01/07/2015 Welcome Closed Loan File Submission and Review Dial in number: (209) Participant Access Code: # 1

01/07/2015 Homeownership Staff Erik Nore, Director of Homeownership Anita Racicot, Homeownership Specialist Cynthia Marquez, Compliance Specialist Shawn Rasmussen, Lending Specialist Lisa Romero, Lending Specialist Barbara Tashkandy, Lending Coordinator Teri Baca, Homeownership Representative Eunice Duran, Homeownership Representative 2

01/07/20153 Reservation Process All Programs Reservation period  Loan must be purchased by Master Servicer no later than 60 days from the loan reservation date  First mortgage loans that are not purchased within the applicable timeframe must be extended or cancelled by the Lender. No exceptions, for any reason will be made to the reservation policies.

01/07/20154 Reservation Process All Programs Extension Fees  Lender can request either a 15 day or a 30 day extension for the loan delivery, for a fee:  15 day extension (0.1875% of the loan amount)  30 day extension (0.3750% of the loan amount)  Only ONE extension is allowed  Extension fee applies to first mortgage only

01/07/20155 Reservation Process All Programs Extension Fees  In the event that a loan is not purchased by the Master Servicer within 60 days of loan reservation, a 30 day extension will automatically be applied, unless the Lender requests a 15 day extension from MFA prior to the 60 day loan reservation expiration date.  The extension fee may be charged to the borrower

01/07/20156 Reservation Process All Programs Extension Fees  If loan is not purchased within 75 (15 day extension) or 90 (30 day extension) days of the date of reservation (including extension), loan can still be delivered, but will be purchased from Mortgage Lender on a worst case, Mark-to-Market basis that is determined at the time of purchase.

01/07/20157 Reservation Process ALL Programs Watch Pipeline  If the purchase dates cannot be met  ONLY MFA can grant extensions

01/07/20158 MFA Guidelines Minimum borrower cash contribution  MFA requires a minimum borrower cash contribution of $500.00, regardless of program type. HERO Program requires a $1, contribution.  Funds must be from the borrower and cannot be derived from any type of gift, grant, pro-rated taxes or down payment.

01/07/2015 MFA Guidelines Minimum borrower cash contribution  MFA requires the lender to provide proof of borrower’s funds  If the borrower contributes more than the required funds to the transaction (i.e. Earnest Money, POC Appraisal Fee) the borrower can get those funds back at closing 9

01/07/2015 MFA Guidelines Use of Mortgage Booster Funds  May only be used for minimum down payment and allowable closing costs  MFA will allow a principal reduction of up to $100 if the final Mortgage Booster loan is too high. The principal reduction must be applied to the first mortgage 10

01/07/2015 Fees to Borrower and Lender Fees  Mortgage$aver: 1.00% Origination % Discount to the borrower(s)  Mortgage$aver Zero, Mortgage$aver Plus and HERO: : 0.00% Origination % Discount to the borrower(s)  Lender will be paid 1.00% origination when loan is purchased by Master Servicer 11

01/07/2015 Fees to Borrower and Lender Fees  Mortgage$aver, Mortgage$aver Zero, Mortgage$aver Plus and HERO  Master Servicer (Idaho Housing) will pay a Service Release Premium of the Higher of 1.50% or $750 12

01/07/2015 Second Mortgage Allowable Fees Lender may charge an Origination Fee (Mortgage Booster only) $100 Recording Fee (DPA Mortgages)Actual Cost Title Insurance Fees (not Settlement Fees) for DPA loans Actual Cost Daily Interest ChargesActual Cost 13

01/07/2015 Second Mortgage Allowable Fees Fees must be reflected on the initial GFE and TIL as well as any additional disclosures that are required Fees must also appear on the final HUD-1, in accordance with the applicable regulations Variances on the allowable TIL tolerances will require re-disclosure and will trigger the mandatory MDIA “cooling off” period 14

01/07/2015 Second Mortgage Allowable Fees No other fees may be charged in conjunction with the origination, processing and settlement of an MFA second mortgage Down Payment Assistance loan 15

01/07/2015 Second Mortgage RESPA Lender must provide a Truth in Lending (TIL) Statement and Good Faith Estimate (GFE) to the borrower for the Mortgage Booster Program  Lender must re-disclose per RESPA guidelines  NOTE: The Payment$aver and Helping Hand programs are exempt because they are 0.00% non amortizing loans 16

01/07/2015 Payment$aver/SmartChoice With Mortgage$aver or Mortgage$aver Zero Maximum loan amount is 8% of the sales price OR $8,000 which ever is less SmartChoice Program – Borrower must be in possession of a Section 8 Housing Voucher. Loan amount is $15,000, no more and no less 0% non-amortizing loan due on sale, transfer or refinance 17

01/07/2015 Payment$aver/SmartChoice Borrower may finance down payment, temporary buydowns, closing costs (excluding pre-paids)  Use of funds are limited to cover the down payment and allowable closing costs. Borrower may finance additional down payment if needed to help in qualifying. 18

01/07/2015 Helping Hand One person in the household meets the ADA definition of disabled With Mortgage$aver or Mortgage$aver Zero Loan amount is $8,000, no more and no less 0% non-amortizing loan due on sale, transfer or refinance 19

01/07/2015 Helping Hand Borrower may finance down payment, temporary buydowns, closing costs (including pre-paids)  Use of funds are limited to cover the down payment and allowable closing costs. Borrower may finance additional down payment if needed to help in qualifying. 20

01/07/2015 Recapture Tax (IRS Imposed) Only applies to First Mortgage loans funded from Tax-Exempt Bond proceeds (Does not apply to HERO) Will only be required if all three of the following events occur  Borrower sells the home during the first nine (9) years of ownership  Borrower has a net gain (net profit) on the sale of the home  Borrower experiences a substantial increase in their income (IRS formula will define) 21

01/07/2015 Servicing of Loans Master Servicer will service all First Mortgage loan products MFA will service all Second Mortgage loan products Borrower will receive two coupons 22

01/07/ DPA Funding Process Per HUD’s Directive, MFA must fund DPA directly to the title company  DPA must be Compliance Approved prior to MFA sending the wire to the title company

01/07/ DPA Funding Process Lender must provide to MFA 24 hours prior to closing  Wire Request Form (Current form from MFA website)  Wire Instructions to the Title Company  Copy of the FINAL pre-close HUD 1  Need two (2) HUDs, if borrower obtaining a Mortgage Booster, Payment$aver, Helping Hand along with the MFA First Mortgage Loan

01/07/ DPA Funding Process  Copy of unsigned documents for funds being wired to title company  Note and  Mortgage  Wire Request and Attachments to

01/07/ DPA Funding Process MFA prepares wire requests once a day  Cut off time to receive wire requests/corrections is 10:00 am for wire to be sent out same day  Wires will be sent out by 3:00 pm to arrive at the title company by 5:00 pm same day  If property is a HUD or Bank owned property the funds need to be at title at the time of signing, be sure to request the funds to be sent to title the day before closing.

01/07/ DPA Funding Process Mortgage$aver Plus DPA  MFA will wire 3.50% of final loan amount (must be entire 3.50% including cents) HERO DPA  MFA will wire 3.00% of final loan amount (must be entire 3.00% including cents)

01/07/ DPA Funding Process Mortgage Booster loan  MFA will wire loan amount less interest collected on the 2 nd mortgage HUD  Since MFA is sending the funds to the title company at the time of closing, the first payment will be due to MFA and not the lender Payment$aver or Helping Hand loan  MFA will wire loan amount

01/07/2015 Questions? 29

01/07/ Closing Documents All Programs Non-occupying co-signer(s) allowed** not non-occupying co-borrower(s)  Co-signer will not take title to property  Co-signer(s) must sign Note for first and second mortgages ** Co-signers are not allowed under the HFA Preferred Program

01/07/2015 First Mortgage Closing Documents Mortgage$aver Programs Tax Code Documents  Affidavit of Purchaser  Affidavit of Seller  Notice of Potential Recapture  Tax Exempt Financing Rider attached to the first mortgage (FHA, Conventional or USDA loans)  VA Rider attached to the first mortgage (VA loan only) 31

01/07/2015 First Mortgage Closing Documents HERO Program The following documents are not required for the HERO Program  No “Recapture” requirement  Tax Exempt Financing/VA Rider not required  Seller and Purchase Affidavits are not required 32

01/07/2015 First Mortgage Insuring Package The DPA Commitment Form issued at the time of Compliance Approval is included in the insuring package to the investor. 33

01/07/2015 Second Mortgage MFA Closing Documents Note and Mortgage (Mortgage Booster, Payment$aver, SmartChoice and Helping Hand)  Complete the Organization and Loan Originator NMLS # below the signature lines 34

01/07/2015 Second Mortgage Closing MFA Documents Mortgage Booster Program Loan Breakdown Form Loan Disclosure 35

01/07/2015 Second Mortgage Closing MFA Documents Payment$aver/Helping Hand/SmartChoice Programs Fund Use Form Loan Disclosure Eminent Domain Disclosure Relocation and Acquisition Disclosure to the Seller 36

01/07/2015 Second Mortgage Closing MFA Documents Loan Break Down/Fund Use Form  Final Form(s) to be completed at the time of submitting the Delivery Package (This is the actual down payment and closing costs that match the settlement statement) 37

01/07/2015 Questions? 38

01/07/2015 Second Mortgage Closed Loan Files Delivered to MFA 39

01/07/2015 Closed Loan File Delivery Deliver all closed loan packages (First and Second) simultaneously to Idaho Housing and MFA  Deliver SECOND Mortgage Closed Loan Package to MFA  Paper Loan Delivery to MFA, Homeownership Department, th Street SW, Albuquerque, NM

01/07/2015 Closed Loan File Delivery to MFA Paper File Use most current checklist and forms from MFA’s web site (will review checklists later in presentation) Place file in file folder and two hole punch and Accofasten 41

01/07/2015 Closed Loan File Delivery Common mistakes Please make appropriate copies where asked on the checklist  Original Note and 1 copy 42

01/07/2015 Closed Loan File Delivery Common mistakes Send originals where asked on the checklist Loan Breakdown or HOME Fund Use form is missing  If this form is missing it causes additional review time when the form is eventually sent to clear condition. 43

01/07/2015 Closed Loan File Delivery Be sure to include pre-close TIL along with final TIL  Loan must comply according to RESPA rules 44

01/07/2015 Review of Closed Loan Checklist 45

01/07/2015 Closed Loan Conditions Please send all suspense conditions at once – this will speed up the process. If loan is suspended for an original, please do not fax and then send the original; this slows the process down 46

01/07/2015 Closed Loan File Pending Conditions  All purchase pending conditions must be cleared with the Master Servicer (for first mortgage loans and MFA (for second mortgage/DPA program loans) within 30 days of the issuance of the purchase pending notification 47

01/07/2015 Closed Loan File Pending Conditions  Conditions need to be cleared ASAP.  All First Mortgage Loans need to be purchased by Master Servicer no later than 60 days from date of reservation. 48

01/07/2015 Closed Loan Approval Once all suspense conditions have been cleared for the second mortgage MFA will send a letter to the Lender. Which reads:  The above referenced closed loan file has been reviewed for QC and has no outstanding conditions.  See the following attachment for required final documents that are due no later than 00/00/0000 ( 90 days from the funding [closing] date).  Please send a copy of this letter attached to the documents when returning them to MFA. This will help MFA process your documents faster. Thank you for your assistance. 49

01/07/2015 Final Document Delivery Final Documents for SECOND mortgages are to be delivered to MFA. Final Documents for FIRST mortgages are to be delivered to Master Servicer.  Final Documents are due within 90 days of the date of purchase/funding  Please send the original Mortgage plus one (1) copy 50

01/07/2015 First Mortgage Closed Loan Files Delivered to Idaho Housing and Finance 51

Idaho Housing Please let your borrowers know that their loan will be serviced by HomeLoanServ (Servicing Division of Idaho Housing and Finance) 01/07/201552

Idaho Housing Ship the closed loan documents to Idaho Housing and Finance using appropriate loan checklist and delivery mechanism.  Electronic Loan Delivery – Lender Connection Web Portal Send original Notes to IHFA street address Idaho Housing and Finance 565 W. Myrtle Boise, ID /07/201553

Idaho Housing Tax Service Fee  $ /07/201554

Idaho Housing – Endorsing Note Pay to the order of Idaho Housing and Finance Association Without Recourse “Lender Name” Signature Signatory’s typed name, Title Do not use the ampersand “&” sign, must spell out “and” 01/07/201555

Idaho Housing – Allonge Issues Information should match the Note exactly Borrower’s Name Property Address Loan Amount Note Date (not closing date if different) Endorsement should be per Idaho’s guidelines (slide 63) 01/07/201556

Idaho Housing Review – Common Mistakes UCDPs are required on HFA Preferred Program loans –The Uniform Collateral Data Portal® (UCDP®) is a single portal through which lenders electronically submit appraisal reports for conventional mortgages delivered to Fannie Mae or Freddie Mac. Through UCDP, lenders can upload appraisal data and view edits and submission details. 01/07/201557

Idaho Housing Review – Common Mistakes Checklists are not completed  Need contact information Hazard Insurance is not transferred to IHFA Need a letter of intent to transfer in file Flood Certification is not transferred to IHFA Need a letter of intent to transfer in file If file was manually underwritten, need AUS 01/07/201558

Idaho Housing Final Document Delivery Documents not required at time of purchase: Original FHA MIC, VA LGC, USDA-RD LNG Original ALTA Title Policy w/104 endorsement Original recorded Trust Deed with riders Original recorded Assignment, if not utilizing MERS 01/07/201559

Final Document Delivery Lenders will be required to certify delivery of these final documents within 90 days of the date of purchase by Idaho Housing and Finance 01/07/201560

Assignments If utilizing MERS, IHFA # If utilizing an Assignment:  FOR VALUE RECEIVED, the undersigned hereby grants, assigns and transfers to IDAHO HOUSING AND FINANCE ASSOCIATION, PO Box 7899, Boise, Idaho all beneficial interest under certain Deed of Trust Dated… 01/07/201561

Lender Connection Finding you Master Servicer Loan Number  Loan number will start with 350 XXXXXX Upload your electronic closed loan documents Upload appraisals Export your loan file 1003.FNM to the finalized reservation information provided by MFA. Track loan status Print purchase advice 01/07/201562

When to use Lender Connection You may use lender connection two business days after your loan reservation is submitted to MFA.  Loans will be in “Reservation Received” status 01/07/201563

When to use Lender Connection When MFA approves your loan in compliance review, Lender Connection will automatically open your loan reservation for upload and edit.  Loans will be in “Compliance Approved” status 01/07/201564

Locating Lender Connection Point your web browser to Click on the “Secure Login” tab at the top of the page. 01/07/201565

Locating Lender Connection Click on drop down in the center of the window and select “Lender Connection.” 01/07/201566

Log In IHFA will provide one person at every MFA lending partner’s office administrative login and rights to Lender Connection. Your administrator will be able to provide you with a username and an initial log-in password. From that point, you will be able to manage your personal account. 01/07/201567

Log In Type in your user name and password and click “Log In.” 01/07/201568

Main Page The main page lists all of MFA’s loan products. 01/07/201569

Reviewing Your Reservation To access your loan reservations, click on “Loans”, then “Reservations.” 01/07/201570

Reviewing your loans The reservation screen provides details about the loans you’ve submitted 01/07/201571

Finding your loan Number This screen provides details about the loan, the borrower, and the property. –Reservation Received, loans awaiting compliance approval from MFA. –Compliance Approved, loans ready for loan document upload. 01/07/201572

Upload Documents Click “Upload” in the documents column to securely send loan documents to Idaho Housing. Documents must be in PDF format and less than 100 megabytes. Upload your closed loan documents, appraisals, and electronic files securely. 01/07/201573

Upload Documents 01/07/201574

Upload Documents Document types: Loan Package - Closed loan package or appraisal Purchase Pending Documents Receipt – Automatically send a return receipt Subject – Borrowers name and loan number Message – Any additional information 01/07/

Editing your reservation Click “Edit Reservation” to review reservation detail and submit the 1003.FNM file. This link will only be available when MFA has approved the compliance package. 01/07/201576

Editing your reservation 01/07/201577

Errors during save 01/07/201578

Upload the 1003.FNM 01/07/201579

Upload the 1003.FNM 01/07/201580

Purchase Advice 01/07/201581

Purchase Advice 01/07/201582

Purchase Advice 01/07/201583

01/07/2015 Idaho Housing Contacts Annie Smith, Customer Service  General Master Servicing/Loan Program Questions Liz Calentino, Loan Acquisition Specialist  Master Servicer loan purchase inquiries 84

01/07/2015 Idaho Housing Contacts Mark Suderman, Loan Acquisition Lead  Master Servicer loan purchase inquiries General Mail Box

01/07/2015 Questions? 86

01/07/2015 Thank you from all of us at the MFA for your participation in our programs 87