Affinity Lending Group is an independent residential Mortgage Banking firm.
Founded in 2003, ALG is a direct-lending mortgage banker approved as a lender by the Federal Housing Administration (FHA); the Veterans Administration (VA); the Federal National Mortgage Association (Fannie Mae); the Federal Home Loan Mortgage Corporation (Freddie Mac); the Government National Mortgage Association (Ginnie Mae); the California Housing Finance Agency (CalHFA); the Nevada Housing Division (NHD); the California Public Employees’ Retirement System (CalPERS); the California Teachers’ Retirement System (CalSTRS); the National Homebuyers Fund (NHF); and many other major secondary market institutions.
Having funded in excess of $1 billion in residential real estate loans, ALG has assisted more than sixty thousand families with their mortgage needs. ALG enables families to enjoy the American Dream of Homeownership…“it’s the only thing we do.”
ALG has a longstanding tradition of providing unparalleled customer service and a reputation built on adding value to the home loan process. That’s why ALG should be considered…“ YOUR FIRST LENDING RESOURCE ”.
A Brief History of Affinity Lending Group
Who is CalPERS?
CalPERS is the California Public Employees Retirement System created in 1931 by state legislation and became operational for retirement benefits for state employees in 1932. In 1939, public agency and classified school employees were allowed to participate. It is:
The largest pension fund in the US
Assets in excess of $162 Billion
Over 1.5 million members.
CalPERS is available only to CalPERS members.
Borrower must participate in the CalPERS fund.
As of June 30, 2007 CalPERS provided benefits to over 1,086,900 active and inactive members and over 455,208 retirees.
Program offers special characteristics unique in the industry.
Virtually untapped market
Over 1.5 Million Members
High Quality Borrowers
Stable Employment History
W-2 instead of Schedule C
Average Fico Score in excess of 700
Strong Referral History
High Competitive Product
Controlled Closing Costs
CalPERS loans close
*Note: The above numbers include only Active & Inactive Members. The figures do not include Retired Members. *County Members % of Total Alameda 42,393 4.18% Los Angeles 182,136 17.96% Orange 50,794 5.01% Riverside 50,941 5.02% Sacramento 171,210 16.88% San Bernardino 42,745 4.21% San Diego 54,442 5.37% San Francisco 24,384 2.40% Santa Clara 53,641 5.29% Yolo 22,117 2.18% CalPERS Member Statistics (As of June 30, 2007) County Members Active & Inactive Members 1,086,900 Retirees 455,208 Total Members 1,532,108 State Employees 30% School Employees 38% Public Service Employees 32%
*County # of Units Purchased Property Loan Amount % of Total Loan Amount Fresno 539 $78,261,928 2.52% Los Angeles 1,272 $257,200,351 8.29% Orange 574 $127,491,011 4.11% Placer 555 $117,407,232 3.78% Riverside 1,228 $219,422,622 7.07% Sacramento 3,465 $628,385,653 20.25% San Bernardino 1,175 $192,857,213 6.22% San Diego 885 $182,486,160 5.88% San Luis Obisbo 737 $153,753,009 4.96% Solano 567 $115,836,075 3.73% Total (*Includes Originations outside of CA) 16,957 $3,102,951,484 CalPERS Home Loan Program Loans made since inception 130,385 $$ Loans made since inception $21.2 Billion Loans made since 7/1/07 (Fiscal Year) 1,676 for $409,377,054 Loans made outside of CA 1,320
State of California Employees
Eg., California Highway Patrol, CalTrans, State Prisons, State Hospitals, DMV, State Board of Equalization, Fish and Game, Frachise Tax Board, etc.
Participating County Employees
Eg., County Health & Human Services, Co. Dept. of Rehabilitation, Co. Public Works, Co. Building Inspection, Co. Libraries, etc. Some counties are exempt…
City Employees of Contracting Incorporated Cities
Eg., City Parks & Recreation Employees, City Mayor’s Office, City Fire Depts., City Libraries, City Clerk’s Office, etc.
School Employees, All Classified & Some Certificated
Eg., Cafeteria Workers, Administration, Custodians/Janitors, Yard Maintenance, etc.
California State University System Employees
Eg., All employees within the State University System, including Teachers/Professors and Cafeteria Workers, Administration & Custodian/Janitors, etc.
California Legislature Employees including Judges
Eg., Judges, Court Reporter, Bailiffs, Administration, etc.
Municipal Employees of Contracting Cities
Eg., City Utility Employees, such as Sacramento Municipal Utility District (SMUD Power), Water Districts (Sacramento Water Resource), Transportation Districts (Bart), etc.
1 st Mortgage Programs
Program descriptions are meant to be a supplement to Fannie Mae guidelines
Product guidelines are posted on http:// correspondent.citimortgage.com/calpers under “Participant Guide” and “Loan Eligibility Guidelines”
Unless otherwise specified in program description, use the most current version of published Fannie Mae loan documents
LTV / CLTV may be reduced by 5% in Declining Market Areas per Fannie Mae guidelines
Topic Description Conventional
Conventional Conforming Fixed
Conventional Non-Conforming Fixed
Conventional Libor ARMS
Interest First Fixed & ARMS
FHA 30 Year Fixed
Topic Description Loan Term 10 – 30 Years Purpose Purchase, Rate & Term, Cash Out Interest Only Yes – 30 Year Term only with 10 Yr IO Period Income Limits None UW Method DU acceptable EA-I & II eligible for Purchase 1-2 Units Minimum Fico DU on fully amortized loans 640 Minimum on Interest Only Loans Qualifying Ratios Per DU or Fannie Mae Guidelines Eligible Properties 1-4 Units, Condos, PUDS, Manufactured Homes (must meet Fannie guides) Other Properties Borrower can own other properties Mortgage Insurance See Guidelines CalPERS Personal Loan Allowed with Max 1 st LA up to $350k; CalPERS Personal Loan max if $18,421
Topic Description Loan Term 10 – 30 Years Purpose Purchase, Rate & Term, Cash Out Interest Only Not Available Income Limits None UW Method DU acceptable with Approve/Ineligible due to loan size only Minimum Fico 640 Minimum on Purchase & Rate and Term 680 Minimum on Cash Out Qualifying Ratios Per DU with Approved Ineligible due to loan size only; otherwise it’s a max 40% DTI Eligible Properties 1-2 Units, Condos, PUDS (Manufactured Homes NOT Allowed) Other Properties Borrower can own other properties Mortgage Insurance See Guidelines Subordinate Financing Allowed. Community 2nds are allowed. NO CalPERS Personal Loans
Topic Description Income limit May not exceed 100% AMI (140% in CA) except when in Fannie Neighbors area Loan Term 10 – 30 Years Interest Only Not Available Income Limits Income may not exceed 100% of HUD AMI except when property is in a Fannie Neighbors area; in which case, there are no income limits Purpose Purchase, Rate & Term UW Method DU acceptable with Approve/Eligible (EA-1 Eligible for purchase) Enter Non Occupant Co-Borrowers as HomeChoice (Ineligible just for that OK) Minimum Fico As determined by DU Qualifying Ratios As determined by DU Eligible Properties 1-2 Units, Condos, PUDS (Manufactured Homes NOT Allowed) Other Properties Borrower may not own any other properties Mortgage Insurance See Guidelines Subordinate Financing Allowed per Fannie Guidelines CalPERS Personal Loan Allowed with Max 1 st LA up to $350k; CalPERS Personal Loan max if $18,421
Topic Description Loan Term 10 – 30 Years Interest Only Not Available Income Limits None Purpose Purchase, Rate & Term UW Method DU acceptable with Approve EA Levels I & II Eligible for purchase (EA II with subordinate financing not allowed) Minimum Fico As determined by DU Qualifying Ratios As determined by DU Eligible Properties 1 Unit, Condos, PUDS (Manufactured Homes NOT Allowed) Other Properties Borrower can own other properties Mortgage Insurance See Guidelines MI cannot be financed on Flex Mortgage. Subordinate Financing Must be closed end; NO Helocs. Must be institutional 2 nd up to 100% CLTV or Community 2nds up to 105% CLTV. CalPERS Personal Loan Allowed with Max 1 st LA up to $350k; CalPERS Personal Loan max if $18,421
Topic Description Loan Term 30 Years – 3/1, 5/1, 7/1, 10/1 LIBOR ARM Purpose Purchase, Rate & Term, Cash Out Refinances Interest Only Available on the 7/1 and 10/1 LIBOR ARM Only. Not available for Manufactured Homes or Temporary Buy-downs UW Method DU acceptable with Approve EA Level Approvals allowed on 7/1 & 10/ ONLY (Not allowed on 7/1 & 10/1) Minimum Fico As determined by DU Qualifying Ratios As determined by DU Eligible Properties 1-4 Units, Condos, PUDS (Manufactured Homes on 7/1 & 10/1 ONLY) Mortgage Insurance See Guidelines Reduced or Lower Cost MI not available for ARM loans. Subordinate Financing Allowed per Fannie Guidelines CalPERS Personal Loan Allowed with Max 1 st LA up to $350k; CalPERS Personal Loan max if $18,421
Topic Description Loan Term 30 Years Purpose Purchase, Rate & Term, Cash Out Refinances, Streamline Refinances UW Method Fannie DU allowed & Freddie LP allowed Both must be risk scored by FHA TOTAL Scorecard Minimum Fico No minimum score required Qualifying Ratios 31/43 Standard or per DU or LP Eligible Properties 1-4 Units, Condos, PUDS (Manufactured Homes NOT ALLOWED) Mortgage Insurance See Guidelines Subordinate Financing Allowed per FHA Guidelines CalPERS Personal Loan Allowed with Max 1 st LA up to $350k; CalPERS Personal Loan max if $18,421. Conventional Loans Types FHA 30 Year Fixed Max LTV 97% (Purch/R&T) 95% (Cash Out) Max CLTV 103% Maximum 1st loan amount limits FHA Loan Limits by County
Down Payment Assistance Programs
Other Program Benefits
Fully Amortized loans with a 20 year term @ 8% Interest Rate as of May 15, 2008
Sized up to 8% of the Sale Price. Can be used to cover Down Payment and Closing Costs
Combined 1 st and any Financed MI cannot exceed 100% LTV
Combined 1 st , any financed MI and 2 nd loan may not exceed 105% CLTV
Can be used behind a 30 Yr Standard Conf Fixed, MCM, Flex Mortgage & FHA
1.25% Max Origination Fee on ACCESS 2 nd
1-2 Unit (1unit FHA only), Condos & PUDs (Manufactured Homes not allowed)
Borrower may not own any other properties at time of closing
Borrower must meet income requirements per NHF Income Limits using
Qualifying Income not Household Income
No Float Down opportunities on Access 2nd
DU can be used to underwrite both the 1 st and Access 2 nd
Manually underwritten loan requires a 660 score minimum
Interested party contribution limited to 3% per NHF Access 2 nd guidelines
Additional subordinate financing allowed in 3 rd position behind the Access 2 nd and must
50% of members personal contribution to their retirement account
Loan Term: Minimum term of 1 Yr
$1,000 - $1,499 3 Yrs
$1,500 - $2,999 4 Yrs
$3,000 - $4,999 5 Yrs
$5,000 - $9,999 10 Yrs
$10,000 - $18,421 15 Yrs
The following business provides members with discounted or low-cost options for additional products or services used in conjunction with the CalPERS Program.
Personalized Real Estate Assistance
MAX ADVANTAGE by REMAX
Personalized Real Estate Assistance
Communication Link with Loan Officers
Cash Rebate with close of CalPERS Mortgage Loan
Rebates up to 18% based on RE Commission of 3%. If commission is < 3%, then rebate will be prorated.
Eg., Sales Price of $100,000 = $540 Cash Rebate
Eg., Sales Price of $500,000 = $2,700 Cash Rebate
Eg., Sales Price of $1mil = $5,400 Cash Rebate
Rebate can be used towards Closing Costs or Cash in Hand
Reduced Escrow & Title Fees
Reduced Escrow & Title Fees when using:
Old Republic Title
Lower MI Premiums with a CalPERS loan – Check with your MI company
*Rebates available in states where allowed by law. Rebate is based upon a minimum real estate commission of 3% being paid to the selected SMARTMOVE broker on your side of the transaction. If less than 3%, your rebate will be pro-rated and will be less than amount shown above.
Decide whether to lock or float at what lock period
Need to complete and sign at time of application
Form must be in loan package at time of submission
Topic Description Lock Date 30 day Rate Lock = NO FLOAT DOWNS 60 & 90 day Rate Locks = Float-Down Opportunities as follows: Float Down Opportunities
Check for possible float down 2. Doc Draw Date Check for possible float down 3. Lock Expiration Loan must fund by this date
Topic Description Interest Rates
Available from your A/E
Up to 1.25% Origination Fee on 1 st
Up to 1.25% Origination Fee on 2 nd
Up to 1.00% Origination Fee on FHA
Retained by Broker
Discount Not allowed on Conventional FHA: .25% allowed on Refinances ONLY based on total loan amount including MIP Premium Pricing Allowed to pay for Closing Costs or MI Fees
Restricted Fees (Retained by ALG)
Total Fees may not exceed $350
Includes Processing/UW, Application, Admin, and Doc Prep fee.
May charge $250 for Redraw Fee if borrower or seller initiated the redraw
Valid Actual 3 rd Party Fees allowed
HOW TO GET STARTED
All Advertising must be approved prior to distribution
Use FMC prior approved marketing materials
All Broker advertising including websites must state “ Processed through a CalPERS approved Lender ”
All marketing must follow CalPERS marketing guidelines
CalPERS logo may not be used indiscriminately
Become the CalPERS expert in your office
Identify CalPERS members and offer the program
Make the CalPERS program an integral part of your marketing
Ask questions like:
Are you or your spouse members of a special group like CalPERS?
Create a relationship; build trust; reassure borrower
In order to participate in the CalPERS Program, you must be sponsored by a CalPERS Participating Wholesale Lender (First Mortgage Corporation).
If you are a mortgage broker, or employed by one, and wish to become involved in the Program, call your FMC Account Executive and tell them you wish to participate in the CalPERS Member Home Loan Program.
Mortgage brokers that offer the CalPERS Member Home Loan Program are required to enroll in a training seminar and to comply with all applicable provisions of the CalPERS Member Home Loan Program Participant Guide, including marketing guidelines.
See previous pages for links to the Guide.
Training is available on line through First Mortgage (check our Training Schedule for upcoming trainings) or live in different areas on an ongoing basis so check with your AE for availability.
To become a Certified CalPERS Originator, you will need to pass the Certification Test now available on their website:
Competitive interest rate – set daily
30, 60, 90-day rate locks and receive protection against market increases (60 and 90-day locks)
FREE Interest Rate Float Down opportunities (60 & 90 day rate locks only)
Controlled Closing Costs – affordable for borrower
100% Financing Options with Closing Cost Assistance with no out of pocket costs for the down payment (Subject to declining market reduction of 5% to LTV/CLTV)
Maximum 1.25% Origination Fee for both 1 st and 2 nd
Reduced MI Rates through MGIC, PMI, Radian, Triad, UGIC, Genworth
Reduced Escrow and Title Fees through Old Republic Title & Stewart Title
Premium Pricing – use for borrower’s benefit to pay for closing costs or mortgage insurance
Personalized Real Estate Assistance Programs
On behalf of Affinity Lending Group, we thank you for joining our training today and hope the information provided was informative and will help you…