Mortgage Procedures and Regulations (MPAR)

Learning Intensive Session

Texas -- August 5, 2015

Today’s goals: Equip participants with working knowledge of federal regulations and best practices for each stage of the mortgage origination and servicing processes, as well as the new HFHI policies on house pricing and financing.

1. Preliminary Considerations 2. Initiating Partnership 3. Preparing for Sale 4. Pricing, Financing, & Loan Documentation 5. Servicing

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Agenda

The Mortgage Process: Preliminary Considerations

Preliminary Considerations

• The CFPB & new reality

•State vs Federal Laws

• Loan Originator (TILA/Safe Act)

•BSA/AML

•GLBA

•E-Sign

•UDAAP

•UDAAP

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Remember: MPAR University on My.Habitat!

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Sabrina Fitze, HFHI 9:00-10:00 (Q&A 10:00-10:15)

Strategic Plan & MPAR

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Foundational Objectives Fund the Mission

• Compliant performing mortgages can be leveraged/sold to provide unrestricted funds to serve other families. Build or expand relationships with financial partners.

Grow Skills & Leadership Capabilities • Using the MPAR resources to enhance

knowledge of lending regulations, allows for better oversight, process alignment, and organizational effectiveness. Evaluate staffing roles and requirements.

Operate with Excellence • When you know the laws and procedures

that must be complied with, your operations become effective and efficient. Implement and enforce consistent application of policies / procedures.

Impact Goals

Housing Crisis led to increased regulations

The Consumer Financial Protection Bureau (CFPB) was created by the passing of the Dodd-Frank Act • Consolidated jurisdiction over federal consumer protections

• Implements regulations and new rules to existing laws and regulations

• Supervises Habitat Affiliates

• Habitat Affiliates must comply with RESPA

• Host a Complaint Portal for consumers to make complaints

Penalties for non-compliance may be levied

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Changes Impacting Origination Practices

CFPB Complaint Portal cont’d

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I'm a huge fan of the Consumer Financial Protection Bureau. I've filed several complaints and while not all resolved in a manner to my liking, there was resolution and a documented trail from which others can benefit in the future. I've made numerous attempts to resolve issues with large banks/credit card companies in the past but nothing gets their attention like a filed complaint with the CFPB.

This is a huge win for the little guy! – Consumer from Texas Consumer letter published in the CFPB’s most recent Consumer Response Annual Report

Ways to Minimize CFPB Complaints • Establish a complaint management

process • Take the complaint/concern

seriously – probe to understand the root cause

• Personnel involved in lending both repairs and mortgage must be adequately trained

• Ensure only personnel with the correct authority address issues

• Resolve the issue • Follow-up with homeowner /

applicant to ensure that they are satisfied

Deep Breath: Addressing our New Reality

• Trainings and resources for affiliates, developed in partnership with industry organizations and pro bono law firms.

• Modifications to rules as originally proposed.

• Pending legislative fixes.

• Educating and increasing awareness among elected officials.

We CAN deal with

our new reality!

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Common Family Selection Concerns

• Keeping applications open for too long

• Pre-application vs. Application

• No Loan Originator or who is a Loan Originator

• Too many people involved in family selection

• Too much information to the board members

• How can volunteers fit into this process

• Etc…

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• SAFE Act – both LO and Servicing requirements

• Origination • Advertising • Disclosures • Language in note or mortgage • Real Estate contracts • Residency status • Community property – property ownership • Broker definition

• Servicing • Pre-foreclosure / Foreclosure filing • Escrow Account Administration – cushion, interest, type of account • Payment treatment including partial and late payments • Delinquency management • Late Fees amount

Federal Laws vs. State Laws

Where to turn for State Law guidance • Compliance companies • Real Estate Board • State Mortgage Bankers Association • Law Firms • State Bar Association • Foreclosure workout specialists • State regulator website

Other suggestions that you may use?

Federal Laws vs. State Laws

Preliminary Considerations Secure and Fair Enforcement for Mortgage Licensing

(SAFE Act) Purpose: Protect consumers by setting minimum standards for licensing and registering mortgage loan originators. As well as, provide consumers with access to MLO’s history including if their license has been revoked or application denied within the past 5 years. Actions: Determine if state has an exemption for bona fide nonprofits and requirements for both

individuals and company (affiliate)

Unless exempted by state, each MLO must be licensed and registered with the Nationwide Mortgage Licensing & Registry System

TX SAFE Act of 2009 a nonprofit organization providing self-help housing that originates zero interest residential

mortgage loans for borrowers who have provided part of the labor to construct the dwelling securing the loan

11 Homeowner Selection AOM - Getting Started – details of SAFE Act and TILA Loan Originator Qualification rules (pg. 8)

Preliminary Considerations Truth in Lending Act (TILA) – Loan Originator

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Does not affect SAFE Act Exemption for Loan Originator Organizations Loan Originator = Individuals who are compensated to perform activities such as:

• Taking an application for purchase money mortgage or repair loan secured by real property

• Arranging a credit transaction • Assisting a consumer in applying for credit • Offering or negotiating credit terms • Making an extension of credit • Referring a consumer to a loan originator or

creditor • Advertising or communicating to the public that you can or will perform any loan origination services Habitat Policy = “key volunteers” too!

Not Loan Originator: • Solely clerical or

administrative tasks. • Front desk just accepts

application without discussion.

• Board member only reviews docs.

• Solely number crunching.

Preliminary Considerations Loan Originator Qualifications

Affiliate must:

1. Obtain: • Criminal background check • Credit report and • Information from the individual originator related to any civil, criminal

or administrative decision

2. Make determination that individual meets financial responsibility, character and general fitness standards:

• How you will evaluate this information? • Affiliate must have Board-approved policy and procedures.

• At minimum, confirm no conviction of (or plead to): • Any felony during last 7 years, or • Any felony involving fraud, dishonesty, breach of trust, or money

laundering at any time • Also, indications that individual will operate honestly, fairly and

efficiently 3. Ensure they have initial and ongoing training.

• at least once every 12 months • 11 ABA trainings will meet the federal training requirement 13

Requirement Action

Office of Foreign Assets Control (OFAC) All U.S. persons must comply with OFAC regulations, including all U.S. citizens and permanent resident aliens regardless of where they are located, all persons and entities within the United States.

Application – applicants should be compared with the OFAC Specially Designated Nationals (SDN) list (HO Selection AOM pg 13 – OFAC) Ongoing – at a set frequency, the entire portfolio should be compared to the OFAC SDN list

IRS/FinCEN form 8300 When affiliate receives more than $10,000 cash or an aggregate totaling more than $10K with cash or certified funds (drafts/cashier’s checks etc.) towards a related transaction

• Must file from 8300 to report to the IRS • Notice to person(s) named on report by Jan 31 of year following

transaction BSA Form 8300 efiling

AML Program Conduct AML Risk Assessment according to template

1) Internal Controls – AML Policy & Procedures Template 2) Compliance Officer 3) Ongoing Training *ABA course 4) Independent Audit

Suspicious Activity Report (SAR) • Must be filed within 30 days of detection • Must not disclose filing to Partner Family • $5,000 or more (includes aggregate transaction), and transaction

uncharacteristic of Partner Family • Records must be kept for 5 year after the date of report

Preliminary Considerations Federal Anti-Money Laundering (AML)

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Preliminary Considerations Electronic Signatures in Global and National Commerce Act

(E-SIGN) Act

Requirements

Provide a clear and conspicuous disclosure • Any right or option to have the record provided or made available in paper form; • The right to withdraw the consent to have the record provided or made available in an electronic form and of any conditions,

consequences (which may include termination of the parties’ relationship), or fees in the event of such withdrawal; • Identify whether the consent applies only to the particular transaction or for the course of the relationship; • Describe how the consumer can withdraw consent; • Provide hardware and software requirements for access to and retention of e-records; • If the consumer consents electronically it must be in a manner that reasonably demonstrates that they can access information in

the electronic form that will be used.

Record Retention • Stored electronic record must accurately reflect the information in the original record. The electronic record must be accessible

and capable of being reproduced by all persons entitled by law or regulations to review the original record.

Exceptions - not permitted • Electronic notification for notices of default, acceleration, repossession, foreclosure, eviction, or the right to cure, under a credit

agreement secured by a person's primary residence. • Signatures on promissory notes and mortgages (must have original promissory note – cannot have copy for enforcement)

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• Governs electronics signatures, contracts or other records • Must follow E-SIGN's specific procedures to provide consumer disclosures electronically • Must have consumer consent before communicating in this manner • Disclosures permitted – ECOA, TILA, RESPA, FCRA

Preliminary Considerations Gramm-Leach-Bliley Act (GLBA)

Gramm-Leach-Bliley Act (GLBA): governs the sharing of consumer and customer non-public personal information.

Must provide Privacy Notices disclosing the affiliate’s privacy policies and practices, what information is collected, with whom it is shared, how affiliate safeguards it, and the opportunity to “opt-out” if affiliate shares information with a non-affiliated third-party.

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Template Privacy Notice can be found in GLBA Legal Advisory on My.Habitat.

Disclosure

Customer has an continuing relationship

(partner family)

Consumer Has no ongoing relationship

Initial Notice Must be in writing

Delivered when a consumer

establishes a customer

relationship •Generally, recommended to be provided with

RESPA early disclosures.

•Provide with initial application when using

third party lender or grant/subsidy provider.

Before you disclose any

nonpublic personal information

about the consumer to any

nonaffiliated third party •Very rare in Habitat setting.

Annual Notice Must be in writing

To be delivered at least once every

12 months as long as the customer

still has a relationship, even if you

have a 3rd party servicer.

(Relationship ends only when loan is

sold without recourse.)

Not required

Unfair, deceptive, or abusive acts and practices (UDAAPs) can cause significant financial injury to consumers, erode consumer confidence, and undermine the financial marketplace.

• CFPB has rule-making and supervision authority

• Focus on offering of financial products and services to consumers

Preliminary Considerations Unfair, Deceptive, or Abusive Acts or Practices

(UDAAP)

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Unfair Acts or Practices Deceptive Acts or Practices

It causes or is likely to cause substantial injury to consumers

The representation, omission, act, or practice misleads or is likely to mislead the consumer

The injury is not reasonably avoidable by consumers

The consumer’s interpretation of the representation, omission, act, or practice is reasonable under the circumstances

The injury is not outweighed by countervailing benefits to consumers or to competition

The misleading representation, omission, act, or practice is material

Preliminary Considerations UDAAP cont’d

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Abusive Acts or Practices

Materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service

Takes unreasonable advantage of: • A lack of understanding on the part of the consumer of the material risks, costs, or conditions

of the product or service; • The inability of the consumer to protect its interests in selecting or using a consumer financial

product or service; or • The reasonable reliance by the consumer on a covered person to act in the interests of the

consumer.

Every state also have laws for UDAP that protect consumers • Be informed of your state’s requirements • Ensure to incorporate in policy, procedures and practices

Questions

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The Mortgage Process: Initiating Partnership

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Initiating Partnership

• Laws and regulations

•Marketing and outreach

•Developing compliant policies

and procedures

•Assessment and Disclosure

•Partnership Agreement

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Michelle Borckardt, Waco HFHI 10:15-11:00 (Q&A 10:00-11:15)

Laws and Regulations

Law / Regulation Brief Description

Equal Credit Opportunity Act

(ECOA) and Fair Housing Act

(FHA)

Prohibits discrimination based on race, gender,

color, religion, national origin, age, familial status,

or disability.

Truth in Lending Act (TILA) and

Unfair and Deceptive Acts and

Practices (UDAAP)

Requires accurate, clear advertising and disclosure

of loan terms

Real Estate Settlement

Procedures Act (RESPA)

Requires specific disclosures related to the home

purchase process and establishes timelines for

delivering these disclosures.

Laws and Regulations

Law / Regulation Brief Description

Fair Credit Reporting Act (FCRA) Use credit reports only for permissible purposes

(i.e. credit extension). Maintain confidentiality.

Outlines required disclosures.

SAFE Act

(Already discussed)

Establishes licensing requirements for mortgage

loan originators

TILA Ability-to-Repay (ATR) and

Qualified Mortgage (QM)

Requires a good faith determination of the

borrower’s ability to repay the loan

Homeowner Selection

Process Assess community need

Develop board approved policies

Program marketing

Application Intake

Assessment

Committee Review

Board Concurrence

Partnership Agreement

Marketing and Outreach

Planning for Outreach

◦ Assess community needs

◦ Establish Board approved policies and

procedures

◦ Focus your outreach methods

Who is your audience?

What message do they need to hear?

How can you deliver that message?

Marketing Materials

Use inclusive words, phrases, and graphics (ECOA) ◦ For example, ask yourself: Do the people in our

photos look like the people in our community?

Do not discriminate ◦ Prohibited bases: race, gender, color, religion,

national origin, familial/marital status, presence of a disability

Provide accurate description of loan terms (i.e. don’t say it’s a no-interest loan if they are charged interest through a USDA loan)

Equal Housing Logo

Must be displayed on all marketing materials as well as on the application

The Equal Housing Lender poster must be displayed in any room where an application could be taken

Application Intake

Applications must be made available in

multiple venues – not just at an

orientation meeting

Application should include the Right to

Receive Copy of Appraisal Disclosure

Notice – or provide within 3 days of an

application being submitted

Assessment

Apply all board policies and procedures equally and in a non-discriminatory fashion

Have a written policy regarding background checks

◦ Which checks to do?

Sex offender registries

Criminal background checks

OFAC checks

◦ What to do if there is a hit

Program Criteria

Need

Ability to pay

Willingness to partner

Need

Factors that contribute to need: ◦ Safety concerns

◦ Family size vs. home size

◦ Repair and other structural issues

◦ Current housing is too expensive (greater than 30% of family income)

Total household income is no greater than 60% of the Area Median Income (AMI)

Special Purpose Credit Program – we can require that they disclose child support income to evaluate need. ◦ For use in evaluating income, need to disclose first.

◦ See page 21 of HO Selection AOM.

Ability to Pay

Estimated mortgage payment should not

exceed 30% of borrower gross monthly

income (“housing cost ratio”)

Debt to Income Ratio is 43.0% or less

Immigration status and background

checks

Ability to Pay

Things to consider in establishing other underwriting criteria:

◦ How much delinquent debt is ok?

◦ If employed, for how long should they have been in current job?

◦ What if they have housing related debts (rent, utilities) in collections?

◦ What red flags on VOR (Verification of Rental History) would trigger disqualification?

◦ Number of overdrafts on bank statements

Willingness to Partner

Sweat equity hours

Escrow deposits / down payment

Homebuyer education

Any other program requirements (i.e.

paying off certain debts)

Required Notices

ECOA (phase 1) and RESPA (phase 2)

require that certain notices be delivered

to applicant within a given timeline

Templates for these notices can be found

on my.habitat.org in the MPAR section,

but each affiliate should also consult with

an attorney to make sure notices comply

with state laws

Required Notices

ECOA Application RESPA Application

Trigger Receipt of any borrower

information to evaluate (i.e.

residency, income)

Receipt of all of the following information:

• Borrower’s name

• Borrower’s monthly income

• Borrower’s social security number

• Property address

• Estimate of value of property

• Loan Amount (consider: new TRID definition)

Notices /

Disclosures

30 days to deliver a notice of

action taken (denial letter,

approval letter, or notice of

incompleteness)

3 days to deliver all of the following:

• Loan Estimate

• Home Loan Tool Kit

• List of Homeownership Counseling

Agencies

• Privacy Notice

• Home Appraisal (if available) For more information, please refer to the “Preparing for

Sale” portion of this workshop.

Other

Information

Application is considered

complete once you have all

necessary information to make

a credit decision

Additional notices are required as loan

moves to consummation. For more

information, please refer to the “Preparing

for Sale” portion of this workshop.

Phase 1: “Partnership

Assessment”

“Phase 2: Loan

Application”

Required Notices

Inquiry Application

• Explain program requirements

and discuss policies

• Do not express an opinion

about whether the person

qualifies or not (that turns it

into an application)

• A good phrase if they ask direct

questions: “There are many

factors that can contribute to

being approved or denied. We

invite you to submit an

application.”

• Starts with the first receipt of

applicant information to be

evaluated

• Application is complete once

you have all the details you

need to make a credit decision

• Notice of Action Taken must be

provided within 30 days of

receiving the first piece of

applicant information

Required Notices Within 30 days after receipt of first piece of information to evaluate (orally

or written), send one of the following:

Type of Notice Details

Notice of

Incompleteness (NOI)

(may also be an

Informational Notice of

Incompleteness – see next

slide)

When: you need additional information from the applicant to

determine eligibility

Include on letter:

• List of specific information/documentation you need

• A reasonable deadline

• Notice that failure to submit documents by deadline results in

denial without further action

Adverse Action Notice When: Applicant is ineligible for the program (denial letter)

Details:

• All letters must be ECOA compliant

• If denial was based in whole or in part on credit or criminal

background check, letter must be FCRA compliant

Notice of Acceptance

(unlikely at this point)

When: Applicant has been approved for the program.

Details: Applicant is “accepted into a partnership program” but only

“pre-qualified for a mortgage loan.” This pre-qualification is subject

to the applicant continuing to meet program requirements

(especially ability to repay) prior to house closing.

Required Notices Within 30 days after a completed application, send one of these:

Type of Notice Details

Informational Notice of

Incompleteness

When: you have received everything you need from the applicant but

the affiliate still needs to complete additional steps before it could

approve the application (i.e. home visits, board concurrence)

Include on letter:

• List of steps you still need to take

• The expected timeline for completing these steps

Adverse Action Notice When: Applicant is ineligible for the program (denial letter)

Details:

• All letters must be ECOA compliant

• If denial was based in whole or in part on credit or criminal

background check, letter must be FCRA compliant

Notice of Acceptance When: Applicant has been approved for the program.

Details: Applicant is “accepted into a partnership program” but only

“pre-approved for a mortgage loan.” This pre-approval is subject to

the applicant continuing to meet program requirements (especially

ability to repay) prior to house closing.

Required Notices

At any point in the process, if you know the applicant does not qualify, you must send an Adverse Action Notice within 30 days. ◦ Even if already approved…

If the applicant withdraws, the affiliate should request written confirmation of this withdrawal and maintain a copy of that confirmation in the file.

Denied applications (and corresponding materials) should be kept for a minimum of 25 months.

Partnership Agreement

If applicant qualifies and board approval is

obtained, promptly send Notice of

Acceptance

Execute the Partnership Agreement, which

explains everything the prospective

homeowner must do in order to close on

the home

◦ Sweat equity, escrow/down payment, classes, etc.

◦ Debts that need to be paid off

◦ Any other requirements

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The Mortgage Process: Preparing for Sale

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•Underwriting

•Initial Disclosures

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Sabrina Fitze, HFHI 11:30-12:00 (Q&A 12:00-12:15)

Preparing for Sale Property Due Diligence

• Order Title Exam • Get to know your property – review all title encumbrances or

use restrictions that could interfere with partner family’s use. • You need marketable title to convey marketable title (Policy 22 ).

• Best Practice: Order Title Insurance (owner’s vs. lender’s policy) • provides coverage for future claims or future losses due to

hazards and defects already existing in the title at time of purchase.

• Verify Schedule A details

• Title insurance covers: Mistakes in title examination, Property or title claims of third parties, Gap between closing and time of recording the documents, Helps protect Affiliate and Homeowner

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Preparing for Sale Property Due Diligence cont’d

Property Valuation • Obtain Appraisal/Other Written Valuation* (ECOA /TILA)

• *New policy 22 requires appraisal (July 1, 2015 with grace period) • No conflicts of interest: Do not use staff or board member. • Appraiser independence: no attempt to cause the value assigned to

the property to be based on any factor other than the independent judgment of the person that prepares valuations

• Donated appraisals are allowed (per CFPB verbal approval;consider other regulators)

• May collect actual cost of appraisal (check state law), but no charge for copy

• Disclose (ECOA) • Right to Receive Copy of Appraisal Disclosure Notice

• 3 days after application (Partnership assessment phase) • Copy of property valuation(s) associated with transaction

• “Promptly” upon completion but not later than 3 days before loan closing

• Determine Sales Price • Sales Price = FMV* (per new policy 22, July 1, 2015 with grace period)

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Requirement Disclosure

In Special Flood Hazard Area that participates in the NFIP

• Provide Notice of Special Flood Hazard Area • Two notices, delivered within “reasonable time” • Advise that flood insurance must be purchased from NFIP • Borrower must acknowledge notice and return to lender • Lender must obtain proof of flood insurance prior to closing • Notice to servicer (where applicable)

In Special Flood Hazard Area that DOES NOT participate in the NFIP

• Provide notice as above • Advise that the area although in a federally identified flood zone,

NFIP is not available • Borrower must acknowledge notice and return to lender • Strongly recommend that borrower purchase private flood

insurance – Apply policy consistently!

• Flood Disaster Protection Act (FDPA) – Best Practice • Required when using Federal Funds, loan is insured by or

sold to a GSE or a Federal Agency 1. Lender originates or renews any loan(s) secured by improved property; 2. Property is located in a “special flood hazard area” as identified by FEMA; & 3. The community participates in the National Flood Insurance Program (NFIP).

Preparing for Sale Flood Disaster Protection Act (FDPA)

Preparing for Sale Final Underwriting

• Prior to closing, update creditworthiness determination: • Re-verify all ability to pay factors based on Affiliate’s policy

• Re-verify other factors as required by Affiliate’s policy

• Extend timelines if appropriate

• Apply Affiliate policies consistently

• Determine financing: • First mortgage calculation (you will have updated

borrower income at this point)

• Affordability Index (not more than 30% of gross applicant(s) income)

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Preparing for Sale Final Underwriting cont’d

REMINDER

• De-selection/Denial: If you deselect/deny a partner family at any time during this process: • Send Adverse Action Notice.

• Must be ECOA and FCRA compliant!

• Within 30 days of making decision to deselect/deny

• Withdrawal: If a partner family withdraws at any time during this process: • Ensure loan file is properly documented.

• Send confirmation of withdrawal to partner family.

• Notify all parties within affiliate.

• Partner family will need to start process from beginning if they want to be reconsidered for Habitat program.

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Preparing for Sale Initial Disclosures

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What? Initial Disclosures When? Within 3 business days of “completed RESPA application” and at least 7 days prior to closing (includes Saturdays) *Completed RESPA Loan Application = 1. Borrower’s name; 2. Borrower’s monthly income; 3. Borrower’s SSN; 4. Property Address; 5. Estimate of value of property; 6. Loan amount; and 7. Other information needed by lender** Why? The law says so! (RESPA; TILA; ECOA; FDPA; GLBA) ** Effective Oct. 3, 2015, only factors 1-6.

Disclosure Changes: TILA/RESPA Integrated Disclosures (TRID)

• Effective October 3, 2015

• Required by Dodd-Frank Act

• Loan Estimate: disclosures for key features, costs, and risks of the mortgage loan (replaces GFE & Initial TIL) • timing of delivery remains the same – 3 days after RESPA

application

• Closing Disclosure: disclosures of all of the costs of the transaction (replaces HUD-1 and Final TIL) • Must be provided 3 business days before consummation

HFHI TRID Recorded Call and TRID Resources

49 See CFPB’s Small Entity Compliance Guide

*PLEASE REVIEW*

Preparing for Sale Initial Disclosures cont’d

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Regulation Required Initial Disclosure

Real Estate Settlement Procedures Act (RESPA) (All Affiliates must comply with RESPA)

• Good Faith Estimate (GFE) • CFPB Settlement Cost Booklet [formerly HUD

Special Information Booklet] • Mortgage Servicing Disclosure Statement • Affiliated Business Arrangement Disclosure • List of Homeownership Counseling Organizations

Truth in Lending Act (TILA) • Initial Truth in Lending Disclosure Statement

Equal Credit Opportunity Act (ECOA)

• Actual Appraisal/Property Valuation • “promptly” upon completion

GLBA *Privacy Notice

State Specific Disclosures Know your state laws

Templates for all Initial Disclosures can be found on MPAR U, Initial Disclosures Collection

Pre Oct 3, 2015 or if NOT subject to TRID (All Affiliates must comply with RESPA)

Preparing for Sale Initial Disclosures cont’d

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Regulation Required Initial Disclosure

Real Estate Settlement Procedures Act (RESPA)

• Loan Estimate (LE) • Your Home Loan Toolkit • Affiliated Business Arrangement Disclosure • List of Homeownership Counseling Organizations

Truth in Lending Act (TILA) • LE

Equal Credit Opportunity Act (ECOA)

• Actual Appraisal/Property Valuation • “promptly” upon completion

GLBA *Privacy Notice

State Specific Disclosures Know your state laws

Templates for all Initial Disclosures can be found on MPAR U, Initial Disclosures Collection

Effective Oct 3rd, 2015 if subject to TRID All Affiliates must comply with RESPA

Preparing for Sale Closing

• Prepare documentation • Form of Deed; Promissory Note; Form of Security

(Mortgage or Deed of Trust) – SEE HANDOUT

• Updates to Initial Disclosures • Limited revisions allowed after initial GFE and TIL

disclosure statement.

• Get it right the first time.

• Timing: Could delay loan closing.

• Obtain Proof of Insurance (incl. flood, where applicable and if not yet obtained)

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Preparing for Sale Closing Disclosures

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• Closing Disclosures 1. HUD-1 settlement statement (RESPA)

• Make available at least one day prior to closing • HFHI strongly recommends reviewing with homebuyer prior to closing. • As of October 3rd: Closing Disclosure (“CD”)

– Replaces HUD-1 and Final TIL. – Make available at least 3 business days prior to closing.

2. Initial escrow statement (RESPA) • At closing or no later than 45 days post closing

3. Right of Rescission (TILA) • Only for repair products when lien is placed on house • 2 copies, to each owner • Borrower (or other title holder)has until midnight of third business day

to rescind loan.

Questions

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The Mortgage Process House Pricing and Financing

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Mortgage Fundamentals

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•House Financing

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Remember: MPAR University on My.Habitat!

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Waletta Taylor, Habitat for Humanity of Smith County 12:45 – 1:15 (Q&A 1:15-1:30)

House Pricing and Financing

Key Principles inform Pricing and Financing of Housing Unit (Policies 22 and 23)

Pricing:

• FMV: The Sales Price of a housing unit is its Fair Market Value, except when applicable laws or funding program requirements require a different methodology.

Financing:

• No “Upside Down” House (no negative equity): The sum of all mortgages originated in connection with the sale of a housing unit may not exceed the unit’s Fair Market Value except to the when customary and reasonable closing costs that are financed.

• Affordability Index: The purchaser’s monthly payments may not exceed 30% of household’s gross income at the time of purchase.

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House Pricing

What is the “sales price”? Sales Price = FMV

• Sales price determined by objective measure (appraisal) to establish credibility to the transaction

• Protects market values in the community – Habitat homes are used as comparables for other sales

• Ensures Habitat homebuyers are treated equitably • Allows for soft second mortgages to protect equity • Contributes to transparency of the transaction

• Shows how much is homebuyer paying in relation to the value of the home as an asset, and how much the home is subsidized by Habitat or third parties

• Allows for clear application of down payment paid by or on behalf of homebuyer

• Clearly shows any closing costs financed through the first mortgage

57

What is the “sales price”? (cont’) • Total Consideration paid by or on behalf of the Homebuyer • This is not necessarily the amount the homeowner will pay,

if not affordable to the homebuyer, or due to other qualifying subsidies. Use financing structure to address affordability.

• Listed on Line 101 of HUD-1 or, after October 3, 2015, on Line 01 of Section K (Summaries of Transactions) of the Closing Disclosure

• Sales Price = • Down payment paid by homebuyer + • Down payment paid on behalf of homebuyer (i.e., DPA) + • 1st mortgage + • Subordinate (soft second) mortgage(s).

58

Old Policy 23: Sales price cannot exceed FMV. Strong recommendation to set sales price at FMV. New Policy 22: Sales Price = FMV

House Pricing

House Pricing

Determine the Sales Price •Determine FMV • Obtain independent appraisal.

• No appraiser conflicts of interest. Do not use staff or board members.

• Donated appraisals are allowed (per verbal authorization from CFPB and currently seeking statutory exemption; consider other regulators).

• Remember, Sales Price = FMV. (Policy 22)

59

For fiscal 2016 affiliates are permitted to phase into the new sales price requirements.

House Financing: Affordable First Mortgage

Determine Affordability of monthly payment:

• Cannot exceed 30% of borrower’s gross income at time of closing. • Consider a cushion (e.g., 28% cap)

• Borrower income might not be the same as household income (needed for ability to pay determination).

• Make sure legally obligated homeowner satisfies your affiliate’s ability to pay requirements.

• Must include: principal, real property taxes, hazard insurance, flood insurance. • where applicable, mortgage insurance and loan servicing fees.

• Encouraged to include other recurring expenses: • i.e., utilities, HOA fees, annual pest inspection fees

• Consider including other “affordability” criteria.

60

Income Guidelines Need

• Household

• Threshold eligibility for program: “all reasonable efforts to serve < 60% of AMI”

• Ask: does this household need the program to provide a safe, decent, affordable home?

• AMI shows how does this household’s need compare to the need of others in the community

• Current housing cost-burden may be factor

Ability to Pay

• Borrower

• Underwriting decision based on income, debts and credit history of the borrower

• Ask: Can this borrower repay this loan?

• AMI not relevant

• New loan should not result in housing cost-burden

Remember…

61

House Financing: Affordable First Mortgage

Summary (New policies 22 and 23): • Sales price = FMV

• Independent appraisal

• Unless funding program requires different methodology (e.g., SHOP)

• The first mortgage amount = the lesser of FMV or affordability index. • Affordability must include a written Affiliate policy with front-end and back-

end ratio requirements (see new Policy 23) • Affiliate originated 1st mortgages cannot be interest bearing; may have

default interest. • Term should not be more than 30 years; for affordability can be up to 40

years.

• A second mortgage must be used to protect equity up to the FMV of the home at closing.

62

House Pricing and Financing

• Policy 23 requires that affiliates secure the difference between FMV and the 1st mortgage with one or more forgivable or deferred subordinate mortgages.

• Subordinate mortgages may be in favor of Habitat or third party funder.

• Includes down payment assistance programs between homebuyer and housing agency.

• Must ensure homebuyers understand how payment may be triggered – consider additional disclosure.

63

House Financing: Equity Protection/Subordinate Mortgages

House Financing

“Soft” or “Silent” Subordinate Mortgages

• When equity exists at time of closing: FMV > 1st mortgage at time of sale, Affiliates are expected to place a subordinate lien mortgage on property.

• Silent second fills gap between FMV and first mortgage.

• Historically, soft seconds required no monthly payments and were forgiven over a period of time unless the homeowner defaults, refinances or sells home.

64

House Financing: Equity Protection/Subordinate Mortgages

To Forgive or Not to Forgive…

• Historically, silent seconds • required no monthly payments, and • were forgiven over a period of time or upon maturity and payoff of

1st mortgage, unless the homeowner defaulted, refinanced or sold the home before the 1st mortgage was repaid in full.

• Habitat Policy now allows Affiliates to elect whether to forgive all or a portion of the principal secured by a subordinate mortgage; thoroughly consider how any such payments will be affordable to the homeowner.

• Habitat Affiliates must adopt a policy regarding forgiveness.

• Any repayment language must be included in the loan documents.

• Also new in Policy 23: • stated maturity date is required; maximum 40 years • mortgage must provide for end of term options • must have mechanism to track and report balances

65

House Financing House Financing: Equity Protection/Subordinate Mortgages

Total Development Costs

Should you still calculate “total development cost” of house? YES

• Total development cost is still important for affiliates’ budgeting and subsidy analysis (even if it does not factor into the sales price of the house or the amount of the homebuyer’s first mortgage).

• Per OLD Policy 23, Affiliates may include the following in calculating the “total development cost” of a house:

Land (cost or donated value, including acquisition costs)

+ Infrastructure

+ Direct construction costs

+ Value of in-kind material donations (construction materials, appliances, etc.)

+ Value of donated professional labor

+ Allocated costs of construction staff

+ Soft costs (permits, professional fees, etc.)

+ Admin expenses (up to 10% of all of the above)

= TOTAL DEVELOPMENT COSTS (TDC)

66 Note: value of unskilled volunteer labor and sweat equity is never included

House Pricing and Financing Using Subordinate Mortgages

(One option)

$120K FMV

$ 100K Total Development Cost

$ 90K Affordability Index

Sales Price = $120,000

First Mortgage = $90,000

Protecting Equity = $30,000 in second mortgages

• “Soft” Second (Forgivable) = $20,000 (FMV - TDC) • payable on sale or refinance of first; may be gradually forgiven over time; must be forgiven

if first mortgage paid in full over its term.

• “Soft” Third (Repayable) = $10,000 (TDC – first mortgage) • payable on sale or refi of first; may be recaptured after first mortgage is paid in full.

67

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$1

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; P

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Purchaser can afford monthly payments on

a $90K 0% 30 year mortgage (30% max

front end ratio)

Questions

7/30/2015 68

Preliminary

Considerations

Initiating

Partnership

Preparing for

Sale

Mortgage

Fundamentals

Servicing

Remember: MPAR University on My.Habitat!

Lessons Learned in the Origination Process

69

Michelle Kennedy, Trinity Habitat for Humanity 1:30-2:30

US Policy Handbook

USPolicyHandbook.pdf *New as of July 1, 2015

Policies to focus on for Mortgage Lending Policy 11 – Homeowner Partner Selection Policy 19 – Sexual Offender Registration Check Policy 22 – Sale of the Housing Unit* Policy 23 – Mortgage Origination* Policy 24 – Mortgage Servicing* Policy 25 – Family Support Policy 26 – Equal Treatment of Habitat Homebuyers Policy 29 – Authorized Financing Options PAFO - Resources includes Former and New Policies 22, 23, & 24

70

Homeowner Selection AOM Chapter 1 – Introduction Prescreening Recommended Application Phases Chapter 2 – Prepare for homeowner selection Community needs assessment Affiliate as a lender (developing a policy)

• Loan originator • Antidiscrimination laws • Sex offender /criminal / OFAC checks • HFHI application • Homeowner selection criteria • Underwriting guidelines

Chapter 3 – Reach out to families Business Plan Advertising (legal considerations) Equal Housing Orientation Chapter 4 – Perform the application work Information Sharing (GLBA) ECOA phase – notice of action taken; notice of incompleteness Qualification and verification checks Chapter 5 - Selection the family Final review and recommendation to Board Waiting List Chapter 6 – Communicate the decision Notice of action taken: denial; partnership agreement De-selection Chapter 7 – Pre-closing, including final underwriting

Homeowner-Selection-Affiliate-AOM-April-15-2015

71

Glossary

• Affordability

• Underwriting

• Loan Originator

• De-selection

• Partnership Agreement

• Debt-to-Income (DTI) ratio

• Appraisal

• FMV/Sales Price

• Down payment

• Closing costs

• Adverse Action Notice

• Notice of Incompleteness

MPAR - Glossary of Commonly Used Mortgage Terms

72

Preliminary

Considerations

Mortgage

Fundamentals

Initiating

Partnership

Preparing

for Sale Servicing

• Full Servicing

• Small Servicer Exemption

• Controlling Delinquencies

• Escrow management

• Foreclosures /

Bankruptcies

Remember: MPAR University on My.Habitat!

Servicing

73

Trish Sanders, Houston Habitat for Humanity 2:45 – 3:45 (Q&A 3:45-4:00)

Learning Objectives

Mortgage Servicing

• What is mortgage servicing?

• Changes impacting existing practices

• Federal Laws

• Delinquency

• Escrow Accounts

• Foreclosure Tips

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Mortgage Servicing

At a minimum, Full Servicing includes, but not limited to: Receive, process, record and update account status of

mortgage payments Establishment of, allocation to, and disbursement from

federally insured escrow accounts Customer resolution management Life of loan monitoring and management of tax and

Insurance (including flood insurance, when applicable) Annual escrow analysis Delinquency management, including collections management Recommendations for resolution of delinquency problems Loss Mitigation, including forbearance agreements, deed-in-

lieu, loan modifications & foreclosure Reporting to credit depositories OFAC database management (follow policy frequency)

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Mortgage Servicing

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Why Mortgage Servicing? •Fund for Humanity •Affiliate’s biggest asset •Unrestricted funds •Sustainability

Major Changes

January 2014

• RESPA/TILA Mortgage Servicing Rules • 9 rules split between 2 Regulations

• Many provisions to each rule

• Exemptions

• Small servicers

• State Finance Agencies

• All servicers – Master and Sub-servicers must comply

7/15/2015

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SAFE Act

• Governs servicing • May require license or registration • In some states, exemption covers servicing

• Texas exemption • Unless third party servicer (for other affiliates)

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Conference 2015 78

Federal Laws vs. State Laws

Servicing • Pre-foreclosure / Foreclosure filing • Escrow Account Administration – cushion,

interest, type of account • Payment treatment including partial and

late payments • Delinquency management • Late Fees amount

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Small Servicer Exemption

Small Servicer Exemption You are a small servicer if you service 5,000 or fewer mortgage loans, and you are the creditor or assignee for all of them.

New - Nonprofit Small Servicer definition – Allows Habitat affiliates who service for other affiliates even for a fee, the benefit from the small servicer exemption.

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Conference 2015 80

Servicing Laws Regulation X (RESPA)

Rule Exempt as Small Servicers

Small Servicer Requirements

Error Resolution & Information Request

No • Acknowledge request within 5 days • Correct error and provide written notification of

correction, or investigate and provide written notification that no error occurred within 30 – 45 days

• Provide requested information or search for the info and provide a written notification why it is not available

Forced-place Insurance

With exceptions • If the cost of the force-placed insurance to the consumer is less than the amount the small servicer would need to disburse from the consumer’s escrow account to pay the consumer’s hazard insurance premium.

Loss Mitigation With exceptions • Cannot make the first notice or filing required to foreclose unless a consumer’s mortgage loan is more than 120 days delinquent

• Cannot move for foreclosure judgment or order of sale, or conduct a foreclosure sale, if a consumer is performing pursuant to the terms of a loss mitigation agreement

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Servicing Laws Regulation X (RESPA)

Rule Exempt as Small Servicers

Requirements – if not small servicer

Servicing policies & procedures

Yes Establish policies and procedures ensuring key objectives such as record retention, oversight of, and compliance by, service providers, and proper evaluation of loss mitigation applications etc..

Early Intervention with delinquent homeowners

Yes Establish or make good faith efforts to establish live contact with consumers by the 36th day of their delinquency and, if appropriate to their situation, promptly inform them of loss mitigation options that may be available.

Continuity of Contact with delinquent homeowners

Yes Maintain policies and procedures reasonably designed to provide delinquent consumers with access to personnel who can assist them with loss mitigation options where applicable.

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Conference 2015 82

Servicing Laws Regulation Z (TILA)

Rule Exempt as Small Servicers

Small Servicer Requirements

Prompt Crediting of payments & response to request for payoff

No • Promptly credited as of the day of receipt. • A payment that is less than the amount due

may be placed in a suspense account. When the amount received covers a full monthly payment (periodic payment), promptly credit it to the consumer’s account.

• Accurate payoff balance are to be provided no later than 7 business days after receipt of a written request.

Rule Exempt as Small Servicers

Requirements – if not small servicer

Periodic Statements

Yes Consumers must be provided with a statement each billing cycle showing payment due and the application of past payments

Interest rate adjustment notices for ARMs

Not Applicable Does not apply to HFH

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Conference 2015 83

Mortgage Servicing Delinquency Defined

If the periodic payment is due the 1st of the month (May 1st ):

If not paid, it is delinquent the next day (May 2nd), which is the 1st day of delinquency (June 15th is 45 days)

• It is 30 days delinquent if it is not paid before the next due date.

• It is 60 days delinquent, if not paid before the following due date

• It is 90 days delinquent, if not paid before the following due date.

The first day of delinquency is important:

• To consistently trigger policy collections actions and to comply with12 USC 1701x(c)(5) requiring that before the 45th day, you must provide the delinquent homeowner information about credit counseling and the HUD toll free number for finding a certified nonprofit credit counseling agency. Should homeowner be a servicemember, the Servicemember Civil Relief Act (SCRA) notice also has to be provided by day 45.

• Absence of past due notifications can be used as a foreclosure defense

Habitat for Humanity International – Affiliate

Conference 2015 84

Mortgage Servicing Delinquency Defined

“Delinquency rate” is the percentage of mortgages that are 30 days or more past due

Portfolios with more than 20% overall /12% or greater of 60 days delinquent than is a problem – action required Portfolios with 20% or more of loans delinquent greater than 60 days is a major problem – show stopper, Board must be notified

*Comparisons - 30+ days delinquencies (Q1/15): • 1 – 4 unit residential mortgages = 5.54 down from 5.68%; • Subprime Fixed Rate mortgages = 17.60%; • Federal Housing Administration (FHA) mortgages = 9.10%; • Prime Fixed Rate mortgages = 3.18%

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*All rates derived from Mortgage Bankers Association “National Delinquency Survey”

Mortgage Servicing Collection Practices

Tips for success:

• Policy 24 - Mortgage Loan Servicing - requires written servicing policies, which needs to include payment processing, managing delinquencies, collections, and foreclosures. FOLLOW YOUR POLICIES.

• Clearly explain delinquency policies in homeowner education.

• Prompt corrective action and earlier notices of intent to foreclose result in fewer foreclosures. • Send out all notices and make phone calls as early your policy

states. • All contacts with homeowners should be done by the same

person. • Keep records from all communications.

• Collections is a finance function, not family services.

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Conference 2015 86

Mortgage Servicing Controlling Delinquencies

• Begins with family selection • Review of credit history; establish underwriting guidelines • only income paying the mortgage should be factored into ATR

• Comprehensive homebuyer financial training, which should include:

• Understanding importance of a good credit score • Setting financial goals • Importance of saving • Developing a budget • Repairing credit scores and the importance of paying bills on time

• Defined Servicing Practices

• Consistent application of servicing practices • Having clear policies and procedures that are consistently applied • Trained staff, including a succession plan for these roles

• Report to credit depositories

• Monitor mortgage receivable / delinquency - create a monthly report that captures this data 87

Habitat for Humanity International – Affiliate

Conference 2015

Mortgage Servicing Controlling Delinquencies Cont’d

Resolving Serious Delinquencies Requires:

• Acknowledge there is an issue and seek help from HFHI or other qualified experts

• Review policy and procedures to ensure it is comprehensive and covers all aspects of servicing

• Ensure that the policy is understood and followed

• Contact each homeowner that is delinquent to discuss options • Forbearance agreement • Loan modification • Deed in Lieu of foreclosure

• Foreclose when appropriate

• Outsource servicing to a professional servicer

• Change the effect of the “homeowner grapevine”

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Conference 2015 88

Mortgage Servicing Board Governance

Board of Directors have stewardship and fiduciary responsibilities to affiliate. • Monthly mortgage status report showing delinquency categories and amounts with

historic trends should be presented to the board.

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Reporting Period 12/31/14 Total Mortgages: 175

Delinquent # Mortgages Delinquent

Arrearage % Delinquent

30-59 days 12 $2400 6.9%

60-89 days 5 $2000 2.9%

90 plus days 8 $10,000 4.6%

Total this month 25 $14,400 14.3%

Total prior month (173 mortgages)

23 $12,900 13.3%

Total same month Prior year (163 mtgs)

30 $18,500 18.4%

Mortgage Servicing Escrow Management (RESPA)

Compliance is MANDATORY "Escrow account" Is an account that a mortgage lender establishes or controls on behalf of a borrower to pay taxes, insurance premiums including flood insurance, or other charges with respect to a mortgage loan, including charges that the borrower and lender voluntarily agreed that the lender collects and pays. The definition encompasses an account established for this purpose.

"Escrow funds" Is money entrusted to a mortgage lender by a borrower for the purpose of payment of taxes and insurance or other payments to be made in connection with the servicing of a mortgage loan.

• Account must be properly titled and set up as a fiduciary escrow account to protect homeowners. Federal insurers cover each individual homeowner’s funds up to the insurable limit – there is no cap on the account balance.

• You may not “borrow” from the escrow account

• Must comply with RESPA • Initial disclosure at closing or 45 calendar days after closing • Annual escrow analysis, leading to a statement provided to homeowners

notifying of changes due to tax or insurance adjustments • Cushion restrictions • Handling of surplus and shortages at end of computation year

Habitat for Humanity International – Affiliate

Conference 2015 90

Mortgage Servicing In-House vs. Third-Party Servicing

Why consider third-party servicing?

• Third party servicers for “full servicing” have lower delinquency rates (based on limited data).

• The cost of third party servicing is often less than the cost of an affiliate in-house servicing. See MPAR document Cost Comparison Mortgage Servicing

• In-house servicing requires professional servicing software and ongoing updates and support.

• It is difficult to stay on top of the constantly changing legal and banking compliance issues, thus increasing risk.

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Conference 2015 91

Mortgage Servicing Foreclosures / Bankruptcies

We strongly recommend that the affiliate work closely with a local residential real estate attorney that is experienced with bankruptcy and the foreclosure law and procedures of your respective state.

• Must know your state laws.

• Attorney should also review your policies and procedures.

• Bankruptcy attorneys have far more resources and options.

• Consider alternatives to foreclosure when appropriate, but be prepared to foreclose if necessary. • Forbearance Agreement • Deed in Lieu or Cash for Keys • Loan Modification

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Conference 2015 92

Mortgage Servicing Checklist

What is the servicing checklist? Guidance document

Captures laws that impact mortgage servicing

Identifies mandatory processes for servicing

Can be adapted to incorporate affiliate’s policies / procedures and state laws

Supplements other resources on MPAR University • Legal Advisory - Mortgage Rules and Regulations • FAQs - MPAR FAQs ; MPAR 201 (Mortgage Servicing)

Shares best practices / industry standards

It is NOT legal advice

Checklist & policy – available summer 2015 (or earlier)

7/15/2015

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Mortgage Servicing Checklist cont’d

Why was the checklist developed? Changes in laws

Compliance is mandatory

Affiliates still service in-house

Who will benefit /use the checklist? Affiliates

Funders

Investors

Regulators – state / federal

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Mortgage Servicing Checklist cont’d

Affiliate’s servicing policy with the following processes: • Post Closing (RESPA, TILA, E-Sign, GLBA)

Independent review of closing document- verify: HUD-1 to GFE & TIL Statement Promissory note is accurate (loan term, payment amount, maturity

date etc. correct spelling – names, address on all documents All required disclosures are in file

Recording of documents Security Instruments (Mortgage/Deed of trust; Equity sharing

agreements Deed restrictions (if any)

Follow-up of outstanding items

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Conference 2015 95

Mortgage Servicing Checklist cont’d

• Loan Boarding (RESPA, TILA) Hand off to (third-party) sub-servicer (if applicable) Create a servicing file Ensure escrow account is set-up Provide coupon books (if used and not already done)

• Payment Processing (TILA, RESPA, AML) Post payments according to mortgage document/state law Partial payment (handle according to policy) Late fee collection and application (no pyramiding of late

fees) Identify Suspicious Activity - Is the payment typical for the

homeowner?

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Conference 2015 96

Mortgage Servicing Checklist cont’d

• Delinquent Accounts (ECOA, RESPA, TILA, SCRA, GLBA)

Delinquent notices

Contact homeowner

Loss Mitigation options Loan workout (payment plan)

Loan modification

Forbearance agreement

Deed in Lieu

Cash for keys

Hardest Hit Funds (state program)

Foreclosure

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Conference 2015 97

Mortgage Servicing Checklist cont’d

• Deceased Homeowner (TILA; Garn-St. Germain Act)

Know your state laws

Garn-St. Germain Act prohibits exercising a due-on-sale clause as a result of death of a relative

Successor-in-interest rights – not a typical assumption, ATR does not apply to put them on title

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Conference 2015 98

Mortgage Servicing Checklist cont’d

• Escrow Management (RESPA, *FDPA)

Comply with mortgage document and/or state law Initial escrow analysis/statement (provided at closing) Create a record to log all transactions in/out of account Life of loan monitoring – escrow items Disbursement to payees must be made by due dates – late

fees cannot be passed on to homeowner Force-placed insurance (when required) Annual account analysis

Statement to homeowner 30 days after computation year Surplus reimbursement Shortage collection Voluntary agreement to hold additional escrow funds

*Flood insurance

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Conference 2015 99

Mortgage Servicing Checklist cont’d

• Request for Payoff (TILA, RESPA)

Must be provided by 7th business day Shared appreciation Subordinate mortgages that are triggered Deed restrictions

Final Loan Payment Record Release the Deed of Trust / Satisfaction of Mortgage in

county (release the lien) Stamp “cancelled” on note and mortgage and deliver to

homeowner Escrow Account

Refund must be provided within 20 days Short year statement provided within 60 days Affiliate’s must be removed from Hazard Insurance

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Mortgage Servicing Checklist cont’d

• Error Resolution & Information Request (RESPA)

Acknowledge request within 5 days Within 30 – 45 days - correct error, research information,

provide written notification to homeowner No later than 7 days if the concern is inaccurate payoff balance (earlier of) Within 30 days or prior to date of foreclosure sale for

concerns for initiating foreclosure prematurely

• Record Retention (RESPA)

Servicing file Contain all transactions/notes for each mortgage within 5 days of

occurrence, including escrow and suspense accounts

Copy of security instrument(s)

Maintained until 1 year after

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Mortgage Servicing Checklist cont’d

• Credit Reporting (FCRA)

Establish an agreement with credit reposting agencies (CRA)

Minimum accounts to report directly If not enough accounts, engage third-party processor

Responsible for accuracy of information submitted

30 days to investigate and respond to disputes

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Mortgage Servicing Checklist cont’d

• Annual Reminders (RESPA, GLBA, Dodd-Frank Act, USA PATRIOT Act, BSA/AML)

Escrow analysis / statements

Privacy Notices

Policy review

Vendor review

OFAC Portfolio should be verified

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Questions

7/30/2015 104

General Discussion

7/30/2015 105

106

Affiliate Support Center

• ussupportcenter@habitat.org or 1-877-434-4435

Wonderful Texas Trainers

Trish Sanders (Houston) = tsanders@houstonhabitat.org

Waletta Taylor (Smith County) = waletta@smithcountyhabitat.org

Michele Seymour Burns (Midland) = mseymour@habitatmidland.org

Michelle Borckardt (Waco) = Michelle@wacohabitat.org

Michelle Kennedy (Trinity) = michelle.kennedy@trinityhabitat.org

HFHI MPAR Team

HFHI Legal Department HFHI Affiliate Financial Services

Natosha Reid Rice (nreidrice@habitat.org) Tera Doak (tdoak@habitat.org) Sabrina Fitze (sfitze@habitat.org)

Sonia Lee (slee@habitat.org) Irvin Stallworth(istallworth@habitat.org)

Support & Resources