank or incorrect notary section (missing county, borrower s names, complete dates, seal or expiration date) Missing or incorrect endorsements (lenders not using U.S. Bank National Association) See Bulletin Property address differs from other docs Incorrect payment terms

45 Loan File Deficiencies Truth-In-Lending (TIL) Early T-I-L not in file on 1 st mortgage Final T-I-L not in file Corrective Final T-I-L, if applicable not in file MI under disclosed or not disclosed in payment stream Per Bulletin new form required MDIA bulletins & for reference Note: If loan is not compliant, it will not be purchased by USBHM and will be cancelled and returned!

46 Loan File Deficiencies HUD-1 Settlement Statement DPA not clearly identified or different amount than on other documentation Missing in file submission Tolerance violation in GFE fee comparison with and no cure documentation in the file (USBHM bulletin ) Missing monthly escrows or not collected escrows

47 Loan File Deficiencies Good Faith Estimate (GFE) Most recently issued in file does not match loan terms at closing (See RESPA Bulletin ) Initial Loan Application Interviewer date missing Missing from file submission Not properly documenting applicable date for timing of early TIL (see MDIA bulletins &

48 Loan File Deficiencies Hazard & Flood Policies Names & Addresses do not precisely match other docs Flood coverage inadequate Deductibles greater than what is required Flood policy missing Flood Zone from Certification Proof of payment not in file Manufactured Housing Documentation Exceptions identified related to USBHM 2007 bulletin Not providing evidence of title being surrendered Missing information on manufactured home not listed on Security instrument

49 Loan File Deficiencies Underwriting Documentation Missing AUS (DU) findings in the file submission Missing or unsigned or 1008 Questions from that arise either from missing information or documentation provided that is not accurate (Conventional loans) Assignment Missing from file Missing all recordings of the mortgage Not assigned correctly to U.S. Bank National Association (See USBHM Bulletin Incorrect reference to lender, borrower, and/or property information from mortgage

50 Loan File Deficiencies FHA Connection Closing date not correct ADP code not correct No evidence that UFMIP has been sent to FHA Compliance approval Not providing Ehousing appropriate documentation in order to approve loan for purchase

51 Post-Close Trailing Doc Exceptions Title Policy: Mortgage amount is missing Schedule A, item 4 contains incorrect mortgage recording information Name of insured is incomplete (needs to mirror mortgage and have it s successors and/or assigns ) Missing required endorsements Second Mortgages: Closing date is incomplete Missing marital status of borrower(s) Incorrect maturity date Legal description missing Tax Exempt Rider is recorded with Second Mortgage instead of the First Mortgage

52 Loan File Deficiencies Posted online for referral and communicated by Fax Weekly Exception Report Provide separate cover letter / sheet identified by USBHM loan number or attach weekly exception report to your submission Fax exceptions (216) or exceptions to mrbp.exceptions@usbank.com per USBHM bulletin NO inquiries should be directed to this mailbox! Inquiries should be directed to: mrbp.helpdesk@usbank.com Partial submissions are acceptable Exceptions are received and reviewed for accuracy Once ALL deficiencies are resolved loan purchased

53 Post Closing Documentation Organize documents in order of Final Document Checklist Docs due in our office no later than 120 days after purchase A $50 penalty fee may be assessed after 120 days (at a rate of $50 per month until last document has been received) Final Recorded Mortgages, Assignments, Riders, Title Policy, (MIC, LGC, LNG) ONLY! Deliver to: U S Bank Home Mortgage / Document Control Department Rockside Road Bedford, Ohio Questions? Contact Document Control Supervisor Darlene Kreigh darlene.kreigh@usbank.com (216)

54 Lender Compensation Origination : 0% Discount: 0% * SRP: 1.50% LENDERS NET: 1.50% All conventional products will be funded with an adjustment for the Adverse Market fee of.25%. MCM Loans ONLY! - LLPA s will be paid by Florida Housing

55 Loan Purchase Purchased Daily / Amortized Balance / Purchase Summaries Faxed Loan history is required, if payment activity has occurred Net Purchase: (no checks) Current principal balance, interest, SRP, starting escrow Bond Application Fee $ Tax Service Fee $85.00 Adverse market fee.25%, Conventional Extension Fee, if applicable.25% Second Mortgage Loan Application Fee $ (HAMI Only)

56 U. S. Bank Home Mortgage - MRBP Division Quick Reference Guide

57 USBHM-MRBP Website Access our website at select U S Bank Lending Manuals and link up to our information via AllRegs Lender manual Loan Delivery Checklists Product Descriptions U S Bank Lender Bulletins Manufactured Housing requirements (state specific)

58 Click on U S Bank Lending Manuals

59 Click on Continue

60 Click on Housing Finance Authority for dropdown USBHM Manufactured Housing Guidelines, 203ks manual & USBHM Bulletins can be found here

61 Click on Florida Housing to obtain information For access to Florida s product descriptions and Loan Delivery Checklists

62 Loan File Delivery Address All Closed Loan files should be delivered to: U.S. Bank Home Mortgage MRBP Division Rockside Road Bedford, OH Attn: Operations Department

63 Post Closing Trailing Document Delivery Address All Post Closing documents should be delivered to: U.S. Bank Home Mortgage MRBP Division Rockside Road Bedford, OH Attn: Document Control Department

64 Note Endorsements/Assignments U.S. Bank National Association

65 Loss Payee Clause Hazard/Flood Insurance U.S. Bank National Association its successors and or assigns as their interest may appear. c/o U.S. Bank Home Mortgage P.O. Box 7298 Springfield, OH

66 Lender Support (Help Desk) In an effort to provide all Lenders who participate in the program with easy access to facilitate Program Administration, we have a specialized Help Desk exclusively for that purpose Product information Pipeline information Loan level information Track lender performance quarterly (scorecard) and advise lender and Florida Housing of issues Any other support that you may require (8:00 a.m. EST - 6:00 p.m. EST) or mrbp.helpdesk@usbank.com

67 Shared Mailbox Addresses Exceptions sent for clearing should be submitted to: Loan status inquiries or general questions should be submitted to: Post funding requests should be submitted to: Examples of post funding requests: Request refund of MI Request refund of hazard ins. or taxes paid Assistance/DPA missed at funding Wire short due to error at funding Note: Do not send exceptions or loan status inquiries to this address

68 UW Contact Information Participating Lenders Prior to contacting USBHM, please reference specific Agency guidelines relative to product you are underwriting. If further clarification is still needed UNDERWRITERS ONLY can send questions via or call

69 Payment Information Borrower Payment Address and website: U.S. Bank Home Mortgage P.O. Box Bedford, OH Borrowers will receive a monthly statement Payments can be made online at: Borrower can also access payment transaction & loan information.

70 Customer Service Toll Free Number (800) Hours: Monday Friday 7:00 am 8:00 pm EST Please give this information to your borrowers at loan closing

71 RESPA Websites RESPA FAQ s: Sample GFE: Sample HUD-1: RESPA Rule:

72 Underwriting References Fannie Mae References FHA References Guide rev 5 FHA website Other References Allregs: VA: USDA-RD:

73 Thank you for participating in the Florida Housing programs