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>> GOOD MORNING OR GOOD AFTERNOON, DEPENDING UPON THE
TIME ZONE YOU'RE IN, I'M TOM WRIGHT, OFFICER OF LOAN
GUARANTEE AND I WELCOME YOU TO THIS WEBINAR. I'VE GOT A
COUPLE OF OPENING COMMENTS BEFORE WE MOVE INTO STAFF
INTRODUCTIONS. FIRST THING, I KNOW A LOT OF
YOU HAVE BEEN CONCERNED WITH OVER THE COURSE OF THE LAST
YEAR, WITH THE CLOSING OF THE OFFICE IN THE MONTH OF MARCH, 2
IS WHAT ARE WE DOING, WHAT ACTION ARE WE TAKING, TO
CORRECT THIS. WELL, WE HAD SENT OUT A
LEADER LETTER INTRODUCING AN INCREASE IN THE LOAN
GUARANTEE FEE. WE'RE ASKING FOR A COMMENT
FROM THE LOAN LEADERS, THEY HAVE 30 DAYS TO COME BACK
WITH THIS. WE'RE HOPING AND ANTICIPATE
WE WILL IMPLEMENT AN INCREASE IN THE FEE IN THE FIRST
QUARTER OF FY2014. MANY OF YOU HAVE ALSO ASKED,
INQUIRED, ABOUT LOAN LIMITS. YES, WE INTRODUCED OUR OWN
LOAN LIMITS IN FY '13. IN LATE NOVEMBER, EARLY
DECEMBER, WE ANTICIPATE COMING OUT WITH THE NEW RATES
FOR THIS YEAR. THE RATES ARE BASED ON CENSUS
DATA OF SALES THAT HAVE TAKEN PLACE IN THE FISCAL YEAR.
SO THIS DATA WILL DETERMINE IT.
WE ARE NOT TIED TO FHA. PLEASE, KEEP THAT IN MIND.
>> THE BUDGET QUESTION IS SOMETHING THAT'S BIG, AND IT
MATTERS TO ALL OF US. WE WILL NOT HAVE AN ACTUAL
BUDGET UNTIL WE SEE CONGRESS PASS EITHER A BUDGET ITSELF
OR A C.R. WE ANTICIPATE THE FUNDING
WILL BE CONSISTENT WITH WHAT WE'VE SEEN OVER THE LAST FEW
YEARS, WHICH MEANS THAT WE SHOULD HAVE PLENTY OF FUNDING
FOR FY '14 AND WE FEEL VERY GOOD ABOUT WHAT WE'RE SEEING
AT THIS POINT. SOMETHING NEW WILL BE
INTRODUCED IN OCTOBER OF 2014, AND IT'S RELATED TO THE
TRAINING OF STAFF. AFTER THE 15TH OF OCTOBER, WE 3
WILL ASK THE D.G. LENDERS TO DO THEIR OWN TRAINING OF
STAFF AND ANY CORRESPONDENCE THAT YOU BRING ON AFTER THAT
DATE. THIS IS SOMETHING THAT WE
RECOGNIZE THE PROBLEM THAT EXISTS BY HAVING CERTIFICATES
OUT THERE AND NOT OFFERING NEW TRAINING.
THEREFORE, THERE WILL NO LONGER BE CERTIFICATES
OFFERED. AND THIS IS A BIG CHANGE AND
A DEPARTURE FROM PRIOR PRACTICE BUT IT'S SOMETHING
WE THINK WILL BE BENEFICIAL AND MAKE IT MUCH EASIER FOR
LENDERS COMING INTO THE PROGRAM.
NOW, IF I MAY, I'D LIKE TO DO STAFF INTRODUCTION AND I WILL
BEGIN WITH CHRISTA JOHNSON. >> HELLO, I'M CHRISTA
JOHNSON. I AM A LOAN GUARANTEE
SPECIALIST. I CONCENTRATE MY EFFORTS ON
UNDERWRITING LOANS THAT ARE SENT IN TO HUD, ALSO, WORKING
ON POLICY AND ENDORSEMENTS OF YOUR CLOSED LOANS.
>> GOOD MORNING, GOOD AFTERNOON, MY NAME IS SCOTT
LIBERTY, ON THE ORIGINATION SIDE, I ASSIST WITH THE
ISSUANCE OF CASES AND DIRECT FIRM GUARANTEE COMMITMENTS, I
PROCESS THE LOAN GUARANTEE FEES.
ON THE SERVICING SIDE I AM RESPONSIBLE FOR ASSISTING
WITH THE RECEIPT OF SALES PROCEEDS AND CONFIRMATION OF
CLAIMS PAYMENTS. >> GOOD AFTERNOON, MY NAME IS
THELMA BALEE, I AM A LOAN GUARANTEE SPECIALIST, I
MANAGE SERVICES, I WORK WITH LOSS MITIGATION WITH ALL OF 4
OUR LENDERS, I ALSO WORK WITH THE TRIBAL HOUSING
AUTHORITIES, I WORK WITH THE RESALES OF THOSE HOMES THAT
END UP BEING ASSIGNED BACK TO THE OFFICE OF LOAN GUARANTEE,
I WORK WITH THE DEPARTMENT OF JUSTICE, SUBMITTING REPORTS
OR CLAIMS TO THEM THAT ACTUALLY NEED TO BE
FORECLOSED ON, AND THAT WOULD BE THE TRIBAL TRUST LAND
PROPERTIES, BECAUSE OTHERWISE, THE SERVICERS ARE
RESPONSIBLE FOR THE FEE SAMPLE ON PROPERTIES AND THE
ACTUAL FORECLOSURES. I ALSO AM RESPONSIBLE FOR
GATHERING THE MONTHLY REPORTING THAT COMES IN ON A
CONSISTENT BASIS ON THE DELINQUENCIES TO ENSURE THAT
WE ARE PUTTING FORTH OUR BEST EFFORTS TO TRY AND MITIGATE
THOSE PROCESSES, AND I WORK WITH THE SECTION 184-A
PROGRAM WITH DHHL IN HAWAII. >> GOOD AFTERNOON, MY NAME IS
SEAN PATTON, I'M ASSISTING SCOTT AND DELMA WITH LOSS
MITIGATION. >> MY NAME IS BRIAN CLARKSON,
I DEAL WITH CLAIMS, PAYMENTS AND REO DISPOSITIONS OF
PROPERTIES. >> HELLO MY NAME IS BOB LAMP,
I MANAGE THE TITLE SIX PROGRAM.
TITLE SIX IS BASICALLY A 95 PERCENT LOAN GUARANTEE TO
TRIBES OR THEIR DESIGNATED HOUSING AUTHORITIES FOR
DEVELOPMENT. THE PROGRAM WORKS VERY WELL
AND TIES IN VERY WELL WITH SECTION 184.
>> MY NAME IS MATT DOUGLAS, I'M A LOAN GUARANTEE
SPECIALIST AND I PRIMARILY WORK ON POLICY AND 5
CORRESPONDENCE. >> GOOD MORNING, I'M YVONNE
JOHNSON FROM THE ATLANTA, GEORGIA OFFICE.
I, TOO, AM A LOAN GUARANTEE SPECIALIST AND I UNDERWRITE
THE LOANS YOU SUBMIT TO HUD AS ONE OF THE HUD
UNDERWRITERS. I WORK WITH SALARY WRITE IN
TRAINING THE UNDERWRITERS AND APPROVING THE TEST CASES, I
ALSO WORK DIRECTLY WITH MANY OF YOU IN ISSUING THE LOAN
GUARANTEE CERTIFICATES FOR YOUR REQUEST FOR ENDORSEMENT
FILES. >> THANKS YVONNE.
GOOD MORNING OR GOOD AFTERNOON, I'M VALERIE
WRIGHT, LOAN GUARANTEE SPECIALIST, WORKING OUT OF
PHILADELPHIA OFFICE. I HANDLE WORKING CLOSELY WITH
YVONNE TO TEST CASE PROCESSES FOR NEW D.G. UNDERWRITERS AND
THOSE LOOKING FOR CERTIFICATION, IN ADDITION TO
ENDORSING LOANS ONCE THEY'VE CLOSED.
ALSO INSTRUMENTAL IN WORKING ON POLICY PROCEDURE FOR THE
LENDERS, AS WELL AS IN-OFFICE PROCEDURES.
>> HELLO EVERYBODY, I'M DEANNA LUCERO OUT OF THE
DENVER, COLORADO OFFICE. I TRAIN, POLICY DEVELOPMENT,
UNDERWRITE ENDORSEMENT AND LOOKING FORWARD TO
INTRODUCING TO YOU OUR FIRST WEBINAR.
>> HELLO, I'M ANDRIKA WAGSTAFF AND I ASSIST THE
OFFICE ON MANY DIFFERENT FUNCTIONS.
HOWEVER, MY PRIMARY RESPONSIBILITIES ARE
ENDORSING TRIBAL TRUST LOANS AND ENDORSEMENTS FROM THE 6
VENDORS, ALL THE VENDORS. >>
>> HELLO EVERYBODY, WE'RE BACK.
HOPEFULLY YOU CAN SEE US. WE CANNOT SEE YOU.
FIRST AND FOREMOST, I WANT TO THANK YOU ALL FOR SIGNING UP
AND PARTICIPATING, OR BEING WILLING TO PARTICIPATE TODAY.
JUST SO YOU KNOW WE HAVE 310 FOLKS THAT SIGNED IN, SO THAT
TELLS US YOU ARE STILL ENAMORED WITH OUR PROGRAM AND
WE APPRECIATE ALL DO YOU. THIS IS OUR FIRST WEBINAR AND
FIRST GO AT TRAINING -- NOT TRAINING BUT PROVIDING
INFORMATION TO YOU ALL VIA THIS METHOD.
AT THE CONCLUSION OF THIS EVENT WE ARE GOING TO ASK YOU
TO EVALUATE IT. WE WANT TO KNOW IF YOU LIKE
THIS STYLE. AS YOU KNOW RECENTLY WE'VE
BEEN HIT WITH SOME BUDGET CONSTRAINTS AND WE DON'T HAVE
THE ABILITY TO TRAIN LIKE WE USED TO DO.
TRUST ME WE ENJOYED IT, WE APPRECIATED YOUR ATTENDANCE
BUT THIS MAY BE THE WAVE OF THE FUTURE.
BEFORE I GET STARTED WITH DETAILS I WANT TO DO A LITTLE
HOUSE KEEPING. FIRST AND FOREMOST, WE CAN'T
SEE YOU, YOU CAN SEE US, SO YOU CAN RAISE YOUR HAND IF
YOU WANT, HOWEVER, I WILL NOT KNOW YOU ARE ASKING A
QUESTION. SO HOW DO YOU ASK A QUESTION,
YOU TYPE INTO THE 184 WEBINAR AT HUD.GOV, WHICH IS EXACTLY
HOW YOU SIGNED UP FOR THE SESSION.
PLEASE TYPE YOUR QUESTION, PLEASE BE AS BRIEF AS 7
POSSIBLE BUT DIRECTLY TO THE POINT.
IF AT ALL POSSIBLE, DON'T ASK QUESTIONS SPECIFIC TO A LOAN,
ASK A GENERAL PROGRAM QUESTION, OKAY?
THROUGHOUT THIS SESSION, WE'RE GOING TO ATTEMPT TO
ANSWER YOUR QUESTIONS. WHAT WILL HAPPEN IS THE
QUESTIONS WILL COME IN, CHRISTA JOHNSON WILL READ THE
QUESTIONS TO US, AND THEY WILL BE ANSWERED ACCORDINGLY.
WHAT QUESTIONS WE'RE NOT ABLE TO ANSWER AND OR ADDRESS WE
WILL PROVIDE AT A LATER DATE. WE WILL PROVIDE THE RESPONSE
TO ALL, EVERYBODY WHO SIGNED UP FOR THIS SESSION, OKAY?
>>> WHEN WE SET UP THE SESSION WE ALLOCATED FOUR
HOURS BECAUSE THAT'S WHAT THE BUILDING ALLOWED US TO DO.
WE'RE NOT SURE WE'LL TAKE THE ENTIRE FOUR HOURS, BUT WE
WILL DEFINITELY NOT EXCEED IT.
OKAY? SO AS WE PROGRESS, YOU HAVE
THE POWER POINT THAT WAS SENT TO YOU, WE WILL ADDRESS THE
SLIDES ON THE POWER POINT. AT THE CONCLUSION OF THIS
EVENT, EVERY TOOL OR REFERENCE THAT WE WILL
DISCUSS WILL BE PROVIDED TO YOU IN A ZIP DRIVE AND ALSO
BE AVAILABLE ON OUR WEBSITE. OKAY?
>>> WE WILL TAKE A BREAK. SO THROUGHOUT THE SESSION, WE
WILL TAKE A BREAK, A SIGN WILL COME UP SAYING WE'RE ON
BREAK AND ALLOW YOU 2-5 MINUTES SO THAT WE CAN SWITCH
SPEAKERS, SWITCH TOPICS, THEN MOVE FORWARD.
OKAY? >>> I WANTED TO SAY SOMETHING 8
THAT I -- HISTORICALLY, MANY OF YOU KNOW ME, I'VE BEEN
WITH THE PROGRAM NOW FOR 16, 17 YEARS, AND OFTEN TIMES,
PEOPLE SAY WELL, DEANNA SAID. DEANNA SAID.
AND THEN I WOULD GO ON TO SAY PLEASE PUT IT IN WRITING,
RIGHT? DEANNA DID AN E-MAIL.
TODAY YOU CAN PROBABLY SAY DEANNA SAID, BECAUSE THIS IS
BEING RECORDED, SO -- SO THERE YOU GO.
>> NOW, NOW TO INTRODUCTIONS. WHAT TO EXPECT.
WHAT TO EXPECT. WE'RE GOING TO GO OVER
PROGRAM UPDATES. WE ARE GOING TO TRY TO
ADDRESS ISSUES OR ITEMS THAT FREQUENTLY COME UP THAT YOU
ALL DON'T REALIZE YOU INDIVIDUALLY ARE ASKING, BUT
WE GET HIT OR REQUESTED OF THE SAME QUESTION MULTIPLE
TIMES. WE'RE GOING TO TRY TO ADDRESS
THAT TODAY. THE REASON 46 US ARE SITTING
AT THIS TABLE, ALL FOUR OF US WILL PRESENT TO YOU TODAY, SO
YOU WILL SEE THAT WE WILL BE INTERACTING AND YOU'LL JUST
GET SOME ADVICE FROM DIFFERENT STAFF MEMBERS.
OKAY? >>> AS I SAID EARLIER, THIS
IS PROBABLY GOING TO BE OUR FUTURE FOR DELIVERY.
DELIVERY OF PROGRAM UPDATES. COMING SOON, WHAT WE'RE
HOPING TO DO IS ANOTHER WEBINAR THAT WILL TALK
SPECIFICALLY ABOUT UNDERWRITING UPDATES.
WE'RE GOING TO ADDRESS -- TOM ALLUDED THAT IN OCTOBER -- HE
SAID OCTOBER 2014 BUT WHAT HE MEANT WAS FISCAL YEAR 2014, 9
WHICH COMMENCES IN OCTOBER. SO IN OCTOBER, WE ARE
PROBABLY GOING TO HAVE SOME OTHER UPDATES.
WE'RE GOING TO ATTEMPT TO APPROACH THEM VIA A WEBINAR.
THE OTHER WEBINAR THAT WE ARE DISCUSSING, WE'RE GOING TO
PUT SOME MATERIALS TOGETHER, IS FOR CONSTRUCTION.
AS WE ALL KNOW, THERE ARE THREE DIFFERENT WAYS TO
APPROACH CONSTRUCTION ON THE 184.
ONE IS SINGLE CLOSED CONSTRUCTION, WHICH IS UNIQUE
TO OUR PROGRAM. SECONDLY WILL BE A HOME THAT
HAS STARTED CONSTRUCTION AND NOW YOU'RE ASKING FOR US TO
BE THE TAKEOUT. AND THIRDLY WILL BE A NEW
HOME THAT WAS CONSTRUCTED LESS THAN A YEAR AGO.
SO WE'RE HOPING TO DO A WEBINAR SPECIFICALLY ON HOW
TO ADDRESS THOSE. OKAY?
AND THIRD AND DEFINITELY NOT LEAST, OR LAST, WILL BE A
WEBINAR SPECIFICALLY ON THE BUREAU OF INDIAN AFFAIRS AND
CHRISTA IS OUR TFR SPECIALIST, SHE DEALS WITH
THE BIA OFFICE AND BIA HEADQUARTERS, SO IDEALLY
ANDRIKA WOULD LIKE TO DO A WEBINAR AND ADDRESS THE TITLE
STATUS REPORT, BECAUSE AS WE ALL KNOW THE PRIMARY FOCUS OF
THE 184 WAS TO BRING MORTGAGE CAPITAL TO INDIAN COMMUNITIES
AND BY DEFINITION OUR PRIMARY FOCUS, ON RESERVATION, WE
WANT TO BRING CAPITAL TO UNDERSERVED AREAS.
SO WHEN DEALING WITH TRIBAL TRUST OR ALLOTTED LANDS THERE
ARE DIFFERENT THINGS TO CONSIDER, WHETHER IT'S THE 10
TITLE STATUS REPORT, THE LAND DEVELOPMENT, SEPTIC, WATER,
ET CETERA. SO AGAIN, WE'D LIKE TO HAVE A
SESSION JUST TO ADDRESS THOSE ISSUES.
THAT'S ABOUT IT. INTRODUCTIONS?
OKAY. LAST BUT NOT LEAST, I THINK I
STATED EARLIER, AT THE END OF THIS SESSION WE'RE GOING TO
ASK TO COMPLETE AN EVALUATION.
THE PURPOSE IS, ONE, TELL US, DID YOU LIKE THIS FORM OF
TRAINING. I KEEP SAYING TRAINING AND
I'M SORRY, EVERYBODY. I CAN'T SAY TRAINING.
THIS FORM OF PRESENTATION. DID YOU ENJOY IT, DID YOU
APPRECIATE IT, DID YOU FIND IT A GOOD USE OF YOUR TIME.
WHEN WE CONCLUDE AND PROVIDE YOU ALL THE MATERIALS, WERE
YOU ABLE TO ACCESS THEM. AT A LATER DATE, ARE YOU ABLE
TO WATCH THIS BECAUSE IT'S SUPPOSED TO BE RECORDED AND
RESERVED, SO WE'LL ASK YOU TO LET US KNOW THAT VIA THE
SERVICE-EVALUATION. OKAY?
TOM INTRODUCED THE STAFF. IN ADDITION TO THE
INTRODUCTION, WE HAVE UPDATED OUR STAFF DIRECTORY.
THE STAFF DIRECTORY WILL IDENTIFY, OF COURSE,
EVERYBODY'S NAME, THEIR JOB TITLE, LOCATION, THEIR
ADDRESS, PHONE NUMBER, ET CETERA.
THAT, AGAIN, WILL BE PROVIDED TO YOU AT THE END OF THE
PRESENTATION. OKAY?
THE SLIDE THAT YOU ARE LOOKING AT NOW ON THE POWER 11
POINT BASICALLY SAYS WHAT DO WE HAVE FOR 2014.
THE PURPOSE OF THIS SLIDE IS TO GIVE YOU A REASSURANCE OR
A COMFORT THAT WE ARE NOT SHUTTING DOWN LIKE WE DID
LAST YEAR, THAT, IN FACT, WE WILL BE FULLY OPERATIONAL
STARTING -- WELL, WE'RE OPERATIONAL NOW, BUT AS OF
OCTOBER 1, WE WILL BE RECEIVING 5.25 MILLION IN
LOAN GUARANTEE AUTHORITY. IN ADDITION TO THAT FUNDING,
WE HAVE OUR CARRY OVER. THOSE FUNDS, WE'RE STILL
TRYING TO DETERMINE WHAT THE ACTUAL CARRY OVER IS BUT WE
DO KNOW IN FACT WE WILL HAVE A CARRY OVER.
THE NUMBERS THAT YOU SEE BELOW THAT ARE BASICALLY WHAT
WE HAVE ENDORSED THROUGH AUGUST 28TH OF 2013, SO
OBVIOUSLY IT DOES NOT INCLUDE SEPTEMBER NUMBERS.
AGAIN, LEADING THE WAY FOR OUR PROGRAM ARE FEE SIMPLE
TRANSACTIONS. THANK YOU TO ALASKA AND
OKLAHOMA. THOSE ARE THE TWO STATES WE
DO THE MOST VOLUME SO YOU CAN SEE BY THE NUMBER OF LOANS WE
HAVE ENDORSED ON FEE SIMPLE. THE NUMBERS OF LOANS WE'VE
ENDORSED ON ALLOTTED AND TRIBAL TRUSTS.
ALLOTTED IS EXTREMELY LOW AND FOR THAT, WE ARE
DISAPPOINTED. AGAIN, IDEALLY WE'D LIKE TO
DO MORE LENDING ON THE RESERVATION AND HELP
INDIVIDUALS WHO OWN THEIR OWN LAND.
I.E., ALLOTTED LAND. WE ARE WORKING TOGETHER AS A
TEAM TO MAKE SURE THAT WE ARE WORKING DIRECTLY WITH THE 12
BUREAU OF INDIAN AFFAIRS, AND OTHER PARTNERS, SO IN FACT WE
CAN DO MORE LENDING ON THE RESERVATION.
NEXT, THIS IS JUST A CUMULATIVE NUMBER AND AGAIN,
THE PURPOSE OF THIS IS TO SHOW YOU WHAT WE'VE DONE
SINCE WE STARTED. THIS PROGRAM STARTED IN
FEBRUARY OF 1997, AND IT TRULY WAS A TRICKLE EFFECT.
THE FIRST COUPLE OF YEARS, WE WERE DOING FIVE, 10, 20, I
THINK WE WOULD CONCLUDE WITH MAYBE 100, 200 LOANS IN ANY
GIVEN YEAR. NOW, WE OBVIOUSLY ARE
EXCEEDING THOSE NUMBERS AND WE ARE AT WHAT I WOULD SAY IS
FULL CAPACITY, RIGHT? THIS SHOWS YOU THE NUMBERS OF
LOAN WE'VE DONE CUMULATIVE ON FEE, ALLOTTED AND TRIBAL
TRUST, OKAY? AGAIN, I'D LIKE TO ADDRESS
THE NUMBERS ON TRIBAL TRUST. I WOULD HOPE TO SEE HIGHER
NUMBERS. WE DO APPRECIATE SEEING
THOSE. AGAIN, THE OBJECTIVE IS WE'RE
TRYING TO CREATE A MARKET ON THE RESERVATION, CORRECT?
AS YOU ALL KNOW, WE TAKE AN APPRAISAL ON COST APPROACH
AND OR MARKET, BUT IDEALLY SOMEDAY WE WOULD BE LIKE TO
DO ALL THE APPROACHES BY MARKET, MEANING WE HAVE A
FULL AND VIABLE MARKET ON THE RESERVATION.
>> OUR OPERATING AREA. FOR THOSE OF YOU THAT HAVE
DONE BUSINESS WITH US, YOU KNOW THAT WE HAVE A DEFINED
INDIAN OPERATING AREA. LET ME REITERATE, THERE WILL
BE NO CHANGE FOR 2014. THE NUMBERS THAT ARE -- 13
EXCUSE ME, THE STATES IN GOLD OR YELLOW, DEPENDING UPON HOW
YOU SEE COLOR, MEANS THE ENTIRE STATE IS AN INDIAN
OPERATING AREA, SO PURPOSES OF THE SECTION 184 LOAN
PROGRAM, YOU AS A ENDER CAN OFFER A LOAN ON OR OFF THE
RESERVATION ANYWHERE IN THAT STATE.
THE RED STATES, THE PURPOSE OF THE COLOR IS TO IDENTIFY
THAT ONLY SPECIFIC COUNTIES AND OR RESERVATIONS ARE
ELIGIBLE FOR LENDING. IT'S VERY IMPORTANT THAT WHEN
YOU START OR ORIGINATE A LOAN AND YOU SEE IT'S TO ONE OF
THE RED STATES THAT YOU CONFIRM OR IDENTIFY THAT THAT
PARTICULAR HOME IS, IN FACT, IN ONE OF OUR OPERATING
AREAS, OKAY? HOW DO YOU DO THAT?
WE HAVE ON OUR WEBSITE, AND AGAIN, I'M GOING TO PROVIDE
IT TO YOU TODAY, IS OUR LIST OF PARTICIPATING TRIBES.
THAT LIST OF PARTICIPATING TRIBES INCLUDES ON-OFF
RESERVATIONS, AS WELL AS PARTICIPATING COUNTIES, SO
ANY TIME YOU TAKE A LOAN APPLICATION IN ONE OF THOSE
RED STATES MAKE SURE YOU CROSS REFERENCE WITH A LIST
OF PARTICIPATING TRIBES. IF YOU DON'T HAVE ACCESS AND
OR CAN'T SEEM TO FIND IT OR HAVE A QUESTION, FEEL FREE TO
E-MAIL ANY ONE OF THE STAFF MEMBERS.
WE WILL IDENTIFY FOR YOU IN THE STATES OF RED.
WHITE STATES, THE WHITE STATES PRIMARILY YOU WILL SEE
THEM ON THE EAST COAST, MEANS WE DON'T HAVE A PRESENCE.
OKAY? AND LET ME EXPLAIN WHY WE 14
DON'T HAVE A PRESENCE. THIS IS NOT A LENDER-DRIVEN
OR HUD-DRIVEN. IN ORDER TO PARTICIPATE IN
ANY PARTICULAR STATE, THE TRIBE HAS TO ALLOCATE THAT TO
BE AN INDIAN OPERATING AREA. OKAY?
SO IF YOU SEE SOMETHING -- SO SOMEBODY PRESENTS A LOAN
APPLICATION, FOR EXAMPLE, IN OHIO, PENNSYLVANIA, YOU KNOW
YOU CANNOT PARTICIPATE OR OFFER THE 184 LOAN.
WE NEED TO TAKE A QUICK BREAK, AND FOR THAT, I
APOLOGIZE. WE HAVE SOME TECHNICAL
ASSISTANCE THAT WE NEED. WE WILL BE RIGHT BACK.
THANK YOU. >> WE'RE BACK. HI EVERYBODY,
SORRY FOR THAT BREAK THERE. WE HAD A TECHNICAL ISSUE WE
HAD TO ADDRESS. SO LET ME PICK UP WHERE I
LEFT OFF, AS FAR AS IDENTIFYING THE STATES, AND I
WAS IDENTIFYING BY COLORS. WHERE I WAS SAYING WAS AT THE
WHITE STATES, WE HAVE NO PRESENCE IN THESE STATES.
AGAIN, THAT'S NOT LENDER-DRIVEN OR HUD-DRIVEN.
SO YOU AS LENDERS, IF YOU EVER WANT TO OFFER A STATE A
LOAN IN ONE OF THOSE STATES, WE WOULD NEED TO CONSULT A
TRIBE. WE WOULD ADDRESS THE TRIBE,
ASK THEM TO IDENTIFY THIS AS THEIR INDIAN OPERATING AREA.
OKAY? NOW, JUST FOR THE PURPOSE OF
GEOGRAPHY. I KNOW THERE ARE 50 STATES
AND ALL YOU ARE SEEING IS 49. SO EVERYBODY IS PROBABLY
WONDERING, WHERE IS HAWAII. HAWAII HAS ITS OWN PROGRAM, 15
AND CLAUDIA, IF YOU'RE OUT THERE, THANK YOU VERY MUCH.
BUT HAWAII HAS THE 184A, WHICH MEANS YOU CANNOT OFFER
A LOAN IN HAWAII UNLESS YOU UTILIZE HER PROGRAM, OKAY?
ON TO THE NEXT SLIDE. >> OKAY.
THIS LIST HERE IDENTIFIES OUR PARTNERS AND WE HAVE A
VARIETY OF PARTNERS. BUT THE THREE WE WANT TO
ADDRESS TODAY IS HERE. YOU AS THE LENDER, AND AGAIN,
I SAID 310 OF YOU HAVE CALLED N. THANK YOU VERY MUCH.
THERE IS ALWAYS A HUGE INTEREST FROM THE MORTGAGE
WORLD, OR THE LENDERS, ON OUR PROGRAM, AND FOR THAT, WE
APPRECIATE. A COUPLE OF CHANGES WE'VE
MADE AND I KNOW YOU ALL ARE NOT HAPPY WITH BUT I WANT TO
ADDRESS IT, IS, ONE, WITH YOU NO LONGER INCLUDE ON OUR
LENDER LIST ALL THE INDIVIDUALS WHO WORK WITH
THAT PARTICULAR LENDER AND OR ALL THE LOCATIONS.
SO UNFORTUNATELY, WE ARE NOW ASKING YOU DO YOUR OWN
MARKETING. SO WHAT WE DO OFFER?
WE DO HAVE A LIST OF PARTICIPATING LENDERS.
WE UPDATE IT QUARTERLY. ON THAT LIST WE WILL IDENTIFY
YOUR MAIN BRANCH AND WE DON'T MAKE THAT DECISION, YOU DO.
YOU TELL US WHAT IS THE MAIN BRANCH THAT YOU WANT US TO
ADVERTISE, THE NAME, THE LOCATION, ET CETERA.
IF YOU HAVE A WEBSITE, YOU ARE GOING TO PROVIDE US WITH
YOUR WEBSITE AND WE WILL MAKE THAT AVAILABLE AND IF YOU
HAVE A 1-800-NUMBER. BUT AGAIN, GOING FORWARD AND 16
SEEING NO CHANGE IN THIS, BECAUSE WE'RE GETTING
E-MAILS, ASKING IF WE'RE GOING TO GO BACK TO THE OLD
FORMAT AND THE ANSWER IS NO. WE CAN NO LONGER LIST
INDIVIDUALS AND INDIVIDUAL NUMBERS.
PLEASE KEEP US UPDATED. IF YOU HAVE CHANGES IN WHAT
YOU PROVIDED US, SUBMIT THAT TO MICHAEL THORP,
MICHAEL.T.ORG AT HUD.GOV, UPDATING THE UPDATES
QUARTERLY. THE SECOND PARTNER IS OF
COURSE THE TRIBES. AS I SAID ON THE PREVIOUS
SLIDE, WE CANNOT OFFER THE 184 LOAN PROGRAM WITHOUT THE
TRIBES FIRST TELLING US THAT THEY WANT TO BRING MORTGAGE
CAPITAL TO THEIR COMMUNITY, ON OR OFF THE RESERVATION.
IF IT'S ON THE RESERVATION, THEY ESTABLISH WHAT WE CALL
LEGAL INFRASTRUCTURE, THEY GIVE US THE LEASE, THE LEAD
PROCEDURES, FORECLOSURE PROCEDURES, ET CETERA.
WE ARE PARTNERING WITH 185 TRIBES AND OVER 500
RECOGNIZABLE TRIBES THROUGHOUT THE UNITED STATES.
WE ARE NOT THERE BUT WORKING WITH TRIBES TO EXPAND OUR
AREAS. ON THE WEBSITE IS A LIST OF
THE PARTICIPATING TRIBES AND AGAIN, WHEN YOU ARE MAKING A
LOAN IN THE RED STATE, IT IS IMPORTANT THAT YOU CROSS
REFERENCE THAT LIST BECAUSE THAT LIST WILL IDENTIFY WHAT
IS THE OPERATING AREA. OKAY?
IT'S PROBABLY ALSO A LIST YOU CAN USE TO MARKET, YOU CAN
CONTACT THE TRIBES AND SEE IF THEY HAVE ANY HOMEOWNERSHIP 17
OR ANY OTHER KIND OF FAIRS OR EVENTS WHERE YOU AS A LENDER
CAN REACH OUT AND PARTICIPATE IN THAT PROGRAM.
THE THIRD PARTNER LISTED IS THE BUREAU OF INDIAN AFFAIRS
AND THEIR ROLE WITH THE 184 LOAN IS THEY ARE A TITLE
COMPANY. IF WE MAKE A LOAN ON A
RESERVATION, YOU DON'T GET TITLE FROM STEWART TITLE OR
SOME THIRD PARTY ENTITY, YOU'RE GOING TO DEAL DIRECTLY
WITH THE BUREAU OF INDIANS AFFAIRS.
AS WE PROGRESS, ANDRIKA IS GOING TO DO A PRESENTATION OR
GIVE YOU MORE DETAIL ON THE BIA AND THEIR ROLE.
MOST IMPORTANTLY ON THIS SLIDE IS THEIR WEBSITE, OKAY?
THEIR WEBSITE IS A REALLY, REALLY GOOD WEBSITE.
I HAVE TO APPLAUD THEM. IF ANYBODY HAS EVER BEEN TO
THEIR SITE, IT'S USER FRIENDLY, IT'S UPDATED
FREQUENTLY, IT PROVIDES REALLY ALL THE INFORMATION
YOU NEED TO KNOW ON HOW TO WORK WITH THE BIA.
I WOULD STRONGLY ENCOURAGE YOU NOT ONLY TO VISIT THE
SITE BUT PROBABLY TO BOOK MARK IT, OKAY?
>>> SECTION 184 E-MAILS. AGAIN, A MAJORITY I THINK OF
YOU ARE FAMILIAR WITH THESE AND HAVE UTILIZED THEM.
I JUST WANT TO REITERATE THE IMPORTANCE.
WE'VE RECEIVED A LOT OF COMPLIMENTS THAT BY GOING TO
AN E-MAIL, THAT WE ARE MORE RESPONSIVE AND YOU ARE
GETTING YOUR ANSWERS DETAILED QUICKER AND HAVE THEM IN
WRITING, RIGHT? NO MORE OF THAT DEANNA SAID. 18
THIS FIRST WEBSITE, SECTION 184 AT HUD.GOV, IT'S GOT A
VARIETY OF PURPOSES, OKAY? FIRST AND FOREMOST, THIS IS
HOW YOU GET YOUR CASE NUMBER. THIS IS WHERE THE WHOLE
PROCESS STARTS, CORRECT? WHAT IS THE PURPOSE OF THE
CASE NUMBER? TO LET US KNOW YOU'VE TAKEN A
LOAN APPLICATION AND ARE READY TO PROCEED.
YOU HAVE ALREADY IDENTIFIED SOMEBODY HAS AN ENROLLED
MEMBER OF A FEDERALLY RECOGNIZED TRIBE AND WANT TO
RESERVE FUNDING, OKAY? THAT CASE NUMBER SHOULD BE
E-MAILED TO THIS ADDRESS, OKAY?
WE DO PROVIDE THE OPTION OF FAXING IF, IN CASE, FOR SOME
REASON YOU DON'T HAVE ACCESS TO E-MAIL OR YOUR SYSTEM IS
DOWN. PLEASE DON'T SEND BOTH WAYS.
IF YOU E-MAIL IT, E-MAIL IT. IF YOU FAX IT, FAX T BUT
SOMETIMES WHAT WILL HAPPEN, YOU WILL E-MAIL IT AND FAX IT
AND WE END UP WITH DUPLICATE CASE NUMBERS, OKAY?
WE TRY TO TURN THESE AS QUICKLY AS POSSIBLE.
WE'D LIKE TO PROVIDE YOUR CASE NUMBER WITHIN 24 HOURS
OR LESS. IF WE ARE GETTING DUPLICATES
AND NUMEROUS INQUIRIES, CLEARLY, THAT SLOWS US DOWN,
RIGHT? THE CORRECT FORM TO USE IS A
CASE NUMBER REQUEST FORM ON THE BOTTOM RIGHT HAND CORNER.
YOU WILL SEE A NUMBER, THAT NUMBER IS HUD 50131, THAT
TELLS YOU THAT YOU HAVE THE RIGHT CASE NUMBER REQUEST
FORM, OKAY? IT'S IMPORTANT THAT THE FUND 19
BE TYPED. PLEASE TYPE IT.
WE WILL RECEIVE HANDWRITTEN BUT IT SLOWS US DOWN.
NOTHING PERSONAL, FOLKS, BUT SOME OF YOUR HANDWRITING IS A
LITTLE DIFFICULT, SO BEAR WITH US, OKAY?
TYPE THEM. MAKE SURE IT'S COMPLETED IN
ITS ENTIRETY. THERE'S A PURPOSE FOR EVERY
SINGLE ENTRY. RIGHT?
THAT CASE NUMBER WILL ASK IF IT'S GOING TO BE UNDERWRITTEN
BY YOU AS A LENDER OR SENDING IT TO HUD.
IT WILL IDENTIFY THE TYPE OF LOAN.
IS IT ACQUISITION? IF IT'S ON RESERVATION, IS IT
FEE SIMPLE? IS IT CONSTRUCTION?
IT ASKS FOR THE SPECIFIC ADDRESS.
PLEASE PUT THAT IN THERE. I WILL ASK YOU THIS, IT'S NOT
ON THE FORM, BUT IF YOU KNOW THE COUNTY IF YOU WOULD
PLEASE WRITE THE COUNTY NEXT TO THE ADDRESS BECAUSE
SOMETIMES WE HAVE TO STOP TO LOOK UP THE COUNTY TO MAKE
SURE WHAT THE ACTUAL LOAN LIMIT IS, SO IF YOU KNOW IT,
PUT IT IN, APPRECIATE IT, IF YOU DON'T KNOW IT, DON'T
WORRY ABOUT IT. THE BORROWERS, PLEASE
IDENTIFY ALL BORROWERS. SOMETIMES WHAT WE DO IS WE
RECEIVE THE CASE NUMBER REQUEST FORM WITH ONLY ONE
BORROWER. IF IN FACT YOU KNOW YOU HAVE
TWO, PLEASE WRITE THEM BOTH N. EVEN IF THE SECOND
BORROWER IS NOT AN ENROLLED MEMBER. 20
WE THINK SOMETIMES WHAT YOU ARE DOING IS WRITING IN THE
NAME OF THE PERSON ENROLLED BUT IF IN FACT YOU HAVE THE
CO-BORROWER, THEY SHOULD BE LISTED.
WHY? BECAUSE WHATEVER WE ENTER AT
THIS POINT WILL FOLLOW ALL THE WAY TO ENDORSEMENT, AND
IF YOU GET A CERTIFICATE THAT DOESN'T IDENTIFY THE
BORROWERS OR THE RIGHT ADDRESS, THEN WE HAVE A
PROBLEM, CORRECT? SO LET'S SEE IF WE CAN
ADDRESS IT AT THE BEGINNING, AS OPPOSED TO THE END.
ANYTHING ELSE IN THE CASE NUMBER REQUEST FORM?
>> NO. >> THAT'S PRETTY MUCH
ALL-EXCLUSIVE. LASTLY, THIS IS A GOOD
OPPORTUNITY, IF YOU ARE NOT SURE IF YOUR APPLICANT I.D.
CARD IS ACCEPTABLE, OKAY, SO WHEN YOU SEND IN THE CASE
NUMBER REQUEST FORM, IF YOU HAVE A TRIBAL IDENTIFICATION
THAT YOU'RE NOT FAMILIAR WITH, YOU THINK IT'S ABOUT TO
EXPIRE, COULDN'T FIND THEM ON THE LIST OF FEDERALLY
RECOGNIZED TRIBES, SEND IT WITH.
SEND IT WITH A CASE NUMBER REQUEST FORM.
PUT A NOTE ON THERE, SAY COULD YOU PLEASE CONFIRM THIS
PERSON IS, IN FACT, ELIGIBLE FOR THIS LOAN PROGRAM.
WE AND THE MAIN STAFF WILL REVIEW IT.
IF WE'RE IN DOUBT WE WILL REACH OUT TO OUR 184 TEAM
MEMBERS OUT IN THE FIELD. IF, IN FACT, THE PERSON IS
NOT AN ENROLLED MEMBER WE WILL SEND YOU BACK THE CASE 21
NUMBER REQUEST FORM. WE WILL LET YOU KNOW WHY WE
ARE NOT ASSIGNING A NUMBER. IF THEY ARE ELIGIBLE, YOU GET
THE CASE NUMBER, YOU KNOW YOU'RE GOOD TO GO.
THE SECOND PURPOSE OF THIS E-MAIL, COHORTS, FIRM
COMMITMENTS. OKAY, THIS IS SPECIFICALLY
FOR OUR LENDERS WHO ARE DIRECT GUARANTEE.
LENDERS THAT ARE DIRECT GUARANTEE THAT EMPLOY THEIR
OWN UNDERWRITING STAFF WILL OBVIOUSLY COMPLETE THEIR OWN
FIRM COMMITMENT BUT BECAUSE YOU DON'T HAVE ACCESS TO OUR
SYSTEM WHICH WE IDENTIFY AS CHUMS, THERE'S A WORK SHEET
YOU NEED TO COMPLETE. AGAIN, YOU SHOULD HAVE IT, WE
WILL PROVIDE IT AT THE END OF THE SESSION TODAY.
YOU WILL COMPLETE THAT WORK SHEET AND THAT IS WHAT WE USE
TO ENTER INTO OUR SYSTEM IN ORDER TO GENERATE YOU A FIRM
COMMITMENT. THE PURPOSE OF THE FIRM
COMMITMENT OBVIOUSLY IS TO ASSIGN A COHORT NUMBER AND
RESERVE THE FUNDS. WHEN YOU SEND IN THAT FORM,
YOU SHOULD HAVE SENT IT AS AN ATTACHMENT TO THIS E-MAIL.
DO NOT E-MAIL IT AND FAX IT. THAT'S CONFUSING.
MAKE SURE THAT YOU IDENTIFY WHAT ARE YOUR ACTUAL CLOSING
CONDITIONS, BECAUSE WHATEVER YOU PROVIDE ON THAT FORM IS
WHAT WE ARE GOING TO CUT AND PASTE INTO OUR SYSTEM.
CORRECT? MAKE SURE THAT FORM IS
SIGNED. UNLESS IT'S SIGNED, THAT
TELLS US THAT'S YOUR FINAL FORM, THE UNDERWRITER HAS 22
EXECUTED AND HE OR SHE IS READY TO PROCEED WITH GETTING
A COHORT, CORRECT? SO MAKE SURE THAT'S SIGNED.
THIRDLY, AND OF COURSE, MAYBE I SHOULD HAVE ADDRESSED THIS
IN THE BEGINNING, WHEN YOU SEND AN E-MAIL TO THE SECTION
184 AT HUD.GOV, IDENTIFY IN THE SUBJECT LINE THAT YOU ARE
ASKING FOR A CASE NUMBER, OR WHETHER YOU ARE ASKING FOR A
COHORT. THE REASON WE ASK THAT, WE
NOW HAVE TWO DIFFERENT OFFICES ASSIGNING CASE
NUMBERS. CASE NUMBERS ARE EITHER
COMING OUT OF WASHINGTON, D.C. OR DENVER, COLORADO, SO
WHEN I OR MICHAEL SEE THAT E-MAIL ADDRESS, I CAN ONLY
PICK UP WHAT ARE CASE NUMBER REQUESTS AND THAT WAY I'M NOT
PICKING UP COHORTS. YOU DON'T WANT ME TO
ERRONEOUSLY GRAB THE COHORTS BECAUSE I'M NOT ISSUING
THOSE. OKAY?
ANYTHING ELSE, LADIES? NO?
OKAY. ANYTHING ELSE?
SORRY. CAN'T RAISE YOUR HAND!
>> NEXT SLIDE. OKAY.
APPRAISALS. WE ALSO HAVE E-MAILS
SPECIFICALLY FOR APPRAISALS. WHEN THIS WAS FIRST
DEVELOPED, THE INTENT WAS FOR YOU ALL TO SEND US THE
APPRAISAL ELECTRONICALLY, BECAUSE OFTEN TIMES WHEN YOU
SEND IT THE UNDERWRITING FILE IS NOT LENIBLE, PICTURES
AREN'T LEGIBLE, ET CETERA, SO WE WANT YOU TO E-MAIL THEM TO 23
US, SO IF YOU DON'T HAVE A LEGIBLE APPRAISAL OR IF YOU
HAVE IT ELECTRONICALLY, YOU WANT TO SEND IT THAT WAY,
FEEL FREE TO DO SO, MAKE SURE AGAIN IN THE SUBJECT LINE YOU
IDENTIFY THE CASE NUMBER, THE NAME OF THE BORROWER, SO THAT
WHEN WE DO PRINT IT OR ACCESS IT, WE MERGE IT WITH THE
CORRECT UNDERWRITING FILE. HOWEVER, THE BIGGEST PURPOSE
OF THIS E-MAIL THAT WE'VE LEARNED, AND OF COURSE, OVER
THE COURSE OF THE YEAR, YEAR AND A HALF, THE UNDERWRITER
IF THEY HAVE A QUESTION ON THE APPRAISAL.
SO IF THEY ARE CONCERNED ABOUT THE APPROACH, THE
COMPARABLES, ANYTHING TO DO WITH THE APPRAISAL, WHAT
HAPPENS IS YOU ASK US THE QUESTION VIA THIS E-MAIL,
OKAY? WE ARE FORTUNATE ENOUGH TO
STILL WORK WITH LYLE CONKLE IN OUR WYOMING OFFICE AND
FORTUNATE ENOUGH TO HAVE PARTNERS IN THE FHA OFFICE
WHO WE CAN THEN FORWARD THE APPRAISAL TO AND HE WILL
ADDRESS WHAT YOUR ISSUES OR CONCERNS ARE, SO FEEL FREE TO
PLEASE CONTINUE TO USE THAT E-MAIL ADDRESS.
>> AND THIRD AND I WOULD SAY PROBABLY THE MOST USED IS OUR
E-MAIL ADDRESS THAT IS SPECIFICALLY FOR THE DIRECT
GUARANTEE LENDER, OKAY? WE HAVE OVER 85 UNDERWRITERS
THAT ARE CURRENTLY UNDERWRITING 184 LOANS, SO
NOT ONLY DO WE HAVE THE HUD STAFF BUT THE 85 OF YOU.
A LITTLE BIT LATER TODAY, VALERIE AND YVONNE ARE GOING
TO GO SPECIFICALLY ROLES AND PROCEDURES OF THE DIRECT 24
GUARANTEE UNDERWRITERS, HOWEVER, WHEN YOU HAVE
QUESTIONS, ANYTHING TO DO WITH UNDERWRITING, POLICY,
INTERPRETATION OF POLICY, WAIVERS, IF YOU HAVE A
REQUEST FOR A WAIVER, AND OR JUST A GENERAL QUESTION, THEN
PLEASE, USE THIS E-MAIL. AGAIN, WHAT NORMALLY HAPPENS
IS THAT WE ASSIGN ONE UNDERWRITER, A MONTH OR A
QUARTER, TO MONITOR THIS SITE, CORRECT?
SO THE QUESTIONS COME IN, SHE WILL EITHER ANSWER THEM
IMMEDIATELY BASED ON OUR WRITTEN PROCEDURES, POLICES,
ET CETERA. IF, FOR EXAMPLE, IT'S A
WAIVER OR POLICY INTERPRETATION, THEN WHAT
WILL HAPPEN IS WE COME TO COMMITTEE.
SO LET'S SAY THIS MONTH IS VAL REAR AND VALERIE IS
MONITORING THAT BOX. SO VALERIE WILL EITHER ANSWER
OR SEND OUT AN E-MAIL TO THE OTHER UNDERWRITERS AND WILL
DO A VERY QUICK MEETING AND THE MEETING WILL EITHER BE
ELECTRONICALLY VIA E-MAIL OR WE'LL PICK UP THE PHONE AND
CHAT AND COME UP WITH A DECISION OR AN ANSWER AND
THEN IT WILL BE E-MAILED BACK TO YOU.
THEN WHAT WE DO, WE PARK THE DECISIONS OR ANSWERS AND AT A
LATER TIME TRY TO SHARE THEM WITH A GROUP OR INCORPORATE
THEM IN POLICY OR PROCEDURE CHANGES.
OKAY? OKAY.
PROGRAM UPDATES. I PROBABLY SHOULDN'T HAVE
USED THE WORD UPDATES. I THINK WHAT WE'RE TRYING TO 25
SAY HERE IS JUST CONTINUATION, OKAY.
DEPARTURE RESIDENCE, WHICH IS PROBABLY THE LEAST FAVORITE
OF EVERYBODY'S. WE GET THE MOST COMPLAINTS
ABOUT THIS. FOR THAT I APOLOGIZE, BUT
WE'RE NOT GOING TO ELIMINATE THIS POLICY, OKAY?
SO IF THERE HAVE BEEN NO CHANGES, AGAIN, WE WILL
PROVIDE YOU A COPY OF THE DEPARTURE RESIDENCE.
JUST AS A REMINDER, IF YOU HAVE SOMEBODY WHO'S LOOKING
FOR PURCHASE ANOTHER HOME AND THEY OWN A HOME AND THAT HOME
HAS A LIEN, ANY TYPE OF LIEN, DOESN'T HAVE TO BE A
GOVERNMENT LIEN, CONVENTIONAL, FHA, VA, ET
CETERA, THEY HAVE A MORTGAGE, THEY FIRST MUST MEET THE JOB
RELOCATION OF 50 MILES OR GREATER OR DEMONSTRATE ON
INCREASE IN FAMILY SIZE IN ORDER TO PROCEED.
ONE HAS TO BE MET. THEN AS YOU READ BUT THE
DEPARTURE OF RESIDENCE POLICY, SEE THOSE ARE TO BE
MET AND SUPPORT THAT IN YOUR UNDERWRITING FILE.
OKAY? SECOND, AGAIN, WE'RE GOING TO
PROVIDE TO YOU A REMINDER ON OUR POLICY FOR NONOCCUPYING
COBORROWERS. WE DO ALLOW NONOCCUPYING
COBORROWERS BUT YOU CANNOT HAVE A NONOCCUPYING
COBORROWER IN ORDER TO OFFSET BAD CREDIT.
WE SEE A LOT WHERE THE ORIGINATOR OF THE LOAN HAS
BAD OR NO CREDIT SO YOU TRY TO BRING IN A NONOCCUPYING
AND COBORROWER AND THAT SHOULD NOT BE THE PURPOSE OF 26
A NONOCCUPYING COBORROWER, OKAY?
THIRD, SECTION 184MACAW. THE BIGGEST THING WE SEE
CONSISTENTLY AND PROBABLY SHAME ON US, WE HAVE SO MANY
VERSIONS OF THAT MCAW, OFTEN TIMES, MAYBE WE EVEN HAVEN'T
PROPERLY UPDATED YOU OR FOR SOME REASON YOU'RE MISSING
IT, BUT GOING FORWARD, PLEASE USE THE OMB EDITION.
IT'S ON THE BOTTOM RIGHT HAND CORNER.
YOU WILL SEE OUR HUD NUMBER. IT'S 50132.
THAT IS THE MOST RECENT AND THE ACCURATE MCAW, OKAY?
NOW, ONCE YOU'VE OBTAINED THE RIGHT COPY, WE ASK THAT YOU
TYPE IT. PLEASE TYPE IT.
LET IT FILL IN. PLEASE MAKE SURE THAT YOU PUT
IN -- YOU USE THE CORRECT LOAN LIMITS WHICH WE WILL
ADDRESS IN A MINUTE AND PLEASE BE SURE YOU COMPLETE
IT IN ITS ENTIRETY. OFTEN TIMES WE GET MCAWS THAT
ARE NOT COMPLETE AND WHEN IT'S NOT COMPLETE IT DOESN'T
CALCULATE CORRECTLY, RIGHT? FOR EXAMPLE IF YOU LEAVE OFF
THE INTEREST RATE OR THE LOAN TERM, IF YOU LOOK TO THE
RIGHT HAND SIDE, IT WON'T CALCULATE THE PRINCIPAL AND
INTEREST, RIGHT? SO THE MACAU IS NOT COMPLETE.
WE'RE STICKLERS, WE'RE VERY FOND OF THIS FORM AND WE WANT
IT COMPLETED CORRECTLY. AND LAST BUT NOT LEAST, YOU
NEED TO SIGN IT. WHO SIGNS IT?
THE UNDERWRITER. PLEASE DON'T HAVE YOUR
PROCESSORS, L. OS, ET CETERA, SIGN IT. 27
IT MUST BE SIGNED BY THE UNDERWRITER.
>> PROGRAM LIMITS. AS TOM INDICATED IN THE
INTRODUCTION, WE CHANGED OUR LOAN LIMITS, WE CHANGED THEM
IN JANUARY 2013, WE NO LONGER GO BY 150 PERCENT OF THE FHA
LOAN LIMIT. IT'S IMPORTANT WHEN YOU USE
THE RIGHT MCAW, A PREVIOUS EDITION WILL ASK YOU TO DO
THE 150 PERCENT AND IN SOME CASES WE SEE WHERE YOU'RE
USING THE NEW LOAN LIMITS AND MULTIPLYING BY ONE 50, AND OF
COURSE THAT WOULD MAKE THE LOAN WAY TOO HIGH AND HOUSTON
WE HAVE A PROBLEM. MAKE SURE YOU HAVE THE RIGHT
LOAN LIMITS. WE ARE PROVIDING THEM TO YOU
AND THEY ARE ALSO ON OUR WEBSITE.
THEY AGAIN ARE SORTED BY STATE AND BY COUNTY.
DO NOT MULTIPLY THEM BY 150 PERCENT.
IF AND WHEN WE CHANGE THEM WE WILL OF COURSE NOTIFY YOU AND
WE WILL LAUNCH THEM ON OUR WEB SITE ONE OTHER CHANGE AND
WE'VE TRIED TO MAKE THE CHANGE ON ALL OF OUR
CHECKLISTS, BUT AGAIN TO REMIND YOU THAT WE NOW
REQUIRE TAX TRANSCRIPTS. THERE HAS BEEN SOME
CONFUSION. SOME LENDERS THOUGHT WE ONLY
NEEDED THEM WHEN THE INDIVIDUAL WAS SELF-EMPLOYED
AND THAT IS NOT CORRECT. WE WANT TWO YEARS, TAX
TRANSCRIPTS, FOR EVERY LOAN. TWO CONSECUTIVE YEARS.
MAKE SURE YOU ORDER THEM FROM THE IRS, PUT THEM IN A FILE.
NOW, IN ADDITION TO THE TAX TRANSCRIPT, WE MAY, IN FACT, 28
WE AS UNDERWRITERS AND OR YOU AS UNDERWRITERS, COULD ASK
FOR THE ACTUAL TAX RETURN WHEN SOMEBODY IS
SELF-EMPLOYED, WHY? BECAUSE OF COURSE NOT ONLY DO
WE SEE WHAT THEY SUBMITTED TO THE IRS BUT WE WANT THE
ENTRIES ON THE SCHEDULE FEE, DO THEY HAVE DEPRECIATION OR
OTHER ITEMS THAT CAN BE ADDED BACK TO THEIR INCOME FOR
QUALIFYING PURPOSES. AGAIN, JUST A REMINDER, EVERY
LOAN HAS TO HAVE A TAX TRANSCRIPT.
AT THE END OF THIS WEBINAR WE'RE GOING TO PROVIDE YOU
THE REVISED CHECKLIST AND ON IT, IT SAYS TAX TRANSCRIPTS,
RIGHT? WE'RE GOING TAKE A FIVE
MINUTE BREAK AND WHEN WE COME BACK, WE'RE GOING TO GO OVER
DIRECT GUARANTEE. I APOLOGIZE, IT'S A 10 MINUTE
BREAK, SO GIVE US 10 MINUTES, AND WE WILL BE BACK AND
AGAIN, WE'RE GOING TO SWITCH SPEAKERS AND GO OVER DIRECT
GUARANTEE. THANK YOU.
>> [BREAK] >> WE'RE BACK.
HI EVERYBODY, HOPE YOU'RE OUT THERE.
WE'RE READY TO RESUME. DURING THE BREAK WE DID GET
IN FACT A FEW QUESTIONS SO I'M GOING TO ADDRESS THOSE
AND THE OTHER THING I WANT TO ADDRESS.
ONE OF THE QUESTIONS WE RECEIVED IS WILL THIS WEBINAR
BE AVAILABLE AT A LATER DATE AND THE ANSWER IS YES, IT
WILL BE ARCHIVED AND YOU CAN WATCH IT, SO IF THERE ARE
THOSE IN OUR OFFICE THAT WANT TO WATCH IT, MAKE THE 29
INFORMATION AVAILABLE, THEY CAN DO IT THAT WAY.
SECONDLY, THE ONLY POWER POINT THAT YOU HAVE IS THE
ONE YOU ARE WATCHING. YOU DO NOT HAVE IT AS AN
ATTACHMENT, HOWEVER WHEN THE SESSION IS OVER YOU WILL HAVE
THE POWER POINT, AS WELL AS ALL OF OUR FORMS WE ARE
REFERENCING DURING THIS SESSION AND OR THAT WE'VE
MADE RECENT CHANGES SO-SO AGAIN, YOU WILL BE ABLE TO GO
TO THE SITE, COLLECT EVERYTHING AND WE'LL POST IT
ON OUR WEBSITE AND IF YOU CAN'T FIND IT AT THE OTHER
LOCATIONS, E-MAIL IT, I'LL ZIP IT, PUT IT IN A ZIP DRIVE
AND SEND IT OFF TO YOU. LET ME ANSWER THE QUESTIONS
THAT CAME N1 OF THEM WAS WHEN WE WERE ADDRESSING AS FAR AS
WHAT STATES WERE OPERATING STATES, THE QUESTION WAS DOES
THE ENROLLED MEMBER HAVE TO PURCHASE THAT HOME IN THE
STATE WHERE THEY ARE ENROLLED AND THE ANSWER IS NO.
LET ME GIVE AN EXAMPLE. IF I'M A MEMBER OF THE NAVAJO
NATION, I'M FROM ARIZONA, I'M JOB RELOCATES ME TO THE STATE
OF WASHINGTON OR OREGON, COULD I PARTICIPATE IN EITHER
OF THOSE STATES, THE ANSWER IS YES.
A, I'M AN ENROLLED MEMBER OF THE FEDERALLY RECOGNIZED
TRIBE, I HAVE EVIDENCE IN MY ENROLLMENT CARD AND B, THE
STATE OF WASHINGTON OR OREGON, THE ENTIRE STATE IS
AN OPERATING AREA SO I COULD PROCEED.
OKAY? WHERE IT GETS A LITTLE TRICKY
IS IF I'M A MEMBER OF THE NAVAJO NATION AND I'M 30
RELOCATING TO THE STATE OF WASHINGTON, COULD I BUY ON A
RESERVATION IN THE STATE OF WASHINGTON, AND THE ANSWER IS
PROBABLY NO, AND THE REASON IT'S NO IS BECAUSE IN ORDER
TO PURCHASE OR BUILD OR BUY A HOME ON A RESERVATION, I HAVE
TO HAVE AN EXECUTED LEASE. 99 PERCENT OF THE TIME, THE
TRIBE WILL ONLY LEASE LAND TO A MEMBER OF THEIR TRIBE.
SO EVEN THOUGH I'M NAVAJO AND ENROLLED, FOR EXAMPLE, THE
YAKIMAS ARE NOT GOING TO LEASE LAND TO ME, OKAY?
HOPEFULLY THAT ANSWERS YOUR QUESTION, WHOEVER WROTE THAT
IN. NEXT QUESTION WE RECEIVED IS
HOW MANY DIFFERENT TYPES OF MCAWS DO WE HAVE AND THAT'S A
GOOD QUESTION. CURRENTLY WE HAVE THREE
MCAWS, WE HAVE A MCAW IF THE TYPE OF LOAN IS FOR
CONSTRUCTION, A MCAW IF THE LOAN IS FOR REFINANCED AND A
MCAW SPECIFICALLY TO ACQUISITIONS.
ALL THREE MCAWS ARE FOUND ON ONE FORM, IF YOU WILL, AND IF
YOU LOOK AT THE BOTTOM OF THE FORM YOU WILL SEE VARIOUS
TABS, YOU DOUBLE CLICK THAT TAB TO RETRIEVE THE MCAW THAT
YOU NEED SPECIFIC TO YOUR LOAN.
OKAY? OKAY, THEN WE HAVE OTHER
QUESTIONS THAT WE WANT TO ADDRESS THAT WE ALREADY HAD,
SO IF YOU WANT TO BRING THOSE UP.
THIS IS ONE THAT WE, WE MEANING THE UNDERWRITERS,
RECEIVE QUITE OFTEN AND THE QUESTION IS, IF AN APPLICANT
WAS SELF-EMPLOYED, HE OR SHE CHANGES EMPLOYMENT TO A W2 31
JOB, DO THEY HAVE TO HAVE TWO FULL YEARS.
OKAY? AND THE ANSWER IS NO.
THE APPLICANT MUST DEMONSTRATE OR SHOW TWO FULL
YEARS OF EMPLOYMENT BUT IT COULD BE A COMBINATION OF
SELF-EMPLOYED AND W2. OKAY?
IF THERE'S A GAP FROM SELF-EMPLOYED AND W2 OF 30
DAYS OR GREATER PLEASE MAKE SURE THAT YOUR FILE ADDRESSES
THAT GAP IN EMPLOYMENT. THE BORROWER OR APPLICANT
MUST IDENTIFY WHY IT IS HE OR SHE HAD THE GAP, OKAY?
NOW, ON THE REVERSE -- FIRST OF ALL BEFORE I DO THAT, FOR
FURTHER CLARIFICATION OR DOCUMENTATION, PLEASE REFER
TO CHAPTER FIVE, SECTION SIX. THAT'S WHERE YOU'LL FIND THIS
ANSWER, OKAY? NOW, KEEP IN MIND, THOUGH,
THIS IS SELF-EMPLOYED TO W2. COULD YOU GO W2 TO
SELF-EMPLOYED? THE ANSWER WOULD BE NO,
RIGHT? BECAUSE IF YOU ARE
SELF-EMPLOYED AT THE TIME YOU REQUEST THE LOAN, THEN YOU
MUST HAVE BEEN SELF-EMPLOYED FOR A MINIMUM OF TWO YEARS,
AND WE REQUIRE EVIDENCE, VIA TAX RETURNS, WHETHER IT'S A
CORPORATION TAX RETURN OR A SCHEDULE C.
BUT WE WANT TO KNOW, IN FACT, THAT YOU HAVE BEEN ABLE TO
MANAGE YOUR BUSINESS FOR A MINIMUM OF TWO FULL YEARS.
NEXT QUESTION. IF AN APPLICANT OWNS A HOME
FREE AND CLEAR, WOULD HE OR SHE HAVE TO COMPLY WITH THE
REQUIRED DEPARTURE GUIDELINES. 32
THE ANSWER IS NO, RIGHT? THE DEPARTURE RESIDENCE
GUIDELINE IS TO PREVENT WHAT WE CALL IN THE INDUSTRY BUY
AND BAIL, RIGHT? SO IF SOMEBODY CURRENTLY OWNS
A HOME AND HAVE A LIEN ON THAT HOME WE WANT TO MAKE
SURE THEY ARE NOT ATTEMPTING TO PURCHASE A SECOND HOME AND
BAIL ON THE FIRST. WHY WOULD SOMEBODY BAIL,
RIGHT? THE OBVIOUS ANSWER WOULD BE
IF YOU HAVE A LIEN THAT'S $200,000 A RECENT EVALUATION
SHOWS THAT HOME IS WORTH 100, CORRECT -- AND UNFORTUNATELY
IT DOESN'T -- IT HAPPENS ALL TOO OFTEN.
I THINK IT'S STARTING TO CORRECT ITSELF BUT
HISTORICALLY THAT WAS THE PROBLEM AND THAT'S WHY WE
ADMINISTERED THIS DEPARTURE RESIDENCE POLICY.
HUD 184 IS NOT A LOAN. I KNOW FHA AND CONVENTIONAL
HAS THE SAME CONCERN, THEY WANT TO PREVENT A BUY AND
BAIL BUT FOR OUR PURPOSE IF THE HOME IS FREE AND CLEAR
THEY COULD PROCEED, DEPARTURE RESIDENCE POLICY DOES NOT
APPLY. >> AND THIRDLY, IF SECTION
184'S A CREDIT SCORE DRIVEN PROGRAM.
THIS COMES IN FREQUENTLY AND MORE SO FROM THE APPLICANT.
YOU AS THE LENDER ARE FAMILIAR FAMILIAR -- ALREADY
FAMILIAR AND KNOW THE ANSWER TO THIS BUT A LOT OF TIMES
THE APPLICANT CALLS US AND SO THE ANSWER IS?
NO. RIGHT?
SECTION 184 DOES NOT CREDIT SCORE. 33
OKAY? WE DO NOT GET THE TRIBE'S
CREDIT REPORT, LOOK AT THE NUMERIC NUMBER AND BASE OUR
DECISION ON A NUMERIC NUMBER AND AGAIN, LENDERS THAT HAVE
BEEN WORKING WITH US FOR NUMEROUS YEARS KNOW WE COULD
HAVE SOMEBODY WITH A 700 CREDIT SCORE AND BE DENIED
AND A 600 BE APPROVED. WE ARE DOING A MANUAL
UNDERWRITE AND VIA THAT MANUAL UNDERWRITE, WE ARE
LOOKING AT CREDIT, ASSETS, COLLATERAL.
IT TAKES A PICTURE. UNDERWRITING IS AN ART.
IT'S NOT A SCIENCE. CORRECT?
BUT WE DO NOT CREDIT SCORE. WE DO RECOGNIZE, THOUGH, THAT
YOU ALL HAVE OVERLAYS. SOMETIMES YOU HAVE DATA HERE,
TOO. WHETHER IT'S WITH THE
INVESTORS OR INTERNALLY WITHIN YOUR OWN ORGANIZATION.
SO IF, IN FACT, YOUR CREDIT SCORE MEANS YOU MAY NOT TAKE
A 184 APPLICATION, RIGHT, YOU HAVE AN APPLICANT WHO HAS A
600 CREDIT SCORE AND YOUR MINIMUM IS 639 OR 640, WHAT
HAPPENS TO THAT INDIVIDUAL? YOU'RE NOT ABLE TO ASSIST
THEM. IF YOU CONTACT US AND OR IF
THE BORROWER CONTACTS US, WE WILL REFER THEM TO ANOTHER
PARTICIPATING LENDER AND OR OUR LIST OF PARTICIPATING
LENDERS. SO AGAIN, HUD 184 DOES NOT
CREDIT SCORE, ALTHOUGH WE CAN'T PREVENT YOU FROM
SOMETIMES IMPOSING CREDIT SCORES.
WE, IN FACT, NEVER WILL. >> OKAY. 34
AT THIS POINT, I AM GOING TO SWITCH PRESENTERS.
YOU ARE NOW GOING TO GET TO HEAR FROM YVONNE JOHNSON AND
VALERIE WRIGHT AND THEY ARE GOING TO TALK ABOUT
GUARANTEES. >> FIRST IF I MAY TAKE A
QUICK SECOND TO SAY A ELEMENT OHA TO MY BUDDY CLAUDIA.
I'M VALERIE WRIGHT AND I'M SO EXCITED FOR THIS OPPORTUNITY
TO GREET YOU, VIA WEBINAR, ON ONE OF THE PARTS OF MY JOB
THAT, BELIEVE IT OR NOT, I LIKE.
I LIKE TO DO. IT BRINGS A WONDERFUL
DIVERSION AND I GET TO MEET SO MANY DIFFERENT PEOPLE OUT
THERE IN THE FIELD THAT I HAVE THE PLEASURE OF CALLING
MY PARTNERS, SO THANK YOU. THANK YOU MUCH.
YVONNE AND I WORK DILIGENTLY ON BRINGING YOU OUR PROGRAM,
OUR POLICES, AND OUR PROCEDURES, SO YOU CAN ACT
PERFECTLY ON OUR BEHALF IN UNDERWRITING OUR LOAN AND
AGAIN, WE THANK YOU. JUST TO GO THROUGH SOME OF
THE PROCESSES, AGAIN, WITH YOU, WHAT WE'RE LOOKING FOR,
AND WHAT YOU CAN EXPECT OF US, FIRST, I'M GOING TO SPEAK
TO THE NEW D.G. UNDERWRITER, D.G. STANDING FOR DIRECT
GUARANTEE. IT'S VERY SIMPLE.
WE HAVE CREDENTIALS THAT IT'S REQUIRED BEFORE WE CAN START
THE PROCESS. AND USUALLY THE PROCESS
STARTS BY EITHER A SUPERVISOR OR OWNER OF THE COMPANY, OR
EVEN YOURSELF, SENDING A REQUEST VIA E-MAIL, SENT
DIRECTLY TO ME OR SOMETIMES TO DEANNA, JUST INQUIRING 35
ABOUT THE PROCESS AND WANTING TO BE A CANDIDATE FOR THE
TRAINING. THAT CAN EITHER BE A NEW D.G.
OR IF YOU HAVE BEEN PREVIOUSLY APPROVED, AND THEN
OUT OF THE LOOP FOR SIX MONTHS OR MORE, THAT WILL
REQUIRE RECERTIFICATION, AGAIN, GOING THROUGH THE TEST
CASE PROCESS AS WELL. OKAY?
WITH THAT, WE REQUIRE A COPY OF YOUR RESUME, MOST CURRENT
RESUME, YOUR SOCIAL SECURITY NUMBER, AND WITH THAT, WE
CHECK YOUR TVRS, LG AND DSA TO MAKE SURE YOU'RE NOT
DISBARRED FROM THE PROGRAM OF UNDERWRITING A GOVERNMENT
LOAN. ONCE I SEE CLEARANCE OF THAT,
YOU ARE THEN SENT A LETTER, E-MAIL ACTUALLY, INVITATION,
INVITING YOU TO TAKE PART IN A CONFERENCE CALL THAT WE
HOLD ONCE A MONTH, THE THIRD THURSDAY OF THE MONTH --
SECOND OR THIRD THURSDAY OF THE MONTH.
AND WE INVITE THE UNDERWRITERS, MANAGERS,
SUPERVISORS, AND CLOSERS, THOSE PEOPLE THAT ARE
INTRICATE IN UNDERWRITING, PACKAGING AND SUBMIT THANK
FILE TO OUR OFFICES FOR REVIEW, AND ISSUANCE OF THE
CERTIFICATE AFTER CLOSING. THE TEST CASE SUBMISSION
PROCESS REQUIRES FOR NEW D.G. UNDERWRITERS A SUBMISSION OF
FIVE CASE BINDERS, OKAY? NOW, WITHIN THOSE BINDERS,
YOU CAN HAVE A LOAN THAT YOU DENY.
IT'S VERY, VERY IMPORTANT THAT WHEN YOU SUBMIT THAT
FILE, THAT, ONE, IT'S COMPLETE, AND THAT THE MCAW, 36
THE CORRECT MCAW, INDICATES YOUR DECISION, TO BE APPROVED
OR REJECTED. VERY, VERY IMPORTANT AS
DEANNA HAD INDICATED THAT YOU SIGN AS THE UNDERWRITER AND
DATE IT. MANY OCCASIONS I I CAN SAY I
HAVE RECEIVED MCAWS THAT HAVE NOT BEEN INDICATED AS A
DECISION OR SIGN AND THEY'VE GONE BACK TO YOU.
IT IS IMPORTANT THAT I KNOW THAT I CONCUR WITH YOUR
DECISION. THAT'S WHY IT'S IMPORTANT
THAT I SEE THAT ON THE MCAW. ONCE WE'VE GONE THROUGH THE
FIVE REVIEWS AND YOU'VE SEEN FIVE COMMITMENTS OR A LETTER
INDICATING THAT I CONCUR WITH THE DECISION TO DECLINE A
LOAN YOU WILL GET A FORMAL LETTER OF RELEASE.
YOU DEFINITELY GET AN E-MAIL WITH MY WORDS IN THE MEMO,
SUBJECT MATTER, SAYING CONGRATULATIONS.
THAT'S A YAY MOMENT FOR ME THAT I SHARE WITH YOU, A
CONGRATULATORY MOMENT AND AN E-MAIL GOES OUT TO EVERY ONE
OF MY STAFF MEMBERS AS WELL. SO WE ARE HERE PARTYING WITH
YOU, BELIEVE ME, AND THAT'S THE TRUTH.
AND WE APPLAUD YOUR EFFORTS AND THANK YOU FOR YOUR
COMMITMENT. WHAT'S EXPECTED OF OUR STAFF?
YVONNE AND I, ONCE WE GET THE CASE FILE, WE ASSURE THE
DOCUMENTS THAT ARE NEEDED AND PROPERTY DOCUMENTS ARE IN
PLACE AND REVIEW THEM. WE WILL EITHER ISSUE A FIRM
COMMITMENT, A CONDITIONAL COMMITMENT, OR A SUSPENSE
LETTER. THE SUSPENSE LETTER BEING THE 37
WORST OF THE THREE. HAPPILY, I CAN SAY -- I DON'T
KNOW. I CAN ACTUALLY SAY THEY DON'T
SEND OUT TOO MANY SUSPENSION LETTERS.
I WILL SEND A CONDITIONAL. LET ME MAKE MENTION OF THE
CONDITIONAL, HOWEVER. PLEASE DO NOT MISTAKE A
CONDITIONAL FOR A FIRM. A CONDITIONAL COMMITMENT
CANNOT CLOSE A LOAN. BECAUSE DO YOU NOT HAVE A
COHORT NUMBER THAT, DOES NOT RESERVE FUNDS.
I MUST REITERATE, PLEASE DO NOT CLOSE A LOAN WITH A
CONDITION AT COMMITMENT, OKAY?
BUT YOU WILL GET THAT RECEIVED AFTER -- WE ALLOW
3-5 BUSINESS DAYS, ONCE WE RECEIVE THAT FILE, TO TURN
THAT BACK OVER TO YOU. AGAIN, ONCE WE GO THROUGH THE
FIVE TEST CASES, EVERYTHING IS FINE, YOU WILL GET YOUR
RELEASE, THEN WE WILL PREPARE YOU FOR THE ENDORSEMENT,
SUBMISSION, OF THAT FILE FOR L.G., CERTIFICATE, ISSUANCE.
AND THAT'S IT FOR THAT POINT. I WILL PASS IT ON TO YVONNE
TO ELABORATE FURTHER ON THE PROCESS.
HELLO, AGAIN, I'M YVONNE JOHNSON, AGAIN, FROM THE
ATLANTA, GEORGIA OFFICE, AND I WANT TO JOIN VALERIE IN
THANKING YOU FOR ALL YOU DO ON BEHALF OF SECTION 184, AND
TO SAY TO YOU, WHILE WE'RE TOGETHER, THAT I AM
ENORMOUSLY PROUD OF THE WORK WE HAVE COMPLETED AS
PARTNERS, AND I LOOK FORWARD TO CONTINUING GOOD WORK IN
THE FUTURE. I'D LIKE TO TALK TO YOU ALL 38
BUT ESPECIALLY THE UNDERWRITING DEPARTMENTS OUT
THERE ABOUT SOME OF THE UNDERWRITER ISSUES THAT
CONTINUE TO PRESENT THEMSELVES IN THE FORMS OF
QUESTIONS, IN THE QUESTION BOX, OR DIRECT E-MAILS TO ALL
OF US AS UNDERWRITERS. ONE OF THE MOST PROMINENT
BEING WHEN SHOULD AN UNDERWRITER REFER TO AIL FOR
HUD FOR UNDERWRITING BY A HUD UNDERWRITER.
OBVIOUSLY, WHEN A FILE FALLS INTO THE CATEGORY OF
SOMETHING THAT WE HAVE NOT EMPOWERED THE UNDERWRITERS TO
PROCESS EXTERNALLY, IT SHOULD ALWAYS BE SUBMITTED TO A HUD
UNDERWRITER, AND I WILL JUST RAISE FOR YOU A FEW OF THOSE
CATEGORIES. ONE IS A REQUEST FOR A
PURCHASE OF A CONDOMINIUM, A REQUEST FOR A TRIBAL LOAN OR
A BLOCK OF TRIBAL LOANS. WE ARE AWARE THAT MANY HAVE
EXPRESSED AN INTEREST IN PROCESSING TRUST TRANSACTION
AND AT SOME FUTURE DATE WE MAY BE COMING BACK TO YOU
WITH TECHNICAL ASSISTANCE IN HOW TO DO THOSE.
AUTHORIZATIONS, APPROVALS FOR DEBT TO INCOME RATIOS IN SOME
INSTANCES, SINGLE CLOSE LOANS, AND AS WE MENTIONED
EARLIER, IF A FILE HAS A CORPORATE OVERLAY THAT IS NOT
NECESSARILY FOUND AS AN APPROVAL IN THE SECTION 184
HAND BOOK, THEN WE WOULD EXPECT THAT FILE TO BE
SUBMITTED TO A HUD UNDERWRITER WITH AN EXCEPTION
FORM SIGNED BY THE APPROVED DIRECT GUARANTEE UNDERWRITER
AND THE DATE TO GIVE SOME INDICATION THAT THAT FILE DID 39
GO THROUGH AN INTERNAL REVIEW AND THE DECISION WAS MADE TO
SUBMIT IT TO HUD. WHAT I WOULD LIKE TO ADHERE,
HOWEVER, IS THAT WE DO HAVE AN INTERNAL CONCERN ABOUT A
CATEGORY OF FILES THAT WE DO SEE, AND THAT IS THE FILE
THAT CLEARLY IS NONCONFORMING IN SEVERAL AREAS THAT ARE
REFERENCED IN OUR HUD HAND BOOK IN SECTION FIVE, AND A
DECISION IS TRANSFERRED FROM THE DIRECT GUARANTEE
UNDERWRITER TO THE HUD UNDERWRITER TO ACTUALLY
DECISION A FILE THAT WE BELIEVE SHOULD HAVE BEEN
DECISIONED EXTERNALLY WITH THE LENDER RATHER THAN
CERTAINLY. WHAT WE WANT TO MAKE SURE WE
SAY IS THAT WE DO SUPPORT THE APPROVED DIRECT GUARANTEE
UNDERWRITERS, WE SUPPORT YOUR DECISIONS, WE ARE PARTNERS
WITH YOU IN REACHING THE DECISION MAKING PROCESS,
HOWEVER, YOU ARE FULLY EMPOWERED TO MAKE DECISIONS
BASED ON THE POLICES AND TECHNICAL ASSISTANCE WE HAVE
GIVEN YOU TO MAKE APPROVALS, DECISIONS, BUT ALSO,
REJECTIONS AND DENIAL DECISIONS FOR WHATEVER THE
REASON WHERE APPROPRIATE. SEND OUT YOUR DENIAL LETTERS
FROM THAT POINT, AND NOT SUBMIT THE FILE TO HUD.
SO WE WILL CONTINUE TO WORK WITH YOU AND ASK YOUR
COOPERATION TO FULLY DEFINE THE DEMARCATION LINE BETWEEN
WHAT SHOULD BE SUBMITTED TO HUD UNDERWRITERS FOR HUD
UNDERWRITING AND WHAT SHOULD BE RETAINED EXTERNALLY FOR
INTERNAL REVIEW. WE WOULD ALSO LIKE TO REMIND 40
OUR DIRECT GUARANTEE UNDERWRITERS THAT THERE ARE
AUTHORIZATIONS AND APPROVALS THAT WE HAVE EMPOWERED YOU
WITH, AND WE SUPPORT YOU WHOLEHEARTEDLY IN USING THAT
AUTHORITY TO ORDER YOUR COHORT NUMBERS, AND AGAIN, I
WILL REMIND YOU THAT THE DOCUMENT THAT WE ARE STRONGLY
ENCOURAGING YOU TO SUBMIT IS THE DRAFT HUD COMMITMENT
DOCUMENT WITH A SIGNATURE AND A DATE, WITH ALL OF YOUR
CONDITIONS TO MICHAEL THORP IN WASHINGTON, D.C.
WE HAVE EMPOWERED YOU TO CLOSE A LOAN AFTER AND ONLY
AFTER, I WILL REITERATE, YOU HAVE RECEIVED A COHORT
NUMBER. WE HAVE EMPOWERED YOU TO
SUBMIT ALL YOUR ENDORSEMENT FILES FOR ISSUANCE OF THE
LOAN GUARANTEE CERTIFICATE. AND I WOULD LIKE TO JUST ADD
A MOMENT OF CLARITY HERE TO WHAT WE ARE LOOKING FOR WITH
THE SUBMIT OF YOUR ENDORSEMENT FILES.
IF YOU ARE A DIRECT GUARANTEE UNDERWRITER AND YOU HAVE
APPROVED A FILE AND YOU HAVE CLOSED A FILE, IN ORDER TO
RECEIVE YOUR DIRECT GUARANTEE CERTIFICATE, YOU ARE ASKED TO
SUBMIT THE ENTIRE LOAN ORIGINATION FILE WITH ALL OF
THE RELEVANT ATTACHMENTS AND DOCUMENTATIONS, AS WELL AS A
COMPLETE LOAN CLOSING FILE WITH THE APPROPRIATE
CHECKLIST. WE STRONGLY ENCOURAGE YOU TO
STACK THOSE DOCUMENTS IN THAT FILE IN THE APPROPRIATE
CHECKLIST ORDER, BECAUSE IT PROVIDES AN ADDED LEVEL OF
EFFICIENCY. IF A HUD UNDERWRITER HAS 41
APPROVED YOUR FILE, WE ARE THEN ASKING YOU TO SUBMIT
ONLY THE CLOSING DOCUMENTS TO THE APPROPRIATE ADDRESS AS
REFERENCED IN YOUR HUD-ISSUED COMMITMENT.
THE ENTIRE COPY OF THE ORIGINATION FILE IS ALREADY
ON FILE, AND IT WILL THEN SPARE YOU DUPLICATION OF THAT
FILE AND IT MAKES IT A LOT EASIER TO MERGE ONLY THE
PERTINENT DOCUMENT TOSS ENDORSE YOUR LOAN.
FOR ALL OF OUR DIRECT GUARANTEE UNDERWRITERS WHO
ARE IN THE TEST CASE PHASE, YOU, TOO, I ASK TO ONLY
SUBMIT TO YOUR REVIEWER FOR THE TEST CASE PROCESS YOUR
CLOSING FILE WITH ALL THE APPROPRIATE DOCUMENTATION.
YOUR FILE ALSO IS RETAINED IN HOUSE AND IT WOULD PREVENT
DUPLICATION FOR YOU TO SUBMIT AN ENTIRE ORIGINATION FILE.
>> EXCUSE ME YVONNE. I'D LIKE TO ADD, WHAT YVONNE
WAS TALKING ABOUT, WHEN YOU SEND THAT FORM TO SCOTT OR
MIKE, AFTER THEY ISSUE YOU A FIRM COMMITMENT AND COHORT,
IF THERE IS A CHANGE AND AN INCREASE IN INTEREST RATE, AN
INCREASE IN LOAN AMOUNT, OR ADDITION OR DELETION OF A
BORROWER YOU SEND THAT BACK TO HUD PRIOR TO CLOSING.
OTHER CHANGES SHOULD NOT COME BACK TO US.
WE DON'T HAVE THE STAFF OR THE CAPACITY.
>> RIGHT. >> SO IF YOU HAVE A FIRM
COMMITMENT AND AGAIN, NO INCREASE IN MORTGAGE, IN
INCREASE IN INTEREST, NO CHANGE IN BORROWER, YOU AS
THE UNDERWRITER ARE RESPONSIBLE FOR MAKING THAT 42
CHANGE, REDOING OR FINALIZING YOUR MCAW AND ENSURING THAT
ALL CHANGES WERE SUBMITTED WITH THE ENDORSEMENT FILE.
THANK YOU. >> AND FOR OUR UNDERWRITERS
WHO ARE EITHER COMMONLY IN THE TEST CASE PROCESS OR
PENDING REQUESTS TO BEGIN THE TEST CASE PROCESS, VALERIE IS
GOING TO SHARE SOME PERTINENT INFORMATION WITH YOU ABOUT
ORIENTATION SO THAT WHEN YOU ARE READY TO UNDERWRITE
LOANS, HOPEFULLY YOU WILL HAVE CLARITY AS TO HOW YOU
PROCESS YOUR CLOSING. >> THANK YOU.
JUST TO CONTINUE WHERE I LEFT OFF, REGARDING THE PROCESS, I
DID MENTION THE REQUIREMENTS FOR THE NEW D.G. UNDERWRITERS
AND NUMBERS OF FILES IT'S REQUIRED TO SUBMIT, HOWEVER,
I FAILED TO MENTION FOR THOSE UNDERWRITERS THAT ARE ALREADY
APPROVED AND BEEN OUT OF THE LOOP FOR ABOUT SIX MONTHS,
THE REQUIREMENT FOR THOSE UNDERWRITERS, THREE FILES
SUBMITTED. PLEASE KEEP IN MIND, THAT
NUMBER FIVE FOR NEW D.G. UNDERWRITERS AND THE NUMBER
THREE FOR PREVIOUSLY APPROVED IS NOT A NUMBER THAT'S ETCHED
IN STONE. COULD YOU SUBMIT LESS THAN
FIVE IF I SEE THAT MAYBE THE FIRST THREE ARE GOOD?
YES. YOU CAN FLY WITH YOUR
RELEASE. COULD IT BE LESS THAN THREE
FOR A NEW -- I'M SORRY FOR A PREVIOUS UNDERWRITER?
YES. CONSEQUENTLY, IT COULD BE
MORE AS WELL. SO THOSE NUMBERS ARE JUST 43
BENCHMARKS. WE LOOK FOR IT TO BE FIVE AND
NO MORE THAN FIVE AND NO MORE THAN THREE, BUT THERE COULD
BE SOME FLEXIBILITY AS THE NEED WARRANTS.
TO GO A LITTLE BIT INTO WHAT'S REQUIRED IN WHAT YOU
WILL FIND WITH THE CONFERENCE CALL, AGAIN, WE REQUIRE THAT
THE UNDERWRITERS PARTAKE IN THAT CALL AND BRING IN THE
CLOSERS AND WHY I SAY CLOSERS, SOMETIMES, ONCE THE
UNDERWRITER IS COMPLETE WITH THAT FILE, IT'S PASSED ON TO
ANOTHER STAFF MEMBER AND THE UNDERWRITER HAS NO IDEA WHAT
GOES ON FROM THAT POINT, SO WE NEED TO KNOW THAT THE
CLOSER AS WELL KNOWS THE REQUIREMENT AS FAR AS THE
STACKING ORDER, THEY ARE TO GET A COPY OF OUR LIST OF
EXACTLY WHAT WE ARE LOOKING FOR WHEN THAT FILE IS
PRESENTED TO US. WE SEPARATE THE NEED FOR TEST
CASE FILES AS FAR AS THE DOCUMENTS, PLEASE, AND I
REITERATE, PLEASE, ONLY SEND THE CLOSING DOCUMENTS ON TEST
CASE FILES, BECAUSE WE ALREADY HAVE THE CREDIT
PACKAGE, SO WE DON'T NEED DUPLICATES.
PLEASE, ONLY SEND THE CLOSING DOCUMENTS.
YOU WILL BE REQUIRED TO SEND THE WHOLE CREDIT PACKAGE ONCE
THE UNDERWRITER HAS BEEN RELEASED AND YOU WILL SEND
YOUR PACKAGE TO YOUR POINT OF CONTACT PERSON AND WE WILL
TALK ABOUT THAT A LITTLE LATER.
OKAY? YOU WILL ALSO RECEIVE A
PACKET, USUALLY PRIOR TO YOUR CONFERENCE CALL. 44
IN THAT PACKET, YOU WILL GET A COPY OF THE FORMS THAT WE
USE AND THE MCAWS, THE DEPARTURE LETTERS, LENDER
SUBMISSION AND ON AND ON AND ON.
WHEN YOU RECEIVE THAT PACKAGE, TAKE A LOOK AT IT.
ANY QUESTIONS, JOT IT DOWN, AND WE CAN ADDRESS THOSE
QUESTIONS DURING OUR CONFERENCE CALL.
THEN YOU WILL KNOW, AGAIN, AS FAR AS THE TURN TIMES AND
WHAT TO EXPECT, 3-5 DAYS FOR BOTH, UNDERWRITTEN, AND ANY
CONDITIONS THAT YOU DO SEND TO US.
THE TIME IS THE SAME. YOU WILL BE GIVEN A LIST OF
WHO YOUR POINT OF CONTACT PERSON WILL BE, THEIR NAME,
THEIR ADDRESS AND PHONE NUMBERS, ONCE YOU HAVE BEEN
RELEASED FROM THAT PROCESS. OKAY?
AND THAT'S VERY IMPORTANT TO MAKE THAT RELATIONSHIP WITH
THAT PERSON, BECAUSE THEY WILL BE THE PERSON THAT YOU
WILL REALLY BE IN CONTACT WITH ONCE THOSE FILES ARE
SUBMITTED FOR ENDORSEMENT. ANY QUESTIONS, ANY ISSUES,
ANYTHING, MAKE A RELATIONSHIP WITH THAT PERSON FROM THAT
POINT ON. OKAY?
AS WELL AS THE QUESTIONS YOU MAY HAVE THAT CAN GO TO
E-MAIL. BUT IT'S VERY IMPORTANT TO
KNOW YOUR POINT PERSON FOR
THAT PROCESS. >That is to be done by sending
written notification via e-mail to either Michael Thorpe or
Scott laliberty with the specifics as far as name, case
number, and the reason that you will no longer need those
numbers. That will be an enormous aid in
allowing us to do appropriate funds management to make sure
the cretter authority -- credit authority that is needed for
viable projects will always be there.
So we absolutely request your assistance with that and we can
better serve you. I'd like to raise for you some
direct guarantee underwriter resources.
The first one is the section 184 processing guide.
I have worked so closely with all of you and what you all know
about most of us at the table is that when we provide you with
technical assistance, we try very hard to give you the
references in the body of the guide document so that when that
issue reemerges, you will have a resource point.
I strongly encourage all of you to keep a copy of the guide at
desk level, and I laugh when I say desk level because even
though I'm one of the hud underwriters, my guide is at
desk level, and I need that for some of the good questions you
send into me all the time. So to me, a guide is a partner's
best friend. So the processing guide, please
use it. I encourage you.
To those of you who have trouble finding it, send that in as a
question and we will send you a web site where you can find
that. We have an appraising mailbox,
and that number is reference for you.
And what I want to tell you about the references especially
the mailboxes is we take these seriously.
We access these many times during the day because we know
the time for you is money. And when a question comes from
one of you, the person assigned to that mailbox actually does
make that a priority. So please use that.
It is a positive and effective resource tool.
The technical assistance mailbox, a salute to all of you
for using that. You have helped make that a
learning tool for ourselves as well.
Well thought out, detailed questions you send to the
mailbox. Thank you for that.
Some of those questions have caused us to find a need to
clarify existing policies, so
we have what we think is the
resource. We won't call his name, but if
you've ever used him, it can't replace him.
But it'll help you with that. And then of course, there is the
underwriting staff. When we say that our phones are
available to you, our e-mail is available to you, we say that to
you with all honesty and sincerity.
And most of you who use the underwriting staff for technical
assistance questions find us to be responsive.
You will notice, however, that we're there last, and that was
because we firmly believe if you can use the resources we've
allocated to you, most likely, you will find the answer to your
questions among them, but if you can't, we are here to help you.
>> Just had one quick comment. DeAnna opened by saying that
effective October 2013, the lending training will be put on
you the lender with the exception of DG, that will stay
in place going forward until further notice.
>> Thank you. >> Okay.
>> I would also like to chat with you about the endorsement
process and submission of your endorsement files to hud.
I will begin this process by saying probably with everything
that you do with us, I would bet that you consider this process
to be among the the most valuable because this is the
completion of all the work that you've done, and it represents
your commitment to us. Where should you ship your
endorsement file once a loan has been closed?
That question comes to us a lot, and it should come to us a lot
more. And we can say the reason for
that is because we receive in all of the offices we have to
reroute in order for them to be processed efficiently, and we
know what that represents for you is a loss of time and time
again is money in our industry. So when should an endorsement
file be sent? If the endorsement file was
approved and a cohort firm commitment was issued by a hud
underwriter, the mailing address should be referenced in the body
of the hud firm commitment. I'll say that again.
I do realize before I say this that there is not always a
necessarily a coordination of partners internally from the
partner who approved the loan to the partners who packaged and
ship the loan. But it is important to say that
we believe that the overall oversight responsibility for
making sure that everything that is needed in the file and that
that file arrives at its appropriate destination begins
with the direct guarantee underwriter who then becomes.
>> I will reiterate your endorsement file only directly
to your reviewer who will then review it for compliance with
the policies, procedures, and with the firm commitment that
was issueeded and the loan certificate will be issued back
to you the reviewer. Once you leave test case status,
you receive your hooray letter from either Valerie or my --
myself. You then send all of your
endorsement files that you are now independently approving, ask
congratulations to you for that to your internal section 184
contact person assigned to your lending organization.
When the file should be shipped to us no later than 60 days from
the loan closing date. That's important because we
consider it to be a late file subject to fees and penalties
after the 60-day period. If a file arrives 60 days after
its closing date, and we always can tell from your notes, then
you will need to provide a payment history.
It is considered to be a late endorsement, and at that point,
all of the late endorsement processing as referenced in your
processing guide becomes applicable.
Something that is extraordinarily important is
that your fee must be paid after closing to the pay.gov using the
pay.gov process. We are not able to issue any
loan guarantee certificates unless there is documented
evidence that the fee has been received.
We encourage you to include a copy of the confirmation you
receive from the system when you pay your fee.
It should be in the front of your endorsement file and
submitted with that file so that we have a record of when you
paid it. If there is ever a need to track
it. If it's not credited for some
reason as there has been. We discussed the mortgage
payment history, and if we ask for a mortgage payment history
for late endorsement, it will be required to date obviously, and
evaluation of whether that file is eligible or not for a loan
guarantee certificate will be made.
And there are files that we receive when we review them that
are really not eligible for endorsement at that time because
of missing documentation, and that is due to outstanding
items. And I want to raise the missing
documentation and outstanding items is an area of concern for
us sm -- We know it's an area of concern
for you, but one we fully believe is completely fixable as
it were. There are check lists, many of
the missing items that we see when we review a file occur
because there is no check list to prompt whomever is packaging
and processing that file after what item should be there.
When a file comes in for endorsement review and items are
missing, it goes into suspense. It no further actions is taken,
we notify you immediately at the end of the review as to what the
items are. We request those items, and then
we allow up to about 30 days, we strongly and fully and in
partnership encourage you to submit those documents to us
within the 30-day period to prevent further action from the
file. When the files come in for the
internal review process, and it is assigned to a reviewer, we
must require a lender contact sheet with each file so we know
who to call and whom to contact. One of the things that occurs
mostly with the files I review is I don't know who to contact
sometimes to request documentation.
So if you as the direct guarantee underwriter would
perform in-house as the team leader and work with your
processes and work with the closers to send us complete
files, then you have our commitment to process those
files as efficiently as possible and to get your loan guarantee
certificates to you quickly. Okay so we will talk again about
the submission of the files, the proper order.
As I stated earlier, we're looking for complete file
packages for test case specific. Please only send, again, I have
to repeat, please only send underwriters for yourself,
underwriters please tell your closers to please only send the
closing documents for test case only, okay?
I do not need a whole credit package.
However, once you have been released, please send the full
credit package. Both property and the credit,
okay? In the correct order.
To your appointed person of contact.
I also need to stress we are looking for final document.
I am looking for final Mcaw. Sometimes with underwriters you
go through changes during the transaction, and we understand
that, but when you send your final package, please be sure to
send me the very last, the very final Mcaw that will match the
note and your firm commitment. Often times we do see a
discrepancy in our package when we get them, which unfortunately
delays the receipt of a loan guarantee.
It's important to get all the ducks in a row when sending your
final package. Okay.
The endorsement check list. If in the event you don't have
it, please shoot us an e-mail or a call or something, we will
make sure you get it so you have it.
It's very important that it's submitted in the proper order.
I know Yvonne could probably concur.
It helps me to zoom to those pages really quickly to get it
back to you. It's very important to have it
submitted in the proper order. Okay?
The LG is submitted to you electronically.
Back when I started I guess two years ago, they were sent out
via mail, but we're moving up to the 21st century.
How about that? So we are sending things over
electronically. YAY.
If in the event you don't receive it, pick up your phone,
call the POC, we encourage that. You will also note a change with
the -- they no longer disclose a full Social Security number.
That's part of the privacy act where we're getting in gear with
that as well. You will only see the last four
digits of the borrower's Social Security number, okay?
The rest of the numbers will be X'd out.
Okay? Any questions?
Any concerns? Any comments you may have
regarding that process, please address them to section 184 DG
question.gov, okay? But again we are here to answer
questions. The test case process for the
endorsement is just as important to Yvonne and I as the actual
reviewing of the file, okay? That whole process needs to run
should flow just as easily as review of the initial file prior
to closing. Okay?
And I think we're ready to move on.
>> I think we have a question. I believe we've had some
questions, so crista Johnson is going to read those now.
>> The first question we have is if a sponsor denies a file and
the lender disagrees with the decision and insists the file
goes to hud, what should the procedure be?
>> And I would like to answer that question.
If a sponsor denies a file, the underwriters for that sponsor is
an approved DG lender for hud. I have stated at the beginning
of our conversation together today that we fully support our
direct guarantee lenders, and we as the full team of hud
underwriters believe that that is a denied file.
We would like the partners of our sponsors to honor the
sponsor's decision and not submit those files to hud
because hud has decisioned the file.
The sponsor represents hud, and thank you for the question.
>> Our next question is along the same question of denials.
The question states, do we send our denial of a case to Michael
Thorpe to cancel the case numbers?
And will a new case number be able to be issued if the
borrower goes to another lender? >> Thank you for that question.
I'll go ahead. If a lender denies a loan, then
we ask that you e-mail that box where you received your case
number and/or your cohort, identify the case number, the
applicant's last name, and identify that you're denying it.
You don't have to give us your full details, but you can
disclose denied for credit, denied for evaluation, denied
for assets. We will enter that information
into your chum system, so in the system, we will cancel the case
number, and in a lower box, we'll identify that in fact it
was denied as opposed to being canceled.
If at a later time that applicant tries to go to another
lender and we go to enter their name, their name should be
cross-referenced and that would prevent that from being --
prevent from another case number being assigned.
Okay? Thank you.
>> The next question came in from Alaska, and it states
Valerie said we have to send condo loans to hud for approval.
We have been told that the DG underwriter can do their own
condo loans in Alaska. >> Okay.
I think that was Yvonne that may have said that, I don't know.
[Laughter] >> We're in this together.
You're going to add names, are you?
[Laughter] >> Well, we're currently
approving FHA approved condos, first and foremost, okay without
hud review. Okay?
A condo that has previously FHA approved as you will note on
their web site, okay, were fine. Now, as far as Alaska.
>> Yeah. We, and Valerie's absolutely
right, and one of the things that I mentioned the DG lenders
are not authorized to do is underwrite condo loans.
I should've said except for in the state of Alaska, and that
reason is because the approval requirements in the state of
Alaska far exceed the approval requirements and the overlays
that the section 184 program places on condominium
properties. So we accept those because we
have a lot more detailed submission to the Alaska -- the
state of Alaska housing finance agency.
So underwriters in the state of Alaska we hope are happily
approving loans that are, that include condominium properties.
>> Okay, we have another question here.
It states will the webcast be available online later for
viewing? >> And the answer is yes.
The webcast will be available later online for viewing.
It will be archived. And we will provide the
information to you as far as how to access that.
Thank you. >> Is there a PDF version of the
184 handbook guidelines available for download?
>> Wow. Way to stump the underwriters.
[Laughter] You know what?
Currently, the answer's no. However, when we provide an
updated version, we will surely convert that to PDF, yes.
>> Absolutely. >> Anymore questions, KRISA?
Okay, now we are going to switch.
We'll be doing a presentation on the bureau of Indian affairs.
>> Hello, everyone, I'm an dreeka wagstaff, and I've been
asked to speak on BIA roles and responsibilities for the section
184 program. The BIA is a federal government
agency inside of the department of interior.
The department of interior has partnered with hud, the office
of native American programs, to assist the tribes and their
members with housing assistance This presentation here is not a
catch-all, but I just want to give you information.
Feel free to e-mail me. My hopes is that you can
understand the BIA and their roles and responsibilities, and
our hopes is that the lenders would do more section 184 loans
on tribal land. The BIA serves as a trustee for
tribal trust land. Trusts hold in the United States
government for the use of the tribe.
The BIA approve and record leases and mortgages, and they
provide certified CSRs to the lenders on mortgages done on
lotted land on tribal trust land.
Lotted land are kind of different when it comes to BIA.
Again, this is not a catch-all. You can e-mail me, and I will
explain why. But allotted land zones,
mortgages, must go through the BIA for their review and
approval. But we can discuss that if you
e-mail me. The BIA has land, title, and
record offices which we refer to as LTRO.
They're located in eight of the 12 regional offices.
And these eight regional offices is 98 realty offices that is
known today to us as the agency. This is the agency's roles and
responsibilities is to form our lenders to send in their written
requests to receive the initial TSRs as well as the getting
their mortgage record. These 98 realty offices is
located throughout the United States.
Each realty office do a little something different, but they
all have the same guidelines. And I know you have done loans
on tribal trusts. You're having issues with trying
to get the TSRs, and today I'm working closely with trying to
establish a relationship with these 98 realty offices so that
we can move these TSRs in getting them recorded a lot
faster, so we can get your loan guarantees to continue in a more
timely manner. And we do apologize for this
delay. Okay, the land title and records
offices hold over 200,000 tracks on Indian trusts and restricted
land. These certificates that they
hold we call them title status reports.
Now, the initial certified TSR must be requested from the BIA
at the time of the loan application.
The initial TSR has to be certified, and the reason why
you get this, it's kind of sort of like the preliminary title
policy report. You need to have that in order
for us to do the loan. The section 184 policy is that
the initial certified TSR must not be older than six months or
less for allotted and 12 months or less for tribal trust.
If you have any questions about the dates on these TSRs please
do not hesitate to e-mail me and I will explain it to you
further. Hopefully coming up we will have
a webinar strictly for doing loans on tribal trust land
because this is a lot of information, and I'm running
through it, but if you have any questions, I can slow it down
and explain to you in detail what you need to know.
The certified TSR is required by the lending institute to verify
the loan applicant has required a lease hold interest on tribal
land or that the loan applicant has total ownership of the trust
land and that the title is clean and clear of any liens against
the property so that the loan application process can move
forward. The final certified TSR
endorsement. Once the loan has closed, you
the lender will need to send a written request into one of the
BIA's 98 realty offices. Let me explain these realty
offices. Department of interior has
tribal directory that comes out every year.
In this tribal directory, if you e-mail I will send you the link
to the tribal directory. It has all the 98 realty offices
known in this book as BIA representatives.
They are the superintendents that sign the release for the
land and title office to record your mortgage.
The realty office will need to know it's a section 184 mortgage
that you're requesting. In your letter you need to let
them know it's a section 184 home loan mortgage.
They also need to know the tract number and the land and tract
number. The address you can let them
know but they do the search in their system through the tract
and land number. This number is on the front page
of your initial TSR. If you have questions about
locating it or what to include in your letter, please don't
hesitate to send me an e-mail. Before the section 184 loan
guarantee can be issued on tribal mortgages, we must
receive a copy of the TSR showing that the borrower's
mortgage was recorded and that the mortgage is being
refinanced, the TSR must show that the first mortgage was paid
off removed, and released. We have a lot of refinances on
tribal land, and I know you have got the recorder TSR, and you've
sent it into me. However, if there are two
mortgages for the same borrower for the same parcel of land
showing on a TSR, we cannot issue the loan guarantee
certificate. We must see that the first
mortgage was released and removed, and in order to do
that, the satisfactory of certification of mortgage, I
know that some are getting record with the county and I am
not going to say don't do that, but the satisfactory mortgage
and the reconveyance documents must be sent into the BIA along
with a copy of the note, we need true copies of the note, the
writers, the -- the riders, the lease, and we need a copy of the
initial TSR that they sent you in the beginning.
So when you send in these documents, they are recorded,
and they will release the first mortgage.
Again, this is not a catch-all. If you have any questions and/or
concerns, please feel free to e-mail me or send a message to
the section 184 DG questions and I am sure it will be forwarded
over to me. Again, thank you.
>> Thank you, ANDRIKA. Okay.
What you're seeing now is a list of resources from the BIA.
Anyone want to address some of those.
>> Yes. BIA in the federal register as
of march the 3rd I believe, 2013, the notice states that
there are 566 federally recognized tribes.
They are 566 federally recognized tribes, however,
there is only 190 that is approved to do 184 section
loans. There are 12 regional offices.
However, only eight of these offices which are the land and
title and record offices handle the tracts for TSRs on tribal
land. That's it.
>> The only thing I would like to add on the list of federally
recognized tribes, the BIA issues that list annually, every
year, and last one came out in may of 2013, okay, and for
lenders oftentimes if you receive a tribal I.D. card from
an individual, and you're not sure that this tribe is a
federally recognized tribe, then you would refer to this
resource. Use some caution.
If you are looking for a tribe and say for example the tribe is
chocktaw, so initially you will go to the Cs because this list
is alphabetically. If you don't see it under the
Cs try searching under the. Some of the tribes were listed
under the word the first. So when you don't initially see
it try the word the and look again.
If your tribal member is not listed on this list of federally
recognized tribes or a member of five state recognized tribes,
which I will address in a minute, then he or she is not
eligible to proceed. Okay?
And the state recognized tribes, stay with me here, folks,
anybody got them in writing. Okay, I'm stumped all
of these state recognizes tribes are
eligible to apply for a 184 loan and the reason being is these
tribes actually receive what we call native American housing and
self-determination act funds which makes them eligible for
184 loans. Okay, frequently asked question
we have how do you verify the applicant is a tribal member and
do both applicants have to be a member of the tribe.
And the answer is, somewhat already addressed that, saying
first and foremost you can determine if they're eligible by
receiving a copy of their I.D. card, and cross-referencing it
with the list of federally recognized tribes.
Only one of the applicants has to meet this criterion.
So if you have a coborrower he or Smee -- she can be non-ind
ynd -- non-Indian or not enrolled.
As you can see here is the list of federally recognized tribes
that I was struggling to recite. Use your resources, right.
If they are a member of one of these state recognized tribes,
again you can proceed. Here is a list of forms of
different types of forms to determine someone else is
enrolled. Often what we see is a photo
tribal I.D. card or a I.D. card without a photo.
It identifies the name of the tribe, the enrollment number,
normally has the seal of the tribe and/or signed by a
representative of the tribe. In situations where there is
information on both sides, make sure that your file includes the
front and back of the tribal I.D. card.
Okay? Other tribes and I'll use Navajo
for reference they don't issue tribal I.D. cards they do it in
a letter or narrative format. So in this particular situation,
you will see where someone is enrolled with this particular
tribe, you will see their seal on the top left or top
right-hand corner and again in the signed, identifies the
enrollment number. Let me state here hud 184
doesn't determine enrollment. A lot of times we will get
inquiries from a loan officer and/or a tribal member that asks
how do you get enrolled with a particular tribe and/or what is
the necessary blood quantum and again we will refer them back to
their tribe and the tribe makes the determination of who is or
is not enrolled, what is applicable blood, et cetera.
Sometimes you will receive what's called a CDIB card which
stands for -- jeez. Certification degree of Indian
blood. This is not an acceptable form.
It does not determine enrollment, okay?
In situations where you're not familiar, feel free to again
send that identification that you've received, ideally you
should send it at the same time you're requesting a case number
or prior to issuing -- requesting a case number, right?
Sending that identification, we will attempt to answer it and/or
we'll refer it to your staff members out in the field and
confirm if they're able to proceed.
Okay. Questions from the audience?
>> We have another question that's come in, and it says
please address your policy on collections.
Also, particularly an older collection that has been paid
off in the last 12 months. >> Okay.
I'll address that. Thank you.
Okay. For DG underwriters, you have
been empowered as we indicated before to make a decision to
underwrite with prudence your decision on why you're going to
approve that loan. Now, there is guidance regarding
collections. However, we encourage you to
look at that guidance as a benchmark and review that whole
file and, and the integrity. For example, you may have
someone where LGB is good, credit score, although we are
not a credit score driven program but it's an indication
of the character of that borrower.
You may have reserved. You may see on the credit report
everything is fine with the exception of one blemish.
That blemish could be a collection.
It could be a medical. It could be within a year.
It could be within a few months. We encourage you to look at the
whole picture, okay? And not to ding the borrower
based on that one collection. However, if you do see on the
credit report a history of collections, be it over the
past, three, four years, it could've been something that
reoccurred, and then you may see that they don't have the history
of paying their rent, you pretty much have an indication that
that collection pretty much follows suit of them not being a
credible borrower. So we encourage you to look at
the big picture. Now, you may ask yourself was
the collection, be it one, is it over $1,000?
Is the borrower required to pay or not?
We ask that all collections are paid prior to or at closing,
especially over $1,000. And with that, it's because they
may turn into a lien that we don't want to deal with in the
future, okay? We're not here to play
collections agents or attorneys, but at the same time, we have to
protect our interests going forward in the property.
>> ValORIE, may I touch -- add something to that.
I think the first part of the question said what is our
policy. I told you, I love the guide,
and so section 5.3 of the guide clearly states our policy on
collections as being no collections within the 12 months
prior to submitting the loan application.
However, what I'll say is that after you've exercised your good
judgment and made a decision, you do then need to reference
your reasons for making an exception as it were to policy.
In the exception section of your hud commitment.
We will reference this for you when we issue your cohort number
and your firm and provide all of the backup documentation that
helps you make that decision as part of your origination file.
>> Our next question is regarding cashout refinances.
Are cash outs subject to a lower debt to income requirement?
If so, what is the maximum DTI allowed?
>> I'll take that one. Thank you for the question.
The depth to income requirements for cash out refinances is 41%.
That is the maximum. I will also say that there are
no waivers/exceptions granted for a cash out refinance
transaction. Hence, the maximum debt to
income ratio in force for the program applies without any
waivers to that transaction, and it is 41%.
>> The next question is where can I find a copy of the section
184 handbook guide? >> It can be located on our web
site. However, I am happy to announce
we are in the process of updating our web site and our
guidelines, so stay tuned. The best is yet to come.
>> As well as other resources. So everything that we've
referenced today and/or we maybe fail to reference it but meant
to, we have added, for example, what we call OMB form numbers on
every single one of our forms, so they're not available
actually out at hud web site. We will put them on the 184 web
site as well. We are also going to send them
to you at the conclusion of the webinar.
So we will send you the PowerPoint presentation.
We will send you every form applicable to the 184.
We're going to send items that we reference, such as departure
residence, coborrowers, et cetera, Mcaws, participating
lenders, federally recognized tribes, et cetera.
We will send it to you directly and place it on the web site.
Also I want to reiterate we will send you an evaluation/survey
form. There's ten questions on there.
The purpose is did you like this form of presentation.
Was this helpful? Whether from trying to get into
the session and having some difficulties to what the session
provided. Future sessions you would like
to see. Frequent wasn't.
Would -- frequency. Monthly would be pushing it, to
be quite honest. Quarterly.
>> And the time of the month too.
What's a good time for you to have such a webinar and the
length of the training. >> Right.
Like, for example we wouldn't do it at the end of the month,
right, when everybody's crunching to close out their
books. I know all of you were
anticipating and hoping to hear. Again, we're still not able to
refinance in fee simple. For that I apologize.
We too were hoping that would be something that would have been
approved, and we were able to proceed.
We are addressing that issue, and we are hoping to resume
refinancing. But as of today, I cannot give
you the authority to proceed. But once we do know, you will
know. Okay?
>> And I'd just like to add one thing about your survey.
If that question is not there, let us know the, what length of
time works best for you. One hour, 30 minutes, 45
minutes, that will be very much helpful as we anticipate moving
forward and structuring technical assistance in this
format. So thanks so much for sharing
with us. >> Okay.
And this is for list of resources.
It will be made available to you.
Okay. Location, where to find the
approved forms, and there we go. So at this time, I would like to
thank you. Thank you for your time.
For your support. >> Thank you.
>> Patient interest. We'll look forward to hearing
your feedback. You didn't get to see her, but
CRISA was funneling our questions and making sure the
PowerPoint slides appeared so we want to thank her as well.
And does anybody have anything else?
Okay. >> Look forward to further
business with you. Thank you.
>> Appreciate it. >> Thank you.