In This Issue
Go Live Plan for KHC's New Loan Origination System
Kentucky Housing Corporation (KHC) will begin a phased roll-out of its new Loan Origination System (LOS), starting Tuesday, September 1, 2020. KHC will start the process with the Delegated Lenders, using the entire month of September to ease these lenders into this new system.

Below are some important details to know about the plan to transition to the new LOS:
Phase 1: Delegated Lenders
Tuesday, September 1 - Friday, September 11, 2020
  1. We will begin working with the Delegated Lender Administrators to review the list of users, warehouse banks, roles, etc., being transferred to the new system during the first week of September. Any changes will be made before any other users are activated.
  2. Live demonstrations of the new system and workflow will be scheduled for loan officers/processors, lock desk, underwriter, closers, and post-closers. 
  3. By Friday, September 11, 2020, all Delegated users will be activated in KHC's new LOS, PowerLender.
Phase 2: Delegated Lenders
Monday, September 14 - Wednesday, September 30, 2020
Reservations can be made in the new LOS. KHC will leave the current reservation portal open for the first few days of Phase 2. This will circumvent any delays in locking loans in the event there are any unforeseen issues with the transition.
Phase 3: Correspondent Lenders
Anticipated Start Date: Monday, October 5, 2020
We will begin the Phase 1 and 2 Plans for the Correspondent Lenders. At this time, we do not anticipate it would take the entire month to move the Correspondents over, but we will have a better estimate of this timeframe once we go through the process with the Delegated Lenders. 
Phase 4: Third Party Originators (TPO)
Anticipated Start Date: Monday, October 19, 2020
We will begin the Phase 1 and 2 Plans for the TPOs. We will publish a more-detailed plan in coming weeks.
NOTE: Any loans locked in KHC's current system prior to the new system, will be finished in the system in which it was started.
Preparing for KHC's New LOS
There are a few key details to remember as we go live with the new LOS:
  1. KHC Admin Fee in the LOS will be $175.
  2. KHC Underwriting Fee (for TPO/Correspondent loans) in the new LOS will be $595.
    • TPO Lenders who submit files with 10 pends or fewer will receive a $100 increase in their lender compensation for those loans.
    • Correspondent Lenders receive the entire KHC Underwriting Fee on FHA and VA loans.
  3. TPO's will order their own flood certifications for loans in the new LOS. They will include that fee on the Loan Estimate (LE) and Closing Disclosure (CD).
  4. KHC will begin reviewing the entire closed loan file for Correspondent and Delegated Lenders, prior to purchasing the loan. Pre-purchase conditions must be cleared before KHC will purchase the loan.
One Final Note on the Transition to KHC's New LOS
As we prepare to present to you the result of three years of research and hard work, I want to take a moment to say that I realize transitions can be frustrating and inconvenient when you are all so busy with heavy purchase and refinance volume. KHC thanks you for all you do to help us bring affordable housing opportunities to the state.

As we start our transition to the new LOS, my team and I will be on-hand to help you learn the new system. We will have tutorial videos available to walk you through reserving loans and printing/uploading documents. If any process feels harder than before, let me know. Our goal has always been to have a more-nimble system that requires fewer clicks, while keeping us all in compliance with the multitude of regulators we in the mortgage industry work with.
I thank you all and look forward to another great year working with you!
  Jaime Rice's Signature
Jaime W. Rice
Managing Director of Single-Family Programs
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