indian housing loan guarantee program[印度住房贷款担保计划](124).ppt

SECTION 184 INDIAN HOUSING LOAN GUARANTEE PROGRAMFargo,North DakotaSeptember 2010U.S.Department of Housing and Urban DevelopmentPROGRAM OVERVIEWSection 184 Training,Sponsored by HUD PROGRAM OVERVIEW1992 Housing and Community Development ActAnnual funding by CongressNationwide ProgramSection 184 Training,Sponsored by HUD LENDING IN INDIAN COUNTRY IS UNIQUEUnique land statusTribal Trust LandAllotted Trust LandUnrestricted LandUnderserved marketsNon-traditional creditLimited access/exposure to financingManual underwritingSection 184 Training,Sponsored by HUD184 PARTNERSHUD 184 Program StaffLendersTribesTDHEs(Tribally Designated Housing Entities)BIA(Bureau of Indian Affairs)Section 184 Training,Sponsored by HUDLENDER INCENTIVES/OPPORTUNITIES100%guaranteed loanAssign or forecloseUp to 2.5%loan origination fee on construction/rehab loansCommunity Reinvestment Act(CRA)Section 184 Training,Sponsored by HUDPARTNERROLES AND RESPONSIBILITESSection 184 Training,Sponsored by HUD WHAT DOES HUD DO?Develops and implements policiesConducts training and marketingUnderwrites the loanIssues the Loan Guarantee CertificateSection 184 Training,Sponsored by HUDWHAT DOES THE LENDER DO?Lends the money!Explains the 184 mortgage loan process Processes and prepares the loan packageServes as liaison between borrower and HUDUnderwrites the loan(Direct Guarantee approved)Section 184 Training,Sponsored by HUDELIGIBLE LENDERSBank,Savings&Loan,Credit UnionMortgage Companies approved through FHA,VA or RDFHA approved Brokers with 184 Program SponsorshipLenders/Tribe obtain approval through NAHASDA(Chapter 3 of Guidebook)Section 184 Training,Sponsored by HUD 3 STEP LENDER APPROVAL PROCESSSection 184 Training,Sponsored by HUD Lender PackageSection 184 Training,Sponsored by HUD RETAINING AN ACTIVE STATUS Submit annual,updated certification package to designated OLG staff.(In the planning stages)Request training for all new/inactive staff.Process at least 2 applications within a 6 months period.Section 184 Training,Sponsored by HUDCONTENTS OF LENDER PACKAGEStatement requesting approval to include:Name and address of applicant,geographic service areaEIN number for applicant and date on Incorporation,Companies that are already approved lenders need not resubmit a new Lender package,but training is mandatory for all new staff.Section 184 Training,Sponsored by HUD CONTENTS OF LENDER PACKAGE(CONT.)List of Officers/Directors who supervise staff and persons holding more than 10 percent of stock in the entity including phone numbers,home addresses and social security numbers.List of employees who will participate in the program to include social security numbers,positions and residential credit reports.Section 184 Training,Sponsored by HUDWHAT DOES THE TRIBE DO?Implements foreclosure,eviction,lien&leasing proceduresModel One-Stop Docs Conducts environmental reviewsCompletes land status formSection 184 Training,Sponsored by HUDWHAT DOES THE TRIBE PROVIDE?LandHomeownership counselingFinancial AssistanceInfrastructureSection 184 Training,Sponsored by HUDWHAT DOES BIA DO?Serves as a trustee for tribal trust landApproves lease/mortgageProvides/updates title status reportsRecords mortgage/leaseUnderwrites/reviews loan package(if allotted/restricted)Section 184 Training,Sponsored by HUDPROGRAM FEATURES AND REQUIREMENTSSection 184 Training,Sponsored by HUDWho can get a 184 Loan?ELIGIBLE BORROWERSIndian or Alaska Native individual enrolled in a Federally recognized tribe.Copy of enrollment card/enrollment letter required.TDHE/IHA(Indian Housing Authority)Tribe.Tribal federal designation available on Federal Register accessed on Dept.of Agriculture/BIA websiteSection 184 Training,Sponsored by HUDWho can get a 184 Loan?ELIGIBLE BORROWERS(Cont.)Citizenship/ImmigrationNot required for eligibilityLawful permanent resident aliens document evidence of permanent residency Non permanent resident aliens Principal residenceSSNEligible to work in the USSection 184 Training,Sponsored by HUDLOAN FEATURESTerm:30 years or lessFixed interest rate determined by lender1%guarantee feeMinimal down payment requirementNo Adjustable Rate MortgagesNo commercial structuresSection 184 Training,Sponsored by HUDHOMEOWNERSHIP OPPORTUNITIESPurchase existing houseRehabilitation of existing housePurchase and rehabilitationNew constructionManufacturedModular/stick builtRefinancingSection 184 Training,Sponsored by HUDPROPERTY REQUIREMENTSTrust land or land within an Indian areaMeet construction and safety codesSingle family(1-4 units)Examples include:house,duplex,tri-plex,four-plex,town home,manufactured/modular homeManufactured HousingAffixed to a permanent foundationManufactured after 6/15/76Section 184 Training,Sponsored by HUDLAND OWNERSHIPTribal trust landAllotted individual trust landFee simple land in a defined Indian operating areaSection 184 Training,Sponsored by HUDLAND OWNERSHIPProgram requirements and processing procedures vary depending upon how land is heldLand in an Indian Area=area in which a Tribe/TDHE is authorized to provide housingSection 184 Training,Sponsored by HUDLAND CHARACTERISTICSLand or interest in land held in trust by BIA for a TribeLand may not be encumbered or alienated(leasehold)Section 184 Training,Sponsored by HUDTribal Trust LandLAND CHARACTERISTICSLand or interest in land held in trust by the BIA for an individual IndianTribe has no interest in landSubject to restrictions against alienation or encumbranceSection 184 Training,Sponsored by HUDAllotted Individual Trust LandLAND CHARACTERISTICSEstate in land that is absolute or unrestrictedOwner can dispose of landSubsequent sale of home and/or foreclosure;land and home sold togetherLocated on reservation or within Tribes operating area for housingSection 184 Training,Sponsored by HUDFee Simple Land184 LENDING ONTRIBAL TRUST LANDLeasehold interest must be established between borrower and tribe Title Status Report from BIA preliminary with leasefinal with lease/mortgageParties to lease:BIA,Tribe,and BorrowerHUD approval/reviewSection 184 Training,Sponsored by HUD184 LENDING ON TRIBAL TRUST LAND(cont.)Section 184 Training,Sponsored by HUDNote:Leasing instrument normally approved when tribe submits documentation to participate in 184 program184 LENDING ON INDIVIDUAL ALLOTTED TRUST LANDGenerally no leaseBIA approval requiredBIA issues Title Status Report with recorded mortgage&approvalSection 184 Training,Sponsored by HUD184 LENDING ON INDIVIDUAL ALLOTTED TRUST LANDFractionated ownershipLease(due to fractionated ownership)Foreclosure can result in loss of landExcess landSection 184 Training,Sponsored by HUD184 LENDING ON FEE SIMPLE LANDLease not requiredTitle policy requiredProperty must be in a designated Indian Operating Area(Tribal certification on Land Status and Jurisdiction Form)Section 184 Training,Sponsored by HUD 184 LEASE REQUIREMENTSNot to exceed 50 year termProvision preventing termination without HUD approvalLanguage indicating lessee can mortgage the leasehold,and foreclosure is allowedLanguage preventing transfer or assignment of leasehold interest without HUD/Tribe approval Section 184 Training,Sponsored by HUDLOAN PROCESS FOR TRUST TRANSACTIONSSection 184 Training,Sponsored by HUDLOAN PROCESS For TRUST TRANSACTIONSLand status verified with tribe and/or BIA:Title Status Report needed to verify individual allotment ownershipLand Status and Jurisdiction FormSection 184 Training,Sponsored by HUDLOAN PROCESS For TRUST TRANSACTIONSUnderwriting the Title Status ReportDocumentation required from the Bureau of Indian AffairsTribal TrustCertified TSR(1 years or less)with/without recorded leaseExecuted lease Section 184 Training,Sponsored by HUDLOAN PROCESS For TRUST TRANSACTIONSUnderwriting the Title Status Report(Cont.)Individual Allotted Trust landCertified TSR(6 months or less)BIA approval to mortgageIndividual Allotted Trust Land with leaseTitle Status Report with recorded leaseNO BIA approval to mortgageSection 184 Training,Sponsored by HUD LOAN PROCESS For TRUST TRANSACTIONS(Cont.)Borrower works with Tribe/BIA to obtain 184 lease if tribal trust landLease is recorded with BIA and TSR issuedBorrower works with Tribe/BIA to get environmental review completed.REQUIRED ON ALL LOANSSection 184 Training,Sponsored by HUDLOAN PROCESS For TRUST TRANSACTIONS(Cont.)Lender submits simultaneously:Complete underwriting package to HUD(fee simple,tribal trust and individual allotment)Copy of proposed mortgage/DOT to BIA for approval(trust land)Complete underwriting package to BIA(individual allotted land)Section 184 Training,Sponsored by HUDLOAN PROCESS For TRUST TRANSACTIONS(Cont.)Lender receives commitment for BIA(individual allotment)Lender receives commitment from HUDBIA Issues Certificate of Mortgage Approval(trust land)BIA Title Plant completes certified Title Status Report for lender(trust land)Guarantee Package to HUD for Loan Guarantee CertificateSection 184 Training,Sponsored by HUDSECTION 184 LOAN PROCESSINGSection 184 Training,Sponsored by HUDLOAN ORIGINATIONBorrower contacts approved lenderLender determines if borrower meets program eligibilityNative American(ID/Enrollment Card)Tribe on 184 approved listIndian operating areaLender requests case number from HUD using forms and process as described.Section 184 Training,Sponsored by HUDLOAN ORIGINATION(Cont.)Lender obtains loan documents and construction/purchase documentsLender orders an appraisalCost approach can be utilized if comps not availableFHA approved AppraiserAppraisal good for 120 daysLender prepares loan package and submits for underwritingSection 184 Training,Sponsored by HUD REQUESTING A CASE NUMBERFiles will NOT be accepted for HUD underwriting until a case number has been assigned by OLG staff.Case number assignments represent internal funds management for HUD and reservation of funds for lenders.Section 184 Training,Sponsored by HUD REQUESTING A CASE NUMBER(Cont.)Must be requested prior to submission of underwriting packageElectronic(MS Word compatible)form is available and preferredSubmit electronically as a Word document(.doc or.docx formats)via email to HUD for fastest turnaroundSection 184 Training,Sponsored by HUDUnderwriting ComponentsCreditCapacityCollateralSection 184 Training,Sponsored by HUDThe underwriting review determines the borrowers ability and willingness to repay the mortgage debt.Underwriting ComponentsThe borrowers ability to repay the debt is assessed by considering:Income history and stability;Employment history and stabilityDebts The borrowers willingness to repay the mortgage debt is assessed by consideringCreditPay history Section 184 Training,Sponsored by HUDUnderwriting ComponentsThe maximum allowable mortgage amount is determined as the lower of these 3 factors:150%of FHA Loan limits(03/2008)for the County where the property is locatedLoan to Appraised Value Ratio:97.75%when$50,000 or greater98.75%when$49,999 or lessAcquisition cost(sales price+closing costs):97.75%when$50,000 or greater98.75%when$49,999 or lessSection 184 Training,Sponsored by HUDCLOSING COSTSCosts not included when calculating mortgage basis(paid in cash):Prepaids(hazard/taxes/interest)Discount pointsSection 184 Training,Sponsored by HUDNote:1%guarantee fee is not included in closing costs when calculating mortgage basis.It is added on at 100%after calculating the mortgage basis.PREQUALIFYING BORROWERSLender responsibility prior to submission to HUD 184Determine threshold eligibility:1.Enrollment in Federally recognized tribe.2.Credit worthiness.(see Chapter 5 of“Draft”Guide of 12/30/09 for detailed Underwriting standards).3.Acceptability/Cost of property.4.Evidence of stable employment,sufficient cash availability for transaction,etc.Section 184 Training,Sponsored by HUDURLAUniform Residential Loan Application(URLA,Fannie Mae 1003,Freddie Mac 65)This document must be completed in its entirety for all Section 184 loan requestsSection 184 Training,Sponsored by HUDINCOMEIncome-Types:Salary or WagesOvertime and BonusCommissionsSeasonal and Part TimeRetirement,Alimony,Child SupportRental Trust and Non-TaxableSelf EmploymentTribal DistributionSection 184 Training,Sponsored by HUDINCOME(Cont.)Income and Employment-Determination and DocumentationVerification of 2 full years of employmentSalaried or hourly:Written or verbal VOEAll W-2s for 2 yearsRecent paystubs covering a full one month periodSection 184 Training,Sponsored by HUDINCOME(Cont.)Income and Employment-Determination and DocumentationVerification of 2 full years of employmentSelf Employed:Signed/Dated personal tax returns(2yrs)Signed/Dated business tax returns(2yrs)Signed/Dated year to date Profit&LossSection 184 Training,Sponsored by HUDINCOME(Cont.)Rental Income-Determination and DocumentationRental Income documented on Tax ReturnSchedule E and current lease w/6 months remainingRental Income NOT documented on Tax ReturnComp factor with current lease w/6 months remainingFull payment(PITI)counted as debt for qualifyingSection 184 Training,Sponsored by HUDINCOME(Cont.)Tribal Distribution-Determination and Documentation1.Two year history(1099s)Current year distribution Documented 3 year continuationOR2.Letter from tribe verifying a prior two year distribution to tribal members Current year distribution Documented 3 years continuationSection 184 Training,Sponsored by HUDLIABILITIESRecurring ObligationsInclude with 6 months or more remaining (all debts)Subject to underwriter discretionProjected ObligationsScheduled to commence within 12 monthsSection 184 Training,Sponsored by HUDLIABILITIESContingent liabilitiesCo-signed obligationsOriginator made 12 consecutive paymentsDivorce Decree/legal separation with designated responsibility to ex-spouseCurrent at time of separation/divorceCopy of separation agreementMortgage Obligations(within the last 5 years without a release of liability);unless:Originator made 12 consecutive paymentsDivorce decree/legal separation with designated responsibility to ex-spouse Transfer by employer and covered by home sale guarantee planSection 184 Training,Sponsored by HUDWhat are we looking for?CREDIT HISTORYShow borrower(s)payment patternShow previous/existing debtShow court order judgments,collections and liens which may affect borrowers ability to obtain a loanSection 184 Training,Sponsored by HUDNote:Lack of Credit is not basis for denialCREDIT HISTORYSpecial NotesNon Purchasing SpouseNot to appear on the security instrument or otherwise take title to the property at loan settlement;unlessRequired by state law to perfect a valid and enforceable first lienCommunity Property StatesDebts of non purchasing spouse must be included in the borrowers qualifying ratiosCredit history not to be considered a reason for credit denialStates:AZ,CA,ID,LA,NV,NM,TX,WA,WISection 184 Training,Sponsored by HUDCREDIT REPORTThe credit report must:Be a RMCR or Tri-Merge Credit ReportCredit Scoring Be the original provided by the credit reporting agencyContain all credit available in the repositori