District of Columbia HFA - District of Columbia Housing Finance

District of Columbia
HFA
&
U.S. Bank Home Mortgage
HFA Division
File Delivery and Purchase
Lou Caresani
2014
Agenda
 USBank Home Mortgage
 Delivery and Funding
 Top Exceptions
 Lender Participation
 Help Desk
 Customer Service
 Underwriting
US Bank Home Mortgage HFA Division
“Master Servicer”
Review, purchase, securitize, and service mortgage loans from
all participating lenders who are approved to originate in the
program.
Loans must meet DCCDA compliance requirements, as well
as specific loan product (FHA, Fannie Mae) underwriting
guidelines.
Lenders must be approved with DCCDA and USBank to
participate in the program. Any questions call the USBank
Help Desk at 800-562-5165.
U.S. Bank Home Mortgage
HOUSING FINANCE DIVISION
17500 Rockside Road *** Bedford, OH 44146
MRBP Team
300 Strong
Loan Review
Purchase
Securitize
Service
Final Docs
Service
HFA Programs
Loan File Delivery Address
ALL DCHFA Loan Files should be sent to:
U.S. Bank Home Mortgage – HFA Division
17500 Rockside Road
Bedford, OH 44146
Attn: Operations Department
Recommend loans shipped IMMEDIATELY after closing
(Request within 5 days)
Loan File Review Process
 Files receive a date stamp > logged into our system
 Files set up in jeter file, labeled with USB loan #
 Daily inventory reports generated
 US Bank Home Mortgage thoroughly reviews loan
 Exception free loans are purchased
 Remember to receive Purchase Approval
Loan File Review Process
 If a loan has exceptions
– Mortgage file exceptions are communicated by
phone / fax / weekly recap report / posted online
 Cleared exceptions are removed, and the loan is
purchased
– A loan history showing payments applied may be
requested
 Loans are purchased daily, on an amortized basis
 Purchased loan summary / detail is faxed to lenders
 Loans are transferred to our servicing system
Delivery & Funding
Program Information
 Review Delivery and Funding Guidelines,
Checklists, Forms, and any Updates
 Share information with Originators, Closers &
Shippers
 USBHM Contact - HELP DESK (800-562-5165)
 Information available from eHousingPlus and USBank
 Access information at: www.mrbp.usbank.com
 Click on USBank lender manuals
Select U.S. Bank Lending Manuals
www.mrbp.usbank.com
Select Continue to Access Allregs
Lender Guide
District of Columbia Housing Finance A
Delivery of loan file
 Checklist
New on USB Website!
US Bank Bulletins
Delivery & Funding
 Provide Complete Contact Information and
Wiring Instructions
 Deliver loan files to:
17500 ROCKSIDE ROAD
BEDFORD, OH 44146-2099
 Loans must be shipped IMMEDIATELY
after closing
Lender Contact Information
Delivery and Funding
 Loans purchased daily
 Purchase Schedule faxed
 Net Fund: (no checks)
–
–
–
–
–
Pay loan amount / interest
Service Release Premium
Net determined escrow
Net USBank fees
Loan extension fee
Delivery and Funding
Lender Compensation
Origination
0.00
Commitment Fee
0.00
Discount
0.00
Servicer Pays
USBank / Program Fees
Funding Fee
Tax Service
Total
$ 150.00
85.00
$ 235.00
SRP
+ 2.00
Conventional Loan Fees
Lender Net
+ 2.00
LLPA = -0- if ran as HFA Preferred
.25% Adverse Market Fee
NOTE:
Lenders are permitted to collect normal and customary fees.
Follow DCHFA guidelines/requirements. Up to $$$.
Top Document Exceptions
Truth-In-Lending (TIL) or MDIA Issues
― Early T-I-L not in file on 1st mortgage or 2nd mortgage
(if applicable)
― Early T-I-L missing required verbiage
― Final T-I-L not in file
― Corrective Final T-I-L, if applicable not in file
― Initial application 1003 not in file & was not signed
and dated by interviewer
Note: Lender is required to follow federal guidelines. If loan
is not in compliance, it cannot be purchased by
USBHM. The file will be cancelled and returned!
High Priced vs. High Cost Loans
 U.S. Bank may purchase a High Priced Mortgage Loan (HPML)
High Priced is based on the interest rate and APR
 U.S. Bank will not purchase a High Cost mortgage
High Cost is based on excessive fees in the loan transaction
See Bulletin 2009-69
Real Estate Settlement Procedures Act
(RESPA)
U.S. Bank’s File Review
U.S. Bank Home Mortgage-MRBP performs a basic compliance review of the
GFE document to ensure compliance with the following:
 Ensure GFE and HUD-1 are on the proper forms
 Verify “Loan Terms” on HUD-1 match “Summary of Your Loan” on last issued GFE
 Verify HUD-1 is within acceptable tolerances with last GFE issued including a review
of charges that cannot increase by more than 10%
 Verify lender provided acceptable cure documentation, if applicable
Post Settlement Cure: HUD allow lenders a 30-day cure period from date of
borrower’s signed closing documents for violating GFE/HUD-1 fee tolerances. Lenders
exceeding fee tolerances will be in violation of Section 5 of RESPA.
USBHM must receive proof of refund to borrower and a corrected HUD-1, from
settlement agent prior to loan purchase.
NOTE: If there is a known issue, don’t wait until USBHM has
reviewed as you may exceed the 30-day cure period for correction.
Top Document Exceptions
Mortgage / Deed of Trust
― Missing Riders (if applicable)
―
―
―
―
Condo, Pud,
Tax Exempt (required if MRB loan) TBA loans no
Need to record with the 1st Mtg
Missing pages of the mortgage and/or legal
description
― Notary Section left blank or incorrectly completed
― Property Address differs from other
documentation
Top Document Exceptions
Note
– Missing original / incorrect endorsement
– 1st Note endorsement
– “U.S. Bank National Association”
– Payment term must be 360
Assignment
– Not included in loan file / not assigned correctly
– 1st Mortgage assignment
– “U.S. Bank National Association”
Top Document Exceptions
Hazard & Flood Policies
― Names & address not matching other documents
― Proof of payment not in the file
― Govt Loan Hazard Deductibles


Cannot exceed $2,500 (or) 2.5%
face amount of the policy
Flood policy is 1% (or) $1,000
― Conv Hazard Deductibles


Cannot exceed 5% of the face amount of the policy
Flood policy is $5,000
Top Document Exceptions
Homebuyers Education Certificate
& or Referral for Counseling
–
Missing despite being required per DU or DCHFA
Underwriting
–
–
Loans are incorrectly put through DU
(must be run as HFA Preferred)
Missing Standard uw documentation
(pay stubs, VOD, etc..)
Loans With Exceptions
 USBank will communicate all loan exceptions to a
designated person via fax, phone, weekly recap
report. Must clear within 2 weeks from posting.
 Call the help desk for status on exceptions.
(Option # 2)
 Once all outstanding deficiencies have been
resolved, your loan will be purchased.
 Provide separate cover letter/sheet for each loan
to include U. S. Bank loan number.
 Identify loans / exception with your submission.
Reference
Endorsements / Assignments
Borrower Payment
Address and Website:
P.O. Box 468002
Bedford, OH 44146-8002
www.usbankhomemortgage.com
Hazard Insurance/
Loss Payee Clause:
its successors and or assigns as their
interest may appear
c/o U.S. Bank Home Mortgage
P.O. Box 7298
Springfield, OH 45501-7298
Final Documents
 Organize documents according to checklist
 All lenders are responsible for delivery of
documents to US Bank MRBP
– Due 120 days from purchase
– A late fee of $50 will be assessed after 120 days
Deliver to:
Document Control
17500 Rockside Road
Bedford, Ohio 44146-2099
Final Doc Assistance:
Final Doc Supervisor
Darlene Kreigh
darlene.kreigh@usbank.com
(216) 475-7739
Post-Close Final Doc Exceptions
Title Policy:
 Schedule A, item 4 contains incorrect mortgage recording information
 Name of insured is incomplete (needs to mirror mortgage and have “it’s successors
and/or assigns”)
 Missing required endorsements
Mortgages:
 Notary section is incomplete
 Incorrect maturity date / Legal description missing
Assignments:
 Missing
Notary not completing their
Lender Participation and Approval
 Lender approval to participate in DCHFA Program
– Lenders must sign U.S. Bank Lender agreement
– Must also be approved by DCHFA, and sign their
program agreement
– Annual Recertification for all Lenders
– On the Lender’s Fiscal year ending date
– U.S. Bank MRBP Helpdesk will contact lender to start
the recertification process
– Any questions contact the USBank Help Desk
Lender Scorecard

Quarterly analysis completed based on loans received for
review / purchase, and their performance

Loans placed on exception, not cleared or purchased
within required timeframes

YTD deficiencies, delinquency, foreclosure &
bankruptcy statistics

Final recorded documents outstanding

Lenders and DCHFA are advised in writing of any
issues
Communication - Help
Help Desk
• Status of loans, program guidelines, general information
 800-562-5165
 Option # 4
 mrbp.helpdesk@usbank.com
Exception Communication Team
 Option # 2
 Exceptions
 Status of exception documents received
 mrbpcommunications@usbank.com
Customer Service
U.S. Bank
Commitment
To
Customer Service
Customer Service
HFA Servicing Location:
17500 Rockside Road
Bedford, OH 44146
All HFA loans serviced from
this facility!
Borrower Payment
Address and website:
U.S. Bank Home Mortgage
P.O. Box 468002
Bedford, OH 44146-8002
www.usbankhomemortgage.com
Customer Service Toll Free Number
800-240-7890
Hours: Monday – Friday
7:00 am – 8:00 pm EST
www.usbankhomemortgage.com
Customer Service
 Advise borrower their loan will be sold to
U.S. Bank
 Borrowers receive monthly billing
statements
 Spanish Speaking Customer Service &
Default Representatives
 Interactive Voice Response System
– 24 hours a day
Customer Service
 Mortgagor Website Access (24 / 7)
– www.usbankhomemortgage.com
 Call Center Operations
– M-F; 7:00am – 8:00pm est.
– 800-240-7890
 Default Servicing Call Center Operations
– 8:00am – 8:00pm est.
 Flexible Payment Methods:
– ACH, USBank Branch, Mail, Website, Phone
District of Columbia
HFA
&
U.S. Bank Home Mortgage
HFA Division
Underwriting
Lou Caresani
2014
Disclaimer
 This presentation is for basic informational purposes only.
It does not modify or replace the requirements provided
by FHA, or Fannie Mae.
 It is the lenders responsibility to follow all specific Agency
guidelines, mortgagee letters, announcements, or
bulletins. This presentation is for general products
requirements.
 Lenders should also follow U.S.Bank Product descriptions
and any bulletins issued by U.S.Bank.
 U.S.Bank and DCHFA are not liable for loans not meeting
product guideline criteria
Underwriting Guidelines
 All loans should be underwritten in compliance with the
most current underwriting guidelines for FHA, or Fannie
Mae.
 The loan file must also meet DCHFA bond compliance
and eligibility requirements.
– Follow DCHFA Procedural Manual
 Correspondent Lenders, for which USBank underwrites,
will have to follow USBank guidelines as well.
 Condos > make sure to receive USBank approval prior to
scheduling a closing.
 All loans are subject to both internal and agency audits.
Underwriting Guidelines
 Underwriters should make…
– Sound credit decisions
– Assure data integrity
– Include all necessary
documents
– Provide supporting
documentation for the UW
decision
Eligible Loan Products
30 Year Fixed Rate ONLY
 FHA
 Conventional
Fannie Mae only > must be run as HFA Preferred
 Refer to USBank product guidelines for eligible
products
Secondary Financing
Down Payment Assistance Programs (DPA)
 The funding source for the DPA program must be stated in the source of funds
section of the 1003, and on the HUD-1
Example: District of Columbia HFA DPA
 Make sure the any DPA program meets FHA or Fannie Mae requirements.
 District of Columbia HFA DPA is an approved DPA program.
 DCHFA will be table funding their DPA at closing.
 Must include the following documentation in loan file.
 Down Payment Assistance Funding Verification Form USB002
 Provide a copy of the wire or check information verifying a direct transfer of funds
FHA Products
 Eligible Products = 30 Year Fixed Rate ONLY
–
–
–
–
–
203B FHA
234C Condo, Puds, Townhomes
FHA Loan for Veterans
FHA Homeownership Incentive (HUD REO)
Existing or New Homes
 Underwriting References
– FHA Guide – 4155.1 rev 5
– FHA website www.hud.gov
– Allregs www.allregs.com
Resources
FHA Underwriting Guidelines
 Guide – 4155.1 rev 5
 FHA website www.hud.gov
 Allregs www.allregs.com
 Search answers.hud.gov
 Email hud@custhelp.com
 Phone Monday-Friday, 8 am to 8 pm ET
– (800) CALLFHA = (800) 225-5342
 info@fhaoutreach.com
HFA Preferred Conventional Loan
Description
Delivery Fees
Maximum LTV/CLTV/FICO
Fannie Mae Loans
MI Charter Minimum
• Fannie Mae HFA Preferred (Standard Fannie not permitted)
• 30 Year Fixed Rate Amortization / Purchase Only
• -0- Loan Level Price Adjustment on HFA Preferred Loans
• .25% adverse market fee will apply
• 95.01 - 97%/100% 1 unit (subject to MI) 680 Fico
• < 95% / 100% 2 unit (subject to MI) 640 Fico
• Approved Eligible
• Manual UW permitted with further criteria only on < 95% loans
MUST follow the FNMA “Eligibility Matrix” for manual uw
• 80.01-85% LTV: 6%
• 90.01-95% LTV: 16%
85.01-90% LTV: 12%
95.01-97% LTV: 18%
• Purchases / NCO Refinances
• 680 Minimum Credit Score
• 45% Max DTI
HFA Preferred 95.01 to 97% • 1 Unit only
LTV Loans • USBank must underwrite all conventional loans > 95% LTV
• USBank will order the MI
• No Underwriting fee
• No manual underwriting
HFA Preferred
Help Desk
Lenders
–toll free:
1-800-562-5165
–Email:
mrbp.helpdesk@usbank.com
THANK YOU
For your participation
in
District of Columbia
HFA
programs!
02/2008 20808135525