In This Issue
TPO Approved Closing Agents
Third Party Originator (TPO) Lenders should utilize the TPO Approved Closing Agents List when selecting a closing agent for loan closings. These are the only closing agents that are currently approved to close loans for Kentucky Housing Corporation (KHC).
KHC will be adding new TPO Closing Agents once we go live with our new loan origination system (LOS), but any loans in the current system must refer to the list above.
Seller's Property Disclosure
Effective immediately, KHC will require the Seller's Property Disclosure on all purchase transactions, regardless of the involvement of real estate agent. This is due to Kentucky Revised Statute ยง 324.360, requiring sellers of single-family residential properties to make certain disclosures to a potential buyer. This law applies regardless of whether a licensed salesperson or broker is involved in the transaction. For more information, please see the Seller's Disclosure of Property Condition (KREC Form 402).
The form is not required for:
  1. Residential purchases of new construction homes if a warranty is provided;
  2. Sales of real estate at auction; or
  3. A court-supervised foreclosure.
Mortgagee Letter 2020-24
The Federal Housing Administration (FHA) published Mortgagee Letter 2020-24 on July 29, 2020, announcing temporary modifications regarding self-employed borrowers and rental income effective for cases with note dates on or after August 12, 2020.  The temporary changes include the following:
Verification of Self-Employment
When self-employment income is used to qualify a borrower, the mortgagee must verify and document that the income is stable and will continue. 
Due to COVID-19, the mortgagee must verify the existence of the borrower's business within 10 calendar days prior to the date of the note to confirm the business is open and operating.
The mortgagee may obtain one of the following:
  • Evidence of current work (executed contracts or signed invoices that indicate the business is operating on the day the lender verifies self-employment);
  • Evidence of current business receipts within 10 days of the note date (payment for services performed);
  • Lender certification that the business is open and operating (lender confirmed through a phone call or other means); or
  • Business website demonstrating activity supporting current business operations (timely appointments for estimates or service can be scheduled).
Rental Income
When a borrower is qualifying utilizing rental income, for each property generating rental income, the mortgagee must either:
  • Reduce the effective income associated with the calculation of rental income by 25%, or
  • Verify 6 months PITI reserves (this option is applicable to Forward only), or
  • Verify the borrower has received the previous two months rental payments as evidenced by the borrower's bank statements showing the deposit. (This option is applicable only for borrowers with a history of rental income.)
Career Opportunities
KHC currently has the following positions open:

HCV Housing Coordinator
Tenant Assistance Programs
Hourly Range: $14.70-$18.37
Please respond no later than today, Thursday, July 30, 2020.

HCV Housing Specialist
Tenant Assistance Programs
Hourly Range: $16.90-$21.13
Please respond no later than  Tuesday, August 4, 2020.

Weatherization Monitor/Trainer
Multifamily Programs, Residential Energy Efficiency Center
Hourly Range: $43,594-$54,492
Please respond no later than  Tuesday, August 4, 2020.

If you are interested in these positions, full details are available on KHC's website under Careers.
DO NOT REPLY-This is an unmonitored email address. 
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