Louisiana Housing Corporation Market Rate GNMA Program

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Louisiana Housing Corporation Market Rate GNMA
Program

• Lenders Training

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Lender Training Agenda

• Welcome Introductions
• 
  
• Market Rate GNMA Program Overview
  
•  
• Step by Step Reservation Guide Document
  Introduction
• Questions

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Overview

• State-wide program
• 30 year fixed competitive rates
• Down Payment Assistance (DPA Grant) - 3.0
• Minimum FICO Credit Score 640
• Available Mortgage Types FHA, VA and RD
• First-time homebuyer requirement does not apply
• Purchase money transactions only
• Properties
• Single family dwelling (1-unit), condos and
  townhomes, double wide mobile homes permanently
  affixed (FHA financing only)
• Lender Compensation 1.5 of mortgage note
  amount
• Origination/Discount Fees None Allowed
• Current income limit is maximum of 115 AMI

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Rates

• Rates will be posted daily to the LHC website at
  www.lhc.la.gov and a term sheet will be emailed
  out by 900 am.
• Reservations can only be made between the hours
  of 900 am 600 pm daily.
• After the rate is posted at 900 am, there is a
  possibility the rate may change. Always confirm
  current rate prior to locking rate.

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Reservations

• Step by step instructions to make a reservation
  are contained in the Market Rate GNMA Program
  Reservation Guide Exhibit E.
• Once the reservation is completed, print the
  Market Rate GNMA Program Loan Confirmation
  Exhibit A.
• Export Fannie 3.2 file from your LOS and upload
  into SMC Website to create a SMC loan Number.
  This will allow you the ability to upload future
  documents. The website address is
  https//loans.approvedfast.com/standard/wholesale_
  pe595/index.php
• Upload the Market Rate GNMA Program Loan
  Confirmation document and the LHC Market Rate
  GNMA Program Term Sheet to https//loans.approvedf
  ast.com/standard/wholesale_pe595/index.php

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Screen Shot of SMC B2B
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Screen Shot of Upload Page for SMC
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Lock Loan with SMC
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Locking Loan with SMC
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Select Product
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Send Data and Request Lock
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Upload to SMC the LHC Registration Form
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Market Rate GNMA Program Lender Certification

• The lender is required to complete and sign the
  Market Rate GNMA Program Lender Certification
  Form Exhibit C. The Lender Certification
  confirms the borrower(s) do not qualify or there
  are no funds available for a reservation under
  the following LHC programs
• Mortgage Revenue Bond Program
• CDBG Parish Programs administered in Acadia,
  Calcasieu, Cameron, Iberia, Jefferson,
  Plaquemine, St. Tammany, Tangipahoa, Terrebonne,
  Vermilion and Washington Parish
• and that there is a reasonable expectation that
  the borrower(s) qualify for the Market Rate GNMA
  Program

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Market Rate GNMA Program Lender Certification

• Submit the completed Market Rate GNMA Program
  Lender Certification Form, Exhibit C to the
  following
• singlefamily_at_lhc.la.gov and
• https//loans.approvedfast.com/standard/wholesale_
  pe595/index.php. Note the form must be
  associated to the appropriate SMC loan number.

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Upload to SMC the LHC Certification Form
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Market Rate GNMA Program Lender Certification

• NOTE The Market Rate GNMA Program Lender
  Certification Form, Exhibit C must be provided no
  later than 15 calendar days from the date of the
  mortgage reservation.

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Market Rate GNMA Program Extension Form

• If the lender determines a loan cannot meet the
  45 day closing deadline or the 70 day purchasable
  loan deadline, lenders may request a one-time 30
  day extension for the cost of 375 by completing
  the Market Rate GNMA Program 30 Day Extension
  Form.

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Market Rate GNMA Program Extension Form

• Submit the completed Market Rate GNMA Program 30
  Day Extension Form Exhibit D to the following
• singlefamily_at_lhc.la.gov and
• https//loans.approvedfast.com/standard/wholesale_
  pe595/index.php. Note the form must be associated
  with the appropriate SMC loan number.

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Market Rate GNMA Program Extension Form

• The 375 fee will be netted from the first
  mortgage loan purchase price when purchased by
  SMC.
• If an extension is elected but the mortgage is
  not purchased by SMC, the Lender will be billed
  by LHC for the extension fee of 375.
• Any Lender with total outstanding extension fees
  of 3750 will not be eligible to continue
  participation in the program until the balance is
  paid in full.

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Deadline Requirements

• Reservations are only accepted between the hours
  of 900 am 600 pm daily.
• Lender Certification must be received within 15
  days of the reservation date. Failure to
  complete and submit this form will result in
  automatic termination of the reservation.
• Closed loan files must be delivered to SMC within
  45 days of the reservation date. If the closed
  loan cannot be delivered to SMC within 45 days,
  the loan will be cancelled unless the lender
  completes and submits the 30 Day Extension Form
  to LHC and SMC prior to the expiration of the
  loan reservation.

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Market Rate GNMA Program Deadline Requirements

• If the 30 day extension is requested, the loan
  must be delivered to SMC within 75 days of the
  reservation date. Failure to deliver will result
  in termination of the reservation and the loss of
  the 375 extension fee.
• The loan must be purchased by SMC within a 70 day
  period of the reservation date or within a 100
  day period of the reservation date with the 30
  day extension.
• Failure to clear Funding Conditions will result
  in loans being returned to the lender.

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Market Rate GNMA Program Requisition Form
Exhibit H

• The lender must email the Market Rate GNMA
  Program Requisition Form /Wiring Instructions,
  Exhibit H and Complete Preliminary HUD-I to
  singlefamily_at_lhc.la.gov and mrbaccounting_at_lhc.la.g
  ov no later than 24 hours prior to the scheduled
  loan closing date with cut off being 200 pm.
• The assistance should be labeled LHC Down
  Payment Assistance or LHC Closing Cost
  Assistance on the complete preliminary HUD-I.
• Additionally, upload the completed Market Rate
  GNMA Program Requisition Form, Exhibit H to the
  following and associate to the appropriate SMC
  loan number https//loans.approvedfast.com/standa
  rd/wholesale_pe595/index.php

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Upload Requisition Form to SMC
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Upload Closed Loan File

• Upload the completed Closed Loan File to the
  following and associate to the appropriate SMC
  loan number https//loans.approvedfast.com/standa
  rd/wholesale_pe595/index.php

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Upload to SMC Closed Loan File
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Clear Funding Conditions

• Upload the completed Funding Conditions to the
  following and associate to the appropriate SMC
  loan number https//loans.approvedfast.com/standa
  rd/wholesale_pe595/index.php

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Typical Funding Conditions

• Incomplete closed loan files
• Lenders not submitting Funding Conditions in a
  timely manner
• Requested Conditions being delivered sporadically
• Act of Correction Omission of Title Insurance
  Rider to the mortgage as required by LA, Tax
  Exempt Rider and Lender Name incomplete or
  missing
• Hazard/Flood Insurance Required 80 Total
  Estimate of Cost New as shown on appraisal
• Hazard/Flood Insurance Premium increases Need
  evidence of payment of additional cost and notice
  to borrower of increased escrows required
• Evidence of MERS registration
• Evidence of Flood Zone Determination and Life of
  Loan tracking transfer
• RD documents missing or incomplete RD case number
  and evidence of payment of RD fee
• Current payment history and evidence of payment
  of monthly MI

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Rate Lock

• Once a reservation is made, the rate lock will
  remain with the borrower
• throughout the lock period.

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Program Fees

• Doc Review Fee - 175
• Tax Service Fee - 85
• Flood Certification Fee - 14.50
• Wire Fee - 20

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Loan Cancellations

• Should the lender cancel a reservation and later
  request reinstatement of the reservation within
  the original 45 day period, the higher of the
  original market rate or current market rate will
  prevail.
• If the lender cancels a reservation and later
  reserves the same borrower with a different
  property address, a new loan number will be
  issued at the current market rate.

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Loan Cancellation

• It is important for the lenders to cancel the
  loan with LHC as soon as you determine the loan
  will not close.
• LHC will report to SMC all canceled loans and SMC
  will cancel the loan in SMCs system.
• Cancellations can occur if lenders fail certain
  program requirements. For example, not completing
  lender certification within 15 days of
  registration, or not clearing Funding
  Conditions in a timely manner.

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Market Rate GNMA Program Documents

• The following documents will be posted to the LHC
  Website at
• http//www.lhc.la.gov/programs/homeownership/sf_do
  wnloads.aspx
• in the Market Rate GNMA Program dropdown box
• 1. Exhibit A Market Rate GNMA Program Loan
  Confirmation
• 2. Exhibit B Market Rate GNMA Program
  Reservation Request Form
• 3. Exhibit C Market Rate GNMA Program Lender
  Certification Form
• 4. Exhibit D Market Rate GNMA Program 30 Day
  Extension Form
• 5. Exhibit E Market Rate GNMA Program
  Reservation Guide
• 6. Exhibit F Market Rate GNMA Program Maximum
  Permissible
• Mortgage Limits
• 7. Exhibit G Market Rate GNMA Program Income
  Limits
• 8. Exhibit H Market Rate GNMA Program
  Requisition Form Wiring
• Instructions

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Benefits to Program

• Borrower does not have to be a first-time
  homebuyer
• Borrower receives down payment assistance
• Mortgage loan limits exceed MRB limits
• NO potential repayment of a soft second mortgage
  
• NO IRS recapture provision
• NO Compliance package required to LHC
• NO 75 compliance fee
• NO bond documents to be signed by Borrower(s)
• Possibility of going to 140 AMI

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Market Rate GNMA Program Mortgage Origination
Agreement

• Prior to participation in the program, all SMC
  approved lenders must execute and notarize the
  Mortgage Origination Agreement.
• If the lender has not received already, the MOA
  will be emailed to lenders after this training
  session.

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Contacts

• Program Administrator
• Brenda Evans, bevans_at_lhc.la.gov 225-763-8852
• Administrative Assistant
• Carrie Barbin, cbarbin_at_lhc.la.gov 225-763-8867
• Manager
• Mary Antoon, mantoon_at_lhc.la.gov 225-763-8649
• Compliance Supervisor
• Mary Boudreaux, mboudreaux_at_lhc.la.gov
  225-763-8640
• Technical Supervisor
• Sonja Smith, ssmith_at_lhc.la.gov 225-763-8654
• Compliance Specialists
• Alex Stewart, astewart_at_lhc.la.gov 225-763-8653
• Cody Henderson, chenderson_at_lhc.la.gov
  225-763-8650
• Laura Womack, lwomack_at_lhc.la.gov 225-763-8628

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SMC Contacts

• Account Manager JoAnn Crow
• jcrow_at_stanmor.com 504-569-3707
• Secondary Supervisor Tricia McBride
• tmcbride_at_stanmor.com 504-569-3709
• Secondary Lock Desk Judy Bingham
• jbingham_at_stanmor.com 504-569-3781
• Funding Supervisor Sheila Hunter
• shunter_at_stanmor.com 504-569-3773
• For Questions and/or Concerns contact
  lockdesk_at_stanmor.com

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• Questions?