My Community Mortgage & Flexible Mortgage Ppt

My Community Mortgage & Flexible Mortgage Training Offered through Affinity Lending Group

Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

MY COMMUNITY MORTGAGE ,[object Object],[object Object],[object Object],[object Object],06/06/09

Introduction ,[object Object],[object Object],[object Object],[object Object]

What is the MCM Program? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Targeted Borrowers Low to Moderate Income Borrowers with…

What is the current market doing? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Opportunity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Solution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Suite of “Community” Mortgage Options 06/06/09

PROGRAM TYPES ,[object Object],06/06/09

1 st Program Types ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Fully Indexed FIXED Programs Topic Description Program Types Conforming 10, 15, 20, 25, 30, 40 Year Fixed Interest Rate Interest Rate is Fixed and payment is Fully Amortized for the entire term of the loan. Term 10 – 40 Years Max LTV See Max LTV/CLTV page Max CLTV See Max LTV/CLTV page Maximum Loan Amount Fannie Mae Conforming Loan Limits Loan Purpose Purchase Rate & Term Refinance Occupancy Owner Occupied Minimum Fico Score AUS: No minimum FICO – Determined by DU (NO BK or FC in last 24 months) Manual: See Max LTV/CLTV page

Interest Only FIXED Programs Topic Description Program Types Conforming 30, 35, 40 Year Interest Only Fixed Programs Interest Rate Interest Rate is Fixed for the entire term of the loan. Qualifying Rate Qualify borrower at the Fully Amortized Rate (PITI) Term ,[object Object],[object Object],[object Object],Max LTV See next page Max CLTV See next page Maximum Loan Amount Fannie Mae Conforming Loan Limits Loan Purpose Purchase Rate & Term Refinance Occupancy Owner Occupied Minimum Fico Score Minimum 620 regardless of DU decision

ARM Programs Topic Description Program Types Conforming 5/1 (2/2/5 caps only), 7/1, 10/1 T-Bill ARM Conforming 5/1 (2/2/5 caps only), 7/1, 10/1 Libor ARM Interest Rate Initial Interest rate and monthly payment are low, but these may change during the life of the loan based on the fluctuation of the 1-year T-Bill and the LIBOR Indices, Margin and Caps. Qualifying Rate Qualify borrower at the Fully Indexed Fully Amortized Payment (PITI) Term T-Bill: 30 Year Term LIBOR: 30 – 40 Year Term Max LTV See Max LTV/CLTV page Max CLTV See Max LTV/CLTV Page Maximum Loan Amount Fannie Mae Conforming Loan Limits Loan Purpose Purchase Rate & Term Refinance Occupancy Owner Occupied Minimum Fico Score AUS: No minimum FICO – Determined by DU (NO BK or FC in last 24 months) Manual: See Max LTV/CLTV page

Max LTV / CLTV & Fico Program Units Purchase and Rate & Term Maximum LTV 1 / CLTV 2 Minimum Credit Score (Manual UW) Community 100 Plus 1 Unit 100 / 105% 620 97 / 105% 600 Community 97 Community 2 Units 2 Units 97 / 105% 620 Community 3-4 Units 3 3-4 Units 3 95 / 105% 3 660 3 Maximum LTV/CLTV may be reduced by 5% in areas experiencing Declining Markets/Values 1 Cooperatives: Maximum LTV is 90% 2 Only community 2nds and closed-end 2nds are allowed 3 3-4 Units: A DU Approve/Eligible certificate is required

ELIGIBILITY REQUIREMENTS ,[object Object],[object Object],06/06/09

Eligible Borrowers Topic Description Eligible Borrowers ,[object Object],[object Object],[object Object],Non Citizen Borrowers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Usage of ITINs ,[object Object],Non Occupant Co-Borrowers ,[object Object],Other ,[object Object]

Eligible Properties Topic Description Eligible Properties ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

INCOME REQUIREMENTS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],06/06/09

Income Requirement Topic Description Borrower Income Limit HUD AMI ,[object Object],[object Object],[object Object],[object Object],[object Object],Exception ,[object Object],[object Object],[object Object],[object Object],[object Object]

Other Income Requirements Topic Description Boarder Income (related or not related) MCM 97 & MCM 100 Only ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Rental Income (2-4 Units) FNMA Form 216 required ,[object Object],[object Object],[object Object],[object Object],Co-Borrower’s Income ,[object Object],Overtime & Part Time Income ,[object Object],[object Object],Section 8 Voucher income allowed

GENERAL GUIDELINES ,[object Object],[object Object],[object Object],[object Object],[object Object],06/06/09

MCM DU Guidelines Topic Description Advantages of using DU ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Reasons for using Manual UW ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Credit Score ,[object Object],[object Object],[object Object],Program Units Purchase and Rate & Term Maximum LTV 1 / CLTV 2 Minimum Credit Score (Manual UW) Community 100 Plus 1 Unit 100 / 105% 620 97 / 105% 600 Community 97 Community 2 Units 2 Units 97 / 105% 620 Community 3-4 Units 3 3-4 Units 3 95 / 105% 3 660 3 1 Cooperatives: Maximum LTV is 90% 2 Only community 2nds and closed-end 2nds are allowed 3 3-4 Units: A DU Approve/Eligible certificate is required

Credit History Borrowers who do not meet the minimum credit score requirement or lack credit history may be eligible if they meet the following requirements: NO Credit Score Manual UW ONLY! ,[object Object],[object Object],[object Object],[object Object],LESS than required credit score ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Other General Guidelines Topic DU Manual Maximum DTI As determined by DU ,[object Object],[object Object],[object Object],Reserves ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Homebuyer Education ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Prepayment Penalties ,[object Object]

Buydowns, Down Payment, Sources of Funds Topic Description Temporary Buydowns ,[object Object],[object Object],[object Object],[object Object],[object Object],Temporary B/D Qualifying Rate LTV > 95%: Qualify at Note Rate (DU or Manual) LTV =< 95%: Qualify at Note Rate PLUS 1% DU (Bought Down rate if Manual UW) Borrower Contribution ,[object Object],[object Object],[object Object],Interested Party Contribution ,[object Object],[object Object],Acceptable Sources of Funds for Down Payment, Closing Costs and Prepaid Items: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Subordinate Financing** ,[object Object],[object Object],[object Object],[object Object],[object Object]

Submitting an MCM loan through DU Topic Description Step 1 ,[object Object],Step 2 ,[object Object],Step 3 ,[object Object],Step 4 ,[object Object],Step 5 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Determining Income Eligibility with the Fannie Mae Property GeoCoder ,[object Object],[object Object],[object Object],[object Object],[object Object],06/06/09

Mortgage Insurance Reduced MI Rates – Use MI chart below regardless of DU recommendation. Reduced or Custom MI is not acceptable. See sample combination below: LTV RANGE MCM Minimum Coverage Standard Minimum Coverage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Borrower paid MI may be financed into loan up to max 100% CLTV (including financed MI). Borrower financed MI may be in whole or in part; check with MI company for availability of this option. Financed MI allowed on 1 Unit up to 100% LTV. Max CLTV > 95% including financed MI must be delivered using Special Feature Code 574. Example: Using standard MI or A- MI rates $200,000 loan; 100% LTV, 30 Yr Fixed, 6.50% int. rate Standard Rate MI Monthly Payment 20% MI $98 35% MI $160 Savings $62 / Month MI A- Rate, 619 score $162 $237 $75 / Month

Mortgage Insurance Reduced MI Rates – Use MI chart below regardless of DU recommendation. Reduced or Custom MI is not acceptable. See sample combination below: LTV RANGE MCM Minimum Coverage Standard Minimum Coverage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Borrower paid MI may be financed into loan up to max 100% CLTV (including financed MI). Borrower financed MI may be in whole or in part; check with MI company for availability of this option. Financed MI allowed on 1 Unit up to 100% LTV. Max CLTV > 95% including financed MI must be delivered using Special Feature Code 574.

Community Solutions Community Solutions 100 & Community Solutions 97 ,[object Object],[object Object],[object Object],06/06/09

Community Solutions Community Solutions was designed especially to add flexibilities to MyCommunityMortgage to help our country’s valued workers overcome obstacles to homeownership. Eligible Borrowers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Qualifying Ratio ,[object Object],[object Object],[object Object],Reserves ,[object Object],[object Object],Temporary Buydown Underwritten at bought-down rate 43% single qualifying ratio Other ,[object Object],[object Object],[object Object]

Community HomeChoice ,[object Object],[object Object],06/06/09

What is the Community HomeChoice Community HomeChoice is an option under MyCommunityMortgage designed to meet the mortgage needs of low-to-moderate income borrowers with disabilities or have a family member with a disability. Eligible Borrowers ,[object Object],[object Object],[object Object],Borrower Income Limit ,[object Object],[object Object],Other ,[object Object],[object Object],[object Object]

Highlights of the MCM Program MCM Program Highlights My Community 97 = 97/105% LTV/CLTV My Community 100 Plus = 100/105% LTV/CLTV Purchase and Rate & Term refinances ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],No minimum borrower contribution (1 unit)

MCM Highlights Cont’d… MCM Program Highlights No reserves required in most cases No minimum Fico score with a DU approval ,[object Object],[object Object],20, 25, 30 or 40-year Fixed Rate terms ,[object Object],[object Object],Temporary Buydowns allowed for Fixed Rate, 7/1 and 10/1 ARMS Available though DU or Manual Underwrite Secondary financing only allowed with an approved Community 2 nd Qualifying community 2nds can be treated as a gift rather than a subordinate lien (DU only) ,[object Object],[object Object],[object Object],[object Object]

FANNIE MAE FLEXIBLE 100 ,[object Object],[object Object],[object Object],[object Object],06/06/09

What is the Flexible Mortgage Program? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Eligibility Guidelines Topic Description Eligible Borrowers ,[object Object],[object Object],[object Object],Eligible Properties ,[object Object],[object Object],[object Object],Income Limits Not Applicable Sales Price Limits Not Applicable Target Area/Fannie Neighbors Not Applicable Occupancy Owner Occupied Only Purpose Purchase Rate & Term Interested Party Contribution Up to 3% of sales price (Premium pricing may be used to fund closing costs exceeding the minimum borrower contribution requirement) Prepayment Penalty Not Available

Underwriting Guidelines Topic Description Underwriting Options DU ONLY with Approve/Eligible, EA-I, EA-II, EA-III or Refer/Eligible Minimum Credit Score NO MINIMUM with a DU approval (IO loans require 620 Minimum) Maximum DTI As determined by DU Reserves As determined by DU Temporary Buydowns 2/1 and 1/1 Eligible Temporary Buydown Qualifying Rate ,[object Object],[object Object]

Down Payment Sources of Funds Topic Description Borrower Contribution ,[object Object],[object Object],[object Object],Acceptable Sources of Funds for Any Use ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Acceptable Sources of Funds for Down Payment & Closing Costs ,[object Object],[object Object],[object Object]

1 st Program Types ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Max LTV / CLTV Mortgage Insurance Topic Flex 97 Flex 100 Flex w/Sub Financing Maximum Loan Amount Fannie Mae Conforming loan limits apply ,[object Object],[object Object],97% / 105% 100% / 105% 95% / 105% ,[object Object],97% / 100% 100% / 100% 100% / 100% ,[object Object],Not Eligible Topic Flex 97 Flex 100 Flex w/Sub Borrower Paid 35% LTV > 80%: MI Coverage is 18% Lower Cost (Must receive a DU approve or refer recommendation) 18% 25%

Highlights of the Program Flexible Mortgage Program Highlights ,[object Object],[object Object],[object Object],Up to 105% CLTV when originated with an approved Community 2 nd Available to be underwritten through FNMA DU ,[object Object],[object Object],No Borrower Income restrictions No Homebuyer Education required Reserves determined by DU (usually 2 months) Purchase and Rate & Term refinances Owner-occupied primary residence only Available Terms: 15, 20, 25, 30 year Fixed

INTEREST RATE, FEES, MARKETING & SUPPORT ,[object Object],[object Object],[object Object],[object Object],[object Object],06/06/09

Interest Rate ,[object Object],[object Object],[object Object]

Points & Fees Topic Description Origination Points No Max Points – Negotiated between Broker/Borrower – Must not violate laws Discount Points ,[object Object],Premium Pricing MCM – Must be used to cover Closing Costs & Prepaid Items Flex - Allowed

[object Object],[object Object],06/06/09

My Community Mortgage & Flexible Mortgage Ppt

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