FHA Streamline Refinance Program. Do not distribute. Use the Administrator Guidelines for reference. Copyright ehousingplus 2015.

Transcription

1 FHA Streamline Refinance Program

2 REQUIREMENTS ELIGIBLE LENDERS Must be an approved TDHCA TMP 79 Lender. ELIGIBLE LOANS Loans funded through TMP-79 are eligible for refinance as long as the loan was closed before January 26, 2015 and meets all requirements of the TDHCA FHA Streamline Refinance Program.

3 REQUIREMENTS LOAN TYPE: 30-year, fixed rate FHA Streamline Refinance RATE: Specified in the Commitment Lot notice INCOME AND PURCHASE PRICE LIMITS: None HOMEBUYER EDUCATION: None

4 REQUIREMENTS REIMBURSABLE REFINANCE COST Lenders will be reimbursed for actual fees and expenses incurred by the Lender related to Mortgage Loans originated under the Program, excluding FHA upfront mortgage insurance premiums, and subject to the limits described on the following slides.

5 REQUIREMENTS REIMBURSABLE REFINANCING COSTS INCLUDE: (but are not limited to) a credit report fee. title insurance fee and expenses. escrow deposit amounts required for closing AFTER application of all unused borrower funds (escrow amounts) from the existing mortgage being refinanced. other usual and customary closing costs, but only to the extent that such charges do not exceed the reasonable and customary amounts charged by the Mortgage Lender and only if and to the extent permitted by FHA.

6 REQUIREMENTS MAXIMUM REIMBURSABLE REFINANCING COST $3,500 Lender reimbursement for Reimbursable Refinancing Costs is limited to the Maximum Reimbursable Refinancing Costs detailed on previous slide (subject to adjustment by TDHCA). Eligible borrower may be charged an amount in excess of the Maximum Reimbursable Refinancing Costs detailed above. Must be paid at closing, cannot be added to the loan amount. Lender may pay on behalf of borrower, but will NOT be reimbursed.

7 REQUIREMENTS Reimbursable Refinancing Costs paid by the Lender will be repaid to the Lender upon sale of the Mortgage Loan to the Servicer. The Mortgage Loan Purchase Price paid by the Servicer to the Lender will include the Reimbursable Refinancing Costs.

8 REQUIREMENTS PROGRAM RELATED FEES Zero Origination and Zero Discount Fees Compliance Fee: None* Tax Service Fee: None* Funding Fee: None* *These fees are being absorbed by TDHCA SERVICE RELEASE PREMIUM 2.00%

9 PRE-CLOSING PROCESS Prior to loan closing, Lender/Title Company submits to TDHCA: Pre-Closing Checklist 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 HUD-1

10 PRE-CLOSING PROCESS COMPLETE FILE IS SUBMITTED TO TDHCA VIA ONE OF THE FOLLOWING METHODS: 1. Via (scan/pdf) to: (PREFERRED METHOD) 1. Via overnight to: Candace Christiansen, TDHCA Loan Servicing, 221 East 11 th Street, Austin, TX Via mail to: Candace Christiansen, TDHCA Loan Servicing, P.O. Box 13941, Austin, TX

11 PRE-CLOSING PROCESS Loan Servicing Coordinator submits Note Modification, Subordination Agreement, and preliminary HUD-1 to Bond Finance Director for signature Loan Servicing Coordinator sends executed Note Modification and Subordination Agreement to Lender or Title Company (whichever is requested) for closing and execution by borrower.

12 POST-CLOSING PROCESS Title Company/Lender will submit copies (may/may not be certified) of the fully executed Subordination Agreement and Note Modification to Loan Servicing Coordinator Title Company will send the original Subordination Agreement and Note Modification to the appropriate county clerk for recording. After recording the original, recorded Subordination Agreement and Note Modification will be submitted directly to USB. Lender submits Closed/Purchase file to US Bank for Purchase Review

13 REQUIREMENTS REISSUE MORTGAGE CREDIT CERTIFICATE Eligible Borrowers using the TDHCA FHA Streamline Refinance Program that also obtained a mortgage credit certificate from the Department in connection with the original purchase of their Residence may apply for a reissued Mortgage Credit Certificate. Borrowers may visit the TDHCA website for the Refinancing of MCC Loan Application.

14 REQUIREMENTS SECOND MORTGAGE SUBORDINATION TDHCA will re-subordinate second mortgages to facilitate the refinancing and will modify the maturity date of the second lien to match the maturity date of the new loan.

15 SECOND MORTGAGE RE-SUBORDINATION PROCESS 1. Reserve the loan based on the Streamline Refi process 2. Prior to closing, send TDHCA (Pre-Closing Checklist) Modification and extension agreement Subordination agreement 3. TDHCA approves and signs, and returns to lender 4. Lender generates Checklist, Notices to Buyers, Affidavit 5. Lender closes Refi

16 SECOND MORTGAGE RE-SUBORDINATION PROCESS 6. Lender sends compliance file to ehousingplus 7. Lender sends mortgage file to US Bank 8. ehousingplus reviews & approves compliance file for purchase 9. US Bank reviews & purchases the Refi loan

17 TIMELINE 60 DAYS FROM LOAN REGISTRATION TO LOAN PURCHASE FINAL PURCHASE DATE: Identified on the loan confirmation available through the ehousingplus Lender Portal (60 days after loan registration) Any FHA Streamline loan not purchased within 60 days is ineligible for purchase unless the lender chooses a one-time extension.

18 EXTENSION REQUEST OFFERED ONCE PER LOAN 30-day extension for a fee of 0.375% of the principal amount of the mortgage note Extension Fee netted from the purchase price paid to the Mortgage Lender by the Servicer U.S. Bank. Extension fee is due whether or not loans are ultimately delivered and/ or purchased

19 EXTENSION REQUEST OTHER FINANCING FACTS Cash Back: NOT PERMITTED (except for minor adjustments at closing permitted by FHA) Appraisal: Not required for streamline refi FICO: Minimum 660 and may be verified with a FICO Score Report Escrows: Netted from the payoff only with written authorization from the borrower

20 Thank you for attending.