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Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY

Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence J. Snuggs DEPUTY SECRETARY. Community Development Administration Maryland Mortgage Program Quarterly Counselor Meeting Update June 18, 2013. New Targeted Areas Initiative!.

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Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY

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  1. Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence J. Snuggs DEPUTY SECRETARY Community Development AdministrationMaryland Mortgage ProgramQuarterly Counselor Meeting UpdateJune 18, 2013

  2. New Targeted Areas Initiative! • Interest rate is ½% lower for Regular MMP, DHCD-Owned Foreclosure (Conventional only), Save-A-Home and MD Homefront loans • Includes Conventional, FHA, and RHS Loans • Launched 6/5/2013. Good until September 30, 2013 or $20 million—whichever comes first! • Don’t Forget!: Borrower does not have to be a first-time homebuyer in Targeted Areas

  3. One-half of a percent discount (.50%) lower than the prevailing MMP rate $10,000 assistance from the Downpayment and Settlement Expense Loan Program (DSELP) Don’t Forget: Qualified veterans can receive a waiver for the first-time homebuyer requirement. CDA MMP Products MD Homefront:The Veterans and Military Family Mortgage Program Recently extended to 9/30/2013!

  4. Products with Additional Assistance • SAVE-A-HOME PROGRAM • Short sale properties and non-DHCD-owned foreclosures • Interest rate is the same as the prevailing MMP interest rate, but DSELP is increased to $6,500

  5. CDA MMP Products DHCD has real estate owned (REO) inventory throughout the State of Maryland Properties are listed and sold through ROC Realty and Long & Foster and will carry a notation on the MLS listing Borrowers purchasing homes owned by DHCD and utilizing the MMP are eligible for reduced interest rates. Currently that is 1% (changing to 2% on 7/1/13). www.mdhousing.org/website/programs/Reo/Default.aspx DHCD-Owned Foreclosures

  6. CDA Refinance Programs Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence J. Snuggs DEPUTY SECRETARY

  7. 97% LTV Conventional Refinance Loan Program Launched March 1, 2013

  8. Zero point program Fixed interest rate 30-year term Fully amortizing Limited cash out 97% LTV Conventional Refinance Loan Program

  9. Minimum credit score: 680 97% LTV Conventional Refinance Loan Program

  10. 97% LTV Conventional Refinance Loan Program Reduced Mortgage Insurance Premiums! Coverage required by HFA Preferred • 18% for LTVs > 95% and <=97% • 16% for LTVs > 90% and <=95% • 12% for LTVs > 85% and <=90% • 6% for LTVs > 80% and <=85%

  11. 97% LTV Conventional Refinance Loan Program • Borrower can get a more affordable monthly payment by paying the mortgage insurance up front 0R the monthly MI payment can be terminated when a lower LTV is reached. • LTV cannot exceed 97% under Fannie Mae’s HFA Preferred Program, even if the private mortgage insurer has a higher guideline.

  12. MMP Lowers Monthly Payments Assumptions: Estimated monthly mortgage payments (principal + interest + mortgage insurance premium (MIP)) assume a mortgage loan of $175,000 for a standard 30-year fixed-rate product for borrowers with credit score of 680. A loan to value (LTV) ratio of 97% is assumed.

  13. Detail of Monthly Housing Payments NO Monthly MIP - Borrower pays single PMI payment of $4,987 at closing. Assumptions: Mortgage insurance on the market conventional mortgage loan assumes 35% coverage with a mortgage insurance premium (MIP) of 1.36%. The MMP conventional loan assumes a MIP of .85% for 18% coverage. *Available MMP Closing Cost Assistance of $5,000 can offset borrower single pay mortgage insurance premium (MIP).

  14. Participating Mortgage Insurers* Essent Guaranty, Inc.Genworth Financial, Inc. (GE) Mortgage Guaranty Insurance Corporation (MGIC) Radian United Guaranty Residential Insurance Company (UGRIC) *In addition to Federal Housing Administration (FHA) insurance and Veterans Administration (VA) or Rural Housing Services (RHS) guaranty 97% LTV Conventional Refinance Loan Program

  15. FHA Streamline Refinance Program for Existing CDA Borrowers Announced 6/12/2013

  16. CDA FHA Streamline Refinance • Pilot program for existing CDA borrowers with: • FHA loans that were originated prior to May 31, 2009 • Middle credit score of 680 or above • No delinquent payments in the past 24 months and never more than 60 days

  17. CDA FHA Streamline Refinance • A fully amortizing, no cash-out refinance loan with a 30-year term • No appraisal required; no homebuyer education required • Rates will be posted daily on the CDArate sheet

  18. CDA FHA Streamline Refinance • CDA borrowers who have been identified as potentially eligible will receive an invitation letter and given the list of participating lenders • We will be releasing our first letters July 1 • Interested lenders are signing up

  19. Subordinating Liens For a borrower who is refinancing a CDA loan using a CDA refinance program: Downpayment assistance lien from the original loan may be subordinated – continuing the 0% deferred rate for the life of the new loan.

  20. Resources Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence J. Snuggs DEPUTY SECRETARY

  21. MMP Resources • Interest rates are calculated on an ongoing basis. They are posted online and a notice goes out every weekday morning and sometimes afternoons • Check current interest rates at: www.mmprogram.org/rates.aspx

  22. MMP Resources (continued) www.mmprogram.org Website contains information on programs, rates, initiatives, counseling, downpayment assistance, approved lenders, directives, and more.

  23. Resources – website: www.mmprogram.org

  24. Questions? Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence J. Snuggs DEPUTY SECRETARY

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