1. Single Family Housing Programs Joyce Allen Deputy Administrator for Single Family Housing September 26, 2015

2. Single Family Housing Guaranteed Loans No down-payment required 30 year fixed interest rates Guaranteed Underwriting System Paperless Electronic Case Files Mostly purchase transactions, 1-2% refinance 85% first time homebuyers 10% new construction Low and moderate income households Rural areas = up to 90% of the USA

4. Single Close Construction to Permanent Loan Financing –Great deal for rural borrowers because newly built homes require less maintenance Won’t need new roof for 20 years Won’t need new furnace for up to 7 years New appliances in kitchen and laundry Everything is brand new Less maintenance means better cash flow for Native American borrowers Single Family Housing Guaranteed Loans l 4

5. Single Close Construction to Permanent Loan Financing –Lender gets loan guarantee before construction begins –Interest payments during the construction period can come from an interest reserve account, or from the borrower –Promotes new construction to replace aging rural housing infrastructure –Upcoming Handbook change will include manufactured homes as eligible Single Family Housing Guaranteed Loans 5

6. 6 Expanded Lender Eligibility Effective December 1, 2014 Small community banks under federal supervision will now be eligible to participate. In the past, many did not qualify because they were not approved by FHA, VA, Fannie Mae or Freddie Mac. Credit unions supervised by the NCUA will become eligible under the new regulation. These small lenders will enable the agency to reach more rural areas. In the case of credit unions, the agency will be able to reach special groups, for example, teacher credit unions, which benefit rural areas. Single Family Housing Guaranteed Loans

7. 7 Qualified Mortgage Proposed Rule published March 5, 2015 Adopts CFPB points and fees limitations Comments were to exempt HFA’s from QM requirements Final rule will be published within the next 60 days

8. 8 Streamlined Refinance Proposed rule published March 5, 2015 Rural Refinance Pilot to become permanent program feature No appraisal no credit report no debt ratio calculations Borrower must have paid their first mortgage on time over the past 12 months Single Family Housing Guaranteed Loans

9. 9 Streamlined Refinance Proposed rule published March 5, 2015 Rural Refinance Pilot to become permanent program feature No appraisal no credit report no debt ratio calculations Borrower must have paid their first mortgage on time over the past 12 months Single Family Housing Guaranteed Loans

11. Questions