MyCommunity Mortgage for Housing Finance Agencies. Sheryl Krocek, Presenter U.S. Bank Home Mortgage – MRBP Division January 24, 2005. What is MyCommunityMortgage ™ (MCM)?. MCM is Fannie Mae’s affordable lending product developed to serve low and moderate-income communities and borrowers. .
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Sheryl Krocek, Presenter
U.S. Bank Home Mortgage – MRBP Division
January 24, 2005
MCM is Fannie Mae’s affordable lending product developed to serve low and moderate-income communities and borrowers.
MyCommunityMortgage™ makes it easier than ever to afford a home of your own.
You need as little as $500 from your own funds
(remaining necessary funds can come from a variety of sources including gifts; grants; loans from relatives or nonprofit groups; employer-assisted housing; or a secured loan from a lender).
With MyCommunityMortgage™, your lender will work with you to consider all types of income and credit histories to help you qualify for the mortgage that you need.
If any of these situations describes you, MyCommunityMortgage might be a good fit:
Hypothetical example of borrower savings, 20% vs. 35% MI coverage:
$100,000 loan, 100% LTV, 5.65% interest rate, 30-year fixed-rate
20% MI 35% MI
MI Standard Rate
MI monthly payment* $49 $80
Monthly savings: $31
Income to qualify assuming
43% housing ratio: $22,132 $22,993
MI A– Rate, 619 FICO®
MI monthly payment* $114 $157
Monthly savings: $43Income to qualify assuming
43% housing ratio: $23,946 $25,132
* Assumes application of commonly available Standard or A- MI rates as of
May 2005; particular rate subject to MI company requirements.
Example is for illustration only and reflects just one of the interest rates commonly used under HFA bond programs.
Borrowers may use cash-on-hand for the down payment and closing costs, subject to specific criteria
Cash-on-hand funds will not be used to calculate reserves (if reserves are required)
DU will use the “Cash-on-Hand” amount to calculate the available funds to close
The lender must verify/document the following:
Down payment in excess of minimum required borrower contribution (the down payment “gap”) may consist of:
What are borrower options?
When underwriting an MCM mortgage, how can the options be used?
Desktop Underwriter supports most MyCommunityMortgage loans
*Loans originated under MRB programs do not affect the lenders allocation. The allocation affected is that of the Master Servicer purchasing the bond loan.
Types of Desktop Underwriting Access:
Access to DU, MCM, with EA I & II – full access
Lender inputs information into DU as a Community Lending Product and selects MCM – DU will report findings.
Lender receives the benefit of Fannie Mae’s Reps and Warrants on the automated decision
Some institutions offer their services to run your loan through their DU system and report findings to the lender for a small chargeLender Access to DU
Approved Fannie Mae Seller with noaccess to DU or no Authorized Underwriters
Information Source: Fannie Mae and www.efanniemae.com