Transcript Illinois Association of Realtors – Housing Finance Panel

ILLINOIS HOUSING
DEVELOPMENT
AUTHORITY
Tara Pavlik
Managing Director Homeownership
3/5/2015
THANK YOU!
THANK YOU!
April 26, 2020
NEW PROCESS
RESERVATION/ COMMITMENT
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LOAN COMMITMENT IS PROCEDURALLY THE SAME AS THE CURRENT RESERVATION PROCESS.
INSTEAD OF RECEIVING A RESERVATION CONFIRMATION YOU WILL RECEIVE A COMMITMENT.
– ONCE THE LOAN IS COMMITTED, YOU WILL HAVE IMMEDIATE ACCESS TO THE FHA
COMMITMENT LETTERS (IF APPLICABLE)
– THE LENDER CLOSES THE LOAN (AFTER LENDER DETERMINES BORROWER IS TAX CODE
COMPLIANT)
– THE COMMITMENT IS VALID FOR 60 DAYS
• WITHIN THOSE 60 DAYS THE LOAN MUST BE DELIVERED AND SOLD TO US BANK
MRBP.
• IF NOT PURCHASED BY THE 60TH DAY, LENDER RECEIVES .25 BPS REDUCTION TO THE
SRP.
• IF NOT PURCHASED BY THE 90TH DAY THE LOAN IS PURCHASED AT IHDA’S
DISCRETION. HOWEVER, WE’RE UNDER NO OBLIGATION TO PURCHASE THE LOAN.
• ONCE A LOAN IS RESERVED, A LENDER CANNOT CANCEL AND RE-RESERVE ANOTHER
LOAN FOR THE SAME BORROWER WITH RESPECT TO THE SAME PROPERTY FOR 60 DAYS
AFTER THE INITIAL CANCELLATION.
HOMEOWNERSHIP NEW FORMS
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REVISED, EASIER TO COMPLETE ONLINE DOCUMENT SETS
– ALL ACCESSIBLE ON IHDA.ORG,
– UNDER: PARTNER, INFORMATION, FREQUENTLY USED FORM AND DOCUMENTS
– DOCUMENT SETS- FILLABLE PDF
– ELECTRONIC SIGNATURES AVAILABLE TO ALL LENDER THAT WISH TO PARTICIPATE
• TO PARTICIPATE LENDER MUST SEND IN TO IHDA ON COMPANY LETTER HEAD THAT THEY WILL BE
USING ELECTRONIC SIGNATURES AND A SAMPLE OF A 1003 SIGNED ELECTRONICALLY
– ALL DOCUMENTS CAN BE COMPLETED WITH INITIAL DISCLOSURES ( THE ONLY EXCEPTION WOULD BE
THE INCOME CALCULATOR AND SELLER AFFIDAVIT)
AUTHORIZATION AND RELEASE
– THIS IS MANDATORY- IHDA WILL NO LONGER PURCHASE A LOAN THAT HAS THIS MISSING
– NO EXCEPTIONS!
– LOCATED ON IHDA.ORG
– EXPLANATION
REQUIRED DOCUMENT!!!
HOMEOWNERSHIP NEW PROCESS
IN MARCH 2015, IHDA WILL INSTITUTE A NEW OPERATIONAL POLICY.
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INVESTOR PACKAGE UPLOAD ( ALL ITEMS REQUIRED YOU WOULD NEED FOR INVESTOR DELIVERY)
– DELIVERY CHECKLIST ( ALL ITEMS THAT ARE SEND FOR INVESTOR DELIVERY)
IHDA PACKAGE UPLOAD ( ALL DOCUMENTS NEEDED FOR TAX CODE COMPLIANCE)
– SUBMISSION COVER AND DATA SUMMARY ( APPRAISAL DATA IS REQUIRED, ALL FINAL NUMBER MUST BE
ACCURATE- IF NOT COULD DELAY FUNDING!)
DELIVERY
- U.S BANK HFA DIVISION
- IHDA
HOMEOWNERSHIP NEW POLICIES- EFFECTIVE MARCH 1, 2015
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ALL FILES SUBJECT TO THIRD PARTY QC AUDIT
– WHAT DOES THAT MEAN?
– HOW LONG IS THE PROCESS?
ELECTRONIC SIGNATURES ALLOWED STARTING 3/1/2015
– MUST SIGN UP TO DO SO
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LENDER LETTERHEAD AND A SAMPLE OF ELECTRONIC SIGNATURES
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BORROWER/SELLER AFFIDAVIT, RECAPTURE, INCOME CALCULATOR, INCOME CERTIFICATION
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PLEASE E-MAIL ALL REQUESTS TO [email protected] YOU WILL RECEIVE A CONFIRMATION BACK WITHIN 72
HOURS AND YOU CAN BEGIN TO PROVIDE ALL DOCUMENTS ELECTRONICALLY WITH
RECAP
NEW PROGRAMS
EFFECTIVE 3/1/2015
First time ever down payment assistance program
is available to non first time home-buyers Statewide
AVAILABLE FOR FIRST TIME AND NON-FIRST TIME HOMEBUYERS
FEATURES:
• 30-YEAR FIXED RATE LOAN (VA, FHA, USDA, FNMA(DU)
AT THIS TIME NO FREDDIE MAC (LP))
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A FLAT $5,000.00 DOWN PAYMENT AND/OR CLOSING COST ASSISTANCE AVAILABLE
• PURCHASES ONLY!
• BORROWERS ABOVE 80% AREA MEDIAN INCOME (AMI) - THE SECOND WILL BE
AMORTIZED OVER 10 YEARS WITH A ZERO PERCENT INTEREST RATE MONTHLY PAYMENT.
– $41.67 PER MONTH PAYABLE MONTHLY
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BORROWER’S BELOW 80% AREA MEDIAN INCOME (AMI)
THE SECOND WILL BE FORGIVEN OVER 10-YEARS WITH NO PAYMENTS.
QUALIFIED DWELLINGS- 1-2 UNITS (MUST BE PRIMARY RESIDENCE)
CONVENTIONAL PROGRAM:
 OPTIONAL LENDER PAID MORTGAGE INSURANCE
 NO ADVERSE MARKET FEES
 NO PRICING ADJUSTMENTS
 REDUCED PMI COVERAGE:
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18% FOR THE LTVS GREATER THAN 95% AND LESS THAN OR EQUAL TO 97%
16% FOR THE LTVS GREATER THAN 90% AND LESS THAN OR EQUAL TO 95%
12% FOR THE LTVS GREATER THAN 85% AND LESS THAN OR EQUAL TO 90%
6% FOR THE LTVS GREATER THAN 80% AND LESS THAN OR EQUAL TO 85%
DELIVERY REQUIREMENTS
• ALL IHDA CONVENTIONAL LOANS MUST BE RUN THROUGH DU AS “HFA PREFERRED“.
YOU MUST SHOW THE SUBORDINATE FINANCING, WHICH IS CONSIDERED A COMMUNITY SECOND.
@HOMEILLINOIS
LENDER PAID OPTION
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640 MINIMUM CREDIT SCORE
LENDER CHOOSES MORTGAGE INSURANCE COMPANY OFF APPROVED LIST
LENDER DELIVERS TO US BANK CERTIFICATE OF INSURANCE AND PROOF PAID
SRP PAYMENT AS FOLLOWS
-90.01% - 97% LTV, 4.0% SRP
-80.01% - 90% LTV, 3.4% SRP
*REGARDLESS OF COST OF LPMI SRP IS AS LISTED ABOVE
MUST BE RUN THROUGH DU AS “HFA PREFERRED”
NO LP (FREDDIE MAC) LOANS ALLOWED
@HOMEILLINOIS
LENDER PAID OPTION
APPROVED MORTGAGE INSURANCE COMPANIES
– ARCH
– ESSENT
– GENWORTH
– MGIC
– NATIONAL MI
– RADIAN
– UNITED GUARANTEE
@HOMEILLINOIS
STANDARD SRP AND SRP WITH LENDER PAID OPTION
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SRP PAYABLE TO PARTICIPATING LENDERS = 2.00% OF THE PRINCIPAL LOAN
AMOUNT PAID AT PURCHASE BY USBANK, PLUS INTEREST ON BOTH
CONVENTIONAL AND GOVERNMENT
FOR LENDER PAID OPTION SRP PAID AS FOLLOWS
-90.01%
- 97% LTV, 4.0% SRP
-80.01% - 90% LTV, 3.4% SRP
@HOMEILLINOIS
LENDER PAID OPTION
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For non-delegated lenders, US Bank HFA Division will
order the appropriate MI coverage selected by the
Lender. Lenders are responsible to provide proof that
the MI is paid in full when the closed loan file is
delivered to US Bank.
WHAT IS A MORTGAGE CREDIT CERTIFICATE (MCC)?
AN MCC IS A CERTIFICATE AUTHORIZED BY THE FEDERAL GOVERNMENT AND ISSUED BY IHDA.
IT ALLOWS THE BORROWER TO TAKE 20 PERCENT OF THE ANNUAL MORTGAGE INTEREST PAID, AS
A DOLLAR-FOR-DOLLAR REDUCTION TO THE ANNUAL FEDERAL INCOME TAX LIABILITIES.
THIS IS AVAILABLE TO ALL FIRST TIME FIRST TIME
HOW DOES AN MCC WORK?
BASIC ASSUMPTIONS:
ADJUSTED GROSS INCOME
$55,000
LOAN AMOUNT
$135,000
INTEREST RATE
4.00%
INTEREST PAID FIRST YEAR
$ 5,349
SMARTMOVE PROGRAM
CALCULATION OF BENEFIT:
Without MCC
With MCC
Income
$55,000
$55,000
Mortgage Interest Deduction
- $5349
- $4,280 (80%)
Taxable Income
$49,651
$50,720
$7,448
$7,608
Taxes Paid @ 15% Tax Bracket
MCC Tax Credit
Income Taxes Due
Tax Savings Due to MCC
N/A
$7,448
N/A
$1,070 (20%)
$6,532
$916
THE EXAMPLE SHOWS THAT THE 20% CREDIT WILL LOWER THE TAX LIABILITY BY $916.00
POTENTIALLY SAVING THE BORROWER $916 ÷ 12= $76.00 PER MONTH THE 1ST YEAR
OPTIONAL WITH @HOMEILLINOIS
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MORTGAGE CREDIT CERTIFICATE (MCC) A FEDERAL INCOME TAX
CREDIT FOR THE LIFE OF THE LOAN (AVAILABLE TO FOR FIRST TIME
HOME-BUYERS OR VETERANS ONLY)
– $350 FEE TO IHDA
– $150 FEE TO LENDER
LENDER PAID MORTGAGE INSURANCE (AVAILABLE ON CONVENTIONAL
PROGRAMS ONLY) TO FIRST TIME AND NON-FIRST TIME HOMEBUYERS
IHDA’S PROGRAM QUALIFICATION
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INCOME AND PROPERTY APPLICABLE LIMITS APPLY ON ALL LOANS
MINIMUM CREDIT SCORE
640 (FHA -96.5 LTV, USDA, VA-100% LTV, CONVENTIONAL – 95% LTV OR LESS),
660 ( MANUFACTURED NO CONVENTIONAL)
680 (FNMA CONVENTIONAL - DU ONLY) BETWEEN 95.01% AND 97%-LTV MUST BE
UNDERWRITTEN WITH US BANK –MRBP DIVISION $300 FEE
MAXIMUM TOTAL DEBT (BACK END) RATIO OF 45 PERCENT
BORROWER MUST CONTRIBUTE 1 PERCENT OF PURCHASE PRICE OR $1,000 FROM
BUYER’S OWN FUNDS, WHICHEVER IS GREATER
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AUTHORIZATION AND RELEASE REQUIRED
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HOMEOWNERSHIP COUNSELING REQUIRED THIS IS REQUIRED FOR ALL BUYERS
@HOMEILLINOIS ELIGIBILITY REQUIREMENTS
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AVAILABLE FOR FIRST TIME AND NON-FIRST TIME HOMEBUYERS WITHIN IHDA’S APPLICABLE
INCOME AND PURCHASE PRICE LIMITS
MUST PURCHASE A 1-2 UNIT SINGLE FAMILY PROPERTY WITHIN THE STATE OF ILLINOIS
BORROWER MUST OCCUPY PROPERTY AS PRIMARY RESIDENCE ( NO NON-OCCUPANT COBORROWER ALLOWED!)
@HOMEILLINOIS RECAP
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MORTGAGE CREDIT CERTIFICATE (MCC) A FEDERAL INCOME TAX CREDIT FOR THE LIFE OF THE
LOAN (AVAILABLE TO FOR FIRST TIME HOME-BUYERS OR VETERANS ONLY)
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LENDER PAID MORTGAGE INSURANCE (AVAILABLE ON CONVENTIONAL PROGRAMS ONLY)
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VERY COMPETITIVE RATES
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30 YEAR FIXED RATE TERMS
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ON CONVENTIONAL LOAN DU ONLY NO LP (FREDDIE MAC LOANS NOT ALLOWED AT THIS
TIME)
@HOMEILLINOIS - MATRIX
Homeownership Programs Matrix Illinois Housing Development Authority
Purpose
March 2015
First time home buyers
Refinance
NON-first time home buyers
Purchase - 1st time homebuyer
Refinance of 1st lien only (no FHA to FHA refinance)
Purchase - non- first time home buyers
Lien Position
1
1
1
Term
30 year fixed
30 year fixed
30 year fixed
Mandatory buyer investment
Greater of 1% or $1,000
N/A
Greater of 1% or $1,000
MIN credit score (*1) FHA-VA/USDA/Conv
640
640
640
Max DTI
45.00%
45.00%
45.00%
Loan type
FHA / VA / USDA / Conventional
FHA / VA / Conventional
FHA / VA / USDA / Conventional
Max LTV- FHA, VA, USDA, Conventional (*5)
96.5/100/100/97
97.75(*3)/90/95
96.5/100/100/97
Eligible Borrower
1st time homebuyer or exempt (*2)
Current owner occupant
Non-first time homebuyers
Max origination fees (*4)
.5% + $1200 (must be reasonable and customary)
3% maximum
.5% + $1200 (must be reasonable and customary)
Funds allowed to leave table
Not to exceed seller tax credit less escrow
No cash out/as per regs
Not to exceed seller tax credit less escrow
Fees to IHDA
MCC fee of $350.00 (see options)
None
None
Property type (*6)
Single Family, 2 unit, condo, Townhouse
Single Family, 2 unit, condo, Townhouse
Single Family, 2 unit, condo, Townhouse
Recapture
Yes (If MCC, recapture applies to MCC not 1st)
No
No
Pre-purchase Counseling
Required
Not required
Required
OPTIONS
1. Lender Paid MI 2. DPA optional 3. MCC optional (see rate sheet for price)
None
1. Lender paid MI 2. DPA optional (see rate sheet for price)
$5,000 DPA amortized over 10 year term
N/A
$5,000 DPA amortized over a 10 year term
DPA repayment (*7)
FIRST TIME HOME BUYER COUNSELING REQUIRED FOR ALL PROGRAMS (EXCEPT @Home Refi) ~~~~~~~~~ BORROWERS USING CONVENTIONAL (HFA) FINANCING CANNOT OWN OTHER REAL ESTATE AT CLOSE
(*1) IHDA minimum = 640 (DU approve eligible); Conventional HFA preferred > 95.01% requires 680 FICO (DU approve eligible)
(*2) Exempt from first time homebuyer status are veterans and those buying in a targeted area see IHDA.org for a list of targeted properties.
(*3) Subject to calculations per FHA/HUD regulations
(*5) Agency regulations apply for all; purpose of DPA is Down Payment
(*4) Fees are subject to CFPB limitation - No HIGH COST mortgages permitted (follow US Bank HFA division requirements re: HPML)
(*6) Conventional > 95.01% LTV: US Bank MRBP must underwrite; no manual u/w; single family (1 unit) only (no condos, no 2 units) No manual U/W.
(*7) For borrowers with income below 80% of the Area Median Income ONLY - $5,000 DPA 2nd is non-amortizing
@HOMEILLINOIS
NEW WEBSITE
WWW.ATHOMEILLINOIS.GOV
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LOAN OFFICERS LISTED WITH CONTACT INFORMATION AS PROVIDED BY LENDERS
ONLY LOAN OFFICERS THAT CLOSED A LOAN LAST YEAR ARE LISTED
SEND A EMAIL TO REQUEST TO [email protected] TO BE ADDED
QUESTIONS?
Resources
IHDA Support Line:
877-456-2656
IHDA Website :
www.athomeillinois.gov
IHDA Compliance Officers:
Linda Benson - Supervisor
312-836-5249
Allison Crane
312-836-8561
Lee Gattuso
312-836-5324
John Maskim
312-836-5237
Diana Esparza-Navarrete
312-836-5371
IHDA Account Managers:
Greg Faulkner
312-914-5023
[email protected]
Scott Bush
312-898-3317
[email protected]
Your public finance partner
www.ihda.org