Welcome to the South Carolina State Housing Finance and Development Authority - Lender Forum
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Welcome to the
South Carolina State
Housing Finance and
Development Authority
Lender Forum
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without
express permission from Freddie Mac is prohibited.
Palmetto Home Advantage
Financing Housing. Building SC.
Revised 2-25-14
Speaker Introduction
Claude Spurlock
Insert photo here
South Carolina State Housing Finance
Development Authority
Email: Claude.Spurlock@schousing.com
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 3
express permission from Freddie Mac is prohibited.
Palmetto Home Advantage
Competitive pricing. Flexible Options. Conventional Ease.
“Palmetto Home Advantage” is
designed to serve both first-time
and move-up borrowers.
The programs conventional option
offers mortgage insurance at reduced
rates based on the
Freddie Mac HFA Advantage.
4
Program Features
• No First-time Homebuyer requirement –
move up borrowers are eligible
• Conventional income limit is
Palmetto Home Advantage
Eligibility Criteria
• 1 Unit properties (Single Family, PUD and Bank • No manually underwritten loans
Approved Condominiums)
• No escrow holdbacks for repairs/completion
• No manufactured housing
• No High Cost, or Homeownership Equity Protection Act
• No leasehold properties (HOEPA) loans
6
Palmetto Home Advantage
Certificate of Eligibility
The following documents must be submitted to SC Housing prior to closing for compliance/eligibility review.
If acceptable, SC Housing will issue a Certificate of Eligibility:
• Request for Eligibility Determination Form “PA-01” • LPA Findings
• Notice to Borrower Form “PA-02” (Only required if • MI Certificate
borrower is receiving down payment assistance)
• Homebuyer Education Certification (at least one
• 1008 – Uniform Underwriting Transmittal Summary borrower must complete)
• 1003 – Uniform Residential Loan Application
7
Palmetto Home Advantage
Registration and Rate Lock
• Loans must be closed, delivered and purchased by • Do not lock the interest rate at the time of application
Lakeview Loan Servicing within 60 days of the initial
• Rate locks may only be extended once prior to
reservation/rate lock
expiration
• Loans that are not delivered by the delivery/expiration
• Loans may be reserved/rate locked Monday – Friday
date are subject to cancellation
between 10:00 AM and 6:00 PM
• Loans aged more than 45 days from the note date and
• Rates are subject to change without notice
receipt of the credit and closing file in fundable condition
will not be purchased by Lakeview Loan Servicing
8
Thank You
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without
express permission from Freddie Mac is prohibited.
Leading the Future of Home
Speaker Introduction
James Hall
Affordable Lending Manager
Insert photo here
James manages relationships with
lenders, housing finance agencies,
housing intermediaries and other key
stakeholders on behalf of Freddie Mac,
to educate and better serve, well
Email: James_Hall@freddiemac.com
deserving families.
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 11
express permission from Freddie Mac is prohibited.Making Home Possible for
50 Years
• Freddie Mac was chartered by Congress in 1970 and
operates in the Secondary Mortgage Market
• Mission to promote liquidity, stability, and affordability in
housing – nationwide, in all economic conditions
• Community mission
– Stabilize communities
– Prevent foreclosures
– Expand credit responsibly
– Educate future homebuyers and counsel homeowners
– Support affordable rental housing
• Three main business lines
– Single-Family (1- to 4-unit for-sale properties)
– Multifamily (5+-unit for-rent properties)
– Capital Markets
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 12
express permission from Freddie Mac is prohibited.Leading the Future of Home
Insights Education
Insights through research studies, thought leadership, Events, training and financial literacy curricula to help
speaking opportunities, expert contributions and data better prepare borrowers for homeownership and to
to position our clients and partners for success. promote responsible and sustainable behaviors.
Mortgage Products Business Solutions
Mortgage offerings that meet borrower needs and Services, resources, tools and technologies that enable
opportunities, now and in the future, to include: low ecosystem professionals to serve as trusted advisors
down payment options, energy-efficient properties, and to select the best possible option for their borrower.
factory-built housing and renovation mortgages.
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 13
express permission from Freddie Mac is prohibited.The Affordable Ecosystem
Local Builders &
It takes many hands to Loan Real estate
governments developers
officers professionals
make home possible.
Partnership and
Mortgage &
collaboration across the Housing
banking
counselors
affordable ecosystem are executives
critical to drive business
opportunities and make the
State
dream of home a reality for Appraisers
governments Housing
Non-profit
families. finance
organizations
agencies
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 14
express permission from Freddie Mac is prohibited.Market Analysis
First-Time Homebuyers
June 2018-June 2020
First-Time Homebuyer Demographics FTHB
• 86% of Younger Millennials and 52% of Older Millennials were first-time home
buyers, more than other age groups.
• At 64%, the primary reason for purchasing a home was the desire to own a
home of their own 9% Unmarried Couple
• 88% of FTHB were 29 years and younger 9%
Single Male
• First-time buyers who financed their home typically financed 93 percent of their
home Single Female
18%
• Down payment sources – 78% savings; 24% gifts from friends or relatives Married Couple
64%
• 25% used FHA loans
• FTHBs plan to stay in homes for 10 years
Source: National Association of Realtors 2020 Profile of Home Buyers and Sellers 16All In for First-Time Homebuyers
31% First-time homebuyer percentage has remained the
same from previous year Fifty-two percent of buyers
of borrowers 30 to 39 years and 88 percent of buyers 29 years
are first-time
and younger were first-time home buyers.
As housing demand moves from rent to own, first-time homebuyers
will continue to maintain an outsized role in the housing market
86% of Younger Millennials
were FTHB 86%
Source: National Association of REALTORS®, Home Buyers and Sellers Generational Trends Report 2020 17The U.S. is Becoming More Diverse
Distribution of Race and Hispanic
Ethnicity by Age Groups
Source: U.S. Census Bureau, 2019
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 18
express permission from Freddie Mac is prohibited.Identifying Buyer Solutions
HFAWorking with HFAs
Freddie Mac provides HFAs with a source of liquidity and supports their service to
low- and moderate-income borrowers
Launched HFA Advantage® mortgage, our enhanced product for housing finance agencies, which includes:
• 97% LTV, 105% TLTV (1-unit)
• HFA income limits in lieu of Home Possible® Area Median Income limits
• HFA determines homebuyer education requirements
• Credit enhancement options including Charter-level mortgage insurance coverage
Your Next Steps to help make home possible for your client:
• Engage with master servicers who have relationships with smaller state and local HFAs
• Contact your state or local HFA for program details
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 20
express permission from Freddie Mac is prohibited.HFAs Role and Impact
• For over 50 years, housing finance agencies
(HFAs) have played a key role in the nation’s
affordable housing ecosystem
• HFAs serve low- and middle-income
households, first time homebuyers, and other
specialty segments
• HFAs have delivered more than $450 billion in
financing for the purchase, development, and
rehabilitation of more than 7 million affordable
homes and rental apartments
Source: NCSHA- State Housing Finance Agencies: The
21
Center of the Affordable Housing SystemHFAs: An Opportunity for You
• Ideal for borrowers with limited funds for down payment and closing costs and those needing
extra flexibilities on credit and income sources
• Reach more potential homeowners through HFA programs that:
– Provide low down payment options
– Offer preferential pricing
• Majority of HFAs provide “true grant” funds or affordable secondary financing as part of their down
payment assistance programs
• An alternative to FHA financing
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 22
express permission from Freddie Mac is prohibited.HFAs Reach Undeserved Borrowers
and Markets
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 23
express permission from Freddie Mac is prohibited.HFAs Often Lead in Serving Borrowers
of Color
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 24
express permission from Freddie Mac is prohibited.HFA Advantage® Mortgage
One-unit primary residence
High loan- to-value (LTV) Income limits established by the HFA
conventional offering
Purchase and no cash-out refinancing that’s an excellent Available to first-time homebuyers,
alternative to FHA repeat buyers, & borrowers
lending requirements and seeking no cash-out refinances
Maximum 97% LTV and 105%
total loan-to-value (TLTV ratios) mortgage premiums.
Flexible funding options for down
Loan Product Advisor® manual UW or Adopts the requirements payment and closing costs
alternative UW process subject to prior approval of Home Possible® but
with added flexibilities for
HFAs. Flexible MI options available
No reserves required
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 25
express permission from Freddie Mac is prohibited.HFA Advantage® Mortgage –
Mortgage Insurance
HFA Advantage Mortgage Standard Mortgage
LTV Ratio Insurance Coverage Insurance Coverage
(Fixed rate only) (Fixed rate, term >20 years)
Greater than 80% up to 85% 6% 12%
Greater than 85% up to 90% 12% 25%
Greater than 90% up to 95% 16% 30%
Greater than 95% up to 97% 18% 35%
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 26
express permission from Freddie Mac is prohibited.Why Choose HFA Advantage ® Mortgage
over FHA?
HFA Advantage® FHA
MI ends when LTV < 80% OR MI stays for the life of the loan
Conventional MI: monthly premium OR FHA: Upfront AND monthly premiums
MI only required if the LTV is 80% or higher OR MI required regardless of the LTV
No upfront MIP OR Upfront MIP added to principal AND amortized
WHAT THIS With more funds applied toward the principal up front, an HFA
MEANS: Advantage mortgage with PMI lets the borrower build equity faster
Mortgage Insurance (MI)
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 27
express permission from Freddie Mac is prohibited.Supporting Your Business with
Freddie Mac ResourcesReceive the Latest News and Updates
Sign Up For News and Updates: https://sf.freddiemac.com/about/single-family/subscription-center
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 29
express permission from Freddie Mac is prohibited.CreditSmart ® Financial Education
The CreditSmart® curriculum offers financial
Prepare future
education modules to meet the diverse
borrowers for
homeownership needs of consumers. It
sustainable
features topics such as credit, money
homeownership
management, homeownership, foreclosure
avoidance and more.
Use CreditSmart
• Free, online program on a flexible, interactive platform workshops to gain
designed to be accessible from multiple access points entre to community
• Multi-lingual options available partners and future
• Also offered through webinars and in-person
homebuyers
workshops (where available)
30CreditSmart® Homebuyer U
Homebuyer U is a part of the CreditSmart ® suite that focuses on homebuyer education:
• Available as a self-paced, online program that fulfills
first-time homebuyer education requirements for
obtaining a Home Possible® or HomeOneSM mortgage
• Six modules, each focused on a learning principle
including credit, money management, and how to
sustain and preserve your home purchase investment
• Interactive presentation of material including
knowledge checks, ability to start/stop, videos, and
voiceovers to provide a user-friendly experience
• Offered in English and Spanish
VISIT: Homebuyer U : Freddie Mac CreditSmart
31Translated Mortgage and Homebuyer
Education Documents
FHFA, Freddie Mac and Fannie Mae created an online,
industry-standard clearinghouse of translated
mortgage and homebuyer education documents for
housing professionals and their clients.
• Single repository of in-language tools to empower growing
limited English proficiency (LEP) borrower populations
• Addresses language barriers with clients to help navigate
all aspects of the mortgage life cycle
• Offers 500+ documents – English and translated Spanish
and traditional Chinese
• Features Spanish and traditional Chinese glossaries of
mortgage-related terms
VISIT: https://www.fhfa.gov/mortgagetranslations • Vietnamese, Korean and Tagalog languages planned for
future enhancements
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 32
express permission from Freddie Mac is prohibited.Borrower Segment eBooks - All For Home Insights
Don’t miss the Freddie Mac eBook series on important borrower segments
eBooks feature Freddie Mac data and insights to
showcase needs, opportunities and solutions for critical
borrower populations
• Hispanic Americans: A Driving Force in the Housing
Market
– Read the eBook here:
https://sf.freddiemac.com/content/_assets/resources/pdf/
other/hispanic_borrower_ebook.pdf
• Key Opportunities for Building the Future of Home –
Unlocking Solutions to Affordable Homeownership
– Read the eBook here:
https://sf.freddiemac.com/resources/affordability-thought-
leadership
VISIT: https://sf.freddiemac.com/working-with-us/affordable-lending/news-insights
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 33
express permission from Freddie Mac is prohibited.Home Starts Here Podcast Series
• Freddie Mac recently announced the Fall 2019 launch of the Freddie
Mac Single-Family Home Starts Here podcast series.
• The podcast provides an opportunity to spotlight industry topics,
opportunities for the growth and perspectives of Freddie Mac thought
leaders and housing ecosystem experts and influencers.
• Each podcast is 10 - 15 minutes in length and provides a front row
seat to the conversations that are shaping the future of home.
• Listen and subscribe on Apple iTunes, Google Play or anywhere you
prefer to listen to your podcasts.
• You may also visit https://sf.freddiemac.com/news-insights/home-
starts-here-podcast/overview to find an overview of podcast episodes.
– All podcast episodes are currently audio-only
– Transcripts of sessions coming soon
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 34
express permission from Freddie Mac is prohibited.Freddie Mac – HFA Resource Center
Housing Finance Agency Resource Center
• A digital information hub designed for HFA staff and their
business partners
• Compiles relevant Freddie Mac research, insights, and
thought leadership in one convenient place.
On the HFA Resource Center, you can now:
– Register for new HFA related events
– Download presentations from past events
– Read and share relevant insights and articles
– Listen to our Home Starts Here podcast episodes
VISIT:https://sf.freddiemac.com/working-with-us/housing-finance-agencies/hfa-resource-center
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 35
express permission from Freddie Mac is prohibited.YOU Are the Critical Link
• YOU are the critical link to helping well • Homebuyer dream realized—and more
qualified homebuyers achieve their business for you—if you know your market
homeownership objectives: and where to find those affordability gap
– Provide access to credit; originate loans to the full solutions
extent of Freddie Mac’s credit box
– Utilize your mortgage finance expertise
– Explain the process and dispel the 20% down
payment myth
– Identify and match available financial resources in
your area (government, nonprofit, private
sources) with a sustainable mortgage solution
– Take advantage of Freddie Mac training and
resources for yourself and your borrower Freddie Mac is here to help!
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 36
express permission from Freddie Mac is prohibited.Freddie Mac Loan Product Advisor SM
Speaker Introduction
James Clement
Lender Strategy & Integration Manager
Insert photo here
James is responsible for managing the
Affordable team within Lender strategy
and Integration as well as providing
technical and operational strategy and
support to the East Region Housing
Email: james_clement@freddiemac.com
Finance Agencies.
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without 38
express permission from Freddie Mac is prohibited.Loan Product Advisor
Select HFA Advantage in the
“Offering Identifier” field within
the “Mortgage Type and Loan
Terms” section of Loan Product
Advisor.
If using a Loan Origination
Software (LOS) system, please
contact them to verify what
field and value to enter. Some
LOS systems may have you
enter “251”.
39Loan Product Advisor Feedback
Certificate
Verify the loan was
submitted correctly by
ensuring the value entered
in the “Offering Identifier”
field is showing HFA
Advantage. This is found
in the “Mortgage
Information” section of the
Loan Product Advisor
feedback.
40Down Payment Assistance:
Non-Amortizing Subordinate Financing
41Down Payment Assistance:
Amortizing Subordinate Financing
42Mortgage Details
43Purchase eligibility and AUS Risk Class
44Purchase Restriction Messaging
• Purchase eligibility must be
“Eligible”.
• Ineligible reason messages
will be clearly displayed on
the feedback certificate
45Caution Related Feedback Messaging
46Qualifying Ratios
47Loan Product Advisor- Mortgage Details
48Loan Product Advisor Feedback
Certificate
49Message Summary
50MI Specific Messaging
51Data Quality Messaging
52800-FREDDIE
Specialists trained in HFA Advantage
Review individual loan scenarios
Assist with LPA Feedback
53Thank You
© 2021 Freddie Mac. All Rights Reserved. Distribution outside your organization without
express permission from Freddie Mac is prohibited.You can also read
