1. DC OPEN DOORS LENDER TRAINING

2. Welcome to DC Open Doors
Presentation Summary
Program Overview
Program Highlights
Loan Products
Down Payment Assistance
Program Facts
Program FAQs
Program Process
Reservation Process
Data Transmission
Pre-closing Review
Reservation Extensions
Direct Funding, Closing
Post-Closing
Process FAQs
Contact Information

3. Program Highlights
DC Open Doors allows participating lenders to offer affordable mortgages and down payment assistance to eligible homebuyers.
DC Open Doors has Continuous Funding for its mortgages AND down payment assistance!
Interest rates are posted daily at Facebook (DC Open Doors) and Twitter
U.S. Bank, National Association is the Master Servicer.
All participating lenders must:
Be approved by both U.S. Bank and DCHFA
Participate in all mandatory trainings
Lenders are encouraged to originate a minimum of $1 Million annually.

4. More Inclusive Affordable Homeownership!
Program Highlights
FHA and Conventional Loan Types
Open Doors can provide 1st trust alone or 1st trust and DPAL
Open to First Time and Repeat Homebuyers
Open to all D.C. Neighborhoods and Wards
Maximum Borrower Income of $132,360
No Household income test
$453,100 Maximum 1st Trust Loan Amount
No Sales Price Limitations
No Asset Test
U.S. Bank Overlays & Investor Guidelines Apply
More Inclusive Affordable Homeownership!

5. Freddie Mac Super Conforming
Max loan amount of
$679,650
No DPA
3% Down
Charter Minimum MI

6. DC Open Doors Loan Products
Government
Conventional
FHA
1st Mortgage up to 96.5% LTV
Standard FHA Loan
Standard MIP, upfront and monthly
FHA Plus
Subordinate loan of 3.5% of sales price
Standard FHA Loan, MIP, etc.
HFA Preferred
HFA Advantage
1st Mortgage up to 97% LTV
Charter minimum, MI Coverage
Refinances eligible
Homebuyer education required
Conventional w/DPAL
Subordinate loan of 3.0% of sales price

7. Down Payment Assistance
DC Open Doors
Down Payment Assistance
Available for FHA and Conventional Loans
Must be coupled with DC Open Doors 1st Trust
Amount is 3.0% or 3.5% of sales price
Structured as Subordinate Lien
Can be used in conjunction with other assistance programs (HPAP, EAHP, etc.)
Forgiven over 5 years, 20% per year
DPAL is 0% &
non-amortizing
(No Payments)
Interest rate on 1st Trust will be slightly higher when using DPAL
DPAL is repayable within first 5 years only upon sale, refinance or transfer of title

8. DC Open Doors – Program Facts
Interest Rates Not Credit Score Based
Rate Offered at Par (No Lender Credit, Points, etc.)
50% Maximum Debt to Income Ratio on conventional loans
45% DTI FHA loans
640 Minimum Credit Score
The maximum loan amount of $453,100 can only be exceeded by the UFMIP on an FHA loan

9. DC Open Doors – Program FACTS
Charter minimum MI coverage for conventional loans
– 18% at 97% LTV
Seller Contributions Allowable – Follow FHA/Fannie/Freddie Guidelines
Buyers can use their own funds plus DPAL for additional down payment or closing costs
DC Open Doors continues to offer 97% LTV on condominiums
Homebuyer education requirement can be completed online or face-to-face. Provider must meet standards defined by the National Industry Standards for Homeownership Education and Counseling = (follow FNMA/FHLMC guidelines)
No DCHFA Review/Requirement of the Home Inspection

10. DC Open Doors – Program FAQs
Why use HFA without DPAL?
The MI rates are lower on DC Open Doors than on standard conventional loans (HomeReady/Home Advantage)
97% LTV 95% LTV 90% LTV 85%LTV
Is there a maximum sales price for the program?
No, there is not a maximum sales price amount. However, the loan amount may not exceed $453,100 plus FHA MIP.
What income must be used to determine qualifications under the maximum income requirement?
All borrower income must be documented/verified, regardless of whether or not being used for qualifying purposes –however, NOT based upon household Maximum Income for all borrowers is $132,360
Do you allow a non-occupant co-borrower?
Yes, following Investor/Insurer/Servicer guidelines. Income is counted for eligibility
Is there a maximum origination charge the lender is permitted to collect?
No, however it must be reasonable and customary

11. DC Open Doors – Program FAQs
Can the borrower buy down the interest rate?
No, all of our loans are quoted with 0 points only (no lender credits, either)
If I have more than one purchaser, but only one is going to be on the loan, can the other person be on the deed?
Yes, non-borrowers are permitted to be on the title.
Can the DC Open Doors programs be used for a refinance?
Yes, the HFA Preferred is also a refinance program up to 97% LTV/CLTV
Can my borrower own any other property at the time of closing on a DC Open Doors loan?
No, the borrower may not have ownership interest in any other property at the time of closing.
What types of non-resident aliens are allowed under the program?
We follow FHA/FNMA/FHLMC/U.S. Bank guidelines

12. DC OPEN DOORS PROGRAM PROCESS

13. DC Open Doors Program Process
No separate application for DC Open Doors – the borrowers meet with Lender and start loan application
DCHFA will pay the cost to record the DPAL Deed of Trust, negating the need for a Lender Estimate/GFE or Closing Disclosure/HUD1
The only allowable fee on DPAL is the cost to record the DOT – NO TITLE INSURANCE ON DPAL
Lender reserves loan with DC Open Doors (via eHousingPlus website) at time of rate lock (must have ratified contract)
Reservation (Rate Lock) starts 70 Day reservation period (delivery & purchase) – recommended quote to borrower is 30 days

14. DC Open Doors Program Process
DC Open Doors does pre-closing review for all loans
DC Open Doors coordinates closing with Lender
Post-closing – eHousingPlus review & U.S. Bank review
DC Open Doors – always here to answer questions!

15. DC Open Doors – Reservation Process
Reservation = Official Program Rate Lock Date
Reservation date starts 70 Day period from lock to U.S. Bank purchase post-closing
Recommended quote of 30 days to borrower to allow sufficient time for post-closing
Reserve Loan Using Online Reservation System (eHousingPlus):
Input as much borrower/loan information into the reservation system as possible to reduce Pre-Closing Review processing time
Information must match what is submitted to DCHFA
Purchase Contracts MUST be Fully Ratified Prior to Reserving a Loan with DCHFA

16. DC Open Doors Data Transmission
DCHFA uses a secure FTP portal for receiving and sending all data, documents, etc.
FTP portal supports PDF, Word, Excel, etc.;
Lenders are responsible for transmitting all document submissions via FTP portal;
Documents are uploaded to DCHFA via secure FTP portal, with specific file naming:
Last Name, First Name – Submission or Document Title
DCHFA will transmit DPAL closing documents (commitment letters, loan documents, settlement instructions, etc.) via FTP portal;
DPAL docs are NOT sent to lender via eHousingPlus – the FTP is a separate website;
Each Lender will be provided with login credentials
FTP link:

17. DC Open Doors Data Transmission
Lenders must designate a system administrator to manage access to FTP portal
DCHFA will provide each individual lender with one set of log-in credentials for access. Credentials can be used by multiple parties (processors, underwriters, etc.)

18. DC Open Doors Pre-closing Review
DCHFA reviews all loans for compliance and provides a “Clear to Close” Notice.
DCHFA is reviewing for the following:
Loan Application Form 1003 for accuracy
Maximum Borrower Income of $132,360
Proof of Income (*see checklist)
Ratified Purchase Contract
Homebuyer Education (If Applicable)
DPAL (If Applicable)
DPA Loan Funding Request form & Wiring Instructions
Need 3 business days to process DPAL funding
*Always reference the Review Checklist to ensure your package is complete.

19. DC Open Doors Pre-Closing Review
Files reviewed on “first come, first served” basis;
We will receive an alert when a loan file has been uploaded by a lender. Files will be logged upon receipt;
Files missing documentation will be taken out of the review queue and placed in pending queue until the files are complete;
DCHFA commits to a timely pre-closing review time from receipt of a completed package;
File Approved – DC Open Doors Sends ‘Clear to Close’ Notice

20. DC Open Doors – Reservation Extensions
Lenders must request all reservation extensions in writing
All extensions will trigger Extension Fees
70 Day Base Rate Lock
30 Day Extension – 0.25% of Loan Amount Fee
100 Days Total
20 Day Extension – 0.50% of Loan Amount Fee
120 Days Total
Extension Fees are netted from ALL loans delivered after 70 Days
Avoid Extension Fees – Quote 30 Day Locks to Borrowers!

21. Direct Funding and Closing – DPAL only
DC Open Doors
Direct Funding and Closing – DPAL only
DCHFA prepares DPAL closing documents and uploads to FTP for lender to access
Lender downloads DPAL closing documents and sends to settlement company with 1st trust docs
DCHFA funds the DPAL directly to settlement company
DCHFA NEEDS 3 BUSINESS DAYS TO PROCESS FUNDING. PLEASE ENSURE DCHFA HAS SUFFICIENT TIME TO FUND THE DPAL
If a first trust loan contains deficiencies, or for any other reason cannot be purchased by U.S. Bank, the lender is responsible for reimbursing DCHFA for the DPAL
DCHFA will send a letter to the lender requesting reimbursement including wiring instructions and timing
Failure to reimburse DCHFA for a DPAL closed with a first trust loan that is not purchased by U.S. Bank could result in lender suspension.

22. DC Open Doors Post-Closing
Three Parallel Processes Start Immediately After Closing:
DC Open Doors & DPAL
Copies of Executed Note, Closing Disclosure & DOT for 1st Trust Loan
Original Borrower Recertification, Note & Recorded DOT mailed to DCHFA
eHousingPlus Compliance Review
Package is sent to eHP in Weston, FL
eHP will follow DCHFA’s Post-Closing Review File Checklist for review:
Copy of checklist – available on eHousingPlus
Copy of the Borrower Recertification
Final executed 1003
Copy of executed Closing Disclosure
Certified true copy of Executed DOT and Note for all financing
eHousingPlus compliance approval is required before U.S. Bank will purchase loan
U.S. Bank Purchase Review
Package is sent to U.S. Bank via docVelocity Imaging
Standard purchase file – please refer to US Bank for complete document list
Please ensure package is complete
Allow time for review and purchase – reservation timeline management is critical
eHousingPlus Approval & U.S. Bank Approval Required
Loan purchased!

23. DC Open Doors – Process Summary
Pre-Closing thru Closing
Borrower starts process
Meets with Lender
No separate application for DC Open Doors
DCHFA pays the cost to record the DPAL DOT, if applicable
No other fees allowed on DPAL
Lender Reserves Loan
Reservation = Rate Lock
Starts 70 Day Reservation Period
Need fully executed purchase contract
Can be before or after underwriting approval
Pre-Closing Review
Required for all loans, with or without DPAL
Submitted to DCHFA via FTP
Complete files reviewed
Funding, Closing
DCHFA funds DPALs directly at closing
DCHFA sends DPAL loan docs to Lender via FTP
3 business days needed to fund DPAL
Loan closes!

24. Post Closing Post Closing
Compliance Review file mailed to eHousingPlus
Purchase file uploaded to U.S. Bank
DPAL original docs sent to DCHFA
eHousingPlus communicates any deficiencies to Lender.
Approves loan
Notifies U.S. Bank
U.S. Bank communicates any deficiencies to Lender.
Purchases loan
70 Day Reservation Period
Extensions
Must be requested PRIOR to expiration
Must be requested in writing
Trigger Extension Fees

25. DC Open Doors – Process FAQs and Tips
Subordinate financing listed as Source of Down Payment/Closing Costs on 1003
All lender and DCHFA numbers required to reflect the same amounts
All files MUST have the MCC-001 Document whether or not there is an MCC with the loan or not!!!!!!!!!!!!
After an approval is issued, no changes to DU, 1003, U.S. Bank approvals, etc. can be made. If so, it must be reviewed again with revisions.
LENDERS DO NOT CANCEL DC OPEN DOORS LOANS IN SYSTEM
Please us at to cancel a loan

26. DC Open Doors – Process FAQs and Tips
Lender should submit loan files as close to the loan settlement date as possible, but not less than 5 business days before;
Please coordinate with your Secondary/Loan Ops Department about locks (timing and how-to)
No specific MI company is required on DC Open Doors’ loans
Refer to U.S. Bank for a list of acceptable MI Providers
HFA Preferred (FNMA) loans must be run through DU and coded as “HFA Preferred”
Must receive DU “Approve/Eligible” Findings
HFA Advantage (FHLMC) loans must be run through LP and coded as “HFA”.
Must receive Accept findings.

27. DC Open Doors Contact Information
Program Administration
Lisa Hensley, Single Family Director
Bill Milko, Single Family Deputy Director
Deborah Jones, Single Family Program Manager
Website and Social Media
Website: (All forms, presentations, etc. are in For Participating Lenders Only section)
(Follow us!)
Facebook: (Like our page!)

28. Additional Contacts U.S. Bank eHousingPlus U.S. Bank Guidelines:
Post-Closing Package:
Upload via docVelocity Imaging
Required Original Documents:
Mail to: U.S. Bank Home Mortgage, HFA Division Note Vault American Blvd. E, Suite 440, Bloomington, MN 55425
Help Desk: (800) or
eHousingPlus
Website:
Mailing Address: Universal Blvd., Suite 190, Weston, FL 33331
Phone: (954)
Address:

29. Common Conditions Correct Fees!!!!! on the LE & CD.
Property address mismatch on Flood Cert, Note and other Loan Documents Example: Unit #XXX, #XXX, Unit XXX – ALL MUST MATCH!!!
Demand Feature not checked on the Closing Disclosure.
List of Service Providers not provided.
Source of Funds on 1003 must reflect Subordinate Financing/DC Open Doors (or Secured Borrowed Funds) for loans with DPA.
AU Findings must reflect program type (HFA Preferred or HFA Advantage) so that MI requirements are correct and findings are correct.
NO title insurance/fees other than cost to record! Let your title company know up front.
1st Trust Closing Disclosure must reflect TOTAL DPAL amount and the cost to record needs to be reflected as paid by DCHFA

30. LETS START WITH THE BASICS
DC’s MCCs
LETS START WITH THE BASICS
The Mortgage Credit Certificate (“MCC”) is NOT a down payment assistance program or a mortgage loan
The MCC program provides a federal income tax credit similar to the federal first-time homebuyer tax credit
The DC MCC is a federal income tax credit that may
1) Reduce the amount of federal income tax the borrower is required to pay
2) Provide more available income to pay the monthly mortgage payment
The Credit Amount for the DC MCC is 20% and there is NO annual cap on the amount!

31. DC’s MCCs What are the benefits?
EXAMPLE 1
$280,000 Loan Amount
4.50% Interest Rate
1st Year’s Interest = $12,507
X 20% Tax Credit = $2,501 Benefit
$46,150.02
$208 Monthly Benefit
Borrower is still able to take a deduction for the remaining 80% of interest paid for that year.
Don’t wait for tax time to reap the benefits!
Adjust dependents on your W-4 Form so that you increase your net take home pay!
Example is for illustrative purposes only. Please consult a Tax Advisor.

32. DC’s MCCs What are the benefits?
EXAMPLE 2
$400,000 Loan Amount
4.50% Interest Rate
1st Year’s Interest = $17,868
X 20% Tax Credit = $3,573 Benefit
$65,928.60
$297 Monthly Benefit
Borrower is still able to take a deduction for the remaining 80% of interest paid for that year.
Don’t wait for tax time to reap the benefits!
Adjust dependents on your W-4 Form so that you increase your net take home pay!
Example is for illustrative purposes only. Please consult a Tax Advisor.

33. DC’s MCCs DC’s MCC Loan Options
Option #1- DC’s MCC may be used as a STAND ALONE product with a Conventional, VA or FHA 30 Year Fixed Rate Mortgage or an FHA Adjustable Rate Mortgage
May not be used with bond loans OR
Option #2- DC’s MCC may be combined with a DC Open Doors Loan. If this option is utilized, the lender must follow the stricter of the program requirements

34. DC’s mccs what are the requirements?
Guidelines differ from the DC Open Doors Loan Programs:
Borrowers must be first time homebuyers
Must not have had an ownership interest in a principle residence within the most recent 3 year period
Exception for residences purchased in a Targeted Area (see chart)
Exception for Veteran’s utilizing a one-time exception
Maximum income is based upon HOUSEHOLD income
Household income is the income of all members of the household, even if not taking an ownership interest in the home (excluding full-time student dependents)
Household Income Limits are based upon the household size
Acquisition costs (sales price) may not exceed Program Limits
Single Family residences, only (no 2-4 unit properties)
Can be provided in conjunction with a DC Open Doors loan program or without a DC Open Doors loan program

35. DC’s Mccs
Costs
DCHFA charges $450 as an MCC Issuance Fee when done in conjunction with a DC Open Doors Loan Program or VA Loan
DCHFA charges $1,500 as an MCC Issuance Fee when the MCC is issued without a DC Open Doors Loan Program
The lender is permitted to charge an additional $450 MCC Processing Fee
DO NOT FORGET THE EHOUSING PLUS FEE!!!!! ($275 for a stand alone MCC. $450 for an MCC with Open Doors)

36. Dc’s mccs Income Limit: Sales Price Limits
Non-targeted Area Family of 2 or less
Non-targeted Area Family of 3 or more
Targeted Area Family of 2 or less
Targeted Area Family of 3 or more
$132,360
$154,420
Sales Price Limits
Single-Family Unit
Non-targeted
$585,713
Targeted
$715,872

37. DC’s Mccs what are the targeted areas?
Target Areas in DC
District of Columbia, Census Tract 34
District of Columbia, Census Tract 88.04
District of Columbia, Census Tract 47.01
District of Columbia, Census Tract 89.03
District of Columbia, Census Tract 47.02
District of Columbia, Census Tract 89.04
District of Columbia, Census Tract 64
District of Columbia, Census Tract 92.04
District of Columbia, Census Tract 74.01
District of Columbia, Census Tract 95.01
District of Columbia, Census Tract 74.03
District of Columbia, Census Tract 96.01
District of Columbia, Census Tract 74.04
District of Columbia, Census Tract 96.02
District of Columbia, Census Tract 74.06
District of Columbia, Census Tract 97
District of Columbia, Census Tract 74.07
District of Columbia, Census Tract 98.02
District of Columbia, Census Tract 74.08
District of Columbia, Census Tract 98.03
District of Columbia, Census Tract 75.02
District of Columbia, Census Tract 98.10
District of Columbia, Census Tract 75.03
District of Columbia, Census Tract 98.11
District of Columbia, Census Tract 75.04
District of Columbia, Census Tract 99.04
District of Columbia, Census Tract 76.05
District of Columbia, Census Tract 99.06
District of Columbia, Census Tract 77.08
District of Columbia, Census Tract 99.07
District of Columbia, Census Tract 78.08
District of Columbia, Census Tract 104
District of Columbia, Census Tract 78.09
District of Columbia, Census Tract 109

38. HPAP

39. Community Based Organizations
To apply for assistance or receive more information, please contact one of the following CBOs:
FACILITY NAME
ADDRESS
PHONE NUMBER
AARP Legal Counsel for the Elderly
601 E Street, NW Washington, DC 20049
(202)
Central American Resource Center
1460 Columbia Road, NW, #C1 Washington, DC 20009
(202)
Greater Washington Urban League
th Street, NW Washington, DC 20009
(202)
Housing Counseling Services, Inc.
2410 – 17th Street, NW Washington, DC 20009
(202)
Latino Economic Development Corporation
641 S Street, NW Washington, DC 20001
(202)
Lydia’s House, Inc.
4101 Martin Luther King Jr. Ave., SW Washington, DC 20032
(202)
Manna, Inc.
828 Evarts St NE Washington, DC 20018
(202)
Marshall Heights Community Development Organization
3939 Benning Road, NE Washington, DC 20019
(202)
University Legal Services, Inc.
1800 Martin Luther King Jr. Ave., SE Washington, DC 20020
(202)
220 “I” Street, NE # 130 Washington, DC 20002
(202)

40. Eligibility and Underwriting Guidelines
HPAP Loan
EAHP LOAN
Affordable Purchase Estimate at Eligibility Assumptions
HPAP is a Second Trust Mortgage for acquisition financing up to $80,000 and closing cost assistance up to $4,000. The amount of assistance is determined by household income and size. (Refer to the HPAP Assistance Table) HPAP loan limit is $424,100, and EAHP maximum purchase cannot exceed $636,150. EAHP down payment assistance $10,000 and up to $1,500 matching grant based on savings.
Housing cost to income ratio is %
Total debt to income ratio %
Interest rate assumed on first mortgage 5.5%
203K Streamline % / 43%
Underwriting for HPAP approval
HPAP Loan Approval
Max. Housing cost to income is 40%
Max. Housing cost to income for applicant with less than 1 year rental history is 31%
Housing costs include:
Monthly First Trust payment
Projected taxes (even if deferred)
Condo/ Coop/HOA Fees
Homeowners insurance
Mortgage Insurance
Max. Total debt to income ratio is 44%
Max. debt/income taking into account compensating factors cannot exceed 46%
Compensating factors will be determined by the HPAP Administrator, may include: strong credit history; savings; employment history; housing payment history;
First Trust Loan Relationship
Conventional, FHA and VA full Documentation fully amortizing fixed rate or 5/1 ARM loans
DU and LP approvals encouraged, however HPAP loans will be manually underwritten, and DU/LP recommendation does not guarantee an approval.
Condo/Coop fees and other fees
HPAP funds cannot pay condo or coop fees. Maximum of 2 months toward escrow for capital contribution. Condo and Coop Fees are counted in monthly debt ratio.
See Non-Allowable Closing Fee Sheet for fees HPAP can pay on behalf of borrower.
Credit Score
600 middle score with tri-merge credit report. Credit Report less than 90 days old at closing.

41. Income/Employment Requirement
Credit Report
Minimum three trade lines, plus last 12 months of rent history with 0 x 30 rating
One account with minimum high credit of $1,500 with 24 months reporting.
Borrower must have 2 other accounts established, can be open or closed with 12 months reporting.
HPAP will accept non-traditional and alternative credit accounts. Minimum three accounts, such as utility, cell phone bills, auto insurance with at least one year of documented payment history.
Authorized user accounts are not counted in minimum trade line requirement.
Accounts with collections and charge-offs are not considered trade lines. Borrowers with paid collections and charge offs with no reestablished trade lines will not be considered for non –traditional trade lines to establish new pay history.
Income/Employment Requirement
Minimum income of $25,000 for borrowers
Two years of continued employment; self-employed borrowers must demonstrate minimum 2 years in business.
Fixed income (SSI, etc.) borrowers must show 3 years continuance of income from all sources to count income.
Untaxed income will be grossed-up 25%
Student loans
All deferred loan payments must be included in the borrower’s debt ratio.
Loan Amount and CLTV
Lenders are required to maximize the first trust loan. The minimum loan to value financed by a first trust lender must be 65% of the sales price. In most cases, average LTV range is %. HPAP underwriter has final say on minimum first mortgage LTV, and will be determined on a case by case basis. HPAP’s acquisition financing cannot exceed 100% LTV and total financing cannot exceed the appraised value by no more than 5%.
HPAP staff determines the final HPAP assistance amount and CLTV.
Loan Types
Not Allowed
Stated Loans, Interest Only, 2/28, 3/27, Option ARMs,
Negative Amortized loans, No document loans
Rate Buy Downs and Arms
Rate buy down subsidies cannot be paid with HPAP closing assistance. The borrower, lender or third party can pay the buy down subsidy on behalf of the borrower.
Rate buy downs must be disclosed by the lender in the rate lock disclosure form.
ARM - HPAP will qualify applicants based on the first adjustment cap rate if client demonstrates stable employment and potential for earning increases.
HPAP Timelines
6 days to receive NOE
5 days for underwriting approval. Contracts must be approved prior to acceptance of lenders package. HPAP closing requires 3 days for preparing closing documents and to request funds.

42. QUESTIONS?