Own New Orleans Program Down Payment Grant

(Forgivable Grant) Program Issuer: Finance Authority of New Orleans

Administrator Guidelines Published: 03/12/15

Revised 07/19/20 Updates are shown on Page 4

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Time Zones eHousingPlus offices are all located in the Eastern Time Zone.

http://www.timetemperature.com/tzus/time_zone.shtml

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TABLE OF CONTENTSOWN NEW ORLEANS PROGRAM TEAM 5

CONTACT DIRECTORY 6

(Rev 07/19/20) 6

PROGRAM PRODUCTS 7

Daily Rate Lock Reservation Availability 7

Own New Orleans First Mortgage 7

PROGRAM REQUIREMENTS 9

Eligible Borrowers 9

Eligible Loan Area 9

Homebuyer Education 10

Income Qualifying and Income Limits 10

Purchase Price Limits 10

Property Requirements 10

ALL PROPERTIES IN THIS PROGRAM MUST HAVE FLOOD INSURANCE. 10

SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS 12

eHP Digital Docs 13

PROGRAM TIMETABLE — 15 and 70-DAY DEADLINES 19

Loan Processing, Delivery and Purchase Timetable 19

Loan Purchase Extension Fee 19

PROGRAM FEES 20

First Mortgage Fees 20

Lender Compensation 21

PROGRAM FORMS 22

DOCUMENTS REQUIRED FOR COMPLIANCE FILE 23

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2020 REVISIONS TABLE Archived Revisions Table found on the last page of this guide

Date Topic (effective immediately unless otherwise noted) Page

01-31-20 Revised Contact Directory Added Rate/Offerings Chart link Added Special Note for Freddie Mac HFA Advantage loans Revised FICO and Maximum DTI Revised Income Limits Added Freddie Mac overlays to property requirements Revised US Bank Web Site information Added note to timeline regarding Freddie Mac HFA Advantage loans Added Archived Revisions Table 2015 - 2018

6 7 8, 12 9 10 10 18 19 24

02-11-20 Revised income limits 10

07-19-20 Removed AIS Grant from guide Revised Contact Directory Added US Bank COVID-19 Guidance Revised Freddie Mac 80% AMI & lower income limits

throughout 6 9 10

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OWN NEW ORLEANS PROGRAM TEAM FANO, Participating Lenders, US Bank and eHousingPlus Partnership

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THE FINANCE AUTHORITY OF NEW ORLEANS(“FANO“ or the “Authority”)

Creates and sponsors a first mortgage program and a down payment/closing cost assistance program, sets the first mortgage

loan rate, term and points, funds the down payment assistance at closing through their Escrow Agent and markets the program.

Participating Lenders Take applications, reserve in their own systems,

reserve online, process, underwrite, approve, fund, close and sell qualified home mortgage

loans to the program. Lenders are responsible for servicing program loans in accordance with Agency requirements

until they’re purchased by the Master Servicer.

US BankMaster Servicer or Servicer

Provides information on acceptable loan products and delivery and funding, receives all first mortgage files, reviews first mortgage files,

notifies lenders of first mortgage file exceptions, approves first mortgage files, purchases loans, delivers resulting mortgage-backed securities.

eHousingPlus Program Administration

Maintains the program reservation system, website, and posts Administrator Guidelines, forms, training materials, provides

program and system training, answers program and system questions, receives compliance files, reviews, posts and notifies

of exceptions and approves loan compliance file.

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CONTACT DIRECTORY 954-217-0817 or Toll Free (888) 643-7974

(Rev 07/19/20)

Question Option # email

Lender On-boarding/Training (Program & System) Option #4 Click here

Lender On-boarding/User Access (Credentials, Disabled Access, etc) Option #1 Click here

eHPay - Digital Payment of Compliance Fees Option #3 Click here

Program Eligibility Questions - READ THIS GUIDE FIRST Option #4 Click here

Deficiencies - Access the Deficiencies/Exceptions Report on the eHPortal, under Reports. If you have a specific question related to a missing or incorrect delivery, you can contact us.

Option #5

NO EMAIL Upload

ONLY to Digital Docs

Loan Specific Questions - If you have any questions related to a specific loan already in our system, need to make changes that are locked or other borrower issues.

Option #6 Click here

Questions about the Compliance File, Deficiencies and Missing Documents (do NOT email deficiency or missing documents, upload ONLY to Digital Docs)

Option #7 Click here

System Errors - Technical Assistance Option #7 Click here

DU Findings, DTI, Insurance, Collateral and Purchase of the loan questions all need to be addressed by the Servicer directly. eHousingPlus cannot assist you with questions related to these items.

U.S. Bank (800) 562-5165

Click here

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PROGRAM PRODUCTS

PLEASE NOTE THAT RATES AND ASSISTANCE AMOUNTS ARE SUBJECT TO CHANGE AT ANY TIME. With respect to reserved loans, the rate and assistance will not change as long as loans are delivered according to the timetable included in this Guide. The program offers government and conventional loans.

Daily Rate Lock Reservation Availability Reservations in this program are available Monday-Friday 9:00 am – 4:00 pm MT excluding Holidays. Funds are available in a first-come, first-served revolving pool that provides continuous funding. Click here to view the Rates/Offerings chart for the Lock Rate, FICO and DPA (click on RATES/OFFERINGS tab). (ADDED 01/31/20)

Own New Orleans First Mortgage Click here to view the Rates/Offerings chart for the Lock Rate, FICO and DPA (click on RATES/OFFERINGS tab). No defined limit for first mortgage funds -- continuously funded pool to be replenished and/or supplemented as loans are pooled and delivered. The borrower receives a 30-year, fixed rate, fully amortizing first mortgage loan with 360 level monthly payments. The participating lender will fund the first mortgage at closing and sell the loan to the program Master Servicer, US Bank. (Rev 01/31/20)

The following mortgage products are offered in this program: FHA, VA, RD and Freddie Mac HFA Advantage conventional loan. US Bank provides the types of government and conventional loan products permitted. The program offers down payment and closing cost assistance in the form of a forgivable grant (second mortgage). (Rev 08/15/17)

Own New Orleans Down Payment Assistance Grant The assistance is in the form of a forgivable second mortgage, sized at 3% or 5% of the full Note amount. The second mortgage may be used for down payment, closing costs, prepaid, upfront private mortgage insurance and other related program and mortgage loan fees and expenses. The second mortgage proceeds may not be used to pay off debt, nor may any surplus funds from the second mortgage be paid to the homebuyer over and above any reimbursable fees paid prior to the close of escrow. The Second Mortgage offered with the program’s First Mortgage Loans can provide up to 100% of the homebuyer’s cash to close. (Rev 08/15/17)

The forgivable second mortgage is a five-year, deferred loan that is FORGIVEN at the rate of 20% each year, over the term of the second mortgage loan provided the borrower is not in default. FANO will fund the second mortgage at closing and US Bank will service the second mortgage. (Rev 08/15/17)

Second Mortgage Disclosure Requirements FANO’s position is that its DPA Grants are NOT subject to TILA and RESPA regulations. As a result, Participating Lenders will not be required to complete the TRID disclosures. FANO has provided a TRID Letter that offers a more detailed explanation and may be found within the eHousingPlus Lender Portal Loan Forms section. (Rev 08/15/17)

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SPECIAL NOTE FOR FREDDIE MAC HFA ADVANTAGE CONVENTIONAL LOANS

EFFECTIVE WITH NEW LOAN RESERVATIONS January 21, 2020, the HFA Advantage conventional loan product will change. Borrowers with income limits at or below 80% AMI will still be allowable in the program. HFA Advantage conventional loans with income greater than 80% AMI will no longer be allowable.

Borrowers with income at or below 80% AMI will continue to receive the following benefits of the HFA Advantage pricing:

•97% LTV – 105% TLTV •Charter level MI coverage – 18% •No loan level pricing adjustments

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PROGRAM REQUIREMENTS

U.S. Bank COVID-19 Guidance U.S. Bank has developed a dedicated HFA COVID-19 Frequently Asked Questions and Guidance for Lenders webpage. The FAQ and guidance provide answers to frequently asked questions regarding U.S Bank Home Mortgage’s residential mortgage temporary relief policy updates as they relate to COVID-19. Please continue to reference the U.S. Bank Seller Guide as the primary resource for all U.S. Bank policies. Click on this link to be redirected to the U.S. Bank web site. Click on the Learn More button found under the heading, Enjoy Housing Finance Agency Services. Your web page will be redirected to the AllRegs site for US Bank HFA Division. (Added 07/19/20)

Eligible Borrowers• There is no first-time homebuyer requirement in this program.• Follow Agency (FHA, VA, Freddie Mac) and U.S. Bank guidelines for non-citizens. • Buyers must occupy the property within 60 days of closing. • Freddie Mac HFA Advantage Conventional Loan, a borrower CANNOT own other property at the

time of closing. (Added 05/19/17)• Applicants must be considered irrespective of age, race, color, religion, national origin. • Lender should contact the Agency (FHA, VA, RD, Freddie Mac) regarding ownership of other

property. (Rev 12/12/18)

Eligible Loan AreaWithin the city limits of the City of New Orleans.

Minimum Credit ScoreEffective with new loan reservation 01/06/20 Contact US Bank HFA Division with any questions regarding acceptable automated underwriting system, 800-562-5165. The Program requires a minimum FICO credit score, the mid score must be the minimum or above. Click here to view the Rates/Offerings chart for the Lock Rate, FICO and DPA (click on RATES/OFFERINGS tab). For a limited time, FHA loans minimum FICO is 640. VA and Freddie Mac minimum FICO is 640. If an Agency (FHA, etc) has a higher minimum, follow Agency guidelines. If a participating lender has a higher minimum for other loans and wishes to require a higher minimum for loans, then lenders must use the higher minimum. (Rev. 01/31/20)

DTI Requirement Effective with new loan reservations 01/06/20 • The program maximum DTI ratio is 45% for FHA, VA and Freddie Mac loans with a minimum

640 FICO. • The program maximum DTI ratio is 50% for FHA and Freddie Mac loans with a minimum 680

FICO. Offered for a limited time for FHA loans. • Lenders must comply with Mortgage Insurance DTI requirements which may limit the maximum

DTI for borrowers with a FICO under 700. (Rev. 01/31/20)

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Homebuyer Education The Authority requires homebuyer education for first-time buyers. Borrower may select any certified non-profit homebuyer education provider from the Louisiana Homebuyer Education Collaborative. See the “Homebuyer Counseling Section” on www.financeauthority.org for a list of the certified homebuyer organizations.

Income Qualifying and Income Limits FHA, VA and Freddie Mac LoansUse Form 1003 credit qualifying income as the qualifying income in the program.FHA, VA, RD Loans Effective with new loan reservations 02/11/20Freddie Mac Loans Effective with new loan reservations 07/12/20

(Rev 07/19/20)

Purchase Price Limits No purchase price limits at this time. Agency (FHA, etc) loan limits apply.

Property Requirements ALL PROPERTIES IN THIS PROGRAM MUST HAVE FLOOD INSURANCE. • New or existing residential, one-TWO units*, detached or attached, condos** and townhomes.

• *Freddie Mac Loans - 1 Unit property ONLY • Follow US Bank guidelines for condominiums. • Homes are considered new if never previously occupied. • Mobile homes, recreational, seasonal or other types of vacation or non-permanent homes are not

permitted.

**When using the Freddie Mac HFA Advantage conventional loan for a condo, LTVs from 95.01-97% are acceptable, the project must meet Freddie Mac guidelines as well as U.S. Bank. Please reference U.S. Bank bulletin 2017-05 and HFA lending guide Section 800 for complete details on condo project review/approval requirements. (Added 01/31/20)

FHA/VA Loans Freddie Mac HFA Advantage LoanAT OR BELOW 80% AMI ONLY

$94,360 $61,360

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ABOUT THE FINANCING

It’s expected that lenders have reviewed some preliminary documentation and believe that applicants will also qualify for credit. Excessive cancellations will be reviewed to assure that allocation is not being utilized inappropriately.

FHA, VA, RD and Freddie Mac HFA Advantage conventional loans are permitted. Find the specific government and conventional loan products permitted on the US Bank website. (Rev 05/19/17)

Check with your underwriter for updates to information for Freddie Mac HFA Advantage. Such information is provided by a third party (i.e.Freddie Mac, U.S. Bank, etc) who do not provide updated information to eHousingPlus. (Added 05/19/17)

Freddie Mac HFA Advantage Fact Sheet: http://www.freddiemac.com/singlefamily/pdf/hfa_factsheet.pdf (Added 05/19/17)

AN IMPORTANT RULE — If a topic is not addressed or detailed in these guidelines, IT IS NOT PERMITTED IN THE PROGRAM.

Appraisal - The appraisal must indicate that the home has at least a 30-year remaining useful life.

Assumptions - Follow Agency Guidelines.

Buydowns - Follow Agency Guidelines.

Cash Back - Cash Back to the borrower is not permitted. However, borrowers are permitted a reimbursement of pre-paids and overage of earnest money deposit as permitted by Agency guidelines and to the extent any minimum contribution, if any, has been satisfied.

Construction to Perm - Not permitted.

Co-signers - Co-signers are not permitted in this program.

Manual Underwriting for FHA loans - See U.S. Bank bulletin 2016-08 effective with new reservations as of September 1, 2016.  (Rev 07-26-16)

Minimum Borrower Contribution - Government loans, no minimum down payment required from the Borrower’s own funds.

Minimum Loan Amount - There is no minimum loan amount in this program.

Prepayments - The first mortgage may be prepaid at any time without penalty.

Recapture Tax - There is NO RECAPTURE TAX IN THIS PROGRAM.

Refinances - Refinances are not permitted in this program. However, temporary, bridge or construction loans with a term of 2 years or less may be taken out with a program loan.

Seller Contributions - Follow Agency (FHA, etc.) guidelines.

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SUMMARY OF THE COMPLIANCE ORIGINATION PROCESS (Revised 12/12/18)

MANDATORY PROGRAM TRAINING Lender training is mandatory for anyone working with this program. eHousingPlus and US Bank provide program training online 24/7. To attend click on this link.

eHousingPlus eHPortal and eHP Digital Docs Training We highly encourage anyone who will reserve funds, complete an underwriter certification, print forms or clear exceptions to attend this additional training. (Rev 12/12/18) Click here for eHPortal Training Click here for eHP Digital Docs Training

eHPortal USER CREDENTIALS Following completion of Program training at eHP University training, an email will be sent to lenders giving directions on how to apply for User Credentials for the eHPortal. These instructions are for both new users of system and existing users looking to add programs to their profile.

QUALIFY Lenders use program requirements to qualify applicants for the program. Buyers must present an executed sales agreement before being entered into the program reservation system.

RESERVE FIRST MORTGAGE FUNDS To reserve funds, use the eHousingPlus eHPortal. Log in and reserve the first mortgage that automatically provides Assistance. To reserve funds in the program the borrower is required to have a signed real estate purchase contract for a specific address. You will need a 1003 and the Real Estate Purchase contract in order to make a reservation. If the reservation is successful, you will receive a loan number and a message that you’ve completed the reservation successfully.

IMPORTANT - A reservation is for a borrower with a real estate purchase contract for a specific property. If the property needs to change, the loan must be cancelled and re-reserved. The lender is responsible for cancelling the loan within the eHousingPlus Lender Portal. And then, the lender must email (services@eHousingPlus.com) or call the eHousingPlus Compliance office at 954-217-0817 to have the borrower permanently removed from the eHousingPlus Lender Portal. Until this process is complete, the lender will not be able to re-reserve funds for the borrower. (Added 12/12/18)

PROCESS Lenders process the loan as they would normally keeping in mind the program timelines.

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UNDERWRITE AND CERTIFY Lenders underwrite & are responsible for credit decisions of the loans in the program. Servicer does not re-underwrite loans. Following credit approval AND WITHIN 15 DAYS OF LOAN RESERVATION, the Underwriter completes the online Underwriter Certification within the eHPortal. Once a loan is Underwriter Certified no further changes can be made. If a change needs to occur after the certification is complete, please email (services@eHousingPlus.com) or call the eHousingPlus Compliance office at 954-217-0817 to request to have the certification removed.

REQUEST DOWN PAYMENT ASSISTANCE FUNDS

DPA funds MUST be provided directly to the Closing Agent by FANO. Lenders may not advance these funds. These requirements apply to all loan types.

Lender reserves first mortgage. This automatically reserves assistance. Lender processes normally. Once the loan has been granted final approval internally, the Lender’s Underwriter will complete the online Underwriter’s Certification.

With a minimum 2 business day notice prior to the Loan Closing Date, lender will email the DPA Wire Request AND the Gift Letter to: Carolyn Simmons at csimmons@financeauthority.org A N D t h e f o l l o w i n g e m a i l a d d r e s s e s : a n g e l a . f y s s a s - l e a r @ w h i t n e y b a n k . c o m ; e r i c k . r a n t a @ w h i t n e y b a n k . c o m( R e v 0 8 / 0 1 / 1 6 )

Direct office telephone number for FANO is 504-524–5533

CLOSE It’s important to provide accurate closing instructions to closing agents. All program documents must be returned to the lender. The following forms are located within the eHPortal and must be signed by the borrower at closing:

• Notice of Down Payment/Closing Cost Assistance Grant Letter (the Original remains with Lender, provide a copy to borrower, copy to US Bank and a copy in the FHA Case Binder.

•COMPLIANCE FILE DELIVERY INSTRUCTIONS

•All compliance files are uploaded directly to eHousingPlus via eHP Digital Docs. •All exceptions / file deficiencies will be communicated to the Lender via email and will be posted in the eHPortal. Exceptions may be viewed online at the loan level and in an exceptions report. •Documentation requested to clear file deficiencies are uploaded directly in eHP Digital Docs. (Added 12/12/18)

eHP Digital Docs See pages 14 - 17 of this guide for detailed information about eHP Digital Docs.

New Digital Delivery Instructions eHP Digital Docs® eHousingPlus ™

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INSTRUCTIONS FOR THE DELIVERY OF COMPLIANCE FILES, FEES

AND CORRECTED DEFI’S.

Compliance Files and Corrections to previously submitted files with erroneous or missing

required documents will be managed through the eHousingPlus Digital Docs Portal.

This Digital Docs Portal provides lenders with all the tools necessary to deliver the

required documents for the approval of the originated loan(s) in their respective affordable

homebuyer programs. This Portal is a secure, easy to use and efficient way for lenders

to deliver the Compliance File, Correct DEFI’s and pay the required Compliance Review

Fees via our new eHPay on line fee approval, and related tools.

Who needs Access to eHP Digital Docs? Closers, Post-closers, Shippers, Defi/Exceptions and Accounting personnel.

FIRST STEPS

• You will need a Username and Password

to access eHP Digital Docs

a. If you are already an existing Active User of the eHPortal Lender Portal,

you will automatically be set up to use eHP Digital Docs. Your Username

and Password will be the same, but you may be prompted to change the

password if it does not meet security guidelines.

b. If you are NEW to any of the eHousingPlus Portals, you will need to

request User Credentials at www.ehousingplus.com/user-credentials

NEXT, ACCESS THE NEW EHP DIGITAL DOCS PORTAL

• As a participating lender to various programs, you already know that our web

page for the FANO Own New Orleans Program is where you access both

Program Info and the Systems.

HELPFUL TIPS FOR UPLOADING THE

COMPLIANCE FILE

• The site works best with the Google

Chrome browser. All other browsers

may encounter problems.

• If you cannot remember your

password, you can reset from the

eHP Digital Docs log in screen.

New Digital Delivery Instructions eHP Digital Docs® eHousingPlus ™

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• There are two icons you will immediately see:

o This is the existing Lender Origination Portal

o This is the NEW eHP Digital Docs Portal.

NOW YOU ARE READY TO DELIVER YOUR COMPLIANCE FILE…

The Compliance File should be a PDF file composed of all required documents on the

Checklist.

➢ By clicking “NEW UPLOAD” on the Digital Docs Menu, you will be able to upload

the file easily.

➢ Currently, there are three file types you will upload into the new DD Portal:

Compliance Files, DEFI’s, and/or pre-closing documents as required. Additional

uploads after the Compliance File are identified as Defis.

➢ There is a NOTES Feature in case there is any pertinent information you want to

add to the compliance documents.

➢ Once Submitted, the System will confirm that the document was uploaded

successfully, or it will present an error.

➢ All Files Uploaded, can be seen immediately in UPLOADED DOCS.

➢ All documents must be a PDF format and must not be locked or encrypted.

➢ Documents must be uploaded upright and in a clear legible format.

➢ Use the Checklist to make sure you are delivering al required documents.

…AND SUBMIT THE REQUIRED COMPLIANCE REVIEW FEE

➢ Compliance Review Fees may now be submitted separately from the

Compliance File.

➢ The eHPay is a secure, efficient method for lenders to pay the fees ON-LINE by

enrolling in this FREE Program. Loans managed through eHPay are processed

faster, without fee errors or other unnecessary delays. Accounting Staff can

access eHP Digital Docs and process the compliance fees payment easily via

eHPay.

New Digital Delivery Instructions eHP Digital Docs® eHousingPlus ™

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Not sure of the required fee for your loan? Use the FIND MY FEE feature

under PAYMENT CENTRAL and get the instant answer.

➢ Compliance Files Uploaded are NOT ready for review until the Compliance Review

Fee Payment has been received by eHP.

➢ FILES PENDING PAYMENT lists Compliance Files that have been uploaded

successfully, but whose fee payment is still pending. Lenders can monitor this

area to ensure their fees have been delivered in a timely manner.

➢ UNIDENTIFIED PAYMENTS are payments received from your company without

the proper identification to apply it to the intended loan. Lenders can monitor this

area to ensure that payments made are being properly identified with OUR LOAN

NUMBER.

➢ SHORT PAYMENTS If an incomplete payment is submitted, it will be displayed

indicating the amount paid and the correct fee amount.

TIPS

➢ Sign up for eHPay. This is a secure solution for the payment of fees. Talk to one

of our eHousingPlus Business Representatives about how you can sign up, and to

answer any questions related to this new service

➢ Make sure that every payment made is properly identified with OUR LOAN

NUMBER. This is particularly a problem with Wires and ACH payments, as well

as bundled payments. ACH/Wires do not properly identify loans in most cases

and hold up the processing of your loans!

CORRECTING DEFICIENT FILES

✓ CORRECTED LOAN DEFICIENCIES WILL NOT BE ACCEPTED VIA EMAIL.

The eHPortal (Lender Origination Portal) has various tools that alert lenders when a

Compliance File is delivered DEFICIENT. These multiple tools assist you, the lender, in

easily correcting these deficiencies and allow your file to be Compliance Approved in a

timely manner.

➢ System generated DEFI emails sent at time of review with corrective actions.

➢ Loan’s TIMELINE Tab depicts pending deficiencies ANYTIME you log in and view

your loan.

➢ EXCEPTIONS/DEFICIENCY Reports are available on the REPORTS Menu.

New Digital Delivery Instructions eHP Digital Docs® eHousingPlus ™

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WHEN YOU ARE READY TO SUBMIT YOUR CORRECTED DEFI’S OR MISSING DOCUMENTS

The Corrected DEFI’s are to be submitted and UPLOADED via eHP Digital Docs,

using the same easy method the Compliance File is delivered.

▪ Log in to eHP DIGITAL DOCS

▪ Search for your loan

▪ NEW UPLOAD: select your file(s), and if prompted select

Corrected DEFI as ‘Type’.

▪ The NOTES Feature is available to add any relevant information if

needed.

▪ YOU’RE DONE!

▪ Defi’s may be uploaded as a lender receives a document.

▪ Corrected Defi’s may be view in eHP Digital Docs under, Uploaded

Docs.

QUICK TIPS

➢ Save time by trying to consolidate corrections to your loan files.

➢ Working on DEFI’s might be easier if grouped by loan & Program; typically, the

same types of errors occur based on varying Program Criteria.

➢ Use the reports available on the eHPortal (EXCEPTIONS/DEFICIENCIES) as a

guide and deliver them easy using eHP Digital Docs.

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SUBMIT MORTGAGE FILE & CREDIT PACKAGE TO SERVICER

The Mortgage File including Credit Package and it is sent to US Bank. The US Bank Delivery and Funding Checklist is found within the US Bank web site. To locate the US Bank Checklist click on this link. Click on the Learn More button found under the heading, Enjoy Housing Finance Agency Services. Your web page will be redirected to the AllRegs site for US Bank HFA Division. If you experience any technical difficulty, please contact US Bank HFA Division directly at 800-562-5165. (Rev. 01/31/20)

US BANK notifies lenders of Exceptions, posts exceptions online and sends a weekly summary of outstanding exceptions.

APPROVALS

Following approval of Compliance File by eHousingPlus, lenders are notified and reminded of the purchase deadline.

FINAL DOCUMENTS The recorded mortgage documents, for both the first and second mortgages, should be sent to U.S. Bank.

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PROGRAM TIMETABLE — 15 and 70-DAY DEADLINES

Buyers MUST HAVE A FULLY- EXECUTED SALES CONTRACT FOR A SPECIFIC PROPERTY in order to have funds reserved or be on a waiting list. The contract may be dated prior to the date of the loan application. Buyers may be pre-qualified. However, if the buyer does not have a contract on a property, program funds cannot be reserved for the buyer until such time as the buyer presents a valid contract. To assure that loans are purchased, please follow the Processing, Delivery and Purchase Timetable below. Please DO NOT reserve loans that cannot meet the timetable.

If the loan is not underwriter certified within 15 days of loan reservation, the loan is subject to cancellation. eHousingPlus via email notifies lenders that the loan may be canceled if the underwriter certification is not completed.    Should the loan reservation be canceled at any point during the reservation, the issuer may allow the loan to be reinstated at the higher of the mortgage rate originally reserved or the then current program mortgage rate. 

Please wait until 45 days before closing to reserve funds for new construction, short sales and foreclosures. Loans not purchased within the timeframe below cannot be purchased. However, please keep in mind that the revolving pool of funds assures continuous funding — fund availability makes it unnecessary to rush to reserve funds.

Loan Processing, Delivery and Purchase Timetable Once a loan is reserved in the eHousingPlus system and is provided the Servicer’s Loan number, the loan must be (1) underwriter certified within 15 days of loan reservation, and (2) purchased within 70 days of loan reservation.

Loan Purchase Extension FeeAny loan not purchased within 70 days will automatically receive a one-time only 30-day extension. The cost of the extension is $375 and the fee is due whether or not the Mortgage Loan is ultimately delivered by the Lender for purchase. If the Loan is delivered and purchased, the fee shall be charged and netted out of the Mortgage Loan purchase price paid to the Lenders, with a separate monthly payment to the Issue for all collected extension fees. If the extended Mortgage Loan is not purchased to U.S. Bank, the fee will be separately invoiced by the Issuers and paid by the Lender to the Issuers.

If a Rate Lock period (including extensions) expires with respect to a Mortgage Loan and such Mortgage Loan has not closed, no new Rate Lock may be made for the same Borrower, whether the property address is new or the same as the previous reservation, until sixty (60) days after expiration of the prior Rate Lock period (including extensions).

If a Lender participating in the Program has a high rate of cancellations of loan reservations, or otherwise engages in behavior inconsistent with Program goals, the Issuers reserve the right to consider the suspension or termination of such Lender with respect to the Program, even is such Lender is in good standing with the Master Servicer.

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PROGRAM FEES

First Mortgage Fees Effective with new loan reservations August 15, 2017 and after, 1.00% origination fee and no discount fees permitted in the program. (Rev 08/15/17)

eHousingPlus Fees The program includes a first mortgage Compliance/Admin Fee of $300 and a penalty fee of $100 for files that are chronically deficient. The Compliance/Admin Fee is submitted with the Compliance File. Read pages 14 - 17 of this guide for information about Payment Central located in eHP Digital Docs.

The Compliance/Admin Fee is the fee charged by the Program Administrator/Compliance Agent to process the applicant/borrower from Origination to Compliance Approval, and to assess that the lenders originating such loans are following Program guidelines for the benefit of the eligible borrower(s). The Program Administrator/Compliance Agent tracks the loan via its web-based system, and assists the lender in processing the loan ensuring eligibility to the program available offerings, which can include various rate options, and down payment assistance. (Added 10/14/15)

The Compliance/Admin fee includes the review of information and documents delivered in the form of a Compliance File by the originating lender, on behalf of the borrower. Additionally the Compliance review verifies that the lender has charged only the fees allowed by the Program. Contrary to this, approval may be denied and/or fees may have to be reimbursed to the borrower. The compliance file processing consists of required affidavits, application, closing documents, certain non-mortgage documents, tax returns where applicable and other pre-defined Program documents that are disclosed to the potential borrower(s). This is required to ultimately receive Compliance Approval. These documents can support both the first mortgage and any down payment assistance available, and are required to ensure eligibility to the Program, Federal, State and Local requirements, where applicable. The Compliance review verifies that the data and documents submitted meet all requirements, and may include those for first-time homebuyer, income limits, sales price limits, targeted areas, homebuyer education, rate, term, points, fee limits, LTV, FICO score, special state, city, county program requirements for qualified military, first responders, teachers, etc.). (Rev 08/22/16)

US Bank Fees $80 Tax Service Fee and $400 Funding Fee. These fees will be netted out at time of purchase by US Bank. (Rev 04/07/18)

FANO Fees $25 Wire transfer fee. (Added 08/15/17)

Lenders are permitted to charge reasonable and customary charges for out of pocket expenses and costs. Other financing costs such as legal fees and underwriting fees may be charged and courier fees may be charged if such fees are normally charged. Lenders may charge the usual and reasonable settlement costs. Settlement costs include titling and transfer costs, title insurance, survey fees or other similar costs. Other allowable fees include doc prep fees, notary fees, hazard, mortgage and life insurance premiums, recording or registration charges, prepaid escrow deposits and other similar charges allowable by the insurer/guarantor. "Junk" fees are not a defined term and may not be charged. Excessive fees are not permitted in the program.

FANO Own New Orleans Program - Down Payment Grant Page !21

Lender Compensation Effective with new loan reservations August 15, 2017 and after, on each loan the lender receives 1.50% SRP for FHA, Freddie Mac loans and 1.00% SRP for VA loans paid by U.S. Bank at loan purchase. (Rev 08/15/17)

Loan Type SRP Origination Total

FHA 1.50% 1.00% 2.50%

VA 1.00% 1.00% 2.00%

Freddie Mac 1.50% 1.00% 2.50%

FANO Own New Orleans Program - Down Payment Grant Page !22

PROGRAM FORMS The program forms MUST generated directly from the eHousingPlus Lender Portal at the loan level. The program forms MUST be printed from the eHousingPlus eHPortal ONLY. Any program forms printed anywhere other than the eHPortal will be deemed void and may cause a loan file to not be purchased.

This topic addresses the specific forms required for the program for originating, processing, closing and loan delivery.

PRE-CLOSING

DPA Wire Request After the Underwriter Certification has been completed in the eHousingPlus lender portal, the lender may print, execute, scan and email the DPA Wire Request to FANO 2 business days prior to closing. See page 13 of these guidelines for details.

CLOSING

Borrower’s Acknowledgment Signed by the borrower. Copy to borrower, Original to eHousingPlus. (Rev 08/15/17)

FANO DPA Grant Commitment Letter Signed by the borrower. Original retained by the lender, copies to borrower and US Bank. (Rev 08/15/17)

FANO Grant Second Mortgage and Note Signed by the borrower. Original recorded and shipped to US Bank. (Rev 08/15/17)

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DOCUMENTS REQUIRED FOR COMPLIANCE FILE Read pages 14 - 17 of this guide for information the compliance file submission to eHP Digital Docs. (Rev 12/12/18)

These are the required documents for this program. For accuracy with the payment of the Compliance Review Fee, please visit ‘PAYMENT CENTRAL’ and ‘FIND MY FEE’ in eHP Digital Docs.

• Homebuyer Education Certificate

• Real Estate Purchase Contract

• FINAL SIGNED 1003

• FINAL SIGNED CLOSING DISCLOSURE (TRID form)

• Warranty Deed

• FANO DPA Grant Program Borrower’s Acknowledgement

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Archived Revisions Table 2015 - 2018

Date Topic (effective immediately unless otherwise noted) Page

3-13-15 Fannie Mae MCM loans not yet available, two assistance amounts are permitted No origination fee permitted in program, SRP is 2.50% for FHA, USDA:RD, Fannie MCM and 2.00% for VA

6

13

6-23-15 All properties in this program must have flood insurance 7

9-5-15 Deleted references to FannieMae MCM throughout

9-26-15 Revised documents required for the compliance file language 15

10-01-15 Added Freddie Mac HFA Advantage information 17 - 25

10-14-15 Added eHP Fee information & revised US Bank fees 14 & 24

10-15-15 Added Who To Contact directory 7

10-15-15 Added disclaimer regarding not reproducing program forms 15 & 25

12-1-15 Added Product Chart Manufactured Housing Revised Manual Underwriting Revised

9, 25 10, 20 11, 21

03-08-16 Updated maximum income limit for FHA and VA loans Updated maximum income limit for Freddie Mac HFA Advantage Conventional Loan

10 20

07-26-16 Revised program Rates/Offering Chart Revised Manual Underwriting for FHA Loans Language Revised Manual Underwriting for Freddie Mac Loans Language

9 11 21

08-01-16 Added the Grant Gift Letter to the DPA Wire Request Process Added US Bank Manual underwriting overlays for conventional loan

13 & 23 20

08-22-16 Clarified eHousingPlus Fee Added eligible borrower requirement;Revised Conventional loan minimum FICO

15 &25 19

05-19-17 Removed separate Freddie Mac section of the guide & added overlays throughout Revised Who To Contact Directory Added Agency & US Bank overlay to Eligible borrower Added US Bank overlay to DTI Requirement Added Freddie Mac loan product to Income Limits Added Freddie Mac loan product to Property Requirements Added Freddie Mac HFA Advantage Fact Sheet link Revised US Bank tax service fee Revised US Bank Web Site link

6 9 9 9 10 11 15 18

FANO Own New Orleans Program - Down Payment Grant Page !25

08-15-17 Revised program name to Own New Orleans Revised grant assistance to forgivable second mortgage Added second mortgage disclosure language Revised Loan Products available on 08/15/17 Revised First Mortgage Fees, eHousingPlus Fees, US Bank Fees, Added FANO Wire Fees - All effective 08/15/17 Revised Lender Compensation effective08/15/17 Revised Program closing forms - added Borrower’s Acknowledgment, DPA Grant Commitment Letter and Grant 2nd Mortgage and Note Revised eHousingPlus Compliance File Checklist

7 7 7 8 15

16 17

18

REVISIONS TABLE CONTINUED ON NEXT PAGE

REVISIONS TABLE CONTINUED FROM PREVIOUS PAGE

04-07-18 Revised Property requirements to clarify condos Revised US Bank tax service fee effective04/30/18 Revised Documents Required for the Compliance File to include clarification

11 16 19

04-11-18 Revised income limits effective 04/01/18 10

05-07-18 Revised Freddie Mac income limits effective 04/13/18 Corrected Freddie Mac HFA Advantage Loan Max DTI Ratio

10 10

05-18-18 Added AIS Grant information to guidelines 8, 9, 10, 13, 14, 15

07-01-18 Added the 0% DPA Freddie Mac HFA Advantage loan option 9

07-30-18 Revised AIS Grant income limits effective 07/29/18 10

10-01-18 Removed USDA from allowable loan products 8, 10, 19

12-12-18 Changed eHousingPlus Lender Portal to: eHPortal Added language for a lender to contact Agency (FHA, VA, RD, Freddie Mac) regarding ownership of other property Added Mortgage Insurance language under DTI requirement Added eHP Digital Docs

Throughout 10

10 13, 15-19, 22, 24, 25

Date Topic (effective immediately unless otherwise noted) Page