Managing New & Diverse Single Family Programs HFA INSTITUTE 2015 Single Family Financing Essentials – Part 2 Susan Semba, Vice President Homeownership Lending Idaho Housing and Finance Association

Idaho Housing Facts  Began transitioning from MRB Financing to Alternative Secondary Market Channels in 2008  Large Geographic and Diverse State  1.6 Million Population  >70% Homeownership  Whole Loan Preference  “Best Execution” Strategy

Loan Production

Loan Variety Created a new program to reach the workforce in 2006 called the Advantage Program This was done through the Affinity Agreement with Fannie Mae using the cash window We continue to provide 2 programs, the First Loan program and the Advantage Program

Workforce Housing Workforce housing was not affordable in many areas including Boise and Northern Idaho. In 2009 we were approved by Freddie Mac as a seller/servicer and sold government loans to them through their cash window. In 2010 we were approved as a Ginnie Mae issuer 2010 was the last time we issued bonds

Loan Funding Evolution

Pricing by Loan Type* Loan ProductLoan RateKey Features HFA Preferred3.875%Lower Payment than FHA with current MIP Maximum income statewide $90K Preferred Risk Share4.50%No Mortgage Insurance –Income limit $90K Advantage FHA/VA/RD3.375%FICO > 620; $90K maximum income First Loan Program (FHA/VA/RD only) 3.375%Includes a ½% premium 1 st Time Homebuyer Requirement, income and sales price limits apply DPA second mortgages2% higher than note rate No 1 st Time Homebuyer Requirement Income limit $90K *Down Payment Assistance Premium Pricing available Homebuyer Tax Credit Programs (MCCs) available for Advantage program

Aligning Commitments with Secondary Market Sales Secondary Market Report Forward Sale Tracking Report “Trued Up” each day