U.S. Bank Home Mortgage. U.S. Bank Home Mortgage Lender Approval Delivery and Funding Top...

U.S. Bank Home Mortgage

U.S. Bank Home Mortgage Lender Approval Delivery and Funding Top Exceptions Purchase Process Help Desk and Lender Reference Customer Service and Loss Mitigation Underwriting Highlights and Resources Q & A

Agenda Agenda

U.S. Bank Home MortgageU.S. Bank Home Mortgage

“Master Servicer”

Review, purchase, securitize, and service mortgage loans from all participating lenders who are approved to originate in the program.

Loans must meet HOC compliance requirements, as well as specific loan product (FHA) underwriting guidelines.

The ONLY MRB Master Servicer with a Facility

SOLELY DEDICATED

to the Acquisition and Servicing of MRB

Loans

All loansServiced at our location

are originatedthrough State

and Local HFA Programs

Dedicated Facility and Team

of Individuals

2

Working with Housing Authorities is our BusinessWorking with Housing Authorities is our Business

Our MRB Nationwide Footprint

FLORIDA o

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ARKANSAS

OHIO

OKLAHOMA

WASHINGTON

INDIANA

MISSISSIPPI

GEORGIA

TENNESSEE

TEXAS

MINNESOTA

KANSAS

CT

PENNSYLVANIA

CALIFORNIA

ALABAMA

ARIZONA

COLORADO MD

WYOMING

IDAHO

NEVADA

UTAH

OREGON

NEW MEXICO

MONTANA

NEBRASKANEBRASKA

SOUTH DAKOTA

NORTH DAKOTA

IOWA

MISSOURI

ILLINOIS

WISCONSIN

MICHIGANNEW YORK

NEW HAMPSIRE

VERMONT

MAINE

W. VA

KENTUCKY

VIRGINIA

NORTH CAROLINA

SOUTH CAROLINA

MA

RI

OKLAHOMA

LOUISIANA

FLORIDA

MRBP DIVISION

NJ

DE

Lender ApprovalLender Approval

All lenders MUST be approved by both U.S. Bank and HOC to participate in the program

The U.S. Bank MRBP lender application is sent out with the lender invitation package

The MRBP Lender Help Desk will be responsible for the approval of all lenders

PreparationPreparation

Advise borrower their loan is being sold to U.S. Bank

Home Mortgage Ship loan(s) to U.S. Bank as soon as possible, using

appropriate loan delivery checklist

-Verify all documents are included in delivered

loan file

-Verify that all documentation is completed &

correctly executed prior to shipping

Delivery & FundingDelivery & Funding

Access information at: mrbp.usbank.com

Click on U.S. Bank lender manuals > to Allregs

Review Delivery and Funding Guidelines, Checklists, Forms, and any Updates

Share information with Originators, Closers & Shippers

Select U.S. Bank Lending ManualsSelect U.S. Bank Lending Manuals

Continue to Access AllregsContinue to Access Allregs

Open Housing Finance Authority folder and select Maryland, Montgomery CountyOpen Housing Finance Authority folder and select Maryland, Montgomery County

Delivery & FundingProgram InformationDelivery & FundingProgram Information

Example Checklist

Other ResourcesOther Resources

U.S. Bank BulletinsU.S. Bank Bulletins

Insurance Deductibles – Government

Hazard / Flood Deductibles may not exceed the higher of $1,000 or 1 percent of the face amount of the policy.

Association Policy requirements for CONDO/PUD Projects and common areas. U.S. Bank requires an HO-6 (walls-in) policy on all condo units.

Windstorm / HurricaneThe greater of $2,000 or 2% of the dwelling coverage.

Provide proof via paid receipt for all policies to show one year advance payment. Include the dollar amount paid.

Hazard Insurance / Loss Payee Clause:

U.S. Bank National Association

its successors and or assigns as their interest may appear.

c/o U.S. Bank Home MortgageP.O. Box 7298

Springfield, OH 45501-7298

Endorsements / Assignments“U.S. Bank National Association” (First Mortgages)

Borrower Payment Address and Website:

U.S. Bank Home Mortgage P.O. Box 468002

Bedford, OH 44146-8002

www.usbankhomemortgage.com

ReferenceReference

MERS ID #: 1000212

Program InformationProgram Information

FHA loans only Minimum FICO for all borrowers is 640 Debt to income maximum of 45% HOC Purchase Assistance will be funded by U.S.

Bank at the same time the 1st mortgage loan is funded. One wire will be sent for both loans (when applicable) and all fees/compensation

Fees and CompensationFees and Compensation

Fees– Loan Funding Fee - $150.00

– Tax Service Fee - $85.00

Compensation– 1.5% SRP, based on principal balance of loan at

time of funding

Loan File Delivery AddressLoan File Delivery Address

ALL Loan Files should be sent to:

U.S. Bank Home Mortgage 17500 Rockside RoadBedford, OH 44146

Attn: Operations Department

Loans will be reviewed within 3-5 business days of receipt

Loans With ExceptionsLoans With Exceptions

U.S. Bank will communicate all loan exceptions to a designated person via daily fax and weekly recap report

Exceptions can be emailed to [email protected]

Please provide separate cover letter/sheet for each loan exception and include U.S. Bank loan number

Once all outstanding deficiencies have been resolved and loan has been compliance approved, U.S. Bank will purchase the loan

Most Frequent Document ExceptionsMost Frequent Document Exceptions

1. Mortgage / Deed of Trust – Missing riders

– Tax Exempt, Condo, PUD Riders if applicable

– Missing pages of the mortgage and/or legal description

– Notary section left blank or incorrectly completed

– Property address differs from other documentation

2. Note– Missing original

– Endorsement incorrect: U.S. Bank National Association

– Incorrect payment terms. Must be = 360

– Property address differs from other documents


3. Truth in Lending– Initial T-I-L not in file

– Final T-I-L not in file

– Corrective final T-I-L, if applicable, not in file

– MI under-disclosed or not disclosed in the payment stream

– Reminder: new form required per Bulletin 2011-03

– Refer to Bulletins 2009-40 and 2009-52 for further information regarding T-I-L requirements

Note: Lender is required to follow federal guidelines. If loan is not in compliance, it cannot be purchased by U.S. Bank.The file will be cancelled and returned.


4. HUD-I– DAP assistance is not properly identified or has an amount that

differs from other documents

– Missing signed copy of the final HUD-1

– Evidence of tolerance violation in GFE fee comparison with no cure (see Bulletin 2009-89)

– Monthly escrows not collected

5. Good Faith Estimate – Most recently issued in file does not match loan terms at closing (see

Bulletin 2009-89)

– Missing from file

RESPA Reference: http://www.hud.gov/offices/hsg/rmra/res/respa_hm.cfmRESPA Reference: http://www.hud.gov/offices/hsg/rmra/res/respa_hm.cfm

Real Estate Settlement Procedures Act (RESPA)

U.S. Bank’s File Review

U.S. Bank Home Mortgage-MRBP staff performs a basic compliance review of the GFE document to ensure compliance with the following:

Ensure GFE is on proper form

Ensure HUD-1 is on proper form

Verify “Loan Terms” on HUD-1 match “Summary of Your Loan” on the last issued GFE.

Verify HUD-1 is within acceptable tolerances with last GFE issued including a review of charges that cannot increase by more than 10%

Verify lender provided acceptable cure documentation, if applicable

Post Settlement Cure: HUD allow lenders a 30-day cure period from date of borrower’s signed closing documents for violating GFE/HUD-1 fee tolerances. Lenders exceeding fee tolerances will be in violation of Section 5 of RESPA. USBHM must receive proof of refund to borrower and a corrected HUD-1, from settlement agent prior to loan purchase.

NOTE: If there is a known issue, don’t wait until USBHM has reviewed as you may exceed the 30-day cure period for correction.


6. Initial Loan Application– Interviewer date missing

– Missing from file

– Date for timing of early T-I-L not documented properly (see Bulletins 2009-40 and 2009-52)

7. Hazard and Flood Policies– Names and addresses do not match other documents exactly

– Flood coverage inadequate

– Deductibles greater than required

– Flood policy missing flood zone, or zone on flood policy does not match zone on flood certification

– Proof of payment not included in file


8. Manufactured Housing Documentation Requirements– Evidence of title being surrendered to state not in file

– Model number/name missing from Security Agreement

– Endorsement 7.1 not added to title commitment

– Security Instrument missing information on manufactured home

9. Underwriting Documentation– DU findings missing from file

– Underwriting Transmittal Summary missing or not signed

– Missing or inconsistent underwriting documentation for Conventional files


10. Assignment– Missing from file

– Not assigned correctly to U.S. Bank National Association (Endorsement on note must match – see Bulletin 2010-46)

– Incorrect references to lender, borrower, and/or property information

11. FHA Connection FHA Connection is checked during the review process for certain

information, and the following errors cause delays in funding:

– Incorrect closing date

– Incorrect ADP code

– No evidence that the UFMIP was sent to FHA

Loan Purchase ProcessLoan Purchase Process

Loans are purchased once all closed loan file exceptions and compliance exceptions have been cleared and HOC has given final compliance approval to U.S. Bank

Loans will be funded at an amortized balance net of escrow funds (no checks)

Loans are purchased daily Purchased loan summary / detail is faxed to lenders

Lender Help DeskLender Help Desk

E-Mail the Help Desk– [email protected]

Status of loans Status of documents received Loan Deficiencies / Exceptions Program guidelines General information

Help Desk Line:– 1-800-562-5165

Lender ScorecardLender Scorecard

Quarterly analysis is completed based on loans received for purchase and their performance

Loans placed on exception, not cleared or purchased within required timeframes

YTD deficiencies, delinquency, foreclosure & bankruptcy statistics

Final recorded documents over 240 days outstanding

Lenders and HOC are advised in writing of any issues

Post-Purchase - Final DocumentsPost-Purchase - Final Documents

Organize documents according to checklist All lenders are responsible for delivery of documents

to U.S. Bank Due within 120 days from purchase by U.S. Bank A late fee of $50 will be assessed after 120 days Deliver to:

Document Control17500 Rockside RoadBedford, Ohio 44146-2099

Final Doc SupervisorDarlene Kreigh – [email protected](216) 475-7739

Title Policy:

Mortgage amount is missing

Schedule A, item 4 contains incorrect mortgage recording information

Name of insured is incomplete (needs to mirror mortgage and have “it’s successors and/or assigns”)

Missing required endorsements

Second Mortgages:

Closing date is incomplete

Missing marital status of borrower(s)

Incorrect maturity date

Legal description missing

Tax Exempt Rider is recorded with Second Mortgage instead of the First Mortgage

Assignments:

Missing all recordings of the mortgage

Post-Close Trailing Doc Exceptions

Customer ServiceCustomer Service

U.S. Bank

Commitment To

Customer Service

MRBP Servicing Location

17500 Rockside RoadBedford, OH 44146

All MRBP Bond loans serviced from this facility!

Customer Service Toll Free Number800-240-7890

Hours: Monday – Friday 7:00 am – 8:00 pm EST


Customer ServiceCustomer Service

Borrower Payment Address and website:

U.S. Bank Home MortgageP.O. Box 468002

Bedford, OH 44146-8002


Customer ServiceCustomer Service Borrowers receive monthly billing statements

Spanish Speaking Customer Service & Default Representatives

Interactive Voice Response System (24 hours a day)

Mortgagor Website Access (24 / 7) www.usbankhomemortgage.com

Call Center Operations M-F (7:00am – 8:00pm est.) 800-240-7890

Default Servicing Call Center Operations (8:00am – 8:00pm est.)

Flexible Payment Methods: ACH, Mail,

Website, Phone

Home Retention – Maintain Home OwnershipHome Retention – Maintain Home Ownership

U.S. Bank’s mission is to minimize the number of delinquent loans through customer contact, education and awareness. Early contact and counseling are keys to successful loss mitigation

Our goal is to offer any attempt to initiate a repayment plan or a loss mitigation workout option

Loans active in foreclosure are not eliminated from receiving assistance. All foreclosure loans are solicited for loss mitigation efforts until the foreclosure sale date

Home Retention – Maintain Home OwnershipHome Retention – Maintain Home Ownership

U.S. Bank is dedicated to collectively working in both Default Counseling and Loss Mitigation towards keeping borrowers in their homes

U.S. Bank interviews borrowers obtaining their reason for default and provides options that are available to help. *Borrowers have the ability to establish repayment plans online for their situation

DVD video “We’d like to help”, mailed to borrowers. Available in English/Spanish. Pamphlet also mailed to borrowers offering assistance

Underwriting HighlightsUnderwriting Highlights

This presentation is for basic informational purposes only. It does not modify or replace the information provided by FHA. All loans should be underwritten in compliance with the most current underwriting guidelines for FHA

It is the lenders responsibility to follow all guidelines specific to the program as well as any U.S. Bank guidelines including mortgagee letters, announcements, or bulletins. This presentation is for general products requirements

U.S. Bank and HOC are not liable for loans not meeting product guideline criteria

Please note – only DU or LP may be used. Other lender customized automated underwriting systems are not acceptable at this time

Underwriting HighlightsUnderwriting Highlights

Credit Underwriting is the responsibility of the originating lender, U.S. Bank Home Mortgage (Master Servicer) will not re-underwrite loans

All loans are subject to both internal and agency audits

Underwriters should…– Make sound credit decisions

– Assure data integrity

– Include all necessary documents

– Provide supporting documentation for the UW decision

Resources FHA Underwriting GuidelinesResources FHA Underwriting Guidelines

Guide – 4155.1 rev 5 FHA website www.hud.gov Allregs www.allregs.com Search answers.hud.gov Email [email protected] Phone Monday-Friday, 8 am to 8 pm ET

– 1-800-CALLFHA (1-800-225-5342) [email protected]

Q & AQ & A

Q: If borrower only has 1 credit score, do we use that one score, or non traditional credit?A: If any borrower has a credit score it must be used. If no credit score is available, follow non-traditional underwriting guidelines.

Q: Do all borrowers need to meet the 640 median FICO requirement?A: Yes, all borrowers must meet the FICO requirement.

Q: Are Section 8 Loans permitted? A: Yes Section 8 Loans are permitted, contact the U.S. Bank Help Desk for more information.

For your participationFor your participationin thein the

Housing Opportunities CommissionHousing Opportunities Commission

program!program!

THANK YOU

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