1. Homeownership Loan Programs Lender Training
Welcome to Delaware State Housing Authority’s Homeownership Program training. This presentation is designed to provide lenders with the knowledge to identify borrowers who are eligible for DSHA financing, and help guide them through the process of choosing the right products for their needs. You will also learn how to navigate the DSHA process to quickly and efficiently obtain approvals and close loans on schedule.
Lakeview Loan Servicing provides multiple training opportunities for their processes each month. A calendar of those dates is available upon request.

2. DSHA is committed to following all aspects of the Fair Housing Act in our efforts to promote responsible homeownership and provide competitive and safe financing for same.
DSHA is committed to following all aspects of the Fair Housing Act in our efforts to promote responsible homeownership and provide competitive fixed rate financing for Delawareans.

3. Agenda Recent Program Enhancements Eligible Loan Products
Eligible Properties
Credit Overlays
Down payment & Closing Cost Assistance Products
Income, Sales price/Purchase Price Limits
DSHA Forms
Loan Flow
Pre-Closing Compliance File Delivery
Pipeline Tracking
Closed Loan Delivery
DSHA Contact List
During this presentation, the following topics will be covered. 3

4. Recent Program Enhancements
DSHA Program Changes Effective May 1, 2018
DSHA Launches its Preferred Plus product Suite
Preferred Plus 2% – 5% down payment assistance.
This program will eliminate the requirements to comply with TRID and RESPA thereby eliminating upfront and closing disclosures specifically for DSHA
The assistance amount and cost of recording will be required to be included on the primary mortgage closing disclosure
This will be in the form of a Soft Second Mortgage requiring a note and mortgage be completed at loan closing.
Income Limits of $97,900 and Loan Maximum of $417,000
Principal will be deferred until the following events, refinance, sale; transfer of title, property is no longer the borrower(s) primary residence (whichever comes first).
Closing Documents will still be delivered to Lakeview.
DSHA will continue to table fund the amounts at closing
Wire Request should be uploaded to Mitas.
Lenders should use the forms found on Lenders.destatehousing.com

5. Additional changes
DSHA is lowering the required FICO scores to 620 for FHA, VA, USDA and Conventional HFA Preferred (reduced MI) mortgages.
The rate lock time will be reduced from 75 to 60 days
Borrowers with FICO scores at 659 or below, will be required to attend HUD approved Housing Counseling.
DSHA will also be increasing Lender Compensation to 2.25%. Lenders will still be able to charge the optional .50% origination fee which could further increase compensation to 2.75%.

6. Additional changes continued
SMAL will be available to customers whom you have currently in your pipeline which have applied under the specific program expectations.

7. Eligible Loan Products
FHA
203(b); 203(b)(2); 234(c); 223(e); 203(ks) and other acceptable FHA products. VA
Originated and guaranteed in accordance with VA guidelines under 1810 and 181A.
USDA Rural Housing Service Loans
Originated and guaranteed in accordance with USDA guidelines.
Fannie Mae Conventional: HFA Preferred product(s) only
MI and No MI options available
DSHA allows most of the common loan products offered through FHA, V A and USDA. Our Conventional loan product is the HFA Preferred product. There are no loan level pricing adjustments for HFA Preferred. 7

8. FHA, VA, USDA Eligible Properties
Owner Occupied Residential Properties
Single Family Units and Town Houses
Agency Approved Condominiums for FHA, VA or USDA only
Please refer to Section 4.4 of the Seller’s Guide for specific guidelines
Planned Unit Developments (PUD’s)
1-4 Unit Properties (meeting DSHA purchase price limits and Agency guidelines for the loan product being originated)
Double Wide Manufactured Homes; FHA Only. All borrowers must have a minimum 660 FICO score.
Properties Not Allowed:
Rental homes
Co-ops
Investment properties
Recreational, vacation, or second homes
Please follow agency guidelines for eligible property types, noting the ineligible property types listed on this slide.

9. Credit Overlays Minimum FICO score of 620* Follow DTI maximum limit
Must have a DU finding of Approved/Eligible
*No manually underwriting is permitted for USDA, VA or Conventional loans.
Manual underwriting is permitted on FHA loans in cases where the loan receives an Approved/Eligible DU finding but requires a manual downgrade due to additional information not considered in the DU decision that affects the overall insurability or eligibility of the loan. In these instances, the loans will be subject to a minimum FICO score of 660 and a maximum DTI of 43%
DSHA has worked hard to create products that allow lenders to simply follow investor guidelines with just a few credit overlays. A minimum 620 FICO score is required for all programs. DU must return an “Approved/Eligible”. A minimum FICO score of 680 is required for the HFA Preferred No MI product with up to 95% LTV and 700 is required for 95.01% to 97% LTV.. No manual underwriting is permitted for Conventional loans. Remember you must follow investor guidelines if they are more restrictive than DSHA for FICO. Only owner occupied purchase transactions are eligible to use DSHA financing and the commercial use of the property is limited a total of 15 percent or less of the properties square footage.

10. Homeownership Counseling
HUD approved homeownership classes are required for all borrowers with a FICO score of 659 or lower, regardless of loan product used.
A list of HUD approved Housing Counseling Agencies is available on the main DSHA website:

11. FNMA HFA Preferred Credit Overlays
HFA Preferred with MI
Maximum LTV 95% - CLTV 105%
1-4 Unit Properties
Maximum LTV 97% - CLTV 105%
1 Unit Properties Only
Minimum 620 FICO Score
HFA Preferred with No MI
Minimum 680 FICO Score
Minimum 700 FICO Score
Condos & Rural Properties not eligible
All Loans must be underwritten through Fannie Mae DU with an Approved Eligible finding.
The only Conventional Loan product DSHA allows is the HFA Preferred program. HFA Preferred loans require a minimum 620 FICO score (minimum 680 FICO for loans with No MI). Lenders may underwrite these loans. Please refer to the Lakeview Lending Manual.

12. FNMA HFA Preferred Eligible Properties
Eligible Properties - Owner Occupied Residential Properties
Single Family Units and Town Houses
Planned Unit Developments (PUD’s)
Ineligible Properties
Condominiums on loans with No MI
Multiple Unit Properties
Vacation/Second Homes
Co-ops
Investment/Rental Units
Manufactured Homes
HFA Preferred Risk Share – No MI does not allow condominiums or multi-family units to be financed. Please refer to Lakeview’s Lenders Guide.

13. Homeownership Program without MCC Income Limits
County
Household Income Limit
New Castle, Kent & Sussex
$97,900
The Homeownership Program Income limit is as follows.
Income limits are subject to change.
Income Limits:
Mortgagor’s current total household income must not exceed the Program limits. 13

14. Homeownership Loans without MCC Loan Limits
County
Loan Limit
Kent, New Castle & Sussex
$417,000
For borrowers not requiring downpayment assistance or those who chose Advantage 4, the loan amount may not exceed the limits shown in this table based on county, household size and whether the property is located in a targeted census tract.
Loan limits are subject to change.
Income Limits:
Mortgagor’s loan amount must not exceed the program limits. 14

15. Homeownership Loans Using MCC Income Limits
County
Area
1 – 2 Person Households
3+ Person Households
New Castle
$83,200
$95,680
Targeted
$99,840
$116,480
Kent & Sussex
$74,900
$86,135
$89,880
$104,860
For borrowers using the SMAL down payment assistance program, household income may not exceed the limits shown in this table based on county, household size and whether the property is located in a targeted census tract.
Income limits in effect as of 5/15/17 and are subject to change.
Income Limits:
MCC Mortgagor’s household income must not exceed the program limits. 15

16. Homeownership Loans using MCC Purchase Price Limits
Property Location by County
Purchase Price Limit
1 Unit
2 Unit
3 Unit
4 Unit
New Castle County
$349,411
$447,283
$540,690
$671,938
Kent County
$248,098
$317,655
$383,962
$477,135
Sussex County
$291,176
$372,752
$450,552
$559,933
For borrowers using the tax credit program, the purchase price may not exceed the limits shown in this table based on county, household size and whether the property is located in a targeted census tract.
Purchase price limits in effect as of 5/15/17 and are subject to change.
Income Limits:
Mortgagor’s purchase price must not exceed the program limits. 16

17. DSHA Forms
All DSHA program specific forms are available on DSHA’s Lender Resource website at Lenders.DeStateHousing.com under the Homeownership Program Documents tab.
DSHA training presentations, important links & contacts, Mitas user tips, as well as a calendar of holidays and scheduled closings are also available on the Lenders Resource Website.
Please use the Lender Resource Center Website hosted by DSHA for access to all of our current forms by visiting Lenders.DeStateHousing.com. There you will also find training manuals, program announcements and a calendar of upcoming events and holiday closings. 17

18. Loan Flow
Lender pre-qualifies homebuyer per DSHA and Agency guidelines.
Lender registers loan(s) through DSHA’s Mitas Online Reservation System at
Lender uploads compliance file to DSHA for eligibility review at least 72 hours before closing.
Income
Homebuyer Status
Qualified Veteran (if applicable)
Purchase Price/Acquisition Cost
Once “Committed”, Lender closes loan and delivers closed purchase file to Lakeview for funding.
If using down payment assistance funds, lender submits the Wire Request Worksheet to request money with 24 hours notice . DSHA will wire funds to closing.
The process is easy and efficient. DSHA requests that lenders reserve loans and submit Compliance Review Packages at least 72 hours prior to closing in order for us to complete our review. Down payment assistance wire requests must be delivered to DSHA no less than 24 hours prior to closing. 18

19. Loan Flow (continued)
Registrations are valid for 60 days. Closed loans must be funded by the Master Servicer within the reservation period.
DSHA will transmit registrations to Lakeview Loan Servicing.
A one-time 15 or 30-day rate extension may be purchased prior to the expiration of the initial reservation period. The extension fee will be assessed at the time the extension is granted. Loans that are not purchased prior to the expiration of the reservation or extension period will be deemed expired and are subject to re-pricing.
Master Servicer will net any extension or other fees due at loan purchase.
Please review the Program Notice located on DSHA’s Lenders.DeStateHousing.com website for complete product details.
The Reservation Confirmation evidencing the terms of the Reservation should be printed at the time the loan Reservation is completed. DSHA electronically transmits reserved loan information to our Master Servicer. Reservations are valid for 75 days. Loans must close and be purchased by the Master Servicer within that 75 day timeframe. Lenders who need additional time to clear funding conditions may purchase one 15 or 30 day reservation extension. The cost of extensions are quoted daily and are available in Midas on the Register a New Loan page. Extensions cannot be purchased once a reservation has expired. Visit our Lender Resource Website at Lenders.DeStateHousing.com and go to the Homeownership Program Documents tab and review the Program Notice for more detailed information regarding the rules that govern our Homeownership Loan Program. 19

20. Pre-Closing Compliance File Delivery
The Compliance Package for each loan must be uploaded to DSHA at least 3 business days before closing.
Note: Incomplete loan files are not placed in the queue for compliance review until all outstanding conditions have been satisfied. Therefore, it is of no benefit to submit an incomplete package ahead of time.
Please use the Transmittal of Loan Documentation for Compliance, located on the Correspondent Lending Website.
The $75 compliance review fee will be netted from the purchase wire or billed to lender if the loan does not close under the DSHA product.
Lenders must create a loan reservation in Midas for each loan. The Reservation Confirmation form evidences the borrowers rate has been locked for 60 days. Please submit compliance review file at least 3 days prior to closing. Upload the complete Compliance Review package using the document images function in the Midas reservations Loan Detail view. Be sure to provide all of the items identified on the Compliance Review Transmittal form and placed in the proper stacking order. 20

21. Tracking Your Loan Pipeline in MITAS
Lenders should use MITAS to see status of files delivered to DSHA for Compliance Review for any Compliance Review conditions and DSHA staff assigned to file.
Lenders should cancel reservations of any "dead loans“ prior to reservation expiration to avoid non-cancellation penalty fees.
DSHA uses Midas to communicate with lenders as to the current status of loans in your pipeline. Please check Midas for any loans in a pending conditions posted status as they will require your attention in order to complete our compliance review. Items required to clear pending conditions can be uploaded through Midas using the “submit pending conditions” function found in the document images area of the loan record. Please submit all requested conditions at the same time to expedite your loan approvals. Files with unsatisfied conditions are not submitted to a loan officer for compliance review until all requested conditions have been received. Once all conditions are satisfied and the loan is approved, an approval letter is faxed to the Lender contact identified on the Compliance Review Transmittal Checklist.

22. Closed Loan Delivery
Closed loans must be delivered and purchased by Lakeview within the 60 day reservation period (75 or 90 days based on whether a 15 or 30 day extension was purchased).
If necessary, a lender may purchase a one-time 15 or 30 days rate extension. The request must be received prior to the original reservation expiration date. The cost of an extension may be viewed in Midas during normal business days between 9:00 AM and 5:30 PM on the New Loan Registration page by product type.
Closed loan packages for all reservations must be sent to Lakeview Loan Servicing for purchase. 22

23. DSHA Originations Contacts
Telephone:
Fax:
Lender Resource Website: Lenders.DeStateHousing.com
Housing Finance Manager
Lender Support
Karen Flowers
Office Manager
Initial Package Review-Pending Conditions
Pamela Spencer
Housing Mortgage Loan Officer 1
Compliance Review/
DSHA is here to help. If you have any specific questions, please use the Lenders.DeStateHousing.com website where you will find the answers to questions relating to our products. If you still need assistance, please reach out to our knowledgeable staff. We welcome the opportunity to present our products and services to your staff and to groups of realtors, homebuilders and buyers. Marketing materials are available upon request. 23

24. DSHA Post Closing Contacts
Telephone:
Fax:
Brian Rossello Housing Finance Manager
Post Closing
Enid Beltran
Mortgage Loan Officer II Post Closing
Carol Orzechowski Administrative Assistant II Document Control
Our post closing area is there to assist in the event any issues arise after your loan has been delivered for purchase. 24