BUILD Loan Program
Ralph M. Perrey, Executive Director Tennessee Housing Development Agency Andrew Jackson Building Third Floor 502 Deaderick St., Nashville, TN 37243 www.thda.org
ORIGINATING AGENTS GUIDE REVISION 90 September 29, 2014 Remove and discard:
Replace with enclosed:
Page v (January 2014) ............................................................. Page v (Revised 10/01/14) Page 2 (January 2014) ............................................................. Page 2 (Revised 10/01/14) Page 3 (Revised 04/28/14) ...................................................... Page 3 (Revised 10/01/14) Page 4 (January 2014) ............................................................. Page 4 (Revised 10/01/14) Page 23 (January 2014) ........................................................... Page 23 (Revised 10/01/14) Page 49 (January 2014) ........................................................... Page 49 (Revised 10/01/14) Page 50 (January 2014) ........................................................... Page 50 (Revised 10/01/14) Page 51 (January 2014) ........................................................... Page 51 (Revised 10/01/14) Page 52 (January 2014) ........................................................... Page 52 (Revised 10/01/14) Request for Loan Purchase with Acknowledgement and Certification Form HO-0444 (05/13) ........................................................ Form HO-0444 (10/14) Legally Enforceable Obligation Letter Form HO-0476 (10/13) ........................................................ Form HO-0476 (10/14) Underwriting Submission Checklist Form HO-0549 (01/14) ........................................................ Form HO-0549 (10/14) Great Choice Plus Application for Assistance Form HO-0573 (01/14) ........................................................ Form HO-0573 (10/14) Add Form: Disclosure of Loan Terms for Great Choice Plus .................. Form HO-0574 (10/14)
EFFECT OF CHANGE
Effective October 1, 2014, on all loan submissions requiring downpayment assistance, the Great Choice Plus second mortgage loan will be a 0% interest, deferred, forgivable second mortgage loan. Repayment is required if the borrower sells or refinances the home before year 15 of the loan. The down payment assistance is forgiven at 20% per year after the borrower lives in the home for 10 years, and fully forgiven by the end of 15 years. This change to the Great Choice Plus second mortgage loan eliminates monthly payments on behalf of the borrower, and the need for the Servicer to collect monthly payments.
Page 2 This change also eliminates the need for a Great Choice Plus second mortgage loan application (1003), HUD-1, GFE and Truth and Lending Disclosure. In their place the Disclosure of Loan Terms for Great Choice Plus Second Mortgage Loan, Form HO-0574, will be mandatory for the borrower to sign prior to closing. Please refer to the special notice from the Secretary of HUD to Lenders and HFAs, “Exemptions from Coverage Under Sections 4 and 5 of RESPA for Certain Subordinate Loans Provided By Assistance Programs for Low-and Moderate Income People”, dated October 10, 2010.
Originating Agents Guide
JANUARY 2014 Latest Revision: 10/01/14
Page 8.4
Required Documents For A Complete Closed Loan File........................................................ 44 Closed Loan Submission Checklist ..................................................................................... 44 Request For Loan Purchase with Acknowledgement and Certification .............................. 44 Commitment ........................................................................................................................ 45 Original Note ...................................................................................................................... 45 Deed of Trust ....................................................................................................................... 45 Affidavit of Affixation ......................................................................................................... 45 Assignment .......................................................................................................................... 45 Title Insurance Policy/Endorsements................................................................................... 45 Warranty Deed ..................................................................................................................... 46 HUD-1 ................................................................................................................................. 46 Truth in Lending .................................................................................................................. 46 Hazard Insurance ................................................................................................................. 46 Termite Inspection/Treatment Certificate ............................................................................ 46 Flood Insurance.................................................................................................................... 46 Commitment Conditions ...................................................................................................... 46 Copy of MIC/LGC; USDA/RD 1980-17, or as Applicable ................................................. 47 Final Loan Application (1003)............................................................................................. 47
8.5
Loan Repurchase ..................................................................................................................... 47 Repurchase Obligation ......................................................................................................... 47 Repurchase Price.................................................................................................................. 48 Repurchase Procedure .......................................................................................................... 48
8.6
Additional Information............................................................................................................ 48 THDA Reports ..................................................................................................................... 48
PART IV ADDITIONAL INFORMATION SECTION 9: THDA FORMS AND INSTRUCTIONS Application Affidavit (HO-0450) .......................................................................................... 49 Veteran Exemption Application Affidavit (HO-0460) .......................................................... 49 Notice to Applicants Federal Recapture Requirements (HO-0448)........................................... 49 Seller Affidavit (HO-0451).............................................................................................................. 50 Application for Assistance (HO-0573) ................................................................................ 50 Online Homeownership Education Borrower Information (Form HBEO-100) .................. 50 Online Homeownership Education Request (Form HBEO-200) ........................................ 50 Buyer Profile (HO-0439) ................................................................................................................. 50 Underwriting Submission Checklist (HO-0549) .......................................................................... 50 Affidavit of Affixation (HO-0453) ........................................................................................ 51 Legally Enforceable Obligation Letter (HO-0476) .............................................................. 51 Closed Loan Submission Checklist (HO-0541) ............................................................................ 51 THDA Rider (HO-0440) .................................................................................................................. 51 Request for Loan Purchase with Acknowledgement and Certification (HO-0444) .................................................................................................... 52 Disclosure of Loan Terms for Great Choice Plus Second Mortgage Loan.......................... 52
THDA Originating Agents Guide Revised 10/01/2014
Page v
Single Family General Information ............... 615-815-2100 Toll-Free Voice Mail ..................................... 1-800-228-8432 Fax (24 hours a day, 7 days a week) ............. 615-564-2881
Staff Lindsay Hall, Senior Director of Single Family Programs
Telephone
Email Address
615-815-2080
[email protected]
Nancy Herndon, Assistant to Senior Director of Single Family
615-815-2101
[email protected]
Bill ClenDening, Asst. Director Single Family Programs
615-815-2099
[email protected]
Marvene Carey, Asst. Director Single Family Programs
615-815-2079
[email protected]
Rhonda Ronnow, Underwriting Manager
615-815-2111
[email protected]
Vicki George, Homebuyer Education Coordinator
615-815-2085
[email protected]
Jayna Johnson, Homebuyer Education Specialist
615-815-2019
[email protected]
Sharon Pommer, Servicing Liaison
615-815-2078
[email protected]
Ginny Boles, Servicing Coordinator
615-815-2097
[email protected]
Steven Lamb, Programs Administrator
615-815-2083
[email protected]
Cynthia Peraza, Program Development Coordinator
615-815-2112
[email protected]
Sharon Campbell, Underwriter
615-815-2088
[email protected]
Pam Norris, Underwriter
615-815-2087
[email protected]
Tammy Walker, Underwriter
615-815-2091
[email protected]
Lynne Walls, Underwriter
615-815-2089
[email protected]
Bonnie Fowler, Closing Coordinator
615-815-2081
[email protected]
Chuck Pickering, Closing Manager
615-815-2086
[email protected]
Rhonda Ellis, Mortgage Loan Specialist
615-815-2103
[email protected]
Caroline Rhodes, Mortgage Servicing Specialist
615-815-2098
[email protected]
Sandy Kist, Mortgage Servicing Specialist
615-815-2092
[email protected]
Debbie Couch, Closing Coordinator
615-815-2096
[email protected]
Debbie Reeves, Dir. Comm. Outreach & Business Development
626-815-2152
[email protected]
THDA Originating Agents Guide Revised 10/01/2014
Page 2
1.4. CURRENT THDA LOAN PROGRAMS A.
Great Choice Loan Program This program is designed for low and moderate income borrowers. Great Choice offers a low interest rate loan secured by a first mortgage with the option of downpayment and closing cost assistance to a maximum of 4% of the purchase price at a 0% interest rate, 15 year deferred, forgiveable loan secured by a second deed of trust. THDA allows the following loan types: FHA, USDA, and VA at the maximum loan limits based on insurer or guarantors guidelines. THDA also allows conventional uninsured loans with a maximum loan to value of 78%. Maximum Household Income
Varies by county
Maximum Acquisition Cost (Including all incidentals)
Varies by county
Maximum LTV
Subject to FHA, VA, and USDA/RD Guidelines. Conventional Loans 78% LTV or less.
Interest Rate
4.2% fixed rate, subject to change
Loan Term
30 years
Loan Types
FHA, VA, USDA/RD, Conventional
Mortgage Insurance or Guarantee
As required by loan type
Buydowns
Not allowed
Assumable
Subject to qualifying
Pre-Payment Penalty
No penalty
Subject to Recapture
Yes
Required Reserve
As required by loan type
Minimum Investment
As required by loan type
Closing Costs
May come from borrower, seller, a gift, or as required by loan type
Down Payment
As required by loan type
First Time Homebuyer Rule
Borrower must not have an interest in their primary residence within 36 months of application unless the property to be financed with the loan is in a targeted area or the borrower meets the Veteran’s exemption. (See THDA website for targeted areas.)
Homebuyer Education
Not required
Origination Fee
Up to 2% maximum
Discount Point
Up to .25
THDA Originating Agents Guide Revised 10/01/2014
Page 3
B.
Great Choice Plus: Down Payment/Closing Cost Assistance Loan This loan offers down payment and closing cost assistance to first-time homebuyers at no interest but secured by a second deed of trust. This loan is available only with the THDA Great Choice first mortgage loan. The Great Choice Plus loan is a 0% interest rate, deferred payment, forgiveable second lien. The second mortgage loan is forgiven from year 11 through year 15 at 20% per year.
Eligible Borrower Maximum Household Income Maximum Loan Amount Interest Rate Loan Term Underwriting Criteria
Pre-Payment
Allowable Fees Closing Documents Homebuyer Education
Servicing
THDA Originating Agents Guide Revised 10/01/2014
Homebuyer obtaining THDA Great Choice Loan THDA Great Choice Program Limits apply Up to 4% of Purchase Price 0% 15 year deferred, forgiveable Borrowers must have 620 minimum credit score. Must meet all other THDA Underwriting Guidelines. Manual underwriting allowed per THDA guide.
The Great Choice Plus loan is due in full upon 1st mortgage payoff, assumption, or refinance prior to year 11. From year 11 through year 15, the loan is forgiven at 20% per year. No prepayment penalty. No assumption of Great Choice Plus allowed, with the exception of a VA assumption. Normal and customary 2nd mortgage fees Great Choice Plus Note and Deed of Trust in the name of THDA
Required prior to closing on THDA Great Choice and Great Choice Plus Loans No monthly second mortgage payment is collected.
Page 4
2. Great Choice Plus The Great Choice Plus loan is a 0% interest rate, deferred payment, forgiveable second lien. The second mortgage loan is forgiven from year 11 through year 15 at 20% per year. F.
Prepayment Penalty Prepayment penalties are not permitted on THDA loans.
G.
Late Charge
Late charges, if any, must be reflected in the Deed of Trust and Note and must be in compliance with program insurer’s guidelines. H.
Origination Fee Only the authorized Origination Fee and Discount Points may be charged.
I.
Assumptions
THDA first mortgage loans are assumable only if the person assuming the THDA loan meets all THDA program requirements applicable to new THDA loans, and the assumption application is approved by THDA. Assumption applications are processed by THDA or the THDA Servicer of the loan to be assumed. THDA second mortgage loans are not assumable with the exception of a VA assumption. 4.4 FEDERAL RECAPTURE All THDA loans closed after December 31, 1990, are subject to the federal recapture tax. The recapture tax is designed to recapture a portion of the subsidy associated with THDA loans. Recapture tax liability must be determined at the time the property is sold, if the sale occurs within nine years from the closing of the THDA loan. Refinancing a THDA loan does not trigger recapture tax liability, however, if the property is sold after the date of refinancing but before the ninth anniversary of the THDA loan closing, recapture tax liability must be determined at the time of sale. THDA Originating Agents notify the Applicant about recapture tax at the time a THDA loan application is made by securing their signature on the Notice To Applicants Federal Recapture Requirements. Whether the recapture tax results in an actual payment to the federal government depends on a number of factors, including changes in family income, gain on the sale of the property, the number of years the THDA loan is outstanding, and the original THDA loan amount. The exact amount to be paid, if any, cannot be determined until the property is sold. A THDA loan, originally closed after December 31, 1990, that is assumed within nine years from the date of the original THDA loan closing is subject to the recapture tax for an additional nine year period beginning on the date of the assumption. For further information regarding the federal recapture tax, advise Applicants or Borrowers to contact their tax professional. Written information is available by ordering IRS Form 8828 “Recapture of Federal Mortgage Subsidy” and its accompanying instructions from any IRS office or through the IRS website at www.irs.gov.
THDA Originating Agents Guide Revised 10/01/2014
Page 23
SECTION 9: THDA FORMS AND INSTRUCTIONS As a result of Tax Code requirements, THDA must require certain forms. Application files or closed loan packages that do not contain fully executed THDA forms, as required, will not be accepted by THDA. These forms must be included in THDA application files and in THDA closed loan packages as indicated in this Guide. THDA forms are in addition to the typical forms utilized in the mortgage industry. These forms are to be considered part of this Guide. THDA forms may not be altered. THDA forms may not be distributed to a lender who is not an Originating Agent or to any other unauthorized individual or entity. Detailed instructions for completion of each THDA form follows in the order that they are typically encountered in the lending process: Application Affidavit HO-0450 (03/11) Veteran Exemption Application Affidavit HO-0460 (02/07) Notice to Applicants Federal Recapture Requirements HO-0448 (09/99) Seller Affidavit HO-0451 (09/99) Application for Assistance HO-0573 (10/14) Online Homeownership Education Borrower Information HBEO-100 (06/13) Online Homeownership Education Request HBEO-200 (06/13) Buyer Profile HO-0439 (04/10) Underwriting Submission Checklist HO-0549 (10/14) Affidavit of Affixation HO-0453 (12/06) Legally Enforceable Obligation Letter HO-0476 (10/14) Closed Loan Submission Checklist HO-0541 (11/13) THDA Rider HO-0440 (08/03) Request for Loan Purchase with Acknowledgement and Certification HO-0444 (10/14) Disclosure of Loan Terms for Great Choice Plus Second Mortgage Loan HO-0573 (10/14) APPLICATION AFFIDAVIT HO-0450 (03/11) VETERAN EXEMPTION APPLICATION AFFIDAVIT HO-0460 (02/07) (If Applicable) The Application Affidavit or Veteran Exemption Application Affidavit (if applicable Application Affidavit must be executed by each applicant and non-qualifying spouse. The household income figure to be provided in item #4 is the maximum allowable income for the size of the applicant’s household and location of property. The acquisition cost figure for Great Choice is to be provided in item #5 is the maximum THDA acquisition cost for the county in which the property is located. The original Application Affidavit or Veteran Exemption Application Affidavit is required by THDA. All changes or whiteouts must be initialed by the Applicant(s). Each Application Affidavit or Veteran Exemption Application Affidavit, must be executed and notarized within the State of Tennessee; however, in rare circumstances, an Application Affidavit or Veteran Exemption Application Affidavit may be executed and notarized outside the State of Tennessee, such as when a person is a member of the armed forces, is stationed outside the state and is unable to be present while the application is being processed. NOTICE TO APPLICANTS FEDERAL RECAPTURE REQUIREMENTS HO-0448 (09/99) This form is mandatory for all THDA loan applications. The Applicant and all Co-Applicants must sign and date the form at the time of application. Provide a copy to the Applicant. Enclose the original signed and dated form in the application file when submitted for THDA underwriting.
THDA Originating Agents Guide Revised 10/1/2014
Page 49
SELLER AFFIDAVIT HO-0451 (09/99) The seller of the property must complete a Seller Affidavit for each application file submitted to THDA. The Seller Affidavit is to assist in determining whether the purchase of the property involves more than the purchase price specified in the sales contract. The seller must sign and date the Seller Affadavit, and it must be notarized. Enclose the original Seller Affidavit in the application file when submitting for THDA underwriting. In the absence of the original Affidavit at the time of loan approval, a prior to closing contingency will be THDA receipt of the original. APPLICATION FOR ASSISTANCE HO-0573 (10/14) This form must be completed and the original included in each loan application package submitted under the Great Choice Plus Loan Program. The application should indicate the total FHA loan amount including MIP, the exact (dollars and cents) amount of assistance based on 4% of the referenced loan amount, the anticipated closing date, and the complete name of the settlement agent. This form must be signed by the Borrower(s) and an authorized representative of the lender. ONLINE HOMEOWNERSHIP EDUCATION BORROWER INFORMATION FORM HBEO-100 The Originating Agent is responsible for reviewing the Online Homeownership Education Borrower Information Form with the prospective online education borrower. This form provides key information about the eHomeAmerica online product and requirements for the borrower to complete the course. ONLINE HOMEOWNERSHIP EDUCATION REQUEST FORM HBEO-200 To request approval for online homeowner education for a borrower, the Originating Agent must complete and send the Online Homeownership Education Request Form HBEO-200 and the Online Homeownership Education Borrower Information Form HBEO-100 which has been executed by the borrower to THDA by fax to 615-564-1229 or email to [email protected]. BUYER PROFILE HO-0439 (04/10) This form is critical to facilitate accurate reports by THDA. Complete this form accurately and completely and enclose it the application file when submitted for THDA underwriting. UNDERWRITING SUBMISSION CHECKLIST HO-0549 (10/14) Use this form as a cover sheet for all application files submitted to THDA. Follow the checklist closely and complete all information. Items omitted may cause the application file to be returned for completion and resubmission. Do not change the size of this form. The checklist has five main sections: 1. General Information. 2. THDA Program Eligibility. Must include original documents, notarized as indicated. 3. Great Choice Plus Loans/Grants/Downpayment/ClosingCost Assistance. Must be documented as indicated, if applicable. 4. Credit Package. Must include documentation, as indicated. Originating Agent Information: Provide complete information, including the Originating Agent’s four-digit O. A. Number as assigned by THDA. An omitted or incorrect Originating Agent number and
THDA Originating Agents Guide Revised 10/01/2014
Page 50
omitted or incorrect branch address are the primary causes of misdirected commitments and misdirected funding checks. Primary Applicant: Include primary Applicant’s name as it will appear on all documents. It must be accurate and consistent. Property Address: Must be accurate and consistent on all documents. Submission Purpose: As indicated, this form may be used for purposes in addition to the initial submission of an application file. Program Type: Indicate the desired THDA loan program. Loan Type: Indicate whether the loan type is FHA, VA, Conventional or USDA/RD. Property Type: Indicate the correct property type. Check the appropriate block to indicate a residence that is a single family detached or a condominium. Check “Other” and indicate in the blank provided if the residence is a 2, 3 or 4 family home, or is a PUD, townhouse, zero lot line, modular or manufactured home. THDA Program Eligibility/Credit Package A check mark, an “X” or “N/A” must be indicated for each document listed on the form. Refer to Section 6.2 for additional information. An Originating Agent staff member’s signature, printed or typed name and telephone number must appear at the bottom of the checklist. Without this information, the file is considered incomplete. In addition, if this information is omitted, THDA does not know who to call if questions arise. AFFIDAVIT OF AFFIXATION HO-0453 (12/06) An original Affidavit of Affixation is required on all manufactured home loans and must be recorded as a separate document. It cannot be recorded with or attached to the Deed of Trust for recordation. LEGALLY ENFORCEABLE OBLIGATION LETTER HO-0476 (10/14) For any Great Choice loans insured by FHA/HUD the Originating Agent will receive a Legally Enforceable Obligation Letter (LEOL) attached to the THDA Loan Commitment. HUD/FHA requires that THDA provide a Legally Enforceable Obliation Letter when THDA has agreed to provide DPA funds in the form of the Great Choice Plus loan. The Borrower(s) is to sign the LEOL at closing and a copy of the executed LEOL must be sent back to THDA with the initial closing submission package in order for THDA to purchase the Great choice Plus loan. The Originating Agent is to retain the original LEOL in their loan file to accompany the FHA insurance application associated with the first mortgage. CLOSED LOAN SUBMISSION CHECKLIST HO-0541 (11/13) Use this form when submitting all closed loan files to THDA, regardless of the source of funding. This form can also be used as a checklist for submission of follow-up documentation. Complete all items on this form. Do not change the size of this form. THDA RIDER HO-0440 (08/03) The THDA Rider must be completed, executed, attached to and recorded with the deed of trust for all THDA first mortgage loans, regardless of loan type. The THDA Rider must be signed by all Borrowers who are required to sign the first deed of trust and recorded with the deed of trust.
THDA Originating Agents Guide Revised 10/01/2014
Page 51
REQUEST FOR LOAN PURCHASE WITH ACKNOWLEDGEMENT AND CERTIFICATION HO-0444 (10/14) All loans closed by the Purchase Method must be accompanied by an executed Request For Loan Purchase with Acknowledgement and Certification when delivered to THDA. By submitting a loan file for purchase by THDA, each Originating Agent is deemed to affirm the Acknowledgement and Certification appearing on the master form of the Request For Loan Purchase with Acknowledgement and Certification with respect to each loan file submitted regardless of whether the Acknowledgement and Certification is included with the form submitted with a particular loan file. Provide all information indicated. Check the appropriate box indicating whether the loan file is complete in all respects or not. Sign and date where indicated, print name and title, and provide telephone number. Omitted information may cause the loan file to be returned to the Originating Agent. DISCLOSURE OF LOAN TERMS FOR GREAT CHOICE PLUS SECOND MORTGAGE LOAN HO-0574 (10/14) This disclosure is required to be presented to the Borrower by the Originating Agent before settlement. This disclosure meets the exemption requirements under Secretary of HUD’s special notice “Exemptions from Coverage Under Sections 4 and 5 of RESPA for Certain Subordinate Loans Provided by Assistance Programs for Low to Moderate Income People” dated October, 2010. This disclosure is required if a GFF/HUD-1 is not provided on the subordinate second mortgage loan.
REMAINDER OF THIS PAGE LEFT BLANK INTENT
THDA Originating Agents Guide Revised 10/01/2014
Page 52
Tennessee Housing Development Agency (THDA) Request for Loan Purchase with Acknowledgement and Certification Originating Agent Name and Address:
O.A. Number:
_____ _____ _____ _____
_______________________________________ _______________________________________ _______________________________________
Contact Person: ______________________________ Phone Number: (_____)________________________ Fax Number: (_____)________________________
Must be completed in full. Do not attach wiring information on a separate page. Wire To: Receiving Bank Routing #__ __ __ __ __ __ __ __ __
O.A. Account
Receiving Bank Name: Receiving Bank Address:
Special Instructions: __________________ ___________________________________ ___________________________________
THDA Loan Number:
____________________________ ____________________________ ____________________________
__ __ __ __ __ __ __ __
Loan Amount:
# __ __ __ __ __ __ __
$__________________
THDA 2nd Mortgage Loan Number: __ __ __ __ __ __ __ __
2nd Mortgage Loan Amount: $_____________
Primary Borrower:
Interest Rate:
_______________________________
Property Address:
__________________%
nd
_______________________________
2 Mortgage Interest Rate: _______________%
_______________________________
Closing Date:
_____________________
_______________________________
1st Payment Due:
_____________________
We hereby request THDA to purchase the attached loan, which is: (Check applicable box. If not checked, the second box applies.)
Complete in all respects.
Complete except for items indicated by “ ” on the enclosed Closed Loan Submission Checklist, which items shall be delivered to THDA by the 120th day after the closing date for the referenced loan. If such items are not delivered, we agree to immediately repurchase this loan at the option of and upon notice from THDA, or, if loan has not been purchased by THDA, we acknowledge that the loan will not be eligible for purchase by THDA. These conditions also apply to a THDA second mortgage, if included with this transaction.
*
Originating Agent acknowledges receipt of the master form from THDA which is titled “Tennessee Housing Development Agency Request for Loan Purchase with Acknowledgement and Certification” on one side and titled “Acknowledgement and Certification” on the other side. By signing below, Originating Agent affirms all matters stated under the title “Acknowledgement and Certification” with respect to the mortgage loans for which this purchase request is being made, regardless of whether the items appearing under the title “Acknowledgement and Certification” on the master form appear on the reverse side of this request for loan purchase.
_________________________________________________
_________________________________
Originating Agent Authorized Signature
Date
__________________________________________________________________________________________________ Print Name
Title
Phone Number
FOR THDA USE ONLY Settlement Date:
____________________
$ _________________
Principal Loan Amount
Issue: ___________________________
$ ___________________
Principal Loan Amount 2nd Mortgage
Loan Type: _______________________
_________________ _________________ = _________________
+ or - Interest from ____________ to ____________
Servicer: _________________________
Other: _____________________________________
THDA Closer: ____________________
Net Wire, this loan
_________________________________________
______________________________
Authorized By
Date
HO-0444 (10/14)
Side 1 of 2
Tennessee Housing Development Agency (THDA) Request for Loan Purchase with Acknowledgement and Certification A.
THDA Acknowledgement In connection with the mortgage loan identified by the THDA Loan Number on the Request for Loan Purchase (the “Mortgage Loan”), THDA acknowledges the following:
B.
(1)
The Originating Agent identified on the reverse side of this form (the “O.A.”) is to deliver an original promissory note and related documents evidencing the Mortgage Loan to THDA for THDA's consideration in purchasing the Mortgage Loan;
(2)
The promissory note and related documents evidencing the Mortgage Loan may be subject to a security interest pursuant to arrangements the O.A. may have made with other financial institutions;
(3)
If actually received, THDA will hold the promissory note and related documents evidencing the Mortgage Loan for the benefit of the O.A. until such time as THDA decides whether or not to purchase the Mortgage Loan. If THDA decides to purchase the Mortgage Loan, THDA will promptly wire funds to the O.A. or on behalf of the O.A. in accordance with information supplied by O.A. with each individual Request for Loan Purchase submitted to THDA. Thereafter, the Mortgage Loan will be the sole property of THDA not subject to claims of any other parties whatsoever. If THDA decides not to purchase the Mortgage Loan, THDA will promptly return the original promissory note and related documents evidencing the Mortgage Loan to the O.A. in accordance with the information supplied by O.A. with each individual Request for Loan Purchase submitted to THDA. Thereafter, THDA will have no further obligation with respect to the Mortgage Loan; and
(4)
THDA does not agree to and will not be bound by the terms and conditions contained in any other correspondence or documents from the O.A. or from any other entity on behalf of the O.A. with respect to the Mortgage Loan.
Originating Agent Mortgage Purchase Certification Pursuant to T.C.A. Section 13-23-118 and the Originating Agents’ Guide and with respect to each Mortgage Loan, O.A., by and through its duly authorized representative whose signature appears on each Request for Loan Purchase, hereby certifies as follows: (1)
The unpaid principal balance of the promissory note evidencing the Mortgage Loan and the interest rate thereon have been accurately stated to THDA;
(2)
The amount of the unpaid principal balance of the Mortgage Loan is justly due and owing;
(3)
O.A. has no notice of the existence of any counterclaim, offset or defense asserted by the person to whom the Mortgage Loan was made or their respective successor in interest;
(4)
The Mortgage Loan is evidenced by a promissory note and a deed of trust which has been properly recorded with the appropriate public official;
(5)
The deed of trust given to secure the Mortgage Loan constitutes a valid first lien on the real property described in the deed of trust subject only to real property taxes not yet due, installments of assessments not yet due, and easements and restrictions of record which do not adversely affect, to a material degree, the use or value of the real property or improvements thereon;
(6)
The Mortgage Loan, when made, was lawful under state law and/or federal law, whichever governs the affairs of O.A. and would be lawful on the date of purchase by THDA if made by O.A. on that date in the amount of the then unpaid principal balance;
(7)
None of the persons to whom the Mortgage Loan was made are in default in the payment of any installment of principal or interest, escrow funds, real property taxes or otherwise in the performance of their obligations under the promissory note or deed of trust given to evidence and secure the Mortgage Loan and have not, to the knowledge of O.A., been in default in the performance of any such obligation for a period of longer than sixty (60) days during the life of the Mortgage Loan; and
(8)
Improvements to the real property described in the deed of trust securing the Mortgage Loan are covered by valid and subsisting policy of insurance issued by a company authorized to issue such policies in the state of Tennessee and providing fire and extended coverage to an amount not less than ninety percent (90%) of the insurable value of the improvements to the real property.
(9)
Once THDA wires funds in accordance with the instructions supplied by O.A. with each Request for Loan Purchase, the promissory note, deed of trust and related documents evidencing the Mortgage Loan will not be subject to any security interest granted to any other party whatsoever.
O.A. acknowledges that it shall be liable to THDA for any damages suffered by THDA by reason of the untruth of any representation or the breach of any warranty set forth above and, in the event that any representation shall prove to be untrue when made or in the event of any breach of warranty, O.A. shall, at the option of THDA, repurchase the Mortgage Loan for the original purchase price adjusted for amounts subsequently paid thereon, as THDA may determine.
Side 2 of 2
Legally Enforceable Obligation Letter For HUD Mortgagee Letter 2013-14 and HUD Handbook 4155.1 5.B.5.a Gift Letter
[Date] [Originating Lender] [Street Address] [City, State Zip Code]
Re:
The “Second Mortgage Loan” is: Loan Type: Borrower: Property Address: Second Mortgage Loan Amount: Second Mortgage Loan Terms: Associated First Mortgage Loan:
THDA Great Choice Plus Loan [ ] [ ] No greater than [$ 15 years deferred with 0% interest rate. THDA Great Choice Loan
]
Dear Sir or Madam: As required by Mortgagee Letter 2013-14 from the U.S. Department of Housing and Urban Development, this letter documents that the Tennessee Housing Development Agency (“THDA”), a political subdivision and instrumentality of the state of Tennessee, has incurred a legally enforceable obligation, in accordance with the requirements of the THDA commitment letter issued with respect to the Second Mortgage Loan and the Associated First Mortgage Loan, to provide the funds for the borrower’s required Minimum Cash Investment at or before closing under its Great Choice Plus Loan Program on the terms and in the amount referenced above. You must maintain this letter in your file and you must also satisfy the requirements in the last paragraph of this letter to maintain the FHA insurability of the Associated First Mortgage Loan referenced above. THDA hereby agrees to purchase the Second Mortgage Loan described above which will be made by [Originating Lender] (whether closing in THDA’s name or in the name of [Originating Lender]) under THDA’s Great Choice Plus Loan Program. Prior to applying for FHA insurance on the Associated First Mortgage Loan, [Originating Lender] must deliver to THDA the following documents:
Page 1 of 2 HO-0476 (10.14)
Page 2
1. Fully executed original note for the Great Choice Loan, endorsed to THDA; 2. A copy of the fully executed and notarized original Deed of Trust for the Great Choice Loan with all applicable Riders (The original Deed of Trust for the Great Choice Loan must be submitted to THDA immediately following recordation); 3. Fully executed original note for the Great Choice Plus Loan, endorsed to THDA; and 4. A copy of the fully executed and notarized original Deed of Trust for the Great Choice Plus Loan with all applicable Riders (The original Deed of Trust for the Great Choice Plus Loan must be submitted to THDA immediately following recordation).
__________________________________ Grantor Name (Signature) Tennessee Housing Development Agency
__________________________________ Grantor Name (Printed) Tennessee Housing Development Agency
__________________________________ Grantee Name (Signature) Borrower
__________________________________ Grantee Name (Printed) Borrower
__________________________________ Grantee Name (Signature) Co-Borrower
__________________________________ Grantee Name (Printed) Co-Borrower
Page 2 of 2 HO-0476 (10.14)
Tennessee Housing Development Agency (THDA) Underwriting Submission Checklist OA Number: _____ _____ _____ _____ OA Name: __________________________________________________ OA Address: ________________________________________________ ___________________________________________________________
Primary Applicant: _______________________________________ Property Address: ________________________________________ _______________________________________________________ Applicant’s Email________________________________________
Submission Purpose: Program Type: Initial Great Choice Submission Great Choice-1st Mortgage Supplemental documents Great Choice Plus-2nd Mortgage Updated documents Homeownership for the Brave
Loan Type: Property Type: FHA Single Family Detached VA Condo USDA/RD Manufactured Home Conventional Other____________________
PLEASE ASSEMBLE PACKAGE IN ORDER LISTED BELOW
1. 2. 3 4. 5. 6. 7. 8.
THDA PROGRAM ELIGIBILITY Buyer Profile Original Application Affidavit(s), Veteran Exemption Application Affidavit Original Seller Affidavit (notarized) Signed and Dated Tax Returns with all schedules and W-2s for the most recent tax year including non-qualifying spouse IRS Non-Filing Confirmation for most recent tax year including non-qualifying spouse Notice to Applicants Federal Recapture Requirements (signed copy) Homebuyer Education Certification and Online Homeownership Education Approval and Referral Form HBEO-300 (if applicable) Great Choice Plus Loan Program Application for Assistance CREDIT PACKAGE
9. FHA Loan Underwriting and Transmittal Summary with condition sheet, AND Form 92900A p3, signed by DE Underwriter and DU or LP findings 10. USDA/RHS #1980-18 11. Typed Transmittal Summary (1008) signed by underwriter with DU or LP findings within 90 days of AUS or run date 12. VA/Loan Analysis Worksheet Approval OR VA Certificate of Commitment/DD-214 or DD-4 (if applicable) 13. Initial Good Faith Estimate 14. Final Loan Application (Typed URLA) 1003 (3 year residency should be stated) 15. Initial Interviewer's Signed Loan Application 1003 (3 year residency should be stated) 16. Disclosure of Loan Terms for Great Choice Plus second mortgage (if applicable) 17. Credit Report and credit explanation letters (if applicable) 18. Final Divorce Decree/Marital Dissolution (if applicable) 10. Verification of Court Ordered Child Support/Parenting Plan 20. Verification of SSI or Other Assistance 21. Verifications of Employment (verbal is unacceptable) 22. Most Recent Pay Stub (within past 30 days) 23. Verifications of Prior Employment (telephone verification is acceptable) 24. Self-Employment Cash Flow Worksheet, P & L, 2 years Business Tax Returns (corp. or partnership or sole prop.) 25. Verification of Deposit OR Borrower's Bank Statements for the previous two months 26. Gift Letter 27. Sales Contract and Addendum (Copy) 28. Appraisal Report (URAR) and Condition Sheet with VC Sheet/USDA-RD Conditions, and executed conditional commitment (928005.b), VA CRV 29. Final Inspection and Legible Photos of Subject Property (front, rear, street) and Photos or Photocopies of comparable sales 30. Flood Notification (if applicable, signed by Applicant or certified date mailed to Applicant) (Copy) 31. Grant/Down payment assistance approval letters 32. Original Certificate of Title or Original Manufactured Certificate of Origin (Mobile/Manufactured Homes) 33. FHA 203(h) Proof of permanent residence (if applicable) 34. FHA 203(h) Proof of destruction of residence (if applicable) THDA RESERVES THE RIGHT TO REQUEST ADDITIONAL DOCUMENTATION TO EVALUATE THIS LOAN APPLICATION. The undersigned, an authorized representative of the OA referenced above, hereby certifies and warrants as follows: (i) the information accompanying this submission has been verified and corroborated as required by THDA; (ii) all requirements of applicable federal and/or state law have been met, including, without limitation, all disclosures and requirements in the Federal Reserve Board "Rule" and the Dodd-Frank Act; (iii) the Applicant referenced above and the property proposed for purchase by the Applicant meet all applicable THDA mortgage loan eligibility and program guidelines; and (iv) to the extent this submission is electronic, all documents and affidavits required to be originals or with original signature were obtained.
________________________________________
____________________________________________
____________________
Originating Agent Authorized Signature
Print Name and Title
Date
Phone No. (_____)_____________________
Fax No. (_____)____________________
Email address _____________________________________
____________________________________________
________________________________________________________________
Loan Originator Name
Loan Originator Email
HO-0549 (10.14)
Tennessee Housing Development Agency (THDA) Great Choice Plus Loan Program Application for Assistance
Borrower I/We the undersigned borrower(s), are applying for the Great Choice Plus loan. The second mortgage will be used for down payment and closing costs assistance under the terms of the Great Choice Plus Program. To induce THDA to provide such assistance, I/we certify as follows: a.
I/We have applied for an FHA, VA, or USDA/RD THDA funded loan in the amount of $____________ (Total Loan Amount Including FHA, MIP, VA Funding Fee, or RD Guaranty Fee).
b.
I/We have entered into a Purchase Contract in the state of Tennessee for the amount of $ ___________ (Total Purchase Price)
c.
I/We request a Great Choice Plus second mortgage in the amount of $ _____________ (4% of the Purchase Price)
d.
I/We understand the interest rate on the second mortgage will be 0 % for a term of 15 years with a deferred payment.
_______________________________________________ Borrower
__________________________________ Date
_______________________________________________ Co-Borrower
__________________________________ Date
Lender In connection with this application for a Great Choice Plus second mortgage, I, the undersigned duly authorized representative of ________________________________________ (the lender), certify as follows: a.
The scheduled loan closing date is _______________________, 20__.
b.
The borrower(s) will not receive any cash at closing as a result of, or from, proceeds from the Great Choice Plus loan. Any “Net Funds to Borrower” at closing will be those allowable by THDA guidelines. (Originating Agent Guide, Section 7.5 D).
_______________________________________________ Lender
HO-0573 (10.14)
__________________________________ Date
Tennessee Housing Development Agency (THDA) Disclosure of Loan Terms for Great Choice Plus Second Mortgage Loan
I acknowledge that I am applying for assistance from Tennessee Housing Development Agency (THDA) in the form of a second mortgage loan, the Great Choice Plus, to utilize for down payment and/ or closing costs assistance. This disclosure form is required to be presented to me by the Originating Agent before settlement and/ or closing of the mortgage when a Good Faith Estimate (GSE) on the second mortgage loan is not provided. On October 10, 2010, the Secretary of HUD issued a special notice to lenders and Housing Finance Agencies (HFAs) entitled “Exemptions from Coverage Under Sections 4 and 5 of RESPA for Certain Subordinate Loans Provided By Assistance Programs for Low-and Moderate Income People”. This Disclosure is required under that Exemption if a GFE/HUD-1 is not provided on the subordinate second mortgage loan, (the Great Choice Plus Second Mortgage Loan). As a Borrower under this program, I understand that the Great Choice Plus second mortgage loan has the following terms and conditions as explained by my originating lender:
The term of the Great Choice Plus second mortgage loan is 15 years with a forgiveness feature in years 11 through 15. The interest rate is 0% and is non-amortizing, therefore having no required monthly payment. There are no costs or fees charged by THDA and the APR will be 0%. A good Faith Estimate (GFE) is not required for the Great Choice Plus second mortgage loan (if this form is provided prior to closing and signed by the borrower). Any portion of the Great Choice Plus second mortgage loan not yet forgiven under the terms of the Great Choice Plus Note is required to be repaid upon sale or refinance of my Great Choice first mortgage loan. If I have any questions about the Great Choice Plus Second Mortgage Loan I am encouraged to ask my lender or contact THDA for additional information at [email protected] or 1-615-815-2100.
__________________________________________ Borrower
_______________________________ Date
__________________________________________ Co-Borrower
_______________________________ Date
HO-0574 (10.14)
ORIGINATING AGENTS GUIDE REVISION 90 September 29, 2014 Remove and discard:
Replace with enclosed:
Page v (January 2014) ............................................................. Page v (Revised 10/01/14) Page 2 (January 2014) ............................................................. Page 2 (Revised 10/01/14) Page 3 (Revised 04/28/14) ...................................................... Page 3 (Revised 10/01/14) Page 4 (January 2014) ............................................................. Page 4 (Revised 10/01/14) Page 23 (January 2014) ........................................................... Page 23 (Revised 10/01/14) Page 49 (January 2014) ........................................................... Page 49 (Revised 10/01/14) Page 50 (January 2014) ........................................................... Page 50 (Revised 10/01/14) Page 51 (January 2014) ........................................................... Page 51 (Revised 10/01/14) Page 52 (January 2014) ........................................................... Page 52 (Revised 10/01/14) Request for Loan Purchase with Acknowledgement and Certification Form HO-0444 (05/13) ........................................................ Form HO-0444 (10/14) Legally Enforceable Obligation Letter Form HO-0476 (10/13) ........................................................ Form HO-0476 (10/14) Underwriting Submission Checklist Form HO-0549 (01/14) ........................................................ Form HO-0549 (10/14) Great Choice Plus Application for Assistance Form HO-0573 (01/14) ........................................................ Form HO-0573 (10/14) Add Form: Disclosure of Loan Terms for Great Choice Plus .................. Form HO-0574 (10/14)
EFFECT OF CHANGE
Effective October 1, 2014, on all loan submissions requiring downpayment assistance, the Great Choice Plus second mortgage loan will be a 0% interest, deferred, forgivable second mortgage loan. Repayment is required if the borrower sells or refinances the home before year 15 of the loan. The down payment assistance is forgiven at 20% per year after the borrower lives in the home for 10 years, and fully forgiven by the end of 15 years. This change to the Great Choice Plus second mortgage loan eliminates monthly payments on behalf of the borrower, and the need for the Servicer to collect monthly payments.
Page 2 This change also eliminates the need for a Great Choice Plus second mortgage loan application (1003), HUD-1, GFE and Truth and Lending Disclosure. In their place the Disclosure of Loan Terms for Great Choice Plus Second Mortgage Loan, Form HO-0574, will be mandatory for the borrower to sign prior to closing. Please refer to the special notice from the Secretary of HUD to Lenders and HFAs, “Exemptions from Coverage Under Sections 4 and 5 of RESPA for Certain Subordinate Loans Provided By Assistance Programs for Low-and Moderate Income People”, dated October 10, 2010.
Originating Agents Guide
JANUARY 2014 Latest Revision: 10/01/14
Page 8.4
Required Documents For A Complete Closed Loan File........................................................ 44 Closed Loan Submission Checklist ..................................................................................... 44 Request For Loan Purchase with Acknowledgement and Certification .............................. 44 Commitment ........................................................................................................................ 45 Original Note ...................................................................................................................... 45 Deed of Trust ....................................................................................................................... 45 Affidavit of Affixation ......................................................................................................... 45 Assignment .......................................................................................................................... 45 Title Insurance Policy/Endorsements................................................................................... 45 Warranty Deed ..................................................................................................................... 46 HUD-1 ................................................................................................................................. 46 Truth in Lending .................................................................................................................. 46 Hazard Insurance ................................................................................................................. 46 Termite Inspection/Treatment Certificate ............................................................................ 46 Flood Insurance.................................................................................................................... 46 Commitment Conditions ...................................................................................................... 46 Copy of MIC/LGC; USDA/RD 1980-17, or as Applicable ................................................. 47 Final Loan Application (1003)............................................................................................. 47
8.5
Loan Repurchase ..................................................................................................................... 47 Repurchase Obligation ......................................................................................................... 47 Repurchase Price.................................................................................................................. 48 Repurchase Procedure .......................................................................................................... 48
8.6
Additional Information............................................................................................................ 48 THDA Reports ..................................................................................................................... 48
PART IV ADDITIONAL INFORMATION SECTION 9: THDA FORMS AND INSTRUCTIONS Application Affidavit (HO-0450) .......................................................................................... 49 Veteran Exemption Application Affidavit (HO-0460) .......................................................... 49 Notice to Applicants Federal Recapture Requirements (HO-0448)........................................... 49 Seller Affidavit (HO-0451).............................................................................................................. 50 Application for Assistance (HO-0573) ................................................................................ 50 Online Homeownership Education Borrower Information (Form HBEO-100) .................. 50 Online Homeownership Education Request (Form HBEO-200) ........................................ 50 Buyer Profile (HO-0439) ................................................................................................................. 50 Underwriting Submission Checklist (HO-0549) .......................................................................... 50 Affidavit of Affixation (HO-0453) ........................................................................................ 51 Legally Enforceable Obligation Letter (HO-0476) .............................................................. 51 Closed Loan Submission Checklist (HO-0541) ............................................................................ 51 THDA Rider (HO-0440) .................................................................................................................. 51 Request for Loan Purchase with Acknowledgement and Certification (HO-0444) .................................................................................................... 52 Disclosure of Loan Terms for Great Choice Plus Second Mortgage Loan.......................... 52
THDA Originating Agents Guide Revised 10/01/2014
Page v
Single Family General Information ............... 615-815-2100 Toll-Free Voice Mail ..................................... 1-800-228-8432 Fax (24 hours a day, 7 days a week) ............. 615-564-2881
Staff Lindsay Hall, Senior Director of Single Family Programs
Telephone
Email Address
615-815-2080
[email protected]
Nancy Herndon, Assistant to Senior Director of Single Family
615-815-2101
[email protected]
Bill ClenDening, Asst. Director Single Family Programs
615-815-2099
[email protected]
Marvene Carey, Asst. Director Single Family Programs
615-815-2079
[email protected]
Rhonda Ronnow, Underwriting Manager
615-815-2111
[email protected]
Vicki George, Homebuyer Education Coordinator
615-815-2085
[email protected]
Jayna Johnson, Homebuyer Education Specialist
615-815-2019
[email protected]
Sharon Pommer, Servicing Liaison
615-815-2078
[email protected]
Ginny Boles, Servicing Coordinator
615-815-2097
[email protected]
Steven Lamb, Programs Administrator
615-815-2083
[email protected]
Cynthia Peraza, Program Development Coordinator
615-815-2112
[email protected]
Sharon Campbell, Underwriter
615-815-2088
[email protected]
Pam Norris, Underwriter
615-815-2087
[email protected]
Tammy Walker, Underwriter
615-815-2091
[email protected]
Lynne Walls, Underwriter
615-815-2089
[email protected]
Bonnie Fowler, Closing Coordinator
615-815-2081
[email protected]
Chuck Pickering, Closing Manager
615-815-2086
[email protected]
Rhonda Ellis, Mortgage Loan Specialist
615-815-2103
[email protected]
Caroline Rhodes, Mortgage Servicing Specialist
615-815-2098
[email protected]
Sandy Kist, Mortgage Servicing Specialist
615-815-2092
[email protected]
Debbie Couch, Closing Coordinator
615-815-2096
[email protected]
Debbie Reeves, Dir. Comm. Outreach & Business Development
626-815-2152
[email protected]
THDA Originating Agents Guide Revised 10/01/2014
Page 2
1.4. CURRENT THDA LOAN PROGRAMS A.
Great Choice Loan Program This program is designed for low and moderate income borrowers. Great Choice offers a low interest rate loan secured by a first mortgage with the option of downpayment and closing cost assistance to a maximum of 4% of the purchase price at a 0% interest rate, 15 year deferred, forgiveable loan secured by a second deed of trust. THDA allows the following loan types: FHA, USDA, and VA at the maximum loan limits based on insurer or guarantors guidelines. THDA also allows conventional uninsured loans with a maximum loan to value of 78%. Maximum Household Income
Varies by county
Maximum Acquisition Cost (Including all incidentals)
Varies by county
Maximum LTV
Subject to FHA, VA, and USDA/RD Guidelines. Conventional Loans 78% LTV or less.
Interest Rate
4.2% fixed rate, subject to change
Loan Term
30 years
Loan Types
FHA, VA, USDA/RD, Conventional
Mortgage Insurance or Guarantee
As required by loan type
Buydowns
Not allowed
Assumable
Subject to qualifying
Pre-Payment Penalty
No penalty
Subject to Recapture
Yes
Required Reserve
As required by loan type
Minimum Investment
As required by loan type
Closing Costs
May come from borrower, seller, a gift, or as required by loan type
Down Payment
As required by loan type
First Time Homebuyer Rule
Borrower must not have an interest in their primary residence within 36 months of application unless the property to be financed with the loan is in a targeted area or the borrower meets the Veteran’s exemption. (See THDA website for targeted areas.)
Homebuyer Education
Not required
Origination Fee
Up to 2% maximum
Discount Point
Up to .25
THDA Originating Agents Guide Revised 10/01/2014
Page 3
B.
Great Choice Plus: Down Payment/Closing Cost Assistance Loan This loan offers down payment and closing cost assistance to first-time homebuyers at no interest but secured by a second deed of trust. This loan is available only with the THDA Great Choice first mortgage loan. The Great Choice Plus loan is a 0% interest rate, deferred payment, forgiveable second lien. The second mortgage loan is forgiven from year 11 through year 15 at 20% per year.
Eligible Borrower Maximum Household Income Maximum Loan Amount Interest Rate Loan Term Underwriting Criteria
Pre-Payment
Allowable Fees Closing Documents Homebuyer Education
Servicing
THDA Originating Agents Guide Revised 10/01/2014
Homebuyer obtaining THDA Great Choice Loan THDA Great Choice Program Limits apply Up to 4% of Purchase Price 0% 15 year deferred, forgiveable Borrowers must have 620 minimum credit score. Must meet all other THDA Underwriting Guidelines. Manual underwriting allowed per THDA guide.
The Great Choice Plus loan is due in full upon 1st mortgage payoff, assumption, or refinance prior to year 11. From year 11 through year 15, the loan is forgiven at 20% per year. No prepayment penalty. No assumption of Great Choice Plus allowed, with the exception of a VA assumption. Normal and customary 2nd mortgage fees Great Choice Plus Note and Deed of Trust in the name of THDA
Required prior to closing on THDA Great Choice and Great Choice Plus Loans No monthly second mortgage payment is collected.
Page 4
2. Great Choice Plus The Great Choice Plus loan is a 0% interest rate, deferred payment, forgiveable second lien. The second mortgage loan is forgiven from year 11 through year 15 at 20% per year. F.
Prepayment Penalty Prepayment penalties are not permitted on THDA loans.
G.
Late Charge
Late charges, if any, must be reflected in the Deed of Trust and Note and must be in compliance with program insurer’s guidelines. H.
Origination Fee Only the authorized Origination Fee and Discount Points may be charged.
I.
Assumptions
THDA first mortgage loans are assumable only if the person assuming the THDA loan meets all THDA program requirements applicable to new THDA loans, and the assumption application is approved by THDA. Assumption applications are processed by THDA or the THDA Servicer of the loan to be assumed. THDA second mortgage loans are not assumable with the exception of a VA assumption. 4.4 FEDERAL RECAPTURE All THDA loans closed after December 31, 1990, are subject to the federal recapture tax. The recapture tax is designed to recapture a portion of the subsidy associated with THDA loans. Recapture tax liability must be determined at the time the property is sold, if the sale occurs within nine years from the closing of the THDA loan. Refinancing a THDA loan does not trigger recapture tax liability, however, if the property is sold after the date of refinancing but before the ninth anniversary of the THDA loan closing, recapture tax liability must be determined at the time of sale. THDA Originating Agents notify the Applicant about recapture tax at the time a THDA loan application is made by securing their signature on the Notice To Applicants Federal Recapture Requirements. Whether the recapture tax results in an actual payment to the federal government depends on a number of factors, including changes in family income, gain on the sale of the property, the number of years the THDA loan is outstanding, and the original THDA loan amount. The exact amount to be paid, if any, cannot be determined until the property is sold. A THDA loan, originally closed after December 31, 1990, that is assumed within nine years from the date of the original THDA loan closing is subject to the recapture tax for an additional nine year period beginning on the date of the assumption. For further information regarding the federal recapture tax, advise Applicants or Borrowers to contact their tax professional. Written information is available by ordering IRS Form 8828 “Recapture of Federal Mortgage Subsidy” and its accompanying instructions from any IRS office or through the IRS website at www.irs.gov.
THDA Originating Agents Guide Revised 10/01/2014
Page 23
SECTION 9: THDA FORMS AND INSTRUCTIONS As a result of Tax Code requirements, THDA must require certain forms. Application files or closed loan packages that do not contain fully executed THDA forms, as required, will not be accepted by THDA. These forms must be included in THDA application files and in THDA closed loan packages as indicated in this Guide. THDA forms are in addition to the typical forms utilized in the mortgage industry. These forms are to be considered part of this Guide. THDA forms may not be altered. THDA forms may not be distributed to a lender who is not an Originating Agent or to any other unauthorized individual or entity. Detailed instructions for completion of each THDA form follows in the order that they are typically encountered in the lending process: Application Affidavit HO-0450 (03/11) Veteran Exemption Application Affidavit HO-0460 (02/07) Notice to Applicants Federal Recapture Requirements HO-0448 (09/99) Seller Affidavit HO-0451 (09/99) Application for Assistance HO-0573 (10/14) Online Homeownership Education Borrower Information HBEO-100 (06/13) Online Homeownership Education Request HBEO-200 (06/13) Buyer Profile HO-0439 (04/10) Underwriting Submission Checklist HO-0549 (10/14) Affidavit of Affixation HO-0453 (12/06) Legally Enforceable Obligation Letter HO-0476 (10/14) Closed Loan Submission Checklist HO-0541 (11/13) THDA Rider HO-0440 (08/03) Request for Loan Purchase with Acknowledgement and Certification HO-0444 (10/14) Disclosure of Loan Terms for Great Choice Plus Second Mortgage Loan HO-0573 (10/14) APPLICATION AFFIDAVIT HO-0450 (03/11) VETERAN EXEMPTION APPLICATION AFFIDAVIT HO-0460 (02/07) (If Applicable) The Application Affidavit or Veteran Exemption Application Affidavit (if applicable Application Affidavit must be executed by each applicant and non-qualifying spouse. The household income figure to be provided in item #4 is the maximum allowable income for the size of the applicant’s household and location of property. The acquisition cost figure for Great Choice is to be provided in item #5 is the maximum THDA acquisition cost for the county in which the property is located. The original Application Affidavit or Veteran Exemption Application Affidavit is required by THDA. All changes or whiteouts must be initialed by the Applicant(s). Each Application Affidavit or Veteran Exemption Application Affidavit, must be executed and notarized within the State of Tennessee; however, in rare circumstances, an Application Affidavit or Veteran Exemption Application Affidavit may be executed and notarized outside the State of Tennessee, such as when a person is a member of the armed forces, is stationed outside the state and is unable to be present while the application is being processed. NOTICE TO APPLICANTS FEDERAL RECAPTURE REQUIREMENTS HO-0448 (09/99) This form is mandatory for all THDA loan applications. The Applicant and all Co-Applicants must sign and date the form at the time of application. Provide a copy to the Applicant. Enclose the original signed and dated form in the application file when submitted for THDA underwriting.
THDA Originating Agents Guide Revised 10/1/2014
Page 49
SELLER AFFIDAVIT HO-0451 (09/99) The seller of the property must complete a Seller Affidavit for each application file submitted to THDA. The Seller Affidavit is to assist in determining whether the purchase of the property involves more than the purchase price specified in the sales contract. The seller must sign and date the Seller Affadavit, and it must be notarized. Enclose the original Seller Affidavit in the application file when submitting for THDA underwriting. In the absence of the original Affidavit at the time of loan approval, a prior to closing contingency will be THDA receipt of the original. APPLICATION FOR ASSISTANCE HO-0573 (10/14) This form must be completed and the original included in each loan application package submitted under the Great Choice Plus Loan Program. The application should indicate the total FHA loan amount including MIP, the exact (dollars and cents) amount of assistance based on 4% of the referenced loan amount, the anticipated closing date, and the complete name of the settlement agent. This form must be signed by the Borrower(s) and an authorized representative of the lender. ONLINE HOMEOWNERSHIP EDUCATION BORROWER INFORMATION FORM HBEO-100 The Originating Agent is responsible for reviewing the Online Homeownership Education Borrower Information Form with the prospective online education borrower. This form provides key information about the eHomeAmerica online product and requirements for the borrower to complete the course. ONLINE HOMEOWNERSHIP EDUCATION REQUEST FORM HBEO-200 To request approval for online homeowner education for a borrower, the Originating Agent must complete and send the Online Homeownership Education Request Form HBEO-200 and the Online Homeownership Education Borrower Information Form HBEO-100 which has been executed by the borrower to THDA by fax to 615-564-1229 or email to [email protected]. BUYER PROFILE HO-0439 (04/10) This form is critical to facilitate accurate reports by THDA. Complete this form accurately and completely and enclose it the application file when submitted for THDA underwriting. UNDERWRITING SUBMISSION CHECKLIST HO-0549 (10/14) Use this form as a cover sheet for all application files submitted to THDA. Follow the checklist closely and complete all information. Items omitted may cause the application file to be returned for completion and resubmission. Do not change the size of this form. The checklist has five main sections: 1. General Information. 2. THDA Program Eligibility. Must include original documents, notarized as indicated. 3. Great Choice Plus Loans/Grants/Downpayment/ClosingCost Assistance. Must be documented as indicated, if applicable. 4. Credit Package. Must include documentation, as indicated. Originating Agent Information: Provide complete information, including the Originating Agent’s four-digit O. A. Number as assigned by THDA. An omitted or incorrect Originating Agent number and
THDA Originating Agents Guide Revised 10/01/2014
Page 50
omitted or incorrect branch address are the primary causes of misdirected commitments and misdirected funding checks. Primary Applicant: Include primary Applicant’s name as it will appear on all documents. It must be accurate and consistent. Property Address: Must be accurate and consistent on all documents. Submission Purpose: As indicated, this form may be used for purposes in addition to the initial submission of an application file. Program Type: Indicate the desired THDA loan program. Loan Type: Indicate whether the loan type is FHA, VA, Conventional or USDA/RD. Property Type: Indicate the correct property type. Check the appropriate block to indicate a residence that is a single family detached or a condominium. Check “Other” and indicate in the blank provided if the residence is a 2, 3 or 4 family home, or is a PUD, townhouse, zero lot line, modular or manufactured home. THDA Program Eligibility/Credit Package A check mark, an “X” or “N/A” must be indicated for each document listed on the form. Refer to Section 6.2 for additional information. An Originating Agent staff member’s signature, printed or typed name and telephone number must appear at the bottom of the checklist. Without this information, the file is considered incomplete. In addition, if this information is omitted, THDA does not know who to call if questions arise. AFFIDAVIT OF AFFIXATION HO-0453 (12/06) An original Affidavit of Affixation is required on all manufactured home loans and must be recorded as a separate document. It cannot be recorded with or attached to the Deed of Trust for recordation. LEGALLY ENFORCEABLE OBLIGATION LETTER HO-0476 (10/14) For any Great Choice loans insured by FHA/HUD the Originating Agent will receive a Legally Enforceable Obligation Letter (LEOL) attached to the THDA Loan Commitment. HUD/FHA requires that THDA provide a Legally Enforceable Obliation Letter when THDA has agreed to provide DPA funds in the form of the Great Choice Plus loan. The Borrower(s) is to sign the LEOL at closing and a copy of the executed LEOL must be sent back to THDA with the initial closing submission package in order for THDA to purchase the Great choice Plus loan. The Originating Agent is to retain the original LEOL in their loan file to accompany the FHA insurance application associated with the first mortgage. CLOSED LOAN SUBMISSION CHECKLIST HO-0541 (11/13) Use this form when submitting all closed loan files to THDA, regardless of the source of funding. This form can also be used as a checklist for submission of follow-up documentation. Complete all items on this form. Do not change the size of this form. THDA RIDER HO-0440 (08/03) The THDA Rider must be completed, executed, attached to and recorded with the deed of trust for all THDA first mortgage loans, regardless of loan type. The THDA Rider must be signed by all Borrowers who are required to sign the first deed of trust and recorded with the deed of trust.
THDA Originating Agents Guide Revised 10/01/2014
Page 51
REQUEST FOR LOAN PURCHASE WITH ACKNOWLEDGEMENT AND CERTIFICATION HO-0444 (10/14) All loans closed by the Purchase Method must be accompanied by an executed Request For Loan Purchase with Acknowledgement and Certification when delivered to THDA. By submitting a loan file for purchase by THDA, each Originating Agent is deemed to affirm the Acknowledgement and Certification appearing on the master form of the Request For Loan Purchase with Acknowledgement and Certification with respect to each loan file submitted regardless of whether the Acknowledgement and Certification is included with the form submitted with a particular loan file. Provide all information indicated. Check the appropriate box indicating whether the loan file is complete in all respects or not. Sign and date where indicated, print name and title, and provide telephone number. Omitted information may cause the loan file to be returned to the Originating Agent. DISCLOSURE OF LOAN TERMS FOR GREAT CHOICE PLUS SECOND MORTGAGE LOAN HO-0574 (10/14) This disclosure is required to be presented to the Borrower by the Originating Agent before settlement. This disclosure meets the exemption requirements under Secretary of HUD’s special notice “Exemptions from Coverage Under Sections 4 and 5 of RESPA for Certain Subordinate Loans Provided by Assistance Programs for Low to Moderate Income People” dated October, 2010. This disclosure is required if a GFF/HUD-1 is not provided on the subordinate second mortgage loan.
REMAINDER OF THIS PAGE LEFT BLANK INTENT
THDA Originating Agents Guide Revised 10/01/2014
Page 52
Tennessee Housing Development Agency (THDA) Request for Loan Purchase with Acknowledgement and Certification Originating Agent Name and Address:
O.A. Number:
_____ _____ _____ _____
_______________________________________ _______________________________________ _______________________________________
Contact Person: ______________________________ Phone Number: (_____)________________________ Fax Number: (_____)________________________
Must be completed in full. Do not attach wiring information on a separate page. Wire To: Receiving Bank Routing #__ __ __ __ __ __ __ __ __
O.A. Account
Receiving Bank Name: Receiving Bank Address:
Special Instructions: __________________ ___________________________________ ___________________________________
THDA Loan Number:
____________________________ ____________________________ ____________________________
__ __ __ __ __ __ __ __
Loan Amount:
# __ __ __ __ __ __ __
$__________________
THDA 2nd Mortgage Loan Number: __ __ __ __ __ __ __ __
2nd Mortgage Loan Amount: $_____________
Primary Borrower:
Interest Rate:
_______________________________
Property Address:
__________________%
nd
_______________________________
2 Mortgage Interest Rate: _______________%
_______________________________
Closing Date:
_____________________
_______________________________
1st Payment Due:
_____________________
We hereby request THDA to purchase the attached loan, which is: (Check applicable box. If not checked, the second box applies.)
Complete in all respects.
Complete except for items indicated by “ ” on the enclosed Closed Loan Submission Checklist, which items shall be delivered to THDA by the 120th day after the closing date for the referenced loan. If such items are not delivered, we agree to immediately repurchase this loan at the option of and upon notice from THDA, or, if loan has not been purchased by THDA, we acknowledge that the loan will not be eligible for purchase by THDA. These conditions also apply to a THDA second mortgage, if included with this transaction.
*
Originating Agent acknowledges receipt of the master form from THDA which is titled “Tennessee Housing Development Agency Request for Loan Purchase with Acknowledgement and Certification” on one side and titled “Acknowledgement and Certification” on the other side. By signing below, Originating Agent affirms all matters stated under the title “Acknowledgement and Certification” with respect to the mortgage loans for which this purchase request is being made, regardless of whether the items appearing under the title “Acknowledgement and Certification” on the master form appear on the reverse side of this request for loan purchase.
_________________________________________________
_________________________________
Originating Agent Authorized Signature
Date
__________________________________________________________________________________________________ Print Name
Title
Phone Number
FOR THDA USE ONLY Settlement Date:
____________________
$ _________________
Principal Loan Amount
Issue: ___________________________
$ ___________________
Principal Loan Amount 2nd Mortgage
Loan Type: _______________________
_________________ _________________ = _________________
+ or - Interest from ____________ to ____________
Servicer: _________________________
Other: _____________________________________
THDA Closer: ____________________
Net Wire, this loan
_________________________________________
______________________________
Authorized By
Date
HO-0444 (10/14)
Side 1 of 2
Tennessee Housing Development Agency (THDA) Request for Loan Purchase with Acknowledgement and Certification A.
THDA Acknowledgement In connection with the mortgage loan identified by the THDA Loan Number on the Request for Loan Purchase (the “Mortgage Loan”), THDA acknowledges the following:
B.
(1)
The Originating Agent identified on the reverse side of this form (the “O.A.”) is to deliver an original promissory note and related documents evidencing the Mortgage Loan to THDA for THDA's consideration in purchasing the Mortgage Loan;
(2)
The promissory note and related documents evidencing the Mortgage Loan may be subject to a security interest pursuant to arrangements the O.A. may have made with other financial institutions;
(3)
If actually received, THDA will hold the promissory note and related documents evidencing the Mortgage Loan for the benefit of the O.A. until such time as THDA decides whether or not to purchase the Mortgage Loan. If THDA decides to purchase the Mortgage Loan, THDA will promptly wire funds to the O.A. or on behalf of the O.A. in accordance with information supplied by O.A. with each individual Request for Loan Purchase submitted to THDA. Thereafter, the Mortgage Loan will be the sole property of THDA not subject to claims of any other parties whatsoever. If THDA decides not to purchase the Mortgage Loan, THDA will promptly return the original promissory note and related documents evidencing the Mortgage Loan to the O.A. in accordance with the information supplied by O.A. with each individual Request for Loan Purchase submitted to THDA. Thereafter, THDA will have no further obligation with respect to the Mortgage Loan; and
(4)
THDA does not agree to and will not be bound by the terms and conditions contained in any other correspondence or documents from the O.A. or from any other entity on behalf of the O.A. with respect to the Mortgage Loan.
Originating Agent Mortgage Purchase Certification Pursuant to T.C.A. Section 13-23-118 and the Originating Agents’ Guide and with respect to each Mortgage Loan, O.A., by and through its duly authorized representative whose signature appears on each Request for Loan Purchase, hereby certifies as follows: (1)
The unpaid principal balance of the promissory note evidencing the Mortgage Loan and the interest rate thereon have been accurately stated to THDA;
(2)
The amount of the unpaid principal balance of the Mortgage Loan is justly due and owing;
(3)
O.A. has no notice of the existence of any counterclaim, offset or defense asserted by the person to whom the Mortgage Loan was made or their respective successor in interest;
(4)
The Mortgage Loan is evidenced by a promissory note and a deed of trust which has been properly recorded with the appropriate public official;
(5)
The deed of trust given to secure the Mortgage Loan constitutes a valid first lien on the real property described in the deed of trust subject only to real property taxes not yet due, installments of assessments not yet due, and easements and restrictions of record which do not adversely affect, to a material degree, the use or value of the real property or improvements thereon;
(6)
The Mortgage Loan, when made, was lawful under state law and/or federal law, whichever governs the affairs of O.A. and would be lawful on the date of purchase by THDA if made by O.A. on that date in the amount of the then unpaid principal balance;
(7)
None of the persons to whom the Mortgage Loan was made are in default in the payment of any installment of principal or interest, escrow funds, real property taxes or otherwise in the performance of their obligations under the promissory note or deed of trust given to evidence and secure the Mortgage Loan and have not, to the knowledge of O.A., been in default in the performance of any such obligation for a period of longer than sixty (60) days during the life of the Mortgage Loan; and
(8)
Improvements to the real property described in the deed of trust securing the Mortgage Loan are covered by valid and subsisting policy of insurance issued by a company authorized to issue such policies in the state of Tennessee and providing fire and extended coverage to an amount not less than ninety percent (90%) of the insurable value of the improvements to the real property.
(9)
Once THDA wires funds in accordance with the instructions supplied by O.A. with each Request for Loan Purchase, the promissory note, deed of trust and related documents evidencing the Mortgage Loan will not be subject to any security interest granted to any other party whatsoever.
O.A. acknowledges that it shall be liable to THDA for any damages suffered by THDA by reason of the untruth of any representation or the breach of any warranty set forth above and, in the event that any representation shall prove to be untrue when made or in the event of any breach of warranty, O.A. shall, at the option of THDA, repurchase the Mortgage Loan for the original purchase price adjusted for amounts subsequently paid thereon, as THDA may determine.
Side 2 of 2
Legally Enforceable Obligation Letter For HUD Mortgagee Letter 2013-14 and HUD Handbook 4155.1 5.B.5.a Gift Letter
[Date] [Originating Lender] [Street Address] [City, State Zip Code]
Re:
The “Second Mortgage Loan” is: Loan Type: Borrower: Property Address: Second Mortgage Loan Amount: Second Mortgage Loan Terms: Associated First Mortgage Loan:
THDA Great Choice Plus Loan [ ] [ ] No greater than [$ 15 years deferred with 0% interest rate. THDA Great Choice Loan
]
Dear Sir or Madam: As required by Mortgagee Letter 2013-14 from the U.S. Department of Housing and Urban Development, this letter documents that the Tennessee Housing Development Agency (“THDA”), a political subdivision and instrumentality of the state of Tennessee, has incurred a legally enforceable obligation, in accordance with the requirements of the THDA commitment letter issued with respect to the Second Mortgage Loan and the Associated First Mortgage Loan, to provide the funds for the borrower’s required Minimum Cash Investment at or before closing under its Great Choice Plus Loan Program on the terms and in the amount referenced above. You must maintain this letter in your file and you must also satisfy the requirements in the last paragraph of this letter to maintain the FHA insurability of the Associated First Mortgage Loan referenced above. THDA hereby agrees to purchase the Second Mortgage Loan described above which will be made by [Originating Lender] (whether closing in THDA’s name or in the name of [Originating Lender]) under THDA’s Great Choice Plus Loan Program. Prior to applying for FHA insurance on the Associated First Mortgage Loan, [Originating Lender] must deliver to THDA the following documents:
Page 1 of 2 HO-0476 (10.14)
Page 2
1. Fully executed original note for the Great Choice Loan, endorsed to THDA; 2. A copy of the fully executed and notarized original Deed of Trust for the Great Choice Loan with all applicable Riders (The original Deed of Trust for the Great Choice Loan must be submitted to THDA immediately following recordation); 3. Fully executed original note for the Great Choice Plus Loan, endorsed to THDA; and 4. A copy of the fully executed and notarized original Deed of Trust for the Great Choice Plus Loan with all applicable Riders (The original Deed of Trust for the Great Choice Plus Loan must be submitted to THDA immediately following recordation).
__________________________________ Grantor Name (Signature) Tennessee Housing Development Agency
__________________________________ Grantor Name (Printed) Tennessee Housing Development Agency
__________________________________ Grantee Name (Signature) Borrower
__________________________________ Grantee Name (Printed) Borrower
__________________________________ Grantee Name (Signature) Co-Borrower
__________________________________ Grantee Name (Printed) Co-Borrower
Page 2 of 2 HO-0476 (10.14)
Tennessee Housing Development Agency (THDA) Underwriting Submission Checklist OA Number: _____ _____ _____ _____ OA Name: __________________________________________________ OA Address: ________________________________________________ ___________________________________________________________
Primary Applicant: _______________________________________ Property Address: ________________________________________ _______________________________________________________ Applicant’s Email________________________________________
Submission Purpose: Program Type: Initial Great Choice Submission Great Choice-1st Mortgage Supplemental documents Great Choice Plus-2nd Mortgage Updated documents Homeownership for the Brave
Loan Type: Property Type: FHA Single Family Detached VA Condo USDA/RD Manufactured Home Conventional Other____________________
PLEASE ASSEMBLE PACKAGE IN ORDER LISTED BELOW
1. 2. 3 4. 5. 6. 7. 8.
THDA PROGRAM ELIGIBILITY Buyer Profile Original Application Affidavit(s), Veteran Exemption Application Affidavit Original Seller Affidavit (notarized) Signed and Dated Tax Returns with all schedules and W-2s for the most recent tax year including non-qualifying spouse IRS Non-Filing Confirmation for most recent tax year including non-qualifying spouse Notice to Applicants Federal Recapture Requirements (signed copy) Homebuyer Education Certification and Online Homeownership Education Approval and Referral Form HBEO-300 (if applicable) Great Choice Plus Loan Program Application for Assistance CREDIT PACKAGE
9. FHA Loan Underwriting and Transmittal Summary with condition sheet, AND Form 92900A p3, signed by DE Underwriter and DU or LP findings 10. USDA/RHS #1980-18 11. Typed Transmittal Summary (1008) signed by underwriter with DU or LP findings within 90 days of AUS or run date 12. VA/Loan Analysis Worksheet Approval OR VA Certificate of Commitment/DD-214 or DD-4 (if applicable) 13. Initial Good Faith Estimate 14. Final Loan Application (Typed URLA) 1003 (3 year residency should be stated) 15. Initial Interviewer's Signed Loan Application 1003 (3 year residency should be stated) 16. Disclosure of Loan Terms for Great Choice Plus second mortgage (if applicable) 17. Credit Report and credit explanation letters (if applicable) 18. Final Divorce Decree/Marital Dissolution (if applicable) 10. Verification of Court Ordered Child Support/Parenting Plan 20. Verification of SSI or Other Assistance 21. Verifications of Employment (verbal is unacceptable) 22. Most Recent Pay Stub (within past 30 days) 23. Verifications of Prior Employment (telephone verification is acceptable) 24. Self-Employment Cash Flow Worksheet, P & L, 2 years Business Tax Returns (corp. or partnership or sole prop.) 25. Verification of Deposit OR Borrower's Bank Statements for the previous two months 26. Gift Letter 27. Sales Contract and Addendum (Copy) 28. Appraisal Report (URAR) and Condition Sheet with VC Sheet/USDA-RD Conditions, and executed conditional commitment (928005.b), VA CRV 29. Final Inspection and Legible Photos of Subject Property (front, rear, street) and Photos or Photocopies of comparable sales 30. Flood Notification (if applicable, signed by Applicant or certified date mailed to Applicant) (Copy) 31. Grant/Down payment assistance approval letters 32. Original Certificate of Title or Original Manufactured Certificate of Origin (Mobile/Manufactured Homes) 33. FHA 203(h) Proof of permanent residence (if applicable) 34. FHA 203(h) Proof of destruction of residence (if applicable) THDA RESERVES THE RIGHT TO REQUEST ADDITIONAL DOCUMENTATION TO EVALUATE THIS LOAN APPLICATION. The undersigned, an authorized representative of the OA referenced above, hereby certifies and warrants as follows: (i) the information accompanying this submission has been verified and corroborated as required by THDA; (ii) all requirements of applicable federal and/or state law have been met, including, without limitation, all disclosures and requirements in the Federal Reserve Board "Rule" and the Dodd-Frank Act; (iii) the Applicant referenced above and the property proposed for purchase by the Applicant meet all applicable THDA mortgage loan eligibility and program guidelines; and (iv) to the extent this submission is electronic, all documents and affidavits required to be originals or with original signature were obtained.
________________________________________
____________________________________________
____________________
Originating Agent Authorized Signature
Print Name and Title
Date
Phone No. (_____)_____________________
Fax No. (_____)____________________
Email address _____________________________________
____________________________________________
________________________________________________________________
Loan Originator Name
Loan Originator Email
HO-0549 (10.14)
Tennessee Housing Development Agency (THDA) Great Choice Plus Loan Program Application for Assistance
Borrower I/We the undersigned borrower(s), are applying for the Great Choice Plus loan. The second mortgage will be used for down payment and closing costs assistance under the terms of the Great Choice Plus Program. To induce THDA to provide such assistance, I/we certify as follows: a.
I/We have applied for an FHA, VA, or USDA/RD THDA funded loan in the amount of $____________ (Total Loan Amount Including FHA, MIP, VA Funding Fee, or RD Guaranty Fee).
b.
I/We have entered into a Purchase Contract in the state of Tennessee for the amount of $ ___________ (Total Purchase Price)
c.
I/We request a Great Choice Plus second mortgage in the amount of $ _____________ (4% of the Purchase Price)
d.
I/We understand the interest rate on the second mortgage will be 0 % for a term of 15 years with a deferred payment.
_______________________________________________ Borrower
__________________________________ Date
_______________________________________________ Co-Borrower
__________________________________ Date
Lender In connection with this application for a Great Choice Plus second mortgage, I, the undersigned duly authorized representative of ________________________________________ (the lender), certify as follows: a.
The scheduled loan closing date is _______________________, 20__.
b.
The borrower(s) will not receive any cash at closing as a result of, or from, proceeds from the Great Choice Plus loan. Any “Net Funds to Borrower” at closing will be those allowable by THDA guidelines. (Originating Agent Guide, Section 7.5 D).
_______________________________________________ Lender
HO-0573 (10.14)
__________________________________ Date
Tennessee Housing Development Agency (THDA) Disclosure of Loan Terms for Great Choice Plus Second Mortgage Loan
I acknowledge that I am applying for assistance from Tennessee Housing Development Agency (THDA) in the form of a second mortgage loan, the Great Choice Plus, to utilize for down payment and/ or closing costs assistance. This disclosure form is required to be presented to me by the Originating Agent before settlement and/ or closing of the mortgage when a Good Faith Estimate (GSE) on the second mortgage loan is not provided. On October 10, 2010, the Secretary of HUD issued a special notice to lenders and Housing Finance Agencies (HFAs) entitled “Exemptions from Coverage Under Sections 4 and 5 of RESPA for Certain Subordinate Loans Provided By Assistance Programs for Low-and Moderate Income People”. This Disclosure is required under that Exemption if a GFE/HUD-1 is not provided on the subordinate second mortgage loan, (the Great Choice Plus Second Mortgage Loan). As a Borrower under this program, I understand that the Great Choice Plus second mortgage loan has the following terms and conditions as explained by my originating lender:
The term of the Great Choice Plus second mortgage loan is 15 years with a forgiveness feature in years 11 through 15. The interest rate is 0% and is non-amortizing, therefore having no required monthly payment. There are no costs or fees charged by THDA and the APR will be 0%. A good Faith Estimate (GFE) is not required for the Great Choice Plus second mortgage loan (if this form is provided prior to closing and signed by the borrower). Any portion of the Great Choice Plus second mortgage loan not yet forgiven under the terms of the Great Choice Plus Note is required to be repaid upon sale or refinance of my Great Choice first mortgage loan. If I have any questions about the Great Choice Plus Second Mortgage Loan I am encouraged to ask my lender or contact THDA for additional information at [email protected] or 1-615-815-2100.
__________________________________________ Borrower
_______________________________ Date
__________________________________________ Co-Borrower
_______________________________ Date
HO-0574 (10.14)
