Training for Closers and Post Closers

2. Training for Closers and Post Closers Begin text here

3. Work flow process

4. Commitment Package Review by OHFA Prior to issuing a commitment approval, OHFA reviews the following information: • First Time Homebuyer status • Borrower income • Credit score • Debt to Income (DTI) • Loan to value (LTV)/Combined loan to value (CLTV) • Purchase price • Amount(s) and type(s) of assistance

5. OHFA offers: FHA, VA, USDA and Conventional loans as follows: • Unassisted first mortgage • First mortgage with 2.5% down payment assistance in the form of a forgivable second mortgage; • First mortgage with 5% down payment assistance in the form of a forgivable second mortgage; • Mortgage Tax Credit (MTC aka MCC) used in conjunction with all of the above scenarios. We call this type of loan an MTC Plus. We also offer an MTC basic which is an MTC stand alone used with your own mortgage products.

6. Documentation Review We typically review the following documentation to determine a borrower is qualified for our product: • 2 recent paystubs or a written VOE and 1 recent paystub • 3 years federal tax returns (must be signed) or 3 years IRS tax transcripts (no signatures required). • 1003 • Transmittal (1008, FHA 92900-LT, VA Loan Analysis) • Purchase contract • Grants for Grads program – evidence of graduation date • Ohio Heroes – documentation of Hero status as required by guidelines.

7. Commitment Letter The Commitment Letter will list the following: Commitment Date Lender Name Bond Series Program Borrower and Co-Borrower Name Property Address Second Mortgage Account Number Closing Cost Assistance, if applicable (if loan does not have CCA this field will not be here). Second Mortgage Loan Amount Purchase Price First Loan Amount Interest Rate Term Application Date Commitment Expiration Date

8. Commitment Approved “Status” When we approve a loan, internally we approve it straight out or we approve it as “incomplete”. You will not know how we approved it but the majority of our loans are approved as incomplete because we do not require any of our docs to be signed prior to closing so at the very least we will condition for signed docs. It will be necessary, therefore, to check the “View” icon on the Loan Status tab prior to closing to determine what documentation we need to receive with the purchase package.

9. Loan Status Tab • You can do a Quick Search for a loan if you know the reservation number or you can do an Advanced Search and find the loan using Lender Loan # (if entered at reservation), Borrower Name or Co-Borrower Name or SS#.

10. Loan Status Tab • From the Loan Status tab you can view loan details, reprint the reservation sheet, find PDF package documents (incl. commitment letter when approved) and upload packages (e-docs).

11. View Screen • Allows you to view Loan/Reservation Status Details at a glance. • This screen will list Conditions/Exceptions. Conditions/Exceptions are found here

12. Closing Once OHFA has issued a commitment letter the loan can close at any time. Note: Any loans not purchased by the master servicer (US Bank) within 70 days of loan reservation will incur a .375 extension fee for every 30 day extension granted. The fee will be netted from the loan proceeds at the time of purchase. For this reason, there is no need to request an extension if the loan is not purchased by day 70. When ready to close, the closer will login to our Lender Online Reservation System (LORS) to prepare our documents for closing. After checking the “View” screen for documents needed at closing, the closer will go to the PDF Docs Screen to prepare the Note and Mortgage as well as the Purchase Package.

13. PDF Docs Screen • On the PDF Docs screen you will find commitment checklists, a purchase package and the Note & Mortgage for the second mortgage (if applicable). • The commitment letter can also be found here when the commitment package is approved. Once a commitment letter is available the loan can close. • Click on the document you want to view/print then hit “Generate Documents” button.

14. TRID In order to meet RESPA requirements, our assisted loans are subject to the following: • GFE to be sent to the borrower within 3 business days of reservation. OHFA will provide the GFE to the borrower as we are aware some, if not all, lenders will no longer have the ability to generate a GFE. The GFE will be uploaded to the lender portal and will be available to lenders to print. • HUD-1 settlement statement to be provided to borrower at closing for the second mortgage and may only include the recording fee.

15. Closing Documents The following documents are required to be signed at closing: • Note • Mortgage • Borrower Closing Affidavit* • Tax Exempt Rider* • HUD-1 Settlement Statement if assisted loan • OHFA’s commitment package which has been completed and uploaded by OHFA into eDocs on Lender Online. • Any other documents as listed on the “View” screen of the Loan Status tab under HFA Conditions/Exceptions. All of these documents can be found in LORS. * These documents do not apply to loans in our Next Home program.

16. Commitment Package Docs to be signed at closing OHFA now prepares the commitment package documents at the time of commitment approval. The commitment package will be available to print on the eDocs screen and will be listed starting with an asterisk (*) and will state the docs are to be signed at closing (see the following slide for example). To get to E-docs go to the Loan Status tab, search for the loan, then click on E-docs. You will find the commitment package under Market Rate/MCC Commitment Package Documents.

17. E-Docs screen for commitment package Approved commitment package to be sent to closing

18. Borrower Closing Affidavit The borrower signs this document asserting that none of the information has changed since the commitment approval OR that some information has changed. If there are changes, the changes are listed on the form. The borrower signs this document in the presence of a notary The lender also signs this document in the Participant Closing Certification section. The lender also asserts that nothing has changed since the commitment approval was issued or, if there were changes, the lender agrees with the borrower’s statement of changes. Examples of changes: Purchase price change, loan amount change, change in borrower’s income, etc. Keep in mind that if changes are made in the purchase price not only does that most likely effect the loan amount but also the amount of the second mortgage and closing cost assistance. All of which should be noted on the BCA as well as on the HUD, Note & Mortgage. We also need supporting documentation if applicable, i.e. revised purchase contract.

20. Fees Associated with OHFA Financing FTHB & Next Home Loans .50% Origination Fee Payable to Lender $400 Funding Fee Payable to US Bank $85 Tax Service Fee Payable to US Bank $100 Admin. Fee Payable to OHFA MTC Plus Loans .50% Origination Fee Payable to Lender $400 Funding Fee Payable to US Bank $85 Tax Service Fee Payable to US Bank $100 Admin. Fee Payable to OHFA $250 Loan Fee* Payable to OHFA MTC Basic $500 Loan Fee Payable to OHFA *Lender may charge total of $500 loan fee - $250 to OHFA/$250 to Lender Effective January 1, 2015 US Bank charges a $300 underwriting fee for all conventional loans with LTV>95% underwritten by US Bank.

21. Cash back policy Borrowers can receive cash back on the CD in the amount up to what they have paid outside of closing. If the borrower will receive more cash back than the allowable amount please apply it as a principal reduction. The second mortgage must be for the full 2.5% or 5 % amount.

22. Post Closing After the closing has occurred, the lender must send a purchase package to OHFA and the credit package to US Bank. We strongly recommend they be sent within 3-5 days in order to meet the 70 day purchase deadline. Purchase packages sent to OHFA can be uploaded electronically to LORS (preferred method). Loan files can also be sent electronically to US Bank. Each purchase package pulled from LORS has a checklist of documentation to be sent to OHFA with the purchase package. If you follow this checklist and send all docs as requested, your loan will hopefully be approved for purchase at initial review.

23. OHFA Purchase Package checklist sample

24. E-docs Screen • To upload packages and documents to OHFA click add new button. To upload purchase packages click here To upload commitment packages click here

25. Upload screen • Go to *Package and select the type of package you are uploading (use drop down). • Upload documents. • Select a name from the pre-defined list or Enter your own document name.. • Comments can also be added for the analyst as they review the documents. Hit Save when all info is entered. 5 1 2 3 4

26. You will be directed back to the E-docs screen • Hit the submit button –don’t forget this step! • You will receive the following message. Make sure “Initial Submitted Date & Time” is complete.

27. OHFA Administration Fee All fees payable to OHFA (Admin fee and any MTC fees) can be mailed to the following address: Ohio Housing Finance Agency Attn: Homeownership Dept. 57 E. Main St. Columbus, OH 43215

28. Submission to US Bank US Bank’s website can be accessed by going to: www.mrbp.usbank.com Click on US Bank Lending Manuals link.

29. You will be re-directed to Allregs (hit continue)

30. Closing package submission checklists

33. Additional US Bank Online Training US Bank offers online training that we highly recommend. Please follow these links to the training: http://www.brainshark.com/USBankMRBP/vu?pi=zGUz1254yJz4ZaLz0 http://www.brainshark.com/USBankMRBP/vu?pi=zG3zMXI4Rz4ZaLz0

34. Conditions/Exceptions by OHFA or US Bank Outstanding conditions/exceptions made by OHFA or US Bank can be found in the Reports tab in LORS. For a guide to running reports please refer to our “Did You Know…?” series on the Bulletin Board.

35. Loan Purchase approval Systems at OHFA and US Bank communicate nightly. US Bank will not approve any loan for purchase without OHFA’s approval of our purchase or “compliance” package. Once both US Bank and OHFA have approved their respective packages sent by the lender the loan will be purchased by US Bank at which time the lender is reimbursed for the first mortgage, the second mortgage and closing cost assistance, as applicable.

36. Homeownership Staff

37. Whom Should I Call With My Questions? Training slides will be posted on the OHFA website : http://www.ohiohome.org/webinar/presentations.aspx