Arizona Department of Housing Program Guidelines:

Arizona Department of Housing

(Acting with the Arizona Home Foreclosure Prevention Funding Corporation)

Program Guidelines:

“Pathway to Purchase” Down Payment Assistance Program

PUBLISHED March 1, 2016

Revised September 1, 2016

Reginald Givens – AHFPFC Program Administrator

[email protected]ov

(602) 771-1041

Dirk Swift – Homeownership Programs Administrator

[email protected]ov

(602) 771-1091

TABLE OF CONTENTS

TOPIC See Page

Revisions Table 3

Program Partners – Areas of Responsibility 4

First Mortgage – General Program Terms 5

Daily Interest Rate Lock Reservation 5

Down Payment Assistance Grant - Options, Usage, TRID 5-7

Program Eligibility – Underlying Mortgages 7

Borrower Eligibility 7-9

Income Limits 7-8

Purchase Price Limits 8

Minimum Credit Scores 8

Maximum Debt-to-Income Ratios 8

Qualified Residence Requirements – Property Type, Geographic Restrictions 9

Additional Program Requirements – Homebuyer Education, Home Inspection (not required) 9-10

Lender Training 10-11

Lender Compensation 11

Program Fees 12

Program Timetable 12-14

Loan Delivery & Purchase - Extension fees 13-14

Summary of Origination Process

Declaration of Eligibility 14,15,17,19

Underwriter Certification 15

Down Payment Assistance Funds Request 15-16

Program Compliance Forms 17

P2P DPA Closing Package 16,17,18

Mortgage Closing / Settlement 18

Ship / Submit Credit & Compliance Files 19-20

UPDATES

DATE

TOPIC (effective immediately for new reservations unless otherwise

noted)

PAGE(S)

3/25/2015

Corrections to improve clarity

7,9,13

4/06/2016

AHFPFC email changed for funding requests

15,16

6/1/2016

New Income Limits

New Purchase Price Limits

Clarification on non-occupant co-signor

Clarification on new construction restrictions

DPA Funding Rqst submitted by 4 PM (Mon through Fri) 48 hrs prior to scheduled signing

Loss Payee Clause (AHFPFC)

Credit Package Delivery to ADOH via P2P Document Portal

Assistance for Tucson & South Tucson Delivered by Pima County / Tucson IDA

7-8

9/1/2016

Guideline Clarification

Non-Occupant Co-Signors disallowed

Power of Attorney (POA)

Removed the ownership in other residential real estate restriction in accordance of Fannie Mae

HFA Preferred

DPA funds and funding authorization number

“Table funded” was clarified to “funded”

7,9

throughout

THE ADOH PARTNERSHIP TEAM

Arizona Department of Housing: Acting with the Arizona Home Foreclosure Prevention

Funding Corporation) – Program Administrator

Creates and directly implements the first mortgage and down payment assistance program, sets

the interest rates, terms, points, authorizes disbursement of the down payment assistance funds,

completes compliance review and markets the program through our participating lenders.

Approves and monitors lender participation.

Participating Lenders

Take applications, reserve in eHousingPlus system, process, underwrite, approve, fund, close

and sell qualified loans to the program’s Master Servicer. Lenders are responsible for servicing

program loans in accordance with Agency requirements until they’re purchased by the Master

Servicer.

U S Bank - Master Servicer

Provides information and training concerning the mortgage loan file including acceptable loan

products and delivery and funding, receives all mortgage files, reviews mortgage files, notifies

lenders of mortgage file exceptions, approves mortgage files, purchases first mortgage loans and

delivers loans.

eHousingPlus - Reservation and Program Compliance

Maintains the program reservation system and related website, posts guidelines, provides auto-

fill forms, provides training on compliance issues and system, makes corrections and updates

in the reservation system at lender, Authority or master servicer requests, answers program and

system questions, sends program notices regarding program timelines, receives compliance

files, reviews, posts and notifies of exceptions and approves compliance file.

Use of Program Guidelines

These program guidelines are to be used in conjunction with the U S Bank and FNMA HFA

preferred product (underlying first mortgage) guidelines. The primary purpose of these

guidelines is to highlight program (DPA 2

mortgage) restrictions (overlays) that supersede

first mortgage guidelines. Any discrepancies or conflicts between the two guidelines should be

questions with the DPA Program Administrator. Questions should be emailed to

[email protected] with the subject line of “U S Bank, FNMA HFA, P2P Program Guideline

Conflict”.

“Pathway to Purchase” Down Payment Assistance Program

GENERAL

The Pathway to Purchase Down Payment Assistance Program (the “P2P”) is being

implemented by the Arizona Department of Housing, with the Arizona Home Foreclosure

Prevention Funding Corporation (the “AHFPFC”). In addition to the provisions set forth in

these Program Guidelines, the provisions set forth in the Mortgage Origination Agreement

shall also apply; in the event of a conflict, the provisions of the Mortgage Origination

Agreement shall control.

PATHWAY to PURCHASE - FIRST MORTGAGE LOAN

All borrowers under the P2P Program will receive a 30-year, fixed rate, fully amortizing first-

lien mortgage loan (a “P2P Loan”) and a Down Payment Assistance (DPA) second mortgage

equal to 10% of the purchase price of the subject property, subject to a maximum of $20,000.

The funds from the P2P DPA second mortgage can be used for down payment, closing costs /

prepaids and mortgage insurance premiums.

DAILY INTEREST RATE LOCK RESERVATION

Interest rates for the first mortgage component of the P2P Program are posted to the

eHousingPlus.com web page under Available Programs, Arizona, Arizona Housing Finance

Authority, RATES tab. Interest rates and reservations for this program are available Monday –

Friday 7:00 A.M. – 5:00 P.M. Mountain Standard Time, excluding Holidays.

PLEASE NOTE that interest rates and the availability of the P2P DPA second mortgage are

subject to change at any time. Once reserved, the interest rate and the amount of the P2P DPA

second mortgage will not change as long as loan is delivered according to the timetable

included in these guidelines.

 Interest rate buy-ups or buy-downs are not available on the P2P program.

PATHWAY to PURCHASE (P2P) DPA SECOND MORTGAGE

The funding for the Pathway to Purchase DPA Second Mortgage Program is provided by the

U.S. Department of the Treasury through the Trouble Asset Relief Program; Hardest-Hit Fund.

The P2P Program has $48,000,000 commitment from the Arizona Home Foreclosure

Prevention Funding Corporation Hardest-Hit fund allocation. These funds are available on a

first come first serve basis. The P2P Program cannot be combined or layered with the ADOH

HOME Plus program.

A Lender will make the determination that a borrower meets the requirements of the P2P

Loan and the requirements for receiving a DPA Second Mortgage. When the lender

reserves the first mortgage in the eHousingPlus system, the DPA Second Mortgage is

automatically reserved. There is no additional reservation necessary. The (AHFPFC /

ADOH) will fund the DPA Second Mortgage assistance amount to the Title

Company on the related P2P Loan closing. The DPA Second Mortgage a ssistance is

only available in conjunction with a P2P Loan.

AMOUNT OF ASSISTANCE

 DPA Second Mortgage is equal to 10% of the subject property purchase price up to a

maximum of $20,000.

 DPA Second Mortgage is a lien against the subject property with the following

components,

o Five-year, deferred loan 100% forgiven after five years

o 0% interest rate

o No monthly Payment

The P2P DPA Second Mortgage can be applied only for the following purposes (i) to pay for

any portion of the Purchase Price of the Residence due and payable at Closing which is not

funded by the Mortgage Loan (i.e., any portion of the “down payment” for the Residence)

and (ii) to pay for any closing costs (see next paragraph) collected by the Lender. Because the

DPA Second Mortgage is a fixed percentage, any remaining / unused DPA Grant Assistance

must be applied as a principal reduction. The P2P DPA Second Mortgage will not be applied

by the Mortgagor for any other purpose without the consent of AHFPFC / ADOH or the

Servicer.

Closing costs mean prepaid taxes, hazard and mortgage insurance premiums (including single premium

borrower paid), origination and discount points, guaranty fees, credit report fees, survey fees, appraisal fees,

inspection fees, title insurance premium, abstract and attorney’s fees, escrow and courier fees, recording fees,

and similar fees.

PROGRAM ELIGIBILITY – Underlying Mortgages

The P2P Program permits only the Fannie Mae HFA Preferred Loans (HFA Preferred is a

variance of the FNMA Home Ready formerly, MyCommunityMortgage product), at a

maximum LTV of 95.0%. The maximum LTV limit includes any borrower financed MI.

Within the Program Guidelines are the overarching requirements related to the P2P DPA

Second Mortgage. The Program Guidelines do not include ALL specific Fannie Mae HFA

Preferred agency relating program guidelines within this single document. The respective

agency guidelines for the underlying mortgage Fannie Mae HFA Preferred must be met and

requirements adhered to. Furthermore, the master servicer, US Bank could have additional

underwriting overlays.

Our Master Servicer U.S. Bank’s provides lender support at the following links:

MRBP Home Mortgage Lender manual can be found at http://www.mrbp.usbank.com

General questions on the underlying mortgage can be made at [email protected]

Exception inquires on a specific loan can be made to mr[email protected]

Inquiries on post purchased loans can be made to mr[email protected]

ELIGIBLE BORROWERS:

•

Regarding non-permanent residents, the respective agency guidelines for the

underlying mortgage (Fannie Mae HFA Preferred) must be met and requirements

adhered to. ADOH will add no additional overrides for the P2P Program.

•

All borrowers must be considered irrespective of age, race, color, religion, national

origin, sex, marital status, military status or physical handicap.

•

Borrowers must occupy the property as their primary residence and reside in

the subject property within 60 days of closing.

INCOME LIMITS:

In determining gross monthly income, the income of all borrowers expected to both live in the

residence and who are credit qualifying /on the Note must be taken into account. For

compliance purposes, the borrower(s) income calculation is based on the respective agency

income guidelines for the underlying mortgage (Fannie Mae HFA Preferred) and as disclosed

on the final, signed and dated Fannie Mae Universal Residential Application Form 1003.

•

The borrower(s) income cannot exceed $92,984.00.

PURCHASE PRICE LIMITS:

Acquisition Limits (Purchase Price Limits)

Acquisition cost means the cost to a Mortgagor of acquiring a Residence from the Seller as a

completed residential unit - in most cases this is the Sales Price. This must include everything

paid by the buyer or on the buyer’s behalf with the exception of Agency-permitted financing

costs. If the respective agency guidelines for the underlying mortgage (Fannie Mae HFA

Preferred) have a lower purchase price limit then it must be met and requirements adhered to.

•

The acquisition cost of the property cannot exceed $371,936.00.

If the subject property purchase price is less than $75,000 additional disclosures may apply.

MINIMUM CREDIT SCORE / MAXIMUM DEBT-TO-INCOME RATIO

Fannie Mae HFA Preferred Mortgage:

LTV’s 95.0% or less

 Minimum 640 FICO

 Maximum LTV / CLTV - 95.0% / 105%

 Max DTI – 45%

 Manual underwrite allowed – see agency restrictions

 16% Charter Minimum MI – LTV’s 90.01% - 95.0%

 12% Charter Minimum MI – LTV’s 90.0% - 85.01%

 6% Charter Minimum MI – LTV’s 85.0% - 80.01%

The minimum credit score requirements apply to ALL borrowers on the transaction.

 If minimum credit score required by an Agency (Fannie Mae HFA Preferred) is higher than

the program minimum, then you must follow Agency guidelines.

 If as a Participating Lender your internal requirements dictate a higher minimum credit

score, you must adhere to your lending guidelines.

 If a tri-merged credit report is used, the middle score must be the program minimum or

higher.

 If a merged credit report only returns two scores, the lower of the two scores must be the

program minimum or higher.

 Please see the U. S. Bank website “Bulletins” regarding manual underwriting.

QUALIFIED RESIDENCE REQUIREMENTS

 P2P DPA Second Mortgage assistance program is ONLY available in the following 17

Arizona Cities:

o Arizona City, Avondale, Buckeye, Casa Grande, Coolidge, Douglas, El Mirage,

Fort Mohave, Goodyear, Huachua City, Laveen, Maricopa, Red Rock, Sierra

Vista, Snowflake, Yuma.

o Tucson & South Tucson – Contact Pima County/Tucson IDA for first mortgage

and/or eHousing system questions.

 For Fannie Mae HFA Preferred, only existing Single Family properties, including attached

PUD’s / Townhouses and Condos are allowed. See US Bank website for Bulletins and

Guidelines on credit overlays.

 Existing, previously occupied properties only, new construction, including spec homes are

not allowed.

 Manufactured Homes are not permitted.

ADDITIONAL PROGRAM REQUIREMENTS

•

Seller cannot advance funds, solicit or induce funds to be advanced by another,

directly or indirectly, for the payment of any amount required by the Loan;

•

Non-Occupant Co-Signors: While the underlying first mortgage, Fannie Mae HFA

Preferred allows for non-occupant co-borrowers (co-signors), a non-occupant co-

borrower or a non-occupant co-signor conflicts with the strict occupancy requirements

of the soft second lien on the P2P Program. As such non-occupant co-borrowers (or

non-occupant co-signors) are not allowed.

•

Power of Attorney (POA): The use of a POA must be reviewed and approved by

Program Administration prior to the funds request being processed and the DPA

closing package being signed. The DPA Funds Request and POA should be uploaded

to the program portal at https://housing.az.gov/portals/document-upload-portals/p2p-

portal and labeled POA Request.

•

Homebuyer Education Course Required: Each borrower must complete a

homebuyer education course before closing. The homebuyer education requirement

may be met by taking a pre purchase course through an internet-based program

developed by mortgage insurance companies, such MGIC or Genworth Financial or

through another HUD-approved homebuyer education provider. These outlets meet

the standards prescribed by the National Industry for Homeownership Education and

Counseling (NIHEC). http://www.homeownershipstandards.com. These standards

were developed by HUD, Freddie Mac, Fannie Mae, and various lenders and interest

groups.

•

Cash back to the borrower is not permitted. However, borrowers are permitted a

reimbursement of overage of earnest money deposit to the extent any minimum

contribution has been satisfied and permitted by Agency guidelines.

•

No Minimum Loan Amount: there is no minimum loan amount required under the

P2P Program. If a minimum loan size applies, it is determined by the type of financing

used (i.e. Fannie Mae HFA Preferred).

•

Prepayments: P2P First Mortgages may be prepaid at any time without penalty.

•

No “Mortgage Subsidy” Recapture Tax: There is no Mortgage Subsidy Recapture

Tax under the P2P Program.

•

No Refinancing: The P2P program is available for purchase money transactions only.

•

Escrow / Impound Account Requirements: The borrowers must establish an

impound/escrow account for monthly collection (1/12) and annual /semi-annual

disbursement of the property taxes, homeowner’s insurance premiums and private

mortgage insurance (if applicable) and flood insurance (if applicable).

•

Reserve Requirements: T h e r e a r e n o minimum / maximum reserve

requirements under the P2P Program. The P2P Program does not have liquid asset

overlays, restrictions or requirements, furthermore program does not impose

restrictions on a homebuyer putting/ providing additional funds for the down payment

/ closing costs OR retaining his/her liquid assets in reserves and using just program

funds for down payment / closing costs. If any reserves are required, these are

determined by the DU Finding or any agency related guidelines. (i.e. Fannie Mae HFA

Preferred).

•

Home Inspection: It is the homebuyer’s option to obtain a home inspection. This is for

their benefit and does not need to be provided to the lender, master servicer or

program administrator. The fee for this inspection can be covered by the DPA

assistance funds.

LENDER TRAINING

If you are an existing ADOH HOME Plus lender, with user credentials for the HOME Plus

program, you do NOT need to take additional on-line training. Your current ADOH HOME

Plus program credentials will allow you access to the P2P DPA Second Mortgage Program.

For new users, the Lender training is a three step process that involves ADOH HOME Plus

Program training via eHP University, US Bank (Servicer) Training and System Training via

eHP University.

1. Mandatory ADOH HOME Plus Program Training.

a. Program training is offered via eHP University and is an online, non-instructor

led course. Training is available 24 hours a day, 7 days a week, is self-paced

and can be completed in 30-45 minutes. You attend when it is convenient for

you.

b. To attend, click the following link, create a user account and attend training.

http://www.ehpuniversity.com/arizona-hfa.html

c. Immediately upon course completion, the attendee will receive an email with a

finisher’s certificate, how to apply for user credentials and information on how

to attend US Bank training.

2. US Bank (servicer) Training

a. Just like the ADOH HOME Plus Program training, the US Bank servicer

training is available 24 hours a day, 7 days a week, is self-paced and can be

completed in 30-45 minutes. You attend when it is convenient for you.

3. eHousingPlus System Training

a. Every Wednesday at Noon Eastern Time, eHousingPlus conducts a Live

Webinar system software training. During this training lenders learn how to

use the eHousingPlus system software to reserve funds, print forms, etc.

System training is completed in one hour.

b. It is highly encouraged that anyone who will reserve funds, complete an

underwriter certification, print forms, order DPA funds or clear exceptions

attend this training.

c. To attend, click the following link: http://www.ehousingplus.com/ehp-system-

trainings/

LENDER USER CREDENTIALS

Following the completion of the ADOH HOME Plus Program Training via eHP University, an

email will be sent to the attendee (lender) providing directions on how to apply for User

Credentials for the lender portal. User credentials are necessary to system access and P2P loan

reservation.

LENDER COMPENSATION SUMMARY

 The lender compensation is 2.50% and is paid in Service Release Premium SRP.

Loan Type

Origination

points

SRP paid at loan

purchase

Total Lender

Compensation

Fannie Mae HFA

Preferred LTV <95%

-0-

2.50%

 Normal lender administration, document preparation, processing and/or underwriting fees

are not included in the lender compensation cap. Discount Points are not allowed.

PROGRAM FEES

ADMINISTRATOR FEE – eHousingPlus.

The Program includes a non-refundable Compliance Review Fee of $275. The fee is payable

at closing and must be disclosed on the Closing Disclosure and can be paid by the buyer or

seller.

SERVICER FEES – U.S. Bank

A $85 Tax Service Fee and $400 Funding Fee are payable at closing. Both must be disclosed

on the Closi ng D isc losu re a nd can be paid by the buyer or seller.

DPA Second Mortgage Lien - Pathway to Purchase

The only allowable fee to be charged in association with the Pathway to Purchase DPA second

mortgage lien is a recording fee.

US Bank provides lender support for TRID related issues at

USBHMLenderSuppo[email protected]

OTHER LENDER FEES

Lender Fees are fees paid to the Lender for services rendered (i.e. Processing Fees,

Underwriting Fees, Administrative or Administration Fees and Doc Prep Fees). Lender fees

(regardless of what they are called) should not exceed what is charged to the Lender’s other

borrowers. The purpose of down payment and closing cost assistance is not to provide a

source to pay for such fees. This is a public purpose program for affordable housing and

fees are closely monitored. Junk fees are not permitted and excessive fees will not be

tolerated. An Application Fee must include no more than the actual costs of allowable items

such as appraisals.

PROGRAM TIMETABLE

Buyers MUST HAVE A FULLY- EXECUTED SALES CONTRACT FOR A SPECIFIC

PROPERTY in order to have funds reserved or be on a waiting list. The contract may be dated

prior to the date of the loan application. Buyers may be pre-qualified. However, if the

buyer does not have a contract on a property, program funds cannot be reserved for the

buyer until such time as the buyer presents a valid contract. To assure that loans are

purchased, please follow the Processing, Delivery and Purchase Timetable below. Please DO

NOT reserve loans that cannot meet the timetable.

If the loan is not underwriter certified within 10 days of loan reservation, the loan is subject to

cancellation. eHousingPlus via email notifies lenders that the loan may be canceled if the

underwriter certification is not completed. Should the loan reservation be canceled at any

point during the reservation, the issuer may allow the loan to be reinstated at the

higher of the mortgage rate originally reserved or the then current program mortgage rate.

Please wait until 30 days before closing to reserve funds on short sales and foreclosures. Loans

not purchased within the timeframe below cannot be purchased. The revolving pool of

funds assures continuous funding. Fund availability makes it unnecessary to rush to reserve

funds.

NOTE: It is expected that Lenders will review preliminary documentation and believe in good faith that

applicants will qualify for loan credit approval. Excessive cancellations of loan reservations with respect to a

Lender will be reviewed to assure that the Home Plus Program is not being utilized inappropriately by a

Lender.

MILESTONE DATES:

Once a loan is reserved in the eHousingPlus system and is provided the Servicer’s Loan

number, the loan must be

1. underwriter certified within 10 days of loan reservation

2. closed and delivered to the Servicer within 35 days of loan reservation and

3. purchased within 60 days of loan reservation.

MORTGAGE LOAN DELIVERY and PURCHASE

Lenders must close, fund, deliver and clear conditions on the Mortgage Loans with the Master

Servicer (U.S. Bank National Mortgage Association) within sixty (60) calendar days of the date

the Mortgage Loan is reserved on the Lender Portal. Adequate time should be allowed for U.S.

Bank to perform a compliance review of the credit loan package in order to cure any conditions

prior to their approval to purchase the loan.

The Mortgage Loan must be purchased by the Servicer within sixty (60) calendar days of the

date the Mortgage Loan is reserved on the Lender Portal. If a Mortgage Loan is not purchased

within such sixty (60) day period, an extension is available for a fee that is applicable to the

extension time necessary.

Rate Lock Extension

Extension Fees

7 days

0.09375 Points

15 days

0.18750 Points

22 days

0.28125 Points

30 days

0.37500 Points

These fees will be netted out of the lender service release premium (SRP) upon loan purchase

by US Bank.

To the extent that Assistance is advanced on loans that do not close, are not purchased by the

Servicer under the program or are to be repurchased by the lender prior to being pooled into a

mortgage-backed security, the lender will be required to reimburse ADOH with respect to

such Assistance so advanced.

CANCELLATION and COMMITMENT EXPIRATIONS

The Lender is responsible for cancelling all Mortgage Loans subject to a reservation if the

Mortgage Loan will not be delivered under the applicable Program. Please note, should the

Lender cancel a reservation, the Lender will be prohibited from making another reservation for

that Borrower for a period of 60 days or unless otherwise authorized by the Program

Administrator.

a. In a case where the Borrower cancels or withdraws his or her application, the

reservation of funds must be cancelled by contacting the Program Administrator.

b. In a case where the Commitment expires, the Lender must request an extension using

the Extension Request Form available through the Lender Portal, and provide the new

estimated closing date.

In all cases, the expiration of the Commitment without the required action by the Lender may

result in the Lender being placed on “Inactive Status,” meaning the Lender may submit no new

reservations until the problem is resolved. Failure to comply with this provision may result in

the Lender’s expulsion from the Program.

SUMMARY of the ORIGINATION PROCESS

LOAN RESERVATION

Once the lender determines the borrowers(s) is program eligible the transaction can be reserved

in the eHousingPlus system. The interest rate on the first mortgage is locked and the down

payment assistance is set at the time of reservation, the 60-day delivery timeline also begins. It

is strongly recommended that lenders do not reserve too early as exceeding the 60-day delivery

timeline will result in an extension fee and a reduction of the lender compensation. Reserving

the first mortgage automatically reserves the down payment assistance. The lender will receive

a loan number and message confirming the successful completion of the reservation.

Any time after loan reservation the lender can generate the Declaration of Eligibility Package.

The documents in this package; Declaration of Eligibility, Dodd-Frank Certificate and Third

Party Authorization will need to be signed by the borrower(s) and the originals included in the

compliance package sent to eHousingPlus.

UNDERWRITING AND CERTIFY

Lenders underwrite & are responsible for credit decisions of the loans in the program. Servicer

does not re-underwrite loans **. Following credit approval AND WITHIN 10 DAYS OF LOAN

RESERVATION, Underwriter completes the online underwriter certification form.

REQUEST P2P DOWN PAYMENT ASSISTANCE FUNDS

The Arizo na Home Fo reclo su re P reventio n Fund ing Co rporation (AHFPFC)

MUST provide DPA funds directly to the Title Company / Closing Agent. DPA funds

are requested by the lender prior to closing and funded by AHFPFC, sending DPA funds

directly to the lenders Title Company. The Lender will not advance the DPA funds. These

requirements apply to all loan types.

In order to expedite the delivery of the P2P DPA funds:

1. After the underwriter certification of the loan has been completed, and with a scheduled

closing date, the Lender’s authorized representative must fill out and execute the

DPA Funding Request Form available within the eHousingPlus Lender Portal

2. The DPA Funding Request Form must be printed, signed and scanned in pdf, jpg, and tiff

or png format by 4:00 PM (Monday through Friday) 48 hours prior to the scheduled

signing. The DPA Funding Request Form CANNOT be handwritten; it must be from the

eHousingPlus Lender Portal after an Underwriter Certification has been submitted

online. Should any of the reservation information on the transaction need to be corrected,

contact the eHousingPlus compliance department at (888) 643-7974 or email

eHousingPlus Services at serv[email protected] and a compliance specialist will

assist in updating the system.

3. Two business days prior to loan signing, the Lender must send a complete,

executed scanned version of the DPA Funding Request Form to AHFPFC at:

[email protected]

4. Request Form Review

a. Anything received by 4 p m A r i z o n a T i m e will be verified that day

and the requests forwarded to our Custodian Bank; Zion Bank.

b. Requests received after 4 pm Arizona Time will be processed the following

business day.

c. Any DPA Funding Request Form received over the weekend or on a holiday will

be processed on the next business day.

5. The DPA Funding Request Form will be reviewed by AHFPFC for accuracy.

Lenders will be contacted by AHFPFC if the Request Form cannot be verified. Verified

Request Forms are sent by AHFPFC to the Zion B a n k fo r authorization to disburse

D P A funds. The Z i o n B a n k w il l wire t h e P 2 P DPA funds directly to the

Closing Agent/Title Company and NOT to the Lender or the Borrower.

6. It is the lenders responsibility to generate the P2P DPA Closing Package and forward to

the Closing Agent / Title Company. These documents can be included with the lenders

first mortgage documents. An Arizona Department of Housing / Save Our Home AZ

(ADOH / SOHAZ ) representative will send Escrow Instructions directly to the Title

Company detailing information related to the return of the executed DPA Closing

Package directly to ADOH / SOHAZ.

7. The title company is responsible for uploading the executed DPA Closing Package

directly to ADOH / SOHAZ according to Escrow Instruction provided by ADOH by 4PM

two days prior to the desired disbursement date of the transaction; in order to receive

DPA funds and a Funding Authorization.

If the P2P transaction does not fund with three business days of the loan closing date indicated

on the DPA Funding Request Form, the Lender will notify the Authority if the loan does not

close and the funds will be returned to the Authority’s Account not later than the close of

business within three business days following the expected loan closing date. Wiring

instructions for the return of funds are as follows:

Zions Bank

ABA: 124000054

Account # 08-00006-15

Further Credit: A/C #0512001

Beneficiary: Arizona Housing Finance Authority

Tina Valenzuela – Corporate Trust Administrator

Christina..Valenzuela@zionsbank.com

(602) 212-5457

The DPA Closing Package only needs to be reproduced if the transaction does not sign in the

month the documents are dates. It is AHFPFC goal is to facilitate this process and to provide

Lenders the assistance needed to ensure the DPA funds are available at each P 2 P Loan

closing. Please make sure that [email protected] are added to your white lists/contacts

for both system-generated emails and other emails relating to the DPA Funding Request.

Should you have any questions, please contact Reginald Givens at

Reginald.Givens@azhousing.gov or (602) 771-1041.

PROGRAM COMPLIANCE FORMS

The simple rule of whom signs program forms – if the person is named on the Mortgage/Deed,

they sign the forms. If they are not on the Mortgage/Deed, they do not sign the forms. Having

people sign documents who should not sign is as incorrect as not having all sign who should.

Original, personal signatures of all borrowers and sellers are required and must match

on all documents associated with the transaction.

Forms are available online at www.ehousingplus.com and most fields’ auto-fill for

printing as a completed document.

PRE-CLOSING FORMS:

 Declaration of Eligibility Package; includes Declaration of Eligibility, Dodd-

Frank Certificate, initial Truth-in-Lending Disclosure (TILA) and Third Party

Authorization.

 DPA Wire Request (must submit 2 full business days prior to signing)

CLOSING FORMS – DPA Closing Package

•

Applicant Certification

•

DPA Promissory Note

 DPA Deed of Trust

 Final Truth-in-Lending Disclosure (TILA)

 Disclosure Statement to Borrower

 Media Release – borrowers option

 W-9

LENDER LOSS PAYEE Requirements

 Obtain evidence of hazard insurance and get AHFPFC listed as an additional loss

payee. The clause should read exactly as:

AZ Home Foreclosure Prevention

Funding Corp, c/o ADOH, ISAOA

1110 W Washington St, Suite 280

Phoenix, AZ 85007

Loan #: P2P_________

POST-CLOSING FORMS

•

Compliance File Checklist with Required Documents

MORTGAGE CLOSING / SETTLEMENT

The lender is responsible for generating and providing to their Title Company the DPA

Closing Package. In order to ensure an on time funding make note of the following:

 The closing date in the eHousing system must equal the signing date of the transaction.

This ensures the closing documents are properly dated.

o Deed of Trust – Insert the Escrow Number, Title Company as the trustee and

applicant as the trustor

o Deed of Trust – Insert the Maturity date on Page 1

o Promissory Note - Insert the Maturity date on Page 1 and Page 2

 The funding may occur up to 72 hours post the signing.

In addition, if the Declaration of Eligibility Package has not yet been signed by the borrower,

this package should be generated by the lender and sent to their Title Company.

In addition to the review and authorization of DPA funds, an Arizona Department of Housing

/ Save Our Home AZ representative will send Escrow Instructions directly to the Title

Company detailing information related to the return of the executed DPA Closing Package

directly to ADOH / SOHAZ. The following items will be returned by the Title Company

directly to:

Arizona Department of Housing c/o Save Our Home AZ

Attn: Closing Team

1110 W Washington Street, Suite 310

Phoenix, AZ 85007

1. Certified copy of the Final Closing Disclosure

2. Certified copy of the DPA DEED of Trust

3. Original DPA Promissory Note

4. Original Truth-in-Lending Disclosure (TILA)

5. Original Applicant Certification

6. Original Disclosure Statement

7. W-9

8. Media Release – if borrower executes

9. Complete Copy of Mortgage File – Credit Package sent to US Bank via Secure Portal.

All forms can be found at the eHousingPlus website.

SHIP / SUBMIT CREDIT & COMPLIANCE FILES

There are three (3) files shipped post-closing and it is extremely important that the lender

submits both in a timely manner.

1.Mortgage File – Credit Package to USBank.

The mortgage file, including the credit package is sent to US Bank, via their doc Velocity

system. The US Bank Loan Delivery Checklist may be found on the US Bank web site,

www.mrbp.usbank.com

Click on US Bank Lending Manuals.

Pop-up box will appear, click on Continue

Web page will be redirected to US Bank All Regs site

Click on Housing Finance Authority folder

2.Mortgage File – Credit Package to ADOH.

Additionally, the mortgage file, including the credit package is sent to ADOH, via their

P2P Document Portal system. The P2P Document Portal may be found on the ADOH

web site, https://housing.az.gov/portals/document-upload-portals/p2p-portal

Fill in the form with required information; Email, First Name, Last Name, Phone

Number, eHousing Loan Number and attached the document by clicking the “Choose

Files” button.

3. Compliance File

The compliance file is sent to eHousingPlus at:

eHousingPlus

3050 Universal Blvd.

Suite 190

Weston, FL 33331

Documents required for Compliance File sent to eHousingPlus.

1. Real Estate Purchase Contract - copy

The full address of the property, full names of all sellers and buyers, total purchase

price of the property must be included. If there is not an address for new

construction, a lot number and subdivision name is required. All named persons must

sign. Include the name and title whenever a representative is signing for a corporation.

2. Final Typed Loan Application (1003) - copy

The typed application signed and dated by all parties is required. Loan interviewer must

complete and sign page 3 of 4 of the 1003. If this is not possible, then an Officer must sign

in place of the interviewer. All persons taking title to the property must execute all

documents. The income disclosed on the Affidavit must be the same or more than that

shown on the 1003. The purchase price, loan amount, and other financial details must be

the same as shown on all other documents.

3. Closing Disclosure (settlement statement) – certified copy

Borrowers on the Closing Disclosure must be all persons taking title to the property and

match the Affidavit and application. Persons not taking title to the property may not

appear or sign the Closing Disclosure

4. Warranty Deed - copy

5. Homebuyer Education Certificate - copy

Homebuyer Education must be completed prior to closing. Certificates are acceptable if

the completion date is within 12 months of loan closing of the P2P loan.

6. Signed Declaration of Eligibility, Household Composition, Dodd-Frank Certificate

and Third Party Authorization – original

7. Compliance Review fee of $275.

Corporate Checks only made payable to eHousingPlus, include borrower name and

servicer loan number on check.

EXCEPTIONS

Lenders are notified by eHousingPlus and U.S. Bank of exceptions. Exceptions for both

eHousingPlus and U.S. Bank are available in the eHousingPlus web-based system.

FINAL DOCUMENTS

The recorded mortgage documents should be sent to U.S. Bank.