Mcc

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MBOH Purchases 101
www.housing.mt.gov
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housing.mt.gov
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Housing.mt.gov/Hous_boh_sf.asp
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Housing.mt.gov/Hous_boh_sf_apps.asp
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Housing.mt.gov/Hous_boh_sf_apps.asp(cont)
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LOL Submission Form
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• Completely fill in information

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(No Transcript)
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• Completely fill in information

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1. Mortgage Insurance

• RD Loan Note Guarantee
• Must be original
• Receive before purchase can take place
• Private Mortgage Insurance
• Signed and completed by lender representative
• If not servicer, complete servicer transfer box
• Receive before purchase can take place
• FHA Mortgage Insurance Certificate, HUD 184
  Guarantee
• VA Loan Guarantee Certificate
• Allowed 90 days from purchase date to-follow
• If not received in 90 days, lender buys back loan

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2. Note

• Must have for MBOH to purchase
• Must be original
• Signatures of borrower/co-borrower and/or
  co-signer
• Must be endorsed to MBOH
• If payments made, need loan history breaking out
  principal, interest, curtailments and showing
  ending principal balance

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3. Assignment of Deed of Trust

• Original or clerk/recorders original certified
  copy
• Deed of Trust information
• Transferred to MBOH
• Lender Signature
• Notarized
• OR
• MERS Online Summary
• Shows transfer to MBOH
• Number assigned by MERS

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4. 5. NHS Note/Subordinate Trust Indenture

• For NHS 1st Only
• Needs to be
• Original note

xxxxxxxx
http//housing.mt.gov/Hous_BOH_SF_NHS.asp
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4. 5. Continued.

• For NHS 2nd
• Needs to be original note
• Needs to be original trust
• indenture
• Must be recorded

http//housing.mt.gov/Hous_BOH_SF_NHS.asp
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6. Deed of Trust

• Copy of recorded Deed of Trust applicable
  Riders
• Proper names
• Loan amount
• Legal description
• Property address
• Signed notarized
• Riders

http//housing.mt.gov/Includes/BOH/Singlefamily/Un
iformrider05.pdf
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7. Mortgagee Title Insurance

• Names MBOH as insured party or Endorsement
  10/104
• Shows sufficient coverage
• Endorsements 8.1, 100 116
• If manufactured home, FA7 endorsement
• Note Need original title policy within 90 days.
  If not received in 90 days, lender buys back
  loan.

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7a. Title Commitment

• Required for purchase
• Endorsements listed
• Legal description not multiple lots
• Schedule A B attached

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8. HUD-1 Statement

• Borrowers Sellers statements
• No underwriting fees
• Does not need to be original or certified
• Signed by borrower, seller settlement agent
• NO CASH BACK TO BORROWER(S)

For RD loans, must show 1,500 investment by the
borrower or 500 a First Time Homebuyers
Education Certificate.
FYI
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9. Mortgagors Affidavit

• Must be original
• Signed by borrowers lender
• Notarized
• Correct interest rate
• Property address
• Targeted or Non-targeted
• Number of people in household needs to match
  number of people listed on loan application
• Acquisition cost must match HUD-1 Sellers
  Affidavit

http//housing.mt.gov/includes/boh/singlefamily/Mo
rtgagorAffidavit.pdf
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10. Sellers Affidavit

• Must be original
• Signed notarized
• Lender signature no longer required
• Corrected form found at http//housing.mt.gov/Inc
  ludes/BOH/Singlefamily/SellersAffidavit.pdf
• Acquisition amount matches Borrowers Affidavit
• Sellers address (PO Box acceptable)

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11. Loan Application

• Signed copy
• Must have face-to-face interview
• HUD 92900 for FHA loans
• 4 pages
• VA 26-1820 for VA loans
• 2 pages
• VA Disclosure Statement
• Signed by borrower
• No Addendum for Deep Equity, Genworth or RD
  loans

http//housing.mt.gov/Includes/BOH/Singlefamily/VA
DiscStmt.pdf
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12. Income Verification

• Verify income for anyone 18 and older residing in
  house through
• VOEs
• Current profit loss/Tax returns for past two
  years for self-employed
• Court order for child support
• Social Security or VA benefits letter
• Verbal verification not acceptable
• If not working, supply signed letter of
  non-employment

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MBOH Income Calculations
http//housing.mt.gov/Hous_BOH_SF_IncomeGuide.asp
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13. Federal Tax Returns

• Past three (3) years
• Signed by borrower(s)
• Non-targeted areas only
• Note If between Jan. 1 Apr. 15, tax returns
  for 2006 will be final documents and should be
  received by 6/1/07.

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14. Recapture Notice

• Presented to signed by borrower at time of
  application
• MBOH will reimburse any federal recapture tax
  paid associated with the MBOH loan except for MCC
  and MBS programs

http//housing.mt.gov/includes/boh/singlefamily/Re
capNotice.pdf
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15. Notice to Mortgagor of Maximum Recapture Tax

• Copy or original
• Signed by borrower(s)
• Correct name, address loan amount
• MBOH current income limits (3)
• Correct calculations
• Again, MBOH will reimburse any federal recapture
  tax paid associated with the MBOH loan except for
  the MCC and MBS programs

http//housing.mt.gov/Includes/BOH/Singlefamily/re
capturenotice05.pdf
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Recapture Tax Reimbursement Request form

• http//housing.mt.gov/Includes/BOH/Singlefamily/Re
  capture_Tax_Reimbursement_Request_Form.pdf

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16. Buy/Sell

• Purchase price
• Correct address
• Include counter offers
• Signed by borrowers sellers
• Multi lots dwelling location
• Personal property statement, if applicable

http//housing.mt.gov/Includes/BOH/Singlefamily/Pe
rspropstmt.pdf
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17. Evidence of Hazard Insurance

• Property address
• No more than 1,000 deductible
• Adequate coverage
• Re-build or Replacement cost
• MBOH listed as First Mortgagee
• Or request for Change of Mortgagee clause

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18. Evidence of Flood Insurance

• Property located in special flood zone or FEMA
  Zone A
• Flood zone certificate or marked on appraisal
• Adequate coverage
• Re-build or replacement cost
• MBOH listed as First Mortgagee
• Deductible no more than 750

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19. Uniform Residential Appraisal Report

• Pages 1 6
• Addendums and/or compliance reports
• Multi lots?
• FEMA flood zone
• Rental situations
• Public or private water/sewer
• 35 or less (site value/appraisal amount)

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20. Photograph of Mortgaged Property

• One photo needed
• Color copies permitted

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21. RD Guaranteed Rural Housing lender change form

• Copy acceptable
• Signed by mortgagee
• All applicable lender codes
• MBOH named as Holding Lender

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VA Letter of Sale
Example
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22a. Early Delinquency Counseling Form

• Required on all loans
• Signed by borrower(s)

http//housing.mt.gov/Includes/BOH/Singlefamily/ea
rly_delinquency_counseling_form.pdf
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22b. Release of Financial Information form

• Required for all set-aside loans
• Name of organization providing assistance
• Signed by borrower(s)

http//housing.mt.gov/Includes/BOH/Singlefamily/Re
leaseOfFinancialInformation.pdf
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22c. First Time Homebuyer Education Certification

• Must have to purchase Set-aside loans
• Must be MHN certified class
• Online classes not acceptable

http//www.nwmt.org/schedule.htm
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Penalties

• Cancellations
• Penalty 1/2 X principal amount sent to MBOH in
  a check
• Extensions
• Within 45 days of closing date or
• Penalty 1/2 X principal amount for each
  additional 30 day extension

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Penalties Cont.

• Suspensions
• Within 30 days from date notified of suspensions
  or
• Penalty 1/2 X principal amount taken from
  proceeds to lender
• Final documents
• within 90 days of purchase by MBOH or
• Penalty Lender buys back loan

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• Run Reports on
• Current Stage Status
• Conditions/Exceptions
• Purchase Advise
• https//lenderonline.commerce.state.mt.us

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MBOH Home Ownership Team
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