Tara Pavlik Managing Director Homeownership 3/5/2015 I LLINOIS H OUSING D EVELOPMENT A UTHORITY

NEW PROCESS

R ESERVATION / C OMMITMENT L OAN COMMITMENT IS PROCEDURALLY THE SAME AS THE CURRENT RESERVATION PROCESS. I NSTEAD OF RECEIVING A RESERVATION CONFIRMATION YOU WILL RECEIVE A COMMITMENT. – O NCE THE LOAN IS COMMITTED, YOU WILL HAVE IMMEDIATE ACCESS TO THE FHA COMMITMENT LETTERS ( IF APPLICABLE ) – T HE LENDER CLOSES THE LOAN ( AFTER LENDER DETERMINES BORROWER IS TAX CODE COMPLIANT ) – T HE COMMITMENT IS VALID FOR 60 DAYS W ITHIN THOSE 60 DAYS THE LOAN MUST BE DELIVERED AND SOLD TO US B ANK MRBP. I F NOT PURCHASED BY THE 60 TH DAY, LENDER RECEIVES.25 BPS REDUCTION TO THE SRP. I F NOT PURCHASED BY THE 90 TH DAY THE LOAN IS PURCHASED AT IHDA’ S DISCRETION. H OWEVER, WE ’ RE UNDER NO OBLIGATION TO PURCHASE THE LOAN. O NCE A LOAN IS RESERVED, A LENDER CANNOT CANCEL AND RE - RESERVE ANOTHER LOAN FOR THE SAME BORROWER WITH RESPECT TO THE SAME PROPERTY FOR 60 DAYS AFTER THE INITIAL CANCELLATION.

H OMEOWNERSHIP N EW F ORMS R EVISED, EASIER TO COMPLETE ONLINE DOCUMENT SETS – A LL ACCESSIBLE ON IHDA.ORG, – UNDER : P ARTNER, I NFORMATION, FREQUENTLY USED FORM AND DOCUMENTS – D OCUMENT S ETS - F ILLABLE PDF – E LECTRONIC S IGNATURES AVAILABLE TO ALL LENDER THAT WISH TO PARTICIPATE T O PARTICIPATE LENDER MUST SEND IN TO IHDA ON COMPANY LETTER HEAD THAT THEY WILL BE USING ELECTRONIC SIGNATURES AND A SAMPLE OF A 1003 SIGNED ELECTRONICALLY – A LL DOCUMENTS CAN BE COMPLETED WITH INITIAL DISCLOSURES ( THE ONLY EXCEPTION WOULD BE THE INCOME CALCULATOR AND SELLER AFFIDAVIT ) A UTHORIZATION AND R ELEASE – T HIS IS M ANDATORY - IHDA WILL NO LONGER PURCHASE A LOAN THAT HAS THIS MISSING – NO EXCEPTIONS! – L OCATED ON IHDA. ORG – EXPLANATION

R EQUIRED D OCUMENT !!!

H OMEOWNERSHIP N EW P ROCESS I N M ARCH 2015, IHDA WILL INSTITUTE A NEW OPERATIONAL POLICY. I NVESTOR PACKAGE UPLOAD ( ALL ITEMS REQUIRED YOU WOULD NEED FOR INVESTOR DELIVERY ) – D ELIVERY C HECKLIST ( ALL ITEMS THAT ARE SEND FOR INVESTOR DELIVERY ) IHDA PACKAGE UPLOAD ( ALL DOCUMENTS NEEDED FOR TAX CODE COMPLIANCE ) – S UBMISSION COVER AND DATA SUMMARY ( APPRAISAL DATA IS REQUIRED, ALL FINAL NUMBER MUST BE ACCURATE - IF NOT COULD DELAY FUNDING !) D ELIVERY - U.S B ANK HFA D IVISION - IHDA

H OMEOWNERSHIP N EW P OLICIES - EFFECTIVE M ARCH 1, 2015 A LL FILES SUBJECT TO THIRD PARTY QC A UDIT – W HAT DOES THAT MEAN ? – H OW LONG IS THE PROCESS ? E LECTRONIC SIGNATURES ALLOWED STARTING 3/1/2015 – M UST SIGN UP TO DO SO – L ENDER L ETTERHEAD AND A SAMPLE OF E LECTRONIC SIGNATURES – B ORROWER / SELLER AFFIDAVIT, R ECAPTURE, I NCOME C ALCULATOR, I NCOME CERTIFICATION C OPIES - IHDA WILL NOW ACCEPT UPLOADED COPIES OF ALL IHDA DOCS - NO APPROVAL REQUIRED - O RIGINAL MORTGAGE AND NOTES STILL REQUIRED

RECAP

NEW PROGRAMS EFFECTIVE 3/1/2015

First time ever down payment assistance program is available to non first time home-buyers Statewide

A VAILABLE FOR F IRST TIME AND NON - FIRST TIME HOMEBUYERS F EATURES : 30- YEAR FIXED RATE LOAN (VA, FHA, USDA, FNMA(DU) 30- YEAR FIXED RATE LOAN (VA, FHA, USDA, FNMA(DU) AT THIS TIME NO FREDDIE MAC (LP)) AT THIS TIME NO FREDDIE MAC (LP)) A F LAT $ 5, D OWN P AYMENT AND / OR C LOSING C OST A SSISTANCE AVAILABLE A F LAT $ 5, D OWN P AYMENT AND / OR C LOSING C OST A SSISTANCE AVAILABLE P URCHASES ONLY ! P URCHASES ONLY ! THE SECOND WILL BE AMORTIZED OVER 10 YEARS WITH A ZERO PERCENT INTEREST RATE MONTHLY PAYMENT. THE SECOND WILL BE AMORTIZED OVER 10 YEARS WITH A ZERO PERCENT INTEREST RATE MONTHLY PAYMENT. – $41.67 PER MONTH PAYABLE MONTHLY Q UALIFIED D WELLINGS UNITS ( MUST BE PRIMARY RESIDENCE ) Q UALIFIED D WELLINGS UNITS ( MUST BE PRIMARY RESIDENCE )

C ONVENTIONAL P ROGRAM : O PTIONAL L ENDER P AID M ORTGAGE I NSURANCE N O A DVERSE M ARKET F EES N O P RICING A DJUSTMENTS R EDUCED PMI C OVERAGE : 18% FOR THE LTV S GREATER THAN 95% AND LESS THAN OR EQUAL TO 97% 16% FOR THE LTV S GREATER THAN 90% AND LESS THAN OR EQUAL TO 95% 12% FOR THE LTV S GREATER THAN 85% AND LESS THAN OR EQUAL TO 90% 6% FOR THE LTV S GREATER THAN 80% AND LESS THAN OR EQUAL TO 85% D ELIVERY R EQUIREMENTS A LL IHDA CONVENTIONAL LOANS MUST BE RUN THROUGH DU AS “HFA PREFERRED“. Y OU MUST SHOW THE SUBORDINATE FINANCING, WHICH IS CONSIDERED A COMMUNITY SECOND.

@H OME I LLINOIS LENDER PAID OPTION 640 MINIMUM C REDIT SCORE 640 MINIMUM C REDIT SCORE L ENDER CHOOSES M ORTGAGE I NSURANCE COMPANY OFF A PPROVED LIST L ENDER CHOOSES M ORTGAGE I NSURANCE COMPANY OFF A PPROVED LIST L ENDER DELIVERS TO US B ANK CERTIFICATE OF I NSURANCE AND PROOF PAID L ENDER DELIVERS TO US B ANK CERTIFICATE OF I NSURANCE AND PROOF PAID SRP P AYMENT AS FOLLOWS SRP P AYMENT AS FOLLOWS % - 97% LTV, 4.0% SRP % - 90% LTV, 3.4% SRP * REGARDLESS OF COST OF LPMI SRP IS AS LISTED ABOVE M UST BE RUN THROUGH DU AS “HFA P REFERRED ” M UST BE RUN THROUGH DU AS “HFA P REFERRED ” NO LP (F REDDIE MAC ) LOANS ALLOWED NO LP (F REDDIE MAC ) LOANS ALLOWED

@H OME I LLINOIS LENDER PAID OPTION A PPROVED M ORTGAGE I NSURANCE C OMPANIES – A RCH – E SSENT – G ENWORTH – MGIC – N ATIONAL MI – R ADIAN – U NITED G UARANTEE

@H OME I LLINOIS S TANDARD SRP AND SRP WITH L ENDER P AID O PTION SRP PAYABLE TO PARTICIPATING LENDERS = 2.00% OF THE PRINCIPAL LOAN AMOUNT PAID AT PURCHASE BY U.S B ANK, PLUS INTEREST ON BOTH C ONVENTIONAL AND G OVERNMENT F OR LENDER P AID OPTION SRP PAID AS FOLLOWS % - 97% LTV, 4.0% SRP % - 90% LTV, 3.4% SRP

@H OME I LLINOIS LENDER PAID O PTION For non-delegated lenders, US Bank HFA Division will order the appropriate MI coverage selected by the Lender. Lenders are responsible to provide proof that the MI is paid in full when the closed loan file is delivered to US Bank.

W HAT IS A M ORTGAGE C REDIT C ERTIFICATE (MCC)? A N MCC IS A CERTIFICATE AUTHORIZED BY THE F EDERAL G OVERNMENT AND ISSUED BY IHDA. I T ALLOWS THE BORROWER TO TAKE 20 PERCENT OF THE ANNUAL MORTGAGE INTEREST PAID, AS A DOLLAR - FOR - DOLLAR REDUCTION TO THE ANNUAL F EDERAL INCOME TAX LIABILITIES. T HIS IS AVAILABLE TO ALL FIRST TIME FIRST TIME B ASIC A SSUMPTIONS : A DJUSTED G ROSS INCOME $55,000 L OAN A MOUNT $135,000 I NTEREST RATE 4.00% I NTEREST P AID F IRST Y EAR $ 5,349 H OW DOES AN MCC WORK ?

C ALCULATION OF B ENEFIT : Without MCC With MCC Income $55,000 Mortgage Interest Deduction - $ $4,280 (80%) Taxable Income $49,651 $50,720 Taxes 15% Tax Bracket $7,448 $7,608 MCC Tax Credit N/A $1,070 (20%) Income Taxes Due $7,448 $6,532 Tax Savings Due to MCC N/A $916 T HE EXAMPLE SHOWS THAT THE 20% CREDIT WILL LOWER THE TAX LIABILITY BY $ POTENTIALLY SAVING THE BORROWER $916 ÷ 12= $76.00 PER MONTH THE 1 ST YEAR S MART M OVE P ROGRAM

O PTIONAL OME I LLINOIS M ORTGAGE C REDIT C ERTIFICATE (MCC) A FEDERAL INCOME TAX CREDIT FOR THE LIFE OF THE LOAN ( AVAILABLE TO FOR FIRST TIME HOME - BUYERS OR VETERANS ONLY ) – $350 F EE TO IHDA – $150 F EE TO LENDER L ENDER P AID M ORTGAGE INSURANCE ( AVAILABLE ON CONVENTIONAL PROGRAMS ONLY ) TO FIRST TIME AND NON - FIRST TIME HOMEBUYERS

IHDA’ S P ROGRAM Q UALIFICATION I NCOME AND PROPERTY APPLICABLE LIMITS APPLY ON ALL LOANS I NCOME AND PROPERTY APPLICABLE LIMITS APPLY ON ALL LOANS M INIMUM C REDIT SCORE M INIMUM C REDIT SCORE 640 (FHA LTV, USDA, VA-100% LTV, C ONVENTIONAL – 95% LTV OR LESS ), 640 (FHA LTV, USDA, VA-100% LTV, C ONVENTIONAL – 95% LTV OR LESS ), 660 ( M ANUFACTURED NO CONVENTIONAL ) 660 ( M ANUFACTURED NO CONVENTIONAL ) 680 (FNMA C ONVENTIONAL - DU ONLY ) B ETWEEN 95.01% AND 97%-LTV M UST BE UNDERWRITTEN WITH US B ANK –MRBP DIVISION $300 FEE 680 (FNMA C ONVENTIONAL - DU ONLY ) B ETWEEN 95.01% AND 97%-LTV M UST BE UNDERWRITTEN WITH US B ANK –MRBP DIVISION $300 FEE M AXIMUM TOTAL DEBT ( BACK END ) RATIO OF 45 PERCENT M AXIMUM TOTAL DEBT ( BACK END ) RATIO OF 45 PERCENT B ORROWER M UST CONTRIBUTE 1 PERCENT OF PURCHASE PRICE OR $1,000 FROM BUYER ’ S OWN FUNDS, WHICHEVER IS GREATER B ORROWER M UST CONTRIBUTE 1 PERCENT OF PURCHASE PRICE OR $1,000 FROM BUYER ’ S OWN FUNDS, WHICHEVER IS GREATER A UTHORIZATION AND R ELEASE R EQUIRED A UTHORIZATION AND R ELEASE R EQUIRED H OMEOWNERSHIP COUNSELING REQUIRED THIS IS REQUIRED FOR ALL BUYERS H OMEOWNERSHIP COUNSELING REQUIRED THIS IS REQUIRED FOR ALL BUYERS

@H OME I LLINOIS E LIGIBILITY REQUIREMENTS A VAILABLE FOR F IRST TIME AND NON - FIRST TIME HOMEBUYERS WITHIN IHDA’ S APPLICABLE INCOME AND P URCHASE P RICE LIMITS A VAILABLE FOR F IRST TIME AND NON - FIRST TIME HOMEBUYERS WITHIN IHDA’ S APPLICABLE INCOME AND P URCHASE P RICE LIMITS M UST P URCHASE A 1-2 UNIT SINGLE FAMILY PROPERTY WITHIN THE STATE OF I LLINOIS M UST P URCHASE A 1-2 UNIT SINGLE FAMILY PROPERTY WITHIN THE STATE OF I LLINOIS B ORROWER MUST OCCUPY PROPERTY AS PRIMARY RESIDENCE ( N O NON - OCCUPANT CO - BORROWER ALLOWED !) B ORROWER MUST OCCUPY PROPERTY AS PRIMARY RESIDENCE ( N O NON - OCCUPANT CO - BORROWER ALLOWED !)

@H OME I LLINOIS R ECAP M ORTGAGE C REDIT C ERTIFICATE (MCC) A FEDERAL INCOME TAX CREDIT FOR THE LIFE OF THE LOAN ( AVAILABLE TO FOR FIRST TIME HOME - BUYERS OR VETERANS ONLY ) M ORTGAGE C REDIT C ERTIFICATE (MCC) A FEDERAL INCOME TAX CREDIT FOR THE LIFE OF THE LOAN ( AVAILABLE TO FOR FIRST TIME HOME - BUYERS OR VETERANS ONLY ) L ENDER P AID M ORTGAGE INSURANCE ( AVAILABLE ON CONVENTIONAL PROGRAMS ONLY ) L ENDER P AID M ORTGAGE INSURANCE ( AVAILABLE ON CONVENTIONAL PROGRAMS ONLY ) V ERY COMPETITIVE RATES V ERY COMPETITIVE RATES 30 YEAR FIXED RATE TERMS 30 YEAR FIXED RATE TERMS O N CONVENTIONAL LOAN DU ONLY NO LP (F REDDIE M AC LOANS NOT ALLOWED AT THIS TIME ) O N CONVENTIONAL LOAN DU ONLY NO LP (F REDDIE M AC LOANS NOT ALLOWED AT THIS TIME )

@H OME I LLINOIS NEW WEBSITE T H OME I LLINOIS. GOV L OAN OFFICERS LISTED WITH CONTACT INFORMATION AS PROVIDED BY LENDERS O NLY LOAN OFFICERS THAT CLOSED A LOAN LAST YEAR ARE LISTED

QUESTIONS?

Resources IHDA Support Line: IHDA Website : IHDA Compliance Officers: Linda Benson - Supervisor Allison Crane Lee Gattuso John Maskim Diana Esparza-Navarrete Aaron Turner IHDA Account Managers: Greg Faulkner Scott Bush

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