Texas Veterans Land Board Housing Assistance Program

Transcription

1 Texas Veterans Land Board Housing Assistance Program Citibank Correspondent Lending Special Programs Division October-2015

2 Texas Veterans Land Board Eligibility Veterans living in Texas are eligible if they: Eligibility Requirements At least 18 years of age A Bona Fide and legal resident of Texas on the date of application and meet the following requirements. Service Requirements An active duty military member. A member of the Texas National Guard. A reserve component military member having completed 20 qualifying year for retirement. A Veteran having served at least 90 active duty days unless discharged sooner due to service connected disability and not discharged dishonorably. A surviving spouse of a Veteran listed as missing in action or whose death was service connected. Have successfully repaid any previous TVLB loan 1

3 Texas Veterans Land Board Eligibility (Cont d) Download Forms from website Required Forms Request for Certification VLB Form 41 Veteran s Declaration of Eligibility VLB Form 42 DD-214/Statement of Service Verify Veteran has completed and signed all applicable forms Submit forms Via to [email protected] By fax to the Austin VLB office at By mail: Texas Veterans Land Board P.O. Box Austin, Texas

4 3 Request for Certification VLB Form 41

5 4 Veteran s Declaration of Eligibility VLB Form 42

6 5 DD-214/Statement of Service

7 Pricing Rates are published by TVLB every Monday morning and are good through Friday on VLB s website at Current Interest Rate: * The lock period is 60 days Rate Reductions: Veteran s w/ Disabilities:.50 bps Disaster Relief Initiative:.25 bps *VLB Base Rate and rate reductions are subject to adjustment on the first business day of each week. 6

8 Program Options Veterans with Disabilities Program.50% reduction of Note rate The Veteran must have a compensable service-connected disability of 30% as verified by the U.S. Department of Veterans Affairs The TVLB will accept the following as evidence: Current Certificate of Eligibility (COE) that reflects the disability compensation amount that is at least 30 % based on VA s compensation chart, VA Award Letter/Letter of Indebtedness dated within 12 months of closing. Review the approved documentation to determine the Veteran has a service-connected disability of at least 30% prior to obtaining an interest rate commitment. Include a copy of the approved documentation in the file submission package. 7

9 Program Options Disaster Relief Initiative.25% reduction of Note rate For any VHAP- eligible Veteran whose primary residence (either owned or rented) was destroyed by the Disaster and who qualifies for home purchase financing under VHAP guidelines (see VLB bulletin #15-03 for further information) The eligible Veteran must have resided in a Texas county that has been declared a disaster area (by either FEMA or the Texas Governor). A listing of applicable counties can be found in the Governor s proclamation of July 30, 2015, under his authority as Governor pursuant to Section of the Texas Government Code, 22 which is available at the following website - ( Disaster Declaration ). In addition to standard VHAP eligibility, the Veteran s residence must have been destroyed by the event leading to the Disaster Declaration. Interested Veterans must contact the VLB to obtain the required Disaster Program Affidavit prior to applying for a loan with Citibank. Lenders must present to Citibank the proposed borrower s Notice of Eligibility prior to receiving a rate lock as the form will include verbiage from VLB indicating approval for discount. The VHAP Certification of Eligibility Application has been revised and can be found on the VLB website at along with the Disaster Affidavit they will be required to complete. 8

10 9 Affidavit Disaster Relief Initiative

11 Loan Registration Notice of Eligibility must be issued prior to obtaining a lock confirmation. (Will include approval for new rate reduction) Due to verification with TVLB Administration, lock process may be up to 48 hours to ensure rate and eligibility. If Notice of Eligibility is not issued when lock is submitted this could cause worse case pricing based on the date the Eligibility is received. Lock is good for 60 days which includes closed loan delivery to Citibank NOTE: Items with arrows are common information we see missing when lock is submitted and we may require an updated lock request. 10 If your client is an applicant for the Veterans with Disabilities Program, you must check the designated box and provide the correct rate information

12 Loan Eligibility Products: VA, FHA and Conventional Loan Limit: $417,000 (not to exceed FHA limits for area) Maximum LTV Conventional: One Note-95% FHA: maximum allowed by FHA VA: max allowed by VA and the guaranty and down payment must equal 25% of the lesser of the CRV or sales price Eligible Terms: 15-, 20-, 25- or 30-year loan terms 11

13 Loan Eligibility (Cont d) Eligible Lending Area: wholly located within the boundaries of the State of Texas No Maximum Acreage Owner Occupied Only Assumptions generally not allowed Down Payment Assistance: borrowers can obtain a gift from a relative or a grant from an employer or a public agency (gifts or grants from non-profit organizations need prior approval) Refinances, except Construction to Permanent refinances, are not allowed Construction to Permanent Financing Interim financing cannot exceed 24 months Veteran must sign the TVLB Take Out Affidavit and provide a copy of the interim financing agreement (as referenced on Renewal and Extension Rider) 2-4 family units are NOT eligible One-Time Closings are NOT eligible 12

14 Property Types Single Family Detached/Attached Townhouse or Town Home Condominium 2-4 units constructed at least 5 years prior to loan closing Manufactured Housing FHA/VA only per GNMA guidelines SFR Factory Built after June 15, 1976 Delivered on site in at least two sections Permanent Foundation Dimensions not less than 20 ft x 40 ft Sloping Roof Not Eligible: Mobile Homes 13

15 ENERGY STAR Program All new construction loans must meet the U.S. Environmental Protection Agency s (EPA) ENERGY STAR rating as an energy efficient home or A HERS Index Score of 75 or less following the RESNET National Home Energy Rating Standards and must have an energy rating Certificate that documents the HERS Index score of 75 or less to be eligible for purchase. We will accept all versions as long as the rating, address and HERS rater signature is on the form. A government-backed symbol for a home that is significantly more energy efficient than a standard home Rating obtained from an independent third-party who is accredited by RESNET ( Property must achieve an ENERGY STAR rating or A HERS Index score of no more than 75 to participate in the VHAP program Copy of the ENERGY STAR certificate or TVLB approved HERS certificate with score must be included in file 14

16 Fraud Report Corr Manual Section Fraud Mitigation Fraud Mitigation All loan files submitted for purchase must include a commercially available current, automated, composite fraud report covering six basic elements ("Fraud Report"). Correspondents are required to run and provide a copy of a Fraud Report for each loan submitted to Citi for purchase and show evidence of resolution for any reported issue. The Report and evidence of resolution, if needed, must be provided prior to loan purchase. Alert Types At a minimum, the following six elements must be addressed in the Fraud Report: Alert Types Social Security Number ("SSN") Require Elements in Alert Type Verify borrower/co-borrower's SSN including, but not limited to, database checks to identify: Deceased, never been issued, invalid, SSN not associated with name, date of birth date range inconsistent with SSN issue date, additional names associated with the SSN Address Phone Number Employment Liabilities Property alerts Verify borrower/co-borrower's current address Verify borrower/co-borrower's current phone number Verify borrower/co-borrower's current employer's address Must run a MERS report on borrower/co-borrower and confirm no undisclosed real estate liability obtained before closing subject loan. Subject property address verification 15

17 Fraud Report Corr Manual Section Fraud Mitigation Acceptable Vendors There are many vendors able to supply a Fraud Report. Listed below are vendors whose reports using the above elements Citi has found acceptable. Company Fraud Tool Name CoreLogic 1 LoanSafe Fraud Manager, Encore, LoanSafe Risk Manager, and LoanSafe 2.0 Interthinx Data Verify (a CBCInnovis family company) Kroll Factual Data Digital Risk LPS Verification Bureau Veri-Tax Lexis Nexis PitchPoint Solutions, Inc. Fraud GUARD DRIVE Risk Suite Fraud Products (Identity Report with Fraud Score, Collateral Fraud Analysis, and Income and Employment Fraud Analysis) Risk IQ 1003 Appscan must also include a MERS report Veri-Tax Mortgage Fraud Report must also include a MERS report Mortgage Fraud Report must also include a MERS report PitchPoint Mortgage Fraud Report Avantus3 LoanShield Borrower Review 2 1. CoreLogic - this company (a spinout of First American Corporation) provides products formerly offered by First American CoreLogic and BasePoint Analytics. Encore is a hybrid product that combines a Credco tri-merge credit report with the CoreLogic LoanSafe 2.0 or Fraud Manager Tools and MERS. 2. In order to use Avantus LoanShield Borrower Review with MERS alerts, the lender must have an established MERS Member Number and have provided it to Avantus prior to requesting the fraud report.

18 Appraiser-Monitor/Ineligible List Corr Manual Section Appraiser Requirements Appraiser Eligibility In an effort to assist Correspondents in the selection of an appraiser, Citi posts an Appraiser- Monitor/Ineligible List (on the Forms page of the Citi Correspondent website) instead of an Approved Appraiser List. Correspondents may use any appraiser NOT on the Appraiser- Monitor/Ineligible List, subject to the other guidelines for appraisers and their appraisals set forth in this Manual. The Appraiser- Monitor/Ineligible List will show two categories of appraisers: 1. Appraisers that will require "monitoring" will be identified on the list with the caption "AMC Field Review Required" and Correspondents must take the following additional step: Correspondents submitting loans for purchase with an appraisal from an appraiser designated on the list with the caption "AMC Field Review Required" will also be required to obtain a Field Review from any Appraisal Management Company (AMC) to validate the finding of the original appraisal before the loan will be considered further for purchase. The Field Review Appraiser used cannot appear on the Appraiser- Monitor/Ineligible List. If a Field Review is ordered, verify the value of the Field Review is equal to or lower than the appraised value and the lowest value should be used to close the loan. If the appraisal was ordered prior to the date the appraiser was added to the list, Citi will review the appraisal for exception approval. if the appraisal was ordered after the appraiser was added to the list, a field review from any Appraisal Management Company (AMC) is required to validate the finding of the original appraisal before the loan will be considered further for purchase. The Field Review Appraiser used cannot appear on the Appraiser- Monitor/Ineligible List. 2. Appraisers whose appraisals are ineligible for submission to us will be designated on the list with the caption "Appraiser Ineligible" and the following rule will apply: Citi will not purchase loans based on appraisals prepared by appraisers designated on the list with the caption "Appraiser Ineligible". If the appraisal was ordered prior to the date the appraiser was added to the list, Citi will review the appraisal for exception approval; if the appraisal was ordered after the appraiser was added to the list, the appraisal is not acceptable. A new appraisal must be ordered. NOTE: Adherence to the Appraiser- Monitor/Ineligible List is required for all Conventional, FHA and VA loan transactions, including bond, and VLB. The Appraiser- Monitor/Ineligible List is posted on the Citi Correspondent website and updated daily. A website login is required to access the list. NOTE: Our review process for VA loans is to submit the appraisal to our Appraisal Collateral department for an additional review. Once we receive those results we will notify the correspondent if additional items will be needed. There is nothing required from the lender unless we notify you of additional items. 17

19 Underwriting Automated Underwriting DU and LP are acceptable for Conventional, FHA and VA loans Appraisals must provide for interior/exterior inspections. Appraisal Form 1004 is required Standard mortgage insurance coverage must be obtained regardless of the AU findings Please follow agency guidelines for minimum FICO score 17

20 Allowable Fees Reasonable and customary (e.g., 1% origination fee and actual costs for appraisal fees, title insurance, credit report, etc.) 1% Participation Fees (optional) on the Program Loan. (This fee may not be financed with an FHA or VA loan.) No Discounts Allowed Review Fee: $200 Review fee (cannot be passed to veteran) $70 Tax Service Contract fee for government loans $89 Tax Service Contract fee for conventional loans $10 Life of loan Flood Monitoring fee 18

21 Loan Packaging and Delivery Two checklists Citi Special Programs File Checklist and Stacking Order o Located at under operation procedures Exhibit # 6 TVLB checklist (To be used as a guide, you do not need to upload 2 packages) o Located at under programs, select state then View Program. Click to Save the word document. Turn time for review is 4-10 business days but are currently experiencing hour turn times; pending letter sent after review. Pended report is sent daily for all loans in pended status. Lenders are required to upload loan files to Citi s secure website. Please contact customer relations to set up a short training call at Loans are purchased every business day. Wire sent same day. 20 Correspondent Special Programs CitiMortgage, Inc. Attn: Correspondent Special Programs/TVLB 6801 Colwell Blvd 3 rd Floor Mail Code NTSB 2050 Irving TX 75039

22 Top Pre-Purchase Suspense Missing items listed on the NOV NOV required documentation is not fully completed (VA case number, signatures and dates) Incomplete A; missing signatures Documentation to determine the Veteran has a service-connected disability Award letter Missing items listed on AUS findings VA form 1820 incomplete Missing or Incomplete Energy Star/HERS documents Breakdown of Origination Charge on HUD-1/Closing Disclosure 21

23 NOV Items Common Items above are missing from the submission package NOV # 2 Sometimes is marked for one but the other is submitted in the package NOV # 5, 7 and 8 (if applicable) NOV # 10 if marked Final Inspection must be from lender or appraiser specified NOV # 12 Sometimes marked for one but the other is submitted in the package 22 NOV # 13

24 NOV Cont d Most common issues we see is item is marked but not in file at submission 23

25 92900A Discrepancies To be completed by lender 24 To be completed by all borrowers The examples in the next two slides show items that normally are missing. FHA requires all 4 pages to be completed on initial and final. VA requires pages 1-2 of the final.

26 92900A Discrepancies (Cont d) or To be completed by the lender 25 FHA pages 3-4 most common fields missing To be completed by all borrowers

27 Award letter (proof of disability) Should be dated within a year of the note and 30% and above to qualify for the disability of.50 26

28 Missing items listed on AUS findings 27 Most common items missing when reference in the DU are, assets, and income documents. If referenced in DU please provide best copies of documents obtained to underwrite the loan

29 1820 Form Discrepancies Usually missing legal description 28

30 1820 (Cont d) To be completed by lender To be completed by all borrowers If sales price exceeds value boxes D or E must be completed If active statement on COE, this statement must be checked 29 If not initialed by veteran boxes 28B-28D must be completed

31 Relationship Expectation and Performance Monitoring PRE-PURCHASE REVIEW (PPR) Analyzes Loan Data / Documents QUALITY CONTROL Performs PostPurchase Reviews To Assess Manufacturing Quality YOUR SELF MONITORING OUR FEEDBACK Customer Performance Accountability & Monitoring 30 Reviews 100% of all loans 4-10 business days (closed package to initial suspense or purchase) Loans that do not meet data / documentation requirements are suspended and not purchased Our expectation is to purchase one-touch loan submissions Performs Agency and government compliant loan reviews on a sample of production Segments defects into three tiers, based upon risk of repurchase Our Tier 1 (high probability of repurchase) defect rate expectation is 5% or below Review semi-monthly reporting, which displays common defects, trends, and loan level data for research Take action to improve control environment to prevent defects from recurring Recognize interpretation gaps and solicit feedback in order to better align with our policies Defect trends are reviewed monthly; if applicable, deliver tailored performance review presentation that focuses on your trends Work with you to discover root causes of issues and recommend solutions Schedule meetings to assess control environment Provide notification of training opportunities and new Best Practice flyers Recommend a loss of underwriting delegation or approval eligibility for those that are unable to perform at the expectation, or unwilling to collaborate with us to address manufacturing issues

32 Quality First Tool Kits 31 Reflecting our commitment, we have published a Quality Tool Kit to help you increase the quality of your originations The Tool Kit provides detail of our commitment, expectations, performance monitoring framework, common manufacturing defects, resources and tools, and specific Best Practice fact sheets developed as a result of our top post-purchase defects Visit the Solutions site, to find additional Quality First information or print any of the Quality Tool Kit components Quality First Asset Verification Tips For Quality Control Assets Paper Trail of Large Deposits Top Pre-Purchase Defects Automated Underwriting Systems (AUS) Conventional: Top Critical Errors CAIVRS Completing HUD Form A Debt Calculation Citi Instructions For Completing Fannie Form 1089 FHA Loan Quality Performance Tips Citi instructions For Completing Fannie Form 91 Income Documentation Personal Gift Funds: Conventional Personal Gift Funds: FHA VA Loan Quality Performance Tips Verbal Verification of Employment Verification of Mortgage

33 Top Post Purchase Defects Defect Incorrect Income Calculations Incorrect Debt Calculations 32 Critical Issues Incorrect net rental income calculations Unreimbursed expenses not deducted from gross income Missing documentation showing overtime / bonus income continuation Excluding deferred student loans, recently acquired debt, & debt not on credit report Student loan deferment expires within 12 months Rental income / loss calculation errors Solutions / Best Practices Document calculations on income analysis form (Fannie Mae 1084 or Freddie Mac 91) when W2 income is not present Leverage our reference guide on completing the 1084 or 91 form Provide underwriter rationale and documentation when omitting a debt Debts not present on credit report but disclosed in file must be addressed

34 Agent Site Citi Solutions Website: When you log onto this site with your correspondent ID, you will find a copy of this Orientation Overview. Additionally you will see an overview of the Citi Special Programs Website, a link to the Citi Special Programs Website, and very importantly, our QUALITY TOOLKITS, which will assist you delivering loans that will be promptly and efficiently purchased. Citi Special Programs Website Website: correspondent.citimortgage.com/specialprograms 33 Our website is where you will find daily rate sheets, bulletins, announcements, manuals, and forms, as well as specific program information. For more detailed information about the program, please refer to sections 2005 and 2006 on our website.

35 Contacts Correspondent Special Programs Division Customer Relations Division Option 1, enter ISN, option 7 [email protected] Customer relations is available to assist with questions regarding registrations, loan status, suspense, purchase and post purchase items. Additional Information can be located on the special programs website using the link below: 34