Louisiana Housing Corporation Delta 100 Program Lenders Training

Louisiana Housing Corporation Delta 100 Program Lenders Training

Lender Training Agenda • Welcome & Introductions • Delta 100 Program Overview • Step by Step Reservation Guide & Document Introduction • Questions 2

Overview • • • Conventional loan product only 30 year fixed rate Owner Occupied Up to 100% LTV Income Limits – 80% AMI by parish and household size No Mortgage Insurance required 1 st Mortgage only 1 st Time Homebuyer only Homebuyer Education required 1 Unit property (single family detached, condo, townhome, modular and manufactured – double wide, permanently attached 3

Overview • • • Borrower Minimum Requirement – 1% of purchase price or $1500 whichever is less (contributed toward down payment, closing cost, or prepaid items) Reserves – 2 months PITI – cannot be a gift Closing Cost Assistance – Up to 3% of the loan amount toward closing cost and prepaid items. Assistance is a grant. Seller Concessions – Up to 4% Program Fee – Seller required to pay 2% fee – retained by lender Debt Ratios – – PITI range 28% -31% – DTI range 39% - 41% Homebuyer Education – 8 -12 hours required from HUD approved Housing Counseling Agency or on-line through e. Home America The Delta 100 Program is not a “No Doc” or “Low Doc Program”. Documentation supporting income, assets and credit are required. • 4

Program Benefits • Up to 100% Financing, dependent upon credit score • Borrowers denied through conventional methods, may be considered eligible for participation • No Minimum Credit Score • Low interest rate of 2% • 3% toward closing cost and prepaid items (grant) • Non traditional credit allowed • Medical collections ignored 5

Homebuyer Education The agencies below provide Homebuyer Education Classes: CENLA Community Action Committee, Inc. 4008 Parliament Dr. Alexandria, LA 71303 Phone: 318 -487 -5680 Joan Lee Email: msjoanlee@yahoo. com Rapides Station Community Ministries, Inc. 1429 Third St. Alexandria, LA 71301 Phone: 318 -487 -9254 Linda Venson Email: rscm 1429 thirdst@yahoo. com Website: www. rscm-chdo. net Multicultural Development Center (Northeast LA) 935 Eatman St. Bossier City, LA 71111 Phone: 318 -741 -5941 Yvonne Bartley Email: ybartley@m-cdc. org Website: www. m-cdc. org e. Home. America Online Course https: //www. ehomeamerica. org/ 6

Eligible Parishes Parish Caldwell Catahoula Concordia East Carroll Franklin Madison Morehouse Pointe Coupee Richland Tensas West Carroll Ouachita (excluding Monroe) 7

Period of Affordability • Less than $15, 000 – 5 years • $15, 000 - $40, 000 – 10 Years • Greater than $40, 000 - 15 Years 8

Rate/Reservations • Interest Rate – 2% Fixed • Reservation can be made daily • Step by step instructions for reservations can be found in the LHC Program Reservation Guide. • Once the reservation is completed, print the Loan Confirmation – Exhibit A. • Once a reservation is made, the rate lock will remain with the borrower throughout the lock period. 9

Extension Form • If the lender determines a loan cannot meet the 70 day deadline, lenders may request a one-time 30 day extension for the cost of $375 by completing the Delta 100 Program 30 Day Extension Form (Exhibit D). • Submit the completed Delta 100 Program 30 Day Extension Form – Exhibit D to the following: singlefamily@lhc. la. gov. • The $375 fee will be collected at the time the closed loan file is submitted for approval to LHC. • If an extension is elected but the mortgage is not purchased, the Lender will be billed by LHC for the extension fee of $375. 10

Deadline Requirements • Compliance Loan Package must be submitted within 30 days of reservation. • Closed loan files must be delivered to LHC within 65 days of reservation. • Loans must be purchased within 70 days of the reservation date. • Submitting an extension request at any stage will extend the deadline date an additional 30 days. • Submit the extension request prior to the deadline ensuring the loan is not terminated in the system. 11

Compliance File & Closing File Checklists • Exhibit GI provides the list of required documentation when submitting the Compliance File to LHC for approval. • Exhibit G 2 provides the list of required documentation when submitting the Closed loan package to LHC for approval. LHC will review the submitted documentation for completeness and accuracy within 34 -36 business hours. If documentation is omitted, LHC will issue a list of outstanding conditions and all conditions must be cleared prior to approval. 12

Requisition Form – Exhibit E The lender must email the Requisition Form /Wiring Instructions, Exhibit E and Complete Preliminary Closing Disclosure to singlefamily@lhc. la. gov and mrbaccounting@lhc. la. gov no later than 24 hours prior to the scheduled loan closing date with cut off being 2: 00 pm. The lender will fund the 1 st mortgage loan amount at closing and LHC will provide the Closing Cost Assistance at the closing table. The Closing Cost Assistance should be labeled “LHC Closing Cost Assistance” on the complete preliminary and final Closing Disclosure. 13

Loan Purchase Loans will be serviced by Ameri. Nat, LHC’s sub-servicer. Once closed loans are approved for purchase, they will be transitioned over immediately for servicing. LHC will reimburse the lender the full loan amount deducting any outstanding fees. 14

Program Fees Required at Submission Fees Netted at Purchase Additional Fees Compliance Fee - $75 Tax Service Fee - $85 Program Fee – 2% of Loan Amount (paid by seller/retained by lender HQS Inspection - $150 Flood Certification Fee $14. 50 Wire Fee - $40 Extension Fee (if applicable, $375 15

Program Documents The following Delta 100 Program documents are provided under “Information for Lenders” on the LHC website at http: //www. lhc. la. gov/page/-lenders : Exhibit A – Confirmation Report Exhibit G 2 - Closing Checklist Exhibit B – Reservation Document Exhibit H 1 – Homeownership Summary Agreement Exhibit C 1 – Commitment Exhibit I – Income Limits Exhibit C 2 – Notice of Denial Exhibit J – Acquisition Limits Exhibit D – Closing Certification Exhibit K – Underwriter Certification Form Exhibit E – Requisition Form Exhibit L – Seller Affidavit Exhibit f – Closing Certification Exhibit M – Borrower Affidavit Exhibit G 1 – Compliance Checklist Document Summary 16

Mortgage Origination Agreement • Prior to participation in the program, all approved lenders must execute and notarize the Mortgage Origination Agreement. • If the lender has not completed and returned the MOA, we will email to lenders after this training session. 17

Questions? 18