Training Presentation

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FANNIE MAE 97 LTV OPTIONS Program Training
Offered by FIRST MORTGAGE CORPORATION
January 22, 2015
Desktop Underwriter is a registered trademark of
Fannie Mae. Loan Prospector is a registered
trademark of Freddie Mac. This presentation is a
summary and is not complete. This information is
for mortgage professionals only and should not be
distributed to or used by consumers or other
third-parties. Information is accurate as of the
date shown below and is subject to change without
notice. 1/22/2015
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AGENDA

• Introduction
• Available 97 Programs
• Eligibility Guidelines
• Program Guidelines
• Underwriting Guidelines
• Pricing and Fees
• FMC Resources and Support

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Introduction to the 97 LTV OPTIONS PROGRAM

• According to consumer research conducted by
  Fannie Mae, the primary barrier to homeownership
  for first-time home buyers is saving money for
  the down payment and closing costs.
• In support of ongoing efforts to expand access to
  credit and support sustainable homeownership,
  Fannie Mae offered the 97 LTV/CLTV/HCLTV
  financing to help home buyers who would otherwise
  qualify for a mortgage but may not have the
  resources for a larger down payment.
• In addition, Fannie Mae is offering this same
  program to existing Fannie Mae borrowers.
• These options are designed to help serve
  creditworthy borrowers and expand business
  opportunities.

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Available97 LTV OPTION PROGRAMS

• Non-MCM Program Regular 97 LTV Standard
  Program
• Purchase transactions if at least one borrower is
  a First-Time Homebuyer
• Standard Limited Cash-Out Refinance Option for
  existing Fannie Mae loans
• No Income Limits, No Counseling required
• MyCommunityMortgage (MCM) Program See separate
  Training coming soon
• Purchase transactions only if at least one
  borrower is a First-Time Homebuyer
• Lower MI
• Standard LLPA of .75
• Income Limits apply
• Counseling required

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• Eligibility Guidelines
• Program Guidelines
• Underwriting Guidelines

97 STANDARD PROGRAM
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Eligibility Guidelines PURCHASE
Eligible Borrowers Must be a First Time Home Buyers At least 1 borrower must be a FTHB FTHB is defined as someone who has not owned any residential property in the last 3 years
Income Limits No Income Limit required
Minimum MI Coverage 18 MI Loan-Level Price Adjustment or 35
Home-buyer Education and Counseling Not required
Minimum Borrower Contribution Standard contribution requirements apply
Pricing Standard risk-based LLPAs Based on credit score and LTV range
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Eligibility Guidelines REFINANCE (Limited
Cash-Out)
Existing Loan Loan must be owned (or securitized) by Fannie Mae Documentation may come from the current servicer, Fannie Maes loan lookup tool, or any other eligible source
Minimum MI Coverage 18 MI Loan-Level Price Adjustment or 35
All other guidelines Follow standard limited cash-out refinance guidelines
Pricing Standard risk-based LLPAs Based on credit score and LTV range
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Eligibility Guidelines contd
Eligible Properties 1 Unit SFR FNMA Eligible Condos FNMA Eligible PUDs
Ineligible Property / Loan Types Manufactured Homes 2-4 Unit Properties 2nd Homes Investment Properties High Balance loans ARM loans
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Program Highlights
Topic Description
Program Types Up to 30 Year Fixed Rate Only
LTV 95.01 to 97 LTV
CLTV 95.01 to 97 if subordinate lien is NOT a Community 2nd 105 if subordinate lien is a Community 2nd HCLTV 95.01 to 97
Maximum Loan Amounts 417,000 Maximum
Occupancy Type Primary Residence
Loan Purpose Purchase Transactions No Cash-Out Refinances
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Sample MI MATRIX MGIC ALL States except WA
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Underwriting Guidelines
Topic Description
Underwriting Method Desktop Underwriter (DU) required Must have an Approve/Eligible recommendation
Manual UW Not allowed
DTI Follow DU Approval
Down Payment Closing Costs Follow standard FNMA guidelines. Eg., gifts, grants, Community 2nds in addition to borrowers own funds
Reserves As determined by DU. May come from eligible gifts.
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Underwriting Guidelines
Topic Description
PURCHASE DU Input 1003 in DU must show at least 1 borrower is a FTHB Section VIII of Form 1003 will indicate FTHB requirement
LCOR DU Input Select Fannie Mae in the Owner of Existing Mortgage field Additional Data Screen in the Full 1003
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• Rates and Fees
• Reminders
• FMC Support

INTEREST RATES/FEES
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Interest Rates Fees
Topic Guidelines
Interest Rates See Page 3 of the FMC Rate Sheet
Origination Fees No max required - Follow new HUD RESPA rules
Discount Fees Buyer or Seller Discounts allowed subject to consumer laws Discount Points allowed only for loan level price adjustments (subject to FMCs discretion)
Rebate/Discount Pricing See FMC rate sheet
Allowable Fees Must be reasonable and customary and fully disclosed to the borrower in accordance with all agencies, federal, state and local laws See FMC fee sheet for our lender fees
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FMC SUPPORT

• TRAININGS
• First Mortgage offers FREE Weekly ONLINE
  Trainings
• See the FMC website for the January 2015 Training
  schedule
• Trainings for January 2015
• 1/13 FMC Product Overview
• 1/15 ACCESS/FIRSTDOWN Program
• 1/20 NEW HomeStyle Program Training
  RETAIL/BUILDER Only
• 1/22 NEW 97 LTV Program Training

• FMC WEB SITE
• Rate Sheets
• Matrices
• FMC Overlays
• Training Schedule/Materials
• Guidelines
• Forms
• Marketing
• Tools
• Calculators

• SUPPORT TEAM
• RETAIL Contact your FMC
• Loan Help Team
• Wholesale Brokers /
• Correspondent Lenders
• Contact your FMC Account
• Executive
• For help with
• Guidelines
• Program questions
• Scenarios
• Pricing / Fees
• Loan Submissions
• Trainings

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THANK YOU FOR YOUR BUSINESS
On behalf of First Mortgage, thank you for
joining todays training and we hope the
information provided will help you build your
business! The main purpose of First Mortgage
Corporations (FMC) training documents is to
assist real estate and mortgage professionals in
developing entry-level competence with loan
programs. While FMC staff, employees, contractors
and contributors take care to ensure the accuracy
of the content of training documents, FMC makes
no warranties as to the accuracy of the
information contained within these materials.
Furthermore, every user of this material uses it
understanding that he or she must still conduct
his or her own original legal research, analysis
and drafting. In addition, every user must refer
to the relevant legislation, case law,
administrative guidelines, rules and other
primary sources. FMC specifically disclaims any
liability for any loss or damage any user may
suffer as a result of information contained
within this training material. While the
information contained in FMCs training material
addresses guidelines and issues surrounding
mortgage programs, these materials do not
constitute legal advice. All non-legal
professionals are urged to seek legal advice from
a lawyer.