Utah Housing Corporation Selling Supplement to the Participation Agreement Mortgage Banking Department 8/6/2020
Selling Supplement
Introduction
2479 S. Lake Park Blvd. West Valley City, UT 84120 P801.902.8200 F 801.902.8327 www.utahhousingcorp.org
Mortgage Banking
All Reference to Conventional and the NoMI Loan program have been temporarily eliminated from the Participation Documents.
Announcement: April 30, 2020 Suspension of the NoMI Program
NoMI
Due to current market conditions and increased risk to Utah Housing associated with NoMI loans, Utah Housing is suspending its conventional NoMI Loan program effective for all Mortgage Purchase Agreements (MPA) requested on or after June 1, 2020. MPAs issued on or after May 1, 2020 will not be eligible for a 30 day interest rate extension.
Although the NoMI Loan program is suspended indefinitely, we hope to be able to reintroduce it or something similar in the future.
Utah Housing values its ongoing partnership with each of its Participating Lenders. If you have any questions regarding this memorandum, please contact Deon Spilker, Vice Present of Mortgage Banking, via e-mail at [email protected]
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 1 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Introduction
Table of Contents
Section 1 Introduction ...... 7 1.1 Utah Housing Corporation Overview...... 7 1.2 Definitions ...... 7 1.3 Announcements, Notices, and Amendments ...... 7 Section 2 Lender Participation ...... 8 2.1 Evaluating Creditworthiness ...... 8 2.2 General Information ...... 8 2.3 Participating Lenders ...... 8 2.4 Security Requirements...... 9 Section 3 Lender Restricted Access to Utah Housing Website ...... 10 3.1 Lender Security Policy ...... 10 3.1.1 Lender Authorized Administrator ...... 10 3.1.2 Authorized Administrator Responsibilities ...... 10 Section 4 Utah Housing Forms ...... 12 Section 5 General Loan Requirements ...... 13 5.1 Borrower Eligibility ...... 13 5.2 Construction to Permanent Loan ...... 13 5.3 Purchase Price, Income, and Loan Limits ...... 13 5.4 Occupancy ...... 14 5.4.1 FirstHome...... 14 5.4.2 Score, NoMI ...... 14 5.4.3 HomeAgain...... 15 5.5 Loan Payments and Terms ...... 15 5.6 Loan Assumptions ...... 16 5.7 Cash to Borrower ...... 16 5.8 Acreage Restrictions ...... 16 5.9 Mortgage Insurance and Guaranty ...... 17
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 2 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Introduction
5.9.1 FHA Mortgage Insurance ...... 17 5.9.2 Conventional Mortgage Insurance ...... 17 5.9.3 VA Guaranteed ...... 18 5.10 Attorneys-in-Fact and Power of Attorney ...... 18 Section 6 Utah Housing Loan Programs ...... 19 6.1 Utah Housing Loan Programs ...... 19 6.1.1 FirstHome Loan (FHA or VA) ...... 19 6.1.2 HomeAgain Loan (FHA or VA) ...... 22 6.1.3 Score Loan (FHA or VA) ...... 24 6.1.4 NoMI (Conventional) ...... 26 6.1.5 Reserved for Future Programs ...... 29 6.1.6 Second Loan, Down Payment Assistance ...... 29 6.1.7 Streamline Refinance ...... 31 6.1.8 Subordination of Second Loan ...... 32 Section 7 Underwriting Borrowers ...... 34 7.1 Income Analysis ...... 34 7.1.1 Qualifying Income (HomeAgain, Score, NoMI) ...... 34 7.1.2 Household Income (FirstHome) ...... 34 7.2 Ratios ...... 38 7.2.1 Housing and Debt Ratio ...... 38 7.3 Credit Underwriting ...... 38 7.3.1 Credit Score ...... 38 7.4 Foreclosure, Short Sale, Deed-in-Lieu, Bankruptcy ...... 40 7.5 Automated Underwriting Systems ...... 41 Section 8 Property Eligibility ...... 42 8.1 Residence Definition and Use ...... 42 8.1.1 FirstHome, Score, NoMI ...... 42 8.1.2 HomeAgain...... 42 8.2 Acreage Limits ...... 43 8.3 Rental, Seller Rent-Back ...... 43
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 3 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Introduction
8.3.1 FirstHome, Score, NoMI ...... 43 8.3.2 HomeAgain...... 44 8.4 Mobile Homes ...... 44 8.5 Manufactured Homes ...... 44 8.6 Cabins and Log Homes ...... 46 8.7 New Construction ...... 46 8.8 FHA Streamline 203(k) ...... 46 8.8.1 203(k) Escrow Repair Requirements ...... 46 8.9 Condominiums and Attached Planned Unit Developments (PUD) ...... 47 8.9.1 Reserved for Future Programs ...... 47 8.9.2 Fidelity Bond ...... 48 8.9.3 Project Title Insurance ...... 48 8.10 Appraisal Standards ...... 48 8.10.1 Appraisal and Residence Repair Requirements ...... 48 8.10.2 Acceptable Appraisers ...... 48 8.10.3 Minimum Property Standards and Conditions ...... 49 8.10.4 Escrow Funds for Repairs ...... 49 8.10.5 Environmental Hazards ...... 49 8.11 Residential Water Facilities ...... 49 8.11.1 Culinary Water ...... 49 8.11.2 Sewage Disposal Facilities, Propane Tanks ...... 50 8.11.3 Water Rights and Water Stock ...... 50 8.12 Mechanical and Electrical ...... 53 8.13 Insurance...... 53 8.13.1 Title Insurance ...... 53 8.13.2 Homeowners Insurance ...... 54 8.13.3 Condominium and Applicable PUD Homeowners Insurance ...... 56 8.13.4 Maximum Insurance Deductible ...... 58 8.13.5 Flood Insurance ...... 58 8.14 Standard Mortgagee Clause ...... 59 8.14.1 Assigns ...... 59
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 4 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Introduction
Section 9 Mortgage Purchase Agreement (Interest Rate Lock) ...... 60 9.1 Mandatory and Best Efforts Delivery ...... 60 9.2 Current Interest Rates ...... 61 9.3 MPA Requests ...... 61 9.4 Final Mortgage Delivery Date...... 62 9.4.1 Enter an MPA Request Online ...... 62 9.4.2 Documentation Required for Manufactured Homes ...... 62 9.4.3 MPA Modification ...... 63 9.5 MPA Delivery Date Extension...... 63 9.6 MPA Cancellation Requests and Non-Delivery Fee ...... 63 9.6.1 Cancellations and Non-Delivery ...... 64 9.6.2 Requesting another MPA for the Same Applicant ...... 64 9.6.3 Duplicate Social Security Numbers ...... 64 Section 10 Permitted Fees and Charges ...... 65 10.1 FirstHome Itemization of Origination Charge ...... 65 10.2 Permitted Fees First Loan ...... 65 10.3 Permitted Fees Second Loan ...... 65 Section 11 Closing a Utah Housing Loan ...... 67 11.1 Closing and MPA Consistency ...... 67 11.2 Loan Terms ...... 67 11.3 Loan Closing Documents ...... 68 11.3.1 Attorneys-in-Fact and Power of Attorney...... 68 11.3.2 Non-Occupant Co-Signer and Non-Occupant Co-Borrower ...... 68 11.4 Mortgage Closing Documents ...... 69 11.4.1 Closing Documents ...... 69 11.4.2 Manufactured Homes ...... 69 Section 12 Funding the Second Loan ...... 71 Section 13 Loan Delivery to Utah Housing ...... 72 13.1 Final Mortgage Delivery Dates, Extensions, Expirations, and Fees ...... 72 13.2 Lender Reaffirmations ...... 72
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 5 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Introduction
13.3 Lender Restricted Electronic Delivery...... 72 13.3.1 Uploading Files ...... 72 13.4 Submission Package ...... 73 13.4.1 Document Delivery ...... 73 13.4.2 Endorsement by Authorized Signers ...... 73 13.4.3 Recorded Deed of Trust ...... 73 Section 14 Pre-Purchase ...... 74 14.1 Package Reviews and Fees ...... 74 14.2 Mortgage Insurance or Guaranty Certificate ...... 75 14.3 Right to Reject ...... 75 Section 15 Mortgage Purchase ...... 76 15.1 Utah Housing Purchase and Disbursement of Loans...... 76 15.1.1 Purchase ...... 76 15.1.2 First Loan Purchase — Disbursement ...... 76 15.1.3 Second Loan Purchase — Disbursement ...... 77 15.2 Warehousing Banks ...... 77 Section 16 Mortgage Electronic Registration System (MERS) ...... 79 Section 17 Post-Purchase ...... 80 17.1 Incomplete Loans (Post-Purchase) ...... 80 17.2 HUD Mortgage Record Change Procedures ...... 80 17.3 Post-Purchase Documents ...... 81 Section 18 Regulatory Compliance ...... 82 18.1 Ability to Repay and Qualified Mortgage Rules (ATR and QM) ...... 82 18.2 Higher Priced Mortgage Loans (HPML)...... 82 18.3 Appraiser Independence ...... 82 18.3.1 Mandatory Reporting ...... 83 18.3.2 Selection of Appraisers ...... 84 Section 19 Appendix A: Utah Housing Fee Schedule updated 5/16/2019 ...... 85 Section 20 Definitions ...... 87
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 6 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Introduction
Section 1 Introduction
1.1 Utah Housing Corporation Overview
Utah Housing Corporation was created in 1975, by Utah legislation, to serve a public purpose in creating an adequate supply of money with which Mortgage Loans, at reasonable interest rates, could be made to help provide affordable housing for persons with low or moderate income. Utah Housing provides Mortgage money to qualifying First-time and repeat Home Buyers, as well as resources to developers building or renovating affordable apartment projects. In addition, Utah Housing assumes several roles, ranging from Lender to developer, in creating solutions for difficult housing problems. Utah Housing does not receive any funding from the State of Utah. It is self-supporting and, each year, raises hundreds of millions of dollars to fund its Home Buyer Mortgage, multifamily programs, and other programs. Utah Housing forms partnerships with private sector banking and lending institutions, developers, real estate agents, and others to bring the maximum amount of expertise together in administering these extremely complex and sophisticated programs. Utah Housing is committed to developing and strengthening all of its programs so it can be most responsive to those seeking affordable housing opportunities while, at the same time, being fiscally vigilant and responsible in continuing to be one of the most successful state housing finance agencies in the nation.
1.2 Definitions
As used in this Selling Supplement, unless a capitalized term is defined herein or has its meaning set forth in the “Definitions” section, its meaning will be that indicated by the context.
1.3 Announcements, Notices, and Amendments
Lender shall, at all times, ensure that each of its employees or agents acting on its behalf with respect to Loans, has access to the most current edition of the Participation Documents as amended. Utah Housing will communicate all changes to the Participation Documents to the Lender’s designated contact e-mail, and Lender will be bound by any changes in the Participation Documents distributed to the designated contact e-mail address or posted on Utah Housing’s website, as may be updated from time to time.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 7 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Lender Participation
Section 2 Lender Participation
2.1 Evaluating Creditworthiness
Utah Housing relies on the Lender to perform credit underwriting of each Loan as if the Lender were going to hold each Loan in its own portfolio and assume all risk associated with it. Utah Housing may perform an analysis of the credit quality of the Borrower, but relies on the underwriting performed by the Lender to ensure compliance with the specific policies of the Agency, as well as sound underwriting practices. Loans not compliant with Agency requirements may be subject to Lender repurchase of the Loan. The Lender must evaluate each Borrower's creditworthiness on a case-by-case basis. All standards for determining effective income must be applied to each Borrower in the same manner. Lender must determine that the Borrower evidences sufficient willingness and financial ability to justify and benefit from a Loan in the amount and on the terms stated. All information must be supported by written documentation maintained in the Loan file.
2.2 General Information
The general policy of Utah Housing, with regard to the Origination and Closing of its Loans, is that it is a Lender's responsibility to act in the timeliest, most efficient, and responsible manner to protect the interests of Utah Housing as mortgagee, and offer proper service and fair treatment to the Borrower. Utah Housing requires Lenders to have well-trained personnel in adequately equipped Mortgage lending facilities to provide proper and professional Mortgage lending.
2.3 Participating Lenders
Utah Housing Loans can be generated in one of two ways:
Loans are generally originated by Participating Lenders, subsequently sold to Utah Housing on a servicing released basis, and then serviced by Utah Housing. Participating Lenders may sell Loans to Utah Housing that are the result of the Lender entering into an agreement or relationship with another Lender or broker (“third-party originator”). Third-party originators (TPO) may take Loan applications or originate and process Loans for sale by the Lender to Utah Housing, provided all requirements in the Participation Documents are fully met.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 8 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Lender Participation
However, the Mortgage Purchase Agreement (MPA) must be requested by the approved Participating Lender and will be issued to the Participating Lender (cannot be issued in TPO name). TPO Loans must be:
closed in the name of the approved Participating Lender or the TPO; underwritten, closed, and shipped to Utah Housing by the Participating Lender; serviced by Utah Housing; and with a program approved for TPO Origination. TPO Loans are ineligible for the FHA Streamline Refinance or Conventional Loan Programs.1
2.4 Security Requirements
In accordance with the Participation Documents, the Lender is responsible for safeguarding passwords and other Utah Housing-issued security information and shall only disclose Utah Housing web security information to authorized persons who are employees of the Lender. The Lender may not send Nonpublic Personal Information to Utah Housing via e-mail unless it is encrypted using a system acceptable to Utah Housing.
1 Section 2.3 revised 8.16.18
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 9 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Lender Restricted Access to Utah Housing Website
Section 3 Lender Restricted Access to Utah Housing Website
3.1 Lender Security Policy
Utah Housing will initially e-mail written instructions to Lender’s designated contact regarding the user ID and password. Instructions are included regarding how the required password should be changed periodically by a Lender Authorized Administrator.
3.1.1 Lender Authorized Administrator The utilization of an Authorized Administrator enhances the security of access to a Lender’s Borrower information by requiring a password for each Lender-user of the Lender-restricted web page. Contact Utah Housing for information on adding users and administrators at 801-902-8200 or (Brad Silver) [email protected]. Lender shall be responsible for safeguarding passwords and all other Utah Housing-issued security information and shall only disclose such information to authorized persons.
3.1.2 Authorized Administrator Responsibilities The Authorized Administrator is empowered to add Lender-users, set their permissions, and authorize additional administrators (i.e. managers for each branch office). The Authorized Administrator should allow access only to sections of the Lender-restricted web page that are necessary for an employee to complete their job. The Lender-restricted web page provides different views and levels of access for the different processes of a Utah Housing Loan, such as:
Administrative. Lock a Rate (MPA) and Locks in Progress. Loans in Progress (Approved for Purchase, Pre-Purchase and Post-Purchase Conditions). Lock & In Progress. Purchase Detail Report. View All.2
2Section 3.1.2 revised 8.12.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 10 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Lender Restricted Access to Utah Housing Website
It is imperative that the Authorized Administrator delete users and any other Authorized Administrators who leave the company to prevent unauthorized access to the Lender’s Borrower information.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 11 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Forms
Section 4 Utah Housing Forms
Utah Housing makes available, on its website under “Lenders”, specific UHC Forms the Lender must use in Originating, Closing, and selling Loans to Utah Housing. A list of forms, with the most current revision dates, is located on the Utah Housing Lender web page. Utah Housing Forms are amended from time to time. Lender must use the applicable form with the most current revision date when processing and Closing a Utah Housing Loan. Lenders who have requested placement on Utah Housing’s e-mail distribution list will be notified of any revisions to the forms. The revised forms should be forwarded to the Lender’s document preparation company for inclusion in their document preparation for Utah Housing Loans. A person may be added to or removed from Utah Housings e-mail distribution list by sending an e-mail to [email protected] Lender may generate reproductions and replicas of Utah Housing Forms, but the reproductions and replicas must be in the same format and contain, without deviation and in order, all language contained and information to be reported in such Utah Housing Forms.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 12 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
General Loan Requirements
Section 5 General Loan Requirements
Utah Housing has multiple Loan Programs that are described later in this document; however, the following general requirements apply.
5.1 Borrower Eligibility
Borrower cannot have any outstanding Utah Housing Loans at the time the new Loan is purchased. Any previous Utah Housing Loans must be paid off. For a NoMI Loan, follow Conventional and LPA requirements for Freddie Macs Home Possible Advantage for HFA’s. Loan must receive an “Accept Eligible” from Freddie Mac’s automated underwriting system. The Lender must obtain legal verification of Social Security numbers (SSN) for all Borrowers. Acceptable forms of verification may include tax transcripts, a Social Security card, W-2, or Military ID card showing the SSN, or Rapid Reporting SSN Verification.3
5.2 Construction to Permanent Loan
A Utah Housing Loan may be used to pay off a Construction Loan, or similar financing used to build a new home, (with a term of 24 months or less) as long as the Borrower has not occupied the Property prior to Utah Housing financing.
5.3 Purchase Price, Income, and Loan Limits
The cost to acquire the Property may not exceed Utah Housing’s Purchase Price Limits as shown on Utah Housing’s website and in the Participation Documents. The Borrower’s income may not exceed the Utah Housing Income Limits, as shown on Utah Housing’s website and in the Participation Documents. There is no minimum Loan Amount for a Utah Housing Loan.
3 Section 5.1 revised 9.3.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 13 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
General Loan Requirements
5.4 Occupancy
5.4.1 FirstHome Utah Housing Loans must be secured by an owner-occupied Single Family Residence, as defined in the Participation Documents. The Borrower must occupy the Residence as their Principal Residence within 60 days of Closing and shall maintain the Residence as their Principal Residence and as a Single Family Residence throughout the term of the Loan. Utah Housing will not purchase a Loan where a Borrower has intention to rent the Property, even temporarily. The Borrower may not use more than 15% of the total area of the Residence in a trade or business; or use the Residence as an investment Property, a second home or as a recreational home; and cannot rent the Residence or any part thereof.
5.4.1.1 Seller Rent-Back
Borrower must occupy the Residence within 60 days of Closing.
Seller CANNOT rent-back any portion of the Residence.4
5.4.2 Score, NoMI Utah Housing Loans must be secured by an owner-occupied Single Family Residence, as defined in the Participation Documents. The Borrower must occupy the Residence as their Principal Residence within 60 days of Closing. Utah Housing will not purchase a Loan where a Borrower has intention to rent the Property, even temporarily. The Borrower may not use more than 15% of the total area of the Residence in a trade or business; or use the Residence as an investment Property, a second home or as a recreational home; and cannot rent the Residence.
4 Section 5.4.1.1 updated 8.6.2020
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 14 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
General Loan Requirements
5.4.2.1 Seller Rent-Back
Borrower must occupy the Residence within 60 days of Closing.
The Residence CANNOT be rented, with the EXEPTION of Seller rent-back, not to exceed 60 days after Closing. 5
5.4.3 HomeAgain Utah Housing HomeAgain Loans must be secured by a single real estate interest, owner-occupied One- Two Unit Dwelling as defined in the Participation Documents.6 The Borrower must occupy the Residence as Borrower’s Principal Residence within 60 days of Closing and shall maintain the Residence as Borrower’s Principal Residence throughout the term of the Loan. The Borrower may rent the second unit but may not use the Residence as a second or recreational home. Any rental income used to qualify must be included in annual qualifying income limits.
5.4.3.1 Seller Rent-Back
Borrower must occupy the Residence within 60 days of Closing. Seller CAN rent-back the Residence not to exceed 60 days after Closing.
A portion of the dwelling can be rented. HomeAgain allows for rental, as long as the borrower occupies the Residence. Eligible rental properties include duplex, mother-in-law apartment or accessory dwelling union. 7
5.5 Loan Payments and Terms
The Combined Loan to Value (CLTV) may not exceed 105%. Utah Housing will rely on the final Automated Findings and/or the Underwriter signed FHA Form 92900-LT for calculation of the CLTV. Each Note shall have a 30-year (360-month) amortization, a level monthly payment due on the first day of the month.
5 Section 5.4.2.1 updated 8.6.20 6 Section 5.4 updated 2.11.19 7 Section 5.4.3.1 updated 8.6.20
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 15 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
General Loan Requirements
Each Loan delivered to Utah Housing shall not contain any provisions that prohibit or impose charges for early payment of principal in whole or in part. Each Loan delivered to Utah Housing shall contain a provision for a late payment charge in an amount not to exceed that allowed by the applicable Agency. In no case shall late charge provisions exceed 5% of the amount of the full payment.
5.6 Loan Assumptions
Loans for FirstHome, HomeAgain, Score, Streamline Refinance, and Utah Housing’s Second Loan may be assumed subject to the purchaser(s):
meeting applicable Utah Housing and FHA or VA requirements as listed on Utah Housing’s Lenders webpage;
written permission by Utah Housing; and
payment of any required fees. Conventional Loans and Utah Housing Second Loans where the Utah Housing First Loan has been paid off are not assumable.
5.7 Cash to Borrower
No cash proceeds of a Loan may be disbursed to the Borrower or to any other person for the benefit of the Borrower. No cash proceeds of a Loan may be disbursed to the Borrower for any reimbursement or value of land owned by the Borrower before Closing and secured by the Loan. Reimbursement of Earnest Money deposits, excess cash deposits, or cash down payments paid by the Borrower before Closing does not constitute cash proceeds and is permitted.
5.8 Acreage Restrictions
For the FirstHome Loan, acreage is limited to one acre. Acreage may exceed one acre for all Properties where the appraiser has identified the Property as being in a highly rural area, as defined by the Consumer Financial Protection Bureau (CFPB) as “underserved counties.” Properties in highly rural areas may not exceed five acres. Exception requests for a Property more than one acre but less than one and one-quarter acres may be submitted to Utah Housing for review. Written approval from Utah Housing must be obtained prior to
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 16 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
General Loan Requirements
Closing. Exceptions may be granted depending on, but not limited to, land-to-value ratio, distance, and adjustment of comparables provided by the appraiser. For all other Utah Housing Loans, Properties must comply with all FHA, VA, or Conventional requirements including land-to-value ratio and net and gross adjustments. Utah Housing does not limit the size and area of the Property but relies on underwriting to be compliant with FHA, VA, or Conventional guidelines.
5.9 Mortgage Insurance and Guaranty
The cost of the Mortgage Insurance or the Guaranty varies, depending on the Loan Program and the size of the down payment, and protects the Lender and Utah Housing against Default by the Borrower. Lenders will be required to repurchase any Loan where Mortgage Insurance or a Guaranty has been revoked.
5.9.1 FHA Mortgage Insurance Upfront and monthly FHA Mortgage Insurance is required for all FHA Loans. A Mortgage Insurance Certificate (MIC) is also required. Loans sold to Utah Housing must be covered by a valid and enforceable FHA MIC. Lenders will be required to repurchase any Loan where FHA has revoked an MIC. When submitting a Loan to FHA for insurance, all Loans which include a concurrent Utah Housing Second Mortgage must be submitted with the down payment assistance coming from a governmental agency and must include the Utah Housing EIN 87-0332029; and Utah Housing Mortgagee code 52167-0999-8. After receiving notification from Utah Housing that it has purchased one or more of the Lender’s Loans, the Lender must electronically complete the FHA Notice of Transfer for each Mortgage Loan.
5.9.2 Conventional Mortgage Insurance The NoMI Loan program does not require Mortgage Insurance.8
8 Section 5.9.2 revised 9.3.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 17 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
General Loan Requirements
5.9.3 VA Guaranteed A VA Funding fee is required for some VA Loans. When a VA Home Loan Guaranty is required, a valid and enforceable VA Guaranty is required for Loans sold to Utah Housing.
5.10 Attorneys-in-Fact and Power of Attorney
An attorney-in-fact may execute the Note, Deed of Trust, and any Rider to the Deed of Trust on behalf of the Borrower, but only if a Power of Attorney gives the attorney-in-fact that power by specific or broad language. The Power of Attorney must include the specific Property, match the First Deed of Trust, and must be filed in the office of the appropriate county recorder. A copy must also be delivered to Utah Housing. The Borrower’s Power of Attorney cannot certify Household Income or sign the UHC Borrower Affidavit for a FirstHome Loan. Refer also to Closing a Utah Housing Loan.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 18 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
Section 6 Utah Housing Loan Programs
6.1 Utah Housing Loan Programs
Utah Housing Loan Programs allow a Home Buyer, with the help of a Participating Lender, to purchase a home with a Second Loan for Borrowers in need of down payment and Closing cost assistance. Utah Housing’s Streamline Refinance program allows Borrowers with a current Utah Housing Loan to Refinance and Subordinate their existing Second Loan. Utah Housing Loans are subject to certain limitations of the Borrower’s total annual income, the size of the family, and the Purchase Price of the Property. For some Loan Programs there are further restrictions based on the county in which the Property is located. The Utah Housing Loan Program Eligibility Matrix, located on the Utah Housing Lender web page, provides a quick reference for Utah Housing’s Loan Program requirements.
6.1.1 FirstHome Loan (FHA or VA) FirstHome is a Loan insured by FHA or guaranteed by VA. This program is for a First-time Home Buyer, with a minimum credit score of 660, purchasing a Single Family Residence in Utah. This program may include a Utah Housing Second Loan in an amount of up to 6% of the First Loan Amount. Any Loan made under the FirstHome Loan program must comply with all applicable FHA or VA requirements. Refer to General Loan Requirements and Credit Underwriting sections of this document for requirements that apply to all Utah Housing Loan Programs. FirstHome Loan sets the Gross Income Limit based on total Household Income at time of Application, projected forward 12 months.
6.1.1.1 Maximum Household Income The Current Annual Household Income of a Borrower may not exceed the Income Limits for the area in which the Property financed by a Loan is located, as established and amended by Utah Housing from time to time and referenced in the Participation Documents for the 12-month period beginning on either of the following:
The date of Application if Closing occurs within four months of the date of Application. The date of Closing if Closing occurs more than four months after the date of Application. Income for all persons 18 and over expected to use the Residence as their Principal Residence during the Current Year must be included in Annual Household income calculations.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 19 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
6.1.1.2 Borrower Certification of Household income The Borrower(s) must complete and sign the Utah Housing Borrower Certification of Household Income form. By executing the form, the Borrower certifies that all sources of Household Income have been disclosed.
6.1.1.3 Credit At least one credit score is required for the primary Borrower and any Non-Occupant Co-Signers. Refer to Credit Underwriting for additional requirements.9 Credit Scores are not required for an occupant Co-Borrower. The Co-Borrower’s credit must meet FHA manual underwriting requirements for Alternative Credit. A Tri-Merge Credit Report must be provided, and the report must show that the occupant Co-Borrower has insufficient credit to generate a credit score.
6.1.1.4 Affidavits of Borrower and Seller The Lender must deliver to Utah Housing, a Borrower Affidavit, and a Seller Affidavit in the form required by Utah Housing. The affidavits shall be completed, dated, signed, notarized and delivered to Utah Housing prior to Utah Housing’s purchase of the Loan. The Borrower, and not another person signing under the authority of a Power of Attorney, must execute the Borrower Affidavit, which includes certification of Borrower(s) household income.
6.1.1.5 Recapture Notice A FirstHome Loan may be funded with the proceeds of tax-exempt bonds. The Internal Revenue Code of 1986, as amended, requires that under certain circumstances the Borrower’s Federal income tax liability may be increased for the year in which the Property is sold (refer to the Utah Housing Recapture Notice form). Borrowers who are required to pay the IRS Recapture Tax may be eligible for reimbursement by Utah Housing (refer to the Utah Housing Loan Application Disclosure form). The Lender shall deliver to Utah Housing a Utah Housing Recapture Notice, executed by each Borrower of the Residence. This notice shall be dated and delivered to the Lender as of Closing and shall be delivered to Utah Housing prior to Utah Housing’s purchase of the Loan.
9 Section 6.1.1.3 updated 2.11.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 20 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
6.1.1.6 Rider to Deed of Trust The Lender shall ensure that each FirstHome Loan contains provisions which authorize the Lender to accelerate the Loan if, at any time, events occur which may violate Section 143 of the Internal Revenue Code. Such provisions shall be contained in a form required by Utah Housing and designated as a Utah Housing Rider to Deed of Trust (“DOT Addendum”). Such an Addendum shall be dated and executed by the Borrower at Closing; shall be attached, and recorded as part of the First Loan Deed of Trust, by the office of the recorder of the county in which the Residence is located, and shall be delivered to Utah Housing.
6.1.1.7 Three Year Prior Home Ownership Restriction The Borrower cannot have had an ownership interest in any Principal Residence at any time during the three-year period preceding the date the related Loan was executed (Closing date) This does not apply, however, under the following circumstances:
The Borrower is a Veteran, as defined by the Veterans Administration; or Borrower qualifies as a Single Parent as defined in this Selling Supplement.
6.1.1.8 Non-Occupant Co-Signer Non-Occupant Co-Signers are allowable for FirstHome Loans only and must comply with FHA and Utah Housing Non-Occupant Co-Signer requirements. Utah Housing Co-Signer requirements are as follows:
Co-Signer cannot take title to the subject Property or sign the Deed of Trust.
The Co-Signer’s debt ratio cannot exceed 45% (Co-Signer’s gross monthly income excluding the Borrower’s income)10 including the Loan payment for which they will co-sign, co-signers monthly housing expense and all other Co-Signer’s debts and co-signed Loans the co-signer is obligated to pay, regardless of who pays them. The Co-Signer is neither the spouse of the Borrower nor an occupant of the Residence. Neither the Borrower(s) nor the Co-Signer(s) can have an existing Utah Housing Loan, Utah Housing short sale, or foreclosure.
10 Section 6.1.1.8 updated 2.11.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 21 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
The Lender underwrites the Loan in a manner that assures that the Co-Signer has sufficient financial strength to:
Meet his or her own financial obligations (must have a middle credit score of at least 660 as outlined in this Selling Supplement); and Make the Borrower’s monthly Utah Housing Loan payment, at full Note rate, and any other co- signed Loan payments, together with all other required payments on the Co-Signer’s own indebtedness.
6.1.1.9 Acreage Limit Refer to Acreage Restrictions for FirstHome acreage limitations in this Selling Supplement.
6.1.2 HomeAgain Loan (FHA or VA) HomeAgain is a Loan insured by FHA or guaranteed by VA. This program is for Home Buyers, purchasing a Single Family Residence in Utah, who previously owned a home, as well as First-time Home Buyers, with a credit score of 660 or higher, who do not qualify for the FirstHome program. This program may include a Utah Housing Second Loan in an amount of up to 6% of the First Loan Amount. Any Loan made under the HomeAgain Loan program must comply with all applicable FHA or VA requirements. Refer to the General Loan Requirements and Credit Underwriting sections of this document for requirements that apply to all Utah Housing Loan Programs. HomeAgain Loans set the Income Limit based on Annual Qualifying Income of the Borrower.
6.1.2.1 Maximum Qualifying Income of Borrowers The Loan Qualifying Income, calculated annually, cannot exceed the Income Limits as referenced on the Utah Housing website (refer to the Income Analysis section), further restrictions may be based on the county in which the Property is located. A Non-Occupant Co-Borrower’s qualifying income (if applicable) is not calculated in the maximum income limit analysis. The higher income, as listed on the Automated Findings, Conventional Loan Underwriting Transmittal; FHA Form 92900-LT; or VA Form 26-6393, calculated annually will be used in determining Income Limit eligibility.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 22 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
6.1.2.2 Credit At least one credit score is required for the primary Borrower. Credit Scores are not required for occupant Co-Borrowers. The occupant Co-Borrower credit must meet FHA manual underwriting requirements for Alternative Credit. A tri-merged credit report must be provided, and the report must show that the occupant Co-Borrower has insufficient credit to generate a credit score.
6.1.2.3 No Prior Home Ownership Restrictions There are no restrictions for prior home ownership. HomeAgain is not limited to First-time Home Buyers. Borrower cannot have any outstanding Utah Housing Loans at the time the new Utah Housing Loan is closed. Any previous Utah Housing Loans must be paid off prior to recording the first mortgage deed of trust. Follow FHA/VA guidelines for Borrowers who own multiple properties.
6.1.2.4 Non-Occupant Co-Borrower A Non-Occupant Co-Borrower transaction is a transaction involving two or more Borrowers, in which one or more of the Borrowers will not occupy the Property as a Principal Residence. Non-Occupant Co- Borrowers are eligible for HomeAgain Loans only and must comply with Utah Housing and FHA requirements.11 The Non-Occupant Co-Borrower requirements are as follows: Takes title to the subject property and signs all documents, including the Deed of Trust. Is neither the spouse of the Borrower nor an occupant of the Residence. The property is a Single Family Residence (properties with more than one unit are ineligible). Debt ratio cannot exceed 45% (Co-Borrower’s gross monthly income excluding the Borrower’s income)12 including: o The Loan payment for which they will co-sign; o Non- Occupant Co-Borrower’s monthly housing expense; and all other Non-Occupant.
11 Section 6.1.2.4 revised 4.19.19
12 Section 6.1.1.8 revised 2.11.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 23 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
Co-Borrower’s debts and co-signed Loans the Non-Occupant Co-Borrower is obligated to pay, regardless of who pays them. Neither the Borrower(s) nor the Non-Occupant Co-Borrower(s) can have an existing Utah Housing Loan, Utah Housing short sale, or foreclosure. A Non-Occupant Co-Borrower’s qualifying income (if applicable) is not calculated in the qualifying income limits. The Lender underwrites the Loan in a manner that assures that the Non-Occupant Co-Borrower has sufficient financial strength to: Meet his or her own financial obligations (must have a middle credit score of at least 660 as outlined in this Selling Supplement); and Make the Borrower’s monthly Utah Housing Loan payment, at full Note rate, and any other co-signed Loan payments, together with all other required payments on the Co-Borrower’s own indebtedness.13
6.1.3 Score Loan (FHA or VA) The Score program is a Loan insured by FHA or guaranteed by VA. This program is for homebuyers purchasing a Single Family Residence in Utah who previously owned a home, as well as First-time Home Buyers, with a credit score of 620 or higher, who do not qualify for the FirstHome or HomeAgain program. This program may include a Utah Housing Second Loan in an amount of up to 4% of the First Loan Amount. Any Loan made under the Score Loan program must comply with all applicable FHA or VA requirements. Refer to General Loan Requirements and Credit Underwriting sections of this document for requirements that apply to all Utah Housing Loan Programs. Score Loans set the Income Limit based on the Borrower’s Annual Qualifying Income.
6.1.3.1 Credit At least one credit score is required for all Borrowers included on the Loan Documents. Alternative credit is not acceptable for this Loan Program.
13 Section 6.1.2.4 updated 2.11.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 24 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
A Borrower who does not have the type of credit that is traditionally reported to a credit repository is ineligible for Utah Housing financing. Refer to Credit Underwriting for credit score requirements.
6.1.3.2 Maximum Qualifying Income of Borrowers The Loan Qualifying Income, calculated annually, cannot exceed the Income Limits as referenced on the Utah Housing website. The higher income as listed on the Automated Findings; Conventional Underwriting Transmittal, FHA Form 92900-LT; or VA Form 26-6393, calculated annually, will be used to determine Income Limit eligibility.
6.1.3.3 Debt-to-Income Ratio For a Score Loan, the Debt-to-Income ratio on the Automated Findings and the approved 92900-LT or VA Form 26-6393 cannot exceed 45%.
6.1.3.4 No Prior Home Ownership Restrictions There are no restrictions to prior home ownership. Score is not limited to First-time Home Buyers. Borrower cannot have any outstanding Utah Housing Loans at the time the new Utah Housing Loan is closed. Any previous Utah Housing Loans must be paid off. Borrowers cannot own any other properties.
6.1.3.5 Multiple Property Restrictions The Borrower cannot own any other Property at time of Closing. A Borrower selling a home concurrently with the Closing of a Utah Housing Loan must provide a copy of the Closing Disclosure and the recorded transfer deed to verify owned Property was sold; title transferred; and, if applicable, all Mortgages were paid off.
6.1.3.6 Non-Occupant Co-Borrowers and Co-Signers Non-Occupant Co-Borrowers and Co-Signers are ineligible for this program.
6.1.3.7 Homebuyer Education Homebuyer Education by a Utah Housing approved educator is required, even if the Borrower has previously owned a home. Only one Borrower is required to complete the class. If there is a signature
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 25 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
line on the certificate, the certificate must be signed. A copy of the Homebuyer Education Completion Certificate, dated within 180 days prior to Closing, must be submitted to Utah Housing prior to Utah Housing purchasing the Loan (refer to Utah Housing website for a list of Utah Housing Approved Homebuyer Educators).
6.1.4 NoMI (Conventional)14 The NoMI program is a Conventional Loan without Mortgage Insurance (MI). This program is for Home Buyers who previously owned a home and are purchasing a Single Family Residence in Utah, as well as First-time Home Buyers with a credit score of 700 or higher. This program may include a Utah Housing Second Loan in an amount of up to 5% of the First Loan Amount. Refer to General Loan Requirements and Credit Underwriting sections of this document for requirements that apply to all Utah Housing Loan Programs. NoMI Loans set the Income Limit based on the Borrower’s Annual Qualifying Income. The Lender must follow applicable Conventional requirements regarding income analysis and verification of income.
6.1.4.1 Maximum Qualifying Income of Borrowers The Loan Qualifying Income, calculated annually, cannot exceed the Income Limits as referenced in the Participation Agreement. The higher of the incomes listed on Freddie Mac’s LPA or Conventional Loan Transmittal (Form 1008), calculated annually, is used to qualify the Borrower for the Loan.
6.1.4.2 Credit At least one credit score is required for all Borrowers included on the Loan Documents. Alternative credit is not acceptable for NoMI Loans. A Borrower who does not have the type of credit that is traditionally reported to a credit repository is ineligible for Utah Housing financing for NoMI Loans. Refer to Credit Underwriting for credit score requirements.
14 Section 6.1.4 updated 4.2.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 26 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
6.1.4.3 Automated UnderwritingTM (AUSTM)15 and Appraisal Systems Intentionally left blank.
6.1.4.4 Loan Quality AdvisorTM (LQATM), Uniform Collateral DataTM (UCDTM), Uniform Collateral Data PortalTM (UCDPTM) Submission Summary ReportTM (SSRTM) Lender must ensure that it has completed Freddie Mac Loan Quality Advisor prior to submitting the loan to Utah Housing for purchase. Lender must provide a copy of a successful UCDTM Findings Report and a successful UCDPTM SSRTM. Lender must select both Fannie Mae and Freddie Mac on all NoMI Loans when uploading the appraisal in the UCDPTM. The messages and warnings are intended to alert users of potential issues. The report must include a summary of the appraisal submission with a Document File Identifier. A copy of these reports must be included when submitting the Loan file for purchase. A LQATM with:
Minor issues does not need to be cleared but may require an explanation from the underwriter.
Fatal findings is ineligible; any fatal finding must be resolved before Utah Housing will purchase the loan.
Risk Score of 4 or 5 identifies the Property with possible property eligibility or policy compliance violations that must be addressed by the underwriter prior to Closing.
A score of 99 may indicate a score could not be generated due to missing or incorrect data entered by either the appraiser or Lender. The incomplete or inaccurate data should be corrected in order to generate a score and clear the warning or the underwriter must certify data submitted is accurate.
6.1.4.5 Condo Project ManagerTM (CPMTM), Condo Project Advisor Feedback The NoMI Loan Program may be used to finance a Residence located in a Condominium Project and Planned Unit Development, refer to the Condominium section in this Selling Supplement. A full review is required for all condominiums, even if automated findings indicate that a limited review is acceptable.
6.1.4.6 No Prior Home Ownership Restrictions There are no restrictions to prior home ownership. NoMI is not limited to First-time Home Buyers.
15 Automated Underwriting (AUS) revised 9.3.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 27 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
The Borrower cannot have any outstanding Utah Housing Loans. Any previous Utah Housing Loans must be paid off prior to or at Closing. Follow Conventional guideline for Borrowers who have multiple properties.
6.1.4.7 Non-Occupant Co-Borrowers, and Co-Signers Non-Occupant Co-Borrowers and Co-Signers are ineligible for this program.
6.1.4.8 Maximum Loan to Value (LTV) The maximum LTV is 97%, and the maximum CLTV is 105%.
6.1.4.9 Purchase Price The Purchase Price cannot exceed the amount listed on the Utah Housing Lender web page.
6.1.4.10 Higher Priced Mortgage Loans (HPMLs) Higher Priced Mortgage Loans (HPML) are eligible, refer to Section 18.
6.1.4.11 Homebuyer Education Follow Conventional (AUSTM) requirements for Homebuyer Education. Only one Borrower is required to complete the class. If there is a signature line on the certificate, the certificate must be signed. A copy of the Homebuyer Education Completion Certificate, dated with 180 days of Closing, must be submitted to Utah Housing prior to Utah Housing purchasing the Loan. Refer to Utah Housing’s website for a list of Utah Housing Approved Homebuyer Educators.
6.1.4.12 Condominium – Attached and Detached The NoMI Loan Program may be used to finance a Residence located in a Condominium (Condo) Project. The Condo Project in which the Residence is located must comply with all Conventional and Utah Housing requirements. In instances where the Condo Project or Loan does not meet Conventional program requirements, the Lender may be required to repurchase the Loan. To be eligible, the Lender must complete a Conventional Condo/PUD Full Review. This can be accomplished by the methods below:
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 28 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
Automated Approval16
Freddie Mac o Condo Project Advisor Feedback Certificate (CPA) for approved Project Waiver Request (single loan exception) Manual Approval
Freddie Mac o The Lender must verify the Condominium Project meets Freddie Mac’s requirements. o Lender to provide the signed Utah Housing Condo Project Lender Approval. o Provide to Utah Housing a copy of the Condo Project questionnaire, completed by the Homeowner’s Association.
6.1.4.13 Planned Unit Development (PUD) – Attached and Detached The NoMI Loan Program may be used to finance a PUD The PUD unit and PUD project must comply in all respects with Conventional and Utah Housing requirements. In instances where Freddie Mac determines the Loan does not meet program requirements, the Lender may be required to repurchase the Loan.
For a new PUD project, the insurance must include “severability of interest/separation of insureds” in its terms. Conventional loans require a specific endorsement to preclude the insurer’s denial of a unit owner’s claim because of negligent acts of the HOA or of other unit owners. HOA Policies that do not include this specific endorsement are ineligible for a Utah Housing Loan.
6.1.5 Reserved for Future Programs
6.1.6 Second Loan, Down Payment Assistance The Second Loan is a Loan to assist Borrowers with down payment and/or closing costs and is permitted when closed concurrently with a Utah Housing First Loan meeting all the requirements as outlined in the Participation Documents. Utah Housing is confident that the down payment assistance program complies with the requirements of HUD and Conventional guidelines. Documents required by FHA for down payment assistance
16 Freddie Mac Automated Approval rev. 9.3.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 29 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
provided by a government entity can be located on Utah Housings website, under Operating in a Government Capacity. Utah Housing Second Loans must be in second lien position and may not be subordinate to any other liens or riders. For each Second Loan funded and/or purchased by Utah Housing without the associated First Loan, the Lender will be charged a fee of 6% of the associated First Loan. The fee will either be invoiced to the Lender or netted from a future purchase, at Utah Housing’s discretion Any Second Loan made in conjunction with a NoMI Loan must comply with Fannie Mae’s Community Second or Freddie Mac’s Affordable Second requirements. Refer to the “Funding the Second Loan” section for details on obtaining the funds for Closing and documents and allowable fees.
6.1.6.1 Maximum Loan Amounts The maximum Utah Housing Second Loan Amount for FirstHome or HomeAgain is limited to 6% of the Loan Amount listed on the First Note. The maximum Utah Housing Second Loan Amount for NoMI is limited to 5% of the Loan Amount listed on the first Note. The maximum Utah Housing Second Loan Amount for Score is limited to 4% of the Loan Amount listed on the first Note.
6.1.6.2 Terms and Conditions Repair Escrows cannot be financed in the Second Loan Second Loans do not require their own policy of title insurance, but they should be shown in Schedule B as a second lien on the title insurance policy. The Second Loan must be repaid and is secured by a Utah Housing Subordinate Deed of Trust. It has a Utah Housing Subordinate Note with a 30-year term and an interest rate as specified on the MPA. Subordinate Notes become due and payable: upon Default of either the Mortgage Loan Notes; upon an unauthorized transfer of the Residence; or if the Borrower fails to occupy the Residence as required in the Utah Housing Loan Application Disclosure, they sign at time of application.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 30 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
Utah Housing will subordinate its Second Loan to a new Utah Housing FHA Streamline Refinance. Utah Housing will not subordinate its Second Loan to any other lien. Any Loan made under the Streamline Refinance Program must comply with FHA or VA requirements. Refer to the Utah Housing Refinance Submission Checklist for all required documents.
6.1.6.3 Foreclosure and Short Sales A Borrower who has had a loss on a previous foreclosure, pre-foreclosure short sale or bankruptcy on a Utah Housing Second Loan may be ineligible for another Utah Housing Second Loan. Second Loan Requirements: At least three years must have elapsed since the date the foreclosure, deed-in-lieu or short sale was completed. Foreclosures or Short Sales where a Utah Housing Second Loan (as shown on the credit report) was included, and Utah Housing incurred a loss; the Borrower is ineligible for another Utah Housing Second Loan. First Mortgage Requirements:
Follow FHA, VA, Conventional guidelines.
6.1.6.4 Bankruptcy Follow FHA, VA or Conventional requirements for previous bankruptcy.
A Bankruptcy where a Utah Housing Second Loan (as shown on the credit report) was included, and Utah Housing incurred a loss, the Borrower is ineligible for another Utah Housing Second Loan.
6.1.7 Streamline Refinance The Streamline Refinance Loan (Utah Housing Refi) product is exclusively for existing FHA Utah Housing Borrowers. The Loan is a 30-year, fixed rate, no cost refinance. - The Utah Housing Refi Loan must meet all FHA requirements for a no credit qualify, streamline refinance without appraisal. Utah Housing will authorize the subordination of the Borrower’s current Utah Housing Second Loan when combined with an eligible Utah Housing Refi. The Borrower may only refinance once in an 18-month period. Streamline Loans do not have Income Limits.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 31 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
6.1.7.1 Eligibility The Loan must meet the following requirements:
The Loan must be originated, underwritten, and Closed by a Utah Housing approved Participating Lender. The Loan must involve no cash from the Borrower, except for minor adjustments at Closing (not to exceed $100). Utah Housing will net from the purchase and apply the excess as a principal reduction to the First Loan. The following are exceptions to the $100 maximum Borrower contribution: o The difference between the initial escrow deposit for the Refi Loan and the unused escrow balance; o processing fees for the Subordination request (refer to the Utah Housing Fee Schedule); o interest listed on the Closing Disclosure, not to exceed $150; and o any current or Past Due Utah Housing Loan payment.
6.1.7.2 Credit Reports and Credit Scores A credit report, with credit scores, is required for Loans originally closed as Utah Housing Score Loans. The interest rate for the Borrower of an original Score Loan, whose credit score has increased to 660 or higher (refer to Credit Underwriting), will be eligible for the Streamline Refinance interest rate posted on Utah Housing’s website. The interest rate for the Borrower of an original Score Loan, whose credit score is still below 660, will be reserved at an interest rate 0.5% higher than the posted rate for Streamline Refinance.
6.1.7.3 Unused Escrow Credit Utah Housing will allow a credit for the Unused Escrow Balance, as reflected on the Utah Housing payoff according to FHA requirements, to offset the cost of setting up a new escrow account. Lender must provide a Borrower-signed copy of the Utah Housing Streamline Application Disclosure form, authorizing Utah Housing to apply the Unused Escrow Balance to the unpaid balance of the underlying Loan. Sufficient escrow must be collected at Closing to pay for the hazard and Property taxes at renewal.
6.1.8 Subordination of Second Loan
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 32 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Utah Housing Loan Programs
Utah Housing will authorize the Subordination of the Borrower’s current Utah Housing Second Loan when combined with an eligible Utah Housing Refi. The Borrower may only Subordinate a Utah Housing Second Loan once in an 18 month period. The Utah Housing Second Loan cannot be subordinated to any debt other than the new Utah Housing Refi First Loan, i.e., Utah Housing’s Second Loan cannot be put in a third lien position. Utah Housing will not purchase a Utah Housing Refi Loan where the Utah Housing First Loan has not been paid off in its entirety and the Utah Housing Second Loan was not accurately subordinated. Subordination Agreements are only authorized in conjunction with a Utah Housing Refi. In instances where the Utah Housing Refi is not purchased by Utah Housing and a Subordination Agreement was recorded, the Lender will be charged a fee of 6% of the original Utah Housing First Loan. The fee will either be invoiced to the Lender or netted from a future purchase, at Utah Housing’s discretion. The Title Company must complete and mail to Utah Housing a prepared Utah Housing Title Subordination Agreement Request form along with all required documents listed on the Utah Housing Subordination Request Checklist. Utah Housing will charge a Subordination processing fee (refer to the Utah Housing Fee Schedule, Appendix A) and a check, payable to Utah Housing Corporation, must be included in the Subordination Request submission package. Instructions and forms for the Subordination Request are posted on Utah Housing’s Title and Lender web page.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 33 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Underwriting Borrowers
Section 7 Underwriting Borrowers
The Definitions section includes specific definitions and exclusions related to the terms described in the Participating Documents.
7.1 Income Analysis
Specific Income Limits and Limit calculations apply for each of the Utah Housing Loan Programs (as noted in Utah Housing Loan Program Overview). A Loan Program may calculate Income Limits based on total gross Annual Household Income or Annual Qualifying Income. This section explains the difference between the two calculations.
7.1.1 Qualifying Income (HomeAgain, Score, NoMI) Monthly income used to qualify a Borrower for the Loan must be calculated annually. The monthly income must be listed on the Automated Findings, and FHA Loan Underwriting Transmittal Summary, (HUD 92900-LT) r VA Loan Analysis, or Conventional Uniform Underwriting and Transmittal Summary (Fannie Mae 1008). The document indicating the highest income must be used in calculating the Qualifying Income. Refer to the Utah Housing Lender web page, Income and Purchase Price Limits.
7.1.2 Household Income (FirstHome) Current Annual Household Income includes the income of all persons 18 and over who will occupy the Residence. For Current Annual Household Income limits, refer to the Utah Housing Lender web page, Income and Purchase Price Limits. Current gross Annual Household Income is calculated at time of Application (or Closing in cases where Application was taken 120 days or more prior to Closing) and projected forward 12 months. Current gross Annual Household Income is calculated for the 12-month period beginning: the date of Application, if Closing occurs within four months of the date of Application; or the date of Closing, if the Closing occurs more than 120 days after the date of Application. To be eligible for a FirstHome Loan, all Borrowers on the Loan whose income is being used to qualify must have received at least one full month’s paystub(s). Current gross Household Income is calculated as follows: For paystubs that show a three months or more year-to-date income:
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 34 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Underwriting Borrowers
Calculate the average monthly income from the current paystub and multiply by 12. For paystubs that show less than a three month year-to-date income: Obtain all the current paystubs; add all the income listed on the paystubs; divide by the number of weeks represented on the paystubs; multiply by 52; and add to all other Household Income. In some instances, the year-to-date paystub may include income earned from December of the previous year; the additional weeks may be included in the average Gross Income calculations. The Source of Income documents indicating the highest Gross Income must be used in calculating the Current Annual Household Income. The Lender shall document compliance with the FirstHome Loan Program requirements by obtaining verification of all Current Household Income (refer to Gross Income in the Definitions section, and the Utah Housing form Borrower Certification of Household Income for FirstHome Loans).
7.1.2.1 Income Exclusion In general, if a source of income is not specifically excluded in the definition of Gross Income, contained in the Definitions section of this Selling Supplement, the income must be included in the calculation of Current Annual Household Income. Business expenses and depreciation may be deducted from Current Annual Household Income calculations in instances when an itemized and signed business expense report, dated at the time of the Application, is provided and verification of at least one full year of expense history is listed on the Borrowers signed most Current Year tax return and/or IRS Validated Tax Return.
7.1.2.2 Verification of Household Income Lender shall document compliance with FirstHome requirements by obtaining verification of all Current Household Income including, but not limited to, the documents listed below and dated within 30 days of Application or Closing, if Closing occurs more than 120 days after Application:
Completed and signed Utah Housing Borrower Income Household Income for FirstHome Loans form. Verification of current employment with one of the following:
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 35 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Underwriting Borrowers
o A standard Verification of Employment form for Household members 18 and older (verification required even if income is not being used for qualification). o A Verbal Verification of Employment, signed by the Lender, which includes the employment start date and meets FHA and/or VA requirements for alternative documentation. Verification of previous employment for employers during the current 12-month period, which includes employment start and end dates. Verbal verification and/or documents meeting FHA or VA requirements for alternative documentation for previous employment are acceptable. Copy of paycheck stubs covering at least one full month of income. Paycheck stub for each current employer, dated within two weeks of initial Application or within four weeks of Closing, if the Loan is closed more than 120 days after initial Application. Handwritten paystubs or paystubs that do not include reduction for taxes require the following additional documentation: o Copies of all paystubs for the past three months; and o verification Qualifying Borrower is salaried. Copies of most current W-2s for all Household members 18 and older, as applicable. Income for Household members 18 or older does not have to be included in Current Household Income if documentation is provided to show they are a full time student. Most current, signed Federal tax return and/or IRS validated tax return (required if listed on Automated Findings. Verification of other income such as seasonal employment, Social Security, child support, alimony, interest earnings, capital gains, income (aid) to families with dependent children, self- employment, etc. Copy of the initial Loan Application (form 1003) with all sections completed, including the following: o Section III, Borrower Information, including marital status and ages of dependents; o Section VII, Declaration (owned a principal Residence in the past three years); o At least two years’ employment and Residence history sections; o Form 1003 signed and dated by Borrower; and o Loan Originator and Loan Origination Company NMLS numbers. All other documents, as required by FHA or VA.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 36 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Underwriting Borrowers
7.1.2.3 Other Household Income Verification
Self-Employment Income: For Household members who have self-employment, a signed year- to-date profit and loss (P&L) statement dated at time of initial Application (or within 30 days of Closing if Closing occurs 120 days or more after initial Application) is required. Year-to-date P&L: This is required for all self-employment even if it may be a loss, is not included to qualify, or has not been included on the Federal tax returns. Bonuses and/or Commission: For Household members who receive irregular income (i.e., commission or a bonus paid quarterly or annually), verification must be provided to verify the current income. The irregular pay is averaged monthly, multiplied by 12, and added to all other gross Current Household Income. Dependent Children: If qualifying Borrower has legally awarded income for dependent children, documentation verifying the awarded income for the dependent children is required. If Borrower is legally awarded income for dependents and/or other Household members, and the income is not being received, verification must be provided (i.e., 12 months’ bank statements to verify income was not received). Verification Borrower does not receive the income is only required if adding the legally awarded income to Borrower’s Household puts the Household Income over the FirstHome Loan Program Limits. Household Member(s) 18 and over: Income for all household members 18 and over must be documented and verified. If documentation is provided to verify dependent of the Borrower is a full-time student at a primary or secondary education provider, the income is not required to be included in Household Income. Married but Legally Separated: If the Qualifying Borrower is married but legally separated (as evidenced by a fully signed separation agreement or separation order), the Gross Income of the separated spouse does not need to be included in the Household income calculation if he/she will not occupy the Residence. If Qualifying Borrower is legally separated but a signed separation agreement is not provided, the income for the separated spouse must be included in Household income. If Lender cannot satisfactorily reconcile multiple income documents, the source(s) indicating the highest income must be used in preparing Current Annual Household Income. All Income must be included in Household income calculations, unless the Participation Documents specifically state the income is excluded (refer to Gross Income in the Definition section of this Supplement).
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 37 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Underwriting Borrowers
7.2 Ratios
The general policy of Utah Housing, with regard to the housing and debt ratio, is that the Lender will underwrite the Loan to comply with all Federal, State, and Agency requirements and protect the interests of Utah Housing as the mortgagee. The Borrower's total obligations must not constitute an undue strain on the Borrower's ability to make all such payments promptly.
7.2.1 Housing and Debt Ratio The debt ratio compares the total debt (including total Loan payment) to the Utah Housing debt ratio limits override AUSTM or manual underwriting. Utah Housing Debt Ratio limits are as follows:
50% for NoMI Loans. 45% for Score Loans. 45% for a Non-Occupant Co-Signer & Co-Borrower’s (Co-Signers are only allowed for the FirstHome Loan Program) and Non-Occupant Co-Borrower (Co-Borrowers are only allowed for the HomeAgain Loan).17 For all other Loans, refer to Agency requirements for determining acceptable Mortgage Payment-to- income and Total Fixed Payment-to-Income ratios.
7.3 Credit Underwriting
The Lender must evaluate each Borrower's creditworthiness on a case-by-case basis. The Lender must determine that the Borrower evidences sufficient willingness to pay the Loan per the terms agreed to on the Closing documents.
7.3.1 Credit Score The Lender must determine the Borrower has a sound credit reputation, evidenced by a written credit report for each Borrower on the Loan Application. The credit report and credit scores must be based on data provided by all of the following national credit repositories – Equifax®, Experian®, or TransUnion®.
17 Section 7.2.1 updated 2.11.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 38 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Underwriting Borrowers
The credit report must be complete and included in each Loan file submitted to Utah Housing for purchase. If three repositories cannot furnish a credit score, the Borrower is ineligible for a Utah Housing Loan. The repositories may return different valid credit scores for each Borrower. Based upon the Utah Housing Loan Program, Utah Housing has different criteria for evaluating credit scores to determine eligibility. Occupant Co-Borrower without a credit score may be eligible refer to Alternate Credit Score for Occupant Co-Borrower.
7.3.1.1 FirstHome and HomeAgain Loan Programs If a Borrower has three credit scores returned from the credit repositories, one of the scores is permitted to be below 660. The table below explains which credit scores must be 660 or higher.
FirstHome and HomeAgain Loans # of Credit Score Requirements Credit Scores Middle and highest scores must be 660 or 3 scores returned above. Lowest score may be below 660. 2 scores returned Both scores must be 660 or above. 1 score returned That score must be 660 or above. No score Borrower is ineligible for the programs.
7.3.1.2 Score Loan Program If a Borrower has three credit scores returned from the credit repositories, one of the scores is permitted to be below 620. The table below explains which credit scores must be 620 or higher.
Score Loans # of Credit Scores Credit Score Requirements
Middle and highest scores must be 620 or 3 scores returned above. Lowest score may be below 620. 2 scores returned Both scores must be 620 or above. 1 score returned That score must be 620 or above. No score Borrower is ineligible for the program.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 39 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Underwriting Borrowers
7.3.1.3 NoMI Loan If a Borrower has three credit scores returned from the credit repositories, one of the scores is permitted to be below 700. The table below explains which credit score(s) must be 700 or higher.
No MI Loans # of Credit Score Requirements Credit Scores Middle and highest scores 3 scores must be 700 or above. Lowest returned score may be below 700. 2 scores Both scores must be 700 or returned above. 1 score That score must be 700 or returned above. Borrower is ineligible for the No score program.
7.3.1.4 Alternative Credit for Occupant Co-Borrower Alternative (Alt) credit is allowed for Occupant Co-Borrowers who do not have a credit score. FirstHome or HomeAgain: An Occupant Co-Borrower must meet the following FHA Manual Underwriting requirements for Alt Credit:
A tri-merged credit report must be provided and the report must show the Co-Borrower has insufficient credit to generate a credit score. The Loan must comply with all FHA Manual Underwriting Loan requirements, including maximum ratios. Score or NoMI: At least one credit score is required for all Borrowers included on the Loan Documents. Alt Credit is not acceptable for these Loan programs.
7.3.1.5 Office of Foreign Assets Control (OFAC) Review OFAC findings on a credit report must reflect no match or no results. If results are found, these must be cleared before the Loan can be purchased.
7.4 Foreclosure, Short Sale, Deed-in-Lieu, Bankruptcy
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 40 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Underwriting Borrowers
Lender must comply with all applicable Agency, local, State, and Federal laws with respect to the Loan. Refer to Second Loan for financing restrictions on Loans where a Borrower was part of a foreclosure, pre-foreclosure short sale, deed-in-lieu, or bankruptcy.
7.5 Automated Underwriting Systems
Automated Underwriting Systems (AUSTM), as authorized by Freddie Mac, FHA, or VA may be used to assist in determining the creditworthiness of Borrowers. However, Lenders must also remember to specifically check Borrower, Co-Signer, Non-Occupant Co-Borrower, and Property Eligibility compliance with Utah Housing policies. Commonly encountered items, not considered by automated systems, include requirements for Residences (acreage, rental prohibition, etc.); minimum credit scores and ratios for a Co-Signer, Non-Occupant Co-Borrower or Score Loan; and Income and Purchase Price Limits. Specific Utah Housing requirements for Loans are specified in the Participation Documents.18 Only automated Loan Product Advisor (LPA) underwriting is acceptable for NoMI Loans. Traditional (manual) underwriting is not acceptable. Refer to Section 6 (NoMI) for other automated systems and document requirements
18 Section 7.5 revised 9.13.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 41 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
Section 8 Property Eligibility
8.1 Residence Definition and Use
8.1.1 FirstHome, Score, NoMI Each Loan must be secured by a Residence that meets all the requirements of this Selling Supplement, Conventional and FHA. A Residence is a Single Family, owner-occupied Dwelling, located within the State of Utah, with an estimated remaining economic life equal to or greater than the term of the Loan. A Residence qualifies for financing by Utah Housing within the meaning of the Act, the Participation Documents, and Utah Housing’s Rules. For purposes of definition, the Property:
includes the land, water rights, wells, and all improvements securing a Mortgage; may be a new home (never previously occupied) or an existing home (previously occupied) located in the State of Utah; may not include a Dwelling for which more than 15% of the total area is expected to be used primarily for a trade or business; may not include a rental Dwelling, or a Dwelling containing a second utility meter.19
8.1.2 HomeAgain Each Loan must be secured by a Residence that meets all the requirements of this Selling Supplement and FHA. A HomeAgain residence is an owner-occupied, One-Two Unit Dwelling located within the State of Utah, with an estimated remaining economic life equal to or greater than the term of the Loan. A Residence qualifies for financing by Utah Housing within the meaning of the Act, the Participation Documents, and Utah Housing’s Rules. For purposes of definition, the Property: includes the land, water rights, wells, and all improvements securing a Mortgage;
19 Section 8.1 updated 2.11.1
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 42 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
may be a new home (never previously occupied) or an existing home (previously occupied) located in the State of Utah; and may include a rental Dwelling, a Duplex, or an Accessory Dwelling (as defined by FHA) that complies with all FHA requirements. The Dwelling may or may not have a second utility meter. The Purchase Price of a Residence may not exceed the Purchase Price Limits established and amended from time to time by Utah Housing and referenced on the Utah Housing website. In addition to Utah Housing requirements, the Borrower qualification, the Property, the appraisal and applicable appraisal report, and all other loan qualification documents must comply with all FHA requirements, including ADU or Duplex requirements.
8.2 Acreage Limits
FirstHome May not exceed one acre except for properties where the appraiser has identified the Property as being in a Highly Rural Area. Properties in highly rural areas, as verified by the appraiser, may not exceed five acres. Exception requests for properties of more than one acre but less than 1.25 acres may be submitted to Utah Housing for review. Exceptions may be granted depending on, but not limited to, land-to-value ratio, appraiser comparable adjustments, land acreage, and whether or not the amount of land is proved to be customary for Single Family Residences. HomeAgain, Score, and NoMI The Loan must comply with all FHA, VA, or Conventional requirements including land-to-value ratio and net and gross adjustments. Utah Housing does not limit the size and area of the Property, but relies on underwriting to be compliant with FHA, VA, or Conventional requirements.
8.3 Rental, Seller Rent-Back
8.3.1 FirstHome, Score, NoMI A Residence with a second kitchen that is advertised or listed as a rental or possible rental or comments by the appraiser indicating the Residence is, has been, or can be, a rental is considered ineligible for the FirstHome, Score or NoMI Loan Programs.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 43 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
Properties with more than one utility meter and/or properties where a portion of the living area is blocked or locked from accessing another living area in the Dwelling are ineligible.
8.3.2 HomeAgain
May include an owner occupied One-Two Unit rental Dwelling such as a Duplex, mother in law apartment or Accessory Dwelling Unit (ADU) as defined by FHA. Follow FHA guidelines including calculation of rental income. Rental income, when used to qualify a Borrower, must be included in annual qualifying income and be compliant with Utah Housing qualifying household income limit.20
8.4 Mobile Homes
Mobile Homes, as defined in the “Participation Agreement” and “Definitions” section of this Selling Supplement; Motor Homes; Park Trailers; or Recreational Vehicles, as defined in the Utah Code, are ineligible.
8.5 Manufactured Homes
A Manufactured Home, as defined in the “Participation Agreement” and “Definitions” section of this Selling Supplement, is permitted for FirstHome, HomeAgain, Score, and Streamline Refinance Loans. Lender must complete all procedures required by Section 70D-1-20 of the Utah Code and provide the necessary documentation to protect Utah Housing’s interest in the Dwelling and the Property. Manufactured Home must be at least two sections (i.e. no “Single Wide” homes.) A Manufactured Home is ineligible for a NoMI Loan. Refer to the Utah Housing Product Eligibility Matrix on the Utah Housing website for a quick reference guide. Prior to requesting a Mortgage Purchase Agreement (MPA), the Lender must provide the required documents as listed on Utah Housing’s Manufactured Housing Checklist posted on Utah Housing’s Lender Manufactured Home web page. The documents listed on the checklist must be uploaded electronically through Utah Housing’s Lender-restricted Document Delivery Portal (on Utah Housing’s website) and Utah Housing must review and approve the documentation provided, prior to issuing an MPA.
20 Section 8.3 updated 2.11.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 44 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
MPA’s issued for manufactured home are subject to conditions. The lenders underwriting staff must review listed conditions. MPA is not a manufactured home approval. Refer to the Utah Housing approval e-mail stating loan documents have been reviewed and approved, The e-mail will also list any conditions to the approval.21
To be eligible for Utah Housing financing, all of the following documents are required for Manufactured Homes including, but not limited to, the following: Copy of Institute for Building Technology and Safety (IBTS) report. Copy of the appraisal. Copy of Recorded Affidavit of Affixture and Receipt of Surrender of Title or Copy (State of Utah Form TC-672); OR If the Title for the Manufactured home has been lost or stolen, the county where the Manufactured home is located does not have record of title, and a completed TC-672 has not been recorded, the following documents will be accepted in place of the TC-672: o Utah Housing Affidavit of Affixture and Notice of Lost or Destroyed Title form. o Utah Housing Lender Affidavit for Lost or Destroyed Title form. Copy of the Foundation Certification dated within 180 days of Closing; all recommended repairs and improvements must be completed (in some instances the Foundation Certification can be obtained at Closing. Verification that the serial number on the HUD Label or HUD Data Plate, IBTS Label Verification Letter and all other applicable documents matches the appraisal. Evidence the Residence is of sufficient size to meet all applicable zoning and building requirements. All other Residence requirements including propane tanks, sewer, wells and water stock where water source is not public, and lot size restriction. For a Residence with a culinary well, a septic system, or propane tank, it is recommended that an inspection, dated within 180 days of Application, is obtained from a certified, non-related inspector. Follow FHA/VA or Conventional guidelines in obtaining the required inspections. If any of the foregoing required documents are unavailable or cannot be located, the Loan is ineligible for Utah Housing financing.
21 Section 8.5 updated 6.1.20
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 45 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
8.6 Cabins and Log Homes
Cabins, log homes, and recreational use Residences and Properties located in a recreational area, typically used for a second home, are ineligible for Utah Housing financing.
8.7 New Construction
A newly constructed Residence may not have portions left unfinished nor have fixtures or architectural appointments omitted or removed in order to reduce the cost of acquiring the Residence below the Purchase Price Limits posted by Utah Housing.
8.8 FHA Streamline 203(k)
FHA will purchase a qualified FHA Streamline 203(k) Loan. Subject to the requirements of this Selling Supplement, Loans may be insured under the FHA 203(k) Streamline program for the purchase and Rehabilitation of a Residence. The Lender may collect from the Borrower the supplemental Origination fee and cost reimbursements, as allowed by FHA. The Lender shall be responsible for insuring full completion of all planned repairs or improvements and provide evidence all funds were distributed, repairs were completed, and the Borrower did not receive any cash back from the escrowed amount. Repairs must be completed within 90 days of Closing. Loans insured under a 203(k) Streamline program shall only be eligible for purchase by Utah Housing where the Dwelling is permanently fixed to the land on which it is located, before the date of the agreement between the seller of the Dwelling and the Borrower to purchase such Dwelling.
8.8.1 203(k) Escrow Repair Requirements For a Loan insured by FHA under its 203(k) Streamline program, the cost of completing the Rehabilitation (including any contingency reserve) must be included in the Purchase Price of such a Residence. A contingency reserve of not more than 20% of the Rehabilitation amount may be included in the Loan. No proceeds of a Loan may be used to finance the purchase of a Residence to be moved to a new location and thereafter rehabilitated under the 203(k) Streamline program.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 46 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
The 203(k) Escrow Agreement, signed by the Borrower, must be delivered to Utah Housing before the purchase of the Loan. The escrow repair completion date cannot exceed 90 days from Closing. Loans insured under FHA’s 203(k) Streamlined program shall be handled in all respects in accordance with FHA requirements. The fully executed Escrow Agreement or FHA approved Streamlined 203(K) form itemizing the Streamlined 203(K) repairs, is required and must include the Underwriter’s calculations of acquisition cost and maximum Loan Amount. Escrow documents must include all repairs and show a completion date of no later than 90 days after Closing. The Lender must deliver to Utah Housing, prior to releasing escrow funds, copies of cash receipts for the completion of escrowed repairs. Repairs that were paid for with a Loan or charge card must be paid off with the 203K escrowed funds prior to releasing any funds to the Borrower. The Lender must deliver to Utah Housing, prior to releasing 203k escrow funds, a copy of the final repair inspection with photos showing all repairs were acceptably completed within 90 days of Closing. Borrower cannot receive cash back from the escrow account. All escrowed funds must be used for the designated repairs; any excess of escrowed funds must be submitted to Utah Housing to apply as a principal reduction to the First Loan.
8.9 Condominiums and Attached Planned Unit Developments (PUD)
Some Utah Housing Loan programs accept Residences located in a Condominium Project or an attached Planned Unit Development (PUD) provided the unit includes the use of all common areas and facilities, which are part of the Condominium or PUD Project. Any Loan secured by a Condominium or an attached PUD and submitted to Utah Housing for purchase must meet all applicable Agency and Utah Housing requirements. Condominiums are eligible for Utah Housing FHA Loan Programs for units in a project that is FHA and/or VA approved. Refer to the NoMI Loan Program for Condominium and PUD requirements.22
8.9.1 Reserved for Future Programs
22 Section 8.9 revised 9.3.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 47 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
8.9.2 Fidelity Bond For Condominium Projects containing 30 units or more, a fidelity bond or direct surety bond must be maintained at all times. It must cover all persons having access to, or responsibility for, operating funds or reserve funds, with coverage in an amount not less than one and one half times the amount of operating funds or reserve funds held for the project.
8.9.3 Project Title Insurance If a homeowners association owns the common elements, areas, or facilities of a project separately (or holds them in a leasehold estate), title insurance must have been issued and must continue in force on those areas to insure that ownership. The title insurance must insure the common elements, areas, or facilities are free and clear of liens and encumbrances, including any statutory liens for labor or materials related to improvements that began before the title policy was issued.
8.10 Appraisal Standards
Appraisals of properties financed by Utah Housing must be in compliance with all applicable regulations and instructions of Conventional, FHA, and/or VA regarding use of forms, Appraisal Data Standardization (UAD), photos of the Property, allowable fees, use of authorized appraisers, etc.
8.10.1 Appraisal and Residence Repair Requirements When an appraisal is made subject to repairs, alterations, or conditions, or subject to completion per plans and specifications, the Lender must obtain and deliver to Utah Housing a certification of satisfactory completion by a Conventional, FHA, and/or VA approved inspector who, when possible, should be the original appraiser.
8.10.2 Acceptable Appraisers The Lender is to comply with the Appraiser Independence Requirements as summarized in the Participation Documents. The Lender agrees to inform Utah Housing immediately in the event the Lender deems the work of an approved appraiser or inspector to be unacceptable. Utah Housing may notify the Lender that it will no longer accept appraisals made by a given appraiser or inspector, and the Lender agrees not to use said appraiser or inspector with respect to Loans purchased by Utah Housing.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 48 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
8.10.3 Minimum Property Standards and Conditions Utah Housing will not purchase any Loan where the Appraiser has indicated the Property does not meet Minimum Property Standards, and/or the Residence condition is a C6 rating, and/or the quality rating is a Q6. For Properties where the appraiser has indicated there are safety concerns, Utah Housing requires an inspection from a licensed inspector and all recommended repairs to be completed prior to Utah Housing purchasing the Loan. Properties that are damaged or destroyed and cannot be rebuilt as a Single Family Residence, are ineligible for Utah Housing financing.
8.10.4 Escrow Funds for Repairs For required Residence repairs or improvements that cannot be completed prior to Closing due to inclement weather, the Lender may escrow funds in an amount not to exceed the estimated or contracted price of incomplete items given by the appraiser. Escrowed money cannot be financed into the Utah Housing Second Loan. Escrowed money shall be held for the joint benefit of Utah Housing and the Borrower in an account fully insured by the FDIC or NCUA. Escrowed moneys shall be released only upon satisfactory completion of the improvements and certification of such completion by a Conventional, FHA and/or VA approved inspector, as applicable, who, when possible, should be the original appraiser. Escrowed repairs must be completed within 90 days of Closing.
8.10.5 Environmental Hazards If the Mortgagee or Appraiser identifies a Property as contaminated by the presence of methamphetamine (meth), either by its manufacture or by consumption, the Property is ineligible due to this environmental hazard until the Property is certified safe for habitation. Lender must follow local, state and government regulations regarding Properties contaminated by meth and must provide Utah Housing a certification from a licensed inspector indicating the Property is safe for habitation.
8.11 Residential Water Facilities
8.11.1 Culinary Water A Residence must have culinary water facilities which:
are connected to completed and functioning municipal or other governmental culinary water systems or Stock Water Company systems; or
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 49 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
if not connected to a municipal water system or Stock Water Company system, include a functioning well and related or similar systems which are wholly dedicated to the use of the Property, which systems are located wholly within the boundaries of the Property, and include all water rights and interests evidenced by the requirements of this Selling Supplement; and comply with all building, health, and zoning codes, restrictions, regulations, and other codes and regulations of the city, town, or county in which the Dwelling is located; and is located on the subject Property. Properties with a shared well are ineligible for Utah Housing financing. A well inspection, dated within 180 days of Closing, by a certified well inspector is recommended. All recommended repairs and improvements should be completed prior to purchase. Follow FHA/VA requirements in obtaining culinary well inspections.
8.11.2 Sewage Disposal Facilities, Propane Tanks A Residence must have sewage disposal facilities which:
are connected to completed and functioning municipal or other governmental sewage disposal systems; or if not connected to a municipal sewage disposal system, shall include a septic tank and related drain fields and pipes which shall be wholly located within the boundaries of the Property; and comply with all building, health, and zoning codes, restrictions, regulations, and other codes and regulations of the city, town, or county in which the Dwelling is located. A septic system or propane tank inspection, dated within 180 days of Closing, by a licensed or certified septic tank inspector is recommended. All recommended repairs and improvements should be completed prior to purchase. Follow FHA/VA requirements in obtaining septic tank inspections.
8.11.3 Water Rights and Water Stock
8.11.3.1 Water Rights When the drinking water for a Residence is obtained from wells, springs, or other water sources other than a municipal or other governmental culinary water system or a Stock Water Company, the following steps must be taken:
If, in the body of the appraisal or in the utilities section of the appraisal, the Water is NOT marked “PUBLIC”, the Lender and Title Company must document the source of the culinary water (i.e., water right(s)/water shares, etc.) and additional documents must be obtained prior
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 50 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
to Closing. Refer to the Utah Housing Water Rights Checklist form and the Utah Housing Lender Certification of Water Rights form located on the Utah Housing website. The Lender must obtain from the Borrower or Seller of the Residence information concerning the source of the water and the type of ownership rights attendant to the water. The Lender must verify that the Seller of the Residence has ownership rights and title to the subject Water Rights and interests; and all plumbing fixtures, waterworks, and all equipment related to the water system. The Lender must verify that all applicable rights and interests of the Residence sellers described in this section will be conveyed to the Borrower at Closing by deed, assignment, and bill of sale. The Water Rights number must be listed on the Warranty Deed and assigned to the Borrower. The Lender must verify through the Utah Division of Water Rights website that the Water Rights reflect a valid status and are of record allowing the Borrower to use them in the manner represented, and that 100% of the Water Rights are being conveyed to the Borrower. The appraiser or licensed professional must verify that the well, plumbing fixtures, waterworks, and all related equipment are located on the Property. The Lender should obtain a well inspection by a licensed well inspector to determine that the well water sample from the tests meets the requirements of FHA, VA, Conventional and any governmental authority with jurisdiction over the quality of drinking water. Any suggested repairs must be completed prior to Closing. The Lender must add language on the Warranty Deed under the legal description to reflect: “All of Grantors rights in and to water right(s) number(s) ______”. The First and Second Deeds of Trust must state (under the legal description) “All of Grantors rights in and to water right(s) number(s) ______”. The Lender must record in the County Recorder's Office in the county where the Property is located. The Lender must complete the Utah Housing Lender Certification for Water Rights form. The Lender must provide Utah Housing a copy of the Report of Water Right Conveyance 100% (ROC). This form is located on the website for the Utah Division of Water Rights (UDWR), www.waterrights.utah.gov. Contact the Utah Division of Water Rights 801-538-7240 for assistance with questions and help in navigating their website (if applicable): o The ROC form must be completed by licensed professional (i.e., Title Company, attorney).
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 51 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
o Section A, #1 of the ROC must be marked “transferred by Warranty Deed.” A Residence, which has, as its source of culinary water, a well that is only partially owned by the Borrower; or whose use is shared with another Dwelling; or which is located off the Property, does not qualify as a Utah Housing Residence.
8.11.3.2 Water Stock When a Residence being financed under the Program receives water from a non-municipal water company, shares of stock in a water stock company are usually involved. When the Real Estate Purchase Contract or other sales agreement includes the transfer of stock in a water company (a "Stock Water Company"), a preliminary title report evidences the existence of shares in a Stock Water Company, or the Lender discovers by any other means that the Residence receives its water from a Stock Water Company, the Lender must perform the following additional steps in connection with the Closing:
Verify that the Borrower or Residence sellers have ownership rights and title to the subject water rights, interests, and all plumbing fixtures, waterworks, and all equipment related to the water system. Verify that the well, plumbing fixtures, waterworks, and all related equipment are located on the Property. Complete and have the Borrower execute and have notarized the Utah Housing Water Stock Security and Pledge Agreement form. The name of the Water Stock Company, the certificate number(s), and the number of shares must be inserted in the appropriate spaces of the form. Complete and have the Borrower execute the Utah Housing Water Stock Power form. Obtain, from the appropriate Stock Water Company or the Borrower, the actual stock certificates, which reflect the stock ownership (water shares) of the Borrower. o The original Stock Certificate(s) shall be sent to Utah Housing in the Loan file with the Utah Housing forms, Water Stock Security and Pledge Agreement form and the Water Stock Power form. o After the Loan is repaid in full, Utah Housing will release these three instruments to the Borrower. Verify with the State Department of Commerce, Division of Corporations, and Commercial Code (the “Division”) the good-standing status of the corporation that issued the stock. o This can be done by phoning the Division and inquiring as to whether or not the Water Stock Company is in "good standing." The Lender should prepare a memorandum to the file evidencing the date, to whom the Lender spoke, and what they were told by the
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 52 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
Division. If the Stock Water Company is not in good standing, the Loan must not be closed until such good standing status has been achieved and verified. Notify the Stock Water Company, in writing, of the grant of security interest and pledge of the stock by the Borrower in favor of the Lender, Utah Housing, or its assigns. A Residence where the main source of culinary water is a well that is only partially owned by the Borrower, shared with another Dwelling, or located off the Property, does not qualify as a Utah Housing Residence.
8.12 Mechanical and Electrical
A Residence must meet mechanical and electrical requirements, including the following:
It must have public electric utility service. It must have a public mechanical or electrical system for heating all habitable rooms of the Dwelling. It must satisfy the requirements of FHA, VA, and/or Conventional, as applicable.
8.13 Insurance
8.13.1 Title Insurance Second Loans do not require their own title insurance policy but should be shown in Schedule “B” of the First Loan’s title insurance policy. Second Loans must always be in second lien position and may not be subordinate to any riders to the Loan that secure sums in addition to the amount of the Loan. Refer also to the Project Title Insurance topic in the Property Eligibility section for details regarding title insurance requirements for Condominiums and PUDs. Each Loan submitted to Utah Housing for purchase must be the subject of an ALTA Short Form title insurance policy or an ALTA title insurance policy, either of which must be issued by an insurer acceptable to Utah Housing. The title insurance must be in an amount at least equal to the outstanding principal balance of the Loan. The title insurance must name Utah Housing as the insured or contain endorsement 104.1, or its
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 53 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
equivalent, insuring that the Loan constitutes a first lien on the Property, with an effective date no later than the final recording or re-recording date of the Loan. The policy must insure the estate of the mortgaged Property is held in fee simple by the Borrower. The policy must be subject only to current taxes and assessments, not yet due and payable, and permitted liens and encumbrances as described in this Part. Any Second Loan shall be shown in Schedule B of the policy. The policy must insure against mechanics or materialmen’s liens for work performed or materials supplied before the date of the Loan. Any liens or encumbrances which may appear, including any liens for subordinate financing which have been approved by Utah Housing, but for which Utah Housing is insured against as first lien holder, must be shown on the policy of title insurance. Any liens or judgments (including tax liens) must be subordinated behind Utah Housing’s First and Second Loans. Although CLTA endorsements 100 and 116 are needed with the ALTA title insurance policy, they are not required when using the ALTA Short Form policy because equivalent coverage is already included. However, ALTA endorsement 8.1 or its equivalents must be furnished with either type of policy. For a Residence, which is a Condominium Unit, a PUD Unit, or is Manufactured Housing, the policy must include ALTA endorsements 4, 5, or 7, respectively, or their equivalents. The legal description of real Property in any title insurance policy, or other document, must be the same as that set forth in the related Loan. For Condominium Units or a PUD Unit, the legal description must be stated in accordance with applicable law, must describe the unit securing the Loan, the percentage of undivided interest in common areas, any non-exclusive easement to use common areas and facilities, and any significant limited common areas or exclusive easements over common areas. The Title Policy must include all recording, re-recording, and any Scriveners Affidavit recording information.
8.13.2 Homeowners Insurance The Lender, to the extent permitted by law, hereby assigns to Utah Housing, on the date of delivery of a Loan, all of its rights; title; and interest in such insurance policies or contracts; and any benefits, which it has received, or which it may receive in the future, on all Loans delivered to Utah Housing.
8.13.2.1 Coverage Requirements The Property delivered to Utah Housing shall be covered by a valid Hazard Insurance Policy issued by a company lawfully doing business in the State and meeting the requirements shown below. The coverage
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 54 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
must include damage from fire and other hazards covered by the standard extended coverage endorsement. The coverage limits must provide for claims to be settled on a replacement costs basis. Insurance coverage in the following kinds and amounts is required on the Property.
The deductible amount cannot exceed $2500. The scope of coverage must be equal to or greater than the general property insurance requirements required by Fannie Mae (refer to Fannie Mae Selling Guide). Coverage must be equal to the lesser of the following: o 100% of the insurable value of the improvements, as established by the property insurer; or o The unpaid principal balance of the first and second mortgage as long as it at least equals 80% of the insurable value of the improvements. Such insurance must be in effect on the date of delivery, to Utah Housing, of the Loan for purchase, and o The expiration date of each policy for a purchase Loan must be at least nine months after the date of delivery; and o The expiration date of a Streamline Refinance policy must be at least 60 days after the date of delivery. For Insurance due within 60 days or less of delivering Loan to Utah Housing, a renewed policy is required, showing paid in full. If the Lender has actual knowledge, or if an appraisal indicates, that the Property is exposed to any appreciable hazard against which fire and standard extended coverage does not afford protection, the Lender shall obtain coverage against such hazards before delivery of the Loan to Utah Housing. In addition, each insurance policy shall be sufficient in amount and scope of coverage to meet the requirements of Fannie Mae, FHA, or VA as applicable. Insurance coverage which does not meet the requirements specified in this section will be considered on a case basis by Utah Housing upon request of the Lender. Utah Housing may require such additional coverage, as it deems necessary, concerning any case or group of cases.
8.13.2.2 Insurance Carriers Each Hazard Insurance Policy must be written by an insurance carrier, licensed or authorized by law to transact business within the State, that has been rated in the most recent Best’s Key Rating Guide no lower than the following: Policies are unacceptable that state any of the following:
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 55 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
Under the terms of the carrier's charter, by-laws, or policy, contributions or assessments may be made against Utah Housing or designee thereof. Contribution requirements or assessments may be made against the Borrower, which could become a lien on the Property superior to the lien of the Loan. By the terms of the carrier's charter, by-laws or policy, loss payments are contingent upon action by the carrier's board of directors, policyholders, or members. The policy includes any limiting clauses (other than insurance conditions) which could prevent Utah Housing or the Borrower from collecting insurance proceeds.
8.13.3 Condominium and Applicable PUD Homeowners Insurance A copy of the HOA Policy must be provided to Utah Housing prior to Utah Housing purchasing the Loan. The HOA hazard insurance and certificate of liability insurance must guarantee 100% replacement cost of the insurable costs of the project improvements, and the policy must include the mortgaged unit in the project. Insurance coverage for a Condominium Project or PUD Project, containing a Condominium Unit or attached PUD Unit that secures a Loan, must conform to the following requirements.
A high deductible supplemental insurance policy HO6 from the borrower is required in instances when the HOA policy deductible exceeds $2500.
The deductible on an HO6 cannot exceed $2500.
The insurance premium for an HO6 premium for an HO6 must be included as a charge on the Closing Disclosure or policy must show paid in full.
First Payment Letter prepared at Closing must include the HO6 monthly escrow amount.
The expiration date must be at least 30 days after purchase. 23 Multi-Peril Policy A multi-peril type of policy is required covering the common areas and facilities of the Project and the entire building containing the Condominium Unit or PUD Unit providing as a minimum “all risk” coverage that provides for claims to be settled on a replacement cost basis. The policy must comply with
23 Section 8.13.3 updated 8.6.20
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 56 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
all Utah Housing, FHA/VA, Conventional and State requirements for Residences with Home Owners Association insurance including, but not limited to, the following:
A master Property insurance policy (HOA Policy) issued to an association may not prevent a unit owner from obtaining insurance for the unit owner’s own benefit, i.e., a supplemental policy to cover a large deductible. The total amount of the coverage provided by the HOA Policy may not be less than 100% of full replacement cost of the insured Property. HOA Policy shall include coverage for any fixture, improvement, or betterment installed by a unit owner (including carpet, heating, plumbing, cabinets, etc.). Unit must be physically attached to another unit or an above-ground structure that is part of a common area of the facility. An HOA Policy must show each unit owner as an insured person under the policy, along with the USPS Property address. The Unit Owner and Property address must match “Borrower” name and the address as listed on the Deed of Trust. The HOA Policy effective date must be on or before the Borrower takes title. Conventional requires “Severability of Interest” or “Separation of Insureds” or equivalent coverage to be included in the body of the policy or in a specific endorsement. Utah Housing will not purchase any Loan where an HOA Policy is insufficient to cover past or present expenses or the association is in a legal dispute with unit owners. Lender must provide an original or a photocopy of the insurance policy and, if applicable, the boiler and machinery insurance policy. Each such policy must contain the “standard mortgagee clause” which must be endorsed to provide that any proceeds shall be paid to the applicable Condominium Project or PUD Project owners’ association for the use and benefit of mortgagees as their interests may appear, or must be otherwise endorsed to fully protect Utah Housing’s interest.
8.13.3.1 HOA High Deductible Supplemental and Walls-In Policies If a Condo/PUD/HOA policy deductible exceeds $2500, Borrowers are required to provide a supplemental insurance policy to cover the high deductible. In cases where the HOA Policy does not include interior unit coverage, including replacement of interior improvements and betterment coverage to insure improvements that the Borrower has made to the unit, the Borrower must obtain a “walls in” coverage policy (HO-6 Policy). The deductible for this policy must not exceed $2,500 and coverage must not be less than 100% of full replacement cost of the insured Property.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 57 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
8.13.4 Maximum Insurance Deductible Borrower’s insurance policies may require a deductible exceeding $2,500 per occurrence. Evidence the Borrower has obtained a supplemental insurance policy covering the deductible amount in excess of Utah Housings maximum deductible of $2,500 may be requested. The cost of the supplemental policy must be included in Borrower’s monthly escrow and included in Borrower’s calculations for qualification and the policy must show Utah Housing Corporation as the insured.
8.13.5 Flood Insurance Flood insurance is required and must be maintained at all times for a Residence if it is determined the Residence or any portion of the mortgaged Property is located in a Special Flood Hazard Zone, as evidenced by the appraisal report and/or a Life Time Flood Certification. The Flood Insurance Policy must be in the form of the standard flood insurance policy issued under FEMA’s Natural Flood Insurance Program (NFIP) or by a private insurer. The terms and conditions of the flood insurance coverage must be at least equivalent to the terms and conditions of coverage provided under the standard policy of the NFIP for the appropriate Property type. The Policy Declaration page of a policy is acceptable evidence of coverage. The amount of flood insurance provided by the NFIP, or by a private insurer, must meet Conventional minimum coverage requirements for all Utah Housing Loans for the appropriate Property type. In addition, private carriers must meet Conventional minimum rating requirements for insurance Underwriters, as described in Fannie Mae Guide, Hazard Insurance Policy Requirements. The maximum deductible clause shall be the lesser of $2,500 or 1% of the policy face amount. All Loans delivered to Utah Housing must include a Lifetime Flood Certification showing the Borrower and the Property address. If any portion of the property is located in a Flood Zone, Flood Insurance is required, and a copy of the Flood Insurance policy must be provided to Utah Housing prior to purchase. Coverage must be in force at time of Closing and effective or at least 12 months after Closing. The premium must be paid in full, and an amount equal to one twelfth of the annual premium must be escrowed and disclosed to the Borrower.
8.13.5.1 Condos and PUD Flood Insurance Should any part of the Condominium Project or PUD Project be located in a Special Flood Hazard Area, flood insurance must be maintained in force for the term of the Loan.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 58 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Property Eligibility
A separate flood insurance policy is required for Condominiums, detached, and attached PUDs, unless the flood insurance is included in the Homeowners Association Master Policy. The unit allocation from the master policy must meet the flood insurance requirements as stated above.
8.14 Standard Mortgagee Clause
All hazard and flood insurance policies must have the “standard mortgagee clause” commonly used by private institutional Mortgage investors. Such a clause must provide that the insurer will notify the named mortgagee at least 10 days before any reduction in coverage or cancellation of the policy. The endorsement for the “standard mortgagee clause” must show the name of Utah Housing Corporation followed by the phrase, “its successors and/or assigns.” The “standard mortgagee clause” of insurance policies obtained by PUD or Condominium Project owners' associations must be endorsed to fully protect the interests of Utah Housing.
8.14.1 Assigns Any insurance policy required in connection with a Loan sold to Utah Housing must:
Be assigned to Utah Housing Corporation, PO Box 70569, Salt Lake City, UT 84170; and Contain a “standard mortgagee clause” naming Utah Housing Corporation, its successors or assigns.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 59 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Mortgage Purchase Agreement (Interest Rate Lock)
Section 9 Mortgage Purchase Agreement (Interest Rate Lock)
To obtain a Mortgage Purchase Agreement (MPA) from Utah Housing, the Lender must follow the procedures described in this section. In order to reserve funds for the Loan, the Lender must request Utah Housing to issue a Mortgage Purchase Agreement (MPA) for the Applicant (Borrower), for a specific amount, and for a specific Property. This is done by submitting an MPA request through the Utah Housing Lender-restricted Power Lender Portal (Lock a Rate) as described later in this section. Utah Housing will generally issue an MPA in the order in which the request for an MPA is received and approve the same business day. Utah Housing provides notification, via e-mail, to the contact information entered on the reservation request informing the Lender when the MPA is approved and can be printed. Upon the issuance of an MPA, Utah Housing agrees that it will purchase the Loans, subject to the delivery of the required documents by no later than the Final Mortgage Delivery Date in compliance with all the terms and conditions of the Participation Documents. Entering a reservation request online effectively serves as the lock and commitment. Refer to MPA Cancellation for instructions on cancelling a request. In compliance with HUD requirements, Utah Housing will electronically sign the FHA Mortgage Purchase Agreement, representing a legally enforceable obligation to provide down payment assistance funds toward the Borrower’s required minimum cash investment.
9.1 Mandatory and Best Efforts Delivery
Upon issuance of the MPA, the Lender must deliver the qualified Loan to Utah Housing. Loans where an MPA is issued will not be charged a non-delivery fee if the Loan is delivered to Utah Housing prior to the Final Mortgage Delivery Date and purchased by Utah Housing OR if the Lender cancels the Mortgage Purchase Agreement in the PowerLender system prior to the Final Mortgage
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 60 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Mortgage Purchase Agreement (Interest Rate Lock)
Delivery Date. The Lender’s failure to deliver or cancel prior to the expiration of the MPA will be charged a non-delivery fee.24Refer to the Utah Housing Fee Schedule (Appendix A). When requesting an MPA, the Lender should be confident the Loan will close under the terms requested. Utah Housing will monitor delivery performance and will contact the Lender if, in Utah Housing’s estimation, its MPA cancellations are excessive. Any Borrower for whom an MPA is issued by Utah Housing and subsequently cancelled or allowed to expire will be ineligible for another MPA for two months from the date the cancellation or expiration is recorded by Utah Housing. Extenuating circumstances may be considered. When requesting an MPA, the Lender is representing and warranting that the Residence and Loan comply with the requirements outlined in the Participating Documents. Lender’s failure to either deliver the Loan file or complete the extension request prior to the Final Mortgage Delivery Date shall cause the MPA to expire.
9.2 Current Interest Rates
Utah Housing broadcasts via e-mail and publishes on its website Loan Program interest rates. Interest rates will not exceed these rates for commitments issued during a specified time. By referring to the Utah Housing website, Lenders may know the maximum interest rate for which a Borrower must qualify. Due to extenuating circumstances, Utah Housing may allow for a permanent interest rate buydown, Lenders should contact Utah Housing for pricing when a buydown is needed.
Rates are effective on Utah Housing business days. Posted rates expire at 7:00 pm. Second Loan rates are 2% above the posted first mortgage rate and are not posted on Utah Housing website. Utah Housing interest rates can change any time throughout the day without advance notice. If an interest rate is not posted on Utah Housing’s website, Utah Housing is not issuing MPAs until further notice.
9.3 MPA Requests
All requests for an MPA (Lock a Rate) must be submitted through Utah Housing’s restricted Power Lender Portal. Once the reservation request has been entered online, the request is considered complete. Utah Housing will provide notification via e-mail to the address that the MPA was issued.
24 Section 9.1 revised 10/7/15
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 61 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Mortgage Purchase Agreement (Interest Rate Lock)
Upon receipt of an MPA, Lender should review the MPA and verify the accuracy of the MPA, including interest rate, Second Mortgage details and Loan information
9.4 Final Mortgage Delivery Date
Loan documents, as listed on Utah Housing’s Loan Submission Checklist, must be delivered to Utah Housing prior to the Final Mortgage Delivery Date listed on the MPA. The documents must be uploaded through the Utah Housing Lender-restricted Document Delivery on Utah Housing’s website. In instances where the Lender is unable to deliver the Loan documents prior to the Final Mortgage Delivery Date the Lender must either request an extension to the Final Mortgage Delivery Date or send a written request to Utah Housing requesting cancellation of the MPA. Refer to “MPA Delivery Date Extension” and “MPA Cancellation” in this section for the applicable costs and instructions to extend the delivery date or request an MPA cancellation.
9.4.1 Enter an MPA Request Online The Lender may request an MPA as soon as credit or automated approval has been received for any occupant Borrower, Co-Borrower, Non-Occupant Co-Signer, and/or Non-Occupant Co-Borrower.25 To request an MPA by accessing Utah Housing’s Lender-restricted website, the Lender must use the login area on the Utah Housing Lender web page.
9.4.2 Documentation Required for Manufactured Homes For any Manufactured Home, prior to Reservation, the Lender must complete all procedures required by Section 70D-1-20 of the Utah Code and provide the required documentation to protect Utah Housing’s interest in the Dwelling and the Property. The required documentation is listed on Utah Housing’s Manufactured Housing Checklist posted on Utah Housing’s website. The documents listed on the checklist must be uploaded electronically through Utah Housing’s Lender restricted Document Delivery and Utah Housing must review and accept the documentation provided prior to issuing an MPA.
25 Section 9.4.1 updated 2.11.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 62 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Mortgage Purchase Agreement (Interest Rate Lock)
9.4.3 MPA Modification In certain cases, the Lender may wish to obtain a modification of an MPA. The Lender must make the request in writing and must provide appropriate documentation to substantiate the request. The Lender may increase or decrease the Loan Amount specified on an MPA without requesting a modification of the MPA in an amount not to exceed 5% of the specified Loan Amount. Lenders needing to change the Program after an MPA has been issued must submit the Utah Housing MPA Program Change or Interest Rate Buydown Request authorizing the change and the applicable fee to be netted from the purchase (refer to Selling Supplement, Appendix A). If the interest rate, at the time of the request to modify the MPA, is higher than the interest rate listed on the MPA, Utah Housing, at its sole discretion, may amend the interest rate to the higher interest rate. If Utah Housing consents to a modification, Utah Housing shall issue an amended MPA to the Lender. Utah Housing is under no obligation to modify an MPA.26
9.5 MPA Delivery Date Extension
Extensions to the Final Mortgage Delivery Date may be granted, providing that the Lender completes an on-line extension request available through Utah Housing’s PowerLender Portal located on Utah Housing’s website. The extension must be requested prior to the Final Mortgage Delivery Date and no more than one 30-day extension is available. The Lender will be able to view and print an amended MPA upon successfully completing the on-line extension request. An extension shall extend only the Final Mortgage Delivery Date and shall result in the extension fee as listed in the Fee Schedule (Appendix A.)
9.6 MPA Cancellation Requests and Non-Delivery Fee
When circumstances arise that prevent an existing MPA commitment from being used for a specific Applicant, written notification is required. The Lender must deliver to Utah Housing a written notification of cancellation within two business days of the Lender making the determination.
26 Section 9.4.3 revised 10/7/15
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 63 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Mortgage Purchase Agreement (Interest Rate Lock)
Any applicable fees may be deducted by Utah Housing from any future Loan purchase. In addition, Utah Housing may take actions as outlined in the Participation Agreement, should Utah Housing identify a pattern of continuing non-deliveries. Refer also to the Fee Schedule (Appendix A).
9.6.1 Cancellations and Non-Delivery Delivery of a Loan where an MPA has been issued is not mandatory and Lender will not be charged a fee unless an extension was issued, the MPA was not cancelled prior to the expiration or there is a pattern of continuing Lender non-deliveries. At the sole option of Utah Housing, any applicable fee may be netted from a future purchase. Refer to the Fee Schedule (Appendix A.)
9.6.2 Requesting another MPA for the Same Applicant Any Applicant for whom an MPA is issued by Utah Housing and subsequently cancelled or expired will be ineligible for another MPA Request for two months from the date the cancellation or expiration is recorded by Utah Housing.
9.6.3 Duplicate Social Security Numbers On occasion, when submitting an MPA request, the Lender may receive an error message indicating a duplicate Social Security number is being used, and the Lender is unable to proceed with the MPA request. This generally is indicative of the Borrower having another Utah Housing Loan (which has been either paid off or will be paid off prior to Closing the new Utah Housing Loan), or an MPA has been issued or submitted. This can be resolved by contacting the Utah Housing Mortgage Banking department to determine if the Borrower is eligible for another Utah Housing Loan.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 64 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Permitted Fees and Charges
Section 10 Permitted Fees and Charges
In no event may the fees and charges collected from any party, concerning the making of any Loan, exceed the amounts customarily charged in the State for similarly financed Loans. No discount points or a yield-spread premium may be charged or collected on FirstHome Loans. For HomeAgain, Score, and NoMI: Follow Agency, Federal and State requirements.
10.1 FirstHome Itemization of Origination Charge
To enable Utah Housing to confirm Loan fee compliance with applicable laws and regulations governing its programs, the Lender must include on the Closing Disclosure an itemization of all fees included in “Our Origination Charge” on all FirstHome Loans. The Origination fee included in “Our Origination Charge” cannot exceed 1% of the Promissory Note amount. The itemization may be listed in the Loan Costs section of the Closing Disclosure, compliant with FHA requirements, and/or if the following language is inserted, “See attached addendum for additional information.”
10.2 Permitted Fees First Loan
All fees for the First Loan must be reflected on the Closing Disclosure. Lenders may not charge the Borrower additional fees or charges associated with originating, processing, underwriting, and Closing the First Loan except as permitted by FHA, VA, Conventional, or as referenced in Appendix A. Any principal reduction of the Loan must be reflected on the Closing Disclosure for the applicable Loan. After applying the Loan proceeds, if the Closing Disclosure reflects cash back in excess of the Earnest Money deposit or funds paid outside of Closing, the excess funds can be used to reduce the principal of the Loan. No portion of the Loan may be disbursed to the Borrower or to any person on behalf of the Borrower.
10.3 Permitted Fees Second Loan
All fees for the Second Loan must be reflected on the Second Loan Closing Disclosure. Lenders may not charge the Borrower additional fees associated with originating, processing, underwriting, and Closing the Second Loan, except as referenced in Appendix A.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 65 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Permitted Fees and Charges
No portion of the Loan may be disbursed to the Borrower or to any person on behalf of the Borrower. Any principal reduction of the Loan must be reflected on the Closing Disclosure for the applicable Loan. The Borrower cannot receive cash back. After applying the Loan proceeds, any excess funds can be used to reduce the principal of the Loan.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 66 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Closing a Utah Housing Loan
Section 11 Closing a Utah Housing Loan
In addition to the required Utah Housing Loan Closing forms, the Loan Closing documents must include all requirements of the Agency and any Federal, State, or local rules or regulations, or requirements of any agreement or contract of the Mortgage Insurance or Guaranty. Closing documents also include those typical obligations, duties, and responsibilities that conform to sound banking and Mortgage lending practices.
11.1 Closing and MPA Consistency
Upon receipt of the MPA, the Lender must close the Loan at the interest rate, loan program, and loan amount specified. Utah Housing will be under no obligation to purchase a Loan closed at an interest rate or loan program that is different from that which is specified on the MPA.
11.2 Loan Terms
Each Mortgage Note must meet the following requirements: Include the FHA Case Number, or VA Guaranty Number as applicable. Include the MIN Number. Include the Originator and Loan Origination Company NMLS number. Completed and signed without any errors, including a 30-year (360-month) amortization, with a fixed interest rate as listed on the MPA and its monthly payment due on the first day of the month. Match the Mortgage Deed exactly. Include endorsed “Payable to Utah Housing Corporation, its successor and/or assigns, without recourse” and signed by Lender’s authorized Utah Housing signer. Be accurately signed and dated. Each Deed of Trust must meet the following requirements: Be recorded and include on the Deed the county recording information. Be registered with the Mortgage Electronic Registration Systems (MERS) and include the MERS language and a MERS MIN number. Include the Trustee and legal description.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 67 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Closing a Utah Housing Loan
Match all information and terms listed on the Promissory Note, including the date. Include the Originator and Loan Origination Company NMLS number. Include all applicable riders and attachments. Be accurately notarized, signed, and dated. In no case shall late charge provisions exceed 5% of the amount of the full payment.
11.3 Loan Closing Documents
The Deed of Trust must be signed by each owner of the Property. Any individual whose income and financial strength are needed in order to meet Utah Housing underwriting requirements, must sign the Note. The Mortgage Deed and the Promissory Note must also be signed by each individual whose signature is necessary under the applicable statutory or decisional law of the State to create a valid lien, pass clear title, waive inchoate rights to Property, or assign earnings.
11.3.1 Attorneys-in-Fact and Power of Attorney Utah Housing will not permit the Utah Housing Borrower Affidavit form to be signed on behalf of the Borrower by an attorney-in-fact. Attorneys-in-fact may execute all other the documents on behalf of the Residence Seller and borrower, provided that a power of attorney gives the attorney-in-fact that power by specific or broad language. Each power of attorney must include the specific Property, match the First Deed of Trust, and be must be filed in the office of the appropriate county recorder, and a copy must be delivered to Utah Housing.
11.3.2 Non-Occupant Co-Signer and Non-Occupant Co-Borrower FirstHome Non-Occupant Co-Signers are eligible for Utah Housing FirstHome Loans only. Co-Signers cannot: Have an existing Utah Housing Loan; Take title to the Property; or Sign the Deed of Trust. Non-Occupant Co-Signers must sign and be listed on the Note and all other Application, Closing, and Compliance Documents.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 68 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Closing a Utah Housing Loan
HomeAgain Non-Occupant Co-Borrowers are eligible for HomeAgain Loans only. A Non-Occupant Co-Borrower must sign all application, compliance, and Closing documents.27 Score and NoMI Non-Occupant Co-Signers and Co-Borrowers are ineligible for Score and No-MI Loans.
11.4 Mortgage Closing Documents
Mortgage documents must meet all applicable statutory or decisional laws to create a valid Utah Housing lien, pass clear title, waive or clear any existing rights to Property. The Borrower must give the Lender and its successors and/or assignees a lien on the Property as collateral for the Loan.
11.4.1 Closing Documents In addition to the Loan documents required by Federal, State, or local rule or regulation, by any agreement or contract of Mortgage Insurance or Guaranty, and by the applicable Agency, Utah Housing requires other documents specific to the Loan Program. The FirstHome Rider to the Deed of Trust must be signed, notarized and recorded with the First Deed of Trust on all FirstHome Loans. The Lender should refer to the Utah Housing Lender web page for the most current Utah Housing Forms and Closing instructions when preparing the documents for Closing. All required documents must be fully executed and signed as noted on the form.
11.4.2 Manufactured Homes Closing documents specifically required for Manufactured Home loans are as follows:
The Manufactured Housing Rider must be attached to and recorded with the First Loan Deed of Trust. The data on the Rider must match the IBTS (Institute for Building Technology and Safety)
27 Section 11.3.2 updated 11.2.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 69 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Closing a Utah Housing Loan
Label Verification Letter, Data Plates Compliance Certificate, Appraisal, and Preliminary Title Report. Conditions to close, as required by Utah Housing, will be provided to the Lender upon issuance of the MPA, evidence all conditions to close have been met must be provided to Utah Housing prior to the purchase of the Loan.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 70 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Funding the Second Loan
Section 12 Funding the Second Loan
The Lender is responsible for the funding of the Subordinate Loan by sending its own funds to the Title Company prior to recording the Loan. The Loan must close in the Lender’s name. After the Loan is Closed and loan file is submitted, reviewed and approved by Utah Housing, funds will be wired, as instructed by Lender, for the Second Loan along with the First Loan after Closing.
Space intentionally left blank.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 71 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Loan Delivery to Utah Housing
Section 13 Loan Delivery to Utah Housing
13.1 Final Mortgage Delivery Dates, Extensions, Expirations, and Fees
Each Loan must be delivered to Utah Housing prior to the Final Delivery date listed on the Mortgage Purchase Agreement. Loans must be delivered to Utah Housing through Utah Housing’s Lender-restricted Document Delivery Portal on the Utah Housing website in accordance with the requirements in this section.
13.2 Lender Reaffirmations
By delivering a Loan to Utah Housing, the Lender affirms that all information provided in the MPA is true and correct. The Lender further reaffirms its representations and warrants regarding its qualification as a Lender and its obligations to Utah Housing in accordance with the Participation Documents. These obligations remain in full force and effect, regardless of the duration; assignment; or transfer of servicing, status of payments, or payment in full.
13.3 Lender Restricted Electronic Delivery
Any person may visit the Utah Housing website and access a variety of helpful information. The restricted section for Lenders however, is to be accessed only by Lender employees with whom the Lender has shared the required User ID and Password.
13.3.1 Uploading Files Lenders should refer to the Document Delivery Upload User’s Guide, on the Utah Housing website for specific instructions on uploading files to the document delivery portal. This User’s Guide includes instructions on the following topics: How to create a new account. How to access the Document Delivery Upload Portal. How to upload files to Utah Housing. How to change your password. How to obtain additional support.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 72 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Loan Delivery to Utah Housing
13.4 Submission Package
13.4.1 Document Delivery For each Loan, the Lender shall deliver to Utah Housing a Loan submission package in the document order specified by Utah Housing on its current Pre-Purchase Loan Submission Checklist form.
13.4.2 Endorsement by Authorized Signers Each First and Second Promissory Note must include an endorsement, executed by a person on file with Utah Housing as an authorized signer of the Lender, and worded as follows: “Pay to the order of Utah Housing Corporation its successors and/or assigns without recourse” The person executing the endorsement must have been previously recorded on the Utah Housing Mortgage Lender’s Certificate of Authorized Signatures form as an Authorized Signer. A Power of Attorney is not accepted.
13.4.3 Recorded Deed of Trust Utah Housing will require copies of the recorded First Deed of Trust and Second Deed of Trust to be submitted for review prior to purchase. Deeds of Trust requiring corrections due to errors on the document must be corrected and corrections initialed by the Borrower and re-recorded. In some instances, as noted below, an Affidavit may be acceptable in lieu of re-recording. A Scrivener’s Affidavit (a.k.a. Corrective Affidavit), which is to put others on notice of typographical or other minor errors, is allowed to be recorded. The Scrivener’s Affidavit does not have the effect of correcting an error (refer to Title Company’s Attorney for allowable corrections by a Scrivener’s Affidavit). In some instances, Utah Housing may require a certification from the Title Company that the error is considered a minor error per Utah statute. An Affidavit of Correction or Notarial Certificate (Notary Affidavit) may be used in the event there is an error in the notary acknowledgment contained in a recorded document. The original notary must prepare and sign the Notary Affidavit. If a document was recorded without a notary acknowledgment, the Notary Affidavit is not acceptable, and the document must be re-recorded.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 73 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Pre-Purchase
Section 14 Pre-Purchase
Upon delivery of each Loan submission package, the submitted materials are reviewed for completeness, document order, and compliance. For submission packages that are incomplete, not submitted in the required document order, or that contain excessive documentation Utah Housing may, at their sole discretion, charge an Incomplete Loan Submission Package fee or reject the Loan submission package. Refer to Utah Housing Fee Schedule, Appendix A.
14.1 Package Reviews and Fees
The status of the Loan review can be monitored by accessing the Lender-restricted PowerLender Portal on Utah Housing’s website. Once logged in, the Lender may select from the following links: Loans in Progress
Approved for Purchase: This link is for acceptable Loan submission packages and will show the Loan was reviewed, approved, and ready for purchase. File Receipt: This link shows the date the Loan was received by Utah Housing and is awaiting review. Pre-Purchase Conditions: This link will show that the Loan submission package was submitted incomplete and requires additional documentation. Post-Purchase: This link shows Loans that have been purchased but additional documents are still needed to complete the document delivery requirements. In order for Utah Housing to purchase the Loan, the Lender must provide all required documents for the listed conditions within one month from the Utah Housing underwriting review date. If, within one month from the date of the review, the required documents have not been received, Utah Housing may take one of the following actions:
Accept the package late and charge a pricing adjustment at the time the Loan is purchased. Such adjustment will be netted from the purchase. Accept the package late and charge a reconsideration fee per month or part of a month beginning one month from the date the Loan was reviewed by Utah Housing. (See Utah Housing Fee Schedule, Appendix A.) Said fee will be netted from a purchase. Re-assign the Loan to the Lender and charge the non-delivery fee as listed in the Utah Housing Fee Schedule (Appendix A).
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 74 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Pre-Purchase
Any reconsideration fee or non-delivery fee, at Utah Housing’s sole discretion, may be deducted from the next purchase of one or more Loans from Lender.
14.2 Mortgage Insurance or Guaranty Certificate
For Loans requiring a Mortgage Insurance or Guaranty Certificate, documents are required prior to Utah Housing purchasing the Loan. The certificate must be accurate and consistent with the Closing documents. Minor corrections that will not jeopardize the insurance coverage for Utah Housing may be conditioned post-purchase.
14.3 Right to Reject
Notwithstanding anything in the Participation Documents to the contrary, Utah Housing shall, at all times, have the right to decline purchase of any Loan delivered by the Lender if, in the reasonable opinion of Utah Housing, the Loan does not conform to the requirements of the Act, Conventional, FHA and/or VA, Utah Housing’s Rules, the Participation Documents, or the applicable general Resolution.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 75 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Mortgage Purchase
Section 15 Mortgage Purchase
Lenders must sell the Loan and, where applicable, any Second Loan to Utah Housing “Servicing Released.” If a servicing release fee is due, as specified in the Participation Documents, its amount will be based on the sum of the unpaid balance of the applicable Loan at time of purchase.
15.1 Utah Housing Purchase and Disbursement of Loans
15.1.1 Purchase Utah Housing may purchase a Loan in a principal amount exceeding 5% of the Loan Amount specified on the MPA. The Loan Purchase Price shall be 100% of the outstanding principal balance thereof, plus unpaid accrued interest thereon as of the date of purchase, together with any other adjustments specified in this Selling Supplement. The Lender will retain the servicing of the First Loan and Subordinate Loan until Utah Housing purchases both Loans, as applicable.
15.1.2 First Loan Purchase — Disbursement Following a determination by Utah Housing that the Loan is eligible for purchase, Utah Housing will disburse funds to Lender or its designee. Disbursement will be in an amount equal to the Purchase Price of the First Loan, including the following components:
The amount of the First Loan Note. Plus accrued interest from the date of the last paid installment to, but not including, the date of purchase by Utah Housing. Plus any amount due to the Lender for a servicing release fee and interim servicing fee. Less any Loan payment due within 15 days of purchase, including monthly escrow amount, which is on or before the purchase date. Less applicable Utah Housing fees. Less any applicable principal reductions to be applied to the Loan. Less any applicable Utah Housing fees. Less the Borrowers Initial Escrow Payment at Closing, as listed on the final Closing Disclosure (CD) received prior to purchase.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 76 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Mortgage Purchase
All whole-month interest calculations are made using 30-day months, 360-day years. Interest calculations for periods of less than one month are based upon a 365-day year. Utah Housing will wire the funds for the purchase of the Loan according to the Lender wire or Bailee instructions provided to Utah Housing upon submission of the Loan documents. If a netted amount is incorrect a corrected final CD (or applicable document) must be provided to Utah Housing prior to purchase. Utah Housing does not reimburse or refund an amount different than what is on the CD (or applicable document) provided to Utah Housing prior to purchase.
15.1.3 Second Loan Purchase — Disbursement Following a determination by Utah Housing that the Loan is eligible for purchase, Utah Housing will disburse funds to the Lender or its designee. Disbursement will be in an amount equal to the Purchase Price of the Second Loan, including the following components:
The amount of the Second Note. Plus accrued interest from the date of the last paid installment to, but not including, the date of purchase by Utah Housing. Less any Loan payment whose due date is on or before the purchase date Less any applicable Utah Housing fees. Less any applicable principal reductions. Less amounts to be kept by Utah Housing for escrow deposit or tax service fee. All whole-month interest calculations are made using 30-day months, 360-day years. Interest calculations for periods of less than one month are based upon a 365-day year. Utah Housing will not pay a servicing release premium for the Second Loan. Utah Housing will wire the funds for the purchase of the Loan according to the Lender wire or Bailee instructions provided to Utah Housing upon submission of the Loan documents.
15.2 Warehousing Banks
If Lender’s designee referred to in Sections 15.1.2 and 15.1.3 is a warehousing bank, the Lender agrees to comply with all the terms of the “Bailee Letter” provided to Utah Housing from the warehousing bank. The Lender agrees that, upon Utah Housing’s receipt of the original Promissory Note(s) and the
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 77 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Mortgage Purchase
Bailee Letter, Utah Housing must comply with the instructions and requirements specified in the Bailee Letter, including without limitation wiring the funds only to the Warehousing Bank upon purchase of the Mortgage(s), or returning the original Promissory Note(s) to the warehousing bank if Utah Housing does not purchase the Mortgage(s). The Lender acknowledges that Utah Housing will not send to the Lender the original Promissory Note funded by a warehousing bank.28
28 Section 15.2 added 6.1.20
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 78 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Mortgage Electronic Registration System (MERS)
Section 16 Mortgage Electronic Registration System (MERS)
All First and Second Loans must be secured by Deeds of Trust that include the required MERS language and the required MERS MINs. The Correct MIN must be placed in a visible location on the first page of each Deed of Trust. Each Utah Housing Loan must be registered with MERS and the Investor and Servicing rights transferred to Utah Housing within the timeframe required by MERS. The Lender must register the MIN for the First and Second Deeds of Trust with MERS and transfer to Utah Housing Corporation prior to the Loan purchase. The First and Second Loan Investor and Servicing rights must be transferred from the Lender to Utah Housing in MERS within five days of Utah Housing purchasing or funding the Loan.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 79 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Post-Purchase
Section 17 Post-Purchase
17.1 Incomplete Loans (Post-Purchase)
Utah Housing may, at its sole option, purchase an incomplete Loan, as defined in the Participation Documents. For any Incomplete Loan that Utah Housing purchases, Lender shall have two months from purchase to provide to Utah Housing any documents or information Utah Housing reasonably requests to be delivered for completion of the Loan submission package. If the Lender delivers the documents or information Utah Housing requires within the applicable period, the Loan shall no longer be deemed an Incomplete Loan. If the Lender fails to deliver the documents or information required by Utah Housing to complete the Loan submission package within two months, Utah Housing may, at its sole discretion, choose one of the following actions:
Require repurchase of the Incomplete Loan one month from the date of written notice from Utah Housing to Lender. Accept the required documentation late and charge Lender an Incomplete Loan late fee per month (or part of a month) beginning two months from the purchase date of the Loan. (See Utah Housing Fee Schedule, Appendix A.) This fee will be netted from the next purchase of one or more Loans from the Lender. If the Lender fails to repurchase the Incomplete Loan, Lender shall be in Default and Utah Housing is entitled to the remedies set forth in the Participation Agreement as follows:
Utah Housing may charge Lender a repurchase late fee equal to one month or part thereof (see Utah Housing Fee Schedule, Appendix A) commencing one month from the date of Utah Housing’s written repurchase request to Lender. Utah Housing, at its option, may deduct the repurchase late fee from the purchase of a Loan or from any other amounts Utah Housing may owe to Lender.
17.2 HUD Mortgage Record Change Procedures
The seller of the Loan (the Lender) must notify HUD within 15 days of the sale of the Loan to Utah Housing Corporation.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 80 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Post-Purchase
Only the holder of record (the Lender) is able to report the identity of the new holder of record (Utah Housing Corp). Lender must ensure the data on the Mortgage Insurance Certification (MIC) is accurate prior to making the Loan Record Change. Data contained in HUD’s Single Family Insurance System (SFIS) regarding a mortgagee’s FHA-insured portfolio must be accurate (for all existing and new Loans).
17.3 Post-Purchase Documents
Due to the length of time to obtain certain documents, Utah Housing will consider the following documents to be acceptable Post-Purchase documents:
Title Policy and endorsements. Original Recorded Deed of Trust with any applicable Riders. Flood Cert. (Determination) transferred to Utah Housing, PO Box 70569, Salt Lake City, UT 84170 completed within 15 days of the sale of the Mortgage. For FHA Loan verification, the HUD Mortgage Insurance Record Change was completed within 15 days of the sale of the Mortgage. Verification the Lender has transferred Servicing and Investor Rights to Utah Housing in MERS. Any additional conditions required by Utah Housing at time of purchasing the Loan. If applicable and required, final repair inspection for repair escrow and/or compliance with FHA requirements for a 203K Loan.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 81 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Regulatory Compliance
Section 18 Regulatory Compliance
Lenders are required to comply with all Federal, State, and local laws and regulations that govern residential Mortgage lending, in addition to the following specific Utah Housing requirements.
18.1 Ability to Repay and Qualified Mortgage Rules (ATR and QM)
The final Ability-to-Repay and Qualified Mortgage Standards, under the Truth in Lending Act (Regulation Z) and the Qualified Mortgage Definition for HUD Insured and Guaranteed Single Family Mortgages, provide an exemption from the ability-to-repay requirements for extensions of credit made pursuant to programs administered by a housing finance agency. Utah Housing will continue to purchase both FHA Insured Loans and NoMI Loans that are exempt from the ability to repay rules as long as such Loans meet
Utah Housing’s requirements as contained in the Participation Documents; and HUD’s existing underwriting standards or the eligibility and underwriting requirements described in the Conventional Selling Guide.
18.2 Higher Priced Mortgage Loans (HPML)
Utah Housing will purchase a Second Higher Priced Mortgage Loan (HPML) assuming the Loan meets all Utah Housing criteria and the Loan complies, in all respects, with the requirements of Regulation Z for HPML. Utah Housing will purchase an FHA, VA and Conventional First Loan considered an HPML assuming the Loan meets all Utah Housing criteria and the Loan complies, in all respects, with the requirements of the CFPB and Regulation Z for HPML. A copy of the HPML calculation, disclosing whether the Loan passed or failed the HPML test, should be included in the Loan submission package for both the First and the Second Loan. Utah Housing may require the Lender to repurchase a Loan not in compliance.
18.3 Appraiser Independence
The Lender will comply with the Truth-In-Lending Act (TILA) requirements governing appraisal independence as well as the implementing of rules set forth in the Federal Reserve Board’s Regulation Z, and related requirements administered by the Agencies and others.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 82 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Regulatory Compliance
The following actions are prohibited in consumer-credit transactions secured by a consumer’s principal Dwelling:
Causing, or attempting to cause, the value assigned to the Property to be based on a factor other than the independent judgment of the appraiser, by compensating, coercing, extorting, colluding with, instructing, inducing, bribing, or intimidating a person conducting or involved in an appraisal. Mischaracterizing or suborning any mischaracterization of the Appraised Value of the Property securing the extension of credit. Seeking to influence an appraiser or otherwise encourage a targeted value in order to facilitate the making or pricing of the transaction. Seeking to influence a person to report a minimum or maximum value for the consumer’s principal Dwelling. Withholding, or threatening to withhold, timely payment for an appraisal report or for appraisal services rendered when the appraisal report or services are provided for in accordance with the contract between the parties. Withholding, or threatening to withhold, timely payment to a person because the person does not value the consumer’s principal Dwelling at or above a certain amount. Conditioning the compensation paid to a person on consummation of the covered transaction. Implying that current or future retention of the person depends on the amount at which the person estimates the value of the consumer’s principal Dwelling. Excluding a person from consideration for future engagements because the person reports a value for the consumer principal Dwelling that does not meet or exceed a predetermined threshold.
18.3.1 Mandatory Reporting Lender will compensate a fee appraiser for performing appraisal services at a rate that is customary and reasonable for comparable appraisal services, considering the following determining factors:
Type of Property. Scope of work. Time in which appraisal services are required to be performed. Fee appraiser qualifications.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 83 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Regulatory Compliance
Fee appraiser experience and professional record. Fee appraiser work quality. If the Lender reasonably believes an appraiser has materially failed to comply with the USPAP or ethical or professional requirements for appraisers, the matter will be referred to the appropriate state appraiser certifying and licensing agency within a reasonable period of time, after it is determined that there is a reasonable basis for believing a material failure to comply has occurred.
18.3.2 Selection of Appraisers The Lender will select, evaluate, and monitor the performance of appraisers and persons who perform evaluations in order to ensure that a qualified, competent, and independent person complete the appraisal or evaluation. The Lender will maintain documentation to demonstrate that the person who performs the appraisal or evaluation has the relevant experience and knowledge for the market, location, and type of real Property being valued.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 84 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Appendix A: Utah Housing Fee Schedule updated 5/16/2019
Section 19 Appendix A: Utah Housing Fee Schedule updated 5/16/2019
Fees will either be invoiced to the Lender or netted from a future purchase, at Utah Housing’s sole discretion.
Utah Housing Processing Fees Fee Name Fee Amount First Loan Permitted Fees Lender may charge normal and customary FHA, VA, or Conventional fees
Utah Housing Loan Delivery and Review Fee $35 Tax Service Fee (purchase) $83 Tax Service Fee (refinance) $39 Second Loan Permitted Fees Closing Fee $450 Recording Fee Actual Recording Fee not to exceed $40 Prepaid Interest Actual prepaid interest as disclosed on Second CD Refinance and Subordination Permitted Fees Tax Service Fee for Refinance Loans $39 Subordination Request Processing Fee (for Utah Housing $250 authorized Loans only) Utah Housing Remedy Fees Fee Name Fee Amount (netted from purchases) File Late-Delivery Fee $250 per month or any part thereof Reconsideration $250 per month or any part thereof Incomplete Mortgage Late Fee $250 per month or any part thereof Fee for submissions not submitted in the required $100 document order or containing excessive documentation MPA Program Change Fee $300 (prior to Loan Closing) the higher rate at the time of reservation or Program change will be applied.
$300 (after Loan Closing) plus any applicable buydown pricing adjustment if the Program change results in a higher rate. Interest Rate Buydown Fee, HomeAgain, Score, NoMI, Lender may request an interest rate buydown from Second Loan. Mortgage Banking Management. If interest rate buydown is approved Utah Housing will calculate the FirstHome Loans not eligible for a buydown buydown and submit to Lender for acceptance. When approved by Utah Housing and accepted by Lender this amount will be netted from the purchase. Non-Delivery/MPA Cancellation Fee $400 will be charged to Lender if Lender does not cancel lock prior to expiration (final mortgage delivery date). Repurchase Late Fee $700 per month or any part thereof MPA (Lock) Extension Fee (limit one 30-day extension) $300 per month or any part thereof
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 85 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Appendix A: Utah Housing Fee Schedule updated 5/16/2019
Second Loan funded and purchased without associated First 6% of associated First Loan Loan Utah Housing Refi not purchased and Subordination 6% of the original Utah Housing First Loan Agreement recorded
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 86 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Definitions
Section 20 Definitions
Act means the Utah Housing Corporation Act, Title 9, Chapter 4, Part 9, Utah Code Annotated, 1953, as amended, from time to time. Addendum means Utah Housing’s Rider to Deed of Trust. Accessory Dwelling Unit (ADU) means a secondary housing unit on a single-family residential lot. ADUs are accessory and adjacent to a primary residential Property and meets local zoning requirements.29 Affiliate means any person or entity (including, but not limited to, a general partner or managing member, or an officer of either) that controls a Lender, is controlled by a Lender, or is under common control with the Lender. The term “control” means the direct or indirect power (under contract, equity ownership, the right to vote or determine a vote, or otherwise) to direct the financial, legal, beneficial, or other interests of the Lender. For the purposes of this definition, the term “ownership” means that the owning entity owns 100% of the total issued and outstanding ownership interests of the owned entity, whether such ownership interests are comprised of stock, partnership or membership interests, or otherwise. Agency means a Federal Housing Administration (FHA), Dept. of Veterans Affairs (VA), Fannie Mae, or Freddie Mac Loan. Applicant or Co-Applicant means a Borrower who has signed an Application for a Loan that has not been closed. Application means the completion of the initial and final “Uniform Residential Loan Application.” (Form 1003)
Initial Loan Application includes sufficient information for the Underwriter and Utah Housing to reach an informed decision whether the Loan meets Utah Housing Income Limits. Final Loan Application signed by the Borrower includes all income and debts disclosed and verified during the Mortgage process. Appraised Value means an evaluation of a Property’s value based on a given point in time that is performed by a professional appraiser during the Loan Origination process. Average Area Purchase Price means the most current Average Area Purchase Price under the safe harbor limitations from time to time published by the Department of Treasury for each applicable Metropolitan Statistical Area or other area within the State, stated separately with respect to
29 Added 2.11.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 87 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Definitions
Residences which have not been previously occupied and Residences which have been previously occupied; provided, however, that in lieu of such safe harbor limitations, the Average Area Purchase Price may be determined by Utah Housing in accordance with the Code, but only upon receipt by Utah Housing of an opinion of bond counsel that the use of the Average Area Purchase Price so determined by Utah Housing shall not cause interest on the related Bonds to be included in the Gross Income of the recipient thereof for Federal income tax purposes. Authorized Administrator means a person authorized by Lender to allow an employee to access Utah Housing’s secure website, to add and delete users, and to set their permissions for the different processes of a Utah Housing Loan. The Authorized Administrator allows access only to the part of the web page that is necessary for an employee to complete their job. Best Efforts Delivery refer to “Delivery” Borrower, Co-Borrower, Mortgagor, or Co-Mortgagor means an Applicant (e.g., individually or jointly) person who will occupy the Dwelling and is obligated to repay a Loan; however, such terms shall not include a Co-Signer or Non-Occupant Co-Borrower. Borrower Affidavit means an affidavit in a form prescribed by Utah Housing given by the Borrower in connection with the execution of a Mortgage Note for a Mortgage Loan. Closing means that Settlement has been completed and the proceeds of any new Loan have been delivered by the Lender to the escrow/closing office and the applicable Closing documents have been executed and recorded in the office of the county recorder. Combined Loan to Value means the principal balance(s) of all Loans on a Property divided by its Appraised Value or Purchase Price, whichever is less. In the case of a Streamline 203(k) or HUD REO it means the principal balances(s) of all Loans on a Property divided by its as completed Appraised Value or Purchase Price plus repairs, whichever is less. Condominium (Condo) Project means a Dwelling or Dwellings comprising two or more single-family units established as a condo, coop, or PUD project whereby Dwelling units are separately offered or proposed to be offered for sale, created pursuant to Utah Law and meeting FHA, VA, or Fannie Mae/ Freddie Mac requirements.
Condominium (Condo) Unit means a unit in a Condominium Project. Each unit owner has title to his or her individual unit, an individual interest in the Project’s common areas, and, in some cases, the exclusive use of certain limited common areas. The Condominium owner holds sole title to the unit, but owns land and common Property jointly with other unit owners and shares the upkeep expenses on the common-Property with them. Conventional Loan means a conforming Loan that adheres to the guidelines set by Freddie Mac.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 88 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Definitions
Current Annual Household Income means the Gross Income of the Borrower’s Household, for the Current Year. Current Year means the 12-month period beginning either: (1) the date of the Initial Application if Closing occurs within four months of the date of such Application; or (2) the date of Closing, if Closing occurs more than four months after the date of such Application. Deed of Trust means a Deed wherein legal title in the Property is transferred to a trustee which holds it as security for a Loan between a Borrower and Lender. The Borrower is referred to as the trustor, and the Lender is referred to as the beneficiary. Default means:
With respect to a Loan, the failure of a Borrower to perform any obligation required under a Note, Deed, Rider to Deed, Borrower Affidavit, or any other Closing document. With respect to the Participation Documents, a failure of Lender to perform its obligations, duties, and responsibilities, or a failure of Lender to achieve and maintain an acceptable level of performance including, but not limited to, those items specified in the Participation Agreement. Delinquent or Past Due means, with respect to any Loan, one or more monthly Loan installment having not been received by the Servicer before the end of the month in which the installment is due. Delivery means the Lender enters into a commitment with Utah Housing to sell a specific Loan at an agreed-upon price within a specified timeframe. A Mandatory Delivery is required for the FirstHome Loan and if Lender is unable to fulfill their commitment to deliver the Loan, the Lender may cancel the Loan and be charged a non-delivery fee. A Best Efforts Delivery option for a HomeAgain, Score, Streamline Refi and NoMI Loan is available and Lenders will not be charged a non-delivery fee if the Loan does not close and Lender submits required documentation. Dwelling means a Residence and any other structures that are connected to it. Escrow Payment means, with respect to a Property securing a Loan, all moneys collected to obtain or maintain Mortgage insurance and fire, flood, other hazard insurance, and any payments required to be made to any governmental body or political subdivision or district for taxes or other assessments. Fannie Mae means the Federal National Mortgage Association. FDIC means the Federal Deposit Insurance Corporation. Federal means of or related to the government of the United States of America.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 89 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Definitions
Federally Guaranteed means the guarantee of a Loan pursuant to the Servicemen’s Readjustment Act, as the same may be amended from time to time (“VA Guaranteed”) or the guarantee of a Mortgage Loan pursuant to the provisions of the Rural Housing Service (“RHS”). Federally Insured or FHA Insured means insured by FHA. FHA means the Federal Housing Administration of the Department of Housing and Urban Development of the United States of America. First Mortgage means a Loan having the characteristics described in the Participation Documents whose lien position is senior to any other lien and whose lien is secured by an accepted FHA, Conventional, or VA Deed of Trust. Final Mortgage Delivery Date means the final date on which a Loan may be delivered for sale to Utah Housing as specified in the Mortgage Purchase Agreement. First-time Home Buyer means a Borrower who has had no present ownership interest in a Principal Residence (including, without limitation, any Manufactured Housing that is permanently affixed to real Property) at any time during the three-year period prior to the date of execution of the Loan. Freddie Mac means the Federal Home Loan Mortgage Corporation General Resolution means the applicable General Resolution adopted by Utah Housing with respect to the Single Family Program under which Loans are purchased by Utah Housing. Gross Income is the sum of all income not excluded in the following paragraph (before any payroll deductions), including, but not limited to, gross pay, net income from business or self-employment, any additional income from overtime, part time employment, shift differential, bonuses, allowances for automobiles, housing, uniforms, etc. (except that employee business expenses may be deducted), dividends, interest, royalties, pensions, compensation from the Department of Veterans Affairs (VA), net rental income, net farm income, etc.; and other income (such as alimony, child support, reimbursement for child care expenses, public assistance, sick pay, social security benefits, unemployment compensation, income received from trusts, and income received from business activities or investments). Overtime pay and bonuses must be projected for the Current Year in an amount consistent with the earnings history of each Household member. Gross Income shall not include casual, sporadic, or irregular gifts; amounts that are specifically for or in reimbursement of medical expenses; inheritances; insurance payments (including payments under health and accident insurance and workers’ compensation other than payments in lieu of earnings); reimbursements received under an employer’s flexible benefit plan or cafeteria plan; settlement for personal or Property losses; amounts of educational scholarships paid directly to the student or the
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 90 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Definitions
educational institution and amounts paid by the government to a Veteran for use in meeting the costs of tuition, fees, books and equipment, but in either case only to the extent used for such purpose; special pay to a serviceperson who is exposed to hostile fire; foster child care payments; and the income of any Household member who is under 18 years of age or a full-time student (provided that no deduction shall be allowed for a person who executes the Mortgage, the head of the Household, the spouse of the head of the Household or a person who is secondarily liable on the Mortgage Loan). Gross Income may not be reduced by any losses incurred by Borrower except those reflected on IRS Schedule C, E, or F. Depreciation expenses may not be taken unless calculated on a straight line basis on applicable IRS Schedules and Forms and applicable profit and loss statements. All other depreciation expenses must be added back to net business, farm, or self-employment income shown on IRS Schedule C, E, or F. Hazard Insurance Policy means a standard Hazard Insurance Policy or any replacement policy, to be maintained for each Loan pursuant to the Participation Documents. Household means all persons expected to use the Residence as their Principal Residence during the Current Year, excluding children expected to be born following Closing. In a case when a child is the subject of a joint custody order of a court, the child may be considered a member of the Household provided that 50% or more of the child’s time will be spent as a member of the Household. HUD means the Department of Housing and Urban Development of the United States of America. Income Limits means the Income Limits established and amended by Utah Housing from time to time pursuant to the Rules. The Current Annual Household Income of the Borrower may not exceed the Income Limits established by Utah Housing from time to time as published on the website. Incomplete Mortgage means a Loan for which the Loan Submission Package, as described in the Participation Documents, does not contain every document or all information required by Utah Housing. IRS means the Internal Revenue Service of the United States Department of the Treasury. Lender means the bank, trust company, savings and loan association, credit union, Mortgage bank, or other financial institution which is the Lender under the Participation Documents incorporated herein by reference.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 91 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Definitions
Life Time Flood Certification if any portion of the Property is located in a Flood Zone, Flood Insurance is required, and a copy of the Flood Insurance Policy must be provided to Utah Housing prior to purchase.30 Loan means a Mortgage as defined herein. Loan Amount means the unpaid principal amount of the Loan, Loan Amount is typically listed on the Note. Loan Origination means the Lender obtains a variety of financial information from the Borrower to use to determine the type of Loan the Borrower is eligible for and what interest rate the Borrower will pay. Loan to Value (LTV) means the principal balance of the First Mortgage on a Property divided by its appraised value or Purchase Price, whichever is less. Low and Moderate Income Persons means persons irrespective of race, religion, creed, disability, national origin, or sex determined by Utah Housing from time to time to require such assistance as is made available by the Act on account of insufficient personal or family income, in accordance with 9-4- 903(9) of the Act. Mandatory Delivery refer to “Delivery” Manufactured Housing means a transportable factory-built Dwelling Manufactured on or after June 15, 1976, in accordance with the National Manufactured Housing and Safety Standards Act of 1974 that has the following:
At least two sections (i.e. no “Single Wide” homes) A roof of wood shakes; asphalt, wood, or fiberglass shingles; concrete or metal tiles; slate or built-up gravel All running gear, tongues, axles, wheels, or other transportation equipment permanently removed A permanent site-built foundation meeting the requirements of local and State building codes to which it has been permanently affixed The status of improvement to real Property as a result of completion of the procedures required in Utah Code Section 70D-1-20 including, but not limited to, the recordation of the required Affidavit of Affixture
30 Life Time Flood Certification added 4.2.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 92 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Definitions
Mobile Home means a transportable factory-built Dwelling Manufactured prior to June 15, 1976, in accordance with codes existing prior to the National Manufactured Housing and Safety Standards of 1974. A Mobile Home is not Manufactured Housing. Mobile Home Loans are not eligible for Utah Housing financing. Modular Housing means a Dwelling, built from sections, which are manufactured and transported to the building site where the sections are assembled to make a complete Residence. Modular Homes, when compliant with agency single-family residence guidelines are eligible for a Utah Housing Loan. Mortgage, Mortgage Loan means a First Loan in which Property or real estate is used as collateral. The Borrower enters into an agreement for a specified sum of money made by a Lender to a Borrower to finance a Property, and evidenced by a Note and secured by a related Deed of Trust which meets all of the terms and conditions of the Participation Documents. Mortgage Insurance and Guaranty means an insurance policy which compensates Utah Housing for losses due to the Default of a Loan. Mortgage Insurance can be either public or private depending on the insurer and the Loan program. Mortgage Purchase Agreement (MPA) means the Utah Housing form furnished to Lender wherein Utah Housing commits to purchase a Loan from Lender for a specific amount and a specific Property. Obtaining this form will evidence not only Utah Housing’s agreement to purchase a specific Loan, but the Lender’s agreement to close, deliver, and sell the Loan by the Final Mortgage Delivery Date, and the Lender’s promise to furnish all requisite documentation within the required time as required under the terms and conditions of the Participation Documents. Mortgage Purchase Agreement Request means a request by Lender, submitted online through Utah Housing’s website, requesting the issuance of a Mortgage Purchase Agreement for a specific amount, a specific Property, and a specific Borrower. Mortgagor see “Borrower.” NCUA means the National Credit Union Administration. Nonpublic Personal Information means any nonpublic information of an Applicant or Borrower that identifies that person or can be used to identify, contact, or locate that person. Nonpublic Personal Information may include, without limitation, name, address, phone number, e-mail address, credit account information, or Loan information.
Non-Occupant Co-Signer means a person who promises to pay the Borrower’s debt if that Borrower fails to do so. A Co-Signer will not occupy the Property, signs the Note but not the Deed, and does not take title to the Property.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 93 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Definitions
Non-Occupant Co-Borrower means a person who promises to pay the Borrower’s debt if that Borrower fails to do so. A Non-Occupant Co-Borrower will not occupy the Property but will take title to the property and sign all Closing and Application documents including the Note and the Deed.31
Note, Mortgage Note, Promissory Note means a legal financial instrument, in which the Borrower promises in writing to pay a determinate sum of money and interest to another under specific terms. One-Two Unit means an owner occupied, single real estate interest Dwelling with one or two units. The Property is a residential Property with each unit contained within one building; each unit contains at least one bedroom, a full working kitchen and bathroom and houses one family.32 Participation Documents means the Utah Housing Participation Agreement, Mortgage Purchase Agreement, Selling Supplement, Utah Housing Forms, and all other documents incorporated into the Agreement. Planned Unit Development (PUD) Project means a residential real estate project whereby two or more attached or detached Dwelling units are separately offered or proposed to be offered for sale. Said project, as established by an instrument of record, usually has common areas and an association or organization of homeowner members which owns or maintains the common areas. Planned Unit Development (PUD) Unit means a Residence, as defined herein, which is individually owned and a physical part of a PUD Project. The PUD owner holds sole title to the Property and has the right of use of the PUD Project’s common areas or facilities by access or easement. Principal Residence means a Dwelling occupied by the Borrower for a minimum of 51% of the number of days in a calendar year.
Principal Residence One – Two Unit: means a Dwelling occupied by the Borrower for a minimum of 51% of the number of days in a calendar year and has a separate additional living unit, including kitchen, sleeping and bathroom facilities. It may include a Single Family Dwelling, an Accessory Dwelling Unit (ADU) or a Duplex as defined by FHA. The Dwelling constitutes a single interest in real estate.
Program means Utah Housing Single Family Loan Programs as described in the Participation Documents or Rules. Property means the land, access, easements, Dwelling, and all improvements including utility connections and rights to water or water stock that are the subject of a Loan.
31 Added 2.11.19 32 Added 2.11.19
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 94 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Definitions
Purchase Price means, the cost of acquiring the Property from the seller as a completed residential unit, including: (A) all amounts paid, either in cash or in kind, by the Borrower (or a related party or for the benefit of the Borrower) to the seller (or a related party or for the benefit of the seller) as consideration for the Property, (B) the Purchase Price of the land, and (C) if the Residence is incomplete, the reasonable cost of completing it (to the extent that the builder thereof normally completes work on similar Residences which he builds, and so that occupancy thereof is legally permitted). Acquiring the Property does not include (1) usual and reasonable settlement or financing costs, and (2) the value of services performed by the Borrower or members of Borrower’s family (“family” shall include only the Borrower’s brothers, sisters, spouse, ancestors, and lineal descendants) in completing the Dwelling. In a circumstance when there is no seller of the Residence, such as an “owner built” Dwelling, the costs which must be counted toward the determination of the Purchase Price include the amounts paid in cash or in kind for land, materials, labor, overhead, architectural fees, plans, permits, construction Loan interest, and all other costs except those excluded in (1) and (2) in the preceding paragraph. In a circumstance when all or a portion of the land is given to the Borrower as a gift, the Purchase Price of the land paid by the donor of the gift shall be included within the Purchase Price. Purchase Price Limits means the Purchase Price Limit established and amended by Utah Housing pursuant to the Rules. The Purchase Price Limits established and updated by Utah Housing from time to time are set forth in the Participation Agreement, as applicable. Qualifying Income means the income listed on the Automated Findings or signed FHA 92900 LT, or a Fannie Mae/Freddie Mac Loan Underwriting Transmittal, as calculated annually, whichever is higher. The Qualifying Income calculated annually cannot exceed the Income Limits as referenced in the Participation Documents. Regulations mean all Regulations and temporary Regulations promulgated by the United States Treasury Department or Internal Revenue Service with respect to Sections 103, 143, and 148 of the Code or with respect to similar sections of the prior code. Rehabilitation means the repairs, improvements, and construction contemplated for a Residence to be financed from the proceeds of a Loan insured by FHA under its Streamline (203k) program. Residence means the owner occupied Dwelling purchased with the proceeds of a Loan, which is the Borrowers Principal Residence as defined herein. RHS means the Rural Housing Service of the United States Department of Agriculture.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 95 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Definitions
Rules means the Rules adopted by Utah Housing pursuant to the Act governing the activities authorized by the Act to carry into effect the powers and purposes of Utah Housing and the conduct of its business, as the same may be amended from time to time. Second Mortgage, Subordinate Mortgage means a Second Loan having the characteristics described in the Participation Documents whose lien position is junior to that of a Utah Housing First Mortgage and whose lien is secured by the Utah Housing MERS® Subordinate Deed of Trust. The Subordinate Mortgage is senior to any other lien other than the First Mortgage. The proceeds of this Mortgage are used to assist homebuyers with down payment and/or Closing costs. Selling Obligations means the obligations, duties, and responsibilities that are required of a Lender in the Participation Documents, as well as those that are required of a Lender under any Federal, State, or local rule or regulation or by any agreement or contract of Mortgage Insurance or Guaranty, and those typical obligations, duties, and responsibilities that are in conformance with sound banking and Mortgage lending practices. Selling Supplement means the Single Family Mortgage Program Selling Supplement, part of the Participation Documents, as amended from time to time. The Supplement provides the requirements of originating and selling Conventional and government loans to Utah Housing. It includes loan programs, loan requirements, MPA procedures, and delivering a Loan to Utah Housing for purchase. Servicer means any entity to which Borrowers pay their Loan payment and which perform other services for Utah Housing Loans. Settlement means the date upon which Buyer and Seller have signed and delivered to the escrow/closing office all documents required by the Real Estate Purchase Contract, by the Lender, by the title insurance office, and by written escrow instructions or by applicable law. Any monies required to be paid by Buyer or Seller has been delivered to the escrow/closing office. Single Family means the Residence is owner-occupied by one household or family and consists of only one dwelling. Single Parent means a person who, at the date of Application (1) is the head of the Household, as the term Household is defined in the Participation Agreement, (2) has legal custody of at least one dependent minor child living in the Household at least 50% of each year, and (3) is the sole Household member receiving income. No other adults may be members of the Household except those who are “Incapacitated.” “Incapacitated” means having at the time of Application a physical or mental illness or impairment (including any incidental to old age) which substantially reduces or eliminates the person’s ability to work or to care for the dependent minor child. The illness or impairment must be reasonably expected
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 96 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.
Selling Supplement
Definitions
to continue for at least six months beyond the date of Application. Evidence of the illness or impairment, and its duration, must be documented in Lender’s Mortgage Loan file. State means the State of Utah. Supplement means the Selling Supplement. Suspension means the temporary cessation of privileges granted to Lender by Utah Housing in the Participation Documents until a Default had been cured or a Termination is imposed. Termination means the cessation of privileges granted to Lender by Utah Housing in the Participation Documents. Utah Housing means Utah Housing Corporation, a public corporation of the State of Utah, created by the Act. Utah Housing’s website means utahhousingcorp.org or such other URL as Utah Housing may designate from time to time. Underwriter means the person who will review the Application documents to determine if the Borrower qualifies for a Utah Housing Loan. Unit means a residential Property where the Dwelling contains at least one bedroom, a full working kitchen and bathroom and houses one family. Utah Code means the Utah Code Annotated 1953, as amended, from time to time. VA means the Department of Veterans’ Affairs of the United States of America. Veteran means a person who served in the active military, naval or air service, and who was discharged or released therefrom under conditions other than dishonorable.
Except for words and phrases which are defined herein, and unless the context clearly indicates another definition, words and phrases used herein shall have the same meanings as such words and phrases in the applicable General Resolution of Utah Housing.
Copyright© 2017 Utah Housing Corp. and its licensor. ALL RIGHTS RESERVED. Without the prior written permission of 97 Utah Housing Corp., no part of this work may be used, reproduced, or transmitted in any form or by any means, by or to any party outside of Utah Housing Corp.