US Bank Lender Training Webinar

U.S. Bank Home Mortgage

 Delivery and Funding

 CDA Requirements

 Top Exceptions

 Help Desk and Lender Reference

 203(ks)

 Customer Service and Loss Mitigation

 Underwriting Highlights and Resources

 Q & A

Agenda

U.S. Bank Home Mortgage

Review, purchase, securitize, and service mortgage

loans from all participating lenders who are

approved to originate in a program.

Loans must meet compliance requirements and

loan product underwriting guidelines, as well as

any U.S. Bank guidelines.

Delivery & Funding

 Access information at: www.mrbp.usbank.com

 Click on U.S. Bank lender manuals and “continue”

to Allregs

 Review Delivery and Funding Guidelines,

Checklists, Forms, and any Updates

 Share information with Originators, Closers &

Shippers

Select U.S. Bank Lending Manuals

Continue to Access Allregs

Open Housing Finance Authority folder

and select Maryland

Delivery & Funding

Program Information

Example

Checklist

Other Resources

Electronic Signatures on Initial

Disclosures

 Upfront disclosures are eligible to be delivered and signed

electronically such as:

– Initial application (1003)

– Initial TIL & Initial GFE

– Affiliated Business Disclosure & Transfer of Servicing Disclosure

– Any product specific disclosures required at application, i.e. ARM,

LPMI, etc.

– Any state-specific disclosures required at application or other disclosures

required at application

See Bulletin 2013-30 for more details

High Priced vs. High Cost Loans

 U.S. Bank may purchase a High Priced Mortgage Loan (HPML)

High Priced is based on the interest rate and APR

 U.S. Bank will not purchase a High Cost mortgage

High Cost is based on excessive fees in the loan transaction

See Bulletin 2009-69

Streamlined 203K

Lender Approval

 All lenders wishing to participate in the 203(ks) program

must go through a separate 203(ks) approval process.

– To be approved, lenders must have originated at least 50 203(k)

loans in the past two years.

– Approval process will include performance analysis of previous

203(k) loans originated by lender.

Note: U.S. Bank only accepts streamlined 203(k) – referred to as

203(ks) – loans. Standard 203(k) loans are not permitted.

Streamlined 203(k) Overview

Lenders must review the

203(ks) manual on U.S.

Bank website:

www.mrbp.usbank.com /U.S. Bank

Lending Manuals/203(ks) manual All

States/General Requirements

Please also review our

203(ks) presentation at:

http://www.brainshark.com/brainshar

k/brainshark.net/portal/title.aspx?pid=

zFDz5M13hz47vMz0

U.S. Bank 203(ks) Manual and Forms:

www.mrbp.usbank.com

MRBP 203(ks) Administration:

Debbie Tron 270-689-7580

Alisa Shively 270-689-7766

Bonnie Hoffman 270-689-7545

Sharon Frazier 270-689-7749

FHA:

http://www.hud.gov/offices/hsg/sfh/203k/203kmenu.cfm

203(ks) Reference

Lender Guide

Insurance Deductibles

Hazard / Flood /all other perils – Government Loans

 Deductibles may not exceed the higher of $2,500 or 2.5 % of the face amount of the

policy.

 Association Policy requirements for CONDO/PUD Projects and common areas.

Deductibles may not exceed the higher of $2,500 or 2.5% of the policy’s insurance limits

for all covered losses. U.S. Bank requires an HO-6 (walls-in) policy on all condo units.

Conventional Loans

 Deductibles cannot exceed 5% of the face amount of the policy for hazard and $5,000 for

flood. The maximum deductible on a flood policy for condo/PUD project and co-ops may

not exceed $25,000.

Provide proof via paid receipt for all policies to show one year advance payment. Include the

dollar amount paid.

The insurance agent is required to have an A. M. Best Company Key Rating Guide of Class VIII/A,

non assessable company with a Demotech A rating or a Financial Performance Rating (FPR)

of 6 or better.

Hazard Insurance / Loss

Payee Clause:

U.S. Bank National Association

its successors and or assigns as their interest

may appear.

c/o U.S. Bank Home Mortgage

P.O. Box 7298

Springfield, OH 45501-7298

Endorsements / Assignments

“U.S. Bank National Association” (First Mortgages)

Reference

CDA Program Requirements

 All loans must be originated in accordance with FHA, VA,

Fannie/Freddie, or RHS guidelines, including the following

additional guidelines:

– Minimum mid credit score of 640 required for all loans.

– Max 45% Ratio on AUS, max 36% on manual, but can go

up to 45% with compensating factors.

– All government loans (FHA/VA/RHS) sold to U.S. Bank

must be insured within sixty (60) days from the settlement

date on the HUD-1 Settlement Statement.

CDA Requirements - Property Rights

 Property Rights should be consistent on:

– Warranty Deed

– 1st Mortgage Deed of Trust

– 2nd Mortgage DSELP Deed of Trust

– Appraisal Title Binder, Policy (short form is acceptable too)

 If property is Leasehold- lender is required to escrow

Ground Rent (no exceptions)

 If Ground Rent owner is unknown you must collect 3 years

of Ground Rent at time of closing on HUD-1

Ground Rent Redemption

 If the ground rent was redeemed at closing, please

ensure all corresponding documentation reflects

fee simple vs. leasehold:

– Examples: Deed listing property as fee simple, title

policy listing property as fee simple and title

commitment stating that ground rent was redeemed at

closing, Deed of Trust not listing a ground rent, notation

of an expense related to a ground rent redemption listed

on the HUD-1, etc.

CDA Requirements

 USB will review line 802 of the HUD1 to verify no points

were collected. If there were, we will notify the lender to

refund to the borrower and give us the evidence prior to

loan purchase

 CDA DSELP or SPIF loan required to be listed on

Schedule B of title binder or commitment

– Must be in second position unless approved by CDA

CDA Requirements - Ownership

Single person—SOLE OWNER (can be listed just as borrower’s name—does not

have to reflect “sole owner.”)

Husband and wife—TENANTS BY THE ENTIRETY. This form of ownership

can be stated in one of the following ways:

John Doe and Mary Doe, his wife

John Doe and Mary Doe, husband and wife

John Doe and Mary Doe, tenants by the entirety

John Doe and Mary Doe, married

Unmarried persons or three or more persons—must state JOINT TENANTS.

Tenants in Common is NOT allowed under the CDA program

Ownership is required to be held the same on the below documents:

Application 1003 form

Warranty Deed

DOT 1

& 2

mortgages

Title Commitment/Policy

Home Inspection Certification

A Home Inspection

Certification is

required for all loans

with the exception

of new construction

and refinance loans.

Available at

mrbp.usbank.com

USB 002

All documents are to be organized in a legal-

sized folder according to the Loan Delivery

Checklist

Mailing address for all files and original

conditions:

U.S. Bank Home Mortgage

Attn: Operations Department

17500 Rockside Road

Bedford, OH 44146

Closed Loan Delivery to U.S. Bank

Loan Processing Turn Times

 The average review time for closed loans delivered for

purchase is between 3 and 5 business days from the

day of receipt by U.S. Bank

 Complete, compliance approved loans will be

approved for purchase

 Incomplete loans will be suspended and lenders will

receive a suspense letter

 Exceptions received are generally cleared with 24

hours

 Loans are generally funded within 1 to 2 business days

from the day the last exception item is cleared

Most Frequent Document Exceptions –

CDA specific

 Missing notice of assignment disclosures

 Leasehold and fee simple ownership

documentation that is not consistent across the

file documents

 Missing ground rent on first payment letters in

leasehold scenarios

 Marital status agreement errors across the

documentation

 Missing second notes

 Hazard deductibles that exceed USB limits

 Incomplete second DOT certification sections

Most Frequent Document Exceptions –

CDA specific

 Title commitments that do not reflect the DSELP/SPIF

 MDIA - missing corrective TILs

 MDIA - early TIL timing errors

 RESPA - Monthly payment amount increased without

a revised GFE

 Missing MBS Compliance Certificates

 Address inconsistencies throughout the file

 Second notes that do not show the DSELP box

checked reflecting the DSELP loan

 HUD 92900A forms that are not completed and signed

by all parties

Real Estate Settlement Procedures Act

(RESPA)

U.S. Bank’s File Review

U.S. Bank Home Mortgage-MRBP staff performs a basic compliance review of the GFE

document to ensure compliance with the following:

 Ensure GFE is on proper form

 Ensure HUD-1 is on proper form

Verify “Loan Terms” on HUD-1 match “Summary of Your Loan” on the last issued GFE

 Verify HUD-1 is within acceptable tolerances with last GFE issued including a review of

charges that cannot increase by more than 10%

 Verify lender provided acceptable cure documentation, if applicable

Post Settlement Cure: HUD allow lenders a 30-day cure period from date of borrower’s

signed closing documents for violating GFE/HUD-1 fee tolerances. Lenders exceeding fee

tolerances will be in violation of Section 5 of RESPA. USBHM must receive proof of refund

to borrower and a corrected HUD-1, from settlement agent prior to loan purchase.

NOTE: If there is a known issue, don’t wait until USBHM has reviewed as you may

exceed the 30-day cure period for correction.

Bulletin 2009-40

Mortgage Disclosure Improvement Act

Bulletin 2009-40 Page 2

RESPA Reference:

http://www.hud.gov/offices/hsg/rmra/res/respa_hm.cfm

Loans With Exceptions

 U.S. Bank will communicate all loan exceptions to a

designated person via daily fax and weekly recap report

 Exceptions can be emailed to

mrbp.exceptions@usbank.com

 Please provide separate cover letter/sheet for each loan

exception and include U.S. Bank loan number

 Once all outstanding deficiencies have been resolved and

loan has been compliance approved, U.S. Bank will

purchase the loan

Loan Purchase Process

 Loans are purchased daily once all closed loan file exceptions

and compliance exceptions have been cleared and CDA has

given final compliance approval to U.S. Bank

 Loans will be funded at an amortized balance net of escrow

funds (no checks). No escrow cushion required

 Purchased loan summary / detail is faxed to lenders

U.S. BANK Fees:

Funding Fee - $250 (net out at purchase)

Tax Service Fee - $85 (net out at purchase)

Funds to Lender at Purchase:

Applicable lender compensation per CDA directives

Lender Help Desk

 E-Mail the Help Desk

– [email protected]

 Status of loans

 Status of documents received

 Loan Deficiencies / Exceptions

 Program guidelines

 General information

 Help Desk Line:

– 1-800-562-5165

Post-Purchase - Final Documents

 Organize documents according to checklist

 All lenders are responsible for delivery of documents

to U.S. Bank

 Due within 120 days from purchase by U.S. Bank

 A late fee of $50 will be assessed after 120 days

 Deliver to: U.S. Bank Home Mortgage

Attn: Document Control

17500 Rockside Road

Bedford, Ohio 44146-2099

Title Policy:

 Mortgage amount is missing

 Schedule A, item 4 contains incorrect deed of trust recording information

 Name of insured is incomplete (needs to mirror deed of trust and have “it’s successors

and/or assigns”)

 Missing required endorsements

Deed of Trust:

 Closing date is incomplete

 Missing marital status of borrower(s)

 Incorrect maturity date

 Legal description missing

 Riders are recorded with second deed of trust instead of the first deed of trust

Assignments:

 Missing all recordings of the deed of trust

Post-Close Trailing Doc Exceptions

Customer Service Toll Free Number

800-240-7890

Hours: Monday – Friday

7:00 am – 8:00 pm EST

www.usbankhomemortgage.com

Customer Service

Borrower Payment

Address and website:

U.S. Bank Home Mortgage

P.O. Box 468002

Bedford, OH 44146-8002

www.usbankhomemortgage.com

Customer Service

 Borrowers receive monthly billing statements

 Spanish Speaking Customer Service & Default

Representatives

 Interactive Voice Response System (24 hours a day)

 Mortgagor Website Access (24 / 7)

www.usbankhomemortgage.com

 Call Center Operations M-F (7:00am – 8:00pm est.) 800-

240-7890

 Default Servicing Call Center Operations (8:00am –

8:00pm est.)

 Flexible Payment Methods: ACH, Mail,

Website, Phone

Underwriting Highlights

This presentation is for basic informational purposes

only. It does not modify or replace the information

provided by FHA, VA, RD, Fannie Mae or Freddie

Mac. All loans should be underwritten in compliance

with the most current underwriting guidelines

 It is the lender’s responsibility to follow all guidelines

specific to the program as well as any U.S. Bank

guidelines including mortgagee letters,

announcements, or bulletins. This presentation is for

general products requirements

 U.S. Bank and CDA do not re-underwrite loans and

are not liable for loans not meeting product guideline

criteria

Underwriting Highlights - Conventional

 For Conventional loans, choose “HFA Preferred” in DU or run as

a Home Possible in LP

 DU result must be “approve/eligible” and LP result must be

“accept”

 No LLPA or adverse fee collected on HFA Preferred loans.

Manual underwrites (not allowed on Home Possible)

 Follow Fannie’s guidelines for an MCM loan (eligibility matrix).

Please ensure that the most recent guidelines are followed:

efanniemae.com

 Maximum AMI limit is the greater of: the limits per the Fannie

Mae selling guide or the limits established by CDA

 SFC of 358 must be added to 1008

 The following automated systems are approved for

use with loans in the bond programs

– FHA, VA, and Conventional loans (DU or

LP)

– RD Loans (GUS)

Other lender customized automated underwriting

systems are not acceptable at this time

Underwriting Systems

Resources

FHA Underwriting Guidelines

 Guide – 4155.1 rev 5

 FHA website www.hud.gov

 Allregs www.allregs.com

 Search answers.hud.gov

 Email [email protected]

 Phone Monday-Friday, 8 am to 8 pm ET

– 1-800-CALLFHA (1-800-225-5342)

 [email protected]

Additional Resources

 Fannie Mae References

• www.efanniemae.com

 Other References

• VA: www.homeloans.va.gov

• USDA-RD: www.rurdev.usda.gov

For your participation

in the

Maryland CDA

program!

THANK YOU