Maryland Mortgage Program Morning Workshop Series

1. Maryland Mortgage ProgramMorning Workshop Series

2. Mortgage Products Homeownership Accomplishments Calendar Year 2007 Total Loans 4,079 Total Loan Amount $828.7 million Calendar Year 2008 Total Loans 2,315 Total Loan Amount $450 million Calendar Year 2009 Total Loans 689 Total Loan Amount $108.6 million January, 2010

3. CDA STAFF CONTACT INFORMATION Assistant Director of CDA Bill Manahan manahan@mdhousing.org 410-514-7508 Pre-closing questions - contact CDA Underwriting Astrid Donis donis@mdhousing.org 410-514-7520 Carlette Brisker brisker@mdhousing.org 410-514-7517 Dale Quisgard quisgard@mdhousing.org 410-514-7924 Kristine Clark clark@mdhousing.org 410-514-7014 Post-closing questions - contact CDA Purchasers Brooke Bell bell@mdhousing.org 410-514-7147 Carolyn Hunt hunt@mdhousing.org 410-514-7504 Vi Creek creek@mdhousing.org 410-514-7516 Vicki Jones jonesv@mdhousing.org 410-514-7519

4. CDA STAFF CONTACT INFORMATION Email Judy Shannon shannon@mdhousing.org for: Census Tract #, PFA New Construction, Request for POA approvals for Seller Affidavit/Confirming Affidavit Attachment R Fax only to 410-729-3723 (24 hour turn time / 4pm daily cut-off) All Conditions Fax only to 410-729-3722 (24 hour turn time / 4pm daily cut-off) Commitments Peggy Otto otto@mdhousing.org MERS and Purchase Advice Pat Smith smithp@mdhousing.org Final Documents Vi Creek creek@mdhousing.org

5. Mortgage Products

6. Mortgage Products Fixed interest rate - entire term of loan FHA, VA, or RHS loan types Downpayment/closing cost assistance available

8. Who�s Eligible?

9. Eligibility Guidelines Eligible Borrowers Income & Purchase Price Limits Assets First-Time Homebuyer Property Requirements Home Inspection Homebuyer Education

10. Eligible Borrowers Single borrower, or if married, one borrower must be 18 years of age If married, both spouses are not required to apply If separated, a Separation Affidavit must be completed Co-signers are NOT permitted

11. Eligible Borrowers (continued) Must intend to occupy the property as a principal residence within 60 days of closing May not exceed income limits Borrowers cannot own any other real property at the time of closing

12. Eligible Borrowers (continued) Citizenship of the United States is not required to obtain a CDA loan Borrower must have a valid social security number and, Be eligible to work in the United States

13. Eligible Borrowers (continued) Total projected Annual Household Income may not exceed applicable income limit Projected income for ALL household members (including overtime, part-time, commissions, etc.) is utilized to determine income Eligibility Calculator on website under �Tools�: www.mmprogram.org/tools.aspx

14. Eligible Borrowers (continued) CDA requires one month current and consecutive paystubs Monthly x 12 months Twice-monthly x 24 weeks Every other week x 26 weeks Weekly x 52 weeks One of the above calculations is the eligibility income for the LOL reservation

15. Eligible Borrowers (continued) Other Sources of Income Overtime Bonus Commission Business Income/Self Employed Borrower Interest, Dividends, etc� Unemployment Compensation Alimony or Child Support Public Assistance Allowances, etc� *CDA calculates income for ELIGIBILITY* *Lender calculates income for AFFORDABILITY*

16. Purchase Price Limits May not exceed limits established for applicable jurisdiction Includes contract sales price, capitalized ground rent, additional cost and value of lot owned by the borrower for 2 years or less Does NOT include any closing costs, points or fees

17. Assets An asset test is required for borrowers whose assets equal or exceed 20% of the purchase price A �gift of equity� (difference between the appraised value and the purchase price) in a non-arms length transaction is considered an asset Retirement funds that are not being used to purchase the home and any secondary financing are NOT included in the calculation Relocation benefits under the Uniform Relocation Act in connection with condemnation proceedings are not included in the calculation

18. Eligibility Guidelines & Definitions Federal Definition: Borrowers who have not had a �present ownership� interest in a principal residence in the last three years Borrowers who are purchasing in a TARGETED AREA do NOT need to meet the first-time homebuyer definition

19. Eligibility Guidelines (continued) Veterans purchasing in a non-targeted area are exempt from the first-time homebuyer rule and may have owned a home in the past three (3) years A veteran may use this exemption only one time (does NOT have to be a VA loan) A copy of the DD-214 must be presented to the Lender

20. Eligibility Guidelines (continued) Submit three (3) years signed tax returns OR Tri-merge credit report verifying three (3) years rental history If credit report does not show rental history, also submit verification of rental history for previous three (3) years

21. Eligibility Guidelines (continued) Targeted Area Targeted areas are designated by the Federal Government To promote investment, borrower does not have to be a first-time homebuyer if property is located in Targeted Area

22. Eligibility Guidelines (continued) The following jurisdictions are designated targeted areas: Allegany Co. Baltimore City Caroline Co. Garrett Co. Dorchester Co. Kent Co. Somerset Co.

23. Eligibility Guidelines (continued) In addition, portions of other counties are targeted areas To determine if a specific area is targeted: http://www.mmprogram.org/TargetedAreas.aspx

24. Priority Funding Areas  Older community or locally-designated growth area where State and local governments already have a significant financial investment in the existing infrastructure If new construction, it MUST be located in a Priority Funding Area

25. Priority Funding Areas  Refer to: http://mdpgis.mdp.state.md.us/pfa/pfa.htm In the �locate box� enter the property address Click on Locate, then the globe on the left hand side of the page, and in the globe a drop down box will appear, click �Legend� Print out the property address page with chart and place in loan file for submission to CDA

26. Eligible Property Types Detached Attached Semi-detached Townhouses Modular Condominium Manufactured Housing (with State Seal of Approval; must be a double-wide with 800 minimum square feet)

27. Eligible Property Types (continued) Urban/ Suburban: 1 Acre Rural: 3 Acres

28. Eligible Property Types (continued) Existing Homes: Home Inspection � items determined by the Lender as imminent fire, safety and health hazards must be addressed; necessary repairs must be certified as complete prior to closing

29. Eligible Property Types (continued) Newly Constructed Homes: satisfactory Final Inspection Report - property must be certified 100% complete prior to closing Home Inspection not required for new construction or a rehabilitation that cost 50% or more of the sales price of the property Well/Septic: if noted unsatisfactory in appraisal or home inspection, a satisfactory certificate is required

30. Eligible Property Types (continued) Termite Inspection: required if infestation is noted in appraisal or home inspection; a certificate is required and treatment if recommended. If resulting damage is structural, it must be repaired Property must meet minimum standards of the Guarantor Escrows satisfied with evidence of release: only exceptions are weather related

31. Counseling Requirements Homebuyer Education is Required A counseling certificate is required from the homebuyer education class provider Lender�s Certification of Completion form is required If the borrower is applying for DSELP, specific requirements for Baltimore City, Anne Arundel, Baltimore and Harford Counties must be followed

32. Counseling Requirements (continued) Refer to www.mmprogram.org for additional information on counseling requirements

33. Credit Scores CDA Loans Minimum credit score � 620 If the borrower has no credit score and the loan is a manually underwritten FHA loan, the loan will be eligible if the borrower has acceptable non-traditional credit as determined by current Insurer underwriting guidelines The Lender must include a complete copy of the Credit Report in the Pre-Closing compliance file Effective 11/20/09; refer to Directive 2009-20

34. Ratios For all manually underwritten loans CDA supports a benchmark DTI of 36% This benchmark can be exceeded up to a maximum DTI of 45% with strong compensating factors as defined by the Insurer and documented by the underwriter on the Underwriting Transmittal Form

35. Ratios (continued) The maximum DTI for all loans underwritten by an automated system is 45% Effective December 1, 2009, Lenders are required to submit the full credit file that supports the decision of the Lender�s underwriter Refer to Directives 2009-1 and 2009-19

36. Loan-To-Value Ratios CDA maximum LTV cannot exceed 100% or 103% if the upfront mortgage insurance premium is financed in the mortgage; a maximum CLTV is not specified for the Maryland Mortgage Program (MMP) For loans with an LTV of 80% or less, the maximum CLTV is 100%. Refer to your guarantor�s guidelines (i.e., FHA,VA or RHS)

37. Other Second Mortgage Products PERMITTED IF: Terms are acceptable and meet requirements of the guarantor Separate lien is recorded after the MMP DOT (no deed covenants permitted) Terms of repayment (if any) are incorporated into underwriting

38. Federal First-Time Homebuyer Tax Credit The Federal First-Time Homebuyer Tax Credit can be used by a borrower who�s home purchase is financed by tax-exempt mortgage revenue bonds The contract to purchase a principal residence must be signed by April 30, 2010 and closing must be on or before June 30, 2010 Maximum amount of the tax credit is the lesser of $8,000 or 10% of the purchase price for qualified first-time homebuyers

39. Federal First-Time Homebuyer Tax Credit (continued) Repeat homebuyers are now eligible for up to $6,500 in tax credits if they have owned and occupied a primary residence for a period of 5 consecutive years during the last 8 years

40. Recapture Tax Reimbursement CDA has removed the confusion and worry about recapture tax! Federal law provides for a possible recapture tax when some homeowners sell their home within the first 9 years after receiving a mortgage through CDA (see www.irs.ustreas.gov for information) CDA will reimburse any CDA homebuyer, who settled on their home on or after July 1, 2005, the amount of any recapture tax that the homebuyer pays in connection with the sale of their home

41. Ineligible Use of Loan Proceeds To enrich borrower Refinance existing mortgage Lot loans Construction or bridge loans Land installment contracts Wrap-around mortgage Facilitate Sale of Contract rights

42. Down Payment & Settlement Expense Loan Program 

43. DSELP $3,500 toward downpayment or closing costs for a limited time! 0% deferred loan Repayable in full upon sale or transfer, or when the first mortgage is paid off or refinanced DSELP loan term must equal term of the first mortgage DSELP loan required to be in 2nd lien position. Available only with a CDA loan

44. Partner Match Programs

45. Partner Match Programs House Keys 4 Employees (HK4E) with Smart Keys 4 Employees (SK4E) component Builder/Developer Incentive Program (BDIP) Community Partners Incentive Program (CPIP) These programs are only available with a CDA loan

46. House Keys For Employees(HK4E)

47. House Keys 4 Employees Workforce Housing Initiative Additional downpayment assistance through employer matching contributions An employer partnership initiative developed by DHCD that matches funds from employers to help their employees who want to buy a home

48. House Keys 4 Employees (continued) What is it? Provides additional downpayment assistance; can be used in addition to downpayment assistance through DSELP May only be used in conjunction with CDA mortgage loans Refer to CDA�s website for current list of participating employers

49. House Keys 4 Employees (continued) DHCD will match dollar-for-dollar up to $5,000 from a participating employer toward downpayment and closing costs The HK4E match from DHCD is a 0% deferred loan, repayable when the home is sold or transferred, or when the first mortgage is paid off or refinanced

50. House Keys 4 Employees (continued) Employer submits one page Employer Participation Agreement to enroll in the program Employee submits a HK4E Verification of Partner Contribution Form to their employer Employee presents the completed Verification of Partner Contribution form to their CDA lender Employee is responsible for ensuring the employer contribution is available at settlement

51. House Keys 4 Employees � State of Maryland Employees Only State of MD employees only: provide a copy of the borrower�s pay stub in lieu of signed HK4E Verification of Partnership Contribution form A State employee can receive $2,500 from the State of MD as the employer + $2,500 HK4E Program match for a total HK4E contribution of $5,000 Total combined funds for the State of MD employer�s partner contribution $2,500 + CDA match for HK4E $2,500 + eligible SK4E match $2,500 are reserved at $ 7500 Lender provides the funds at closing Employees of the Universities under the University of MD System are excluded from this program

52. House Keys 4 Employees (continued)

53. Smart Keys 4 Employees A �Smart Growth� enhancement to the House Keys 4 Employees (HK4E) Program that allows borrowers to receive additional matching funds if: Subject property is located in a Priority Funding Area Subject property is within 10 miles of borrower�s place of employment or within the boundaries of the local jurisdiction DHCD will double the amount of the normal HK4E match (up to a maximum of $10,000.00) for borrowers that meet this criteria

54. Smart Keys 4 Employees

55. Builder/Developers Incentive Program(BDIP)

56. Builder/Developer Incentive Program The Builder/Developer Incentive Program (BDIP) enables eligible homebuyers to receive supplemental downpayment and/or closing cost assistance IN ADDITION to the standard programs (DSELP) that are currently available through CDA

57. Builder/Developer Incentive Program (continued) The BDIP match from DHCD is a 0% deferred loan, repayable when the home is sold or transferred, or when the first mortgage is paid off or refinanced DHCD will match dollar-for-dollar up to $5,000 from a participating builder/developer toward downpayment and closing costs Refer to CDA�s website for current list of participating Builder�s/Developers

58. Community Partners Incentive Program(CPIP)

59. Community Partners Incentive Program The Community Partners Incentive Program (CPIP) enables eligible homebuyers to receive supplemental downpayment and/or closing cost assistance IN ADDITION to the standard programs (DSELP) that are currently available through CDA

60. Community Partners Incentive Program A community partner may be a foundation, non-profit organization or a local government interested in expanding workforce housing opportunities The Community Partners Incentive Program provides a DHCD dollar for dollar match up to $5,000 to the funds contributed by the participating community partner

61. Community Partners Incentive Program The (CPIP) match from DHCD is a 0% deferred loan, repayable when the home is sold or transferred, or when the first mortgage is paid off or refinanced DHCD will match dollar-for-dollar up to $5,000 from a participating community partner toward downpayment and closing costs Refer to CDA�s website for current list of participating Community Partners

62. BDIP AND CPIP Programs Both of the above programs work in the same fashion as the House Keys 4 Employees program Refer to the HK4E program description for details on signing up partners, reserving funds, etc.

63. Maryland Mortgage Program Combining Assistance Programs* House Keys for Employees (HK4E), Builder/Developer (BDIP) and the Community Partner (CPIP) programs can be utilized either as stand alone forms of assistance, OR Partners Match Programs can be combined with DSELP programs Combined total matching funds from DHCD (HK4E, BDIP, CPIP) may not exceed $5,000 unless using House Keys 4 Employees with Smart Keys 4 Employees

64. HopeHomeowners Preserving Equity

65. HOPE Hotline 1-877-462-7555 The HOPE Hotline is available 24 hours daily for consumers who have questions regarding mortgage delinquency, foreclosure and assistance available from the State of Maryland Through December, 2009 over 31,000 consumers have called the Hotline

66. Website www.mdhope.org Help for Homeowners Help for Renters Housing Counselors Resources for Maryland Families Avoiding Fraud Upcoming Events & Workshops Consumer Information Kit

67. How Does It All Work?

70. Lenders Only Tab

71. Lender-On-LineYour Reservation & Pipeline Management Tool

72. Reserve Your Loan Now! LOAN RESERVATIONS LENDER ON LINE https://lol.dhcd.state.md.us Online Reservation System

73. Loan Reservations Make reservations for the first mortgage and DSELP/partner match programs Check the status of a loan received by CDA Get the latest updates on CDA rates & products Gain access to the CDA Lender�s Manual Download the most recent CDA forms & documents Check the status of submitted loan for conditions Pull reports: Open conditions reports Expired commitment reports Purchase Advice Report to include MMP & DSELP/Partner Match Programs

74. Loan Reservations (continued) Access/Password to LOL is given to the Lender Administrator for your company Funds are reserved for the first mortgage, DSELP and/or HK4E/BDIP/CPIP by using Lender-On-Line (LOL) system All fields are required to be completed with and without an asterisk before clicking the � submit� button Do not reserve funds for your borrower until the contract has been fully ratified; signed by all parties Short Sale- Buyer and seller have signed the contract and lender approval has been obtained Foreclosed properties- Bank required to sign the contact to be considered a valid fully ratified contract CDA reserves the right to cancel any reservation or deny the purchase of a loan that does not have a ratified contract prior to reservation

75. Loan Reservations (continued) Existing homes- reservations expire 60 days from the date of reservation New Construction- reservations expire 120 days from the date of reservation (Refer to new Directive 2010-1/1/15/10) Loans must be approved for purchase by CDA on or before the expiration date to avoid cancellation/non-purchase In order for lenders to earn their 2% highest fee, loans must be approved on or before reservation expiration date expires Lenders are not allowed to charge borrowers an extension fee

76. Base Realignment Program (BRAC) BRAC related information is now needed at time of loan reservation Ask at time of application if borrower or immediate family member is part of the Base Realignment Program When registering the loan in LOL, indicate this information under �Project Name�

77. LENDER ON-LINE https://lol.dhcd.state.md.us

78. Select a Mortgage Program

79. Select a Second Mortgage Program(optional)

80. DSELP/PARTNER MATCH PROGRAM(S) RESERVATION COMBINATION

87. Lender Pipeline Reports Condition/Exceptions

88. Conditions / Exceptions Report

89. Select Stage(s) to Include in Report

90. Detailed Pipeline Report

91. Commitment Expiration Report

92. Commitment Expiration Report

93. All Loans In Lender Pipeline (Not Yet Purchased) Report

94. Sample Pipeline Report

96. Purchase Report

97. Enter Report Criteria

98. Detailed Weekly Purchase Report

100. Attachment R - Reminders Fax only to dedicated fax # 410-729-3723 24 hour turnaround time (approval/denial) 4pm daily cut-off Rush faxes cannot always be accommodated Lenders are required to notify CDA immediately if the reservation is cancelled (borrower not going forward with a CDA loan) Send all required supporting documentation with the Attachment R Approval/denials are emailed-keep the approval email with the Attachment R/supporting documentation and place in the file sent to CDA

101. Attachment R- Substituting Property Provide release from the original ratified contract Provide a copy of the new legible ratified contract Provide documentation for reason of substitution beyond the borrower�s control Ex. failed home inspection Unacceptable reasons for substitution: Lender reserved the reservation prior to ratified contract Lender thought the verbal contract was written Lender thought the bank would approve the Short Sale/Foreclosure Borrower wants to buy a different property

104. Pre-Closing ComplianceFile Submission and Review

105. COMPLIANCE REVIEWS CDA Compliance Review Process: Lender submits Pre-Closing Compliance file for CDA�s review and approval prior to loan closing Lender submits Post-Closing Compliance file for review and approval in order for loan to be purchased by CDA

106. Pre-Closing Compliance FOR CURRENT FORMS AND DOCUMENTS GO TO: www.mmprogram.org: click on �Lenders Only� at the top of the home page, then choose �Attachments� and �Loan Documents�, https://lol.dhcd.state.md.us, after logging on with your User ID and Password, click on the �Program Documents� tab at the top of the home page

107. Pre-Closing Compliance (continued) Buyer�s Affidavit Supplemental Buyer�s Affidavit Notice to Buyers

108. Pre-Closing Compliance (continued) Attachment K � Pre-Closing Checklist Summit documents in order according to the checklist Attachment C � Lender Cert. of Completion- Housing Counselling Attachment D � Income Eligibility Worksheet Attachment F � Asset Test (if assets = 20% or more of purchase price) Attachment J � Affidavit in Lieu of Current Year�s Tax Return (if appl.) Attachment T- Certification of Pregnancy (if appl.) Attachment R- Lender Revisions & approval emails

109. Pre-Closing Compliance (continued)

110. DSELP/Partner Match Program Application and Affidavit 

113. Pre-Closing Compliance (continued) Lender takes borrower�s application, qualifies borrower(s) following insurer/guarantor and lender underwriting guidelines Lender determines borrower and property eligibility for the Program Lender reserves funds in Lender-on-Line

114. Pre-Closing Compliance (continued) Lender secures underwriter�s approval (automated or manual underwriting) Refer to Lender�s Manual for credit score requirements Lender secures insurer/guarantor approval Lender required to place Maryland CDA EIN# 526002033 on the FHA Underwriting Transmittal Summary (HUD-92900LT) for all FHA loans utilizing Maryland CDA secondary financing or grant programs Lender submits Pre-Closing Compliance file to CDA

115. Pre-Closing Compliance (continued) Pre-Closing Compliance Checklist (Attachment K) outlines the required documentation to be included in the file for CDA review Refer to CDA�s website for the most current form; as program guidelines change, applicable documentation updates are reflected in the Pre-Closing Compliance Checklist Lender must submit complete credit package with supporting documentation

116. Pre-Closing Compliance (continued) Files are reviewed in the order they are received in CDA�s office A �Pending� status in the �Reviewed Stage� will be listed in LOL while file is being reviewed An �Approval� or �Incomplete� status in the �Reviewed Stage� will be listed in LOL after the file review is complete

117. Pre-Closing Compliance (continued) Lenders are responsible for checking LOL for outstanding conditions Fax documentation to clear conditions to: 410-729-3722 24 hour turn time to clear conditions; cut-off time 4:00 p.m. Re-check to ensure all conditions submitted are cleared and no new conditions were added as a result of documentation submitted Questions on conditions email the underwriter or purchaser listed on the reservation

118. Pre-Closing Compliance (continued) Incomplete borrower(s) income documentation Incomplete/missing occupant (non-borrower) income documentation Incomplete Buyer�s/Seller�s Affidavit Unsigned tax returns or transcripts

119. Pre-Closing Compliance (continued) Full credit report not in the file Partner Match Verification forms missing from file FHA Underwriting Transmittal not signed and dated by Underwriter RESPA Disclosures FHA Disclosures

121. DSELP Commitments DSELP Closing Instructions & Commitment Letter are issued after CDA has approved the loan Documents are emailed to the contact listed on the Attachment K Borrower(s) to sign all required DSELP documents at closing Return to CDA in the post closing package

122. Closing

123. Closing Day Reminders Well/Septic: if noted unsatisfactory in appraisal or home inspection, a satisfactory certificate is required Termite Inspection: required if infestation is noted in appraisal or home inspection; a certificate is required and treatment if recommended. If resulting damage is structural, it must be repaired

124. Closing Day Reminders (continued) Survey (only if required by the title company) Hazard Insurance and Flood Insurance� a receipt on the insurance company�s letterhead stating the the first year�s hazard insurance premium was paid in full (dollar amount of premium must be stated in letter) is required for all loans regardless of the fact that the premium was paid outside of closing (a POC item) or paid at closing. (see Directive 2008-12 dated 6/6/08)

125. Closing Day Reminders (continued) Correct monthly mortgage insurance must be disclosed on all RESPA documents and signed by borrower Disclose correct monthly mortgage insurance payment in first payment letter Ground Rent is required to be included in the Principle, Interest, Taxes and Insurance payment (PITI). This should also be disclosed on all RESPA Documents and signed by the borrower

126. Closing Day Reminders (continued) Title Commitment: Tenants In Common is not a permitted form of ownership ALTA 06 Residential Loan Policy revised 06/17/07 Title Binder � ALTA short form preferred Title Binder-insured parties appear as �(lender and insurer (if applicable)) and/or their successors and assigns, as their interests may appear� Title Binder-Lender coverage � loan amount or greater

127. Closing Day Reminders (continued) Title Binder-Effective date � on or before settlement date and not expired (Provide GAP- if binder�s effective date is over 60 days old) Title Binder-Names & vesting the same as Warranty Deed, DOT & DSELP/Partner Match DOT Title Binder-Leasehold or fee simple Title Binder-Include if not using Short Form- Endorsement- ALTA 4 Condo or ALTA 5 PUD

128. Settlement Document Guidelines Notice to Borrower with Information for Calculating Potential Recapture Tax this form changes annually - use current form Buyer�s Confirming Affidavit Seller�s Confirming Affidavit (must be signed and dated on or after closing by Seller; POA not acceptable unless seller is mentally/physically incapacitated OR holds active military POA and pre-approved by CDA) All RESPA Closing Disclosures and mandatory insurer forms

129. Settlement Document Guidelines (continued) If the borrower is receiving a DSELP, HK4E, SK4E, BDIP or CPIP loan: DSELP/Partner Match Deed of Trust (certified true copy - original document to be recorded) DSELP/Partner Match Deed of Trust Note DSELP/Partner Match Commitment Letter � This document is not on CDA�s website. The commitment letter is emailed to the lender upon loan approval and is signed by the borrower(s) at closing Any excess funds must be applied as a principal curtailment to the first mortgage loan, not the DSELP loan

130. Settlement Document Guidelines (continued) When a borrower is receiving funds from both DSELP and either HK4E, SK4E, BDIP, CPIP, one DSELP/Partner Match Deed of Trust, Note, and Commitment Letter are signed for the combined loan amount If a borrower is receiving only a HK4E, BDIP or CPIP loan, the borrower will sign the DSELP/Partner Match Deed of Trust, Note, and Commitment Letter, since the HK4E, SK4E, BDIP and CPIP programs utilize the DSELP/Partner Match closing documents

131. DSELP/Partner Match Closing Instructions

132. DSELP/Partner Match Commitment Letter

133. DSELP/Partner Match Commitment Letter (continued)

134. DSELP/Partner Match Note

135. DSELP/Partnership Match Note (continued)

136. DSELP/Partnership Match Deed of Trust

141. HUD-1 EXAMPLES (continues) Example 5: HK4E Only (Non-State of MD partner) Line 209 CDA- HK4E $3,000 Line 210 Employer match�Balt. City Public School $3,000 Example 6: DSELP/HK4E/SK4E (State of MD Government Employer) Line 209 CDA-DSELP/HK4E/SK4E/ST OF MD $11,000 (D $3,500 + H $2,500 + S $2,500 + ST $2,500 = $11,000) Example 7: HK4E (State of MD Government Employer) Line 209 CDA HK4E/ST of MD $5,000 (H $2,500 + ST $2,500 = $5,000)

143. If you are a MERS member MIN Information Sheet is required as proof MIN # is registered with MERS MERS as Original Mortgagee (MOM) Security Instrument is required The Mortgage Identification Number (MIN) is required on the 1st page of the Security Instrument(s) prior to closing the loan The approved MOM language is to be used Correct MIN, Mortgagee, and SIS Number If you are not a MERS member and would like to become a member: Information about MERS membership can be obtained from the MERS website: www.mersinc.org or by contacting a MERS Regional Director at (800) 646-MERS (6377)

144. Post-Closing Compliance

145. Post-Closing Compliance Post-Closing Compliance Checklist (Attachment L) states the required documentation to be included in the file for CDA review Refer to website for most current form: as program guidelines change, applicable documentation updates are reflected in the Post-Closing Compliance Checklist

146. Post-Closing Compliance (Continued) Purchase file must be submitted prior to commitment expiration date or loan may not be purchased Original Note must be included in purchase file endorsed to: Maryland Community Development Administration (on the front or back of the note)

147. Post Closing Compliance (continued) MI Premiums � a screen print from the Insurer/Guarantor�s website must be provided indicating that the status is active and required premiums have been paid (see Directive 2008-16, dated 6/13/08) Initial Escrow Disclosure Statement and First Payment Letter signed by the borrower (initials not allowed) All notary sections are completed $ 81 Tax Service Fee listed on HUD-1 or a letter on lender letter head stating you will be forwarding the fee to Bogman

148. Post-Closing Compliance (continued) HUD-1: DSELP and/or DSELP/HK4E, SK4E BDIP or CPIP named as a loan and not a grant. The dollar amount must match the dollar amount on DSELP/Partner Match commitment letter DSELP/Partner Match Note to have same maturity date as MMP First Mortgage Excess funds are applied as a principal curtailment to the first mortgage loan

149. Post-Closing Compliance (continued) Non-borrowing occupant taking title: Signs first and second mortgage DOT and Tax-Exempt Rider Title Commitment/Final Policy shows title vested in all names Signs Buyer�s Confirming Affidavit

150. Post-Closing Compliance (continued) Lender will receive maximum compensation if the file is approved for purchase within 60 days for existing home loans, or 120 days for new construction

151. Post-Closing Compliance (continued)

152. Post-Closing Compliance (continued)

153. CDA Purchase Reminders CDA purchases loans once a week on Wednesday Friday cut-off for loans to be purchased the following week Lenders pull their purchase reports for the Wednesday purchase date for MMP & DSELP loans MMP funds are wired on Wednesday DSELP funds are electronically transferred (EFT) within 7 business days of the purchase date

155. Bogman, Inc. Contacts Communicate with the servicer via email Loan Servicing Manager Mary Prator mprator@bogmaninc.com 40-482-1056 Loan Administration Gail Neff-Tebeleff gail@bogmaninc.com 240-482-1061 New Loan Setup David Wolf david@bogmaninc.com 240-482-1076 New Loan Administrator Leah Nagel lnagel@bogmaninc.com 240-482-1084 New Loan Deepa Baniya dbaniya@bogmaninc.com 240-482-2284 Mortgage Insurance Admin Brian Jenkins brian@bogmaninc.com 240-482-1051 Hazard Insurance MaryAnn Clifford mclifford@bogmaninc.com 240-482-1053 Taxes Steve Wolf swolf@bogmaninc.com 240-482-1077 Foreclosure Specialist Nina Payne npayne@bogmaninc.com 240-482-1105 Default Manager Sonja Veney sveney@bogmaninc.com 240-482-1064 Bogman Toll Free Customer Number 1-877-482-1051 Bogman Fax Number 301-622-0058

156. Loan Servicing Loan Transfer After Purchase (Refer to guidelines in Lender�s Manual) Loan files required to be submitted to Bogman within 16 days after purchase Bogman, Inc. Attention: David Wolf 12301 Old Columbia Pike, Suite 200 Silver Spring, MD 20904-1656 Loans are to be fully serviced by Lender until loan is transferred to CDA�s servicer, Bogman,Inc. Make sure mortgage insurance and hazard insurance are in effect at time of transfer; if the proof of insurance is not provided, CDA will require lender to repurchase the loan Transaction history to date of loan transfer to Bogman must be included in the submission file

157. Loan Servicing (Continued) FHA: An individual HUD form 92080 must be completed. Also, a copy of the screen-print from the FHA Connection showing Mortgage Record Change complete. Bogman�s HUD MTG ID# is 1947209992 CDA Holder # 1943509993 Loan must be transferred within 48 hours of receiving the purchase advice. The lender must list: Bogman, Inc. as the Sub-servicer. Their MERS ID is 1004833 Maryland Community Development Administration as the Servicer and Investor. MERS ID is 1008248 All items on the Bogman Monthly Issues Report are required to be cleared within 1 week to avoid the possibility of a loan having to be repurchased by the Lender

158. Loan Transfer Highlights Refer to Attachment P for complete instructions on proper loan transfer to servicer; it includes important information on loan transfer to Bogman, Inc. Items of importance in Attachment P are servicing file set up, monetary items, Tax service fee of $81.00 (payable to Bogman) is submitted with the package, escrows, sample good-bye letters, sample hazard insurance letters and the Bogman loan information sheet

160. Final Documents Original Deed of Trust, Title Policy, FHA Mortgage Insurance Certification, VA Loan Guaranty Certificate, or RHS Loan Note Guaranty: if not available at time of loan purchase, must be submitted to CDA within 180 days after loan purchase or loan will be subject to repurchase by the lender Final documents should be submitted to CDA after lender receives purchase advice indicating loan has been purchased

161. Final Documents (continued) Send all final documents at the same time Original Recorded 1st Mortgage Deed of Trust and DSELP Deed of Trust (court certified copy acceptable only if original lost) All MERS loan must have the following three requirements to be a satisfactory MOM loans assigned to MERS: Legal title to the mortgage lien must be vested in Mortgage Electronic Registration Systems, Inc. The 18-digit mortgage identification number (MIN), as well at the SIS telephone number on all security documents. Notices provisions in the mortgage, deed of trust and other security instruments should be modified to add Mortgage Electronic Registration Systems, Inc. Tax Exempt Financing Rider recorded with 1st Mortgage DOT only All Riders are included with the recorded Final DOT

162. Final Documents (continued) IF INCORRECT FORM USED, DOT INCOMPLETE, OR RIDERS NOT ATTACHED WHEN DOT WAS RECORDED, CONTACT CDA IMMEDIATELY. DO NOT CHANGE/CORRECT THE DOT WITHOUT CDA INSTRUCTIONS Title Policy sent with all applicable endorsements (ALT 4 condo, ATL 5 PUD, ALT 8.1 Environmental.) Short form is preferred Endorsements are original and executed by authorized signatories Incorrect final documents are returned to the lender at the lender�s expense from CDA. Issues must be corrected before sending back to CDA

163. Website