Louisiana Housing Corporation Choice Conventional Program Lender Training

Lender Training Agenda Welcome Introductions Overview LHC Choice Conventional Program Reservation Process Questions

Preferred and Choice rates are the same unless noted Rate Publishing Published Interest Rates will be posted daily to the Louisiana Housing Corporation’s website at www.lhc.la.gov and a Term Sheet will be emailed to lenders by 9:00 am and are valid through 6:00 pm daily. Preferred and Choice rates are the same unless noted After the rate is posted at 9:00 am, there is a possibility the rate may change. Always confirm current rate prior to locking rate.

No Origination/Discount Fees Down Payment Assistance Grant of 3% or 4% Program Details Competitive 30 year fixed rate mortgages Available state-wide No Origination/Discount Fees Down Payment Assistance Grant of 3% or 4% w/possibility for an increase based on borrower(s) income Minimum FICO Score of 640 Purchase Money Transactions Only No First Time Homebuyer Requirement No Bond Documents/Compliance Package No Second Mortgage Lender SRP of 2% No IRS Recapture Provision Loan limit is $424,100

LHC Choice Conventional Program The LHC Choice Conventional Program allows lenders to run their loans through Freddie Mac system - Loan Product Advisor LTV to 97% Income limits to $99,000 Reduced mortgage insurance premium Possible additional subsidy dependent on income and AMI

Program Details Non Occupying Co-Borrowers not allowed Homebuyer Education required for First Time Homebuyers Loan Product Advisor “Accept” only – Manual underwriting not allowed Temporary buy downs not allowed SF Dwelling (1 unit principal residences) Site Built Houses (detached structures) Condos and Townhomes 2-4 Units and Manufactured Not Allowed

Qualifying Income/Income Limits Maximum borrower(s) annual income is $99,000. Refer to Exhibit F(c) for the 50%/80% income limits by parish to determine if your borrower qualifies for additional subsidy. Sample parishes below: Parish 80% - Additional .50% Closing Cost Assistance 50% - Additional 2.0% Closing Cost Assistance Bossier, Caddo, DeSoto, $46,640 $29,150 Ascension, East Baton Rouge, Livingston, West Baton Rouge $51,280 $32,050 Orleans, Plaquemines, St. Charles, Jefferson, St. Bernard, St. Tammany, $48,000 $30,000

Increased Grant Adjustments Borrowers earning up to and including 50% of the parish median income regardless of family size or loan size are entitled to a 2% increase in the posted Grant size. Example: Current maximum grant is 4% and if borrower(s) qualify, the maximum grant would increase to 6%. Borrowers earning greater than 50% up to and including 80% of the parish median income regardless of family size or loan size are entitled to a .50% increase in the posted Grant size. Example: Current maximum grant size is 4% and if borrower(s) qualify, the maximum grant would increase to 4.5%. The grant amount will be advanced by LHC at closing. **Lenders will be liable for repayment if it is determined post closing that AMI income limits did not apply**

Compliance Review Requirements Pre-Close Compliance Review: None required by LHC Underwriters should re-confirm the final qualifying income to ensure the amount of the grant has been calculated correctly especially if the borrower qualifies for additional closing cost assistance. Post Close Compliance: LHC will require the following documents for all loans: Copy of signed final 1003 loan application Copy of executed purchase contract Copy of the Underwriting Transmittal Summary (FHLMC 1077/FNMA 1008) First two pages of the appraisal and any applicable addendums Homebuyer Education Certificate NOTE: Documents should be transmitted to singlefamily@lhc.la.gov immediately after closing

Ownership Interest in Other Residential Properties There are three (3) circumstances in which a borrower may hold ownership interest in a property that is acceptable to the program. 1. The borrower inherited their ownership interest in the property and shares ownership with another party. Documentation supporting the inheritance is required. 2. The borrower owns the property with another party and the debt associated with the property was assigned to the other party by a court order (e.g., a divorce decree, property settlement, etc. 3. The borrower is a cosigner/guarantor on the related Mortgage debt and someone other than the borrower has made payments on the debt associated with the property for the most recent 12 months, as documented with copies of canceled checks , bank statements or a statement from the lender

Program Deadline Requirements All program deadlines must be followed to avoid termination of the reservation. Exhibit C - Lender Certification must be received within 20 days for LHC Choice Conventional Program from the reservation date. Closed loan files must be delivered to SMC within 45 days of the reservation date. If the closed loan cannot be delivered to SMC within 45 days, the loan will be cancelled unless the lender completes and submits the Program’s Exhibit D - Extension Request Form to LHC and SMC prior to the expiration of the loan reservation.

Program Deadline Requirements If the 30 day extension is requested, the loan must be delivered to SMC within 75 days of the reservation date. Failure to deliver will result in termination of the reservation and the loss of the $375 extension fee. The loan must be purchased by SMC within a 70 day period of the reservation date or within a 100 day period of the reservation date with the 30 day extension. Failure to clear “Funding Conditions” will result in loans being returned to the lender.

Program Documents The LHC Choice Conventional Program documentation is streamlined to expedite loan processing. The documentation below can be found at: http://www.lhc.la.gov/page/-lenders , and by selecting this program. Required: Exhibit A – Loan Confirmation Report Exhibit C – Lender Certification Form Exhibit E – Requisition Form Optional: Exhibit B – Reservation Request Form (Backup Document) Exhibit D – Extension Request Form Informational: Exhibit F – Maximum Limits Reservation Guide Program Comparison

Program Fees The fees associated with the programs are the same for all Market Rate Programs. Fees will be netted from the purchase of the loan by SMC. Doc Review Fee - $300 Tax Service Fee - $85 Flood Certification Fee - $14.50 Transferring your own flood certification to SMC is allowed and will omit this fee Wire Fee - $20

Rate Lock Once a reservation is made, the rate lock will remain with the borrower throughout the lock period. Property transfers are allowed. Please contact LHC if these situations arise. Program transfers are allowed on a case by case basis.

Reservation Step by step instructions to make a reservation in the LHC online system are available through the Program’s Reservation Guide. To lock the reservation with the Master Servicer Standard Mortgage Corporation: Export Fannie 3.2 file from your LOS Download the Program’s Exhibit A – Loan Confirmation Report provided by the LHC online system Grab the daily Term Sheet published by LHC Then upload all forms into SMC Website to create a SMC loan Number. https://loans.approvedfast.com/standard/wholesale_pe595/index.php

Louisiana Housing Corporation Program Reservation Guide (excerpt) Select the desired program in the Program Selection Screen by clicking on the name then clicking on [New Loan].

Director Of Housing Development Administrative Assistant Manager Contacts Director Of Housing Development Brenda Evans, bevans@lhc.la.gov 225-763-8852 Administrative Assistant Carlette Powell, cpowell@lhc.la.gov 225-763-8867 Manager Mary Antoon, mantoon@lhc.la.gov 225-763-8649 Compliance Specialists Mary Boudreaux, mboudreaux@lhc.la.gov 225-763-8640 Sonja Andrews, ssmith@lhc.la.gov 225-763-8654 Cody Henderson, chenderson@lhc.la.gov 225-763-8650 Marketing Representative Casie McMurray, cmcmurray@lhc.la.gov 225-763-8671

SMC Contacts Account Manager – JoAnn Crow jcrow@stanmor.com 504-569-3707 Secondary Lock Desk – Tacey Schilling tschilling@stanmor.com 504-569-37802 Funding Supervisor – Sheila Hunter shunter@stanmor.com 504-569-3773 For Questions and/or Concerns contact lockdesk@stanmor.com

Questions?