THE FL HFA PREFERRED CONVENTIONAL LOAN PROGRAM …

1 Florida Housing Finance Corporation (FHFC) 2014 !THE FL HFA PREFERRED CONVENTIONAL loan PROGRAM ! !Lender Guide Published 1-31-14 PROGRAM Updates on Page 3 See Page 3 for list of changes per Fl Housing comments ! ! ! !! Page 2!TABLE OF CONTENTS ! PROGRAM UPDATES 4 THE FLORIDA HOUSING PARTNERSHIP TEAM 5 TERMS and REQUIREMENTS 8 loan DELIVERY PURCHASE TIMELINE 8 PRICING AND RATE 8 LLPA and ADVERSE MARKET DELIVERY FEE 9 THE FIRST TIME HOMEBUYER REQUIREMENT 9 EXEMPTION TO THE FIRST TIME

2 HOMEBUYER REQUIREMENT 9 MINIMUM BORROWER CONTRIBUTION 9 CASH BACK TO BORROWER 9 FICO SCORE REQUIREMENT 9 CO-SIGNERS 9 NON-CITIZENS 10 MORTGAGE INSURANCE 10 HOMEOWNER S INSURANCE DEDUCTIBLE 10 RATIOS 10 HOMEBUYER EDUCATION REQUIREMENT 10 loan TYPE 10 loan PURPOSE 10 loan TERM 10 LTV/CLTV 11 ORIGINATION / DISCOUNT POINTS 11

3 OCCUPANCY 11 PROPERTY TYPE 11 INCOME LIMITS 11 PURCHASE PRICE LIMITS 11 DOC STAMP AND INTANGIBLE TAX 12 FEDERAL DISCLOSURE REQUIREMENTS 12 PREPAYMENTS 12 FL HFA PREFERRED PROGRAM FEES 12 LENDER FEES 12 LENDER COMPENSATION 12 COMPLIANCE DOCUMENTATION REQUIREMENTS 13 HOUSEHOLD INCOME LIMITS FOR THE FL HFA PREFERRED AND 14 THE FL ASSIST SECOND MORTGAGE PROGRAM 14 ACQUISITION (PURCHASE PRICE)

4 LIMITS FOR THE FL HFA PREFERRED 16 AND THE FL ASSIST SECOND MORTGAGE PROGRAM 16 ! Page 3 FLORIDA ASSIST SECOND MORTGAGE 17 FLORIDA ASSIST (FL ASSIST) SECOND MORTGAGE 18 TERMS and REQUIREMENTS 18 THE FIRST TIME HOMEBUYER REQUIREMENT 18 TERM 18 RATE 18 ORIGINATION / DISCOUNT POINTS 18 FEDERAL DISCLOSURE REQUIREMENTS 18 INCOME LIMITS 18

5 PURCHASE PRICE LIMITS 19 PREPAYMENTS 19 SECOND MORTGAGE PROGRAM FEES 19 SECOND MORTGAGE PROGRAM DOCUMENTS 19 RECORDATION REQUIREMENTS 19 HOW TO ORIGINATE THE FL HFA PREFERRED 20 ATTEND TRAINING! 20 GET ACCESS TO THE RESERVATION SYSTEM 20 QUALIFY YOUR BORROWERS 20 RESERVE YOUR loan 20 DISCLOSE 20 UNDERWRITE AND CERTIFY 20 CLOSE AND FUND THE FIRST AND SECOND MORTGAGE LOANS 20 SHIP CLOSED loan FILE FOR PURCHASE 21

6 ! Page 4 PROGRAM UPDATES !!Effective DateProgram UpdatePage!#2-21-14 Added information regarding Household Size Affidavit!13! Page 5 THE FLORIDA HOUSING PARTNERSHIP TEAM Puts All The Pieces Together To Create Affordable Home Ownership for Floridians! ! Florida Housing Finance Corporation (Florida Housing): Provides a first and second mortgage PROGRAM . If a borrower qualifies for a Florida Housing first mortgage, they will also qualify for down payment and closing cost assistance that s available as a second mortgage.

7 The PROGRAM does NOT provide stand alone down payment and closing cost assistance. All down payment assistance must be provided as a second mortgage in conjunction with a FL Housing first mortgage. !Florida Housing may offer one or more first mortgage options. The PROGRAM is available throughout all counties in Florida. Florida Housing also sets the rate, term and points of its mortgages. Florida Housing trains real estate professionals and participating lenders, provides an informational website for the public and markets their PROGRAM . !!Participating Lenders: Provide usernames/passwords to their trained personnel. Participating Lenders work directly with first time homebuyers, take first and second loan applications, reserve the FL Housing first and second mortgages in their internal origination system.

8 Participating Lenders originate, process, underwrite, close and fund the first and second mortgages at closing. Participating Lenders also deliver eligible loans to Master Servicer, US Bank Home Mortgage upon loan closing. Participating Lenders must review PROGRAM documents, originate and close loans that meet the requirements of the PROGRAM . Participating Lenders are also responsible for servicing all PROGRAM loans in accordance with Fannie Mae, Freddie Mac and Ginnie Mae requirements until purchased by the Master Servicer. !! BANK, Master Servicer: Provides training on acceptable loan products and the delivery and funding of PROGRAM loans. Bank receives all closed mortgage loan files, reviews for compliance with Agency requirements and any applicable investor ( Bank) requirements, notifies lenders of mortgage file exceptions, purchases first and second mortgage loans and wires funds to lenders, and services all PROGRAM loans.

9 Bank is not obligated to purchase loans that don t satisfy PROGRAM or Agency requirements. !!eHousingPlus, PROGRAM Administration/Compliance: Serves as PROGRAM Administrator and maintains the PROGRAM reservation system and website, posts Lender Guides, PROGRAM forms and training materials, provides training on compliance issues and the reservation system, assists lenders with compliance questions, reviews PROGRAM compliance file, notifies lenders of PROGRAM compliance exceptions, and provides compliance approval. !! Page 6FL HFA PREFERRED loan PROGRAM FL HOUSING FINANCE CORPORATION (February 3, 2014)FeaturesBorrowers eligible for this first mortgage product are eligible to receive down payment through Florida Housing s second mortgage PROGRAM .

10 Current second mortgage PROGRAM offers $10,000 in down payment and closing cost assistance in the form of a 30 year, 0% non-amortizing loan . loan Delivery Purchase Timeline 60 Day Timeline 20 days from rate lock (reservation) to underwriter certification. 40 days reservation to closed, and delivered, loan . 60 days reservation to exceptions cleared and loan purchase. Extension fee of .375 will be assessed for any loan not eligible for purchase within 60 days. An extension of up to 30 days may be granted by FL Housing if request is submitted, in writing, to the PROGRAM Administrator prior to expiration and RateDaily pricing PROGRAM . Rates will be posted by 10 AM in eHousing reservation system. System will be locked at 8 PM night