Affordable Closing Cost Fund - Button now Available
There is now a button to choose the Affordable Closing Cost (ACC) Funds while reserving first mortgage loans.
The following changes will be effective with new reservations on or after Tuesday, August 1, 2017:
Pursuant to Fannie Mae Selling Guide under part B3-4.30-06: Donations from Entities, the KHC ACC Funds should be entered into DU as a Gift, still with Special Feature Code 843. In order to document this according to DU, KHC's Reservation Confirmation will serve as the gift letter. The Closing Disclosure should show ACC Funds from KHC in Bucket L, Paid Already by or on Behalf of Borrower at Closing.
Loans reserved prior to August 1, 2017 may be documented as KHC originally instructed, as a Lender Credit on the first mortgage LE/CD and in DU, with Special Feature Code 843 in DU.
Tips for Success During High Volume
KHC would like to thank all of our partners who have made the Hardest Hit Fund (HHF) Down payment Assistance Program (DAP) a success! 505 loans were reserved in a single week due to HHF DAP. As expected,
KHC's underwriting team is very bus with the high volume of loans, and has even hired a new underwriter, Becca Plummer, to help.
To further mitigate the workload, below is a list of tips to help lenders during this high volume:
KHC Underwriting Tips
- Underwriting files can be submitted without the appraisal.
- Just provide verification appraisal has been ordered.
- Submit a complete file per underwriting checklist.
- Review and address any issues prior to submission (new and pended files).
- Complete Income Calculator.
- Start date should always be 1/1 of current year.
- Only exception is when borrower has started a new job in the current year.
- When submitting pended conditions upload all items at once.
- Data integrity - make sure documentation to support.
- Set realistic expectations with all parties of transaction.
- Send all questions, issues, or reservation requests to email@example.com.
- Fully processed files equal less touches which can lead to quicker approvals.
KHC TPO Closing Tips
- Pre-Closing package to include:
- Completed Closing Agent and Fee Sheets.
- Current tax year information as well as projections for next year.
- Remain in contact with Closing Agent to expedite revisions for final CD.
KHC Post Closing Tips
- Utilize the Closed Loan Checklist.
- Loans with HHF DAP need the following executed forms:
- HHF DAP Terms and Conditions
- Pre-purchase counseling certificate
Lenders who follow this list of tips will see quicker turnaround
times on their files. Once again, KHC thanks you for your business!
VA Loans with TPO Lenders
KHC announced last week that lenders could charge a 1 percent VA Flat Charge, in addition to the VA allowable fees. Unfortunately after much review, KHC has discovered that this fee violates CFPB for TPO lenders since KHC compensates the TPO lender. All program guides have been updated, and are available on KHC's website, www.kyhousing.org, under Lenders. KHC will not allow this fee for TPO Lenders. Delegated and Correspondent lenders will proceed as normal.
The annual 2017 Consolidated Action Plan for Kentucky's Block Grant Housing Programs and the 2017 Housing Trust Fund Allocation Plan are available for public comment through Tuesday, August 15, 2017.
The Consolidated Action Plan is the Commonwealth's application and distribution plan for the U.S. Department of Housing and Urban Development (HUD), Office of Community Planning and Development (CPD) Programs (HOME, ESG, CDBG, HTF, and HOPWA). Kentucky Housing Corporation and the Department for Local Government are the agencies responsible for submission of the plan to HUD. The Housing Trust Fund Allocation Plan is the Commonwealth's application and distribution plan specifically for Housing Trust Funds. Kentucky Housing Corporation is the agency responsible for submission of the plan to HUD.
Kentucky has drafted the annual Consolidated Action Plan and the Housing Trust Fund Allocation Plan and is receiving written comments to obtain public input. Written comments will be accepted and where applicable, will be incorporated into the document. The plans cover the time period of July 1, 2017 to June 30, 2018.