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REMINDER
We would like to thank our many Participating Lending partners who offer Florida Housing’s Homebuyer Loan Program’s products at a reasonable cost to our borrowers. It is important for Participating Lenders to keep in mind that our programs provide valuable down payment (DPA) and closing cost assistance to help finance affordable housing opportunities in the State of Florida. Excessive fees are a burden to borrowers and they unnecessarily deplete scarce DPA and closing cost resources for the very borrowers we try to serve.
Recent audits of final closing disclosures (CDs) have shown quite an uptick in excessive origination fees being charged by some of our Participating Lenders. Because of this, we must now institute a cap on “normal & customary fees” charged by Lenders. Effective with new loan reservations beginning on Oct. 2, 2023, Florida Housing will impose a lender fee cap of $1,750. This applies to all origination fees charged to the borrower outside of the standard program fees. This includes, but is not limited to application, underwriting, processing, administrative or other similar origination fees. Any amount that exceeds the $1,750 cap will result in a loan deficiency and require a principal reduction to the first mortgage before the loan will be considered for purchase.
Also, the items below are the most common defies that Lakeview is currently seeing in our Program. These missing items can result in late purchase which automatically will result in late purchase fees that will be deducted at time of purchase. We do not want to see our Participating Lenders pay or take a loss for participating in our Program. Be sure you are referring to our guidelines which are located here and referring to Lakeview’s government and conventional program matrices for our Program which are located here. BOOKMARK these links so you have access to the most up-to-date requirements for FL Housing and Lakeview.
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PAY HISTORY – this is required on all loans but many Lenders are not including an updated pay history when applying a PR to the first to cure tolerances.
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INITIAL LE AND CD for FIRST MORTGAGE LOAN – this is required on all loans but many Lenders are submitting electronically signed disclosures without confirmation of date signed by borrower(s).
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INITIAL LE AND CD FOR SECOND MORTGAGE LOAN – this is required on all loans but many Lenders are not disclosing the LE or trying to include the second mortgage fees on the first LE and/or CD. Each second mortgage should be disclosed separately and each second mortgage should disclose all necessary LEs and CDs.
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UNIFORM CLOSING DATASET (UCD) – many lenders are missing the UCD and should be including them with all conventional loans, the HFA Preferred offered by Fannie Mae and the HFA Advantage offered by Freddie Mac).
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THE CORRECT RATE – PLEASE, PLEASE pay attention to the Program (BOND or TBA) and the first mortgage loan type (FHA, VA, RD, HFA Preferred, HFA Advantage) you are reserving in the eHousing reservation system. Rates will vary between programs and loan types. Be especially cautious when reserving a conventional loan. There are different rates for the UP to 80% AMI option and the OVER 80% AMI option. The lower rate applies to the UP to 80% option and the higher rate applies to the OVER 80% option. The 80% AMI threshold is determined by Fannie Mae and Freddie Mac to determine if a borrower qualifies for the reduced cost, charter coverage mortgage insurance. Borrowers UP to 80% AMI would receive the charter coverage and the OVER 80% AMI borrowers would receive standard coverage. Refer to your AUS findings to determine which your borrower would qualify for. Click here to view the Fannie Mae/Freddie Mac 80% AMI income limits.
Thank you all for your continued support and participation in helping hard working Floridians obtain, safe, decent and affordable housing.
Charles White
Homebuyer Loan Program Director
Charles.white@floridahousing.org
Sandy Smith
Homebuyer Loan Program Manager
Sandy.smith@floridahousing.org
Homeownership Loan Program Team
dpa@floridahousing.org
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