A Loan Origination and Servicing Solution For Habitat for Humanity

A Loan Origination and Servicing Solution For Habitat for Humanity Affiliates Habitat for Humanity Michigan Fund, Inc. HFHMF —  Created to assist Habitat for Humanity Affiliates with mortgage origination and servicing; —  A non-­‐profit, 501c3 corporation; —  Governed by an independent Board of Directors; —  Staffed by licensed Loan Officers in compliance with the SAFE Act; —  Licensed/Exempted in Michigan, Indiana, Ohio, North Carolina and South Carolina to originate and service mortgage loans —  Served by an Advisory Board made up of mortgage professionals and Habitat for Humanity Affiliates. HFHMF Loan Origina9ons —  Meet all state and federal compliance and regulations —  State and Federal license loan originators and processors. —  Full processing —  preparation of application —  preparation of all disclosure in re-­‐disclosure documentation —  collection of all income , credit and asset documentation —  order title, appraisal, and flood cert. —  Underwrite all loans to HFHI & CFPB requirements —  Preparation closing documents —  Facilitation and management of all closings —  Free pre-­‐approval for partner families prior to board approval Pre-­‐Approval Process Flow Op9on 1 2 3 4 5 Family Section Loan Approval Build/ Education Full Loan Approval Closing •  Basic/Credit •  Complete apt. report income •  Collect income, review credit and asset •  Family interviews documentation •  Home visit •  Issue all disclosures •  Review from loan options •  Underwrite •  Issue loan approval or notice of action •  If denied provide recommendations to affiliate •  Work any credit/ income item •  Sweat equity •  Home Buyer Ed •  credit & budgeting, insurance, preventative health care, wills and estate planning, effective parenting, home maintenance Education •  Mid point update of credit. •  Order Title, flood •  Update apt., income, credit, asset doc. title •  Order appraisal •  Rent verification •  Final underwrite loan •  Insurance dec. •  Closing doc. •  Close •  Book loan to servicing system HFHMF Servicing —  Daily collection and posting of homeowners’ payments —  ACH payments are available —  Phone payments are available —  Partner Family and Affiliate’s website —  Payment of all taxes and insurance bills —  Annual escrow analysis – allows for Affiliate’s input in determining new monthly payment —  Reporting to major credit bureaus HFHMF Servicing —  Monthly reporting —  Accounting reports — 
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Negative escrow trial balance Late charge collections New loan report Portfolio Trial Balance Remittance Summary —  Delinquency reports — 
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Aged Delinquency Report Past Due Report Weekly and Monthly Collection Report Monthly Repayment Plan Summary Report —  1099s —  Annual Statements —  sent to all homeowners by January 31st HFHMF Servicing —  Online Access to mortgage portfolio 24/7 —  Homeowners also have access to their own account online —  Payment history —  Taxes & Insurance payment record —  Loan balances, payoff requests —  Other HFHMF Servicing Collec9ons —  Collections by HFHMF —  HFHMF assumes responsibility for collections activities: — 
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scheduled contacts and follow-­‐up, repayment schedules, inspections, loss mitigation options. —  HFHMF initiates and monitors foreclosures and monitors bankruptcies. HFHMF Servicing —  Why should a Habitat Affiliate partner with HFHMF? —  Proven track record — 
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1st Mortgage lender in USA created by Habitat SSO for Habitat Affiliates. Servicing mortgages for Michigan, North Carolina, South Carolina and Indiana Habitat Affiliates. Currently has servicing agreements with 78 Habitat Affiliates. Experience in large and small Affiliates’ portfolios, working with problem delinquencies, modifications, foreclosures and bankruptcies. Extensive experience in unusual or difficult servicing issues for Habitat for Humanity Affiliates. Has been originating Habitat for Humanity mortgages since 2009 and understands Habitat features such as gifted equity, right to repurchase, down payment assistance, etc. HFHMF Servicing Why should a Habitat Affiliate partner with HFHMF? —  Everything HFHMF does is with the Habitat Mission in mind! —  Affiliate is free of daily servicing, allowing more time to focus on family selection, construction and fund development. —  Affiliate has an experienced partner to help assist with decisions and execute difficult choices. —  Accommodates Homeowner-­‐Paid Monthly Servicing fee on new originations, including the option of allowing the Affiliate to charge the homeowner for the monthly servicing fee. HFHMF Servicing and Origina9on Questions Next steps Contact David Leclerc, President Habitat for Humanity Michigan Fund, Inc. [email protected] 800-­‐467-­‐5430, ext. 29