Lender Training
Module I
The Basics
For audio, please dial (877)
347-4079 Code: 3333
Agenda
Topics Covered Today:
• About TSAHC
• Down Payment Assistance
• Mortgage Credit Certificates
• Program Fees
• Compensation
• How Does Someone Qualify
• Lender Portal Access
• Loan Reservations
• Underwriter Certifications
• Marketing Ideas and Resources
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About TSAHC
TSAHC is a 501(c)3 nonprofit organization. Our mission is to serve the housing needs of lowmoderate income Texans and other underserved populations.
We fulfill our mission through our concept of:
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About TSAHC
As a part of our “Buy” component, we have two programs available to help Texans purchase a
home.
Home Buyer Programs:
•Homes for Texas Heroes Home Loan Program
•Home Sweet Texas Home Loan Program
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Home Buyer Programs
These Home Buyer Programs offer two types of assistance to home buyers STATEWIDE.
Loans with Down Payment Assistance
Mortgage Interest Tax Credits
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Loans with Down Payment Assistance
Three options are available to your borrower:
3 % Grant for
Down Payment
4 % Grant for
Down Payment
5 % Grant for
Down Payment
3 % Grant for Down
•Choose a grant equal to 3%, 4%, or 5% of the total loan amount (i.e.: 5% of $100,000 = $5,000)
•Down payment assistance grants are a true gift that never needs to be repaid
•The lower the % of assistance, the lower the interest rate (Check website for rates)
•Down payment assistance grant may be used for down payment and/or closing costs
•No need to be first-time buyer (must use to purchase primary residence)
•Borrower may choose FHA, VA, USDA, or HFA Preferred Conventional Loan type
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Loans with Down Payment Assistance
TSAHC offers a special Fannie Mae loan called HFA Preferred Conventional. It has all the benefits
of a traditional conventional loan with some added perks:
Mortgage Insurance Savings
HFA Preferred Conventional vs. FHA Loan
HFA Preferred
Conventional Loan
FHA Loan
Upfront MI Premium
$0
$2,111
Monthly MI Payment during
months 1-116 of loan
$66
$93
Approximate month MI can be
cancelled
117th
Monthly MI Payment during
months 117-360 of loan
$0
$93
Total MI Over 30 Years
$7,656
$35,591
Month*
Only 3% down payment required
•
No upfront mortgage insurance (MI) premium
•
Lower minimum monthly MI rates
•
No Loan Level Pricing Adjustments (LLPAs)
•
MI can be cancelled
Never
The above calculations are based on a home sales price of $125,000
and a homeowner credit score of 720. This information is for loan
scenario comparisons only and is not all-inclusive of costs associated
with obtaining a mortgage loan.
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•
Loans with Down Payment Assistance
A borrower using TSAHC’s DPA or DPA/MCC program may purchase any of the following type of
homes:
Government Loans
• New or existing homes
• Unit in a condo, townhouse, or PUD
• An entire duplex, triplex, or fourplex
(one unit must be owner-occupied)
HFA Preferred
Conventional Loans
• New or existing homes
• Unit in a condo, townhouse or PUD
• An entire duplex, triplex, or fourplex
(one unit must be owner-occupied)
Not allowed: Rental homes, co-ops, investment properties, vacation and/or second homes.
•
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Mortgage Interest Tax Credits
Mortgage Credit Certificate (MCC)
• First-time buyers only
(Waived for Qualified Veterans and Targeted Areas)
• Annual tax credit worth up to $2,000
• Must occupy the home as principal residence
• Debt-to-income ratio reduced so buying power increased
• FREE for Texas Heroes using our DPA program
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Mortgage Interest Tax Credits
Mortgage Credit Certificate (MCC):
Equal to 40% of the mortgage interest paid up to a maximum $2,000 a year.
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Mortgage Interest Tax Credits
What’s the difference between a tax credit and a tax
deduction?
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•
Tax Credits = Reduction of tax liability or taxes owed
•
Tax Deductions = Reduction of taxable income
Mortgage Interest Tax Credits
Home buyer receives a refund every year? They may still benefit.
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Mortgage Interest Tax Credits
Effect of an MCC on income tax liability
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Mortgage Interest Tax Credits
No refund every year? They may also benefit.
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Mortgage Interest Tax Credits
Effect of an MCC on income tax liability
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Mortgage Interest Tax Credits
An MCC allows you to take advantage of both forms of savings:
•
All home owners may take deductions but tax credits are only
available to holders of an MCC
•
In this example, they can take the remaining mortgage interest in
the amount of $3,625 ($5,625 - $2,000 credit) plus any property
taxes, etc. as a deduction
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Mortgage Interest Tax Credits
Mortgage Credit Certificate (MCC)
• It’s the homebuyer’s responsibility to claim the mortgage
interest credit on their federal income tax return every year
• The credit cannot be larger than the annual federal income tax
liability, after all other credits and deductions have been
considered
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Mortgage Interest Tax Credits
Any unused tax credit may be carried forward up to three years
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Mortgage Interest Tax Credits
Example:
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Mortgage Interest Tax Credits
Mortgage Credit Certificate (MCC)
•
The MCC can be used by itself or with our DPA program.
•
If MCC is used with other mortgage loan product:
o Must be fixed rate mortgage – no requirement on term
or product
o Lender can sell loan to any investor/servicer
o No minimum credit score or maximum DTI
requirements
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Mortgage Interest Tax Credits
MCC Requirement ONLY:
Homebuyers using the MCC Program could
potentially be subject to Recapture Tax if ALL three
of the following occur:
1. Sell the home within 9 years,
2. Make a net profit on the sale, and
3. Income increases 5% every year borrower lived
in the home
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Mortgage Interest Tax Credits
A borrower using TSAHC’s MCC program may purchase any of the following type of homes:
Any Loan Type that allows
•
•
•
•
New or existing homes
Unit in a condo, townhouse, or PUD
An entire duplex, triplex, or fourplex (one unit must be owner-occupied)
Manufactured homes
Not allowed: Rental homes, co-ops, investment properties, vacation and/or second homes.
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Program Fees
DPA Program Fees
•
•
•
•
•
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MCC Program Fees
$250 Funding Fee
•
$200 Compliance Review
•
Fee
$75 Tax Service Fee
$10 Flood Transfer Fee
620-639 FICO, if applicable
o .50% for Gov’t
o .25% for HFA Preferred
$500 Issuance Fee
$200 Compliance Review
Fee
DPA/MCC Program Fees
•
•
•
•
•
•
$500 Issuance Fee
(FREE for Texas Heroes)
$250 Funding Fee
$200 Compliance Review Fee
$75 Tax Service Fee
$10 Flood Transfer Fee
620-639 FICO, if applicable
o .50% for Gov’t
o .25% for HFA Preferred
Lender Compensation
Lenders may collect all reasonable and customary fees and closing costs for either program
• All fees and charges must be listed on the Closing Disclosure
DPA Program
•
•
•
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Loans Originated under TSAHC’s DPA
Program will be purchased by Lakeview Loan
Servicing
Compensated 2.5% in SRP for all loans
Lenders may not charge origination or
discount points other than the origination
charge for FICO 620-639, if applicable.
MCC Program
•
•
Loans may be sold to any investor or retained
for servicing by the lender
Lenders are compensated like any other
internally originated loan
How Does an Individual Qualify?
1.
Profession and/or Income Level
Home Sweet Texas (up to 115% AMI)
•
Not profession-specific
Homes for Texas Heroes (Up to 115% AMI)
Teacher
College Professor at
Nursing or Allied Health Program
Corrections
Officer (TDCJ or
TJJD)
Teacher’s Aide
Veteran
County Jailer
School Librarian
Fire Fighter
Security Officer
School Nurse/Counselor
EMS Personnel
Peace Officer
Texas Heroes using our DPA/MCC combo program will receive a FREE MCC.
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How Does an Individual Qualify?
2. Borrower cannot exceed income based on County
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•
DPA Only – only 1003 qualifying income considered
•
MCC or DPA/MCC -household income considered (those that would sign deed of
trust)
How Does an Individual Qualify?
3. Underwriting/Credit Requirements: Borrowers are required to meet standard underwriting
requirements. We have the following overlays for our DPA program ONLY:
Loan Type
Minimum FICO
Origination Charge
FHA, VA or USDA Loans
620-639
.50%
FHA, VA or USDA Loans
640+
n/a
HFA Preferred Conventional
620-639
.25%
HFA Preferred Conventional
640+
n/a
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How Does an Individual Qualify?
4.
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Borrowers need to complete a homebuyer education course prior to closing on the
home loan.
•
A homeowner is 33% less likely to fall behind on their mortgage if they’ve taken a
home buyer education course
•
Visit www.texasfinancialtoolbox.com to find a course near your borrower
•
There may be a cost associated with this course.
How Does an Individual Qualify?
Type in
City
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How Does an Individual Qualify?
5.
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Work with an approved participating lender
How Does an Individual Qualify?
Unsure if a client qualifies? Take the Eligibility Quiz under the Home Buyers & Renters
section of our site at www.ReadyToBuyATexasHome.com.
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Important Takeaways
No need to be a first-time buyer to use TSAHC DPA
DPA is a TRUE GRANT, no need to be repaid – EVER!
No requirement to stay in the home any number of years
Borrower can purchase anywhere in Texas
We serve more than just Texas Heroes
Remember, anyone at or below 115% AMFI may be eligible
FREE MCC for Texas Heroes
Turnaround times are fast!
On average, TSAHC loans close within 30 days.
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TSAHC Pipeline
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Lender completes loan
reservation in the Lender
Portal at www.tsm-online.org.
All loans will be underwritten
by the lender.
Underwriter uploads the
Underwriter Certification Form
as a part of Pre-Compliance
package to the Lender Portal.
Lender delivers the PreCompliance Package to TSAHC
via the Lender Portal at least 5
days prior to closing.
Pre-Compliance Package is
reviewed/approved by TSAHC
(24-48hrs). A Compliance
Commitment Letter is made
available via the Lender Portal.
Lender submits the Funding
Request Form, Commitment
Letter and Closing Disclosure to
[email protected] at least
2 days prior to closing date.
Lender closes/funds the loan.
Lender submits PostCompliance Package to
TSAHC via the Lender Portal
within 5 days of closing
date.
Post-Compliance Package
reviewed/approved by
TSAHC. For DPA loans,
Servicer notified of
compliance approval and
loan purchased. For MCC
loans, certificate will be
issued.
Accessing Lender Portal
Participating lenders will reserve loans and submit compliance packages through TSAHC’s
Lender Portal at www.tsm-online.org.
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•
One person from each Lender’s organization will be designated the “TSAHC
Administrator”
•
The administrator is responsible for determining who within their company will
have access and as well as the level of access each employee will have
•
TSAHC does NOT create login credentials or reset passwords
Lender Portal
1. Login to the TSAHC Lender Portal at www.tsm‐online.org.
2. Click on Program Documents
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Lender Portal
• Download and print the “Step-by-Step Origination Procedures” document to help you
determine our timeline and the required documents for each program.
• Please refer to this document throughout the entire process.
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Lender Portal
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Lender Portal
• Use the “Qualified Census Tracts/Targeted Areas” document to help you determine whether or
not the property is in a Targeted area.
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Lender Portal
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Lender Portal
1. Select the “New Reservation” tab in the upper left corner
2. Select the appropriate Program from the list and complete the reservation form
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Lender Portal
3. Fill out all appropriate fields using the completed 1003.
4. Required fields are designated with a red asterisk.
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Lender Portal
5. Once the Mortgage Loan is reserved, you will have the option to view or print your reservation
confirmation.
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Lender Portal
Underwriter Responsibilities
1.
Confirm borrower qualifies per Program Guidelines
2.
Underwrite file according to product guidelines
• FHA, VA and USDA loans may be underwritten through:
o Automated Underwriting System (“AUS”),
o Fannie Mae’s Desktop Underwriter (“DU”), or
o Freddie Mac’s Loan Prospector (“LP”)
o Manual Underwriting allowed only on FHA
• (FHA manual underwrites require a minimum 640 FICO and will be subject to
43% Max DTI)
• HFA Preferred Conventional loans may be underwritten through:
o Fannie Mae’s Desktop Underwriter (“DU”) only
o No manual underwrites allowed
3. Upload the “Underwriter Certification Form” as a part of Pre-Compliance Package to the
Lender Portal. (Note that stand-alone MCC does not require this form)
• Form found by selecting the “PDF Docs” button associated with your loan on the Lender
Portal.
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Lender Portal
•
The Lender Portal allows lenders to complete and submit electronic documents.
• All documents must be uploaded electronically.
• No paper documents are required.
•
Click on the “PDF Docs” button pertaining to the specific loan reservation to access the
electronic documents.
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Lender Portal
•
Underwriters will select the “Underwriter’s Certification” Form. Then click “Generate Documents”.
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Lender Portal
•
The UW Form will appear with many fields pre-populated. Complete and/or update any blank
fields.
•
Once this is complete, click on the “Upload Package” button at the bottom of the UW Form.
•
This will automatically upload the Form to the “eDocs” section of that specific loan file.
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Lender Portal
•
Go back to the “Loan Status” button. NEVER use the back arrows or it will log you out!
•
Click the “eDocs” button associated with the loan to find the recently uploaded Underwriter’s
Certification Form.
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Lender Portal
•
You should see the uploaded UW Certification Form in the “Pre-Closing Compliance” section.
•
IMPORTANT: Click on the “Submit” button of this section.
•
If you do not hit the “Submit” button, TSAHC will NOT know that any documents were uploaded!
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Other Responsibilities
Processor Responsibilities
•
Upload Pre-Closing Compliance Package within 5 calendar days prior to closing
•
Commitment Letter Issued by TSAHC
Closer Responsibilities
•
DPA or DPA/MCC Loans: Complete and submit the “Funding Request Form”,
Commitment Letter and the final Closing Disclosure to [email protected] at least 2
business days prior to closing
•
Close and fund the loan according to Agency and Program Guidelines
•
Upload Post-Closing Compliance Package within 5 calendar days following loan closing
Shipper Responsibilities
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•
DPA or DPA/MCC Loans must be approved by TSAHC, delivered and purchased by
Lakeview Loan Servicing within 60 calendar days of loan reservation.
•
Once the Post- Closing Compliance Package has been approved by TSAHC, Lakeview Loan
Servicing will be authorized to purchase the loan (subject to Lakeview requirements)
and/or the MCC will be issued to the borrower
www.ReadyToBuyATexasHome.com
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Marketing Resources
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Marketing Resources
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Marketing Resources
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Marketing Ideas
Be a teacher, not a
salesman. Market
yourself by teaching.
TSAHC offers brochures that allow
you to market yourself by
marketing TSAHC programs.
Request FREE Brochures.
Suggested places to pass out
brochures:
•
•
•
•
Fire Stations
Police Departments
Public Schools
Texas Department of Criminal
Justice facilities
• EMS Stations
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Write a Blog, newsletter or
an article in another
newsletter, “Can I Buy a
House without a Down
Payment?”
Marketing Ideas
Utilize social media by
sharing TSAHC newsletter,
blog stories, Facebook or
Twitter posts.
Referral partners could be
real estate agents, financial
planners, and homeowner’s
insurance agents, loan
officers– anyone who has a
relationship with potential
homeowners.
Plan homebuyer events
with your referral
partners.
Realtors
•
Market to target audience that the Texas Heroes program provides
•
Build relationships with TSAHC’s top loan officers
Lenders
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•
Market to Realtors in nearby counties or rural counties where access to down
payment assistance programs is low. Our program is statewide so there is no
limitation on location.
•
Market to Realtors in counties where loan officers are far and few between.
Contact Us
Pictured from left to right:
Tim Almquist, Delia Davila,
Sarah Ellinor, and Joniel Crim
Homeownership Hotline: (877) 508-4611
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Training/Marketing Questions:
Compliance Questions:
Joniel Crim
(512) 477-3561
[email protected]
Tim Almquist
(512) 334-2156
[email protected]
Sarah Ellinor
(512) 220-1171
[email protected]
Delia Davila
(512) 334-2158
[email protected]
Proof of Completion
To receive login credentials to the Lender Portal:
1.
Type this URL into your browser: https://tinyurl.com/TSAHCmoduleI
2.
Complete Registration Form that appears
3.
Forward the confirmation email to your company’s program administrator*.
*Should you not know your company’s program administrator, please contact TSAHC and
we can point you in the right direction.
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