NIFA LENDER TRAINING - PDF document

1 NIFA LENDER TRAINING HOMEOWNERSHIP PROGR
NIFA LENDER TRAINING HOMEOWNERSHIP PROGRAMS & PROCESSES Borrower Eligibility • All occupying Borrowers and Non - purchasing Spouse must be a first time homebuyer • Loan must meet NIFA Income and Purchase price limits • Borrowers

2 must complete a Homebuyer Education cou
must complete a Homebuyer Education course prior to closing (certificate valid for 12 months from issuance) • Must meet program/agency credit overlays (credit score and DTI) Exceptions to First Time Homebuyer Requirements • Divor

3 ce • Job Relocation • Natural Disas
ce • Job Relocation • Natural Disaster • If buying in a Target area, first time requirement does not apply • If borrower is a qualified Veteran, first time requirement does not apply Credit Overlays – Government Loans Cred

4 it Overlays – Conventional HFA Loans
it Overlays – Conventional HFA Loans Approved MI Company Providers • Essent Guaranty • Genworth Financial • MGIC • United Guaranty Mortgage Rates (effective August 3, 2016) Program Name Government Rate Conventional Rate Mili

5 tary Home 2.75 NA First Home Plus 3.00 3
tary Home 2.75 NA First Home Plus 3.00 3.25 First Home Focused 3.00 3.25 Homebuyers Assistance (HBA) 3.50 - 1 st rate 1.00 - 2 nd rate 3.75 - 1 st rate 1.00 - 2 nd rate - Rates are subject to change without prior notice - All rates are

6 at par (no origination fee) - Loan reser
at par (no origination fee) - Loan reservations are valid for 60 days - Extended reservations for new construction only are valid for 150 days - Loan level price adjustments (LLPAs) do not apply to any conventional loans (HFA Preferred

7 product only) • Loan reservations/loc
product only) • Loan reservations/locks are valid for 60 days • Extended lock reservations for new construction are valid for 150 days • Loans must close within the lock period • Loans are to be delivered to both NIFA and US

8 Bank within 10 days of closing Loan Res
Bank within 10 days of closing Loan Reservations Extended Locks for New Construction • Are available up to 150 days for new construction purchases • Lender must collect a one - time upfront fee equal to .50% of the first mortgag

9 e amount • Fee is refundable if loan c
e amount • Fee is refundable if loan closes within the 150 day reservation period • Fee is retained by the lender or closing agent and is credited back to the borrower on the final Closing Disclosure • NIFA must be notified with

10 in 5 business days of the loan reservat
in 5 business days of the loan reservation date using the Extended Lock Request Form and including a copy of the borrower’s check. • NIFA staff will manually change the Commitment Expiration Date from 60 days to 150 days Loan Exte

11 nsions • Request will be granted on a
nsions • Request will be granted on a case - by - case basis and approval is not guaranteed • Reservation Extension Request form should be completed and uploaded into the loan file in LOL Loan Products • Fannie Mae – HFA Prefe

12 rred loans only • FHA 203b • FHA 203
rred loans only • FHA 203b • FHA 203k streamline (lender must be approved by US Bank Home Mortgage) • VA • Rural Development (RD) NIFA Programs • Homebuyer’s Assistance (HBA) • Military Home • First Home Plus • First

13 Home Focused Homebuyers Assistance (HBA)
Home Focused Homebuyers Assistance (HBA) Program • Provides down payment & closing cost assistance • 2 nd mortgage interest rate is 1% • HBA 2 nd amount is up to 5% of the purchase price (can be less as needed) • 2 nd mortgag

14 e term is 10 years (120 months) • Mini
e term is 10 years (120 months) • Minimum borrower investment of $1,000 (gift funds are allowed) HBA – Borrower $1000 Investment • Included in the calculation of Borrower investment • Earnest Deposit • POC paid by the borro

15 wer – must be shown on Closing Discl
wer – must be shown on Closing Disclosure • Any deposit collected by Lender (application, appraisal) • Cash brought to closing Any cash given back at closing will be deducted and there must still be $1000 investment in the tran

16 saction HBA Program • Government (FHA,
saction HBA Program • Government (FHA, RD & VA) and conventional loans are eligible • All 1 st mortgage agency underwriting guidelines must be satisfied • No cash back policy. Prorated taxes must be used to reduce 2 nd mortgag

17 e loan amount HBA Program Forms • Le
e loan amount HBA Program Forms • Lenders are required to complete the same federal disclosures for the 2 nd mortgage (Loan Estimate and Closing Disclosure) • NIFA HBA program forms: • Form F (Notice signed at application)

18 • Form G (Note signed at closing) â
• Form G (Note signed at closing) • Form H (Deed of Trust signed at closing ) • Closing Approval Request (Lender submits prior to closing) • Form J (HBA Borrower Acknowledgement Letter is signed at Closing & must be include

19 d in FHA Case Binder) • Obligation Le
d in FHA Case Binder) • Obligation Letter Form G – HBA Second Promissory Note • Includes final HBA 2 nd mortgage loan amount • Has interest rate of 1% • Amortized over 10 years (120 months) • Signed by Borrower, Co - Borro

20 wer & Co - Signor • First payment date
wer & Co - Signor • First payment date is same as 1 st mortgage Military Home Program • Program was developed to support Nebraska military • Program provides NIFA’s lowest possible rate • Active military can be in any branch

21 of military • Qualified veterans may
of military • Qualified veterans may have served in any branch of the military & can be on active duty again (the same or a different branch) Military Home Program • To qualify, must be: 1) active military or 2) qualified veteran

22 • Active military includes Air Force,
• Active military includes Air Force, Army, Navy, Marines, Coast Guard, National Guard and Reserves. First - time buyer requirement must be met except for target areas or with another allowable exception. • Qualified veteran is

23 defined by the federal government (not
defined by the federal government (not NIFA) within the meaning of 38 U.S.C. Section 101. Must have served in the active military and has been discharged or released from the service under conditions other than dishonorable. Vetera

24 n does not have to be a first - time bu
n does not have to be a first - time buyer. Military Home Program • VA, FHA, RD and Conventional loans are eligible • For active military borrowers, NIFA must receive the most recent Leave and Earnings Statement (LES) with the pr

25 e - closing file • For those discharge
e - closing file • For those discharged from National Guard or Coast Guard, NIFA will accept their NG - 22 or CG - 718 but they must be a first time homebuyer to qualify Form I – Veteran’s Exception • Use when Borrower meets

26 the Veteran’s Exception definition so
the Veteran’s Exception definition so does not need to be a first - time homebuyer status. • Must include a copy of Borrower’s DD - 214 • Not to be used if Borrower is active military unless borrower has been honorably discha

27 rged and is on active duty again • Mu
rged and is on active duty again • Must have a boxed checked • Is executed by the Borrower at application First Home Plus Program • 1 st mortgage loan only • Government and conventional loans are eligible • For properties lo

28 cated in a non - target area First Home
cated in a non - target area First Home Focused Program • 1 st mortgage loan only • Government and conventional loans are eligible • Properties located in federally designated target area (Lancaster, Douglas, Adams, Jefferson &

29 Scotts Bluff Counties) • First - time
Scotts Bluff Counties) • First - time buyer requirement does not apply when property is located in a target area • Income and purchase price limits are higher Program Forms Used with All NIFA Loans NIFA Program Forms • Form A

30 – Household Verification • Form B
– Household Verification • Form B - Borrower’s Affidavit • Form C – Certificate of Seller • Form D – Initial Recapture Tax Notice • Form D – Final Recapture Tax Notice • Form E - 1, E - 2 or E - 3 – Tax Exempt

31 Riders Forms & Required Signatures Al
Riders Forms & Required Signatures Allowable Closing Costs GOVERNMENT & CONVENTIONAL LOANS – Reserved On & After 11 - 01 - 15 NIFA Pre - Closing Approval • NIFA’s Pre - Closing Review includes: • Determining the borrowers a

32 re first time buyers or qualify for a w
re first time buyers or qualify for a waiver • Determining the household size • Calculating total household income is within NIFA income limits • Determining the purchase price is at or below the limit • NIFA’s Final Income

33 Worksheet will be uploaded into LOL on
Worksheet will be uploaded into LOL once the file is (pre) approved Household Income • Must include all income sources for all household members who will occupy the property and are 18 years of age & older • NIFA is required to

34 project income out for next 12 months
project income out for next 12 months • Include full - time, part - time, seasonal, temporary, self - employment and unemployment benefits • Also child support and alimony Household Income • Must use more than base income. Als

35 o include: • Overtime • Bonus • Co
o include: • Overtime • Bonus • Commission • Shift Differential • Salary in lieu of Benefits • Per diem, unless offset by expenses • Interest income is calculated on assets & converted to monthly income • Income cal

36 culated by your Underwriter should be e
culated by your Underwriter should be equal to or less than NIFA’s calculated household income Income Documentation • Need current paystubs and written VOE’s for each current job • SSI Awards Letter for current year • 2

37 consecutive months account statements
consecutive months account statements (checking and savings accounts) • Current statement for each asset account (retirement , 401k, investment, HSA) Self - Employed Borrower • Most Recent Tax Return or Tax Transcript • W - 2â

38 €™s and 1099’s • Current YTD Profit
€™s and 1099’s • Current YTD Profit & Loss (Affidavit IV) • Current K - 1, if applicable • Business Use of Home (Affidavit I) if applicable Paystubs • Must meet 120 day validity standard or 180 if new construction • Must co

39 ver recent consecutive 30 - day period
ver recent consecutive 30 - day period • Need 1 if paid monthly • Need 2 if paid bi - monthly • Need 4 if paid weekly • Require paystubs for every job • Review for asset information VOE’s • Full written VOE Required for

40 each current job held • Must be compl
each current job held • Must be complete and include current year & previous year(s) income history • Termination VOE’s required on all previous employment unless start and end date are on Initial Loan Application (these can be

41 verbal) • Work Number requires use of
verbal) • Work Number requires use of pin number to get income information Asset Statements • Statements are required for ALL assets. Look for: • Loan application • Bank accounts listed • Paychecks stubs • Deductions •

42 Bank statements • Transfers between a
Bank statements • Transfers between accounts • Automatic deposits • Tax returns • Interest, dividends, capital gains, HSA accts. • Asset statements • Transfers or automatic deposits • Need from borrower, co - borrower and

43 non - purchasing spouse for most recent
non - purchasing spouse for most recent 3 years • Type of form filed • Verify social security numbers • Current year’s W2s & 1099s • Self employment, farm, rental income • Additional asset accounts not listed on application

44 • Type of deduction taken • Tax tra
• Type of deduction taken • Tax transcripts do NOT need to be signed by the borrower(s) Federal Tax Returns/ Tax Transcripts NIFA Deposits Policy • Two months of current bank statements required • VOD’s are no longer allowed

45 • Large unidentified single deposits
• Large unidentified single deposits of $500 or more • Unidentified multiple deposits made in a single month that exceed $500 • Recurring/periodic deposits • Borrower to execute Affidavit 5 – Borrower Letter of Explanation

46 Affidavit 5 – Borrower Letter of E
Affidavit 5 – Borrower Letter of Explanation • Used to explain the following situations: • Unidentified transfers between asset accounts • Unidentified one - time deposits or transfers of $500 or more • Unidentified autom

47 atic deposits • Unidentified multiple
atic deposits • Unidentified multiple deposits made in a single month that exceed $500 • Recurring deposits (weekly, bi - weekly, bi - monthly or monthly) that are not necessarily the same amount • Can be used by Borrower to expl

48 ain any situation HBA Closing Approval
ain any situation HBA Closing Approval • NIFA approves the HBA Closing Package prior to closing • HBA Closing Checklist must include contact information • HBA Closing package must include a copy of the initial, subsequent and fi

49 nal Loan Estimates for the 2 nd mortgage
nal Loan Estimates for the 2 nd mortgage • HBA Closing Package must also include the final Closing Disclosures for the 1 st and 2 nd mortgages • Upload request at least 24 hours prior to closing and email all Single Family staff to

50 advise when uploaded HBA Closing Appro
advise when uploaded HBA Closing Approval Checklist HBA Closing Package HBA Closing Disclosure NIFA Verifies : Closing Date/Disbursement Date Property Address Borrower Loan Term – 10 years Loan Type – conventional Purpo

51 se - Purchase/Product – Fixed Loan A
se - Purchase/Product – Fixed Loan Amount – matches page 3 and First Mortgage Closing Disclosure Interest Rate – 1% Calculate Monthly P & I Cash to Close – matches page 3 and carries to the First Mortgage Closing Disclosu

52 re HBA Closing Disclosure Closing Cost D
re HBA Closing Disclosure Closing Cost Details - Verify Fees Charged Lender Third Party Closing Fee cannot exceed $75.00 HBA Closing Disclosure Make sure Cash to Close top and bottom match and they match Cash to close found on bottom

53 of Page 1 Loan Amount – matches pag
of Page 1 Loan Amount – matches page 1 HBA Closing Disclosure Assumption – Mark box Assumptions will not be allowed First Mortgage Closing Disclosure Closing Date/Disbursement Date Sales Price Loan Term - 30 years Purpose -

54 Purchase Product - Fixed Loan Type Loan
Purchase Product - Fixed Loan Type Loan Amount Interest Rate First Mortgage Closing Disclosure Origination Charges - Lender Closing Fee Lender Underwriting/ Processing Fee Bond Fee to US Bank Third Party Closing Fee Broker Admin Fee POC

55 B First Mortgage Closing Disclosure Depo
B First Mortgage Closing Disclosure Deposits Loan Amount Proceeds for HBA loan to match HBA Closing CD ($Principal Balance of 2 nd loan) Cash To Close HBA – Borrower $1000 Investment • Included in the calculation of Borrower inves

56 tment • Earnest Deposit • POC paid b
tment • Earnest Deposit • POC paid by the borrower – must be shown on Closing Disclosure • Any deposit collected by Lender (application, appraisal) • Cash brought to closing Any cash given back at closing will be deducted an

57 d there must still be $1000 investment
d there must still be $1000 investment in the transaction Obligation Letter • Is automatically generated once the HBA Closing Approval stage has been approved • Can be found in PDF Documents in Loan Status • Must be includ

58 ed in the FHA Case Binder & closed file
ed in the FHA Case Binder & closed file that is sent to US Bank for purchase • Date needs to be on or prior to date of closing. Otherwise you may not have an insurable loan with FHA NIFA Post - Closing Approval • NIFA’s Post

59 - Closing Review includes: • Verificat
- Closing Review includes: • Verification the loan closed using one of NIFA’s programs, approved loan types and at the correct interest rate • Determination the borrower(s) meets all credit overlays • Validation the Underwriter

60 ’s income calculation is at or below
’s income calculation is at or below NIFA’s final approved income for the household • Verification all outstanding pre - closing conditions are included in the file • Verification all Loan Estimates and the signed final Closin

61 g Disclosure are included for both 1 st
g Disclosure are included for both 1 st and 2 nd mortgages (US Bank reviews for compliance) • Review of the executed final Seller Closing Statement for HBA second mortgage loan Same Name Affidavit • Must be included with Post - Clos

62 ing files for the following individuals
ing files for the following individuals: • Borrower • Co - Borrower • Non - Purchasing Spouse Please make sure to include name(s) listed in a preclose condition (if applicable) • Secure site only available for NIFA approved le

63 nders • Loan reservations/rate locks â
nders • Loan reservations/rate locks • Paperless file submissions ( eDocs ) • All program announcements • Pipeline reports Lender Online (LOL) Accessing Lender Online (LOL) https://lol.nifa.org Lender Online (LOL) Bulletin Board

64 Tab Lender Online (LOL) Program Documen
Tab Lender Online (LOL) Program Document Tab PDF Compliance Documents eDocs – Upload Process eDocs – Upload Process eDocs – Upload Process eDocs – Upload Process Submit Documents eDocs – Submit & Confirmation Reprint Lock

65 Confirmation Loan Status & Conditions Lo
Confirmation Loan Status & Conditions Loan Status & Conditions Change Request Form • Use when requesting the changes to a loan reservation: • Changing loan amount • Changing loan program • Changing loan type • Correcting addre

66 ss • Adding/deleting a borrower • Up
ss • Adding/deleting a borrower • Upload copy of this form to the file in Lender On Line Cancellation Request Form • Use when the NIFA loan will not close • Include a dditional document for the following cancellation reasons:

67 • Loan denial • Over NIFA program in
• Loan denial • Over NIFA program income limits - if determined by lender • Appraisal/inspections • Completed form and documentation should be uploaded to the file in LOL as soon as possible Loan Delivery Schedule Effective F

68 ebruary 1, 2016 Deficiencies & Exception
ebruary 1, 2016 Deficiencies & Exceptions • Missing 2 months bank statements • Missing retirement account statements • Explanation of Deposits • Incomplete Initial Loan Applications • Missing Termination VOE or VOE/Paystubs •

69 Missing FHA/VA Escape Clause • Missin
Missing FHA/VA Escape Clause • Missing VOEs NIFA Resources • Lender - on Line • Everyone who works on NIFA loans should have their own log in • Source for all NIFA information • NIFA’s Lender Email Distribution List • Eve

70 ryone who works on NIFA loans should be
ryone who works on NIFA loans should be on our email distribution list. Contact Cindy or Susan to be added Help Desk Team:  For general program questions  Phone number: (800) 562 - 5165 Option 2  Email: hfa.programs@usba

71 nk.com Customer Care Team: • For quest
nk.com Customer Care Team: • For questions post closing/pre funding questions, deficiencies, and policy and procedures • Phone number: (800) 562 - 5165 Option 1 • Email: hfacustomercare@usbank.com • US Bank website for Progra

72 m Bulletins, Delivery Checklists: www.m
m Bulletins, Delivery Checklists: www.mrbp.usbank.com US Bank Contacts US Bank Contact Information Compliance – Questions pertaining to TRID and general compliance USBHM Lender Support Shared Mailbox - usbhmlendersupport@usbank.com Po

73 st Funding – Inquiries regarding fina
st Funding – Inquiries regarding final and recorded documents HFA Final Docs Shared Mailbox - documentcontrol@usbank.com - Contact for inquiries after loan is purchased HFA Post Funding Shared Mailbox - hfa.postfunding@usbank.com •

74 Shelley Abraham , Compliance Reviewer sh
Shelley Abraham , Compliance Reviewer shelley.abraham@nifa.org, (402) 434 - 2949 • Micheline Henning , Compliance Reviewer micheline.henning@nifa.org , (402) 434 - 3926 NIFA Single Family Team NIFA Single Family Team • Susan Lauver

75 , Team Leader susan.lauver@nifa.org, (4
, Team Leader susan.lauver@nifa.org, (402) 434 - 3914 • Jacki Young , Chief Homeownership Officer jacki.young@nifa.org, (402) 434 - 3915 • Cindy Trautman , Assistant Program Manager cindy.trautman@nifa.org, (402) 441 - 4643 Th