Beginning today, Thursday, October 1, 2020, new reservations for any Kentucky Housing Corporation (KHC) Preferred or Preferred Plus loan that requires homeownership education must adhere to the Homeownership Education and Housing Counseling guidelines as described in Fannie Mae's Selling Guide Part B2-2-06. Specifically, borrowers must complete the Framework Homeownership, LLC (Framework®) online education program, unless they meet one of the exceptions described by Fannie Mae. The chart below provides a summary of the options:

	Homeownership Education	Housing Counseling
Provider	Framework Homeownership, LLC; or Education course provided by a Community Seconds or other down payment assistance program provider, where the program requires its own homeownership education or counseling provided by a HUD-approved counseling agency.	HUD-approved Counseling Agency.
Method of Delivery	On-line if provided by Framework, or any method offered by provider. Note: For borrowers who have a disability, lack of internet access, or other situation where another form of education (other than online) may be more appropriate, Framework will provide a referral to a HUD-approved counseling agency that can meet their needs.	In person, telephonic, or video conferencing per HUD standards.
Date Required for Completion	Prior to loan closing.	Prior to execution of the sales contract.
Required Documentation	Certificate of Course Completion from Framework (or alternate provider based on Framework referral, if applicable); or Certificate of Completion from provider.	Certificate of Completion of Housing Counseling (Fannie Mae Form 1017), signed by both the counseling recipient and the HUD counselor.

• $175 KHC Administrative Fee
  All loans; all business channels.
• $595 KHC Underwriting Fee
  All Third Party Originators (TPO) and Correspondent RHS/Conventional loans.

This change was previously made to loans reserved in PowerLender. This update is to be made across both loan origination systems, Epic and PowerLender.