emasshousing com Mass Housing Lender Extranet Lenders Guide

emasshousing. com Mass. Housing Lender Extranet Lender’s Guide to System Changes January 2007 Page 1

Table of Contents Item Page Introduction 4 New Product: Mass. Housing-My. Community 5 - 11 o LTV and Loan Amount Limits & Pre-qualifications and Pre-Approvals 6 o New automated underwriting rules 7 o New compliance income analysis / when adding MI or Loan Detail 8 o New compliance income analysis / When funding is requested 9 o Compliance fails: compliance income is less than the borrower income. 10 o Compliance fails: compliance income exceeds the income limits 11 New Pre-Approval Options 12 - 13 o New Products, options and required fields 13 Add Loan Detail 14 - 19 o Additional required data collection: Add Loan Detail 15 o Borrower Tab: Employment Information, FICO Scores, Credit Repository 16 o Completed Borrower Tab 17 o Loan Detail Tab: Pre-approval info, Appraised value, Liabilities, Present Housing, Asset data, Property housing expense 18 o Completed Loan Detail Tab 19 Page 2

Table of Contents Item Page New Data Fields 20 - 35 o Loan Tab : Third Party Origination and Secondary Financing Information 21 - 22 o Completed Loan Tab (Mass. Advantage) 23 o Property Tab: New construction and Deed restriction 24 - 25 o Completed Property Tab (Mass. Advantage) 26 o Borrower Tab: Date of Birth 27 o Borrower Tab -MI only product: Date of Birth and Credit Repository 28 o Completed Borrower Tab (Mass. Advantage) 29 o MI Underwriting Tab: Multi-family rental income data, Monthly Flood Insurance 30 - 31 o MI Underwriting Tab – MI only products: Is the property in a Flood Zone, Monthly Flood Insurance 32 o Completed MI Underwriting Tab (Mass. Advantage) 33 o Fund Tab: Year Built, Is the property in a Flood Zone 34 o Completed Fund Tab (Mass. Advantage) 35 Page 3

Introduction In February 2007 we will be releasing several changes to the emasshousing. com site. When you log into emasshousing. com after this release your user experience will change in many ways. As you enter new loans, modify loans or request funding there will be additional data you will need to provide. This document is being provided to alert you of these upcoming changes. The changes include: • We are retiring the three current My. Community products and replacing it with one My. Community mortgage product. This new product, called Mass. Housing-My. Community will incorporate all of the features of the My. Community 100 Plus, My. Community 3 & 4 and My. Community < 97. Mass. Housing -My. Community will only be available for new My. Community reservations. Any current approved My. Community reservations in your pipeline cannot be ‘switched’ into this product. • We are adding automated underwriting rules and compliance income analysis rules to the new My. Community product and the Standard Fixed product. • We will be changing the products and loan terms currently offered for pre-approvals. The Mass. Advantage First Step (and First Step Low) products and the ability to select a 40 year term (offered on Mass. Advantage and Mass. Advantage Low) will be available for pre-approval. The My. Community product will no longer be available for pre-approval; DU/DO automated underwriting will serve as the pre-approval resource for all My Community loans. • We are requiring the collection of additional loan data for all first mortgages that do not require Mortgage Insurance. After a reservation is approved, your next action step will be to “Add Loan Detail”. This action will require you to enter additional borrower/housing/asset and liability data before you can request funding. • Lastly, we have added several additional data fields to the current system. Each of these changes are explained in the pages that follow. Page 4

New Product Mass. Housing-My. Community Page 5

New Product: Mass. Housing-My. Community The following provides LTV and Loan Amount Limits for this product: Property Type Maximum Loan to Value Single, Condo, PUD 2 Family 3 Family 4 Family 100% 97% 95% Minimum Loan to Value Maximum Loan Amount N/A $417, 000 $533, 850 Minimum Loan Amount $645, 300 $801, 950 $25, 000 Pre-qualifications and Pre-Approvals: All new Fannie. Mae pre-qualification leads will be issued as Mass. Housing-My. Community (pre-qualifications will no longer be issued for My. Community 100 Plus). All of your current My. Community 100 Plus prequalifications will be ‘switched’ to the Mass. Housing-My. Community product. Mass. Housing will no longer allow Pre-Approvals for any Fannie. Mae initiative product, DU/DO automated underwriting will serve as the pre-approval resource for all My Community loans. Prior to this release, all My. Community 100 Plus loans in your pre-approval pipeline will need to be withdrawn. Page 6

New Product: Mass. Housing-My. Community New automated underwriting rules: When a Mass. Housing-My Community or Standard Fixed reservation is submitted for Mortgage Insurance (MI), new automated Underwriting rules will be run. There are two loan profiles that will result in a request for MI being referred: • gross debt ratios >= 60% • the underwriting borrower has a FICO score < = 620 (this includes no credit score). If your request for MI is referred, a message will provide the reason for referral. You may submit to the Mortgage Insurance Fund (MIF) a full credit file for review. Once MIF has reviewed the additional documentation, they can update the MI status to: • Approved you can now request funding. • Approved with Conditions you will be required to submit additional documentation for MIF to review. Until MIF approves these conditions and approves MI, you will not be allowed to request funding. • Manually Denied your request for MI is denied, you will not be allowed to request funding. Page 7

New Product: Mass. Housing-My. Community 1 1 New compliance income analysis: Mass. Housing. My. Community AND Standard Fixed products. When either MI is added or Loan Detail is added a compliance rule will run to ensure that the borrower income entered on the Borrower tab does not exceed the compliance income that was entered on the Loan tab. You will be given a compliance failure message (see # 1) and not be able to proceed with your data entry until this is corrected. 2 2 To correct this, you can either modify the Monthly Employment or Monthly Other Income on the Borrower(s) tab or modify the Borrower Annual Income (Compliance) on the Loan tab. 2 Page 8

New Product: Mass. Housing-My. Community New compliance income analysis: Mass. Housing-My. Community AND Standard Fixed 1 products. 1 2 When funding is requested you will be asked to certify that the borrower compliance income is accurate. If you change the compliance income on this page, upon ‘Submit’ a compliance income analysis rule will run to ensure that the revised annual compliance income: • does not exceed the income limits (for the product and the property location). • is not less than the borrower income. 2 If your changes are such that compliance is passed you will be brought to the Fund tab where you can finish your funding request process. If compliance fails, depending upon why you fail compliance, what you will encounter is outlined on the next two pages. Page 9

New Product: Mass. Housing-My. Community 1 1 Compliance fails: compliance income is less than the borrower income. 3 3 2 2 Your options are to: Cancel: get out of this flow to research the income issue. Select the option “Click here to change the income on the Borrower tab”. You are brought to the Borrower tab where you must follow these three steps: • Change the income to equal the compliance income that you just changed. 3 • Click Next to get to the MI Underwriting tab (or Loan Detail tab) • Click Next again and you are brought to the Fund tab where you can finish your funding request process. Page 10

New Product: Mass. Housing-My. Community 1 Compliance fails: compliance income exceeds the income limits You are out of the funding flow. 2 1 You are brought to a page where you have options: Discard Changes , Submit Change Request, Withdraw Application or Change products (if you qualify for other products, these will be listed). If you do not want to proceed at this time, click ‘Discard Changes’. You are brought back to the Loan tab. Click ‘Cancel’ at the bottom of the Loan Tab page. 2 If you want to send an email to Mass. Housing, click ‘Submit Change Request’. A new page will open that will allow you to send an email. If you want to withdraw the application click ‘Withdraw Application’. Note: this is not a way to modify the loan-withdraw means this application will be permanently removed from your pipeline. If you want to select a new product, click the ‘product name’ link. You are brought back into the loan tabs, where you must view all loan tab pages. From the MI Underwriting page or the Loan Detail page you can click ‘Submit Modifications’. Page 11

Pre-Approvals Page 12

New Pre-Approval Options 1 2 3 For pre-approvals you will now be able to select the Mass. Advantage First Step or Mass. Advantage First Step Low products. Previously, these products were not available for pre-approval. 1 For pre-approvals you will now be required to select a term. If the Mass. Housing product you selected has multiple loan terms available you will see all available terms in this new dropdown box. In this example a Mass. Advantage Low was selected. This product offers terms of 480 and 360 which are available for you to select. 2 For pre-approvals you will now be required to select an amortization type. If the Mass. Housing product you selected has multiple amortization types available you will see all available types in this new dropdown box. In this example a Mass. Advantage Low was selected. This product only offers a fixed amortization type which is available for you to select. Page 13 3

Add Loan Detail Page 14

Additional required data collection: Add Loan Detail Mass. Advantage and FNMA Products For any approved reservation with an LTV < = 80. 00% you will now be required to complete an additional data collection step before you will be allowed to request funding. After your reservation is approved, your next action will be to Add Loan Detail. Previously your next action would have been Fund. This process requires you to enter additional borrower and housing/asset/liability data on two loan tabs. This process is similar to adding Mortgage Insurance. If your approved reservation requires Mortgage Insurance your next action will still be “ADD MI”. Page 15

Borrower Tab / / Add Loan Detail 1 2 3 For each borrower you will now be required to enter employment information; employer name, employment position, monthly income, is the borrower self employed. Based on the monthly income entered, the ‘Combined Gross Annual Income’ and the ‘Total Monthly Income’ fields will calculate on this page. You will now be required to enter a FICO score for each borrower. Previously this was a field on the Fund tab. You will now be required to provide the credit repository that is associated with the FICO score entered. This new dropdown box will contain the following selections: • Equifax • Experian 1 2 3 • Trans Union • Credco Anthem • A valid Credit Score is not available Page 16

Completed Borrower Tab Add Loan Detail (Mass. Advantage) Page 17

Loan Detail Tab // Add Loan Detail 1 You will now be required to enter the appraised value. 1 2 3 4 5 You will now be required to enter total monthly liabilities. You will now be required to enter the borrower(s) present housing expense. 4 5 You will now be required to enter asset data. You will now be required to enter housing expense data. Page 18

Completed Loan Detail Tab // Add Loan Detail (Mass. Advantage) Page 19

New Data Fields Page 20

1 New Data Fields // Loan Tab New reservation-Mass. Advantage and FNMA products For the Mass. Advantage and FNMA products, you will now be required to provide information on Third Party originations. This new dropdown box will contain the selection –Not a Third Party originator as well as a list of all approved TPO’s for your Institution. If you do not see a Third Party originator in the dropdown, please contact us via email at: e-business@masshousing. com 2 If there is any Secondary Financing on the loan you will now be required to provide this information. Previously this information was only needed when the LTV was 80% or below. If you indicate yes to Secondary Financing, you will be required to enter all secondary data. The secondary interest rate cannot exceed 2. 000% over the reservations interest rate. 1 2 Page 21

New Data Fields // Loan Tab New MI requests-MI only products 1 For the MI only products, you will now be required to provide information on Third Party originations. This new dropdown box will contain the selection –Not a Third Party originator as well as a list of all approved TPO’s for your Institution. If you do not see a Third Party originator in the dropdown, please contact us via email at: e-business@masshousing. com 2 If there is any Secondary Financing on the loan you will now be required to provide this information. Previously these fields were not on the Loan tab for the MIF only products. 1 2 Page 22

Completed Loan Tab (Mass. Advantage) Page 23

New Data Fields // Property Tab New reservation –Mass. Advantage and FNMA products 1 2 For all first mortgage products, you will now be required to select if the property is new construction. Previously this field defaulted to “No” being selected. 1 2 For Mass. Advantage and FNMA products you will now be required to provide information on deed restrictions. This new dropdown box will contain the following selections: • No Deed Restriction • Deed Rider Survives Foreclosure • Deed Rider Terminates Foreclosure • FNMA Deed Rider Survives Foreclosure Page 24

New Data Fields // Property Tab New MI requests – MI only products 1 For all first mortgage products, you will now be required to select if the property is new construction. Previously this field defaulted to “No” being selected. 1 Page 25

Completed Property Tab (Mass. Advantage) Page 26

1 New Data Fields // Borrower Tab New reservation-Mass. Advantage and FNMA products For all Mass. Advantage and FNMA products you will now be required to provide a date of birth for each borrower. This new field will require you to enter the date of birth is this format: mm/dd/yyyy. Previously you were required to enter each borrower’s age on this page. Now, each borrower’s age will calculate using the date of birth and the estimated closing date entered on the loan tab. 1 At time of funding, the age will recalculate based on each borrower’s date of birth and the closing date entered on the Fund tab. If the loan is a MI only product, at the time MI is activated each borrower’s age will also recalculate using the closing date. Mass. Housing does not allow any borrower to be under the age of 18 as of the closing date. The funding request or MI activation request will fail compliance should this occur. Page 27

New Data Fields // Borrower Tab New MI requests -MI only product 1 2 For the MI only products you will also be required to provide a date of birth for each borrower. Please see page 25 for the full description of this field. For all MI Only products you will now be required to provide the credit repository. This new dropdown box will contain the following selections: 1 • Equifax • Experian • Trans Union • Credco Anthem • A valid Credit Score is not available If your reservation is for a Mass. Advantage or FNMA product, you will not ‘see’ the portion of this page that contains this data until you “ADD MI” or “ADD LOAN DETAIL”. The new Add Loan Detail process was explained in pages 12 – 17. 2 Page 28

Completed Borrower Tab (Mass. Advantage) Page 29

New Data Fields // MI Underwriting Tab Add MI to a Mass. Advantage or FNMA products Pg. 1 of 2 1 For all 1 st mortgage multi-family properties, you will now be required to enter additional data for each unit in the property. Previously all that was required was to enter rental income data in the field called Monthly Rental Income Subject Property. This new data collection grid will require that you enter the following data: Owner Occupied Unit: Number of Bedrooms. 1 Acceptable values for # of bedrooms are whole numbers between 1 and 6. The number 0 cannot be entered. Each Rental Unit: Number of Bedrooms, Gross Monthly Rental Income and a button to indicate if the rental income is Current or Estimated. Acceptable values for Gross Monthly Rental Income are whole numbers between $0 and $5000. The Total Gross Monthly Rental Income will be calculated (the sum of all gross monthly rent entered in the rental data grid). The Monthly Rental Income Subject Property will be calculated. The calculation will sum 75% of current gross rental income plus 50% of estimated gross rental income. The total Monthly Rental Income Subject Property is used to calculate the Net Housing to Income and Net Housing & Debt to Income ratios. Page 30

New Data Fields // MI Underwriting Tab Add MI to a Mass. Advantage or FNMA products Pg. 2 of 2 a b 2 For Mass. Advantage or FNMA reservations that have secondary financing (data that was entered on the loan tab), the Secondary Mortgage amount entered on the loan tab will be displayed on this tab (view only) as ‘Other Financing’. Also, for reservations that have secondary financing, the Secondary Financing P&I payment entered on the loan tab will display (view only) as ‘Other P & I’. For all 1 st mortgage products, you will now be allowed to enter the monthly flood insurance premium (for properties in a flood zone that require flood insurance). This new data entry field will be enabled but not required for Mass. Advantage and FNMA loans. For MI only products see next page. a b 2 Page 31

New Data Fields // MI Underwriting Tab New MI requests – MI only products 3 3 For MI only products, you will now be required to indicate if the property is in a flood zone. If you select ‘Yes’ you will be required to enter the Monthly Flood Insurance payment (see #2). For Mass. Advantage and FNMA loans, this field will be located on the Fund tab. 2 For MI only products if you select “Yes” to the flood zone question (see # 3) you will be required to enter the Monthly Flood Insurance amount. If you select “No” to the flood questions, the Monthly Flood Insurance field will be disabled. 2 Page 32

Completed MI Underwriting Tab (Mass. Advantage) Page 33

New Data Fields // Fund Tab Mass. Advantage and FNMA products 1 For all Mass. Advantage and FNMA products you will now be required to provide the year built. This new data entry field will allow you to enter values from the year 1620 up to and including the current year. If the property is new construction (as indicated on the Property tab), the only allowable values for year built will be the current year or the previous year. 1 2 Previously you were required to enter the property age on this page. 2 For all Mass. Advantage and FNMA products, you will now be required to indicate if the property is in a flood zone. This new field will require you select either no or yes. Page 34

Completed Fund Tab (Mass. Advantage) Page 35