PROGRAM:
OHIO HOUSING FINANCE AGENCY MBS PROGRAM
PRODUCTS:
30yr Fixed Rate
Conforming Loan Product
Reduced Interest Rate
BUSINESS TYPE:
SERVICING:
BOND
RELEASED
1)
PRODUCT
BENEFITS:
INVESTOR CODE:
638
REVISED:
06/01/2015
The program options outlined in this product profile are part of the Ohio Housing Finance
Agency (OHFA) Market Rate Program. The first mortgage must be an OHFA Loan.


Borrowers who are first-time homebuyers may combine the OHFA Market Rate
Program with the OHFA Mortgage Credit Certificate (MCC) Program.
o When combining an OHFA first mortgage with the MCC program, the loan
must be reserved on OHFA’s Lender Online reservation system under the
MCC Plus program.
o When combining an OHFA first mortgage with the MCC program, the MCC
fee is $250 (versus $500 with the standard MCC).
o MCC loans will be subject to recapture. A Recapture Notice will be required
to be provided to the borrower.
o Tax credit of 40% with MCC is combined with the OHFA first mortgage.
Borrower cannot claim more than $2,000 in a calendar year.
o MCC is restricted to 1-unit properties only
MCC cannot be combined with the OHFA Next Home Program.
New OHFA commitment, purchase package and second mortgage forms will be available
on OHFA’s Lender Online Reservation system beginning on February 16, 2015. The new
forms will be required for all commitment packages received on or after February 16,
2015. Forms will now auto-fill with any information possible that was entered at the time
of reservation. Fields not auto-filled, either because the information was not entered at
the time of reservation or one or more answers could be correct, can now be completed
on the form before they are printed for signature. In addition, if information entered at the
time of reservation was incorrect or has changed, it is possible to make the corrections
needed on the forms. A copy of the completed forms should be printed and retained for
the Huntington loan file.
Grant money to apply toward closing costs and prepaids is now available to borrowers
using the Market Rate Program and an OHFA Second Mortgage (either the DAP 2.5%
second or the Grant for Grads second mortgage). The OHFA Closing Cost Assistance
(CCA) Grant will result in a higher interest rate on the first mortgage depending on
whether the OHFA CCA Grant is 1% or 2% of the loan amount. The OHFA CCA Grant
can be combined with the OHFA 2.5% DAP or the OHFA Grant for Grads 2 nd Mortgage.
See the OHFA Market Rate Program Rate Sheet.
 The OHFA CCA grant CANNOT be applied toward down payment. It can only
be used toward closing costs.
 Borrowers who are first-time homebuyers can combine the OHFA Market Rate
Program with the OHFA Mortgage Credit Certificate (MCC) Program. When
combining an OHFA first mortgage with the MCC program, the loan must be reserved
on OHFA’s Lender Online reservation system under the MCC Plus program
 If there are excess funds remaining at closing, up to $500 can be returned to the
borrower for funds they have paid out of pocket prior to closing, such as earnest
money, application fee, hazard insurance, inspection fees, etc. Additional funds
remaining over and above the $500 used to reimburse the borrower for fees they
NOT INTENDED FOR PUBLIC DISTRIBUTION
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PROGRAM:
OHIO HOUSING FINANCE AGENCY MBS BOND
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


have paid must be applied toward the principal balance of the first mortgage.
Huntington will be reimbursed for the OHFA CCA Grant when the loan is purchased
by U.S. Bank.
Reserving the OHFA CCA Grant on OHFA’s Lender Online Website (see screen
prints linked here): Enter the amount of the OHFA CCA Grant in the subordinate
finance field in the First Mortgage Section
o When reserving the loan on OHFA’s Lender Online website, select the
appropriate program from the dropdown under the Reservation tab.
o Enter the amount of the CCA Grant in the subordinate finance field in the
First Mortgage Section.
Entering the OHFA CCA Grant in Unifi (see screen prints linked here):
o Reserve the OHFA Bond loan as normal, entering the .50% origination fee
and the appropriate interest rate based on the amount of the CCA Grant (1%
or 2%) on the alternate pricing screen. DO NOT ENTER ANY DISCOUNT
OR PREMIUM PRICING IN THE ALTERNATE PRICING SCREEN.
o Enter the amount of the OHFA CCA Grant on the Streamline GFE
Screen/Fee Disbursement tab as a net credit on HUD line 222. The
estimated closing cost field should indicate “No”.
o Enter the amount of the OHFA CCA Grant on the 1003 Details of Transaction
/ Other Credits Screen
Reduced rate product for first-time homebuyer purchasing property in the state of Ohio.
A first-time homebuyer is also defined as a person who has not had an ownership interest
in a principal residence for the last three (3) years. All borrowers executing the Mortgage
must meet the first-time buyer requirement. Examples of interests which do not constitute
a present ownership interest (and thus would not result in a potential purchaser failing to
meet the first-time buyer requirement:
 A remainder interest
 A lease without an option to purchase
 A mere expectancy to inherit an interest in a principal residence
 Interest that a purchase of a residence acquires on the execution of a purchase
contract
 Interest in other than a principal residence during the previous three years.
o Interest in another residence may allow the borrower to be eligible under
OHFA guidelines but may cause the borrower to be ineligible under GSE
guidelines, for example Conventional MCM (OHFA’s HFA Preferred Product)
borrower cannot own other real estate.
o In those instances where the borrower who owns other property is eligible
under both OHFA and GSE guidelines, such as when a borrower owns
investment property, the income from the rental property must be included in
the calculation of total household income. Seventy-five percent (75%) of the
rental income must be included in the total household income for determining
eligibility. The rental income calculation must also be included for borrowers
purchasing a 2-4 unit residence where the borrower will reside in one of the
units.
The first-time homebuyer requirement does not have to be met if the property being
purchase is in a target area.
NOTE: Processors are responsible for completion of all OHFA documents
required for closing. Specific instructions are to be provided to the closer
regarding the additional bond documents to be signed at closing, in
addition to any ATC conditions required by OHFA. All OHFA documents,
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PROGRAM:
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including the OHFA Grant for Grads 2nd note and mortgage, if applicable, are to
be returned to Huntington in the closing package.
Homebuyer Education: All borrowers participating in OHFA’s first-time homebuyer
programs, assisted or unassisted, (including non-first-time homebuyers) are required to
complete homebuyer education through one of the following:
 OHFA Streamline HBE: Process- Online Test and Budget, followed by a
telephone counseling session with an approved counseling agency. The
assigned housing counseling agency will create and upload the Certificate of
HBE Completion after the counseling session.
 An 8 hour credit/homebuyer education course completed with a HUD approved
counseling agency. The HomeBuyer Education Certificate must be issued within
the 12 period prior to application date. The $100 OHFA Administration Fee will
not apply when borrowers have completed homebuyer education through a HUDapproved counseling agency.
HBE Timeline:
 Within 15 days after the initial loan reservation, the Certificate of HBE Completion
must be uploaded into Lender Online. Both the lender and the housing counselor
have access to view the uploaded certificate in Lender Online.
 The borrower is required to complete the Homebuyer Education online Test and
Budget within 5 days of the initial reservation date. The housing counseling
agency will contact the borrower within 48 hours and will complete the telephone
counseling session within an additional 72 hours.
2.5% Grant (Assisted Program): Conventional, FHA, or VA financing that offers a down
payment assistance program in the amount of 2.5% of the purchase price. The interest
rate for the Assisted Program is 50 basis points higher (assisted rate) than the nonassisted program (without the second mortgage). The 2.5% Grant (DAG) will be a soft
second mortgage which will have a five (5) year term with 0% interest and no payment.
The second mortgage will be forgiven over a five (5) year period. A prorated repayment
of the remaining balance of the assistance will be required if the home is refinanced or
sold within five (5) years. Huntington will fund the 2.5% Grant 2nd mortgage at closing.
Grant for Grads (G4G) Program: The program offers a financial incentive to recent
college graduates toward the purchase of a home in the state of Ohio. The program
provides downpayment assistance of 2.5% of the sales price in the form of a forgivable
second mortgage and the unassisted bond program rate. Huntington will fund the Grant
for Grads 2nd mortgage at closing. Requirements for the program are as follows:
 Must be a first time homebuyer (no ownership interest in a primary residence for
the last 3 years).
 Must be a resident of the state of Ohio
 Borrowers with a GED are eligible for the Grants for Grads program.
 Borrowers must have proof of graduation (diploma) from an accredited college or
university any where in the United States within the last 24 months with at least
one of the following degrees:
o Associates
o Bachelors
o Masters
o Doctoral
 Must purchase a 1-unit primary residence (2-4 units not eligible for Grant for
Grads)
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The Grants for Grads program CANNOT be used with the Ohio Heroes Program
or the 2.5% DPA Program.
If the borrower moves out of the state of Ohio within the five year period, a prorata portion of the second mortgage must be repaid base on the number of years
the borrower maintained the property as a primary residence. If the borrower
moves to another residence in Ohio within the first five (5) years, the lien will be
released. If the borrower refinances within the first five (5) years, OHFA will resubordinate the Grant for Grads second mortgage.
Income Limits for OHFA Market Rate and Grant for Grads Programs:
 The OHFA Market Rate and Grant for Grads Programs will now have the same
income limits. There will no longer be a distinction between target and non-target
income limits for income eligibility purposes. However, loans must still be
identified as being in a target or non-target area when reserving funds on OHFA’s
Lender Portal.
 When using the Mortgage Credit Certificate (MCC) program in conjunction with
the OHFA Market Rate Program, the MCC income limits will apply.
Please see the Subordinate Financing Section of the profile for instructions for entering
the down payment assistance into Unifi.
OHFA’s Ohio Heroes Program is a program for military personnel, veterans, police, fire,
EMT, healthcare workers and teachers. The program offers a reduced interest rate that
is 25 basis points below the regular OHFA Bond rate. At least one family member must
be a qualifying member of the groups identified below with annualized gross family or
household income at or below OHFA guidelines for the county in which the property is
located:
 Active Military and Veterans – Qualified Active Duty Service personnel include
Armed Services or Reserve Forces. Reserve Forces must have at least 90 days
of Active Duty service, excluding boot camp. Qualified veterans include military
members honorably discharged from any branch of the U.S. Armed Forces.
Military identification and DD214 are required to validate credentials. Veterans
are not required to be first time homebuyers.
 Firemen/Emergency Medical Technician-Paramedic – Sworn full-time paid
member of a fire department whose regular duties include fire suppression or
prevention, emergency medical response, hazardous materials. Full-time is
considered paid service for a minimum of 1,200 hours per year. Firemen or EMT
certification card and letter from payroll per OHFA form required to validate
credentials. Fire fighter or an EMT certification card and pay stubs are required
to validate credentials.
 Healthcare Workers – Certified accredited or licensed health care workers who
are employed fulltime (2080 hours per year) at a medical office, urgent care
facility, nursing home, assisted living home, rehabilitation facility, hospice or a
hospital. License, or certification, and paystub required to validate credentials.
 Police Officers – Commissioned as a law enforcement officer by a federal, state,
county or municipal or township government; or a public or private college or
university, and must be employed full-time (2080 hours per year). Law
enforcement officer includes a sworn officer responsible for crime prevention and
detection, law enforcement or response to terrorism, and must be sworn to
uphold, and make arrests for violations of federal, state, county, municipal or
township law. Employer must certify commission status with the general power
of arrest. Copy of Commission, Peace Officer Certification and paystub required
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PROGRAM:
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
to validate credentials.
Teachers- Employed full-time (40 hours per week per school year) by an
accredited or state recognized public school, private school, private school, or
federal, state, county, municipal educational agency as a state-certified
classroom teacher, guidance counselor or administrator/principal in grades K-12,
or a full time academic instructor at a post-secondary educational linstitution.
Full-time instructors must teach a minimum of 12 credit hours per academic term.
License and paystub required to validate credentials.
NOTE: Employees working as volunteers are not eligible for the Heroes
program.
MyMoneyPath: Beginning on May 15, 2011, OHFA, in partnership with The Ohio State
University, will offer a financial health checkup for all first-time buyers that are registering
to complete OHFA’s Streamline Homebuyer Education Program. Participation in the
financial health check-up is free and lenders are asked to encourage the borrowers to
participate. Highlights of MyMoneyPath are as follows:
 Borrowers will complete a short on-line financial health check-up online which will
take approximately 10 minutes.
 The health check-up will provide the homebuyer with a snapshot of their financial
health in five (5) key areas (saving, borrowing, budgeting, housing, and
retirement).
 The program will provide the borrower with a customized printout which will show
what areas are favorable and what areas need improvement. The borrower will
receive a $25 Amazon gift card for completing the health check-up.
 If the homebuyer agrees to participate in the Pilot Program by allowing
OHFA/OSU to use their data confidentially to evaluate the program and improve
the financial tools they will have the opportunity to receive additional free financial
planning resources both before and after purchase and will receive a second
Amazon gift card of $25.
The information obtained in the MyMoneyPath financial health checkup will not be used
in evaluating the borrower's credit application and will not be provided to the lender. This
program is used strictly to provide homebuyers a free financial resource to improve their
financial health for the future.
OHFA Home Repair IDA Program:
Through a grant obtained by the Economic and Community Development Institute (ECDI)
through the Ohio Housing Trust Fund, the OHFA Home Repair IDA Program is for
borrowers who have recently purchased a home in Franklin, Delaware, Madison,
Pickaway, Fairfield, or Licking Counties using the OHFA bond program. The program
provides the homebuyer with an opportunity to obtain matching funds to establish an
emergency fund to cover the costs of unexpected home repairs. The attached flyer
outlines the requirements for the program. Borrowers who are interested in learning more
about the program should contact ECDI at 614-732-0571. NOTE: THESE ARE NOT
FUNDS THAT ARE PART OF THE FIRST MORTGAGE TRANSACTION
See US Bank Lender Manual for detailed program requirements. The origination
guidelines linked here will assist you with OHFA eligibility requirements.
When entering the loan in Unifi, you will need to select “Bond” as the business type of the
Loan Data Tab under Registration in order to be able to select the Ohio Programs. Once
the bond program is selected and you save the loan data tab, you will be asked to
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PROGRAM:
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complete the MI screen, when that is saved and fees are calculated, the Alternate Pricing
Requested Terms window will pop up requesting the origination fee, discount fee and
rate. Enter 0.50% origination for all OHFA loans. No discounts or premium pricing are
permitted on the program.
 Rates for the OHFA programs will be published daily. The rate entered in Unifi
should be the rate from the daily rate sheet for the respective program on the
date the loan is registered in Unifi. The rate should not be locked until funds are
reserved on OHFA’s Lender Online (LOL) portal. Any loan cancelled during the
rate lock period may not be re-reserved for 60 days from the original reservation
date, including any extension granted by OHFA.
 Delivery requirements outlined below:
o Loans may only be reserved between 9:30AM and 8:00PM Monday
through Friday, excluding holidays. Loans should not be reserved
through OHFA’s Lender Online Portal until they can meet the timeline
below.
o Within 15 days of the OHFA Lender OnLine reservation date, the
Homebuyer Education Cert must be uploaded to OHFA or loan will be
canceled.
o Within 25 days of the OHFA Lender OnLine reservation date, an online
Underwriting Certification form must be completed to confirm that the
loan has been underwritten in accordance with Fannie Mae, FHA or VA
guidelines, as appropriate, and commitment package must be uploaded
to OHFA for commitment approval.
o Within 30 days of the OHFA Lender OnLine reservation date, the loan
must be closed.
o Within 45 days of the OHFA Lender OnLine reservation date the closing
package must be to OHFA/US Bank. This will take place after the loan
closes and will be handled by Post Closing/Shipping area.
o Within 70 days of the OHFA Lender OnLine reservation date, the loan
must be purchased by US Bank.
o One 30 day extension may be granted. The extension request must be
made in writing and an extension fee of .375% will be charged to the
lender. The .375% extension fee will be deducted from the proceeds
when the loan is purchased by US Bank. If the loan does not close or
the loan does not get purchased by US Bank, the Lender will be billed for
the extension fee. Effective January 5, 2015, contact OHFA voice mail
box at 844-520-5525 regarding changes and/or extensions in a loan
reservation. Leave a message and your call will be returned promptly.
Contact George K Baum Associates at 303-391-5599 to request
extensions prior to January 5, 2015.
 If the OHFA interest rate on the date of reservation has changed from the rate at
which the loan was registered in Unifi, a queue must be sent to the SMPM
mailbox to request an interest rate change. A copy of the OHFA reservation
should be included with the request.
 Once the rate has been changed in Unifi, the rate should be locked, a change in
circumstance completed, and the loan must be re-disclosed to the borrower.
 A copy of the revised GFE and TIL must be included in the loan file.
Check the OHFA website for current interest rates.
NOTE: RESERVATIONS FOR THE MBS MARKET RATE PROGRAM MAY BE MADE
ON OHFA’S LENDER ONLINE RESERVATION SYSTEM BETWEEN THE HOURS OF
9:30AM TO 8:00PM MONDAY THROUGH FRIDAY ONLY.
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OHIO HOUSING FINANCE AGENCY MBS BOND
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2)
GENERAL
DESCRIPTION:
30Yr CONV Fixed Rate (51165)
30Yr CONV Fixed Rate Ohio Heroes Program (51167) (cannot be used w/Grants for Grads)
30Yr FHA Fixed Rate (54165)
30Yr FHA Fixed Rate Ohio Heroes Program (54167) – cannot be used w/Grants for Grads
30Yr FHA Fixed Rate w/Section 8 (54166) Section 8 Subsidy PHA Agent Agreement
and Section 8 PHA Contact– cannot be used w/Grants for Grads
30Yr VA Fixed Rate (55165)
30Yr VA Fixed Rate Ohio Heroes Program (55167) – cannot be used w/Grants for Grads
USDA FINANCING DISCONTINUED UNTIL FURTHER NOTICE
3)
TERM:
First Mortgage:
Minimum: 360
Maximum: 360
4)
MINIMUM LOAN
AMOUNT:
None
5)
MAXIMUM LOAN
AMOUNT:
Varies by county and by target vs. non-target areas. See sales price limits attached.
6)
MAXIMUM LTV:
:
Max
LTV
Max CLTV
97%2
100%4,5
6802 DU/ Manual U/W
not Permitted
HFA Preferred (1 Unit & Condos –
Manufactured Homes not permitted)
95%3
100%4,5
6408 DU / Manual U/W
not Permitted
HFA Preferred 2 - 4 Unit
95
100%4,5
Loan Type
CONV1
HFA Preferred (1-Unit, excluding
Minimum FICO
Condos- Manufacture Homes not
Permitted)
6408 DU / Manual U/W
Not permitted





FHA6
96.5%8
See 7 below
VA
100%
No
Maximum7
6408 DU/Manual
660 for Manuf Hsg –
manual
U/W not permitted
6408 DU/Manual
660 for Manuf Hsg –
manual U/W not
permitted
1 All loans originated using conventional financing require the borrower(s) to attend
homebuyer counseling.
2 All loans with 97% must have a minimum FICO score of 680 for all borrowers.
3 Conventional loans do not permit manual underwriting.
4 Subordinate financing must be an approved community second. Any programs
not on the attached list must be approved by US Bank, the Master Servicer,
prior to reserving the loan with OHFA.
5 MI companies may have different restrictions on CLTV limits permitted by Fannie
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
Mae or the Housing Finance Agency. Therefore, check with your Mortgage Insurance
provider
6 The new FHA loan limits do not supersede OHFA purchase price limits.
7 CLTV –
FHA Financing: loans utilizing a second mortgage from a state, county or local
government may be used for the borrower’s entire cash investment. However,
the sum of all liens (CLTV) cannot exceed 100% of the cost to acquire the
property. The cost to acquire is the sales price plus allowable borrower paid
closing, discount points, repair and rehab costs, and prepaid expenses. NOTE:
the cost to acquire may exceed the appraised value of the property.
o For second mortgage programs provided by a non-profit organization not
considered an instrumentality of government, or private individuals, the CLTV
cannot exceed 96.5%. Follow FHA guidelines.
VA Financing: VA does not have a maximum CLTV limit. However, payments
on any subordinate financing must be included in the debt ratios which cannot
exceed the respective guidelines and cannot exceed the borrower’s repayment
ability. Follow VA guidelines as appropriate.
Itemization of fees on VA loans: Effective for all VA loans closed on or after May
1, 2015, VA will require in the itemization of the following:
o Lender and seller credits in the 200 series on the HUD-1. If the credit is
displayed as a lump sum, an accurate itemization of the individual credits,
including a clear indication of the source is required.
o Lenders are required to provide an itemized breakdown of the charge on HUD
line 801.
o Lenders are required to provide an itemized breakdown of HUD line 802. The
breakdown of HUD line 802 should only consist of amounts for broker
compensation and discount points or premium pricing. In the event there is
only one credit or charge (points) on line 802, the lender must still show the
single fee in an itemized breakdown.
o A credit showing the Adjusted Origination Charge on line 803 cannot be used
to pay or offset any unallowable fees including fees in line 801.
o The itemizations can be done as an addendum or attachment to the HUD-1.
These addendums or attachments must be signed by the Veteran.
8 OHFA will require a minimum FICO of 640 for all borrowers on the loan (680
for conventional loans with 97% financing) with or without down payment
assistance, regardless of the type of financing used. Borrowers with no credit
score due to lack credit must meet the non-traditional credit guidelines for the
type of financing be used. See Underwriting Section for parameters for nontraditional credit. Note that for manually underwritten conventional loans the
minimum FICO will still be 660 for 1-2 unit properties and 680 for 3-4 unit
properties.
o Note: Loans on manufactured homes will require a
minimum FICO of 660. No manual underwriting will be
permitted.
For any down payment assistance programs other than the OHFA Grant for Grads
second mortgage or the 2.5% Down Payment Assistance Program, prior approval must
be obtained from OHFA, regardless of the type of financing used.
Single Premium Financed Mortgage Insurance (MI) is permitted on LTV < 97%, however
total LTV including MI may not exceed 97%. Loans with financed MI must add SFC 281.
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7)
OHIO HOUSING FINANCE AGENCY MBS BOND
PROGRAM
PROPERTY TYPES:
Acreage limitations:
 No more than 2 acres inside a municipal corporation (unless additional
acreage is required by local health or safety code)
 No more than 5 acres outside a municipal corporation
Owner Occupied 1-4 family units (Note: The Grant for Grads 2nd Mortgage is
restricted to 1-unit properties only. )
(Note: Loans w/97% financing are restricted to 1unit properties)
Condominiums – (Follow condo appropriate condo approval guidelines for the type of
financing used. Note: Max LTV w/conventional financing is 95%)
PUDs
Manufactured Homes (permitted on FHA, VA, ONLY – requires a minimum FICO of
660. No manual underwriting permitted for manufactured housing.) – use the link
above to see requirements on manufactured home.
 In addition to the requirements on manufactured homes in the link above, a
Verification Letter from the Institute for Building Technology and Safety is
required. The request for verification letter can be obtained by completing
the IBTS Label Request Form online at http://www.ibts.org/label_req.shtml, or
completing the attached form and mailing it to the address on the form.
o The cost is $50 for standard processing time or $75 for urgent or
rush response. This cost can be passed on to the borrower.
o The verification letter will be received within 2-5 days on the standard
request.
o A copy of the Verification Letter must be included in the Purchase
package.
o The security instrument must include the manufacturer’s name,
model year, model number or name, serial number, and the length
and width of the unit.
 When using FHA financing, follow HUD’s Manufactured Housing Policy
Guidance outlined in Mortgagee Letter 2009-16
All loan files must contain the current flood determination.
Loan files on properties located in a flood zone must contain the following:
 Notice to Borrower in Special Flood Hazard Area.
 Proof of adequate flood coverage
 Proof of adequate hazard insurance coverage to determine the value of
insurable improvements is required, if property is located in a flood zone.
See Section 25 for Flood Insurance Coverage requirements.
8)
MARGIN:
N/A
9)
INDEX:
N/A
10)
INTEREST RATE
ADJUSTMENT CAP:
N/A
SEE APPLICABLE RATE ON RESERVATION SCREEN OF LENDER ON LINE
SYSTEM @ https://lol.ohiohome.org/Bin/Display.exe/ShowSection
11)
BUYDOWN:
Not Permitted
12)
CONVERSION:
N/A
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PROGRAM:
13)
OHIO HOUSING FINANCE AGENCY MBS BOND
PROGRAM
ASSUMABLE:
Conventional Financing – Not Assumable.
Government Financing – Yes: Assuming party must qualify subject to all federal tax
rules and regulations including, but not limited to income and sales price limits.
UNDERWRITING
14)
DOCUMENTATION
TYPES:
Full Doc – must be full doc only if using MGIC for mortgage insurance
Alt Doc
Income must be verified and all household income must be used to determine
eligibility for the Mortgage Revenue Bond Product. OHFA will require the last 2 pay
stubs and 3 years signed and dated tax returns, regardless of documentation required by
DU. (See Income Limits for Market Rate and Grant for Grads Programs)
Worksheet for the calculation of total household income for program eligibility:
 Effective April 7, 2014, the Combined Income Tab on the Compliance Income
Worksheet must be completed and is required to be signed by the processor and
included with the commitment submission package. To access the Income
Worksheet, click “Open in Excel”.
US Bank Documentation Requirements: Effective for all loans delivered to US Bank
on or after October 14, 2013, the following requirements must be met:
 Documentation Requirements: the Final 1003, 1008 and AUS findings must reflect
identical information for Income, Housing Expense and Monthly Debt.
 Address Requirements: The property address on the note must match the property
address on the appraisal exactly. The address on the note and appraisal should
reflect the physical location of the property. Any corrections to the appraisal as a
result of address discrepancies must be submitted to UCDP and a successful SSR
report obtained.
 Accurate PITI: PITI includes the borrower’s monthly payment amounts to cover
principal, interest, taxes, insurance as well as both HOA fees and mortgage
insurance premiums, as applicable. HOA dues should be obtained from the title
work; however, if HOA dues are not listed in the title work, then the appraisal must be
used as the source document. If the title work indicates the property is a PUD but no
information on HOA fees is included and no appraisal is required, a copy of the
borrower’s current HOA statement must be used to determine the HOA monthly fee
amount.
 Accurate Tax and Title Information: All title work must reflect accurate subject
property and borrower information. Property tax amounts, as documented by the title
commitment or tax certification must be used for determining the subject property’s
annual tax unless the State requirements provide for a different amount. For new
construction, the taxes for qualifying should be based upon the full value of the
property as indicated by the appraisal or purchase agreement, whichever is less.
 Accurate Insurance Information: All evidence of insurance must reflect the
borrower’s name, subject property address and loss payee clause. Any changes to
any existing policy must have an effective date on or before the actual
closing/disbursement date. Existing policies with a term ending within 30 days from
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15)
QUALIFYING
RATIOS
the date of closing/disbursement date must be documented with updated evidence of
insurance for the current term in addition to evidence of insurance for the new term.
The premium for the new term will be used for underwriting purposes.
Corrective TIL: A Corrective TIL disclosure will be required on any loan when the
APR has increased by more than 0.125% when compared to the APR on the most
recently disclosed TIL. Loans that are closed before the three (3) (re-disclosure
delivered in person) or six (6) (re-disclosure delivered by mail) precise business day
waiting period has expired will not be purchased.
HUD-1 Settlement Statement: The loan terms on the HUD-1 must match the
“Summary of Your Loan on the latest issued GFE.
Effective with loans reserved with OHFA on or after September 12, 2014, all loans will
have the following Maximum DTI ratio, regardless of DU findings:
 Max DTI of 50% on FHA, Conv 95%, VA with a minimum FICO of 660
 Max DTI of 45% on FHA, Conv 95%, VA with a FICO between 640 and 659
 Max DTI of 45% on Conv > 95%. Must have a minimum FICO of 680
Loans manually underwritten have the following ratio requirements:
 FHA – 31% / 43%
 VA – 41% single qualifying ratio
NOTE: No manual underwriting permitted on conventional loans. Must
have DU Recommendation of Approve/Eligible.
NOTE: IF LOAN IS CONVENTIONAL FINANCING, THE MI COMPANY MAY HAVE A
MAX DTI REGARDLESS OF AUS RECOMMENDATION. CHECK SPECIFIC MI
COMPANY GUIDELINES.
16)
UNDERWRITING
GUIDELINES:
For all loans submitted for approval or purchase on February 16, 2014 or after,
Federal tax returns for years 2011, 2012 and 2013 must be included. See US Bank
Lender Manual.
All loans must meet the Ability to Repay (ATR) rules established by the Consumer Financial
Protection Bureau (CFPB). The ATR Rule requires that a reasonable, good-faith determination
be made in determining that the consumer has a reasonable ability to repay the loan. Generally,
ATR must consider the current or reasonably expected income or assets the borrower will
rely on to repay the loan; the current employment status, the monthly mortgage payment
for the subject loan; the monthly payment on any simultaneous loans secured by the
same property; the monthly payments for property taxes and insurance that the consumer
is required to buy; debts, alimony & child support obligations; monthly debt-to-income
ratio or residual income, calculated in accordance with the ATR final rule; and credit
history
Loans are MLP eligible with proper lending authority for DU Approve/Eligible.
Loans with the DU findings other than approve/eligible must be manually
underwritten by HMG Corporate Underwritten and meet the ratio, reserve and credit
score requirements outlined in the profile.
 All borrowers on the loan must have a 640 FICO score, regardless of the type of
financing being used. Borrower’s with no credit score due to lack of credit may
be manually underwritten following the non-traditional credit guidelines for the
type of financing being used.
- NOTE: If the property type is manufactured housing, the minimum
FICO score required is 660 and no manual underwriting is permitted.
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Drive Report
 Acceptable DRIVE report required with a passing Drive score of >701. Condition
resolution is required for Drive scores of 0-700.
NOTE: All loans using down payment assistance must be underwritten by
Corporate Underwriting.
Conventional Financing - must meet OHFA income and acquisition limits apply. All
conventional loans must be underwritten through DU and receive an
Approved/Eligible finding. CONV loans under the OHFA Bond Program must be
run through DU Backdoor by the Underwriting Help Desk as a “HFA Preferred”.
Select the HFA preferred option from the drop down on the Community Lending Screen.
The Community Lending Screen is located in the Quick 1003 screen under “Additional
Data” screen. Loans that are manually underwritten must adhere to the guidelines
specified within the product profile.
HFA Preferred:
 If the following recommendation or messaging appears in the “Risk/Eligibility section
of the DU findings “this case is ineligible for delivery as a MCM loan because it does
not meet the specific minimum credit standard for MCM”, the loans are not eligible
for delivery.
 With the implementation of the DU 9.2 Update that went into effect the week-end of
December 13, which now allows 97% financing if at least one borrower on the loan is
a first time homebuyer on the standard conventional or My Community Mortgage
Products, housing finance agency conventional loans are now receiving an
“Approve/Ineligible” finding on the HFA Preferred program if at least one borrower is
not a first time buyer. Lenders have been instructed to ignore the “Ineligible” finding
as long as the only reason for the finding is the first-time buyer requirement. DU will
not be updated in April 2015 to accommodate the oversight on the HFA programs.
 Non-Occupant Co-Borrowers or Non-Occupant Co-Signers are not permitted on
conventional loans.
 Median Income Limits: “This case is ineligible because the case qualified income
exceeds the community lending income limits.” On loans that receive the preceding
messaging, Lenders are required to change the income limit adjustment factor in DU
to the Housing Authorities income limit, re-submit the case through DU to remove this
message. If the messaging is removed the loan is eligible. If the messaging
remains, the loan is ineligible.
 Seller/Interested Third Party Contributions: limited to Fannie Mae’s standard LTV
limits:
- LTVs ≥ 90.01% - maximum interested party contribution is 3%
- LTVs 75.01% to 90.00% - maximum interested party contribution is 6%
- LTVs < 75% - maximum interested party contribution is 9%.
 If at least one borrower on the loan application has traditional credit with at least one
credit score disclosed on the merged credit report, the loan may be underwritten with
DU. The following additional underwriting guidelines will apply:
- The loan must be secured by a one-unit principal residence
- The transaction must be a purchase money or limited cash-out refinance.
- Income used to qualify must not come from self-employment
- Borrowers with traditional credit histories must contribute more than 50% of
the combined income used to qualify.
- All borrowers must occupy the property.
- The representative credit score for the borrower with traditional credit is the
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representative credit score for the transaction.
If every borrower on the loan application lacks at least one credit score, DU will return
an Out of Scope recommendation. These loans must be manually underwritten.
These loans must be underwritten by HMB Corporate Underwriting. See the nontraditional guidelines below.
Closing Costs/Prepaids can be paid with gifts or grants from the following sources:
- Unsecured loans from nonprofit organizations or governmental agencies;
(NOTE: cannot be seller funded programs such as AmeriDream,
Nehemiah or other nonprofits that require the Seller to make a
“donation” to the nonprofit)
- Secured loans from nonprofit organizations or government agencies, if they
are part of a Community Second
- Various funds from an employer
Sources of Down Payment:
- For a 1-unit property the borrower contribution is based on LTV and FICO
score when using MGIC for mortgage insurance.
- For a 2-4 unit property the borrower is required to make a 5% investment with
3% required from his/her own funds.
- The borrower may pool the funds with a gift from a relative, domestic partner
or fiancé that lived with the borrower in the last 12 months, as long as both
individuals occupy the secured property as their principal residence.
- If the LTV is 80% or less the full down payment can come from a gift from a
relative or gift or grant funds from a church, municipality, public agency, nonprofit or employer.
- The full down payment can come from rent credit, disaster relief grant, loan
from a state or federal agency or a nonprofit agency’s matching funds
contributed to an individual development account (provided the agency does
not require repayment of the funds). (The funds cannot come from a
nonprofit where the seller is required to pay a “donation” to the
nonprofit.)
Cash on Hand can be used for down payment and closing costs when purchasing a
1-unit residence.
- (i) Borrower customarily uses cash for expenses and usage is consistent with
previous payment practices;
- (ii) Borrower’s credit report indicates limited or no use of credit
- (iii) Borrower has no depository relationship
- (iv) Borrower must provide a signed statement that discloses the source of
funds and that funds have not been borrowed
- (v) Borrower must open a deposit account with a financial institution at the
time of application or not less than 30 days before closing.
Loans that are manually underwritten can no collections or judgments (other than
medical) filed within the past 24 months. Any/all judgments must be satisfied.
Collection accounts (including medical) in excess of $250 per individual account or
$1,000 in the aggregate must be paid in full.
Non-traditional credit will require manual underwriting by HMG Corporate
Underwriting utilizing the guidelines outlined in this product profile.
- See criteria below for non-traditional credit histories.
Non-traditional Credit (for loans that do not have a credit score) - Manual
Underwriting Criteria - All loans that require manual underwriting must be
underwritten by HMG Corporate Underwriting. Full documentation must be
provided.
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Written credit explanations are required for any derogatory credit history with proof
that the borrower has experienced extenuating circumstances. Supporting
documentation is required.
Manually underwritten loans are restricted to the following guidelines:
A maximum LTV of 95% with a minimum borrower contribution of 3% from their own
funds when conventional financing is used. The addition 2% can come from flexible
sources. For FHA, VA and USDA financing, the entire 5% can come from flexible
sources acceptable to the respective agency.
Ratios not exceeding a housing ratio of 30% and total debt ratio of 38%
1-unit properties only for borrower with no FICO score
Reserves equal to 2 months PITI
Homebuyer Education is required regardless of the type of financing
Loans with a FICO score that receive an “Out of Scope” finding or an “Ineligible”
finding, may be manually underwritten, however the minimum FICO score on those
loans are as follows:
1-unit property – 660 FICO*
2-4 unit property – 680 FICO
IRS Form 4506-T
A 4506-T must be signed at or prior to closing. NOTE: A copy of the most recent three
years’ Federal Income Tax Return for all borrowers must be included in the loan file. The
returns must be signed and dated by the borrower(s). If a borrower is self-employed, or
income from the tax return is used to qualify the borrower, the IRS tax transcript or an IRS
certified copy of the return (with all schedules) must be used to validate the income.
Therefore, the 4506-T (or 4506, as appropriate) must be executed early in the process.
Additional IRS verifications such as W2 or 1099 transmittals should be included if they
are required to validate income.
IRS has implemented a new reject code for individuals have been a victim of, or a
potential victim, of identity theft. When a request for tax transcripts from the IRS receives
the response “Due to limitations, the IRS is unable to process this request”, the lender will
be unable to obtain the tax transcripts. The taxpayer be contacted by mail and referred to
the Identity Protection Security Unit, and may be able to receive the requested tax
transcripts, but IRS will not mail the tax transcripts to third parties.
In this instance, in lieu of tax transcripts, one of the following options may be used to
document the file:
 For salaried borrowers, when available, utilized The Work Number’s Instant
Access Database which will show employment and income records provided by
the employer’s payroll system; or order W-2 or 1099 transcripts when the only
income used to qualified is salaried W-2 or 1099 reported income.
 Request the most recent 1040s from the borrower(s) with proof of filing
(cancelled check for tax payment, or bank statement showing deposit of refund).
 Request the borrower obtain the transcripts from the IRS
If a borrower is not required to file an income tax return, the file must include a signed and
notarized affidavit as to why the borrower was not required to file an income tax return.
The lender must include a written explanation of any discrepancies between the IRS
transcript income and the income documentation supplied to qualify the borrower. The
documentation is required in the closed loan package in addition to the documents
provided for any other purpose.
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Verbal Verification of Employment
 Base and Commission income: A Verbal VOEs are required for all borrowers within
10 calendar days prior to closing.
 Self Employed Income: Verification of the business existence must be obtained
within 30 calendar days prior to closing from a third party source such as a CPA,
regulatory agency or licensing bureau. The source used to verify the business
(internet, phone book) must be documented in the credit file for all income sources,
along with the full name and title of the eligible contact person providing the
information.
 UW/MLC’s are required to add ATC condition 710 to all applicable loan files,
confirming this documentation will be obtained.
*NOTE: Trailing Secondary Wage Earner Income is no longer considered as
an eligible income source for credit qualifying; however, total household income
is still required to determine program eligibility.
TIP Income may be used to qualify in the following instances:
 Must be verified the borrower received tip income for the last two years and
 Employer indicates the tip income will, in all probability, continue.
 An average of the past two year’s tip income is considered in qualifying the borrower.
Age of Credit Documents
 Effective with new loans registered on or after June 18, 2013, the maximum age of
credit documents is 120 days

“Credit documents” include credit reports and employment, income, asset and
appraisal documentation
 The time frame covered by the maximum age of credit documents goes from the date
of the document to the date the note is signed.
Verification of Stocks, Bond, Mutual Funds, and Retirement Accounts
Due to recent volatility, determining the value of investments and retirement accounts as
assets for reserves has been modified. Use the following calculations when determining
the value of an asset being used for reserves:
 Stocks, bonds, and mutual funds: 70% of the value may be used as reserves
(reduced from 100%)
 Retirement accounts: 60% of the vested value may be used as reserves (reduced
from 70%)
 Stock options and non-vested restricted stock are not longer eligible for use as
reserves
Power of Attorney: A Power of Attorney (POA) for the buyer will be acceptable as long
as it is specific to the transaction and acceptable to the title company closing the loan.
The power of attorney must be reviewed by OHFA prior to closing. OHFA will also allow
a POA for the seller. The POA for the seller does not need to be reviewed by OHFA prior
to closing.
Bankruptcy:
Follow appropriate agency guidelines for previous bankruptcy filing.
Foreclosure:
Follow appropriate agency guidelines for previous foreclosure or deed-in-lieu of
foreclosure.
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Government Financing (FHA / VA): Follow standard FHA/VA Guidelines, as
appropriate including manual underwriting for non-traditional credit; however OHFA
income and acquisition limits apply.
 Amendatory/Escape clauses are required on all FHA/VA purchase loans. If the
amendatory or escape clause verbiage is included in the purchase agreement, a
separate document is not required. If the amendatory or escape clause verbiage is
not in the purchase agreement, a separate document signed and dated by all parties
prior to closing will be required. The document cannot be signed and dated at
closing. For loans reserved on December 5, 2014 and later, the loan will be
unacceptable for purchase if the amendatory or escape clause is not provided or the
date on the document is inaccurate.
NOTE: When the seller is Fannie Mae, Freddie Mac, federal state or local
government agencies and mortgagees disposing of REO assets, this requirement
will not apply.
 Non-occupant co-borrowers or co-signers are permitted with FHA financing; however,
the non-occupant co-borrower or co-signer cannot take title to the property. The nonoccupant co-borrower/co-signer does not sign the mortgage or the OHFA documents.
FHA Loans/Property Flipping: If a property is re-sold 90 days or fewer following the
date of acquisition by the seller, the property is not eligible for a mortgage insured by
FHA, unless the seller is included in one of the exception categories. FHA defines the
o seller’s date of acquisition as the date of settlement on the seller’s purchase
of the property, and
o resale date as the execution of the sales contract by the buyer intending to
finance the property with an FHA-insured loan.
 An exception to the 90-days or fewer rule applies in the following circumstances:
o the property was acquired by an employer or a relocation agency in
connection with the relocation of an employee;
o the property is a resale by HUD under its Real Estate Owned (REO)
program;
o the property is for sale by other United States Government agencies of single
family properties pursuant to programs operated by these agencies;
o the property is for sale by a nonprofit agency approved to purchase HUDowned single family properties at a discount with resale restrictions;
o the property was acquired by the seller by inheritance
o the property is being sold by a state or federally-chartered financial institution
or government sponsored enterprise (GSE, i.e. Fannie or Freddie)
o the property is being sold by a local or state government agency; or
o the property is located within a Presidentially declared disaster area.
Any subsequent resales of the properties described above must meet the 90-day
threshold in order for the mortgage to be eligible as security for FHA insurance
 Effective with any new applications taken on or after March 22, 2010, the master
servicer will only allow FHA loans where the resale price is less than 20% above the
seller’s acquisition cost. Loans where the resale price is greater than 20% are not
eligible. The following criteria as detailed in the FHA waiver also apply will:
- Verify that Seller is in title as indicated on the Appraisal and no apparent
family or business relationship exists between the parties to the loan or sales
agreement;
- LLCs, corporations or trusts as sellers must have been established and
operated in accordance with applicable State and Federal law. Lenders must
document the validity of the seller. Business licenses, State Department of
Corporations status, and Attorney Opinions are examples of acceptable
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documentation.
No pattern of previous flipping exist such a multiple transfers of title within a
12 month timeframe as indicated on the chain of title on the Appraisal. The
appraisal is required to show a 3 year history of ownership.
- Document that property was marketed openly and fairly through an MLS, an
auction, For Sale by Owner or developer. Note: sales contracts which have
been assigned to the current buyer are not allowed.
The increase in value must be supported by the Appraiser with supporting comments
and documentation included as follows:
- Appraiser must indicate the seller completed legitimate renovation, repair and
rehabilitation work on the subject property to substantiate the increase in
value.
- If the work was not performed, appraiser must provide appropriate
explanation of the increase in value since prior title transfer. This should
include an analysis of the market difference occurring between distressed
sales and typical arms-length market sales.
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Section 8 Loans: The subsidy (HAP) payment can be underwritten in one of three ways:
 Add the HAP to the borrower’s income (DU Eligible): Calculate total income as a
combination of (1) tax-exempt HAP (grossed up by 25%) and (2) the borrower’s
income from employment, using underwriting ratios specific to FHA guidelines.
 Deduct the HAP from the borrower’s PITI (requires a manual underwrite): The HAP
is applied directly to the PITI and the housing debt to income ratio is calculated on the
“net housing obligation” of the borrower. When this option is used, it must be coupled
with (1) ratios and 28/36 for all Section 8 mortgages using PITI reduction, regardless
of the mortgage product chosen by the borrower, and (2) direct deposit of the monthly
HAP payment into a dedicated, limited access account established by the lender
and/or mortgage servicer.
 Two Mortgage Option (purchase money first and a simultaneous second lien (DU
Eligible) must be offered by the subsidy provider: The borrower is qualified for the
first mortgage (PITI) using only earned income, and the HAP is used to pay the full
P&I for a second mortgage. The underwriting structure is appropriate if the term of
the second mortgage is not longer than the maximum term allowable by HUD for the
Section 8 payment (15 years for mortgages with financing of 20 years or more and 10
years for financing less than 20 years). Initially, the borrower does not make
payments toward the second mortgage from their earned income (DU should reflect
$0 for the P&I payment on the second mortgage) and therefore will not experience
payment shock when the HAP payment is terminated, since termination will not occur
before the second lien is paid off unless the borrower’s income increases above the
maximum allowed under the Section 8 program. Typically, private mortgage
insurance is not applicable under this option, and there may be a faster equity buildup.
Condominiums
Complete the Condominium / PUD Project Review Form to determine project
eligibility for mortgages secured by Condominium or PUD property types. The
completed form, as well as any conditions or requirements, must be included in the
Credit File.
OHFA Requirements:
Income:
If a unit is rented or, is intended to be rented, to third-party tenants for a 2 unit- property,
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75% of the lesser of the actual or projected rents for the rental unit shall be added as
qualifying income.
If a unit is rented or, is intended to be rented, to third-party tenants for a 3-unit or 4-unit
property, the underwriting ratio described above shall be calculated by using 65% of the
lesser of the actual or projected rents for the rental unit to increase the borrower’s gross
income.
Neither the actual nor projected rents referenced above should be included in the
determination of the borrower’s eligible income.
Self-Employed Borrowers:
OHFA has changed the method of determining a self-employed borrower’s income. For
self-employed borrowers, calculate the annual income by averaging the reported net
income for the previous two years and year-to-date. The year-to-date earnings will be
taken from current, i.e. most recent quarter, profit and loss statement. Depreciation
and/or depletion shown on IRS Schedule C must be added back in as income when
determining net income. See example.
Borrowers enrolled in a Debt Management Program (DMP) must have completed the
program at least 12 months prior to filing a mortgage application and credit must be reestablished.
Community Second Mortgage Guidelines:
 When an approved Second Mortgage Program is used, follow FHA, VA, RD and
Fannie Mae underwriting guidelines when applying the second mortgage amount as
down payment assistance.
 Include the 2nd mortgage obligation in the calculation of the borrowers total housing
expense ratio.
 FHA – the first and second mortgage must not exceed the total cost to acquire the
property. Total Acquisition Cost = Sales Price + borrower paid closing costs +
prepaid items.
 CONV – the 1st and 2nd mortgage must not exceed 100% CLTV. NOTE: Mortgage
Insurers may require lower CLTV.
17)
APPRAISAL
REQUIREMENTS:
The borrower(s) has (have) a right to receive copies of all written property valuations sent
to them free of charge, regardless of whether credit is extended, denied, incomplete.
US Bank will not purchase loans that were appraised by appraisers/companies that are
listed on their US Bank Exclusionary List. To access the report, click on the Exclusionary
Report link, then click on “US Bank Lending Manuals” located within the gray arrow in the
upper left corner; click continue. When the program guide opens, click the “+” beside the
Underwriting section to expand it, then click on “Exclusionary Report”.
In order to facilitate the electronic collection of appraisal report data for Fannie Mae and
Freddie Mac loans, the Uniform Collateral data Portal (UCDP) was developed at the
direction of the Federal Housing Finance Agency (FHFA). All appraisals successfully
uploaded to the UCDP receive a Submission Summary Report (SSR) and each GSE
submission. With the implementation of the required use of this portal, US Bank Home
Mortgage (USBHM) will require the following:
 For all conventional loans submitted for purchase by USBMH with applications dated
on or after December 1, 2011, where the appraisal was NOT ordered through the
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USBHM Appraisal Services, the file must include the SSR for both Fannie Mae and
Freddie Mac loans, indicating that the appraisal was successfully uploaded to the
UCDP. Loans without both SSRs will not be eligible for purchase.
DU/LP with an Approve/Eligible recommendation.
OHFA/US Bank will not permit a property inspection waiver under any circumstances.
If the DU/LP recommendation states the “loan may be delivered without an appraisal
or property inspection waiver”, the following are permitted in lieu of a full appraisal;
however, the value must be included
 2055 – Exterior Inspection Residential Appraisal Report, or
 2075 – Desktop Underwriter Property Inspection Report
For loans that a manually underwritten, a Full URAR is required
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Appraiser must be provided with the sales contract and other information concerning
all interested party contributions for the subject property and related appraisal
requirements.
The appraiser is to report any obvious items or areas that affect the safety, livability
and marketability of the property. Correction of these items is required prior to loan
closing.
Effective for all appraisals dated April 1, 2009 and later the Market Conditions
Addendum to the Appraisal Report (Form 1004MC) will be required. The Addendum
is intended to provide a clear and accurate understanding of the market trends and
conditions prevalent to the subject neighborhood.
See attached for FHA guidelines on Lead Paint in FHA REO Properties
18)
INVESTOR
APPROVAL
REQUIRED:
YES – Cannot close loan without OHFA Commitment Approval. The loan status screen
on OHFA’s On-line system must show “committed/approved” before loan can close.
 The Commitment Package must be submitted to OHFA within 25 days of loan
reservation or reservation will be canceled. The appropriate commitment
package must be pulled from the OHFA Lender on Line website. New
commitment forms are available effective January 14, 2011. The new forms must
be used for all reservations taken on or after January 18, 2010. Effective January
28, the old commitment forms will no longer be available.
 Two (2) acre limit on property located within a municipal corporation
 Five (5) acre limit on property located outside a municipal corporation.
19)
SUBORDINATE
FINANCING:
Yes – Any programs not on the attached list must be approved by US Bank, the Master
Servicer, prior to reserving the loan with OHFA. –
HUD has issued an exemption for certain subordinate financing programs for purposes of
RESPA: specifically the requirements under Section 5 (c) to provide a separate Good
Faith Estimate (GFE). In order to qualify for the exemption, the subordinate loan must
meet the following criteria:
 Must be a subordinate lien; AND
 Must be for downpayment, closing costs, or other similar homebuyer assistance,
such as principal or interest subsidies; or property rehabilitation assistance; or
energy efficiency assistance; or foreclosure avoidance or prevention; AND
 Must have a 0% interest rate; AND
 Must have the following repayment terms:
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o
o
Repayment is forgiven, incrementally, or at a date certain; or
Repayment is forgiven, incrementally, or at a date certain, subject to
certain ownership and occupancy conditions; e.g. the recipient must
maintain the property as his or her primary residence for 5 years; or
o Repayment is deferred for a minimum of 20 years; or
o Repayment is deferred until sale of the property; or
o Repayment is deferred until the property is no longer the primary
residence of the recipient. AND
 Total Settlement Costs assessed for the subordinate loan is less than one
percent (1%) of the amount of the subordinate loan and includes, at most,
charges for the following items:
o Recording Fee
o Application Fee and/or
o Housing Counseling Fee.
The OHFA second mortgage meets the criteria for this exemption and thus is no longer
required to have a separate GFE.
All loans using the OHFA subordinate financing program should have the following
identifications in Unifi:
 Registration Folder – Loan Data Tab: The Special Mortgage Type should be
indicated as “Bond DAP”
 1003 Application Folder – Property Information Screen:
o Source of downpayment, settlement charges, and/or subordinate
financing should indicate “Secured”
DAP Program Name: OHFA Second
OHIO DAP and Grant for Grads will close in the name of Ohio Housing Finance Agency.
Dodd/Frank requires that the lender’s name and NMLS number along the mortgage
originator’s name and NMLS number be included after the Notary Section on the OHFA
promissory note and second mortgage.
Lender Name should read: The Huntington National Bank
Lender NMLS # should read: 402436
Loan Officer Name: must match loan officer name on the final 1003
Loan Officer NMLS # must match NMLS # on the final 1003
For all loans using FHA financing:
 The Employer Identification Number (EIN) will be required on all government,
state, county, city municipalities and non-profit organizations providing secondary
financing assistance, grants or gifts to the borrower when the borrower is
receiving an FHA first mortgage.
 The EIN is to be reflected on the new FHA Loan Underwriting and Transmittal
Summary on all FHA closing utilizing any secondary financing. Failure to collect
this information will result in an uninsurable FHA loan.
 OHFA’s Employer Identification Number is 52-1527664 and is to be used on
all FHA loans that use the OHFA 2.5% DPA or Grant for Grads 2nd Mortgages.
Documentation of Governmental Entity DPA Seconds with FHA Financing
For loans with FHA financing, pursuant to Mortgagee Letter 2013-14 effective July 1,
2013, when a borrower’s minimum cash investment is coming from a Federal, State or
local government agency or its instrumentality, in order to be eligible for endorsement, the
file must be documented with one of the following:
 A canceled check, evidence of wire transfer or other draw request showing that
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
prior to or at the time of closing the Government Entity had authorized a draw of
the funds on its account provided towards the borrower’s required Minimum Cash
Investment from the Government Entity’s account; or
A letter from the Government Entity, signed by an authorized official, establishing
that the funds provided towards the borrower’s required Minimum Cash
Investment were funds legally belonging to the Government Entity at or before
closing. To meet FHA requirements for the gift letter, OHFA will include the
gift letter with the commitment approval letter on FHA loans. A copy of the
gift letter must be included in the loan file. NOTE: The attached request for
waiver letter must be included in the file when the borrower’s income
exceeds 115% of AMI.
o In situations where the Government Entity cannot legally or operationally
ensure that secondary financing is made by the Government Entity, a
statement that the Government Entity, signed by an authorized official,
has at or before closing incurred a legally enforceable obligation
(commitment) to provide funds towards the borrower’s required minimum
cash investment, an FHA-approved mortgagee, may provide the funds at
closing, provided the mortgagee has obtained documentation that a
legally enforceable liability or obligation was incurred at or before closing
and the Government Entity holds the secondary financing prior to
endorsement of the first mortgage for FHA insurance.
o Effective with all loans closing on or after July 1, 2013 Huntington will
fund the OHFA DPA and the Grant for Grads second mortgages. The
Loan Commitment Approval Letter (sample attached) will be required to
be submitted in both the OHFA purchase package and the purchase
package submitted to US Bank.
o DPA Funding Verification
Down Payment Assistance from OHFA: On all loans using OHFA’s down payment
assistance funds (either the 2.5% DPA Program (in the form of a silent second) or the
Grant for Grads 2nd mortgage) OHFA will round the amount of the down payment
assistance down to the nearest whole dollar. Example: Purchase Price of $85,500 x
2.5% = $2,137.50. The OHFA down payment assistance amount will be $2,137.00
OHFA 2.5% Down Payment Assistance (DPA) (silent second) Program:
 OHFA down payment assistance program (must be 2.5% of the sales price –
rounded down to the nearest whole dollar).
o NOTE: IF THE PURCHASE PRICES CHANGES FROM THE
ORIGINAL OHFA RESERVATION, THE AMOUNT OF THE DPA
MORTGAGE MUST CHANGE ACCORDINGLY. Any changes must
be noted on the Borrower’s Closing Affidavit.
 This is a “silent” second mortgage which has a term of five (5) years. The second
mortgage has 0% interest and no payment and is forgiven over the five (5) year
period at 20% per year.
 If the borrower refinances or sells the home within the five (5) year period, a
prorated portion of the remaining balance of the assistance will be required to be
repaid.
 The 2.5% DPA grant cannot be used in conjunctions with Grant for Grads.
 Household income cannot exceed 140% of the area median income for the
county in which the property is located.
 The borrower must execute the Down Payment Assistance Second Mortgage
Loan Application that is part of the commitment package. These documents will
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

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be part of the online commitment package on OFHA’s lender on-line website
when a “w/2.5% DPA” program is selected and must be included with the
commitment submission package.
The grant funds can be used toward down payment, closing costs and/or prepaid
expenses incurred prior to closing.
The grant funds must be entered on the HUD-1 as “Ohio DPA 2nd Mortgage”
The interest rate on the first mortgage under the “Assisted” program will be .50%
above the rate on the “Unassisted” program. (see OHFA website for current
interest rates).
GRANTS FOR GRADS 2nd Mortgage
 OHFA G4G 2nd mortgage must be 2.5% of the sales price – rounded down to the
nearest whole dollar.
o NOTE: IF THE PURCHASE PRICES CHANGES FROM THE
ORIGINAL OHFA RESERVATION, THE AMOUNT OF THE G4G 2nd
MORTGAGE MUST CHANGE ACCORDINGLY. Any changes must
be noted on the Borrower’s Closing Affidavit.
 The Grant for Grads second mortgage has a five (5) year terms with 0% interest
and no payments. The second mortgage is forgiven over five (5) years at 20%
per year.
 Household income cannot exceed 140% of the area median income for the
county in which the property is located.
 May not be used in combination with other OHFA down payment assistance
programs or with the Ohio Heroes program.
ADDITIONAL INFORMATION FOR THE 2.5% DPA PROGRAM & GRANT FOR
GRADS
 Fees for the 2.5% DPA Program and the Grant for Grads 2nd Mortgage (fees
must be included on the GFE and listed on the HUD-1:
o $75 Processing Fee may be charged when using an OHFA second
mortgage program.
o Recording Fee for the 2nd mortgage – HUD Line 1202-2.
o HUD-1 Requirements: Section 200 of the HUD Settlement Statement
must indicate the amount of the 2.5% DPA Program or Grant for Grads
program and the description must be indicated as follows:
 2.5% DPA Program must be indicated as OHFA 2nd Mortgage;
OR
 Grant for Grads Program must be indicated as OHFA G4G
ENTRY OF OHFA 2.5% DPA & Grant for Grads 2nd Mortgage Programs in UNIFI &
DU:
Entry in UNIFI:
 When the Grant for Grads 2nd mortgage or OHFA 2.5% DPA Program or other
subordinate financing is part of the transaction, the subordinate loan must be
entered in LP/DU or FHA Total Scorecard as subordinate financing and not as
gift. All subordinate financing must be included in the combined loan-to-value.
 The amount of the G4G or 2.5% DPA second mortgage will be treated as lien on
the property instead of gift funds, even though payments are forgiven after 5
years. Therefore, the amount of the Second Mortgage should be entered in Unifi
so that it shows as “other liens” in Unifi.
 The Community Seconds indicator on the Additional Pricing Data Screen must be
checked. The Community Seconds indicator in DU must also be indicated as
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
“Yes”.
Under the 1003 Application folder in Unifi, select the Property Information and
Purpose Screen, go to the Source of Down Payment, Settlement and/or
Subordinate Financing area and select “Secured” from the drop down box. Enter
“OH DPA 2nd Mtg” or “OH G4G 2nd Mtg”, as appropriate, in the “DAP Program”
field.
FUNDING OF THE & 2.5% DPA & Grant for Grads 2nd Mortgage Programs:
 Effective with loans closed on or after July 1, 2013, the OHFA DPA second
mortgage and the Grant for Grads second mortgage will be funded at
closing by Huntington, regardless of loan type.
 The DPA funds must still be indicated on the HUD-1 Settlement Statement using
HUD line 219 and the handling code should be a “Net Credit”. Change
description to read “OH DPA” or “OH G4G” 2nd Mtg, as appropriate. Change the
Estimated Cost Flag to “NO” so that the 2nd mortgage amount does not appear as
funds the borrower needs to bring to closing.
 Huntington will be responsible for preparing the Note and Mortgage documents
for the 2.5% DPA or the G4G second mortgage programs.
 The 2.5% DPA and G4G 2nd Note and Mortgage must be in the name of Ohio
Housing Finance Agency and forms should be obtained and completed from the
OHFA lender online system. Pull the Promissory Note and Second Mortgage
from the “select documents” section under the “Loan Status” tab on Lender online
for the appropriate borrower(s) and input the data for the 2 nd mortgage.
Fannie Mae Approved Community Seconds are also allowable for down payment, closing
costs, and prepaid items.
 Any Community Seconds other than the programs on the list linked above
must be approved by OHFA prior to funds being reserved with OHFA.
 Community Seconds Funding Agency must be documented in the source of
funds column on the front of the 1003 application.
 Huntington will not fund any second mortgage programs other than the OHFA
DPA or Grant for Grads seconds.
 Refer to Community Seconds Terms and Conditions
20)
MI
REQUIREMENTS:
CONV – HFA Preferred:
LTV
95.01% - 97%
90.01% - 95%
85.01% - 90%
80.01% - 85%
MI Coverage Amount
18%
16%
12%
6%
FHA Case Numbers assigned on or after January 26, 2015 will have the following
premiums:
 Upfront Insurance Premium (UFMIP) = 1.75%
 Annual Premiums will decrease as follows:
LTV / Annual MIP, terms >15yrs
< 90%
>90% ≤ 95%
0.80%
0.80%
Duration
11 years
Life of Loan
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> 95%
0.85%
Life of Loan
FHA case numbers assigned prior to January 26, 2015:
 Upfront Insurance Premium (UFMIP) = 1.75%
 Annual Premiums will increase as follows:
LTV / Annual MIP, terms >15yrs
< 90%
>90% ≤ 95%
> 95%
1.30%
1.30%
1.35%
Duration
11 years
Life of Loan
Life of Loan
NOTE: FHA will temporarily approve Case Number Cancellation Requests for loans with
FHA Case Numbers assigned but not yet closed to allow borrower to obtain the reduced
annual MIP rate. Mortgagees may begin requesting Case Number cancellations on
January 15, 2015 through 11:59pm eastern time on February 25, 2015. New case
numbers should not be ordered until FHA Connection confirms that the previous Case
Number has been canceled. In order to obtain the reduced Annual MIP, new case
number should not be ordered prior to January 26, 2015.
If borrower chooses to have a new FHA case number issued to take advantage of
the reduced Annual MIP, a new GFE and TIL must be provided to the borrower and
a copy retained in the file that reflects the same payment amount as shown on the
final HUD-1. Timelines for closing and delivery of loans must continue to be
adhered to.
VA – VA Guaranteed
Initial Loan with no down payment (First Time Use)
For loans with a down payment of greater than 5%
but less than 10% (First Time Use)
For loans with a down payment of 10% or more
(First Time Use)
Subsequent Use:
Purchase:
95.01% LTV and >
90.01% LTV to 95% LTV
90.00% LTV and less
Manufactured Housing
Assumptions (First Time or Subsequent Use)
Active
Duty or
Veteran
Nat’l
Guard
/Reservist
2.15%
1.50%
2.40%
1.75%
1.25%
1.50%
3.30%
1.50%
1.25%
1.00%
0.50%
3.30%
1.75%
1.50%
1.00%
0.50%
Any loan approved under standard or investor guidelines must also be insurable.
If Huntington is unable to obtain mortgage insurance on a loan for which it is
required, the loan will be denied.
PROCESSING
21)
ANCILLARY

$85 Tax Service Fee- (HUD Line 806) (increased from $79)– will be deducted by US
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FEES:











22)
PROCESSING
DOCUMENTATION:
Bank when the loan is sold. (Seller paid on FHA & VA)
$7.50 Flood Certification Fee – (HUD Line 807)
Effective with reservations taken on or after October 1, 2013, an origination fee of
0.50% should be charged on all OHFA loans.
1. See the OHFA rates posted on http://www.ohiohome.org/.
$100 OHFA Administration fee for Homebuyer Counseling (increased from $75) (HUD Line 1311) required on all loans using OHFAs Streamline Homebuyer
Education Program. If the borrower uses a counseling program other than OHFA’s
program for Homebuyer Education, the $100 Admin Fee to OHFA is not charged.
However, any fee due to the counseling agency would need to be paid and shown
on the HUD-1 for the first mortgage.
DPA Funds must be shown on the HUD-1 using HUD line 219.
Recording fee for the 2.5% DPA or G4G 2nd Mortgage Programs must be indicated
on the HUD-1 (HUD Line 1202-2).
$75 processing fee is permitted for loans using OHFA 2.5% DAG or OHFA Grant for
Grads second mortgage programs.
$350 Funding Fee (HUD line 864) to US Bank for first mortgage loan reserved with
OHFA on or after January 1, 2015. Loans reserved prior to January 1, 2015 will
have a funding fee of $300.
Extension Fee: OHFA will allow one 30 day extension. The extension is .375% of
the loan amount and cannot be charged to the borrower. Effective January 5,
2015, contact OHFA voice mail box at 844-520-5525 regarding changes and/or
extensions in a loan reservation. Leave a message and your call will be returned
promptly. Contact George K Baum Associates at 303-391-5599 to request
extensions prior to January 5, 2015.
Additional fees for Conventional Financing Only:
1. 0.25% Adverse Marketing Delivery Charged on CONV loans only (HUD
Line 874) (based on loan amount, i.e. $100,000 loan amount would
result in an AMDC of $250.00). May be negotiated between
buyer/seller. – GFE Line 874. Must be shown as a separate line item
on the HUD – cannot be shown as a discount.
2. Loan will need to be run through Backdoor DU as an “HFA Preferred”
loan on the Community Lending Screen. Contact the Underwriting Help
Desk.
Insurance Service Fee does not apply to the OHFA Bond loan. Indicate $0.00 in
HUD line 843.
MCC Fee: If combining OHFA first mortgage with an OHFA MCC, the MCC Fee is
$250 (HUD line 870)
The following Special Feature Codes will apply for loans with conventional financing:
 HFA Preferred DU Loans & Manual U/W SFC 088 & 741 (Note loans with LTV >
95% cannot be manually U/W). SFC 741 replaces SFC 358. The SFC 741 will
need to be handwritten on the 1008 and an override may be required on the DU
Compare screen until the SFC is programmed into Unifi.
 Community Seconds Transaction – SFC 118
 “Thin File” Traditional Credit – SFC 818
1. Loans must be reserved through OHFA’s Lender On-Line System. Website address
is http://www.ohiohome.org/ and click on the Lender on Line Icon at the bottom of
the page. Loans should not be reserved unless it can meet the deadlines outlined
on page 1 under Product Benefits. When entering the loan reservation you must
indicate whether or not the property is in a target or non-target area. Use the
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2.
3.
4.
5.
6.
7.
8.
target/non-target link to enter the property address. You will receive one of the
following responses:
 “Qualified Census Tract, Area of Chronic Economic Distress”: means the
property is located in a target area; or
 “This census tract is no currently among the target tracts”: means the
property is located in a non-target area; or
 “Property could not be found” Check for spelling errors, zip code errors,
and be sure to include all parts of the address such as North, South, Blvd.,
etc.
Once the loan is entered into Lender on Line, OHFA documents are available under
the loan status tab. Documents are in a pdf format with portions of information
already completed in addition to the ability to enter information in a text box. The
document can then be printed or saved to a file to be transmitted with the closing
package. OHFA Affidavits are to be signed by the borrower, occupant co-borrower,
or spouse releasing dower. Click on the link to OHFA Commitment Package below
for instructions on completing OHFA documents.
To cancel loans, go to the OHFA Lender on Line system. Use the loan status tab to
find the particular loan, click view at the bottom of the page. In the loan detail, click
the “Cancel Loan” button. If the loan has been “committed/approved”, an e-mail will
need to be sent to OHFA for them to cancel the loan as Huntington will not be able
to cancel the loan after it has been committed/approved. See Attached Screen Print
NOTE: if cancelled, a new loan cannot be reserved for the borrower(s) for 60
days.
Loans will be processed based on conventional (HFA Preferred Mortgage), FHA, or
VA guidelines. See US Bank Lender Manual for required documentation,
underwriting guidelines and General Closing requirements.
A realistic estimate must be computed for the monthly escrows. The escrowed
amount for real estate taxes is based on the assessed value of improved land (i.e.
value of both property and completed dwelling) for new construction and the actual
taxes assessed for existing properties. Lender may contact the taxing authority
which has jurisdiction over the property to obtain an estimate of the taxes to be
assessed for newly constructed homes.
A copy of the GFE and preliminary TIL that includes the actual property
address will be required. Therefore, if the loan began as a Headstart, a GFE &
preliminary TIL will need to be reprinted once the loan goes live to show that
the disclosures were given within the 3 day period after the loan went from
HeadStart to live.
Borrowers using the HFA Preferred Convention product
 For HFA Preferred Mortgage – The borrower is required to have a minimum 680
FICO score for 97% financing (1-unit properties only, excludes condos). DU
Approval/Eligible finding is required and manual underwriting is not permitted. A
minimum FICO score of 640 is required for 95% financing (2-4 unit properties &
condos). The MI company may have a required borrower contribution
depending on LTV and FICO Score. Note: manufactured homes are not
permitted with conventional financing.
 Down payment may consist of gift from relative, OHFA down payment
assistance, unsecured or secured loan or grant from employer, city, county,
non-profit organization, loan secured against assets owned by borrower, or
proceeds from Individual Development Accounts (IDAs).
 For 2-4 unit properties the borrower is required to make a minimum contribution
of 3% from their own funds and an addition 2% from flexible sources.
Loans using conventional financing allow a maximum seller contribution of 3% with
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an LTV ≥ 90.01%. Seller contribution must be used toward closing costs and
prepaids. It cannot be applied to down payment.
9. All borrowers using conventional financing must also agree to attend Early
Delinquency Counseling in the event they have late mortgage payments.
Borrower(s) is (are) required to sign the Early Delinquency Counseling form at
closing and the signed form must be included in the commitment package.
10. All borrowers purchasing 2-unit, 3-unit, or 4-unit properties, whether or not they are
first time homebuyers must participate in a landlord counseling program conducted
by a recognized community counseling organization by the Lender in a face-to-face
meeting with the borrower. The Lender’s counseling program must either use
Fannie Mae’s publication, “Becoming a Landlord: Reward, Risks, and
Responsibilities for Owner/Occupants of Two-to-Four Family Homes”, or must
include topics listed in the Landlord Counseling index. Evidence of completion of
the landlord counseling program must be maintained in the loan file. A list of
counseling agencies that offer Landlord Counseling can be obtained through Fannie
Mae’s web site using the following link:
http://www.mortgagecontent.net/findCounselorApplication/fanniemae/findCouns
elor.jsp Scroll to the bottom of the page and select the state where the
property is located and click search.
OHFA Commitment Package:
1. Once registered on OHFA’s website, the loan must have an underwriting
certification completed online and a commitment submission package must be sent
to OFHA within 25 days of reservation.
2. Attached is a spreadsheet that identifies the required documents needed for the
various products under the OHFA Bond Program. The borrower, any occupant coborrower and/or spouse releasing dower must execute all OHFA documents.
3. Completed Borrower Initial Affidavit Pages 1 & 2 (part of Commitment Submission
Package) must be notarized and date of notary must coincide with date of
borrower’s signature.
4. Lender Underwriter Certificate. Must be completed and executed in included in the
commitment package.
5. Down Payment Assistance Second Mortgage Application must be completed,
signed by the borrower and notarized if the borrower is obtaining the OHFA DPA 2nd
mortgage or the G4G second mortgage. The document must be signed by the
borrower with printed name below.
6. The Gift Award Letter must be dated and completed with the borrower name,
property address, and second mortgage amount.
7. The Down Payment Funding Verification Letter must be completed and check the
second box indicating that the Lender will provide the DPA at closing. This must be
included in the closing package submitted to the Master Servicer (US Bank for
Conventional Loan) after closing.
8. Must have most recent three years tax returns signed and dated by borrower. (Efile returns must have actual federal tax return attached.) As of Feb. 16, 2012,
returns for 2011, 2010 and 2009 must be included. If the loan was approved prior to
Feb. 16 and closes on or after Feb. 16, the 2011, 2010 and 2009 tax returns must
be submitted with the Purchase Submission Package.
9. Family Income Certification (part of Commitment Submission Package) – must be
notarized and date of notary must coincide with date of borrower’s signature
10. The Borrower Authorization for Counseling must be executed and submitted with
the commitment package
11. Non-occupant co-signers are not permitted when using conventional
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financing. Non-occupant co-signers do not sign the mortgage or OHFA
documents, nor can they be on the title.
12. If the borrower changes properties, a cancellation must first be faxed to OHFA to
cancel the original property followed by a new reservation completed through the
on-line system for the new property.
13. Commitment submission packages can now be submitted via e-mortgage through
Lender On-Line. Documents requiring signature and/or notary will need to be
scanned and saved to your hard drive. This includes purchase contracts, tax
returns, pay stubs, or other non-OFHA documents. See instructions for e-doc
submission.
OHFA DOCUMENTS REQUIRED AT CLOSING:
1. The loan must have OHFA commitment approval letter prior to closing. The
Commitment Letter can be printed from the OHFA Lender OnLine Portal. For FHA
loans, the FHA Gift Letter will be included with the commitment approval letter. The
FHA gift letter (on FHA loans) and the Commitment Approval letter must be retained
in the loan file.
2. Effective immediately, an itemized break down of the fees included in the origination
charge will be required with all HUD-1 Settlement Statements. This will need to be
a manual itemization until Unifi can be programmed.
3. Processors are to complete the OHFA documents required at closing and provide
instructions to the closer regarding the documents to be signed at closing in addition
to any at time of closing conditions placed on the loan by OHFA. All OHFA
documents, including the 2.5% DPA or Grant for Grads 2nd mortgage programs, if
applicable, are to be returned to Huntington by the title company. OHFA’s Lender
On-Line must show loan status as “Committed/Approved” before loan can close.
(This loan status screen must be printed and placed in the file.) There will be a
$200 penalty assessed to lenders who do not have OHFA approval prior to closing –
“NO EXCEPTIONS”.
4. Loan must close within 45 days of OHFA reservation date.
5. Loans utilizing Section 8 must have the Subsidy Agreement w/PHA & Contact for
Subsidy Provider completed and signed by the subsidy provider.
6. Borrower, occupant co-borrower and/or spouse releasing dower must sign all OHFA
documents.
7. Any non-purchasing spouse must sign the mortgage deed or deed of trust (and
applicable mortgage riders and disclosures as identified in the mortgage deed or
deed of trust) as a non-purchasing spouse and not as a borrower.
 Having the spouse sign the mortgage as a non-purchasing spouse relinquishes
the non-purchasing spouse’s marital right to the property and to the mortgage
transaction in the event the spouse responsible for the mortgage defaults on the
mortgage payments.
 The non-purchasing spouse will not be permitted to sign any type of marital
waiver, as the marital wavier does not protect the lender’s rights if the borrower
defaults on the loan.
8. The following documents must be obtained from the OHFA Lender OnLine website
by going to Loan Status Tab – pulling up your borrower’s loan and clicking on PDF
documents icon. Select the MRB Purchase Package. The following documents
within that package are required to be completed and signed by the borrower at
closing. You will need to include these documents in the closing instructions to the
title company.
a. Borrower’s Closing Affidavit (page 3 of Initial Affidavit – part of Purchase
Submission Package) must be signed by the borrower at closing and
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notarized. The date of notary must coincide with date of borrower’s
signature. The date requested in the first paragraph of the document is the
date the borrower signed the Initial Affidavit. If there have been changes to
the loan since it was approved by OHFA, i.e. purchase price and/or loan
amount, mark paragraph b and indicate the changes in the space provided.
b. Borrower Authorization for Counseling is now part of the Commitment
Package.
9. Income must be re-certified at closing.
10. Non-occupant co-signers do not sign OHFA documents and cannot be shown on
the title nor can they be on the Warranty Deed.
11. Borrower may not get funds back at closing that exceeds the amount they have
invested in the transaction. That amount is limited to $500 when using OHFA down
payment assistance. If the borrower is to get more than $500 back, even if they
have paid more than $500 into the transaction, it must be in the form of a principal
reduction. NOTE: If borrower is using another form of down payment assistance
that prohibits any cash back to the borrower, those guidelines will prevail.
12. Final Title Policies must be issued in the Lender’s Name as follows:
The Huntington National Bank, its successors and assigns as their interest
may appear
c/o The Huntington Mortgage Group
P.O. Box 182024
Columbus, OH 43218-2024
13. Closing Protection Letters should be issued to US Bank as outlined below.
These letters should not be sent to the address indicated below but must be
include in the closed loan package delivered to US Bank:
U.S. Bank Home Mortgage, a division of U.S. Bank National Association
4801 Frederica Street
Owensboro, KY 42301
23)
DISCLOSURE:
Standard RESPA and Reg Z Disclosures
OHFA Recapture Notice required with OHFA first mortgage is combined with the MCC
Program
RESPA Requirements
 Initial GFE issued must be incompliance with Reg X and be complete and accurate.
 Re-disclosed GFE’s due to a Change of Circumstance must be documented and a
Change of Circumstance re-disclosure log must be included in the loan package.
 The Final HUD-1 must reflect the accurate GFE amounts in the GFE Column and
must match the last valid GFE disclosure.
Dodd-Frank Related RESPA Requirements
 Effective for all applications taken on or after January 10, 2014:
o A Homeownership Counseling disclosure must be provided to applicants
within three (3) business days of receiving a loan application.
Evidence must be included in the loan file that the disclosure was provided
in the appropriate time frame required.
o Effective for all loan submitted on or after May 11, 2015, US Bank will no
longer accept the CFPB’s temporary alternative Homeownership
Counseling Disclosure. In order to be eligible for purchase all loans must
include a copy of the 10 counseling agencies provided to the borrower;
evidence that the list was based upon the applicant’s current mailing
address or ZIP code, unless specified differently by the applicant; evidence
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o
that the list was created no more than 30 days prior to providing it to the
borrower; and evidence that the list was provided to the borrower within
three business days of receipt of the RESPA application.
Lenders may rely on document print dates or a cover letter to show the list’s
creation date. Separate evidence must be given to show timely delivery to
the applicant.
Truth-in-Lending (TIL) Disclosure
 The TIL disclosure must be complete and accurate and proper and accurate fees
must be included in the finance charge calculations.
 A new TIL disclosure must be provided when the APR is no longer considered
accurate. (An APR is inaccurate if it increases by more than .125% from the last
disclosed APR.)
 The loan may not close prior to the seventh business day after the initial disclosure
was sent.
 If the loan is re-disclosed, the loan may not close prior to the third business day
after re-disclosure was received by the borrower.
 Effective May 1, for all VA loans under the OHFA program, a separate origination
statement itemizing the origination fees will be required. The statement must be
signed and dated by the borrower.
 OHFA will require lenders to calculate the APR for all OHFA loans on the date of
loan reservation. The date of loan reservation will be considered the lock-in date of
the purpose of compliance with Reg Z.
 A screen shot of the FFIEC calculator (http://www.ffiec.gov/ratespread/default.aspx)
for the specific loan on the date of loan reservation must be included in all loan
packages submitted for commitment approval.
 When using the FFIEC calculator:
o The date of loan reservation on OHFA’s website is the lock-in date
o The APR is what is shown on the initial Truth in Lending Statement
o The fixed term is 30 (years)
o The lien status is 1 = Secured by First Lien
 OHFA will not grant commitment approval to any loan that does not contain this
information. It must be obtained on the date of loan reservation, as the calculator
changes weekly.
 Notice to Buyers – FHA Insured Loan Certification (Form MRB 004 – part of
Commitment Submission Package)
24)
AUDIT
GUIDELINES:
Standard HMC Policy and Procedures
25)
HAZARD / TITLE
INSURANCE:
Title Insurance is required.
 Name of insured must be “The Huntington National Bank, Its Successors and/or
Assigns” on the title policy and any endorsements.
 All final title policies must have the following endorsements:
o ALTA 9 – Comprehensive Endorsement 100
o ALTA 8.1 – Environmental Protection Lien Endorsement
o ALTA 4 – Condominium Endorsement, if applicable
o ALTA 5 – Planned Unit Development, if applicable
o Manufactured Home ALTA, if applicable
For Manufactured Homes
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
the title policy must contain an ALTA 7 form endorsement or the
equivalent
 evidence that the manufactured home title has been surrendered to the
state
Hazard Insurance:
 The Hazard insurance policy must contain the following mortgagee clause at
closing:
The Huntington National Bank, its successors and assigns as their interests
may appear
c/o The Huntington Mortgage Company
ISAOA/ATIMA
P.O. Box 182024
Columbus, OH 43218-2024
Follow the Hazard and Flood Deductible requirements outlined in the charts below:
Property Type
One to four family;
Individual PUD units;
Individual condo units
(i.e. detached condo’s,
town or row houses)
Association Policy
requirement for
CONDO/PUD Projects
and common areas
Maximum Hazard
Deductible – All Bond
Programs (Includes FHA,
VA, RHS, Loans)
Unless a higher maximum
amount is required by state
law, the maximum deductible
clause may not exceed the
greater of $2500 or 2.5% of
the face amount of the policy.
Deductibles may not exceed
the higher of $2500 or 2.5%
of the policy’s insurance limits
for all covered losses.


Maximum Hazard Deductible
– All Bond Programs
(Conventional Loans)
Unless a higher maximum
amount is required by state law,
the maximum deductible clause
may not exceed five percent
(5%) of the face amount of the
policy.
Unless a higher maximum
amount is required by state law,
the maximum deductible clause
may not exceed five percent
(5%) of the face amount of the
policy
Appropriate coverage should also be obtained for any
localized perils (i.e. wind, hail, sinkhole, mine
subsidence, volcanic eruption, and avalanche) that are
not covered by standard property insurance.
Rental Loss coverage is required on 2-4 unit owner
occupied properties.
Flood Insurance
 Flood insurance coverage must be at least the lower of:
o Unpaid principal balance of all liens against the property,
o The insurable value of the property; or
o The National Flood insurance Program (NFIP) insurance maximum
($250,000 for Regular Program, $35,000 for Emergency Program).
 Flood Insurance Disclosure Requirements for non-residential structures: The
Homeowner Flood Insurance Affordability Act (Section 13(b)) details an
amendment to the Home Buying Information Booklet provided by the CFPB. The
amendment provides specific guidance to the borrower regarding flood insurance,
even if the lender does not require it. U.S. Bank Home Mortgage will send the
HFIAA non-residential detached structures disclosure directly to the borrower on
all conventional loans where the property is identified to be in a special flood
hazard area.
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o

On conventional loans, Flood insurance coverage is not required on nonresidential detached structures. To be defined as residential, if any part
of the detached structure is designed to contain sleeping, bathroom and
kitchen facilities, flood insurance coverage would be required. As an
example, flood insurance would not be required for a shed or a workshop,
but if the property has a separate structure such as a guest house, flood
coverage for that structure would be required.
o Until further instruction is received from FHA or VA, flood insurance
coverage will be required on all detached structures located in a Special
Flood Hazard Area for loans using government financing where the
replacement costs value of the detached structure is more than $1,000.
Detached structures that are permanently affixed to a foundation (as
documented by an appraiser or hazard insurance agent) and valued at
less than $1,000, do not required flood coverage. A value of $0.00 is not
permitted. The appraiser must provide a replacement cost for the
structure.
o The National Flood Insurance Program (NFIP) policy covers only one
structure per policy. An exception is for detached garages, used for
storage or parking, which are typically included in the NFIP policy for the
primary residence. Therefore, if there are additional structures with a
replacement cost value exceeding $1,000 and insurance is provided by
the NFIP policy, an individual NFIP policy for each additional structure will
be required. If private flood insurance is obtained, the policy should
include a list of all structures covered and indicate the amount of
coverage provided for each structure.
Calculations to determine the insurable value of the property must include the
foundation. Acceptable documentation for establishing the insurable value of the
property is listed here in order of preference:
o The Estimated Cost New from the appraisal (Cost Approach section).
This includes the foundation so no additional reference to the foundation
is required. If there are additional structures or buildings on the property,
the appraiser must provide a replacement cost value for each of the
structures or buildings.
o The hazard insurance policy. The hazard policy must provide the
insurable value (replacement cost) of each building or structure on a
property, and it must have confirmation that the foundation is included. If
the agent or insurance company cannot or will not verify in writing that the
hazard insurance includes the cost of the foundation, the hazard policy
cannot be used as the insurable value for the flood policy.
o A construction cost calculation. If the insurance company will not
provide this information, a quote from a builder or contractor is required.
The calculation should be no more than 12 months old and must include
a value for the foundation.
o For condominium loans, if the policy is a RCBAP, the insurable value of
each unit will be calculated using the Replacement Cost Value (RCV) and
number of units obtained from the association’s flood policy. If the
condominium policy is not a RCBAP policy (a master policy for residential
condominiums issued by FEMA), the cost approach from the appraisal or
the hazard coverage (inclusive of foundation) may be used to establish
the insurable value of each unit. Any flood insurance shortage must be
covered by an individual flood policy obtained by the borrower if the
association refuses increase coverage to 100% of the RCV or the NFIP
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


maximum $250,000 per unit.
For individual flood policies, a copy of the flood policy reflecting paid in full or a
completed Application for Flood Insurance and a paid receipt is required. NOTE:
A flood insurance binder is not acceptable evidence of insurance. An ACORD
Certificate of Insurance can only be accepted on single family flood policies that
have been in existence for over 60 days. It is acceptable to have the premium for
a flood policy paid at closing; however, evidence is required to show that the
settlement agency remitted a check to the insurer.
For condominium flood policies (non-RCBAP policies), as ACORD Certificate of
Insurance is acceptable as evidence of insurance as long as the original policy
was in place more than 60 days prior to closing.
The flood zone on the flood policy must match the flood zone on the flood
determination.
Follow the Flood Deductible requirements outlined in the charts below:
Minimum Deductibles (NFIP Policies Only)
Coverage of $100,000
Rating / Loan Type
or less
Full risk rate policies (Post-FIRM, preFIRM elevation-rated, and all X-zone
$1,000
rated policies)
Pre-FIRM subsidized policies
$1,500
Emergency program (all ratings)
$1,500
Coverage over
$100,000
$1,250
$2,000
$2,000
Maximum Deductibles
Allowable Deductibles for Flood
Single Family Dwelling
Coverage
Housing and bond agency loans
Unless a higher maximum is required by
state law or the agency, $2,000 (please
refer to state law or bond agency policy
and procedure for property amounts)
Allowable Deductibles for Flood
Condominium (association policies)
Coverage
Freddie, Fannie, whole loan investors
Maximum of $25,000
Government loans, association, housing
Maximum of $25,000
and bond agency loans
26)
SURVEY:
Required – The correct dimensions of the lot, the location of any improvements, the
measurement from the improvements to the various lot lines, the location and identify of
all easements and encroachments must be identified and illustrated on the drawing. All
permanent structures must be identified. The location of easements must be described in
the title policy. Surveys are acceptable up to six months old.
27)
ESCROW
AGGREGATE
ACCOUNTING:
Please refer to the HMG Escrow Waiver Policy
28)
POST CLOSING
& SHIPPING
U.S. Bank Delivery & Funding Requirements

In addition to the items listed in the US Bank Delivery & Funding Requirements,
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
1.
2.
3.
4.
purchase package submissions must also include the following documents:
o Asset verification for all borrowers, as required by the underwriting approval
(i.e. bank statements, VODs, etc.)
o Most recent paystub(s) as required by the underwriting approval for all
borrowers and all employers
o Most recent W-2(s) or SA-1099(s) as required by the underwriting approval
for all borrowers and all employers
o IRS Tax Transcripts for all borrowers (as of last filing year)
o Current (as of last filing year) IRS tax returns for all borrowers including all
pages and schedules along with signature(s) as required by the underwriting
approval, if applicable per the loan product guidelines.
o All required underwriting and closing documentation for any sources of down
payment assistance program, grants, second mortgages, etc. which includes
all required Agency (FHA, VA, RD, etc.) documentation
o If gift funds are used, proof of existence of funds within donor account, gift
letter, and proof of transfer to borrower as required by the underwriting
approval
o Proof of Homebuyer Education documentation signed by borrower(s), if
applicable.
o Closing protection letter or final title policy for subject property.
o Letter regarding HB Education Disclosure requirements.
o Proof of delivery of property valuation.
For FHA loans, the following documents are also required:
o Real Estate Certification and Amendatory Clause signed and dated by all
borrower(s) and seller(s). Must be signed prior to closing, cannot be signed
same date as closing.
o Conditional Commitment signed by U/W including FHA Case number of
subject property with all listed conditions cleared.
o FHA Loan Underwriting Transmittal including the CAIVRS Authorization
number with LDP/GSA section marked appropriately.
o FHA New Construction Documentation. If “Subject to Completion”, the
following fully executed documents are required:
 HUD 92544 Warranty of Completion of Construction
 HUD 92541 Builder’s Certification
 Builder’s Permit and Certificate of Occupancy or 10 year warranty
 Final Inspection by appraiser
 Termite Report/Wood Destroying insect report/Soil Guarantee.
Purchase submission package to be shipped within 45 calendar days of OHFA
reservation date. Use the updated Purchase Submission Checklist for submission of
purchase package to OHFA.
Loans must be purchased by US Bank within 70 calendar days of the reservation
date, unless an extension has been obtained. One 30 day extension may be granted.
The extension request must be made in writing and submitted to
[email protected]. A .375% extension fee will be deducted from the loan
proceeds.
Effectively immediately, an itemized breakdown of fees included in the origination
charge on line 801 of the HUD Settlement Statement will be required with the
submission of the Purchase Package.
Post Closing and Delivery: Use the checklists linked here for submission of the files
for purchase by US Bank.
Conventional Loan Delivery Checklist
Government Loan Delivery Checklist
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Housing Finance Agency (HFA) Document Checklist
Purchase Review Files & Original Notes are shipped to the following address:
U.S. Bank Home Mortgage MRBP
Attn: MRBP Operations Department
17500 Rockside Road
Bedford, OH 44146
5. If the loan started as a Headstart, a copy of the GFE and preliminary TIL that includes
the actual property address will be required to be included in the purchase package
when the loan is submitted for purchase. Branches have been instructed to reprint
the GFE & TIL when the loan goes live.
6. DPA Funding Verification: US Bank will require the DPA funding verification from to
be completed and included with the closing package on all loans using down payment
assistance from OHFA. A copy of the wire transfer must be attached to the Funding
Verification and submitted to US Bank with the purchase package.
7. For all conventional loans with applications dates of December 1, 2011 or later, the
Submission Summary Report (SSR) for both Fannie Mae and Freddie Mac indicating
that the appraisal was successfully uploaded to the Uniform Collateral Data Portal
(UCDP) must be included with the purchase package or the loans will not be eligible
for purchase
8. Final documents are to be delivered within 60 calendar days of final loan purchase
date. Documents not received within 60 days of loan purchase will be subject to a
$50 late fee. See the Closing & Funding section of the US Bank Lender Manual for
loan delivery requirements. See instructions for e-doc delivery for Purchase Package
submission to OHFA.
Final doc delivery address:
U.S. Bank Home Mortgage
Attn: Document Control Department
17500 Rockside Road
Bedford, OH 44146
9. For loans on property located in a flood zone, the following documentation must be
provided to US Bank with the purchase package:
a. The signed Notice to Borrower form OR an acknowledgement form signed by
the borrower(s) indicating they previously received the Notice to Borrower
form.
b. Current Flood Determination
c. Proof of adequate flood coverage, if applicable
d. Proof of adequate Hazard insurance coverage, to determine the value of
insurable improvements.
10. For loans on property not located in a flood zone, the following documentation must
be provided to US Bank with the purchase package:
a. Current Flood Determination indicating the property securing the loan is not
located in a flood zone.
11. Servicing will issue the letter to the Hazard/Flood Insurance Provider in their normal
process when the loan is purchase. The Loss Payee is being amended as follows:
U.S. Bank National Association, its successors and/or assigns as their interest
may appear
c/o U.S. Bank Home Mortgage
17500 Rockside Road
Bedford, OH 44146
Final Document Delivery: a $50 late fee may be assessed for final docs not delivered
within 60 days of loan purchase.
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LEGAL DOCUMENTS
29)
NOTE:
CONV: Fannie Mae Form 3200
FHA: Fixed Rate Multistate Note Form – VMP-1R
VA: Multistate Fixed Rate Note: VMP-5G
USDA: Fixed Rate Multistate Note Form – VMP-5N
OHFA DPA Promissory Note – obtain form from OHFA Lender Online
OHFA Grant for Grads Promissory Note – obtain form from OHFA Lender Online.
NOTE: Lender Name and NMLS# and MLO Name and NMLS# must be included
after the Notary Section. Lender and MLO information must match the information on
the final 1003.
30)
RIDER:
Multistate Condominium Rider, as appropriate – Fannie Mae Form 3140
Multistate PUD Rider, as appropriate – Fannie Mae Form 3150
Multistate 1-4 Family Rider, as appropriate – 3170
31)
SECURITY
INSTRUMENT:
State specific Fannie Mae/Freddie Mac Form
OHFA DPA Second Mortgage – obtain form from OHFA Lender Online
OHFA Grads Second Mortgage - obtain form from OHFA Lender Online
NOTE: Lender Name and NMLS# and MLO Name and NMLS# must be included
after the Notary Section. Lender and MLO information must match the information on
the final 1003
OTHER
32)
MARKET
RESTRICTIONS:
Property must be located in the State of Ohio. PROGRAM RESTRICTED FOR USE
BY MORTGAGE COMPANY OFFICES LOCATED IN OHIO ONLY.
33)
CONSTRUCTION
PERMANENT
MODIFICATIONS:
N/A
PRODUCT REVISION HISTORY
01/03/2012 Changes to Conventional LTV Limits & various U/W issues; Max DTI for all manual U/W loans;
non-occupant co-borrowers no longer permitted w/conventional financing; HB Ed required on all
conventional loans; Processors to complete all bond documents required for closing with instruction
to the closer
02/08/2012 Itemized breakdown of origination charge required
03/01/2012 DRIVE Language added
04/01/2012 New FHA MIP Premiums
07/01/2012 New DAG Addendum; increase in tax service fee and US Bank funding fee
07/18/2012 New OHFA Commitment & Purchase Package forms
01/24/2013 Wiring Instructions for funding of DPA on FHA-Insured Loans
2/11/2013
OHFA DPA funding will be provided by OHFA on all loans, regardless of finance type; US Bank
Funding Verification Form to be completed and included with purchase package.
03/01/2013 OHFA will implement a minimum FICO score of 640 for all reservations effective April 1, 2013.
Increase in FHA Annual MIP effective for FHA case numbers issued on or after April 1, 2013.
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04/01/2013
05/01/2013
New down payment assistance program that replaces the 2.5% grant.
Increase in duration of FHA Annual MIP for case numbers issued on or after June 3, 2013
05/17/2013
06/11/2013
07/01/2013
Clarification on Tax Transcripts
Clarification on 4506-T and use of tax transcripts
Age of Credit Docs extended; Documentation Requirements of Government DPA Funds for FHA
Loans; Change in Funding of OHFA Down Payment Assistance at Closing.
Effective for new reservations of FHA loans on or after July 19, 2013, using OHFA DPA or G4G
have an income limit of 115% AMI
New MBS Market Rate Program; origination fee of 0.50% on all loans; Home Sweet Home
Program has been discontinued; Homebuyer Ed required for all borrowers on all loans; increase in
OHFA Streamline HB Education fee to $100; manufactured housing has minimum FICO of 660;
rate locked on OHFA’s reservation system for total of 70 days; no program or rate changes
permitted after the loan is reserved; new time frame for submission on commitment & closing
packages; eliminate $100 cancelation fee; Recapture Notice, Builder/Seller Affidavit and Tax
Exempt Rider no longer required.
US Bank documentation requirements
New HBE Process
Deductible limitations for Hazard/Flood Insurance for Government Loan Products
Incorporated ATR and RESPA, HB Counseling and TILA disclosure requirements. US Bank
Funding Fee increased to $250.00. Clarification for 97% Conventional Financing limited to 1-unit
properties only, minimum FICO 680, Approve Eligible Only – no manual underwriting; US Bank
Delivery Requirements
Updated HB Education requirements; Repayment/Re-subordination requirements for G4G second
mortgage; G4G must be 2.5% of purchase price; restriction period for reservation after
cancelations; requirements for Federal Tax Returns.
Required Title Endorsements
Clarification of first-time buyer & calculation of rental income when borrower owns investment
property; requirements for HUD-1 when OHFA 2nd mortgage is used; Flood insurance coverage
requirements; new loan delivery checklist; reminder of Homeownership Counseling Disclosure
requirements; USBank exclusionary list for appraisers
Calculation Worksheet for total household income; USBank requirements for list of HB Counseling
Agencies; Name of Insured on Title Policy and Endorsements must be “The Huntington National
Bank”
Increase in US Bank funding fee effective June 9, 2014
OHFA Closing Cost Assistance Grant
Homebuyer Education Disclosure Letter regarding availability of required disclosure; Flood
Insurance Requirements; correct SFC for Conv Financing; Confirmation of Appraisal Delivery.
Lender’s Name & NMLS # and MLO Name & NMLS # must be included after the Notary section on
all OHFA second mortgage documents and must match the lender and MLO information on the
final 1003.
New Max DTI requirements
New income and sales price limits & clarification on HBEd requirements.
MCC with OHFA first mortgage
Issue with DU 9.2 on 97% Conventional loans; FHA Amendatory Clause; New SFC 741 for HFA
Preferred Loans; Increase in US Bank Funding Fee to $350; Effective 1/5/15 contact OHFA to
request changes/extensions to loan reservations.
Removed language regarding manual underwriting for HFA Preferred loans below at or below 95%.
All HFA Preferred loans must have an Approve/Eligible finding.
New FHA Annual Premiums effective with FHA Case Numbers issued on or after January 26, 2015
New OHFA forms and requirements for Power of Attorney
Address look-up tool to determine OHFA target areas
07/16/2013
10/01/2013
10/14/2013
11/04/2013
12/16/2013
01/10/2014
2/1/2014
03/01/2014
03/12/2014
04/01/2014
5/23/2014
7/01/2014
7/15/2014
08/01/2014
9/12/2014
11/01/2014
11/26/2014
12/19/2014
01/22/2014
01/26/2015
02/10/2015
03/10/2015
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PROGRAM:
04/01/2015
05/18/2015
06/01/2015
OHIO HOUSING FINANCE AGENCY MBS BOND
PROGRAM
FHA Gift Letter will print with the OHFA Commitment Letter on FHA loans that are using OHFA
down payment assistance.
Homeownership Disclosure Requirements for US Bank; Flood insurance requirements on
conventional loans with non-residential detached structures; itemization of fees for VA loans.
Documentation requirements when IRS rejects a request for tax transcripts due to identity theft
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