Montana Board of Housing Lender Training and MBS Program Implementation
"Discover the Montana Board of Housing's Mortgage-Backed Security Program, offering benefits for lenders and borrowers. Learn about the changes, process, and advantages of utilizing MBS for real estate lending in Montana." (239 characters)
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Montana Board of Housing Lender Training with Idaho Housing and Finance Association Implementing the MBS Program Effective Nov. 1, 2024
Welcome! Mortgage-Backed Security Program The Montana Board of Housing invites Montana real estate lenders currently participating in the Board s Single Family Bond Program to participate in the Board s investing in mortgage-backed securities.
Why the change now? Why MBS? What part of the process is changing? How does this benefit the lenders? Questions
Why Use the MBS Program? Helps even MORE first-time homebuyers Marketable to secondary market Proceeds used to maintain continuous lender programs Securitized by Master Servicer: Idaho Housing and Finance Association
Biggest Differences for MBS Loans All MBS loans reserved through MBOH in Lender Online Reserve toward the end of the process and near the closing date 60-day timer starts to get file purchased by IHFA Participating lender uploads a compliance file in Lender Online (MBOH) Purchase package file uploaded in Lender Connection (IHFA)
Biggest Differences for MBS Loans MBOH conducts a compliance review of the file Master Servicer reviews a purchase package sent by participating lender MBOH lets the Master Servicer know the loan passed compliance All MBS loans are then sold on the secondary market
Borrower Benefits More options Better interest rates Flexible loan parameters
Lender Benefits DAILY purchase of loans NO cancellation fee Purchased without original recorded documents, ONLY COPIES Original trailing documents to follow
Lender Benefits Master Servicer emails lender notifying that conditions are available on IHFA s LENDER CONNECTION MBOH compliance conditions available via LENDER ONLINE (Action>View) Prepurchase conditions available via IHFA s LENDER CONNECTION
Current Programs Regular Bond Bond Advantage DPA Plus 0% Deferred DPA Setaside Program Veterans Home Loan Program 80% Combined MCC Program
Programs NOT Included in MBS Habitat Loans Veterans Home Loan Program Mortgage Credit Certificates
Programs INCLUDED in MBS Regular Bond Bond Advantage DPA Plus 0% Deferred DPA Setasides Program 80% Combined
Servicing Options MBOH (MRB) vs. IHFA (MBS) Options MBOH IHFA X X X X X Regular Bond *Plus 0% DPA *Bond Advantage DPA Setaside Loans 80% Combined Habitat Loans Veterans Home Loans Mortgage Cr Certificate X X Held by MBOH *2nd lien Down Payment Assistance loans will be serviced by IHFA (Notes are endorsed to MBOH)
Mark Your Calendars Loans reserved before Nov. 1, 2024, will remain with MBOH. Loans reserved beginning Nov. 1, 2024, will go to Idaho Housing and Finance Association. Closing and upload date are not the deciding factors; reservation date is.
When Reserving a Loan, Remember: Log into Lender Online to reserve #1 mistake: Targeted vs. Non-targeted? Annual gross income in BORROWER tab Move decimal two spaces to the left for RATIOS Remember to click the SUBMIT button Late fees assessed and deducted from proceeds
Locking Loans Staff runs a report every morning of previous day s reservations Each reservation is locked in setting fixed interest rate Corrections are made to reservation, if applicable, by MBOH until the loan has been compliance approved Any changes needed to reservation after compliance approval must go to IHFA
Close Loan as Usual Endorsements on notes: Tax service fees: First mortgage notes: $85 Loans going to IHFA Pay to the order of Idaho Housing $73 Loans being retained by MBOH and Finance Association, without Other fees for loans going to IHFA: recourse $200 acquisition fee Second mortgage notes: If flood cert is not LERETA, $10 flood fee Pay to the order of Montana Board of Housing, without recourse
Compliance Package and Purchase Package Concurrent Lender uploads compliance package in Lender Online (MBOH) Lender uploads purchase package in Lender Connection (IHFA) Compliance package downloaded by MBOH staff MBOH staff reviews compliance package Condition for incorrect or missing documents, if applicable Clear conditions, if applicable and APPROVE loan Compliance approval is communicated to IHFA through nightly transmission
Compliance Package MBOH will review for compliance within 10 days of delivery of compliance package to Lender Online Only 18 items on checklist COPIES only Auto populates many fields Needs to be in stacking order of checklist
1. Borrower Stat Sheet Does borrower qualify for program? First time homebuyer? Check rental history, assets and declaration is no 2. Final Loan Application Documents for Compliance File 3. Income Verification Written VOE? Tax returns w/Schedule C? Child support? Benefits? 3a. Taxpayer Consent Form Signed by all borrower(s)? 3b. 4506-C Signed by all borrower(s)? 4. Buy/Sell Agreement Initials and signature? Correct property? Purchase Price? Personal Property? 5. Final CD For buyer and seller: Check fees (1.75%); Principal reduction? No cash back 6. DPA Note Signed by borrower(s)? Endorsed appropriately? Allonges allowed
7. DPA DOT and Assignment Present? Signed by borrower(s)? Notarized? Endorsed correctly? 8. Buyer s Affidavit Information is correct? Complete, signed and notarized? Documents for Compliance File 9. Credit Report All reports included? Statement for derogatory info? OFAC findings present? 10. Appraisal Multi lots? Reconciliation as-is or repairs need? Repairs documented? 11. AUS FHA UW and Trans Summary; VA Loan Analysis; Uniform UW Trans Summary 12. Recapture Tax Notice MBOH Disclosure; Signed at application 13. Recapture Tax Compute Name, address, county, lender info, closing date, loan amount? 14. Early Delinquency and Release of Info MBOH Disclosure signed by all borrower(s)
Purchase Process Staff will work to prepare loans for MBS transfer to Idaho Every night MBOH will interface with Idaho to transfer files Loans are purchased daily by IHFA and purchase advices are available on Lender Connection Loans sent to IHFA will require the lender to have interim servicing until the loan is purchased by IHFA
Revised Guides The MBOH Mortgage Purchase and Servicing Guide as well as the Terms and Conditions will be available on our website at commerce.mt.gov/Housing/
Montana Board of Housing Staff Our team of six has over 159 years of experience in banking, housing and title. We have a combined 71 years experience in housing, 64 years in banking and 24 years in title. Jessica Michel, Program Manager Charles Brown, Program Supervisor Julie Hope, Training and Development Jim Neary, Program Specialist Monique Higginbotham, Loan and Bonds Specialist Doug Jensen, Program Specialist Call 406-841-2840 and ask for a program specialist.
Participating Lender Training Contact: Julie Hope Montana Department of Commerce Montana Board of Housing Training and Development jhope@mt.gov 406-841-2851
