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ATLANTA HOME OWNERSHIP CENTER

ATLANTA HOME OWNERSHIP CENTER. WELCOME TO What’s New at FHA 2009 Kentucky Affordable Housing Conference October 28, 2009. It’s Our Anniversary!. CHANGES & PENDING GUIDANCE. Online Guidance (Handbooks, Mortgagee Letters, Housing Notices, Federal Register, and More)

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ATLANTA HOME OWNERSHIP CENTER

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  1. ATLANTA HOME OWNERSHIP CENTER WELCOME TO What’s New at FHA 2009 Kentucky Affordable Housing Conference October 28, 2009

  2. It’s Our Anniversary!

  3. CHANGES & PENDING GUIDANCE • Online Guidance (Handbooks, Mortgagee Letters, Housing Notices, Federal Register, and More) • Mortgage Limits (Forward and Reverse) • Mortgage Insurance Premiums (MIP) • Adding Chief Risk Officer • Require Submission of Audited Financial Statements by Supervised Mortgagees • Mortgagee 09-31

  4. CHANGES & PENDING GUIDANCE • Requires Rule Making: • Modify Mortgagee Approval and Participation in FHA Loan Origination • Increase Net-Worth Requirement for Mortgagees • Closing costs • Short sales/Short payoffs

  5. Revised Streamline Refinance Transactions • Mortgage 09-32 • Effective for new case number assigned on or after 60 days from the date of this letter • Seasoning • Borrower must have made at least 6 payments

  6. Revised Streamline Refinance Transactions . . . . . • Payment History • If less than 12 months payment history, all payments must have been made within month due. • 12 months or greater: • No more than one 30 day late in preceding 12 months • All within month due for the 3 months prior to the date of loan application.

  7. Revised Streamline Refinance Transactions . . . . . • Net Tangible Benefit • Reduction in the TOTAL mortgage payment • Refinancing from an ARM to fixed rate OR • Reducing the term of the mortgage • Certifications and Verifications • Letter certifying that borrower is employed • Assets to close must be documented • Payoff Statement

  8. Revised Streamline Refinance Transactions • Credit Score • If available must enter into FHA Connection • Maximum Combined Loan to Value • 125% if Subordinate Financing • TOTAL Scorecard • Rate & Term/No Cash out • Uniform Residential Loan Application (URLA) • Abbreviated Version Can No Longer Be Used

  9. Revised Streamline Refinance Transactions • Revised Streamline Refinance Transactions WITHOUT an Appraisal • Maximum insurable mortgage cannot exceed: • Outstanding principal balance minus the applicable refund of the UFMIP • Plus • New UFMIP charged on the refinance

  10. Revised Streamline Refinance Transactions • Revised Streamline Transaction WITH an Appraisal • Maximum insurable mortgage is the lower of: • Outstanding principal balance minus the applicable refund of UFMIP, plus closing costs, prepaid items to establish the escrow account and the new UFMIP charged on the refinance OR • 97.75 % of the appraised value plus the new UFMIP

  11. APPRAISER/PROPERTY POLICY CHANGES • Appraiser Independence • Mortgagee Letter 09-28 • Mortgage Brokers & Commission Based Lender Staff are Prohibited from Ordering Appraisals • Appraisal Portability • Mortgagee Letter 09-29 • Allows a Second Appraisal Under Limited Set of Circumstances

  12. APPRAISER/PROPERTY POLICY CHANGES • Appraisal Validity Periods • Mortgagee Letter 09-30 • Appraisal Validity Period Reduced to Four Months • Existing • Proposed • New Construction

  13. APPRAISER/PROPERTY POLICY CHANGES • Revised Eligibility Requirements for FHA Roster Appraisers • Mortgagee Letter 09-36 • Condominium Approval Process • Mortgagee Letter 09-19 • Effective Date • Eligible projects • Ineligible projects

  14. APPRAISER/PROPERTY POLICY CHANGES • Approval processing options • HUD review and approval process (HRAP) • DE lender review & approval process (DELRAP) General requirements • Site condos • “Spot” loan approval

  15. APPRAISER/PROPERTY POLICY CHANGES • FHA-to-FHA transactions • Environmental review • Project Eligibility Requirements • Applicable to ALL Project Approvals • FHA Concentration • Reserve Study • Manufactured Housing Condo Projects • Condo Conversions

  16. APPRAISER/PROPERTY POLICY CHANGES • New Construction Pre-Approval & Inspection • General (Approval) Processing Steps • Certification of Initial Approval • Certification of Previously Approved Projects • Insurance of Individual Units

  17. That’s all. Questions?

  18. GUARANTEED HOUSING LOAN PROGRAM UNITED STATES DEPARTMENT OF AGRICULTURE USDA - RURAL DEVELOPMENT http://www.rurdev.usda.gov/regs http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do http://www.rurdev.usda.gov/rhs/sfh/GSFH_Information/GSFH_Specific.htm Your USDA Lending Partner

  19. KENTUCKY • 2,993 LOANS • $314,353, 756 NATIONALLY • 341,000 LOANS • $33.7 BILLION

  20. GUS! • 1.  GRH –GUS Lenders Training • 2.  In order to better assist GUS Lenders (Security Administrators) we have posted a new guide to the SharePoint website which can be accessed at the following address:  https://rd.sc.egov.usda.gov/teamrd/hcfp/sfh/Single%20Family%20Housing%20Information/Forms/All%20Documents.aspx • 3.  View the GUS User Guide on the USDA LINC Training and Resource Library page.  https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.do • 4.  March 26, 2009 • Mandatory Training Required:  New GUS Users • EFFECTIVE APRIL 1, 2009, approved lenders seeking access to the Guaranteed Underwriting System (GUS) must complete mandatory training offered by the Agency.  This training is to assure compliance with and understanding of Agency regulations and provide an overview of the expectations of mortgage loans entered into GUS.  Security Administrators and users that will be authorized “Final Submit” authority MUST complete training.  • A calendar of available training and registration for training can be viewed at WebEx.  Each registration represents access to one phone line.  In order to accommodate multiple locations users must log into the training center and register for the training on an individual basis.  Follow these steps to register for training:    • Log onto:  https://rurdev.webex.com • Select “Training Center” • Select the “Upcoming” tab to view a calendar of scheduled “Get to Know GUS” trainings. • Select “Register” and complete the required fields.  • A confirmation email will be sent to the registered participant.  Course materials will be emailed prior to training.  • Attendance spreadsheets will be provided to record participants.  • Lenders who have an active GUS User Agreement prior to April 1, 2009 are encouraged to take GUS training, but are not required.  Additional GUS trainings available are “Understanding the GUS Underwriting Findings Report” and “Importing a Loan into GUS.” • Questions regarding this announcement may be directed to kristina.zehr@wdc.usda.gov, debra.terrell@wdc.usda.gov, or joshua.rice@wdc.usda.gov. 

  21. GUS! • December 2008 - GUS Lender User Guide: • https://usdalinc.sc.egov.usda.gov/docs/rd/sfh/gus/lender/GUSLenderUserGuide.pdf

  22. ADMINISTRATIVE NOTICES!http://www.rurdev.usda.gov/regs/an_list.html • http://www.rurdev.usda.gov/regs/an/an4474.pdf • STABLE & DEPENDABLE INCOME • http://www.rurdev.usda.gov/regs/an/an4470.pdf • DOCUMENTATION MATRIX • http://www.rurdev.usda.gov/regs/an/an4469.pdf • RATIO WAIVER & UNDERWRITING • http://www.rurdev.usda.gov/regs/an/an4454.pdf • OWNING MULTIPLE DWELLINGS • http://www.rurdev.usda.gov/regs/an/an4451.pdf • LIQUID ASSETS • http://www.rurdev.usda.gov/regs/an/an4442.pdf • IN-GROUND SWIMMIMG POOLS

  23. ADMINISTRATIVE NOTICES! • http://www.rurdev.usda.gov/regs/an/an4441.pdf • UTILIZING CREDIT SCORES • http://www.rurdev.usda.gov/regs/an/an4436.pdf • NON-TRADITIONAL CREDIT • http://www.rurdev.usda.gov/regs/an/an4435.pdf • RATIO WAIVER & PAYMENT SHOCK • http://www.rurdev.usda.gov/regs/an/an4414.pdf • NEW CONSTRUCTION • http://www.rurdev.usda.gov/regs/an/an4413.pdf • RETIREMENT ASSETS • http://www.rurdev.usda.gov/regs/an/an4411.pdf • RENTS & LEASES

  24. AO-1 John Wells (270) 247-9525 Ext. 4 E-mail john.wells@ky.usda.gov FAX: (270) 251-3596 AO-2 Gary & Tom (270) 384-6431 Ext: 5 E-mail gary.crockett@ky.usda.gov FAX : (270) 384-6351 AO-3 Brent Poole (502) 633-3294 Ext: 4 E-mail brent.poole@ky.usda.gov FAX: (502) 633-0552 AO-4 Scott Whitaker (606) 784-6447 Ext. 113 E-mail scott.whitaker@ky.usda.gov FAX: (606) 784-2076 AO-5 Tony & Dianna (606) 864-5168 Ext. 105 or 129 E-mail tony.snell@ky.usda.gov State Office-Lexington Don Johnson & Laura Leach (859) 224-7361 FAX :(859) 224-7450 E-mail:don.johnson@ky.usda.gov Web Site: http://www.rurdev.usda.gov/ky/index.html

  25. This is NOT Rural Development!

  26. THIS IS MORE LIKE IT!NO MAXIMUM PURCHASE PRICE

  27. GUARANTEED HOUSING LOAN PROGRAM Questions? Your USDA Lending Partner

  28. VA Guaranteed Home Loans Presented by:Theresa Davis Senior Loan Specialist Roanoke VA Regional Loan Center

  29. 2009 FYTD Statistics For VA Loans • Roanoke RLC has made 40,920 (last FY 21,084) Virginia accounts for highest number of loans – approximately 26,545 with an average loan amount of $282,091. • Nationally – 325,690 loans made this FY 2009. • YTD 38% of loans made are interest rate reduction/refinance loans. • VA’s foreclosure rates are one of the lowest in the industry.

  30. Types Of VA Loans • Purchase or construct a home • Purchase a VA/HUD approved condo or townhouse • Purchase farm property • Purchase a home and improve at the same time • Manufactured home on permanent foundation • Interest Rate Reduction Refinance Loans (IRRRL) • Cashout Refinances • Energy Efficient Improvement

  31. WHAT A VA LOAN CAN DO • Ensures Equal Opportunity to Veterans • No Down Payment Program • Negotiable Fixed Interest Rate • Streamlined Processing for Lenders • Right to Prepay without Penalty • Assumable Mortgage • Limitations on Closing Costs • Forbearance Extended to VA Homeowners Experiencing Temporary Financial Difficulty

  32. Find a Home Apply for COE VA Mails Guaranty To Lender Apply to Lender For Loan Lender Orders Appraisal by Phone Processing Time Six to Eight Weeks! Lender Sends Loan Package to VA Appraisal Received by VA, Reviewed and CRV Issued VA Reviews Each Package (30 to 40 Documents!!) Lender Packages Loan and Sends to VA for Approval Lender Closes Loan VA Approves or Disapproves Loan and Notifies Lender Do You Remember The Past ?

  33. Find Home Go to Lender Lender: • Determines eligibility electronically using ACE • Obtains Loan Guaranty Electronically 14-21 Days Where We Are Today… • Uses AUS to get decision in minutes • Orders Appraisal thru TAS • Lender Closes Loan

  34. How we got from there.. …..To Here What Changed? • Consolidation • Automation • Delegation • Oversight

  35. Automatic Procedure Lender.. • Originates • Processes • Underwrites Income & Credit packages and the Appraisal • Closes loan without sending anything to VA • Lender guarantees loan online through a system called WebLGY

  36. 99% of VA Loans are Automatics 1% are Priors

  37. Lender.. Originates Processes Submits loan to VA for underwriting Closes after VA issues commitment, usually in 3-5 days Prior Approval

  38. VETERANS INFORMATION PORTAL (VIP) http://vip.vba.va.gov

  39. WEBLGY • An automated system used by lenders to obtain an online certificate of eligibility • Accessed through the VIP http://vip.vba.va.gov

  40. Who Is Eligible For A VA Home Loan? Honorably discharged veterans who served: • 2 years on active duty • 6 years in the Reserve/National guard • POW’s held in captivity for 90 days of more • 90 days of wartime duty called up under U.S.C. Title 10 • 181 days of peacetime duty called up under U.S.C. Title 10 • Some unmarried surviving spouses

  41. What Does A Certificate Of Eligibility (COE) Mean To You? • GNMA, FNMA and FHLMC require government loans to have a minimum of 25% guaranty coverage. • Basic entitlement – under old law, allows for up to $36,000 for loans not to exceed $144,000. • Bonus entitlement – under new law allows for additional bonus entitlement of $68,250 to be used for purchases over $144,000 (not to exceed $$273,000). • Certificate of eligibility tells the lender, broker or real estate agent how much entitlement a veteran has available.

  42. What Does A Certificate Of Eligibility Mean To You (cont.)? • A veteran who never used the VA loan program has the full $36,000 of basic entitlement and $68,250 of bonus entitlement available to purchase a home. • A veteran who previously used the VA home loan program would need to sell the home and transfer title to obtain the full basic and bonus entitlement back (restoration of entitlement). • A veteran can obtain a certificate of eligibility over and over, provided they have adequate entitlement.

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