lender lab - LenderSelect Mortgage Group

LENDER LAB
FEBRUARY 4, 2016
10:00 – 4:00
AM
PM
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TPO UPDATED BYTE PROFILES
•
•
•
•
TPO Loan Officer
TPO Loan Officer (Teams)
TPO Sales Manager
TPO Ops
3
TPO ADVERSE ACTION
To Prevent the Loan Estimate from being sent, the TPO must decline or
withdraw the loan within 48 hours.
“No Decision, Pending or Prequalified” loans will still trigger a Loan Estimate.
4
TPO SUBMISSION SHEET
STEP 1: This is where you enter your anticipated closing
date (if not a TBD), the contract closing date (if known),
and the number of hours that HUD is required prior to
closing, if applicable (i.e. – REOs, Bank Owned, etc.)
5
TPO SUBMISSION SHEET
STEP 2: Check all those that apply and enter any
special loan program information for your
Underwriter/Processor.
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TPO SUBMISSION SHEET
STEP 3: Checking the box next to the ‘bird’ will signal
that the LE is ready for Compliance and can be sent
right away, instead of waiting until after the 48th hour.
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TPO SUBMISSION SHEET
STEP 4: To authorize the
Hazard Insurance, Title,
and/or Flood Insurance, you
must include the contact
information in this section.
If the company information is
blank, click the “Click Here to
Jump to the Parties Screen”
button. If you have already
ordered any of these services,
please check the appropriate
“I Have Ordered…” box.
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TPO SUBMISSION SHEET
STEP 5: If you should have any special communication instructions,
please enter this instructions on the left field of this step. The right side of
this step is to identify the primary point of contact for this loan. The “Other
Contact” may be used in cases of a language barrier, deafness, etc.
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TPO SUBMISSION SHEET
STEP 6: IMPORTANT – This is your opportunity to “Tell the Story” about
your loan to your Underwriter – It is the new loan cover letter to underwriting.
• Click on the “Stored Docs” button to upload your signed application,
disclosures, etc.
• Check the box in the “Submit to New Loan” field to send the loan to New
Loans. The date/time stamp will appear below the check box when the
loan is submitted
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TPO SUBMISSION SHEET
Submission
Checklist: this
checklist is not
required but does
serve as a “Best
Practice” in
submitting a
complete loan file.
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TPO SUBMISSION SHEET –
UPLOADING TO STORED DOCS
STEP 1: In STEP 6 of the TPO Submission Sheet, click on the “Stored
Docs” icon.
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TPO SUBMISSION SHEET –
UPLOADING TO STORED DOCS
STEP 2: Click the “New” icon and choose “Import and Edit New
Document(s) from Disk”
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TPO SUBMISSION SHEET –
UPLOADING TO STORED DOCS
STEP 3: Choose
the document(s)
you would like to
upload and click
“Open”.
NOTE:
Documents that
are uploaded
must be in PDF
format.
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TPO SUBMISSION SHEET – UPLOADING
TO STORED DOCS
STEP 4:
Choose the
appropriate
“Document
Type” from the
drop down box
and then click
“Store New
Documents”.
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TPO SUBMISSION SHEET –
UPLOADING TO STORED DOCS
STEP 5: Your document(s) will then populate in the “Stored
Documents” screen.
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TPO SUBMISSION SHEET –
UPLOADING TO STORED DOCS
STEP 6: Return to the “TPO Submission Screen” to submit the new loan
package.
NOTE: You must check the box “Submit to New Loans” in order for the loan
package to be submitted.
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TBD FLIPS
STEP 1: Click the “Click Here to Jump to Stored Docs
Screen” to upload the Purchase Contract to the Sales
Contract bucket. Once you have uploaded this contract,
check the “I have uploaded the Contract to Byte” box.
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TBD FLIPS
STEP 2: Add the Subject Property Address and verify the
data in all of the fields within this step are correct. If the loan is
being done in a Due Diligence state (NC/SC/etc.), please add
the Due Diligence Date.
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TBD FLIPS
STEP 3: Click the “Click Here to Jump to Page 2 of LE” to
update the closing costs and take into account the changes
from the Purchase Agreement (Survey, Home Inspection, etc.).
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TBD FLIPS
STEP 4: Add, modify or confirm the Scheduled Closing and
Contract Closing Dates. Also, add the number of hours we
need the HUD/CD prior to Closing, if applicable.
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TBD FLIPS
STEP 5: Add, modify, or confirm the Monthly Prepaid
Amounts specific to the Subject Property.
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TBD FLIPS
STEP 6: Add, modify, or confirm the EMD amount and the
Seller/Lender Contributions. Also, confirm that the
Seller/Lender Contributions are within the Allowable amounts.
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TBD FLIPS
STEP 7: Confirm that the Agents and Builder/Seller are
added, if applicable. If you need to add any of these parties,
click the “Click Here to Jump to Parties Screen” button and
add them there. You will then be able to click the “Back”
button to return to this screen.
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TBD FLIPS
STEP 8: Click the “Click Here to Jump to Shoppable
Providers Screen” button to add Shoppable Providers. You
will then be able to click the “Back” button to return to this
screen.
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TBD FLIPS
STEP 9: If known, add the company information for Hazard and Title. If these
items are missing or incorrect and need to be updated, click the “Click here to
Jump to Parties Screen” button. You will then be able to click the “Back”
button to return to this screen. This is also an opportunity to authorize these
order outs, if applicable.
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TBD FLIPS
STEP 10: In this step you will be able to either see that the loan is locked,
be able to choose that it is not locked yet and the borrow is floating, or you
will be able to click the “Click Here to Jump to Pricing and Lock Request
Screen” button to work with pricing and/or lock. You will then be able to click
the “Back” button to return to this screen.
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TBD FLIPS
STEP 11: If the Contract Date has not been confirmed,
this is your opportunity to confirm the Contract Date.
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TBD FLIPS
STEP 12: Once you have completed Steps 1-11, click
the dot to the right of the “TBD Flip” field to enter the
current date and submit your TBD Flip. Then click the
“Save” button.
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SERVICING AND PAYMENT
QUESTIONS
There are 3 possible scenarios
concerning who a borrower should
contact for their current loan.
1. When LSMG owns the loan.
2. When the loan is “Committed” to
another lender. Committed
means that we are most likely
going to sell the loan to this
lender, but it is not guaranteed
that we will.
3. When we have sold the loan to
another investor.
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SERVICES UPDATE
If Contact information is missing for any of the 5 services below, click the “Click Here to go to
Parties” button or right click on the “Parties Screen” on the left-hand Byte window (this will open
the Parties Screen in the right hand Byte window).
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SERVICES UPDATE
This screen also shows the individual columns for Appraisal, Title and Homeowners
Insurance AKA HOI/HO6
The “Comments” sections are for the Ops Assistant, Processor, and/or Reviewer to
populate and communicate with the LO.
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SERVICES UPDATE
In continuation these two columns relate
to your Flood Insurance and Master
Policy (if applicable i.e.: Condo).
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STATUSGRAM
This screen enables Loan Officers and their support staff to communicate loan
status and other details to their borrowers. These “Status Grams” can be created
on demand, at any point throughout the loan process, and e-mailed to the
borrower. Note: The “Status Gram” feature requires Microsoft Office 2007 or later.
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STATUSGRAM
STEP 1: to add a Message to the
borrower and have it saved in
Byte, enter the message you wish
to convey to your borrower on the
“Status Gram Client” screen.
(If you do not want your changes saved in
Byte, skip to step “4. Updating WITHOUT
SAVING changes”. You will have an
option to enter your changes later, directly
into Word.)
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STATUSGRAM
•
“Comments to Selling
Agent” box is used to
correspond with the Selling
Agent regarding any
updates or additional
information regarding the
loan.
•
“Comments to the
Listing Agent” box is
used to correspond with
the Listing Agent regarding
any updates or additional
information regarding the
loan.
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STATUSGRAM
STEP 2: After you have completed your changes (or if none were
made), click the “Print” icon to preview your “Status Gram” in Word.
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STATUSGRAM
Only one per
category
Select the document you want to use. All other versions of MS Office: select the
“Status Gram Client - Purchase” and “Status Gram Client-Refinance” document.
In addition to the client selection, “Status Gram-Listing Agent,” or “Status GramSelling Agent” can be chosen to print.
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STATUSGRAM
From the Print window,
click “Preview”.
(Do NOT click print yet, your
form will not be updated)
Click “OK”.
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STATUSGRAM
If you see this pop-up, Click “Yes”. Otherwise, proceed to next
step. MS Word will then open.
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STATUSGRAM
STEP 3: Click “Enable Content". This will pull data from
Byte to update the Word document.
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STATUSGRAM
If you see this pop-up, Click “Yes”. Otherwise, proceed to next step.
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STATUSGRAM
STEP 4: Once the Word document has populated the necessary
information, you can add to, or edit the sections “Message From Your
Loan Originator” and “Contact My Right Hand Person”.
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STATUSGRAM
Once all information has been updated, close
out of the Word document and click Save.
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STATUSGRAM
The document will automatically convert to a PDF, and attach itself to an
email addressed to the borrower, if their email address is in Byte, and copying
your Right Hand Person. It will also save a copy of this PDF to your Desktop
with the name of “[Borrower’s Nickname or First Name]-Status Gram Client”.
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STATUSGRAM
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TPO CLOSING FEE SHEET
This section includes a new field for “LO Closing Date Scheduled w/ Sett
Agent” which should be filled in once the actual closing is scheduled with
the Settlement Agent. There is also another field to capture whether or not
it is Bank REO and needs the CD a number of hours prior to closing.
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TPO CLOSING FEE SHEET
These fields will be populated by the LSMG Operation’s Team.
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TPO CLOSING FEE SHEET
This section shows the amount of cash due at closing. There are boxes in this
section for the following:
• If the borrower is expecting to bring $0;
• OR dollar amount the borrower is expecting to bring to closing;
• and for VA Loans Only, there is a field to tell the Closer what to do with excess
funds from the Seller(s)
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TPO CLOSING FEE SHEET
• The button on the right of
this section “Calculate
Snapshot”, captures the
current values of the items
listed and enters the
values. The screen
automatically updates the
Difference column.
• Loan Officers are allowed
to click this Snapshot
button anytime, but there
is no historical saving
behind the scenes for this
screen so values listed on
this screen will be the only
values captured.
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TPO PROFILE REVIEWS & REPORTS
The ability to run reports is now available on the main screen
of the TPO Loan Officer Profile.
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HOW TO ORIGINATE & DELIVER
HomeReady™ MORTGAGES
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AN IMPORTANT NOTE
ABOUT THE SEMINAR CONTENT
While every effort has been made to ensure the reliability
of the session content, Fannie Mae’s Selling and
Servicing Guides and their updates, including Guide
Announcements and Release Notes, are the official
statements of Fannie Mae’s policies and procedures and
control in event of discrepancies between the information
in this seminar and the Guides.
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HomeReady™ LENDER BENEFITS
Designed for creditworthy, low-to moderate-income borrowers, with
expanded eligibility for financing homes in designated low-income, minority,
and disaster-impacted communities.
•
Underwrite with confidence. Desktop Originator offers a comprehensive credit
risk assessment and eligibility determination, and automated identification of
potentially HomeReady™-eligible loans (may not apply to TBD loans).
•
Improved and simplified pricing is better than or equal to Fannie Mae standard
loan pricing.
•
Standard risk-based pricing waived for LTVs >80% with a credit score >=680
(risk-based loan-level price adjustment cap of 1.50% applies for loans outside
of these parameters).
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HomeReady™
BORROWER BENEFITS
•
Low down payment. Up to 97% financing for home purchase with many
borrower flexibilities.
•
Flexible sources of funds can be used for the down payment and closing costs
with no minimum contribution required from the borrower’s own funds (1-unit
properties).
•
Conventional home financing with cancellable monthly MI per Servicing Guide
policy; reduced MI coverage requirement above 90% LTV (25%).
•
Homeownership education helps buyers get ready to buy a home and be
prepared for the responsibilities of homeownership. The required training is an
online course provided by Framework.
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BORROWER INCOME ELIGIBILITY
Aligns with Fannie Mae’s Housing Goals
BORROWER INCOME ELIGIBILITY
2015 ELIGIBILITY
(Fannie Mae analysis using 2015 data)
No income limit: Properties in lowincome census tracts
31% of census tracts
100% of AMI: Properties in highminority census tracts and designated
disaster areas
20% of census tracts
80% of AMI: All other properties
49% of all U.S. census tracts
AMI = Area Median Income (AMI data source: FHFA)
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ELIGIBILITY
1-Unit
2- to 4-Unit
Loan Purpose
Purchase or Limited Cash-out Refinance (95%)
Product
• FRM: 10-, 15-, 20-, or 30-year terms
• ARM: 5/1 (2/2/5 and 2/2/6 caps only), 7/1, and 10/1
ARMs are not permitted for 3-4-unit properties
Occupancy and
Property Type
1-unit principal residence, including
eligible condos, co-ops, PUDs.
90% Max LTV/CLTV
2- to 4-unit
principal residence
(no condos, coops, or
manufactured
housing)
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ELIGIBILITY
1-Unit
Maximum
LTV/CLTV and
Subordinate
Financing
Purchase:
• 97% (FRM)
• No first-time home buyer
requirement (no ownership
in the past 3 years).
2- to 4-Unit
Purchase or LCOR
• 2-unit: 85% (FRM); 75%
ARM
• 4- to 4-unit: 75% (FRM
only)
• CLTV up to 105% with eligible Community Seconds® such
as FHLBA
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ELIGIBILITY
Minimum
Borrower
Contribution
(own funds)
Acceptable
Sources of
Funds for Down
Payment and
Closing Costs
1-Unit
2- to 4-Unit
$0
3%
• Gifts, grants, and Community Seconds®
• Cash-on-hand for 1-unit properties only
• Loan may have more than one Community Seconds® (i.e.,
third lien) up to the maximum 105% CLTV (see
Community Seconds® fact sheet)
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BORROWER
INCOME FLEXIBILITIES
Non-borrower household income
May be considered as a compensating
factor. NOT part of qualifying income.
Non-occupant borrower
Consider income, assets, credit, and
liabilities (LTV up to 95%)
Boarder income
Include as qualifying income
Rental income from an accessory unit
Include as qualifying income
Fannie Mae’s Economic and Strategic Research group reports a “demographic sea change” in the housing
market; characterized by the rise of the Millennials, increased diversity, and a growing elderly population;
and new household growth is being driven by traditionally underserved segments.
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EXTENDED-INCOME
HOUSEHOLDS
Extended-household living arrangements are more common among underserved
populations, including low- to moderate-income, minority, and immigrant households.
• HomeReady™ recognizes the growth of
extended-family living arrangements by allowing
the existence of non-borrower household
income to be considered.
• NAR* reports 13% of home purchases in 2014
were by a multigenerational household.
* National Association of Realtors 2015 Home Buyer and Seller Generational Trends Report
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NON-BORROWER HOUSEHOLD
INCOME FEATURE:
REQUIREMENTS & UNDERWRITING
•
•
•
•
•
•
•
Considered as a compensating factor to allow a debt-to-income
(DTI) ratio greater than 45%, up to 50%.
Not included as qualifying income, and does not impact the DTI
The non-borrower household member is NOT REQUIRED TO BE
A FAMILY MEMBER.
The non-borrower’s income must be at least 30% of the total
monthly qualifying income being used by the borrower – the 30%
could be provided by multiple people.
The non-borrower income must be documented in accordance
with standard Selling Guide policy based on the income type.
There must be a signed statement of the intent for the nonborrower to reside with the borrower for a minimum of 12 months.
(Fannie Mae provides optional Form 1019 for this purpose.)
Must be shown in Byte as an Other Income type of
“Non-Borrower Household Income”.
1003 Page 2
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BYTE UPDATE
1003 PAGE 2
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UNDERWRITING
NON-OCCUPANT BORROWERS
Non-Occupant
Borrowers
Non-occupant borrower’s income, assets, credit and
liabilities permitted for qualifying:
• Maximum 95% LTV
Income considered part of qualifying income and
Subject to HomeReady™ income limits
Ownership of Other
Property
Occupant borrower(s) may not have an ownership interest
in any other residential property at the time of closing. No
limitation on ownership of other property for non-occupant
borrowers.
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WHAT’S THE DIFFERENCE BETWEEN A
NON-OCCUPANT BORROWER AND A NONBORROWER HOUSEHOLD MEMBER?
Is a borrower
on the loan?
Non-Occupant
Borrower
Non-Borrower
Household
Member
Lives in the
home?
Income
included in
qualifying
income?
Must meet
income
eligibility
requirements?
X
X
X
X
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UNDERWRITING
BOARDER INCOME
AND RENTAL INCOME
1-Unit
2- to 4-Unit
Boarder Income
Boarder income (relatives or nonrelatives):
• Up to 30% of qualifying income
• Documentation required:
- Shared residency for the most
recent 12-month period.
- Boarder income for at least 9
of the most recent 12 months
(averaged over 12 months).
Not eligible
Rental Income
Rental income from a 1-unit property
with an accessory unit may be used
as qualifying income.
Rental income from 2- to
4-unit property may be
used as qualifying income
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WHAT’S THE DIFFERENCE BETWEEN A
NON-OCCUPANT BORROWER AND A NONBORROWER HOUSEHOLD MEMBER?
Rent paid monthly
Rent from someone
sharing living quarters
Boarder
Income
Rent from a separate
dwelling unit (as
identified by the
appraisal) with a
kitchen and a
bathroom
X
Rental Income
X
NOTE: Rental income refers to income generated either from a 1-unit property with an accessory
unit or from a 2- to 4-unit property.
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MORTGAGE INSURANCE(MI)
COVERAGE AND FINANCED MI
MI Coverage
• 25% MI coverage for the LTV ratios 90.01-97%
• Standard MI coverage for LTV ratios of 90% or less
Financed MI
MI may be financed up to the maximum LTV for the
transaction, including the financed MI
Lender-Paid MI
May be used
NOTE: Minimum coverage may be used with additional LLPA;
the HomeReady™ LLPA waiver or cap does not apply
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HOMEOWNERSHIP
EDUCATION
1-Unit
2 to 4-Unit
Pre-Purchase
• Homeownership education required for at least one borrower.
Homeownership • Must be provided through Framework
Education
(https://homeready.frameworkhomeownership.org), an online
•
•
•
program approved by Fannie Mae. Some exceptions apply.
$75 fee paid by the borrower to Framework for a simple,
accessible online program with email support 7 days a week.
Lenders may choose to provide a credit against closing costs.
Although one-on-one counseling is optional for HomeReady™,
Framework offers borrowers a referral to a HUD-approved
counseling agency for additional assistance.
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HOMEOWNERSHIP
EDUCATION (continued)
1-Unit
2 to 4-Unit
Transition
Period:
Previous
Home-Buyer
Education
In lieu of the Framework course, Fannie Mae allows lenders to accept a
certificate of pre-purchase education/counseling from a HUD-approved
counseling agency dated within the previous six months before the loan
application date and before September 30,2016.
Landlord
Education
Not applicable
Landlord education required in
accordance with Selling Guide
requirements (not available through
Framework)
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™
HomeReady
SUMMARY
Redesigned/enhanced affordable lending product with a new name
Borrower Eligibility
•
Aligned with Fannie Mae’s regulatory housing goals
(includes underserved census tracts and minority,
disaster areas)
•
DO identifies borrower eligibility for all loans submitted
to DO
Pricing – Improved and Simplified
•
Standard risk-based pricing waived for LTVs >80% with
a credit score >=680
•
Competitive borrower payment
•
Execution always better than or equal to FNM standard
pricing
Homeownership education
•
Mandatory pre-purchase homeownership education via
online Framework course
•
Access to post-purchase homeownership advisors
New Features
•
Eligibility
– DO identifies borrower eligibility for all loans
submitted to DO
– Manufactured Housing to 95% (DO only)
– HomeStyle Renovation to 95% (requires lender
approval)
•
Underwriting/Income Flexibility
– Household income as a compensating factor for
DTI > 45% to 50% (DO only)
– Non-occupant borrower income
– Rental income from accessory units (1-unit
property)
– Boarder income documentation flexibility
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EXAMPLE:
NON-OCCUPANT BORROWERS
A young couple is buying a home. His parents are willing
and able to be borrowers on the loan, but they will not live
in the home. For HomeReady™, the parents’ income will
be considered in meeting income eligibility requirements
(based on the property location); their income, assets,
credit, and liabilities are considered in underwriting; and
their income is considered in calculating the DTI ratio.
73
EXAMPLE:
EXTENDED-INCOME HOUSEHOLD
A borrower is looking for a larger home so her aging parents
can move in with her and her family. Her parents have
sufficient income to help with expenses. Her parents will not
be borrowers on the loan, but the existence of their income
can be considered as a compensating factor in DO for the
borrower to have a DTI above 45%, up to 50%.
74
EXAMPLES:
RENTAL INCOME FROM A 1-UNIT
vs. BOARDER INCOME
Rental Income: The home being purchased is a 1-unit
property that has a garage apartment, which includes a
functioning kitchen and bathroom, that can be rented out.
Boarder Income: A roommate has been sharing living
quarters with the borrower for the past 12 months and plans to
live in the newly purchased home.
75
WHEN MAY A BORROWER USE CASH-ON-HAND?
Down Payment
Acceptable
Uses of
Cash-OnHand
Closing Costs
Prepaid Items
Reserves
(if required)
X
NOTE: Lenders may deliver purchase money mortgages for 1-unit properties with cash-on-hand as an acceptable
source of funds.
76
EXAMPLE:
CASH-ON-HAND
A borrower who does not have a bank account wants to use money he has
saved (cash-on-hand) for his down payment to purchase a 1-unit home.
• This is acceptable if the borrower customarily uses cash for expenses.
• In addition, the lender must:
– Verify that the amount of funds saved is consistent with the borrower’s previous
payment practices
– Confirm that funds are in a financial institution account or an acceptable escrow
account (at the time of application, or no less than 30 days prior to closing)
– Obtain a written statement from the borrower that discloses the source of funds and
states that the funds have not been borrowed.
– Determine that the borrower’s credit report and other verifications indicate limited or
no use of credit and limited or no depository relationship between the borrower and a
financial institution.
77
INCOME ELIGIBILITY LOOKUP TOOL
www.fanniemae.com/single
family/homeready
1. Click on Income
Eligibility Tool
2. Type in address
and select “Go”
78
LOAN COMPARISON
HomeReady
FHA
Home Possible
79
HomeReady™
MARKETING
MATERIALS
80
81
82
LENDER CREDITS
83
LENDER CREDITS
Lender Credits are now entered as a negative discount point on the Loan Estimate Page 2
Screen in Byte instead of on the 1003 Page 3 Screen.
** Please remember that these credits, once applied, cannot be removed as they will be shown on the Loan Estimate disclosed
to the borrower. If you do not enter a lender credit at the beginning of the application process and the decision is made to
provide a lender credit, the lender credit may be entered later in the process by your loan processor.
84
MANUFACTURED HOUSING
85
MANUFACTURED HOUSING
OVERLAYS
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Purchase loans only
Maximum LTV for any loan program 90%
Minimum 660 credit score for all borrowers
Maximum DTI ratios of 31/43
Payment shock maximum of 50%
Minimum of 2 months PITI in reserves
No gift funds allowed for financing
Borrower(s) must pass the LSMG residual test
No single wide homes allowed
Home must be 2008 or newer
No manufactured home condos
Primary Residence only
Available Loan Products: FHA, VA, USDA and Conventional
Loan Products NOT available: Jumbo and Freddie Mac Home Possible
86
MANUFACTURED HOUSING
OVERLAYS CLAYTON HOMES
•
•
•
•
•
•
•
•
•
•
•
•
•
Purchase loans only
Minimum 660 credit score for all borrowers
Maximum DTI ratios of 31/43
Payment shock maximum of 50%
Minimum of 2 months PITI in reserves
No gift funds allowed for financing
Borrower(s) must pass the LSMG residual test
No single wide homes allowed
Home must be 2008 or newer
No manufactured home condos
Primary Residence only
Available Loan Products: FHA, VA, USDA and Conventional
Loan Products NOT available: Jumbo and Freddie Mac Home Possible
87
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