Cal Sters Ppt

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  • Cal Sters Ppt

    1. 1. California State Teachers Retirement System CALSTRS Program Training Offered through Affinity Lending Group Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered trademark of Freddie Mac. This presentation is a summary and is not complete. Contact your ALG AE for complete program guidelines. This information is for mortgage professionals only and should not be distributed to or used by consumers or other third-parties. Information is accurate as of the date shown below and is subject to change without notice. 05 /8/2008
    2. 2. Agenda <ul><li>Introduction </li></ul><ul><li>Eligibility Guidelines </li></ul><ul><li>Program Guidelines </li></ul><ul><ul><li>Eligible 1 st Loan Program </li></ul></ul><ul><ul><li>Second Loan Products </li></ul></ul><ul><ul><ul><li>80/17 </li></ul></ul></ul><ul><ul><ul><li>95/5 </li></ul></ul></ul><ul><ul><li>Other special programs </li></ul></ul><ul><li>General Underwriting Guidelines </li></ul><ul><li>Rate Locks, Fees and Float Downs </li></ul><ul><li>CalSTRS Marketing Guidelines </li></ul>Affinity Lending Group
    3. 3. INTRODUCTION <ul><li>Introduction to Affinity Lending Group </li></ul><ul><li>Introduction to CalSTRS </li></ul><ul><li>Quick Facts </li></ul><ul><li>Advantages of the Program </li></ul>Affinity Lending Group
    4. 4. Introduction to ALG <ul><li>Affinity Lending Group is an independent residential Mortgage Banking firm. </li></ul><ul><li>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. </li></ul><ul><li>Having funded in excess of $1 billion in residential real estate loans, ALG has assisted more than two thousand families with their mortgage needs.  ALG enables families to enjoy the American Dream of Homeownership…“it’s the only thing we do.” </li></ul><ul><li>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 ”. </li></ul>Affinity Lending Group
    5. 5. Introduction to CalSTRS <ul><li>CalSTRS is the California State Teachers Retirement Program providing retirement related benefits to teachers in public schools and Community Colleges in the state of California. </li></ul><ul><ul><li>Largest U.S. Teachers Retirement Fund </li></ul></ul><ul><ul><li>2 nd Largest U.S. Public Pension Fund </li></ul></ul><ul><ul><li>CalSTRS assets stands at $164.0 billion as of March 31, 2008 </li></ul></ul><ul><ul><li>CalSTRS membership stands at 795,000 </li></ul></ul><ul><li>The CalSTRS Home Loan Program was established in 1984 as a result of legislation that provided CalSTRS with a mortgage-backed security investment opportunity, and restructured in July of 2004 . It was designed as additional source of home financing for its members and retirees giving them a great choice of mortgage loans with competitive rates . </li></ul><ul><ul><li>Money Works for Pension Fund </li></ul></ul><ul><ul><ul><li>Borrowers can obtain a great loan with a competitive rate—and their money works for them, since income derived from mortgage payments goes directly into the Teachers’ Retirement Fund. </li></ul></ul></ul><ul><li>CalSTRS has purchased over 32,673 loans at around $4 billion. </li></ul>Affinity Lending Group
    6. 6. Quick Facts Affinity Lending Group Topic 06/30/06 06/30/07 Active Members 453,365 455,693 Inactive Members 133,601 141,450 Total Members 586,966 597,143 Service Retirements Disabilities Survivor Benefits 207,846 215,641 Total Members including Benefit Recipients 794,812 812,784
    7. 7. Advantages of the CalSTRS Program Affinity Lending Group <ul><li>Low Cost loans with many options </li></ul><ul><ul><li>Buy a home </li></ul></ul><ul><ul><li>Lower your existing payments </li></ul></ul><ul><ul><li>Take cash out </li></ul></ul><ul><li>Conventional 15 & 30 year fixed loans up to $834,000 </li></ul><ul><li>Zero Down (95/5) program with combined loan amount up to $650k requiring NO money down from the borrower. </li></ul><ul><li>80/17 program requiring a 3% down payment from the borrower, and comes with a 17% 2 nd with deferred payments during the first 5 years. Combined loan amount up to $650k allowing the borrower to qualify for a larger home. </li></ul><ul><li>We’re on your side by offering the following: </li></ul><ul><ul><li>Competitive interest rates set daily </li></ul></ul><ul><ul><li>FREE 45-day interest rate lock upon submission to protect from rising rates </li></ul></ul><ul><ul><li>If rates drop after application, there is a ONE TIME interest rate reduction (float down option) </li></ul></ul><ul><li>Real Estate Assistance </li></ul><ul><ul><li>Receive cash rebates when SMARTMOVE is used to buy or sell a home </li></ul></ul><ul><li>Receive Discounts </li></ul><ul><ul><li>CalSTRS has negotiated discounts on escrow, title fees and mortgage insurance rates </li></ul></ul><ul><li>Additional Teacher Mortgage Programs </li></ul><ul><ul><li>Extra Credit Teachers Program through CalHFA or the Community Solutions program through My Community Mortgage </li></ul></ul>
    8. 8. ELIGIBILITY GUIDELINES <ul><li>Eligible Borrowers </li></ul><ul><li>Eligible Properties </li></ul>Affinity Lending Group
    9. 9. CalSTRS Eligibility Guidelines Affinity Lending Group Topic Description Eligible Borrowers <ul><ul><li>Employees of a California public school district or California Community College, and/or a member of the California State Teachers' Retirement System. </li></ul></ul><ul><ul><li>As proof of eligibility, a copy of a CalSTRS benefits statement, or a pay stub or VOE from a California public school district or Community College </li></ul></ul><ul><ul><li>Borrowers must have a valid social security number </li></ul></ul><ul><ul><li>Non-permanent resident aliens are eligible on the Standard Conventional Program ONLY (LTV is limited to 75%) </li></ul></ul>Geographic Restrictions <ul><ul><li>Properties within the State of California ONLY </li></ul></ul>Eligible Properties <ul><li>SFR Attached & Detached </li></ul><ul><li>PUDs Attached & Detached </li></ul><ul><li>Condos – must be Fannie Mae approved </li></ul><ul><li>2-4 Unit properties </li></ul>Occupancy Owner Occupied Primary Residences only FTHB No First-Time Home Buyer requirement Income Limits No Income Limits Sales Price Limits No Sales Price Limits
    10. 10. PROGRAM GUIDELINES <ul><li>Standard Conventional </li></ul><ul><ul><li>Conforming </li></ul></ul><ul><ul><li>Non Conforming </li></ul></ul><ul><li>2 nd Loan Products </li></ul><ul><ul><li>Zero Down (95/5) </li></ul></ul><ul><ul><li>3% Down (80/17) </li></ul></ul>Affinity Lending Group
    11. 11. IMPORTANT REMINDERS <ul><li>Factors that may reduce your LTV/CLTV on the CalSTRS programs: </li></ul><ul><ul><li>Properties in Declining Market Areas – Reduce LTV/CLTV by 5%. </li></ul></ul><ul><ul><ul><li>*Declining Market reduction affects CalSTRS Programs </li></ul></ul></ul><ul><ul><li>Insurability of Mortgages by MI Companies: </li></ul></ul><ul><ul><ul><ul><li>High LTV’s </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Lower credit scores </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Declining Market Areas </li></ul></ul></ul></ul><ul><ul><li>NEW : </li></ul></ul><ul><ul><li>80/17 & 95/5 programs NOT AFFECTED by declining Market Reduction </li></ul></ul>Affinity Lending Group
    12. 12. ELIGIBLE PROGRAMS <ul><li>1 st Mortgage Products – Standard Conventional </li></ul><ul><ul><ul><li>Conforming Program </li></ul></ul></ul><ul><ul><ul><li>Non Conforming Program </li></ul></ul></ul><ul><li>2 nd Mortgage Loan Products </li></ul><ul><ul><ul><li>3% Down Program (80/17) </li></ul></ul></ul><ul><ul><ul><li>Zero Down Program (95/5) </li></ul></ul></ul>Affinity Lending Group
    13. 13. Conforming Product Affinity Lending Group Topic Description Term 15 or 30 Year Fixed Loan Amount Up to $417,000 – Fannie Mae Loan Limit Max LTV – 1st 95% (90% in declining markets) Max LTV – 2 nd Standard Fannie Mae Guidelines Max CLTV 95% (90% in declining markets) Loan Purpose Purchases, R&T Refinance, Cash Out Refinance Eligible Properties Owner-occupied SFR ; 2- to 4-units ; Condos ; PUDs Minimum Down Payment 5% Sources of Closing Costs Follow Standard Fannie Mae Guidelines Own Other Properties Borrower can own other properties but with only 1 CalSTRS mortgage at a time
    14. 14. Conforming Matrix LTV Restriction: Max LTV allowed when there is secondary financing is 80% Affinity Lending Group Loan Type Units Max Min FICO Loan-Level Pricing Adjustment LTV/CLTV Conf Purch/Rate and Term Refi 1 95% 620 Refer to Fannie Mae guidelines. Conf Purchase/Rate and Term Refinance 2 95% 640 Conf Purchase/Rate and Term Refinance 3-4 80% 660 Conf Cash-Out Refinance 1-2 70% 620 Conf Cash-Out Refinance 1-2 70.01% - 80% 720 Conf Cash-Out Refinance 1-2 80.01% - 90% 720 Conf Cash-Out Refinance 3-4 70% 620 Conf Cash-Out Refinance 3-4 70.01% - 75% 720
    15. 15. Conforming Loan-Level Price Adjustments Loan Amount up to $417,000 <ul><li>Note: </li></ul><ul><ul><li>All add-ons must be disclosed as Loan-Level Price Adjustments on the GFE or HUD-1. Loan-level price adjustments must be disclosed on line 808, NOT on line 802. They may not be disclosed as discount points. </li></ul></ul>Affinity Lending Group
    16. 16. Non Conforming Product Affinity Lending Group Topic Description Term 15 or 30 Year Fixed Loan Amount $417,001 to $834,000 Max LTV – 1st 95% (90% in declining markets) Max LTV – 2 nd Standard Fannie Mae Guidelines Max CLTV 95% (90% in declining markets) Loan Purpose Purchases, R&T Refinance, Cash Out Refinance Eligible Properties Owner-occupied SFR ; 2- to 4-units ; Condos ; PUDs Down Payment Min. 5% Sources of Closing Costs Follow Standard Fannie Mae Guidelines Own Other Properties Borrower can own other properties but with only 1 CalSTRS mortgage at a time
    17. 17. Non-Conforming Matrix LTV Restriction: Max LTV allowed when there is secondary financing is 80% Affinity Lending Group Attached/Detached SFRs, Attached/Detached PUDs, Low-Rise Condos, 2 Units   Purchase and Rate and Term Cash Out Max Loan Amount Max LTV/CLTV Min Credit Score Max LTV/CLTV Min Credit Score Max Cash Out $650,000 95/95 620 75/75 620 $200,000 $834,000 90/90 660 75/75 620 $200,000 80/80 620 75/75 620 $200,000 High-Rise Condos and 3-4 Units   Purchase and Rate and Term Cash Out Max Loan Amount Max LTV/CLTV Min Credit Score Max LTV/CLTV Min Credit Score Max Cash Out $650,000 90/90 620 75/75 720 $100,000 70/70 620 $100,000 $834,000 80/90 660 75/75 720 $100,000 70/70 620 $100,000
    18. 18. Non-Conforming Loan-Level Price Adjustments Loan Amount $417,001 to $834,000 <ul><li>Note: </li></ul><ul><ul><li>All add-ons must be disclosed as Loan-Level Price Adjustments on the GFE or HUD-1. Loan-level price adjustments must be disclosed on line 808, NOT on line 802. They may not be disclosed as discount points. </li></ul></ul>Affinity Lending Group
    19. 19. Second Loan Products <ul><li>80/17 </li></ul><ul><ul><li>Purchase Only </li></ul></ul><ul><ul><li>30 Year Conforming </li></ul></ul><ul><ul><li>30 Year Non-Conforming </li></ul></ul><ul><li>Zero Down (95/5) </li></ul><ul><ul><li>Purchase Only </li></ul></ul><ul><ul><li>30 Year Conforming </li></ul></ul><ul><ul><li>30 Year Non-Conforming </li></ul></ul>Affinity Lending Group
    20. 20. 80/17 Program Summary Affinity Lending Group Topic Description Term 30 Years 1 st & 2 nd Conforming Loan Amount Up to $417,000 (Up to $505,612 - 1 st & 2 nd combined) Non Conforming 1 st Loan Amt Up to $536,082 (Up to $650,000 – 1 st & 2 nd combined) Max LTV – 1st 80% Max LTV – 2 nd 17% Max CLTV (Combined 1 st & 2 nd ) 97% Loan Purpose Purchase Only Eligible Properties Owner-occupied SFRs; Condos; PUDs Down Payment 3% (1% min from borrower’s own funds) Sources of Closing Costs Borrower ’ s own funds, seller contributions up to 3%, gift from relative, or unsecured grant from approved government agency 2 nd Mortgage Deferred payments on the 17% 2 nd mortgage for the first 5 years Own Other Properties Borrower cannot own any other properties and only 1 CalSTRS mortgage at a time
    21. 21. 80/17 Matrix *LTVs must be exactly 80% and 17% <ul><li>Minimum Fico Scores: </li></ul><ul><ul><li>620 for LA up to $400k </li></ul></ul><ul><ul><li>680 for LA between $401k and $650k (combined 1 st & 2 nd ) </li></ul></ul>Affinity Lending Group Loan Type *LTV: 1 st *LTV: 2 nd Max Loan Amt: 1 st Max Loan Amt: 2 nd Max Combined Loan Amt Max Purchase Price Conforming 80% 17% $417,000 $88,612 $505,612 $521,250 Non-Conforming 80% 17% $536,082 $113,918 $650,000 $670,103
    22. 22. Zero Down (95/5) Program Summary Affinity Lending Group Topic Description Term 30 Years 1 st & 2 nd Conforming Loan Amount Up to $417,000 (Up to $438, 947 – 1 st & 2 nd combined) Non Conforming 1 st Loan Amt Up to $617,500 (Up to $650,000 – 1 st & 2 nd combined) Max LTV – 1st 95% Max LTV – 2 nd 5% Max CLTV (Combined 1 st & 2 nd ) 100% Loan Purpose Purchase Only Eligible Properties Owner-occupied SFRs; Condos; PUDs Down Payment 0% Sources of Closing Costs Borrower ’ s own funds, seller contributions up to 3%, gift from relative, or unsecured grant from approved government agency 2 nd Mortgage Deferred payments on the 5% 2 nd mortgage for the first 5 years Own Other Properties Borrower cannot own any other properties and only 1 CalSTRS mortgage at a time
    23. 23. Zero Down (95/5) Matrix *LTVs must be exactly 95% and 5% <ul><li>Minimum Fico Scores: </li></ul><ul><ul><li>620 for LA up to $400k </li></ul></ul><ul><ul><li>680 for LA between $401k and $650k (combined 1 st & 2 nd ) </li></ul></ul>Affinity Lending Group Loan Type *LTV: 1st *LTV: 2nd Max Loan Amount: 1st Max Loan Amount: 2nd Max Combined Loan Amount Conforming 1st 95% 5% $417,000 $21,947 $438,947 Non-Conforming 1st 95% 5% $617,500 $32,500 $650,000
    24. 24. Second Mortgage Loans (17% & 5%) Affinity Lending Group 2 nd Mortgage Information Interest rates for the second mortgage loans are set by CalSTRS, and carries the same rate as the first mortgage 30-year term with a five-year deferred payment structure Simple interest calculation will be used for years 1 through 5, no principal or interest payments shall be due during the first 5 years / 60 months. Year 6 / Payment number 61: The accrued simple interest balance from the deferral period will be added to the original loan balance. The new loan amount will be amortized over the remaining 25 years / 300 months, and the borrower will then make monthly payments for the remaining life of the 2nd loan. **Down Payment Assistance Program (95/5 & 80/17) has 2 Notes & 2 Deeds of Trust***
    25. 25. Affinity Lending Group Real Estate Personal Assistance Programs – SMARTMOVE & CalSTRS Discounts The following businesses provides members with discounted or low-cost options for additional products or services used in conjunction with the CalSTRS Program. <ul><li>Personalized Real Estate Assistance </li></ul><ul><li>SMART MOVE </li></ul><ul><li>Personalized Real Estate Assistance </li></ul><ul><li>Cash Rebate with close of CalSTRS Mortgage Loan </li></ul><ul><ul><li>Rebates up to 18% based on RE Commission of 3%. If commission is < 3%, then rebate will be prorated. </li></ul></ul><ul><ul><li>Eg., Sales Price of $100,000 = $540 Cash Rebate </li></ul></ul><ul><ul><li>Eg., Sales Price of $500,000 = $2,700 Cash Rebate </li></ul></ul><ul><ul><li>Eg., Sales Price of $1mil = $5,400 Cash Rebate </li></ul></ul><ul><li>Rebate can be used towards Closing Costs or Cash in Hand </li></ul><ul><li>Reduced Escrow & Title Fees </li></ul><ul><li>Reduced Escrow & Title Fees when using: </li></ul><ul><li>Old Republic Title </li></ul><ul><li>Old Republic National Title </li></ul><ul><li>www.ortc.com </li></ul><ul><li>Reduced MI </li></ul><ul><li>Lower MI Premiums with a CalSTRS loan </li></ul><ul><li>PMI </li></ul>
    26. 26. SMARTMOVE Affinity Lending Group
    27. 27. <ul><li>*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. </li></ul>Affinity Lending Group Rebate Schedule (888) 778-2168
    28. 28. GENERAL GUIDELINES <ul><li>Underwriting Guidelines </li></ul><ul><li>Standard Program UW Guidelines </li></ul><ul><li>Specific 80/17 UW Guidelines </li></ul><ul><li>Specific 95/5 UW Guidelines </li></ul><ul><li>Mortgage Insurance </li></ul>Affinity Lending Group
    29. 29. Standard AUS Underwriting Affinity Lending Group
    30. 30. Standard Underwriting Guidelines Affinity Lending Group Topic Description Manual UW Manual UW allowed – Follow Fannie/Freddie guidelines. Non Conforming loans cannot exceed DTI stated in previous table Reserves: <ul><li>DU: Per DU or 2 months PITI </li></ul><ul><li>LP: Per LP or 2 months PITI </li></ul><ul><li>Manual: 2 Months PITI </li></ul><ul><li>Funds from 401k, 403b and IRA/Keogh may be used for reserves if accessible prior to retirement </li></ul><ul><li>CalSTRS retirement accounts may not be considered cash reserves. </li></ul>Homebuyer Education Not Required on Standard Conventional Program only Non Occupant Co-Borrowers / Co-Signers Allowed on Standard Conventional Program only Down Payment Minimum 5% from borrower’s own funds Closing Costs May be paid by 3 rd Party
    31. 31. 80/17 Underwriting Guidelines Affinity Lending Group Specific guidelines to the 80/17 program: <ul><li>Run through DU for approval; will indicate loan is a Flex 100 with subordinate financing; this is expected and not a cause for concern. </li></ul><ul><ul><li>Do not indicate 2 nd is a Community 2 nd </li></ul></ul><ul><li>Homebuyer Education is required for 1st Time Homebuyers. A copy of the Homebuyer Education Certificate is required in the loan file. </li></ul><ul><li>Non-occupant co-borrowers and co-signers are not permitted </li></ul><ul><li>3% down payment is required, a minimum of 1% must come from the borrower’s own funds. Remainder may come from: </li></ul><ul><ul><li>Gift from a relative if repayment is not required </li></ul></ul><ul><ul><li>Grant from a government agency or an employer-assisted housing program, which has been approved </li></ul></ul><ul><li>Closing costs and prepaid items can be paid from following sources: </li></ul><ul><ul><li>Borrower’s own funds </li></ul></ul><ul><ul><li>Seller contributions up to 3% </li></ul></ul><ul><ul><li>Gift from relative </li></ul></ul><ul><ul><li>Unsecured grant from a government agency or an employer–assisted housing program, needs approval by CalSTRS. </li></ul></ul><ul><ul><li>Or </li></ul></ul><ul><ul><li>A minimum $500 contribution from borrower’s own funds </li></ul></ul><ul><li>Ratios: 38% (may exceed w/ DU Approved/Eligible) </li></ul><ul><li>Reserves: 2 Months (may come from retirement funds, if funds are accessible) CalSTRS retirement accounts may not be considered cash reserves. </li></ul>
    32. 32. Zero Down (95/5) Underwriting Guidelines Affinity Lending Group Specific guidelines to the Zero Down (95/5) program: <ul><li>Run through DU for approval; will indicate loan is a Flex 100 with subordinate financing; this is expected and not a cause for concern. </li></ul><ul><ul><li>Do not indicate 2 nd is a Community 2 nd </li></ul></ul><ul><li>Homebuyer Education is required for 1st Time Homebuyers. A copy of the Homebuyer Education Certificate is required in the loan file. </li></ul><ul><li>Non-occupant co-borrowers and co-signers are not permitted </li></ul><ul><li>NO MINIMUM DOWN PAYMENT required from the Borrower </li></ul><ul><li>Closing costs and prepaid items can be paid from following sources: </li></ul><ul><ul><li>Borrower’s own funds </li></ul></ul><ul><ul><li>Seller contributions up to 3% </li></ul></ul><ul><ul><li>Gift from relative </li></ul></ul><ul><ul><li>Unsecured grant from a government agency or an employer–assisted housing program, needs approval by CalSTRS </li></ul></ul><ul><ul><li>Or </li></ul></ul><ul><ul><li>A minimum $500 contribution from borrower’s own funds </li></ul></ul><ul><li>Ratios: 41% (may exceed w/ DU Approved/Eligible) </li></ul><ul><li>Reserves: 2 Months (may come from retirement funds, if funds are accessible). CalSTRS retirement accounts may not be considered cash reserves. </li></ul>
    33. 33. General Program Guidelines Affinity Lending Group Topic Description Buydowns Temporary and Permanent buydowns not permitted Seller Contributions Conforming: 3% for LTV >90%; 6% for LTV 75-90%; 9% for LTV <75% Non Conf: 3% for LTV >90%; 6% for LTV <90% 80/17 & 95/5: 3% Max Assumable Loans are not assumable Prepayment Penalties Allowed but not required or recommended Title Policies <ul><li>Title Policies required. </li></ul><ul><ul><li>Title Policy for 80/17 & 95/5 must cover 1 st & 2 nd loan amounts including recording information on 2nd </li></ul></ul>Hazard Insurance Must equal 100% of value or unpaid balance of the mortgage with replacement cost Alt Docs Permitted according to Fannie Mae & Freddie Mac guidelines. Appraisal or property inspection required according to AUS Cert unless waived by AUS cert (fee assessed) Homebuyer Education Not required on Standard Conventional Program
    34. 34. Mortgage Insurance <ul><li>Required on all loans exceeding 80% LTV </li></ul><ul><li>If DU allows reduced coverage, it must be given to the borrower. Lower Cost MI is an option </li></ul><ul><li>Acceptable MI Companies include MGIC , PMI, Radian , RMIC, Triad, UGI and Genworth. </li></ul><ul><li>95/5 Zero Down program must have standard MI of 30% </li></ul><ul><li>80/17 program does not require MI . </li></ul>Affinity Lending Group LTV Standard MI% Reduced MI% No Cost 80.01% to 85% 12% N/A 85.01% to 90% 25% 17% 90.01% to 95% 30% 25%
    35. 35. PRICING & COSTS <ul><li>Interest Rate Lock, Float Down & Commitments </li></ul><ul><li>CalSTRS Program Fees </li></ul><ul><li>Current CalSTRS Program Rates </li></ul>Affinity Lending Group
    36. 36. CalSTRS Interest Rate Lock, Float Down & Commitments Affinity Lending Group Topic Description Interest Rates <ul><li>Available from your Account Executive </li></ul>Lock Periods <ul><li>FREE 45 day rate lock </li></ul><ul><li>A one time FREE 15 day extension is available </li></ul>Float Down Opportunity <ul><li>One-time FREE float down </li></ul><ul><li>The float down may occur at any time during the 45-day lock period </li></ul><ul><li>The Float Down is NOT available after the 15-day extension period is exercised, regardless of when the extension is take </li></ul>Worse Case Extension <ul><li>Loans that have not closed after all other extensions have been </li></ul><ul><li>exhausted: </li></ul><ul><ul><li>Rate will be the higher of original lock or current market rate with a . 125% fee </li></ul></ul><ul><li>Locks for 80/17 and Zero Down(95/5)1st and 2nd mortgages must be made concurrently </li></ul><ul><li>Property changes require new lock </li></ul><ul><li>No fee for cancellations, all loans that will not be delivered must be cancelled </li></ul>
    37. 37. CalSTRS Program Fees Affinity Lending Group Topic Description Max Origination Fees Standard Conventional : Up to 1% 80/17 & 95/5 : Up to 1.25% (1 st Loan Only) Discount Points NOT ALLOWED Rebate/Premium Pricing: None available Other Closing Costs Normal and customary fees including an appraisal fee, credit report fee, survey fee, title insurance premium, and other closing costs as permitted by the respective agency. Must be fully disclosed on the HUD-1.
    38. 38. CalSTRS Current Interest Rates *Rates are for ALG Training purposes only and are current as of 05/08/08 only. Affinity Lending Group Conventional Loan Program (Up to 1% Origination Fee) Conforming Loans to $417,000 Non Conforming Loans from $417,001 to $834,000 Rates Price Rates Price 30 Yr: 5.875% 100.00 30 Yr: 6.625% 100.00 15 Yr: 5.375% 100.00 15 Yr: 6.250% 100.00 Zero Down 95/5 Program (Up to 1.25% Origination Fee) Conforming Loans to $417,000 Non Conforming Loans from $417,001 to $650,000 Rates Price Rates Price 30 Yr: 6.000% 100.00 30 Yr: 6.750% 100.00 80/17 Program (Up to 1.25% Origination Fee) Conforming Loans to $417,000 Non Conforming Loans from $417,001 to $650,000 Rates Price Rates Price 30 Yr: 6.125% 100.00 30 Yr: 6.875% 100.00
    39. 39. ALG - FAQS <ul><li>On the 80/17 where there’s a 3% minimum down payment (1% from borrower’s own funds), can the CHDAP program be used for the remaining 2%? </li></ul><ul><ul><li>CHDAP can only be used behind the CalSTRS Standard Conventional program and must meet all CHDAP requirements. It cannot be used on the 80/17 & 95/5 program. You can only use gift funds or a grant for the remaining 2% required for the borrower’s down payment. </li></ul></ul><ul><li>Regarding Homebuyer Education which is required for FTHB on the 80/17 & 95/5 programs, if it’s a husband and wife, do both have to attend or can one spouse represent both borrowers? </li></ul><ul><ul><li>If both husband and wife are on the loan, both must attend a homebuyer education class. </li></ul></ul><ul><li>How do we sign up borrowers for the Homebuyer Education? </li></ul><ul><ul><li>The easiest way is to go onto www.mgic.com under the homebuyer education.  The entire process is now done online; no longer by mail.  You as the originator sign up and provide your PIN (e-mail address) to the borrower.  Direct them to the site and they complete the course and you get e-mailed when it is completed.  As long as they use your PIN. </li></ul></ul>Affinity Lending Group
    40. 40. <ul><li>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… </li></ul><ul><li>Building This Together ! </li></ul>Affinity Lending Group Thank You

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