TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS TDHCA FHA Streamline Refinance Program

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1 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS TDHCA FHA Streamline Refinance Program FOR TMP 79 LOANS - SERVICER LOAN NUMBER FOR LOANS WITH MCC - MCC NUMBER NOTICE TO BUYERS Texas Department of Housing and Community Affairs ( TDHCA ) created its Taxable Mortgage Program (TMP-My First Texas Home) and its Texas Mortgage Credit Certificate Program (MCC) to help make ownership of new or existing homes more affordable for individuals and families of low and moderate income in the State of Texas, especially first-time buyers. The Taxable Mortgage Program (My First Texas Home) provides the homebuyer with a 30-year fixed interest rate mortgage loan and assistance to be used towards down-payment and/or closing cost assistance. The Texas Mortgage Credit Certificate (MCC) Program provides the homebuyer with a mortgage credit certificate which increases a family s disposable income by reducing its federal income tax obligations. This tax savings provides a family with more available income to qualify for a loan and meet mortgage payment requirements. In order to participate in either or both Programs, the homebuyer(s) must meet certain eligibility requirements, purchase a home and obtain a mortgage loan and/or MCC through a participating lender. The eligible loan area consists of the State of Texas. The Programs are administered by TDHCA. If your home was financed using a TMP mortgage loan, you may qualify for the TDHCA FHA Streamline Refinance Program. The residence must be occupied as your principal residence and it may not be used as an investment property, vacation, or recreational home. You will be required to immediately notify the Servicer in writing if the residence refinanced using the TDHCA FHA Streamline Refinance Program ceases to be your principal, permanent residence. If you also receive a reissued MCC, the residence must also be occupied as your principal residence and it may not be used as investment property, vacation, or recreational home. If the residence ceases to be your principal residence, you will be required to immediately notify TDHCA and the MCC will be revoked. ELIGIBLE BORROWERS All borrowers with an existing loan funded under the Program that qualify for an FHA Streamline Refinance are Eligible Borrowers. The original loan must have closed prior to January 26, INFORMATION FOR BORROWERS WITH AN EXISTING MORTGAGE CREDIT CERTIFICATE (MCC) General Information: Generally, an MCC may not be issued to refinance existing mortgages. However, if a borrower was issued an MCC in connection with the loan that is being refinanced under this program, an existing MCC may be reissued to the borrower so long as certain requirements (described in part below) are met. If an MCC is reissued, no portion of the original MCC may remain outstanding. Property: The reissued MCC must be made in connection with the same property as the original MCC. Effective Date: The reissued MCC will be in effect as of the date on which interest begins accruing on the refinancing loan. Certified Mortgage Indebtedness Amount: The certified mortgage indebtedness amount on your reissued MCC will reflect the remaining outstanding balance of the loan amount indicated on your original MCC. Thus, if the principal amount of your refinanced loan is higher than the outstanding amount of your original loan, the reissued MCC will not reflect the higher amount. Benefit Amount: The size of your annual tax credit is a specified percentage (the certificate credit rate ) of the annual interest paid on your mortgage loan, subject to a $2,000 per year limit. The certificate credit rate on your reissued MCC cannot be higher than the rate specified on your original MCC. Further, for any tax year, the credit resulting from a reissued MCC cannot be higher than the credit that would have been available under the original MCC, determined by multiplying the interest that was scheduled to have been paid on the original loan by the certificate credit rate on the reissued MCC. Finally, the credit cannot be larger than your annual federal income tax liability, after all other credits and deductions have been taken into account. MCC credits in excess of your current year tax liability may, however, be carried forward for use in the subsequent three years.

2 FOR TMP 79 LOANS - SERVICER LOAN NUMBER FOR LOANS WITH MCC - MCC NUMBER Length of Benefit: The reissued MCC will be in effect for the life of your original mortgage loan, so long as the residence remains your principal residence. Thus, if your refinanced loan extends the life of your loan such that you are making payments past the maturity date of the original loan, you may only claim a tax credit through the year of original maturity. Assumption of Loan: As with the original MCC, a reissued MCC can be transferred only upon issuance of a new certificate by TDHCA. The person assuming your loan will have to qualify just as a new borrower would be required to qualify under the MCC Program. Recapture of Tax Credit: As with the original MCC, a reissued MCC will be subject to certain requirements imposed by federal law concerning the recapture of a portion of the mortgage tax credit benefits granted to you upon the sale of your residence within nine years from the date of original purchase. In no event will the recapture tax exceed the lesser of (i) 6.25% of the highest principal balance of your mortgage or (ii) one half of your taxable gain on the sale of your residence. Reissuance of MCC: If TDHCA issued your MCC you will need to fill out the refinancing application. Upon review of the information, TDHCA will reissue you a new certificate. Visit the TDHCA website for the Refinancing of MCC Loan Application: DISCLOSURE OF APPLICANT INFORMATION The applicant(s) hereby consent and agree that all information furnished by the applicant(s) to the participating lender and TDHCA, including but not limited to, non-public personal and financial information in connection with the application for a refinancing of a mortgage loan under the Taxable Mortgage Program or an MCC, may be disclosed to any person or other third parties in connection with the processing of the application, verification of information concerning the refinancing of a TMP loan or MCC, the loan or the applicant(s), and for any other purpose in furtherance of or connected with the Program. Date APPLICANT Printed Name of Applicant APPLICANT OR NON-BORROWING SPOUSE (Non-borrowing spouse applicable to MCC only) Printed Name of Applicant OR Non-Borrowing Spouse

3 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS APPLICANT AFFIDAVIT There are important legal consequences to this Affidavit. Please read carefully before signing. FOR TMP 79 LOANS - SERVICER LOAN NUMBER FOR LOANS WITH MCC - MCC NUMBER STATE OF TEXAS COUNTY OF LOAN AMOUNT: $ LENDER: The undersigned, as part of my(our) application for a refinancing loan under the Department s FHA Streamline Finance Program with a refinancing loan from a participating lender of my(our) choice for a single-family residence that is my(our) permanent, primary residence, being first duly sworn state the following information to be true and correct: APPLICANT LAST NAME, FIRST, MIDDLE CO-APPLICANT LAST NAME, FIRST, MIDDLE ADDRESS BEING REFINANCED TEXAS CITY, COUNTY, ZIP CODE APPLICANT FURTHER CERTIFIES THAT: The residence will continue to be occupied as my (our) principal residence, will not be used as investment property, vacation, or recreational home; and I(we) will immediately notify the Servicer in writing if the residence ceases to be my(our) principal, permanent residence. This Affidavit will be relied upon for the purposes of determining my(our) eligibility and if any information contained in this Affidavit contains a material misstatement which is due to fraud or intentionally made, I(we) are subject to criminal penalty. Further, I(We) state not APPLICANT CO-APPLICANT Printed Name of Applicant Printed Name of Co-Applicant Sworn to and subscribed before me on the day of, 20. PERSONALIZED SEAL Notary Public Signature

4 SUBORDINATION AGREEMENT BY AND BETWEEN THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS AND FIRST LIEN LENDER NAME STATE OF TEXAS COUNTY OF WHEREAS, the TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas (hereinafter called Subordinate Lender ) is the owner and holder of that certain Subordinate Lien Down Payment Assistance (DPA) Note executed by BORROWER S NAME, a single person, husband and wife (hereinafter called Grantor, whether one or more), in the original principal amount of $, made payable to the Subordinate Lender, dated, (hereinafter called Subordinate Note ), which is secured by a Subordinate Lien Deed of Trust (hereinafter called Subordinate Deed of Trust ) dated of even date with Subordinate Note, executed by Grantor to Timothy K. Irvine, Trustee for the benefit of the Subordinate Lender, recorded on under Instrument No., in Volume, Page of the Official Public Records of County, Texas (the Records ), upon and against the following described real property: AUTO-FILL LEGAL DESCRIPTION which has the address of County, Texas. WHEREAS, Subordinate Lender has been requested to subordinate its lien(s) to a first lien deed of trust (hereinafter called First Lien Deed of Trust ) executed by Grantor on, 20, to, Trustee for the benefit of whose address is (hereinafter called First Lien Lender ), to be recorded in the Records, securing a first lien note in the original principal amount not to exceed $, (hereinafter called First Lien Note ), executed by Grantor, payable to First Lien Lender, said First Lien Note advanced to discharge a lien described in a deed of trust dated to, Trustee for the benefit of, recorded on under Instrument No., in Volume, Page of the Records, securing a note in the original principal amount of $, executed by Grantor payable to ; and WHEREAS, First Lien Lender declines to make the loan to Grantor unless its lien shall be a FIRST AND SUPERIOR lien to any and all liens against the herein described property. NOW, THEREFORE, in consideration of the premises, it is hereby agreed that Subordinate Lender, the owner and holder of Subordinate Note and the liens securing same, in consideration of the premises, the making of the loan by First Lien Lender to Grantor as hereinabove described, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, does hereby subordinate its Subordinate Deed of Trust lien above described to the First Lien Deed of Trust lien in favor of the First Lien Lender securing payment of First Lien Note, and any renewals and extensions thereof. First Lien Lender s lien shall remain superior to the lien subordinated hereby so long as First Lien Note, or any part thereof, remains unpaid. The First Lien Deed of Trust securing payment of First Lien Note may contain such covenants, conditions and agreements, including the power of acceleration of maturity of the indebtedness and the sale of the land, as the First Lien Lender may require and determine necessary to make its loan.

5 FURTHER, this subordination is specifically limited to the above described property and improvements (if any) and if the Subordinate Deed of Trust securing Subordinate Note should encompass more than the above described property, this subordination shall affect the lien securing the Subordinate Note only as said lien affects the above described property and none other. This subordination is made without warranty, representation, or recourse as against or by the undersigned and applies only to the extent and to the specific property described above. All liens not hereby subordinated are hereby retained in the priority established by recordation in the property records. EXECUTED this day of, 20. SUBORDINATE LENDER: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas By: Name: Title: Duly authorized officer or representative STATE OF TEXAS COUNTY OF TRAVIS This instrument was acknowledged before me this day of, 20 by, duly authorized officer or representative of the TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas, on behalf of said agency. (Seal) Notary Public, State of Texas APPROVED, ACKNOWLEDGED AND CONSENTED TO BY: FIRST LIEN LENDER: [NAME OF FIRST LIEN LENDER], a AFTER RECORDING RETURN TO: By: Name: Title: U. S. Bank Home Mortgage Rockside Road Bedford, Ohio Attn: Document Control

6 MODIFICATION AND EXTENSION AGREEMENT THE STATE OF TEXAS COUNTY OF Basic Information Date: Holder of Note and Lien: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas Holder s Mailing Address: P.O. Box 13941, Austin, Travis County, Texas Obligor: Obligor s Mailing Address: Subordinate Lien Down Payment Assistance (DPA) Note ( Note ): Date: Original principal amount and 00/100 Dollars ($ ) Borrower: Lender:, a TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas Final Maturity Date: Unpaid Principal and Interest on Note: Principal of $ Lien Documents: Subordinate Lien Deed of Trust from Borrower to Timothy K. Irvine, Trustee, for the benefit of Lender, dated, recorded on, in Volume, Page, of the Official Public Records of County, Texas, securing the payment of the Note. Property (including any improvements): In County, Texas, being more particularly described above and as follows: (AUTO-FILL LEGAL DESCRIPTION) Modified Terms: Extended Final Maturity Date of Note: 1. BORROWER S PROMISE TO PAY In return for a loan that I have received, I promise to pay U. S. $ (this amount is called Deferred Principal ) to the order of the Lender on, the date that is [years/months] from the date of this Note (the Final Maturity Date ). The Lender is Texas Department of Housing and Community Affairs, a public and official agency of the State of

7 Texas ( TDHCA ). I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the Note Holder. Obligor s Covenants and Warranties The Note is secured by liens against the Property. Whether Obligor is primarily liable on the Note or not, Obligor nevertheless agrees to pay the Note and comply with the obligations expressed in the Lien Documents, as modified and extended pursuant to this agreement. For value received, Obligor renews the Note and promises to pay to the order of Holder of Note and Lien, according to the Modified Terms, the Unpaid Principal and Interest on Note. All unpaid amounts are due by the Extended Final Maturity Date of Note. Obligor also extends the liens described in the Lien Documents. Obligor warrants to Holder of Note and Lien that the Note and the Lien Documents, as modified, are valid and enforceable and represents that they are not subject to rights of offset, rescission, or other claims. When the context requires, singular nouns and pronouns include the plural. This agreement is executed to be effective as of the date first above written. OBLIGOR: By: Name: [By: Name: ] STATE OF TEXAS COUNTY OF This instrument was acknowledged before me on this day of, 20 by. (Seal) Notary Public, State of Texas STATE OF TEXAS COUNTY OF This instrument was acknowledged before me on this day of, 20 by.. (Seal) Notary Public, State of Texas]

8 HOLDER OF NOTE AND LIEN: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas By: Name: Title: Duly authorized officer or representative STATE OF TEXAS COUNTY OF TRAVIS This instrument was acknowledged before me on this day of, 20, by, duly authorized officer or representative of the TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas, on behalf of said agency. (Seal) Notary Public, State of Texas PREPARED BY: AFTER RECORDING RETURN TO: Texas Department of Housing U. S. Bank Home Mortgage and Community Affairs Rockside Road Legal Services Bedford, Ohio E. 11 th Street Attn: Document Control Austin, Texas 78701

9 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS TDHCA FHA Streamline Refinance Program TDHCA PRE-CLOSING CHECKLIST MORTGAGOR(S) LENDER NAME LENDER # CONTACT NAME Contact AC & Phone Contact TO ASSURE THE FASTEST REVIEW OF YOUR FILE, PLEASE PROVIDE THE FOLLOWING IN THE ORDER SHOWN. PLEASE DO NOT SEND INCOMPLETE FILES. This Checklist o o o o Subordination Agreement Modification and Extension Agreement Copy of Recorded First and Second Lien Deed of Trust or Copies of Schedule A & C of the Title Commitment Copy of Preliminary HUD1 THE COMPLETE FILE IS SUBMITTED TO TDHCA via one of the following: (1) Via (scan/pdf) to: hphprlp@tdhca.state.tx.us (preferred method of submission) (2) Via Overnight to: Candace Christiansen, TDHCA Loan Servicing, 221 East 11th Street, Austin, TX (3) Via Mail to: Candace Christiansen, TDHCA Loan Servicing, P.O. Box 13941, Austin, TX LENDER: Please provide address to which signed documents are to be returned:

10 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FOR TMP 79 LOANS - SERVICER LOAN NUMBER FOR LOANS WITH MCC - MCC NUMBER AFFIDAVIT OFCOSIGNOR/GUARANTOR There are important legal consequences to this Affidavit. Read carefully before signing. Rev 5/12/2014 THE STATE OF TEXAS COUNTY OF I/we the undersigned, as an obligor on a note (the Note ) made in connection with a mortgage loan (the Mortgage Loan ) being submitted by the Applicant(s) under the Department s Taxable Mortgage Purchase Program ( TMP ) and/or Mortgage Credit Certificate Program ( MCC Program ): APPLICANT LAST NAME, FIRST, MIDDLE CO-APPLICANT LAST NAME, FIRST, MIDDLE in the amount of $ from (the Mortgage Lender ) under TMP and/or the MCC Program, hereby certify that I/we are executing the note solely for purposes of providing additional security for the Mortgage Loan. I/We further certify that I/we have no other financial or ownership interest in the property subject to the Mortgage Loan and that I/we have no intention to and will not occupy the property subject to the Mortgage Loan as a permanent/primary residence. The statements set forth herein are made under penalty of perjury. I/we understand that perjury is a felony punishable by fine, imprisonment or both. Dated Signature of Cosignor/Guarantor Printed Name of Cosignor/Guarantor Dated Signature of Cosignor/Guarantor Printed Name of Cosignor/Guarantor Sworn to and subscribed before me on this day of,. PERSONALIZED SEAL Notary Public Signature

11 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS TDHCA FHA Streamline Refinance Program COMPLIANCE FILE CHECKLIST SERVICER LOAN NUMBER APPLICANT(S) LENDER NAME LENDER # CONTACT NAME: AC & PHONE NUMBER OF CONTACT PERSON TO ASSURE THE FASTEST REVIEW OF YOUR FILE, PLEASE PROVIDE THE FOLLOWING IN THE ORDER SHOWN. PLEASE DO NOT SEND INCOMPLETE FILES. This Checklist o ORIGINAL SIGNED or Certified Copy - Notice to Buyers o ORIGINAL SIGNED or Certified Copy - Applicant Affidavit (must be notarized) o ORIGINAL SIGNED or Certified Copy Affidavit of Co-Signor/Guarantor (if applicable) o COPY of Final Executed Loan Application 1003 o COPY of Executed Settlement Statement - HUD1 THE COMPLETE FILE IS SUBMITTED TO ehousingplus: (1) Via Mail or Overnight to : ehousingplus, 3050 Universal Boulevard, Suite 190, Weston, FL (2) Via (scan/pdf) to: ehp.tdhca79@ehousingplus.com PLEASE NOTE: TMP REFINANCE MORTGAGE FILE AND DPA LOAN MODIFICATION ARE SEN

12 221 East 11th Street Austin, Texas Phone: (512) East 11th Street Austin, TX Phone: (512) DATE Participating Lender Address RE: Legally Enforceable Obligation Letter For HUD ML and HUD Handbook B.5. a Gift Letter Borrower(s) Property Address Servicer Loan Number First Mortgage Loan Amount $ Second Mortgage Loan Amount $ Please be advised that the Texas Department of Housing and Community Affairs (TDHCA) a governmental entity as recognized by the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA), has, at or before closing of the First Mortgage Loan described above, incurred a legally enforceable obligation to provide its own funds for the borrower's Minimum Cash Investment. TDHCA has agreed to extend the amount of funds as a second mortgage, repayable as indicated below. In addition to retaining this commitment letter in your loan file, you must also satisfy FHA insurability requirements for the First Mortgage Loan originated in conjunction with the Second Mortgage Loan referenced above. TDHCA hereby agrees to purchase the Second Mortgage Loan referenced above which will be funded, upon closing, by Participating Lender. Purchase of the Second Mortgage Loan will occur at the time of the First Mortgage Loan purchase by US Bank Home Mortgage and as specified in the Master Mortgage Origination Agreement between Participating Lender and TDHCA. Texas Department of Housing and Community Affairs - Down Payment Assistance Program - Second Mortgage Loan- Loan Terms: No interest will be charged. Repayment is deferred, except in the event of the sale, transfer, satisfaction of the first mortgage, refinancing of the first mortgage or if borrower(s) cease to occupy the property as their primary residence, at which time TDHCA's Second Mortgage Loan will become repayable in full. The loan will be secured by a second mortgage lien on the property referenced above for the benefit of TDHCA Cathy Gutierrez, Director of Texas Homeownership Texas Department of Housing and Community Affairs Borrower Signature Date Co-Borrower/Spouse Signature Date REVISED 05/17/2015