MFA’s Partners Program     Kuia Taiaroa, Executive Director, White Sands Habitat for Humanity; Jeff Payne, Senior Director of Mortgage Operations, MFA 2018 NEW MEXICO  HOUSING SUMMIT September 13, 2018 Albuquerque, NM

Support Mission of Affordable Homeownership Provide mortgage loans to prospective homebuyers who have been prepared for homeownership but otherwise would be unable to access traditional mortgage financing. Strengthen the development capacity for non-profit housing development organizations, tribal organizations and public housing agencies in New Mexico by allowing return of capital resources, furthering their production of affordable single family housing. Collaboration between MFA and low-income housing providers, lenders, communities and families.

A Look Back Habitat’s perspective Program history Past program features Habitat’s Need for funding and liquidity

Focus Better long term success for homeowners Use a mortgage lender for improved analysis of borrowers’ financial preparedness Focus on employment stability and rental history Improve program performance Provide better return of capital to affiliates

Partners Program Directive Summary of important features: Interest rate of 0% Maximum LTV; 90% of appraised value Debt to Income ratios 35%/41% Income at or below 60% of AMI Credit Score of 620 or greater with 12 month VOR Minimum 12 months employment stability 2% Fee paid at loan purchase

Sixty Percent Area Median Income Households Earning 60% of Area Median Income or Less by Family Size 1 2 3 4 5 6 7 8 Bernalillo, Sandoval, Torrance, Valencia 27,300 31,200 35,100 39,000 42,120 45,240 48,360 51,480 De Baca 23,760 27,120 30,540 33,900 36,660 39,360 42,060 44,760 Eddy 28,800 32,880 37,020 41,100 44,400 47,700 51,000 54,300 Lea 28,140 32,160 36,180 40,140 43,380 46,620 49,800 53,040 Los Alamos 48,300 55,200 62,100 69,000 74,520 80,040 85,560 91,080 Otero 22,860 26,100 29,340 32,580 35,220 37,800 40,440 43,020 San Juan 25,260 28,860 32,460 36,060 41,880 47,640 Santa Fe 29,160 33,300 37,440 41,580 44,940 48,240 51,600 54,900 All other Counties 22,560 25,800 29,040 32,220 34,800 37,380 39,960 42,540

Approval to Participate Provide information about the organization Financial statements and audit reports Key personnel, policies and structure Good standing with State of NM and Habitat International Upon approval by MFA, Participants will make themselves available for program training. MFA’s Partners Program is available only to borrowers who obtain financing through one of MFA’s approved Participants and Lenders. Provide information about the organization, the organization’s activities and most recent audited financial statements. Based on this information, MFA will make a determination as to the organization’s stability and administrative capability of the organization to participate. The intent of this program is to partner with non-profit housing organizations that have limited access to other homeownership funding sources.

Loan Documents and Agreements MFA and Habitat: Application for Participation Approval Mortgage Purchase Agreement Income Eligibility Determination Habitat Certifications Disclosure Closing Agreement Note and Mortgage MFA and Lender: Lender Agreement

Process Overview Homebuyer approved by affiliate as partner family Apply with designated lender Obtain loan approval from lender Send Compliance Package to MFA for approval Receive MFA’s authorization to close loan Send Purchase Package to MFA for funding

Questions and Feedback For more information please contact me: Jeff Payne, Sr. Director of Mortgage Operations (505) 767-2270 jpayne@housingnm.org www.housingnm.org Thank you!