Oklahoma County Home Finance Authority Turnkey Mortgage ...

1 Oklahoma County Home Finance Authority Turnkey Mortgage Origination Program Administrator Guideline Original Publish Date - January 4, 2013 Revisions are shown on Page 3 TABLE OF CONTENTSREVISIONS TABLE 3 Oklahoma County HOME Finance Authority PROGRAM TEAM 4 THE PROGRAM PRODUCTS 5 Assisted Rate Loan with Assistance Grant 5 PROGRAM REQUIREMENTS 6 Eligible Borrowers 6 Maximum Debt-to-Income (DTI) Ratio 6 Homebuyer Education 6 Income Limits 6 Eligible Area 6 Purchase Price Limits 6 Property Requirements 6 ABOUT THE FINANCING 7 THE PROCESS SUMMARY 8 PROCESS GUIDELINES FOR REQUESTING DOWN PAYMENT ASSISTANCE FUNDS 9 PROGRAM TIMETABLE 11 Loan Processing, Delivery and Purchase Timetable 11 Extension Request 11eHousingPlus WEB-BASED SYSTEM 12 PROGRAM FEES 13 First Mortgage Fees 13 DPA Funding Wire Fee 13 Lender Net 13 PROGRAM FORMS 14 NEW DOCUMENT REQUIRED FOR US BANK FILE 15 OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 2 REVISIONS TABLEDate2/8/13Pg.

2 9 Guidelines for Requesting DPA Funds; Pg. 11 DPA Funding Wire Fee Revised; PG. 16 Sample Forms OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 3 Oklahoma County HOME Finance Authority PROGRAM TEAM Oklahoma County HOME Finance Authority ( OCHFA or the Authority ) Creates and sponsors a first Mortgage program and a down payment assistance program, sets the Mortgage loan rate, term and points, and markets the programParticipating Lenders Take applications, reserve in their own systems, process, underwrite, approve, fund, close and sell qualified home Mortgage loans to the program. Lenders are responsible for servicing program loans in accordance with Agency requirements until they re purchased by the Master Servicer. US BankMaster Servicer or ServicerProvides information on acceptable loan products and delivery and funding, receives all first Mortgage files, reviews first Mortgage files, notifies lenders of first Mortgage file exceptions, approves first Mortgage files, purchases pools and delivers loans, delivers certificate.

3 EHousingPlus Program Administration Maintains the program reservation system, website, and posts Administrator sguide, forms, training materials, provides program and system training, answers program and system questions, receives compliance files, reviews, posts and notifies of exceptions and approves compliance file. OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 4 THE PROGRAM PRODUCTSPLEASE NOTE THAT RATES AND ASSISTANCE GRANT AMOUNTS ARE SUBJECT TO CHANGE AT ANY TIME. With respect to reserved loans, the rate and assistance will not change as long as loans are delivered according to the timetable included in this loans in this program are Assisted Rate following Mortgage products are offered in this program: FHA, VA, USDA: RD. No conventional loans. US Bank provides the types of government loans permitted.

4 Funds are available in a first-come, first-served revolving pool that provides continuous funding. Assisted Rate Loan with Assistance GrantThe borrower receives a 30-year, fixed rate, fully amortizing first Mortgage loan with 360 level monthly payments as well as an Assistance payment equal to of the original principal Note amount to apply toward down payment or closing costs. Current rates are available online within the system eHousingPlus Lender Portal. Income and purchase price limits apply. The Assistance is calculated on the Note amount. The Assistance may be used for down payment or closing costs and prepaids. While there is no cash back in this program, the borrower may be reimbursed for any overpayment of escrow. Because the Assistance is a fixed percentage of the original principal amount of the Mortgage loan, any remaining Assistance must be applied as a principal reduction.

5 Assistance is in the form of a non-repayable grant. It is not repayable under any circumstances. When you reserve the first Mortgage , the Assistance is automatically reserved. There is no additional reservation necessary. When you close the loan there are not second mortgages, second notes, deed restrictions or liens. There is no repayment. The Assistance will be funded by the Authority via electronic wire transfer either directly or from its agent. Lenders are advised that according to the HUD Manual ( Chapter 5, Section B, page 5-B-16): Lender must obtain and keep the documentation of the wire transfer in its Mortgage loan application binder. While the document does not need to be provided in the insurance binder, it must be available for inspect by FHA s QAD when that office conducts its onsite review .Lenders are required to submit a Wire Transfer Request Form minimum of 2 business days prior to any loan closing date.

6 The Wire Transfer Request Form may be found in the secure section of the eHousingPlus Lender Portal. The Underwriter Certification must be completed prior to the submission of the Requisition Form. Follow instructions on the Requisition Form for email delivery to the appropriate amount of the Assistance Grant will be reduced by a $25 Funding Fee, which is to be disclosed to the borrower as such. For more information, see Program Fees in these Guidelines. OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 5 PROGRAM REQUIREMENTSE ligible Borrowers There is no first-time homebuyer requirement in this program. With regard to citizenship requirements, follow applicable Agency (FHA, VA, USDA;RD) Buyers must occupy the property within 60 days of closing. Applicants must be considered irrespective of age, race, color, religion, national origin Buyers must have a minimum FICO credit score of 640, the mid score must be the minimum or above.

7 If an Agency (FHA, etc) has a higher minimum, follow Agency guidelines. If a participating lender has a higher minimum for other loans and wishes to require a higher minimum for loans, then lenders must use the higher minimum. For home buyers with NO FICO score, manual underwriting shall be permitted. Underwriters must follow the manual underwriting guidelines for the loan product. Maximum Debt-to-Income (DTI) RatioThe maximum DTI ratio is 45%.Homebuyer Education The Authority recommends but does not require homebuyer education. Income LimitsUse Form 1003 Credit Qualifying Income Maximum Income Limit = $92,500 Eligible AreaOklahoma County including Oklahoma Price LimitsNew or Existing Residence = $225,000 Must include everything paid by the buyer or on the buyer s behalfProperty Requirements New or existing, one-four units, detached or attached, condos, town homes, manufactured homes that meet servicer/insurer/guarantor requirements.

8 Mobile, recreational, seasonal or other types of vacation or non-permanent homes are not permitted. Land may not exceed the size required to maintain basic livability. Properties purchased in the program must be residential units. OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 6 ABOUT THE FINANCING The following Mortgage products are currently offered in this program: FHA, VA, USDA;RD. No conventional loans. US Bank provides the types of government loans s expected that lenders have reviewed some preliminary documentation and believe that applicants will also qualify for credit. Excessive cancellations will be reviewed to assure that program funds are not being utilized inappropriately. Appraisal The appraisal must indicate that the home has at least a 30 year remaining useful life. Asset testAsset tests are not required in this program.

9 AssumptionsFollow Agency Agency Guidelines. Cash Back Cash Back to the borrower is not permitted. However, borrowers are permitted a reimbursement of pre-paids and overage of earnest money deposit as permitted by Agency guidelines and to the extent any minimum contribution, if any, has been to PermNot to the extent permitted by applicable Agency (FHA, VA, USDA:RD). Treat cosigner/income as directed by the Agency. A cosigner cannot reside in the property and cannot have any ownership interest in the property (they cannot be on the Mortgage /Deed/WarrantyDeed).Minimum Loan Amount There is no minimum loan amount in this program. Prepayments The first Mortgage may be prepaid at any time without Tax There is NO RECAPTURE TAX IN THIS PROGRAM. RefinancesRefinances are not permitted in this program. However, temporary, bridge or construction loans with a term or 2 years or less may be taken out with a program loan.

10 Remaining reserves are not established by the program. Follow Agency Guidelines. OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 7 THE PROCESS SUMMARYTRAIN Lender training provided by the Administrator and Servicer -- See TRAINING tab located on the eHousingPlus web page for the OCHFA programmatic information and program and system training --eHP University is offered 24/7 -- username and passwords, added to email notice directory once weekly on underwriting, delivery and funding information --US Bank also offers ongoing training. LENDER PORTAL USER CREDENTIALSF ollowing eHP University training, Lenders apply for User Credentials on the ehousingplus website with instructions received in an email the Wednesday following qualify applicants for the program. Buyers must present an executed sales agreement before being entered into the program reservation system.