Effected Programs for Tax Recapture Disclosure: First-Time Home Buyer and for Revised Lender Submission Checklist and Post Close Submission Checklist: FTHB, Homeward Bound, and HFA Advantage

Effective July 1, 2024, there are updated agency required documents/disclosures and requirements. Please note that older versions of the documents will no longer be accepted by the agency for reservations on or after July 1, 2024. The document(s) must be completed, signed and uploaded at time of initial underwriting submission or the loan will be placed in an incomplete submission status.

Recapture Tax Document:

1.    NEW:

a.    The document now has charts embedded within the document

that are considered part of the disclosure.

b.    The document must be provided, completed and signed at the

time of underwriting submission AND at the time of closing.

2.    The document has four (4) areas that must be completed by the

Lender.

a.    “Property Address”:

b.    ”Maximum Recapture Tax” (and loan amount):

c.    “1) targeted or 2) non-targeted area (select one):

d. “Lender Name”, “Lender Representative Name”, “Signature”,

and “Date”:

1.    The document requires the signatures of the Lender and all borrowers.

2.    The document must again be completed and signed at time of loan

closing and submitted with the closing package for loan purchase.

Lender Submission Checklist:

1.    NEW:

a.    AUS and Credit Docs- added letters of explanation.

b.    Income/Employment Docs- added clarification of requirement.

2.    REMOVED:

a.    Agency Disclosure requirement for Seller Affidavit.

Post-Closing Submission Checklist:

1.    NEW:

a.    Agency Disclosures- added Recapture Tax initial and Recapture

Tax at closing.