Lenders,

We have made recent modifications to the Loan Delivery Guide and the Lender Delivery Checklists. Please review the changes below, as they are effective immediately.

For lenders seeking to become an approved lender with AHFA, changes have been made to the Becoming an Approved Lender section of the Loan Delivery Guide.

Obtaining and Maintaining Lender Approval - Becoming an Approved Lender

9 - The following most recent 90 days of QC reports (Originator I and II):

a.      Pre-Funding Reports with the most recent dated within 30 days

b.      Post-Closing QC Reports with management responses with the most recent dated within 90 days.

For participating lenders, additions have been made to the Hazard Insurance Policy and/or Binders section of the Loan Delivery Guide.

Hazard Insurance Policy and/or Binders

Insurer Qualifications: The insurer must hold at least one of the following ratings:

AM Best: “B” or better

Demotech: “A” or better

Kroll Bond Rating: “BBB” or better

S&P Global: “BBB” or better

Exceptions and reinsurance arrangements are allowed only under specified Fannie Mae conditions.

For participating lenders, additions have been made to the Underwriting Documentation - Appraiser Independent Requirement Policies (FNMA) section of the Loan Delivery Guide.

Underwriting Documentation - Appraiser Independent Requirement Policies (FNMA)   

• An appraiser must be, at a minimum, licensed or certified by the State in which the property to be appraised is located;
• Safeguards to ensure no employee, director, agent of the lender or any third party acting on behalf of the lender shall influence the development, reporting, results, or review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, bribery, or any other manner;
• A process to provide a copy of the appraisal to the borrower(s) promptly upon completion of an appraisal report, but in any event at least three business days prior to the closing of the Mortgage;
• A process to ensure the Seller/Servicer or any third party specifically authorized by the Seller (including, but not limited to, appraisal companies, appraisal management companies;
• A process to ensure if the Seller/Servicer has a reasonable basis to believe an Independent Party is violating applicable laws, or is otherwise engaging in unethical conduct, the Seller shall promptly refer the matter to the applicable State appraiser certifying and licensing agency or other regulatory body.

For participating lenders, additions have been made to the Closing Documentation - Initial Loan Application section of the Loan Delivery Guide.

Closing Documentation - Initial Loan Application   

• Completed SCIF Form with any revisions initialed by the lender (Conventional loans only).

For participating lenders, note the changes in the Conventional section to the SCIF requirements Lender Delivery Checklists. These may be located in the Lender Checklists section of AllRegs.

Conventional Loans Only   

• SCIF Form signed/dated

You can find the complete Loan Delivery Guide as well as the revised Lender Delivery Checklists by visiting our AllRegs site.

If you have any questions about this information, please contact Brian Hunt at bhunt@ahfa.com.