SONYMA Express® Automated Underwriting and Compliance System

Background Entered into contract with Overture Technologies in October 2010 Company was sold twice since then; service and expertise got continually worse with each acquisition In October 2015, SONYMA negotiated a buyout of the vendor and took control of the system Hired 2 consultants (prior employees of original company) Cleared 181 tickets (enhancements, bugs, changes, etc.)

Background (Continued) Launched in May 2014 with 2 lenders M&T Bank and Freedom Mortgage Today, 6 lenders actively using Comprising 44% of 2016 production 7 lenders moving to production These 13 lenders comprise of 62% of 2016 production

Benefits of SONYMA Express® Eliminates uncertainty of the borrower’s eligibility for a SONYMA loan early in the process; Improves processing times; Provides documentation relief to applicants and lenders; Creates a paperless environment; and Improves Lender profitability.

Features of SONYMA Express® Instantaneous IRS compliance and credit underwriting decisions: Underwrites loans in accordance with SONYMA credit underwriting guidelines; Performs IRS acquisition cost and income calculations; Automatically determines target area eligibility and factors in the benefits of purchasing a home in a target area

Features of SONYMA Express® Retrieval of Tax Return Data Through a TRV service offered by CBC Innovis/Data Verify, system will upload last three years’ tax returns data; System analyzes tax returns for mortgage interest and real estate tax deductions, filing status, number of dependants; evidence of business income, dividend income, unreimbursed expenses, etc. and compare to application entries; Eliminates the need to submit hard-copy tax returns (in most cases).

Features of SONYMA Express® Automatic Creation of Pre-Populated IRS Compliance Forms Mortgagor’s Affidavit And Recapture Notification Property Seller’s Affidavit Interest Rate Option Form DPAL Recapture Notification RemodelNY Maximum Mortgage Worksheet

Features of SONYMA Express® Creates a Paperless Environment Through the document management vendor, BlitzDocs, all files and documents (except the original note, recorded instruments and other collateral documents) will be delivered by Lenders electronically Findings reports, credit reports, TRVs and insurance certificates will be automatically uploaded to BlitzDocs by SONYMA Express®

Features of SONYMA Express® Automatic Generation of E-Mails Lenders will receive an e-mail each time a loan status is updated or changed. Automatic e-mails will be generated reminding lenders upon any occurrence where: 60 days has lapsed since loan reservation and the loan file has not been submitted to the pool insurer; the SONYMA loan approval and interest rate is due to expire in 15 days; the pool insurance commitment is due to expire in 15 days.

Features of SONYMA Express® Other Features: Ensures loan goes to the correct insurer Identifies loans with DPAL and assigns pricing accordingly Subsidy section enables users to enter any subsidies based on source (e.g., AHC, FHLB), type (e.g., soft-second, unsecured) grant and use (e.g., downpayment, closing costs, rehab) Findings Report lists required documents based on program and property type Single Sign-on: one user name and password to access both SONYMA Express and BlitzDocs Ability to send extensions and cancellations through system

Features of SONYMA Express® Fully Integrated with: SONYMA Systems Document Management Vendor (BlitzDocs) Mortgage Insurers (SONYMA MIF and Genworth) Credit Reporting Bureaus TRV Vendor Census Tract Vendor

SONYMA Express® Loan Process Flow Lender Takes loan application Lender Origination System (LOS) Processes loan/collects docs required by findings report Loan Closing Start SONYMA Express/ BlitzDocs Transmits loan data via DU3.2 file to SONYMA Express & runs decision Registers loan & locks interest rate via SONYMA Express. Loan folder is created on BlitzDocs. Lender uploads Loan File via BlitzDocs and submits loan to Pool Insurer. Lender uploads Post-Closing Loan File via BlitzDocs Lender uploads Collateral File via BlitzDocs MI Company/ Pool Insurer Credit Underwriting Review Pool Insurer Decision uploaded to BlitzDocs SONYMA Interest rates published by SONYMA SONYMA reviews file & purchases loan SONYMA reviews Collateral File. File is complete. Ongoing Weekly Master Servicer Loan file transmitted to master servicer

Recent Major Enhancements Improved the IRS income calculator Completely revamped the RemodelNY maximum mortgage calculator Added NRP as a program option Ability to reupload applications Added ability for lenders to update final closing amounts and compliance income immediately prior to closing Added many edits and error messages to reduce errors

Upcoming Enhancements Create Audit Trail Addition of Short Sale as a Property Type/Construction Status (240 day lock) Incorporate features of Lender Online into SE Add Details of Transaction screen Modifications to findings reports (add more fields and Details of Transaction section) Ability to run reports

IMPORTANT INFORMATION

Lender Participation There is a test environment where you can upload real files, in a protected, closed system to get familiar with the system. When you go live you will still be able to have your files reviewed for compliance conditions prior to closing, until you’re ready to do compliance underwriting yourself No additional contract to be signed Fee - $48.95 per loan reserved Ancillary fees can be increased to $900 for SE loan

Reference Materials Lender Implementation Guide provides instructions on setting up users, credit and TRV providers SONYMA Express® Loan Process Steps provides step-by-step instructions on all phases of the loan process Online Help Submission of SONYMA Express® Post-Closing Loan Files Training Module

For More Information: Bill Teague – 518-573-5936, William.Teague@nyshcr.org Dawn Adams – 646-539-8776, Dawn.Adams@nyshcr.org Dilfia Munoz – 631-428-0345, Dilfia.Munoz@nyshcr.org Your SONYMA Business Development Team