Welcome to the Single Family Program Training Conference

1. Welcome Welcome Single Family Program Training Conference Dial-in Number: 1 (415) 655-0002 Participant Access Code: 806 656 355 https://housingnm.webex.com/join/aracicot

2. Access to the Presentation Audio for the presentation must be accessed through the conference dial-in number • Conference Dial-in Number: 1 (415) 655-0002 • Participant Access Code: 806 656 355 Questions can be asked via: • “ Chat Box” within the presentation A copy of the presentation was sent to you with the E-mail the evening prior to the webinar

3. Webinar Agenda Overview of Programs Compliance Approval Process Process and Flow of Loan File/Documents Delivery of Closed Loan Files

4. Overview of Programs

5. Overview of Programs • “First Home” Program • First Time Homebuyer Program • $500 borrower contribution • Minimum 620 credit score • 0% Origination Fee and 0% Discount Fee • Homebuyer Counseling Required for all Borrowers • Government (“FHA, VA, USDA, HUD Section 184”) and Conventional (“HFA Preferred”) • Income Limits and Acquisition Cost Limits detailed in First Home Program Policy and on MFA’s website at www.housingnm.org • Can be used in conjunction with “First Down” (for down payment assistance) or as a stand alone first mortgage

6. First Home (continued) • Must provide documentation for MFA to calculate income, determine property eligibility, first time homebuyer status, etc. • MFA calculates Household Income • All income from married couple included in income calculation • Must provide VOE, VOR, bank statements, etc. • Homebuyer counseling required for all borrowers • First time homebuyer (“bond”) Affidavits/Disclosures must be signed at closing

7. Overview of Programs • “First Down” Program • Down Payment Assistance 2nd Mortgage Loan • Up to $8,000 • 30 year, fixed rate (6.00%) • $100 origination fee may be charged by the lender • Used for minimum down payment and closing costs only • No cash back to homebuyer at closing • Combined with First Home Program only

8. Overview of Programs • “Next Home” • No First Time Homebuyer Requirement • Includes 3.0% DPA grant to homebuyer (“Next Home Grant”) • One Income Limit and one Purchase Price limit • $500 borrower contribution • Minimum 620 credit score • 0% Origination Fee and 0% Discount Fee • Must be primary residence. Homebuyer can own another home. • HFA Preferred Conventional Product allows the homebuyer to have an ownership interest in another residential dwelling at the time of loan closing • HFA Preferred fact sheet is available on MFA’s website @ www.housingnm.org

9. Overview of Programs • “Next Home” (cont.) • MFA will use the lender credit underwriting income to qualify the borrower for the program • MFA will not calculate “program” income separately • All credit underwriting income will be used including co-signer income • Simplified Documentation Lenders will not need to provide: • Paystubs • Tax returns • Bank statements • VOR’s • VOE’s • No “bond loan” closing documentation, even if borrower is a first time homebuyer (i.e. Recapture Notice, Affidavit of Buyer/Seller, Riders) • Homebuyer counseling is only required for first time homebuyers

10. Overview of Programs “Next Home Grant” • 3.0% DPA grant to the homebuyer • Lenders must reserve Next Home grant via the Online Reservation system (“ILRS”) • Grant is 3.0% of the total loan amount of the 1st Mortgage • When 1st mortgage is reserved, then click on “reserve a second” and reserve the grant amount. Enter the grant amount including the cents in the “loan amount” field even though it is not a loan (this is the only way to enter the Grant in the Online Reservation System) • Grant can be used for down payment, closing costs, etc. • Cannot be used for cash back to the homebuyer • Each Next Home Grant is assigned an ID number at time of reservation

11. Process and Flow of Loan File/Documents

12. Process and Flow of Loan File MFA • Loan Reservation via the ILRS (First Home & First Down OR Next Home & Next Home Grant) (Lender must have user name and password for any activity within the ILRS) • Reservation Lock Commitments are printed via the ILRS for each program reserved • MFA Compliance Addendum is printed via the ILRS • Index Sheets and Compliance Review Checklists are printed via the ILRS • Compliance File is uploaded electronically via the ILRS • MFA staff will Compliance Review • If file is suspended Lender will print Suspense Conditions via the ILRS • Conditions are submitted via ILRS • MFA staff will Clear Compliance Conditions

13. Process and Flow of Loan File (continued) MFA • Compliance Approval/Loan Purchase Commitment/DPA Funding Commitment for second mortgage or grant are printed via the ILRS(these forms are available to print only after Compliance Approval) • FTHB Bond (First Home) Loan Documents are printed via the ILRS (i.e. Affidavit of Seller, Affidavit of Buyer, Notice of Potential Recapture, Tax Exempt Financing Rider)

14. Process and Flow of Loan File (Continued) Forms will be populated with individual loan information • Loan number (Second Mortgage or Grant ID# will have to be completed manually on the MFA Compliance Addendum) • Loan Amount • Borrower/Co-Borrower name • Property address Sample Forms are available on MFA’s website • www.housingnm.org

15. Review of Compliance Checklists and Addendums

16. Compliance Approval Process

17. Compliance Approval Process • Lender receives Compliance Approval E-mail from MFA • After Compliance Approval • Lender will print a “Compliance Approval/Loan Purchase Commitment” for each first mortgage and DPA second mortgage loan • Lender will also print a “DPA Funding Commitment” for DPA loan or grant • Lender closes first mortgage and second mortgage loans in their name and funds the first and second mortgage loans or grant at the closing table • If the amount of the first, second or grant changes after Compliance Approval, lender is required to update the ILRS and submit updated documents to receive a revised Compliance Approval from MFA.

18. Compliance Approval Forms • “Compliance Approval/Loan Purchase Commitment” • MFA’s commitment to purchase the loan from the Lender • Details the terms and conditions by which the Master Servicer will purchase the loan • Loan that is delivered to Master Servicer must match the terms and conditions of the “Compliance Approval/Loan Purchase Commitment” • It is the Lender responsibility to ensure that the “Compliance Approval/Loan Purchase Commitment” and DPA Funding Commitment are accurate prior to loan closing. MFA will only purchase/reimburse for the amount listed on these Commitments.

19. Compliance Approval Forms(continued) • “DPA Funding Commitment” • Provided for DPA second mortgage loans and DPA grant • MFA’s commitment to purchase the DPA loan or reimburse the grant to the Lender • Includes information required by FHA/FNMA regarding DPA secondary financing (if applicable), source of DPA funds, commitment of DPA funds by MFA and a gift letter (if applicable) for the borrower

20. Closing First and Second Loans • Close First and Second Mortgages in Lender’s Name • Close First Mortgages on standard forms depending on investor • Close Second Mortgages on FNMA Standard Note and Mortgage (Do not use a Deed of Trust for the First Down Program) • First Home Program Loans will need the Bond Documents executed • Next Home Program Loans do not have any Bond Documents executed

21. Loan Delivery and Purchase ProcessIdaho Housing • Closed Loan delivered to Idaho Housing for Purchase • Closed Loan delivery checklists for Idaho Housing • Closed First and Second Loan file(s) delivered to Idaho Housing (Including Lender funded DPA Grant) • Delivery of original 1st mortgage Note • Closed Loan Review • Purchase pending conditions for first mortgage (First Home and Next Home) and First Down mortgage • Purchase/DPA Conditions • Conditions uploaded, reviewed and cleared • First Mortgage Loan Purchase/First Down Loan/Grant Reimbursement • Reimbursement provided by Idaho Housing via Lender Connection • Separate purchase advice for each loan • One wire for both

22. FormsClosed Loan Delivery/Purchase Separate Checklists for each Loan Type available on MFA’s and Idaho’s websites – loans to be delivered to Idaho • Idaho Housing MFA Lender Checklist • MFA Items Delivery Checklist (First Home or Next Home) • First Down DPA Closed Loan Checklist

23. Closed Loan File Delivery • 1st Mortgage loan documents uploaded to Lender Connection using IHFA checklist and stacking order • 2nd Mortgage loan documents (including a copy of the 2nd Note) uploaded to Lender Connection using NM MFA checklist and stacking order Two separate uploads are requested – both uploaded to the Idaho first mortgage loan number

24. Down Payment Assistance (“DPA”) Funding Process

25. DPA Funding Process All DPA is funded by the Lender at closing • Next Home grant or First Down • DPA loan is assigned/transferred through MERS to MFA at loan purchase (MFA MERS ORG. ID number 1013401 • OR if lender does not participate in MERS a paper assignment is recorded after the loan is purchased • First mortgage loan is assigned/transferred through MERS to Idaho Housing using their MERS Org. ID • OR if lender does not participate in MERS a paper assignment is recorded after the loan is purchased

26. Lender Funded DPA • The Lender will provide a “goodbye letter” to homebuyer on both the first and DPA 2nd mortgage loans when the loan is assigned/transferred • Payment Address for 2nd Mortgages (Lock Box): • MFA, P.O. Box 912727, Denver, Colorado 80291-2727 • Correspondence Address for 2nd Mortgages: • MFA, 344 4th Street SW, Albuquerque, NM 87102 • MFA Phone numbers for borrowers: • 505.843.6880 or Toll Free (within the state of NM) 1.800.444.6880

27. Lender Funded DPA • Idaho will provide a “welcome letter” to the homebuyer on the first mortgage loans • MFA will provide a “welcome letter” to the homebuyer on the DPA 2nd mortgage loans • Idaho will service all First Mortgage Loans • MFA will service all DPA 2nd mortgage loans

28. Note and Trailing Document Delivery Original 1st Mortgage Note, Original recorded mortgage (including riders), Original recorded Assignment (if applicable), Final Title Policy and Insurance Certificate (if applicable) sent to Idaho Housing and Finance Association. The Final Title Policy and Insurance Certificate may be uploaded to Lender Connection. Idaho Housing and Finance Association Attn: Document Center 565 W. Myrtle St. Boise, ID 83702 Original 2nd Mortgage Note and Original recorded mortgage sent to New Mexico MFA New Mexico Mortgage Finance Authority Attn: Homeownership Department 344 4th Street SW Albuquerque, NM 87102 *Please write 1st Mortgage loan number (Idaho’s) on the top of the 1st Mortgage documents** **Please write 2ndMortgage loan number (MFA’s) on the top of the 2nd Mortgage documents**

29. 1st Mortgage Note Endorsement to IHFA Pay to the order of Idaho Housing and Finance Association (no Ampersand signs, must spell out “And”) Without Recourse Lender Name _____(signature)_____ Signatory’s typed name, Title

30. 2nd Mortgage Note Endorsement to New Mexico MFA Pay to the order of New Mexico Mortgage Finance Authority Without Recourse Lender Name _____(signature)_____ Signatory’s typed name, Title

31. If Using an Allonge Borrower’s Name (exact match to Note) Property Address (exact match to Note) Note/Loan Amount Note Date (no closing date if different) Pay to the Order of Idaho Housing and Finance Association (No Ampersand sign)(First Mortgage) OR Pay to the Order of New Mexico Mortgage Finance Authority (No Ampersand sign)(DPA Mortgage) Without Recourse Company Name as it appears on the Note Signature Line Signatory’s Typed Name Signatory’s Title

32. Loans Purchased within 15 days of First Payment Due Date First payment (and subsequent payments) will be netted out of purchase amount of the First Mortgage purchase • Purchase Statement will account for escrow amount • Lender retains entire PITI First payment (and subsequent payments) will be netted out of purchase amount of the Second Mortgage purchase *** Lender is responsible for ensuring all applicable program guidelines, rules, regulations, processes and procedures are followed ***

33. Additional Items MFA program documents available on MFA website • Compliance Manual for First Home/First Down • Compliance Manual for Next Home/ Next Home grant • Online Reservation Manual • Sample Forms • Fact Sheets • Program Policies

34. Contact Information Idaho Housing and Finance Association • Mark Suderman, Loan Acquisition Manager MarkS@IHFA.org 208-331-7870

35. Contact Information- (Cont.) New Mexico Mortgage Finance Authority • Rene Acuna, Director of Homeownership racuna@housingnm.org, 505-767-2222 • Anita Rehm-Racicot, Assistant Director of Homeownership aracicot@housingnm.org, 505-767-2230 • Cynthia Marquez, Compliance Specialist cmarquez@housingnm.org, 505-767-2238 • Lisa Romero, Compliance Specialist lromero@housingnm.org, 505-767-2208

36. Contact Information- (Cont.) New Mexico Mortgage Finance Authority (Cont.) • Shawn Rasmussen, Lending Specialist srasmussen@housingnm.org, 505-767-2259 • Melissa Cabrera, Lending Specialist mcabrera@housingnm.org, 505-767-2223 • Barbara Tashkandy, Lending Coordinator btashkandy@housingnm.org, 505-767-2261 • Teri Baca, Homeownership Representative tbaca@housingnm.org, 505-238-7375 • Eunice Duran, Homeownership Representative eduran@housingnm.org, 505-239-1301

37. Questions?