Oklahoma County Home Finance Authority Turnkey Mortgage Origination Program

Administrator Guideline

Original Publish Date - January 4, 2013

Revisions are shown on Page 3

TABLE OF CONTENTS

REVISIONS TABLE 3

OKLAHOMA COUNTY HOME FINANCE AUTHORITY PROGRAM TEAM 4

THE PROGRAM PRODUCTS 5

Assisted Rate Loan with 3.50% Assistance Grant 5

PROGRAM REQUIREMENTS 6

Eligible Borrowers 6

Maximum Debt-to-Income (DTI) Ratio 6

Homebuyer Education 6

Income Limits 6

Eligible Area 6

Purchase Price Limits 6

Property Requirements 6

ABOUT THE FINANCING 7

THE PROCESS SUMMARY 8

PROCESS GUIDELINES FOR REQUESTING DOWN PAYMENT ASSISTANCE FUNDS 9

PROGRAM TIMETABLE 11

Loan Processing, Delivery and Purchase Timetable 11

Extension Request 11

eHousingPlus WEB-BASED SYSTEM 12

PROGRAM FEES 13

First Mortgage Fees 13

DPA Funding Wire Fee 13

Lender Net 13

PROGRAM FORMS 14

NEW DOCUMENT REQUIRED FOR US BANK FILE 15

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 2

REVISIONS TABLE

Date

2/8/13 Pg. 9 Guidelines for Requesting DPA Funds; Pg. 11 DPA Funding Wire Fee Revised; PG. 16 Sample Forms

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 3

OKLAHOMA COUNTY HOME FINANCE AUTHORITY PROGRAM TEAM

OKLAHOMA COUNTY HOME FINANCE AUTHORITY(“OCHFA” or “the Authority”)

Creates and sponsors a first mortgage program and a down payment assistance program, sets the mortgage loan rate, term and

points, and markets the program

Participating Lenders Take applications, reserve in their own systems, process, underwrite,

approve, fund, close and sell qualified home mortgage loans to the program. Lenders are responsible for servicing program loans in accordance with Agency requirements until they’re purchased by the Master

Servicer.

US BankMaster Servicer or Servicer

Provides information on acceptable loan products and delivery and funding, receives all first mortgage files, reviews first mortgage files, notifies lenders

of first mortgage file exceptions, approves first mortgage files, purchases pools and delivers loans, delivers certificate.

eHousingPlus Program Administration

Maintains the program reservation system, website, and posts Administrator’sguide, forms, training materials, provides program and system training, answers program and system

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

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 4

THE PROGRAM PRODUCTS

PLEASE NOTE THAT RATES AND ASSISTANCE GRANT AMOUNTS ARE SUBJECT TO CHANGE AT ANY TIME. With respect to reserved loans, the rate and assistance will not change as long as loans are delivered according to the timetable included in this Guide.

All loans in this program are Assisted Rate Loans.

The following mortgage products are offered in this program: FHA, VA, USDA: RD. No conventional loans. US Bank provides the types of government loans permitted.

Funds are available in a first-come, first-served revolving pool that provides continuous funding.

Assisted Rate Loan with 3.50% Assistance GrantThe borrower receives a 30-year, fixed rate, fully amortizing first mortgage loan with 360 level monthly payments as well as an Assistance payment equal to 3.50% of the original principal Note amount to apply toward down payment or closing costs. Current rates are available online within the system eHousingPlus Lender Portal. Income and purchase price limits apply.

The Assistance is calculated on the Note amount. The Assistance may be used for down payment or closing costs and prepaids. While there is no cash back in this program, the borrower may be reimbursed for any overpayment of escrow. Because the Assistance is a fixed percentage of the original principal amount of the mortgage loan, any remaining Assistance must be applied as a principal reduction. Assistance is in the form of a non-repayable grant. It is not repayable under any circumstances. When you reserve the first mortgage, the Assistance is automatically reserved. There is no additional reservation necessary. When you close the loan there are not second mortgages, second notes, deed restrictions or liens. There is no repayment.

The Assistance will be funded by the Authority via electronic wire transfer either directly or from its agent. Lenders are advised that according to the HUD Manual (4155.1 Chapter 5, Section B, page 5-B-16): “Lender must obtain and keep the documentation of the wire transfer in its mortgage loan application binder. While the document does not need to be provided in the insurance binder, it must be available for inspect by FHA’s QAD when that office conducts its onsite review“.

Lenders are required to submit a Wire Transfer Request Form minimum of 2 business days prior to any loan closing date. The Wire Transfer Request Form may be found in the secure section of the eHousingPlus Lender Portal. The Underwriter Certification must be completed prior to the submission of the Requisition Form. Follow instructions on the Requisition Form for email delivery to the appropriate parties.

The amount of the Assistance Grant will be reduced by a $25 Funding Fee, which is to be disclosed to the borrower as such. For more information, see Program Fees in these Guidelines.

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 5

PROGRAM REQUIREMENTS

Eligible Borrowers• There is no first-time homebuyer requirement in this program.• With regard to citizenship requirements, follow applicable Agency (FHA, VA, USDA;RD) • Buyers must occupy the property within 60 days of closing.• Applicants must be considered irrespective of age, race, color, religion, national origin

Buyers must have a minimum FICO credit score of 640, the mid score must be the minimum or above. If an Agency (FHA, etc) has a higher minimum, follow Agency guidelines. If a participating lender has a higher minimum for other loans and wishes to require a higher minimum for loans, then lenders must use the higher minimum. For home buyers with NO FICO score, manual underwriting shall be permitted. Underwriters must follow the manual underwriting guidelines for the loan product.

Maximum Debt-to-Income (DTI) RatioThe maximum DTI ratio is 45%.

Homebuyer Education The Authority recommends but does not require homebuyer education. Income LimitsUse Form 1003 Credit Qualifying Income Maximum Income Limit = $92,500

Eligible AreaOklahoma County including Oklahoma City.

Purchase Price LimitsNew or Existing Residence = $225,000 Must include everything paid by the buyer or on the buyer’s behalf

Property Requirements• New or existing, one-four units, detached or attached, condos, town homes, manufactured homes that

meet servicer/insurer/guarantor requirements. • Mobile, recreational, seasonal or other types of vacation or non-permanent homes are not permitted. • Land may not exceed the size required to maintain basic livability. • Properties purchased in the program must be residential units.

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 6

ABOUT THE FINANCING The following mortgage products are currently offered in this program: FHA, VA, USDA;RD. No conventional loans. US Bank provides the types of government loans permitted.It’s expected that lenders have reviewed some preliminary documentation and believe that applicants will also qualify for credit. Excessive cancellations will be reviewed to assure that program funds are not being utilized inappropriately.

Appraisal The appraisal must indicate that the home has at least a 30 year remaining useful life.

Asset testAsset tests are not required in this program.

AssumptionsFollow Agency Guidelines.

BuydownsFollow Agency Guidelines.

Cash Back Cash Back to the borrower is not permitted. However, borrowers are permitted a reimbursement of pre-paids and overage of earnest money deposit as permitted by Agency guidelines and to the extent any minimum contribution, if any, has been satisfied.

Construction to PermNot permitted.

CosignersPermitted to the extent permitted by applicable Agency (FHA, VA, USDA:RD). Treat cosigner/income as directed by the Agency. A cosigner cannot reside in the property and cannot have any ownership interest in the property (they cannot be on the Mortgage/Deed/WarrantyDeed).

Minimum Loan Amount There is no minimum loan amount in this program.

Prepayments The first mortgage may be prepaid at any time without penalty.

Recapture Tax There is NO RECAPTURE TAX IN THIS PROGRAM.

RefinancesRefinances are not permitted in this program. However, temporary, bridge or construction loans with a term or 2 years or less may be taken out with a program loan.

Remaining reserves are not established by the program. Follow Agency Guidelines.

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 7

THE PROCESS SUMMARYTRAIN

Lender training provided by the Administrator and Servicer -- See TRAINING tab located on the eHousingPlus web page for the OCHFA program.For programmatic information and program and system training --eHP University is offered 24/7 -- username and passwords, added to email notice directory once weekly on Wednesdays.For underwriting, delivery and funding information --US Bank also offers ongoing training.

LENDER PORTAL USER CREDENTIALSFollowing eHP University training, Lenders apply for User Credentials on the ehousingplus website with instructions received in an email the Wednesday following training.

QUALIFYLenders qualify applicants for the program. Buyers must present an executed sales agreement before being entered into the program reservation system.

RESERVE To reserve funds in program’s online system click on this link. Log in and reserve the first mortgage that automatically provides Assistance. You will receive a loan number and a message that you’ve completed the reservation successfully.

PROCESSLenders process the loan as they would normally keeping in mind the program timelines.

UNDERWRITE AND CERTIFY Lenders underwrite & are responsible for credit decisions of the loans in the program. Servicer does not re-underwrite loans. Following credit approval AND WITHIN 15 DAYS OF LOAN RESERVATION, Underwriter completes the online Underwriter Certification form. Access system on the ehousingplus website.

REQUEST WIRE TRANSFER OF ASSISTANCELenders are required to submit a Wire Transfer Request Form a minimum of 2 business days prior to any loan closing date. The Wire Transfer Request Form may be found in the secure section of the ehousingplus.com website. Underwriter Certification must be completed prior to the submission of the Wire Transfer Request Form. See Page 9 of this guideline for details.

CLOSELender closes loan. Notice of Down Payment and Closing Cost Assistance (gift letter acknowledgment) is signed at closing and retained by lender. Lender is also advised to keep documentation of wire transfer in its mortgage loan application binder.

SHIP / SUBMITUse the Compliance Checklist to assemble the Compliance File. The Compliance File is submitted directly to eHousingPlus. The first mortgage file and credit package are submitted to US Bank. US Bank checklists are on their website. Recorded mortgage documents should be submitted to US Bank.

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 8

NEW! OKLAHOMA COUNTY HOME FINANCE AUTHORITY (OCHFA)PROCESS GUIDELINES FOR REQUESTING DOWN PAYMENT ASSISTANCE FUNDS

Based on NEW HUD-mandated regulations, the Authority MUST provide DPA funds directly to the Closing Agent. The Lender may no longer advance these funds. These requirements apply to all loan types. The NEW process will become effective for all mortgage loans closed on and after January 24, 2013 and as follows:

1. Lender will reserve the first mortgage and any assistance as is being done today on the online system at: http://www.ehousingplus.com/available-programs/oklahoma/oklahoma-county/

2. Lender will process the loan(s) and update the information in the system as the loan moves through the pipeline.

3. Once the loan has been approved internally, the Lender’s Underwriter will execute the Underwriter’s Certification online.

4. After the Underwriter Certification has been completed, and with a scheduled closing date, the Lender’s authorized representative must fill out and execute the DPA Grant Requisition own Payment Assistance Funding Request Form available in the system, under LOAN FORMS.

5. The DPA Grant Requisition Form must be printed, signed, and scanned in .pdf format.

6. Two (2) business days prior to funding, the Lender sends a complete, executed .pdf or scanned version of the DPA Grant Requisition Form, to the following email addresses:dsuddath@bancfirst.combancfirstct@bancfirst.comemcgee@ochfa.org

7. The DPA Grant Funds Requisition Form is reviewed. The Authority then will ‘Reply to All’ on the email Requisition “Confirmed” – after a representative of the Authority has confirmed the Mortgage Loan number and amount on the website of the Program Compliance Administrator, eHousingPlus. BancFirst, custodian for OCHFA, wires funds to the Closing Agent. Funds are wired directly to the Closing Agent/Title Company and NOT the Lender or Borrower.

8. Please make sure that instructions are provided to internal Processor/Closer and to the Title Company/Closing Agent.

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 9

9. If the Loan does not close on the Loan Closing Date indicated on the Request Form, Lender agrees to cause the funds to be returned to BancFirst for the credit of the Authority’s account not later than the close of business on the business day following the Loan Closing Date. Wiring instructions for the return of funds are as follows: BancFirst; ABA 103003632; Account Number: 403979008; Attention: Trust Department; REF: Oklahoma County HFA ’13 Turnkey Escrow Account

eHousingPlus’ (eHP) goal is to facilitate this process and to provide Lenders the assistance needed to ensure the DPA Funds are available at each closing. Please make sure that eHP and the following email addresses are added to your white lists/contacts as both systems generated and other emails related to the DPA Grant Requisition will be sent:

dsuddath@bancfirst.combancfirstct@bancfirst.comemcgee@ochfa.org

IT IS IMPORTANT that lenders receive a copy of the wire or proof of the wire delivered to the Closing Agent. Lenders retain proof, place a copy of the proof in their FHA Case Binder and also must submit a copy of the proof to US Bank as an attachment to the Down Payment Assistance Funding Verification Form - USB001 – and placed in the Mortgage File as per the US Bank delivery checklist. US Bank is posting the Verification form on All Regs within the Exhibits folder.

NOTE: The Lender will be required to repay the DPA Grant to the Authority if the mortgage loan is not ultimately pooled into a GNMA Certificate sold to the Authority under the program.

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 10

PROGRAM TIMETABLE

Buyers MUST HAVE A FULLY- EXECUTED SALES CONTRACT FOR A SPECIFIC PROPERTY in order to have funds reserved or be on a waiting list. The contract may be dated prior to the date of the loan application. Buyers may be pre-qualified. However, if the buyer does not have a contract on a property, program funds cannot be reserved for the buyer until such time as the buyer presents a valid contract.

To assure that loans are purchased, please follow the Processing, Delivery and Purchase Timetable below. Please DO NOT reserve loans that cannot meet the timetable. Please wait until 45 days before closing to reserve funds for new construction, short sales and foreclosures. Loans not purchased within the timeframe below cannot be purchased.

The revolving pool of funds assures continuous funding. Fund availability makes it unnecessary to rush to reserve funds.

Loan Processing, Delivery and Purchase Timetable Once a loan is reserved in the eHousingPlus system and is provided the Servicer’s Loan number, the loan must be (1) underwriter certified within 15 days of loan reservation (2) closed and delivered to the Servicer within 45 days of loan reservation and (3) purchased within 70 days of loan reservation.

Extension RequestAny loan not purchased within 70 days is ineligible for purchase unless the lender chooses a one-time only 30-day extension. The cost of the extension is $375. The $375 extension fee is due whether or not loans are ultimately delivered and/or purchased. The $375 will be netted by the Servicer when loans are purchased. If an extension is permitted, but the loan is not purchased, the originating lender will be billed for the extension fee of $375. Any outstanding fees owed by the lender may result in that Lender becoming ineligible to participate in the program.

At 101 days, a loan that hasn’t been delivered is cancelled and cannot be reinstated.

Again, the extension is offered once per loan and no further extensions will be allowed. Furthermore, regardless of choosing an extension, any loan not purchased within the approved timeframe will become the liability of the originating lender.

To the extent that Assistance is advanced on loans that do not close, are not purchased by the Servicer under the program or are to be repurchased by the lender prior to being pooled into a mortgage-backed security, the lender will be required to reimburse the Authority with respect to such Assistance so advanced. An extension request is available on the eHousing Plus web page for the OCHFA program.

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 11

eHousingPlus WEB-BASED SYSTEM (Reserve, View Your Pipeline, View or Run Reports, Review Exceptions)

This represents a brief presentation of information available to lenders. The eHousingPlus online system is called the lender portal. There is an online “Chat” feature, which is the easiest way to receive answers for your questions about the use of the system.

You do not need a username and password to access the program guidelines or training materials. Click here for the eHousingPlus OCHFA web page, then click on the SUMMARY tab to view the Administrator Guidelines.Click here to attend program training, click on the TRAINING tab.

You do need a username and password to log in and reserve money for a borrower and to print forms that are auto-filled and printed ready for execution or to run a variety of reports. These reports offer an opportunity to truly manage your pipeline.

To make a reservation, complete and underwriter certification, check your pipeline, view allocation and print program forms click on this link. The system is live and available 24/7 with the exception of scheduled and unscheduled maintenance. When you reserve a loan, it is immediately reflected in the remaining available funds. When you cancel a loan, funds are immediately reflected and available.

Program funds are locked for a buyer when a reservation is submitted on and accepted by the system and a loan number is obtained. All loans must be registered through the eHousingPlus Website. Complete the reservation screens online and submit. Reservations submitted correctly receive a loan number that becomes the loan number for the life of the loan. If submitted incorrectly, there is instant online feedback identifying non-compliance and/or missing information issues.

The security features control the information each user can access. For example, only Underwriters may access the Underwriter Certification. The Underwriter Certification serves as the pre-approval process and is implemented by the lender’s Underwriter. In this program, the Underwriter will simply be verifying data that has already been input into the system (i.e. property address, borrower name, loan amount, etc) and making changes where necessary.

To reserve funds in the eHousingPlus Lender Portal, click on this link. Log in and reserve the first mortgage that automatically provides assistance. You will receive a loan number and a message that you’ve completed the reservation successfully.

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 12

PROGRAM FEES

First Mortgage Fees There are zero origination and zero discount fees in this program. No additional points may be charged.

The program includes a Compliance Fee of $225. The fee is payable at closing and remitted to eHousingPlus with the Compliance File. The fee must be disclosed on the HUD-1 as being paid to eHousingPlus and can’t be financed.

US Bank fees of $85 Tax Service Fee and $200 Funding Fee are payable at closing. Both must be disclosed on the HUD-1 as being paid to US Bank. They will be netted at loan closing and can’t be financed.

DPA Funding Wire FeeOCHFA will pay the $25 DPA Wire fee. As of Feb. 8, 2013 the $25 DPA wire fee will NOT be netted from the DPA wire amount.

Lenders are permitted to charge reasonable and customary charges for out of pocket expenses and costs. Other financing costs such as legal fees and underwriting fees may be charged and courier fees may be charged if such fees are normally charged. Lenders may charge the usual and reasonable settlement costs. Settlement costs include titling and transfer costs, title insurance, survey fees or other similar costs. Other allowable fees include doc prep fees, notary fees, hazard, mortgage and life insurance premiums, recording or registration charges, prepaid escrow deposits and other similar charges allowable by the insurer/guarantor. "Junk" fees are not a defined term and may not be charged. Excessive fees are not permitted in the program.

Lender NetOn each loan the lender receives 2.00% SRP for FHA and USDA: RD loans and 1.50% SRP for VA loans paid by US Bank on loan purchase.

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 13

PROGRAM FORMS

PRE-CLOSING

Extension Request FormAn extension request is available here. Click on the SUMMARY tab and scroll down to the area titled - PROGRAM DOCUMENTS. The extension request will be completed and submitted online.

DPA Grant Requisition FormUnderwriter Certification must be completed prior to submission of the Requisition Form. The Requisition Form is available in the eHousingPlus Lender Portal behind security, click on this link. See page 10 of these guidelines for a complete explanation..

CLOSING DOCUMENT

Notice of Down Payment and Closing Cost AssistanceOriginal sent to US Bank per their checklist.

DOCUMENTS REQUIRED FOR COMPLIANCE FILE

Compliance File Checklist Available online www.ehousingplus.com

Copies of the following:Real Estate Purchase AgreementComplete Agreement including any addendums. All signed and dated by all parties.

Final Typed Loan Application (Form 1003) The typed application signed and dated by all parties is required. Loan interviewer must complete and sign page 3 of 4 of the 1003. If this is not possible, then an Officer must sign in place of the interviewer. HUD-1 Settlement Statement Buyer, seller and closing agent must fully execute the HUD-1. Borrowers on the HUD-1 must be all persons taking title to the property and match other documents. Persons not taking title to the property may not be named or sign the HUD-1. The TBA Application Fee must be shown as being payable to eHousingPlus and US Bank fees must be disclosed as being paid to US Bank.. Please do not bundle charges. Itemize all charges to the transaction. Payoffs of other debt must appear on Page 1 under Section 100 of the HUD-1 as part of "Settlement Costs".

Warranty DeedA copy of the Warranty Deed is required.

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 14

NEW DOCUMENT REQUIRED FOR US BANK FILEEffective Jan. 24, 2013

Down Payment Assistance Funding Verification Form - USB001

IT IS IMPORTANT that lenders receive a copy of the DPA Requisition wire. Lenders retain a copy of the wire, place a copy of the wire in their FHA Case Binder AND also must submit a copy of the wire to US Bank as an attachment to the Down Payment Assistance Funding Verification Form - USB001 – and placed in the Mortgage File as per the US Bank delivery checklist.

This form may be found on the US Bank ALL Regs web site.

Click on this link: http://www.mrbp.usbank.com/cgi_w/cfm/personal/products_and_services/mortgages/mrbp_division.cfm

Click on US Bank Lending Manuals

Pop-up box will appear, click on Continue

Web page will be redirected to US Bank All Regs site.

Click on Housing Finance Authority folder

Click Oklahoma

Click Oklahoma County Home Finance Authority

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 15

SAMPLE FORMS

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 16

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 17

OCHFA Turnkey Mortgage Origination Program Administrator Guideline Page 18