Earlier this year, we announced a change to the Step Up program in order to make it more accessible and began allowing participating lenders with Correspondent TPO Operations to deliver third party-originated loans.
On December 5, we will be holding a training for Renasant Bank as they become our first participating lender to offer this service.
This service essentially opens up the Step Up program to all mortgage lenders. Step Up is AHFA’s flagship homeownership program designed specifically for moderate-income home buyers who can afford a mortgage, but need help with the down payment.
All servicing is retained by AHFA and serviced in house. We do not compete for your customers, and institutions are able to continue their relationship with customers without any threat of cross-selling from us.
Other notes about this service:
- All loans must close in the name of the participating lender.
- All loans originated by a third party originator must be “borrower paid” transactions. The third party originator must charge and retain the required 1% loan origination fee as well as any other fee to the extent permitted by law not in excess of the amounts that would be assessed if made in connection with a non-program mortgage loan.
- The participating lender is responsible for ensuring that all underwriting is in compliance with secondary market standards and guidelines for FHA, Freddie Mac or Fannie Mae loans. In the event that there is a requirement for repurchase the participating lender, not the third party originator, will be required to repurchase the loan.
If your institution is interested in delivering third party-originated Step Up loans,
contact Cathy James at
cjames@ahfa.com
or Tony Lee at
tlee@ahfa.com for more information.
