6/29/2018

Michigan State Housing Development Authority

Topics Covered in this Training

1. MI First Home & MI Next Home Programs2. Down Payment Assistance3. MI First Home Program Highlights4. MI Next Home Program Highlights5. First Home Borrower Requirements6. MI Next Home Borrower Requirements7. MSHDA Housing Allowable Fee Chart8. MI First Home First Mortgage Interest Rates

MI Next Home First Mortgage Interest Rates9. MI Next Home & MI Next Home Property Types10. Key Program Differences11. Appraisal Requirements12. First Lien AUS Requirements13. MI First Home & MI Next Home Requirements14. Completing the 1003 in FT36015. Exporting Fannie Mae File for MSHDA Lender Website16. MSHDA (Lender Website)17. MSHDA Disclosures18. Closing Document Packages19. MSHDA Process Flow20. Loan Cancellation21. RealtorⓇor Lender Advantages

Michigan State Housing Development Authority

MI First Home & MI Next Home Programs:

• FHA 30 year first mortgage

1. Fixed interest

2. Fully amortizing

• Available for Retail Channel Only

• Loans are referred to AFS division and Fulfilled by Plantation Florida

• Release Date is March 31th 2017

Michigan State Housing Development Authority

Down Payment Assistance:

• Up to $7,5001. No Interest

2. No Monthly Payments

• Funds may be applied towards down payment and/or closing costs

• 1% minimum borrower contribution

• $7,500 liquid cash asset restriction—all accounts documented in order to obtain DPA

• Available for Retail Channel Only

• Loans are referred to AFS division and fulfilled by Plantation Florida

• Release Date is March 31st 2017

Michigan State Housing Development Authority

MI First Home Program Highlights

Available in the state of Michigan (MI)

Available in targeted areas for all borrowers and all areas for first time borrowers

Purchase Price limits - $224,500

30 year fixed, Credit score 640

Purchase, Primary Residence

Single Family Residences, PUD and Warrantable Condos

Michigan State Housing Development Authority

MI Next Home Program Highlights

Available in the state of Michigan (MI)

Repeat homebuyers only

Purchase Price limits - $224,500

30 year fixed, Credit score 660

Purchase, Primary Residence

Single Family Residences, PUD and Warrantable Condos

Michigan State Housing Development Authority

First Home Borrower Requirements

First time homebuyers

All adults intending to occupy the residence must co-apply and credit qualify

Adult children must apply

No homeownership restriction for borrowers purchasing in a Targeted Area

Purchase, Primary Residence

All borrowers must occupy the property as their primary residence within 60 days of closing

Michigan State Housing Development Authority

First Home Borrower Requirements

Michigan State Housing Development Authority

Non-occupying co-borrowers are not allowed

Non-occupying co-signers are not allowed

The income limits may be found on MSHDA website: http://www.michigan.gov/documents/mshda_sf_income

_and_sales_price_limits_100946_7.pdf

Homebuyer education required from all adults

MI Next Home Borrower Requirements

Previous homebuyers

All adults in the household DO NOT need to apply. Only qualifying borrowers

No homeownership restriction

All borrowers must occupy the property as their primary residence within 60 days of closing

Borrower may own another property at close of escrow.

Michigan State Housing Development Authority

MI Next Home Borrower Requirements

Non-occupying co-borrowers are not allowed

Non-occupying co-signers are not allowed

The income limits may be found on MSHDA website: http://www.michigan.gov/documents/mshda/MSHDA_Income__S

ales_Price_limits_EXPANDED_04-16_523586_7.pdf

Homebuyer education required

Michigan State Housing Development Authority

MSHDA Housing Allowable Fee Chart:

MSHDA Housing Product Name Allowable FeesMI First HomeMI Next Home Program Fees

1.000% Origination FeeStandard PRMG Underwriting feeNo Processing FeeNon-Allowable Borrower fees:

• Application fee, lock in fee, lender processing fee, real estate commission, servicing fee, and tax service fee

• No discount points, rate lock fees or “junk” fees allowed to be charged

Allowable Standard Fees Normally Charged to the borrower:• Appraisal Fee, Credit Report Fee, Flood Certification,

Freight, Document Preparation are allowed as long as it is an actual cost

Michigan State Housing Development Authority

MI First Home First Mortgage Interest Rates:

• MSHDA posts the First Mortgage interest rates daily on their website

• PRMG must first obtain a MSHDA reservation number prior to quoting and committing an interest rate to the borrower

• Reserved interest rates are valid for 90 calendar days

• Purchase Agreement and Sales Contract required prior to reserving funds on MSHDA Lender Online Website.

• After you obtain a MSHDA reservation, you must submit a complete credit package within the 90-day expiration date to MSHDA for compliance review

Michigan State Housing Development Authority

MI Next Home First Mortgage Interest Rates:

• MSHDA posts the First Mortgage interest rates daily on their website.

• PRMG must first obtain a MSHDA reservation number prior to quoting and committing an interest rate to the borrower.

• Purchase Agreement and Sales Contract required prior to reserving funds on MSHDA Lender Online Website.

• Rate lock/Reservation is good for 70 days. Closed, delivered and purchased by U.S. Bank within 70 days of reservation.

• Extension fee is $375 for a maximum of 30 days.

Michigan State Housing Development Authority

MI Next Home & MI Next Home Property Types:

• Single Family Residence

• 1 Unit

• HUD Approved Condos

• PUDs Attached and Detached

• Must be residential units

Michigan State Housing Development Authority

Key Program Differences:

Michigan State Housing Development Authority

Item First Home Program Next Home Program

Master Servicer MSHDA U.S. Bank

Sub-servicer LoanCare, LLC N/A

Min Credit Score 640 660

Eligible Borrower First time Previous homebuyers only

Geographic State of Michigan: Non-targetedareas & Targeted areas

State of Michigan

Recapture Tax Required N/A

Document Delivery LoanCare, LLC U.S. Bank

Rate Lock 90 Days 90 Days

Extension N/A $375 for a maximum of 30 days

Appraisal Requirements:

• One full appraisal is required

Michigan State Housing Development Authority

First Lien AUS Requirements:

• Desktop Underwriter (DU) only allowed

• Approve/Eligible required

• The Agency AUS for the first lien must be included in the file

• Manual Underwriting is not allowed

• Loan Product Advisor (LPA) not allowed

Michigan State Housing Development Authority

MI First Home & MI Next Home Requirements:

• No Mortgage Credit Certificates allowed

• No additional down payment

Michigan State Housing Development Authority

Completing the 1003 in FT360

Loan Program Selection & Closing Cost Templates:

• Forms -> Borrower Summary locate the transaction details section

1. In the Transaction Details section of the Borrower Summary (PRMG) form, click on the magnifying glass icon to the right of the Loan Program field

2. Select the applicable Loan Program template, based on the loan you are creating

3. Click the Select button

Michigan State Housing Development Authority

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Loan Program Selection & Closing Cost Templates:

1. After the applicable Loan Program has been selected, click on the magnifying glass icon to the right of the Closing Cost template

2. Select the applicable Closing Cost template, based on the loan you are creating

3. Click the Select Button

Michigan State Housing Development Authority

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Loan Program Selection & Closing Cost Templates:

1. The completed Transaction Details section for the MSHDA 1st TD will look like this:

2. The completed Transaction Details section for the MSHDA 2nd TD will look like this

Michigan State Housing Development Authority

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Entering Subordinate Financing on the 1st TD:

1. In Forms Click Borrower Summary (PRMG)

2. Click the Sub. Financing Button

3. Enter your 2nd Mortgage amount in the second mortgage field

4. Click OK

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Michigan State Housing Development Authority

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Lien Position and Down Payment:

• Forms -> Borrower Summary

1. Verify the lien position is correct for both the 1st and 2nd liens

2. Down Payment is the down payment in addition to the subordinate financing being utilized to complete the purchase

3. Verify the Subordinate Financing appears in VII details of Transaction on the 1st TD Loan

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1003 Page 3 (VIII. Declarations):

• When completing the declarations section of the 1003 locate question H

1. Question H: Mark Y (Yes) for is any part of the down payment borrowed for borrower and co-borrower

Michigan State Housing Development Authority

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Duplicating the 1st TD Loan to Create the 2nd TD Loan:

• Creating a Junior Lien in FT360 feature can be found in PRMG Resource Center by clicking on the following link;

• http://www.eprmg.net/ResourceCenter/TrainingInstructionalMaterial/CreatingaJuniorLieninFT360.pdf

Michigan State Housing Development Authority

Verify Lien Position and Down Payment:

• On the newly duplicated loan verify the Lien Position and Down payment information is correct

• Forms -> Borrower Summary

1. Verify Loan Type is Correct

2. Verify the lien position is correct the second loan

3. Amortization type mark the Other Checkbox and type deferred payment

4. There is no interest rate charged in connection with MSHDA DPA loan enter zeros in both the Note Rate and Qual Rate fields

Michigan State Housing Development Authority

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Exporting Fannie Mae File for MSHDA Lender Website

Exporting a Fannie Mae formatted file:

1. Click on Services and Select Lenders from the drop down menu

2. Select Export file to other partners

3. Click Continue

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Michigan State Housing Development Authority

Exporting a Fannie Mae formatted file:

1. Set the Request Type drop down to: Export Fannie Mae formatted file

2. Browse the desired Export to Path

3. If you would like to create a shortcut for next time for export purpose: Send to Correspondent lender

4. Enter a description and mark the checkbox Save purpose and description

5. Click Continue

Michigan State Housing Development Authority

Exporting a Fannie Mae formatted file:

• If your loan application is Incomplete you will be prompted to complete the loan application

• If you wish to complete the loan application prior to exporting the Fannie Mae File click cancel

1. Click Continue to complete the Fannie Mae export process

2. The Export File popup window will appear notifying you the file export process has been completed.

3. Click OK

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Michigan State Housing Development Authority

MSHDA (Lender Website)Please Note: Prior to originating any MSHDA loans it is important to review and complete the online training material available through MSHDA Lender Online Portal. Information on how to access these trainings is available following this page.

MSHDA Lender Website:

• Please go to the following url: https://mshdalenderaccess.cgi-

bps.com/Bin/Display.exe/ShowSection

• To receive access credentials please contact support@prmg.net in the subject line please state Michigan State Housing Development Authority

1. Please enter your Username

2. Please enter your Password

3. Click Login button

Michigan State Housing Development Authority

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MSHDA Lender Website:

• Once you have successfully logged in to the MSHDA Lender website you will be able to access:

1. Lender Letters & Announcements

2. Marketing Materials & Resources

3. Information & Contacts

4. Training Presentations

5. Watch the MI First Home Underwriting Podcast

Note: Underwriting Turn-around times are located at the top of the screen underneath the daily interest rates

Michigan State Housing Development Authority

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MSHDA Training Video & PowerPoint Library:

• The MSHDA training video library can be located in the following locations:

1. https://mshdalenderaccess.cgi-bps.com/Bin/Display.exe/ShowSection

2. http://www.michigan.gov/mshda/0,4641,7-141-59976---,00.html#trainings

1. If accessing from within Lender Online locate the Bulletin Board Link on the top of the page

2. Locate Training and Presentations

3. Click the desired training presentation

Michigan State Housing Development Authority

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Please Note: Prior to originating any MSHDA loans it is important to review and complete the online training material available through MSHDA Lender online portal.

MSHDA New Reservation:

• Locate the New Reservation tab in the top navigation tab

1. Click the New Reservation Tab

2. Locate the Single Family Series

3. Click the [+] to expand

4. Click to Select the Desired Loan Program

Michigan State Housing Development Authority

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MSHDA New Reservation:

• After you have selected the First TD you will be prompted with two options to continue: Continue Without Additional

Mortgage(s) Continue With Additional Mortgage(s)

1. Select the correct option

2. Click the Import 1003 button

3. Click the Choose File Button

4. Click Upload

Please Note: Once the Fannie Mae file has been imported, please review your data on the entry insuring all fields have been properly completed. Reservations must be made on Lender Online. Reservations stay with the buyer no necessarily the property.

Michigan State Housing Development Authority

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MSHDA Program Documents:

1. Locate the program documents link at the top of the page

2. Select the desired document program

3. Download or access the desired document/s you will need to complete and fill in the fields

Michigan State Housing Development Authority

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Sample Commitment Letter:

Michigan State Housing Development Authority

MSHDA Disclosures

Disclosures 1st TD:

Michigan State Housing Development Authority

• Please refer to the Disclosing a Loan Training material for general disclosure questions

1. Click on the eFolder icon

2. Click the eDisclosures Button

Special Note: When clicking the eDisclosures button if there are any missing required fields needing to be completed or corrected FT360 system will prompt you

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Disclosures 1st TD:

Michigan State Housing Development Authority

1. Select the Borrower Pair you are Disclosing to

2. Select the Correct Plan Code

3. Click Order eDisclosures

Note: Complete the Standard eDisclosure Process

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Closing Document Packages

Closing Document Packages:

Michigan State Housing Development Authority

• When the loans are clear to close and ready for generation of the Closing Doc packages, the MSHDA 1st TD will be drawn in accordance to PRMG’s standard Closing Doc process, utilizing the Order Docs feature

• All standard Closing Doc forms must be completed in their entirety

• Concurrently with generating a Closing Doc package for the MSHDA 1st TD, the Doc Drawer will be required to generate a Note and Deed/Mortgage for the MSHDA DPA 2nd

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Closing Document Packages:

Michigan State Housing Development Authority

• Due to the fact that only a Note and Deed/Mortgage are required for the DPA 2nd TDs, the standard Order Docs feature will not be utilized

• Instead, the Doc Drawer must follow these steps

1. Complete the Closing Doc forms in accordance with PRMG’s standard Closing Doc process, ensuring at a minimum, that the fields below are completed On Page 3 of the 1003 form, ensure all

Loan Originator and Company information fields are complete, including the names and NMLS numbers

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Closing Document Packages:

Michigan State Housing Development Authority

1. Complete the Vesting Information section on the Borrower Information –Vesting form

2. Complete all Closing Doc date fields on the RegZ – CD form

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Closing Document Packages:

Michigan State Housing Development Authority

1. Complete both the Lender and Docs Prepared By sections on the Closing Vendor Information form

2. Complete the Legal Description section on the Property Information form 1

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Closing Document Packages:

Michigan State Housing Development Authority

1. When all of the fields on the Closing Doc forms have been completed, click on the printer icon in the upper right hand of the screen

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Closing Document Packages:

Michigan State Housing Development Authority

1. Go to the Custom Forms tab

2. Select the MSHDA DPA Deed and MSHDA DPA Note forms

3. Select the Print to File option

4. Save the documents to your desktop and send to the Closing Agent with the MSHDA 1st TD Closing Doc package

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MSHDA Process Flow:

Michigan State Housing Development Authority

• Signed Purchase Agreement

• Make a Reservation to lock in the interest rate

• Package the loan

• Underwritten & approved by lender

• Send loan package to MSHDA

• MSHDA reviews & commitment is sent

• Lender closes and funds the loan

• Lender sends package to MSHDA for purchase

• Funds Sent to Lender

Loan Cancellation:

Michigan State Housing Development Authority

Cancel Reservation

Notify Secondary

FT360

• Cancel via fax to MSHDA 517-335-7081

• Email Secondary cancellation request

• Upload cancellation request into FT360

Homebuyer Advantages:

Michigan State Housing Development Authority

DPA up to $7500

Soft 2nd

lien

Credit score as low as

620

State of Michigan

RealtorⓇor Lender Advantages:

Michigan State Housing Development Authority

Ability to offer DPA options

Flexibility of financing

More qualified borrowers=More

closed loans

Increase in referrals

Dream of homeownership a

reality

Questions?Questions?PRMGUniversity@prmg.net