Lenders and Real
Estate Professionals
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Information for Single-Family
Lending and
Real Estate Professionals
Program
Announcement
November 2, 2010
Manual Updates Available
House Key Plus (Up to $10,000) with a reduced rate of 3% amortized over 10 years if the property is foreclosed, in foreclosure or a short sale will continue through December 31, 2011.
Heatwave funds for borrowers with a 680+ credit score without Commission downpayment assistance still available at low interest rates: wshfc.org/buyers/key.htm
The Commission is pleased to announce Bank of America’s revisions to the 203K Streamline program for state bond loans. We believe these changes will make it easier for our lenders to utilize this product with the House Key State Bond program.
Previously, your lending institution needed to administer and complete all rehab prior to selling the loan to Bank of America. Now, Bank of America will administer and complete the rehab. Lenders can send their loans to Bank of America for immediate purchase after loan closing with no delays.
The Commission will now require all borrowers who wish to take advantage of the 203K Streamline product also have a minimum 620 credit score and 1% or $1,000 of their own funds whichever is greater (no gifts) into the transaction. Please see manual updates at http://www.wshfc.org/sf/downloads.html.
At loan closing, the lender will show the supplemental origination fee (greater of 1.5% of the rehab portion of the loan or $350) payable to Bank of America on the final HUD 1 Settlement Statement and deducted from the lender’s wire at loan purchase. The Commission will allow the lender to charge an additional loan processing fee equal to the amount of the supplemental fee as part of the closing costs. It is up to the lender to determine with your compliance division how to best place this fee on your final HUD. This additional processing fee cannot show as origination or points on your final HUD.
In order to offer this product with the House Key program, your lending institution needs to document your HUD approval for 203K product with Bank of America. A majority of our lenders are already approved to offer the 203K Streamline product with Bank of America. If you are unsure regarding the status of your approval with Bank of America, please have your corporate contact Laura Khursheed at laura.khursheed@bankofamerica.com or 818-874-8161.
Here is a link to FHA’s Website which describes the program in detail:
http://www.hud.gov/offices/hsg/sfh/203k/203kslrp.cfm
If you have questions, please contact Lisa DeBrock at lisa.debrock@wshfc.org or 206-287-4461.