Florida Housing Finance Corporation (FHFC) 2014

!THE FL HFA PREFERRED

CONVENTIONAL LOAN PROGRAM

! !

Lender Guide Published 1-31-14

Program Updates on Page 3 See Page 3 for list of changes per Fl Housing comments !

! !

!

! Page � 2

!TABLE OF CONTENTS !

PROGRAM UPDATES 4

THE FLORIDA HOUSING PARTNERSHIP TEAM 5

TERMS and REQUIREMENTS 8

LOAN DELIVERY PURCHASE TIMELINE 8

PRICING AND RATE 8 LLPA and ADVERSE MARKET DELIVERY FEE 9 THE FIRST TIME HOMEBUYER REQUIREMENT 9 EXEMPTION TO THE FIRST TIME HOMEBUYER REQUIREMENT 9 MINIMUM BORROWER CONTRIBUTION 9 CASH BACK TO BORROWER 9 FICO SCORE REQUIREMENT 9 CO-SIGNERS 9 NON-CITIZENS 10 MORTGAGE INSURANCE 10 HOMEOWNER’S INSURANCE DEDUCTIBLE 10 RATIOS 10 HOMEBUYER EDUCATION REQUIREMENT 10 LOAN TYPE 10 LOAN PURPOSE 10 LOAN TERM 10 LTV/CLTV 11 ORIGINATION / DISCOUNT POINTS 11 OCCUPANCY 11 PROPERTY TYPE 11 INCOME LIMITS 11 PURCHASE PRICE LIMITS 11 DOC STAMP AND INTANGIBLE TAX 12 FEDERAL DISCLOSURE REQUIREMENTS 12 PREPAYMENTS 12 FL HFA PREFERRED PROGRAM FEES 12 LENDER FEES 12 LENDER COMPENSATION 12

COMPLIANCE DOCUMENTATION REQUIREMENTS 13

HOUSEHOLD INCOME LIMITS FOR THE FL HFA PREFERRED AND 14

THE FL ASSIST SECOND MORTGAGE PROGRAM 14

ACQUISITION (PURCHASE PRICE) LIMITS FOR THE FL HFA PREFERRED 16

AND THE FL ASSIST SECOND MORTGAGE PROGRAM 16

! Page � 3

FLORIDA ASSIST SECOND MORTGAGE 17

FLORIDA ASSIST (FL ASSIST) SECOND MORTGAGE 18

TERMS and REQUIREMENTS 18 THE FIRST TIME HOMEBUYER REQUIREMENT 18 TERM 18 RATE 18 ORIGINATION / DISCOUNT POINTS 18 FEDERAL DISCLOSURE REQUIREMENTS 18 INCOME LIMITS 18 PURCHASE PRICE LIMITS 19 PREPAYMENTS 19 SECOND MORTGAGE PROGRAM FEES 19 SECOND MORTGAGE PROGRAM DOCUMENTS 19 RECORDATION REQUIREMENTS 19

HOW TO ORIGINATE THE FL HFA PREFERRED 20 ATTEND TRAINING! 20 GET ACCESS TO THE RESERVATION SYSTEM 20 QUALIFY YOUR BORROWERS 20 RESERVE YOUR LOAN 20 DISCLOSE 20 UNDERWRITE AND CERTIFY 20 CLOSE AND FUND THE FIRST AND SECOND MORTGAGE LOANS 20 SHIP CLOSED LOAN FILE FOR PURCHASE 21

! Page � 4

PROGRAM UPDATES

!!

Effective Date

Program Update Page!#

2-21-14 Added information regarding Household Size Affidavit! 13

! Page � 5

THE FLORIDA HOUSING PARTNERSHIP TEAM Puts All The Pieces Together

To Create Affordable Home Ownership for Floridians!

! Florida Housing Finance Corporation (Florida Housing): Provides a first and second mortgage program. If a borrower qualifies for a Florida Housing first mortgage, they will also qualify for down payment and closing cost assistance that’s available as a second mortgage. The Program does NOT provide stand alone down payment and closing cost assistance. All down payment assistance must be provided as a second mortgage in conjunction with a FL Housing first mortgage. !Florida Housing may offer one or more first mortgage options. The Program is available throughout all counties in Florida. Florida Housing also sets the rate, term and points of its mortgages. Florida Housing trains real estate professionals and participating lenders, provides an informational website for the public and markets their program. ! !Participating Lenders: Provide usernames/passwords to their trained personnel. Participating Lenders work directly with first time homebuyers, take first and second loan applications, reserve the FL Housing first and second mortgages in their internal origination system. Participating Lenders originate, process, underwrite, close and fund the first and second mortgages at closing. Participating Lenders also deliver eligible loans to Master Servicer, US Bank Home Mortgage upon loan closing. Participating Lenders must review program documents, originate and close loans that meet the requirements of the Program. Participating Lenders are also responsible for servicing all Program loans in accordance with Fannie Mae, Freddie Mac and Ginnie Mae requirements until purchased by the Master Servicer. ! !U.S. BANK, Master Servicer: Provides training on acceptable loan products and the delivery and funding of Program loans. U.S. Bank receives all closed mortgage loan files, reviews for compliance with Agency requirements and any applicable investor (U.S. Bank) requirements, notifies lenders of mortgage file exceptions, purchases first and second mortgage loans and wires funds to lenders, and services all Program loans. U.S. Bank is not obligated to purchase loans that don’t satisfy Program or Agency requirements. !!

eHousingPlus, Program Administration/Compliance: Serves as Program Administrator and maintains the Program reservation system and website, posts Lender Guides, Program forms and

training materials, provides training on compliance issues and the reservation system, assists lenders with compliance questions, reviews program compliance file, notifies lenders of program compliance

exceptions, and provides compliance approval. !

! Page � 6

FL HFA PREFERRED LOAN PROGRAM FL HOUSING FINANCE CORPORATION

(February 3, 2014)Features Borrowers eligible for this first mortgage product are eligible to receive down payment through

Florida Housing’s second mortgage program. Current second mortgage program offers $10,000 in down payment and closing cost assistance in the form of a 30 year, 0% non-amortizing loan.

Loan Delivery Purchase Timeline

60 Day Timeline ● 20 days from rate lock (reservation) to underwriter certification. ● 40 days reservation to closed, and delivered, loan. ● 60 days reservation to exceptions cleared and loan purchase. Extension fee of .375 will be assessed for any loan not eligible for purchase within 60 days. An extension of up to 30 days may be granted by FL Housing if request is submitted, in writing, to the Program Administrator prior to expiration date.

Pricing and Rate Daily pricing program. Rates will be posted by 10 AM in eHousing reservation system. System will be locked at 8 PM nightly.

LLPA & Adverse Market Delivery Fee

● No LLPA. ● .25 bps Adverse Market Fee paid by borrower or seller.

First Time Homebuyer (FTHB) Requirement

Borrower(s) who will appear on the Universal Residential Loan Application (URLA) or “1003” cannot have had an ownership interest in a residential property within the last 3 years. !!

Ownership Interest

For HFA Preferred Loans, an ownership interest is defined as a borrower whose name appears on the deed to any residential property. Residential properties includes manufactured homes, investment properties and vacation homes.

Exemption to FTHB Requirement

Veterans do not have to be first time homebuyers. Veterans are defined as “persons who served in the active military, naval, or air service, and who were discharged or released therefrom under conditions other than dishonorable.” DD 214 must be provided to verify eligibility. However, veterans must adhere to Fannie Mae’s ownership interest requirements.

Documentation Required to Verify FTHB Eligibility

Borrower(s) final Universal Residential Loan Application (URLA) or the “1003”.

Minimum Borrower Contribution

Required per Agency (Fannie Mae) or mortgage insurance provider guidelines.

Cash Back to Borrower

Not permitted.

FICO Score Requirements

Minimum 640 for LTV’s 95% or lower; !Minimum 680 for LTV’s 95.01-97%. !Minimum FICO requirement may apply per mortgage insurance provider.

Co-signers Not permitted.

Non-Citizen Applicants

All loans must adhere to Agency (Fannie Mae) and mortgage insurance provider guidelines.

Mortgage Insurance

Charter level MI coverage – 18% vs. 35% * Lower rates for borrower! *Much lower monthly and/or upfront MI factors *Contact your preferred MI company account representative for more details on HFA Preferred and MI overlays

! Page � 7

**  Those  lenders  not  allowed  delegated  underwri2ng  for  HFA  Preferred  loans  exceeding  95%  LTV,  must  adhere  to  US  Bank’s  Underwri2ng  File  Submission  Process.  

!!

Homeowner’s Insurance Deductible

As required by Agency (Fannie Mae).

Ratios Maximum debt-to-income ratio of 45%. More restrictive DTI requirements may apply per mortgage insurance providers.

Homebuyer Education

Borrowers may elect to attend face to face OR online homebuyer education course through a HUD approved agency or mortgage insurance provider.

Loan Type CONV, Fannie Mae HFA Preferred only.

Loan Purpose Purchase only. Construction to permanent loans are not permitted.

Term 30 year fixed rate only.

LTV/CLTV Maximum 97% / 105%**

Origination / Discount Points

1% Origination permitted and payable to Participating Lender.

Occupancy Owner occupied only with borrower’s intent to occupy property as their primary residence within 60 days of closing.

Property Type 1 unit detached and townhomes ONLY.

Income Limits Limits determined by county and household size. Income limits apply to both first and second mortgage programs. Currently, borrowers qualifying for participation in the first mortgage program will automatically qualify to participate in the FL Assist second mortgage program.

Documentation Required to Verify Income Eligibility

Borrower(s) final URLA/1003 will serve as confirmation of borrower(s) income. Only income considered in credit qualifying will serve as program income.

Purchase Price Limits

Limits determined by county.

Documentation Required to Verify Purchase Price Limits

Final Settlement Statement (HUD-1) AND Final URLA/1003.

Doc Stamp & Intangible Tax

First AND FHFC second notes and mortgages are exempt.

Federal Disclosure Requirements

Lenders are required to adhere to all federal disclosure requirements for first AND second mortgages. Failure to comply will deem loan ineligible for purchase by US Bank

Prepayments Permitted at any time without penalty.

Tax Service Fee ● $85 deducted from wire by U.S. Bank at time of loan purchase.

Compliance Fee ● $225 Compliance Fee payable to eHousing.

Funding Fee ● $200 deducted from wire by U.S. Bank at time of loan purchase.

Lender Fees ● Normal and customary fees are allowable.

Lender Compensation

● 1% Origination Charge. ● 1% SRP paid by FHFC to lender upon purchase.

! Page � 8

FL HFA PREFERRED CONVENTIONAL LOAN PROGRAM TERMS and REQUIREMENTS !The FL HFA Preferred is a conventional only loan program and all loans must adhere to Fannie Mae’s HFA Preferred requirements. This Program also requires a shorter loan delivery period. Loans must be PURCHASED 60 days from reservation. !This Program offers daily pricing. Daily rates are posted by 10:00 am Eastern Time, Monday – Friday excluding holidays, in the eHousing Plus online reservation system. Reservations in this program are only available Monday – Friday 10:00 a.m. - 8:00 p.m. Eastern Time, excluding holidays. !The FL HFA Preferred first mortgage loan may be used in conjunction with FL Housing’s second mortgage program, the FL Assist. The FL Assist offers down payment and closing cost assistance in the form of a second mortgage. The FL Assist offers up to $10,000 and is a 30 year, deferred, 0.00% second mortgage loan. The FL Assist is a repayable loan and is NOT forgiven. (See term sheet for the FL Assist for more information.) !!LOAN DELIVERY PURCHASE TIMELINE !Loans must be purchased within 60 days of Reservation or “lock”. ! 20 days from rate lock (Reservation) to Underwriter Certification. 40 days from Reservation to closed, and delivered to US Bank and eHousingPlus. 60 days from Reservation to exceptions cleared and loan PURCHASED by US Bank. !Extension fee of .375% will be assessed for any loan not eligible for purchase within 60 days of Reservation. An extension of up to 30 days may be granted by Florida Housing, upon request through the eHousingPlus reservation system, prior to the loan expiration date. !Attention Lenders: Please read below The cost of the extension is 0.375% of the first mortgage loan amount and payable to Raymond James and the extension fee is due whether or not a mortgage loan is ultimately delivered or purchased. The 0.375% extension fee will be netted from the loan purchase price by the Servicer when the mortgage loan is purchased from the Lender. If an extension is elected, but the related mortgage loan is not purchased by the required purchase date, Florida Housing agrees, on behalf of the Purchaser, to bill the Lender for the 0.375% extension fee. Excessive unpaid extension fees will cause suspension or termination from the program. !!PRICING AND RATE !Rates are posted daily to the eHousingPlus reservation system by 10 a.m. Eastern Time. The reservation system will be locked nightly by 8:00 p.m. !!!

! Page � 9

!LLPA and ADVERSE MARKET DELIVERY FEE !No LLPA applies to the FL HFA Preferred. .25 bps Adverse Market Fee may be paid by the borrower or seller. !!THE FIRST TIME HOMEBUYER REQUIREMENT !Borrowers and any party who will appear on the loan cannot have had an ownership interest in their primary residence within the last 3 years. Eligibility is determined by the parties reflected on the loan application ONLY. !EXEMPTION TO THE FIRST TIME HOMEBUYER REQUIREMENT !Veterans do not have to be first time homebuyers to participate. Veterans are defined as “persons who served in the active military, naval, or air service, and who were discharged or released therefrom conditions other than dishonorable.” !The DD214 must be obtained from the borrower to satisfy the exemption and must be submitted in the closed loan file submitted to eHousingPlus. !!MINIMUM BORROWER CONTRIBUTION !Follow Agency (Fannie Mae) guideline or mortgage insurance provider’s guideline. FL Housing does not require a minimum contribution for the FL HFA Preferred. !!CASH BACK TO BORROWER !Cash back is NOT permitted in the FL HFA Preferred Program. !!FICO SCORE REQUIREMENT Minimum 640 for LTVs 95% or lower. Minimum 680 for LTVs 95.01 – 97%. !Mortgage insurance provider may also impose a FICO requirement. Refer to mortgage insurance provider guideline. !!CO-SIGNERS !Co-signers are NOT permitted in the FL HFA Preferred Program. !

! Page � 10

NON-CITIZENS !All loans must adhere to Agency (Fannie Mae) and mortgage insurance provider guidelines. !!MORTGAGE INSURANCE !Charter level mortgage insurance available (18% vs. 35%). Mortgage insurance required on all loans exceeding 80% LTV. Contact your mortgage insurance provider for rates and additional information regarding their rates and the HFA Preferred. !!HOMEOWNER’S INSURANCE DEDUCTIBLE !Follow Agency (Fannie Mae) guideline and investor (US Bank) guideline. !!RATIOS !Maximum debt-to-income ratio of 45%. More restrictive DTI requirements may apply per mortgage insurance provider. Refer to mortgage insurance provider guideline. !!HOMEBUYER EDUCATION REQUIREMENT !Borrowers may elect to attend face-to-face homebuyer education through an approved HUD counseling agency or attend an online course offered by an approved HUD counseling agency or a mortgage insurance provider. eHome America’s online course is also acceptable. !! LOAN TYPE !Conventional Fannie Mae HFA Preferred Only. !!LOAN PURPOSE !Purchase only. Construction to permanent loans not permitted. Turnkey construction permitted. !!LOAN TERM !30 year fixed only. !!!!!

! Page � 11

LTV/CLTV !Maximum 97% LTV / 105% CLTV !Please note that only exempt lenders are permitted to underwrite loans with 95.01% - 97% LTV. Exempt lenders have received delegated authority from Master Servicer, US Bank, to underwrite above 95% LTV. !Lenders that do not have delegated authority from US Bank must adhere to US Bank’s Underwriting File Submission Process if originating loans that exceed 95% LTV. Please refer to US Bank’s bulletin regarding file submission for these loans on their website at www.mrbp.usbank.com. !!ORIGINATION / DISCOUNT POINTS !1% Origination permitted and payable to Participating Lender. !Per Fannie Mae guidelines, points and fees cannot exceed 5% of the loan amount. !!OCCUPANCY Owner occupied only. Borrowers must intend to occupy within 60 days of closing. !!PROPERTY TYPE !1 unit detached and townhomes ONLY. !!INCOME LIMITS !Income limits determined by county and household size. Income limits apply to first and second mortgage and income limits are the same for both. If borrower(s) qualify for the first mortgage, they will also be eligible to participate in the second mortgage program. (See income limits by county, pages 13 and 14). !!PURCHASE PRICE LIMITS !Purchase limits determined by county and household size. (See purchase price limits by county, page 15). !!!!!!

! Page � 12

DOC STAMP AND INTANGIBLE TAX !The FL HFA Preferred and the FL Assist notes and mortgages are exempt. !!FEDERAL DISCLOSURE REQUIREMENTS !Lenders are required to disclose in accordance to federal disclosure requirements and comply with RESPA, MDIA and TILA and all other federal disclosure requirements. Lenders must disclose the GFE for the FL Assist second mortgage. Florida Housing does not disclose for the FL Assist second mortgage as the originating lender must disclose the second mortgage in conjunction with the first mortgage disclosures. !!PREPAYMENTS !Prepayment of the first and/or second mortgage is permitted without penalty. !!FL HFA PREFERRED PROGRAM FEES ! ● $85 Tax Service Fee (deducted by US Bank at time of loan purchase) ● $225 Compliance Fee (payable to eHousing) ● $200 Funding Fee (deducted by US Bank at time of loan purchase) !!LENDER FEES !Normal and customary lender fees/origination charges are allowable. !!LENDER COMPENSATION ! ● 1% Origination should be charged on the first mortgage and retained by lender. ● 1% SRP paid by FL Housing upon loan purchase. !!Please note that the tax exempt rider is NOT required for the FL HFA Preferred. !

! Page � 13

!FL HFA PREFERRED CONVENTIONAL LOAN PROGRAM

COMPLIANCE DOCUMENTATION REQUIREMENTS !!FOR VERIFYING FIRST TIME HOMEBUYER ELIGIBILITY, PLEASE PROVIDE: !

● Borrower(s) final Universal Residential Loan Application (URLA) or the “1003”.

Page 3, Section VIII, “Declarations” must not reflect borrower(s)’ interest in a primary residence within the last 3 years. If borrower is exempted from this requirement because borrower is a veteran, please be sure to provide a copy of the DD214. !!

FOR VERIFYING INCOME ELIGIBILITY, PLEASE PROVIDE:!!● Borrower(s) final Universal Residential Loan Application (URLA) or the “1003”.

Page 2, Section V, “Monthly Income and Combined Housing Expense Information”, must reflect total gross income for borrower and co-borrower that does not exceed income limits. !

* Household Size Affidavit. Lenders must have the borrower sign the Household Size Affidavit at closing ONLY if a permanent household member is not reflected on the 1003 AND it would change HH size from 1-2 people to 3 (or more) qualifying the borrower(s) for higher Program income and purchase price limits. (Rev. 2-21-14) !!

FOR VERIFYING PURCHASE PRICE ELIGIBILITY, PLEASE PROVIDE:!!! ● The final HUD-1 Settlement Statement. !

Page 1, Section J, “Summary of Borrowers transaction”, Line 101, “Contract Sales Price”, must not exceed purchase price limits. !!

FOR VERIFYiNG HOMEBUYER EDUCATION REQUIREMENT, PLEASE PROVIDE:!! ● The certificate of course completion provided by a HUD approved counseling agency, a mortgage

insurance provider or other approved education provider. ! !!!!!!!!

! Page � 14

!!!! !!HOUSEHOLD INCOME LIMITS FOR THE FL HFA PREFERRED AND THE FL ASSIST SECOND MORTGAGE PROGRAM

Effective January 10, 2014 COUNTIES 1-2 person HH 3+ person HHAlachua, Gilchrist 67,769 77,934Baker 70,920 82,740Bay 69,360 80,920Bradford 60,720 70,840Brevard 73,048 84,005Broward 81,720 95,340Clay, Duval, Nassau, St. Johns 76,800 89,600Charlotte 63,720 74,340Collier 83,040 96,880Escambia, Santa Rosa 67,889 78,072Flagler 72,189 83,018Franklin 58,800 68,600Gadsden, Jefferson, Leon 67,209 77,290Gulf 59,880 69,860Hamilton 57,720 67,340Hernando, Hillsborough, Pasco, Pinellas 68,160 79,520Indian River 67,800 79,100Jackson 61,800 72,100Lafayette 65,280 76,160Lake, Orange, Osceola ,Seminole 70,200 81,900Lee 67,560 78,820Liberty 62,160 72,520Madison 57,720 67,340Martin, St. Lucie 65,760 76,720Manatee, Sarasota 71,880 83,860Miami-Dade 78,480 91,560Monroe 104,040 121,380Okaloosa 78,000 90,361Okeechobee 59,760 69,720Palm Beach 82,440 96,180Polk 62,160 72,520Sumter 63,600 74,200Taylor 58,680 68,460

! Page � 15

!! !! !!!

Union 67,680 78,371Volusia 67,800 79,100Wakulla 66,269 76,209Walton 70,680 82,460Washington 59,640 69,580All Other Counties : Calhoun, Citrus, Columbia, DeSoto, Dixie, Glades, Hardee, Hendry, Highlands, Holmes, Levy, Marion, Putnam, Suwannee

57,600 67,200

! Page � 16

!!ACQUISITION (PURCHASE PRICE) LIMITS FOR THE FL HFA PREFERRED AND THE FL ASSIST SECOND MORTGAGE PROGRAM

Effective January 10, 2014 ! !

!!!!

COUNTIES LIMITBaker, Clay, Duval, Nassau, St. Johns 357,692Bay 365,769Brevard 268,846Broward, Miami-Dade, Palm Beach 391,153Charlotte 273,461Collier 490,384Flagler 265,384Franklin 281,538Hernando, Hillsborough, Pasco, Pinellas 270,000Indian River 261,923Lake, Orange, Osceola, Seminole 326,538Lee 328,846Manatee, Sarasota 408,461Martin, St. Lucie 346,153Monroe 673,615Okaloosa 288,461Sumter 257,307Volusia 280,384Walton 334,882All Other Counties: Alachua, Bradford, Calhoun, Citrus, Columbia, DeSoto, Dixie, Escambia, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Highlands, Holmes, Jackson, Jefferson, Lafayette, Leon, Levy, Liberty, Madison, Marion, Okeechobee, Polk, Putnam, Santa Rosa, Suwannee, Taylor, Union, Wakulla, Washington

250,200

! Page � 17

FLORIDA ASSIST SECOND MORTGAGE !

!!

Features ● This second mortgage option is available to borrowers at 120% of AMI or below (adjusted for household size). ● Offers up to $10,000. ● Repayment is deferred, except in the event of the sale, transfer, satisfaction of the first mortgage, refinancing of the property or until such a time the mortgagor ceases to occupy the property at which time, the Florida Assist will become payable in full.

First Time Homebuyer Requirement

● Borrower(s) must not have had an ownership interest in their primary residence for the past 3 years unless purchasing in a targeted area or they qualify under the Veteran’s Exception.

Term ● 30 year, deferred second mortgage. NOT FORGIVABLE.Rate ● 0%.Origination / Discount Points

● Not permitted on the second mortgage. Lenders may charge 1% Origination on the FL HFA Preferred first mortgage only.

Federal Disclosure Requirements

● Lenders are required to adhere to all federal disclosure requirements specific to subordinate liens. Failure to comply will deem loan ineligible for purchase.

Income Limits ● Limits determined by county. Please refer to the FL HFA Preferred and FL Assist Income limits.

Purchase Price Limits ● Limits determined by county. Please refer to the FL HFA Preferred and FL Assist Purchase Price Limits.

Prepayments ● Permitted at any time without penalty.Second Mortgage Application Fee

● $75 payable to lender.

Second Mortgage Funding Fee

● $250 funding fee may be charged and retained by lender for funding the second mortgage funds. This applies to the FL Assist ONLY.

Second Mortgage Required Documents (available through online reservation system)

● Florida Assist Second Note ● Florida Assist Second Mortgage

! Page � 18

FLORIDA ASSIST (FL ASSIST) SECOND MORTGAGE TERMS and REQUIREMENTS !!The Florida Assist (FL Assist) offers up to $10,000 in down payment and closing cost assistance. The The FL Assist income and purchase limits are consistent with the FL HFA Preferred income and purchase limits. Second mortgage funds are funded by the lender at closing. !!THE FIRST TIME HOMEBUYER REQUIREMENT !Borrowers and any party who will appear on the loan cannot have had an ownership interest in their primary residence within the last 3 years. Eligibility is determined by the parties reflected on the loan application ONLY. !!TERM !The FL Assist offers a 30 year, fixed, deferred but accelerated upon any of the following – the sale, transfer or other disposition of the property (including involuntary transfer by or as a result of foreclosure or judicial sale or operation of law), refinance or satisfaction of the FL HFA Preferred first mortgage loan. The FL Assist is repayable and is NOT forgiven. !RATE !0%, non-amortizing. !!ORIGINATION / DISCOUNT POINTS !Not permitted on the FL Assist second mortgage. Lenders may charge 1% Origination on the FL HFA Preferred first mortgage only. !!FEDERAL DISCLOSURE REQUIREMENTS !Lenders are required to adhere to all federal disclosure requirements specific to subordinate liens. Failure to comply will deem the FL HFA Preferred AND the FL Assist ineligible for purchase by US Bank. !!INCOME LIMITS !Income limits are determined by county. Income limits for the FL Assist are the same limits that apply to the FL HFA Preferred. If borrowers qualify for the FL HFA Preferred, they qualify for the FL Assist second mortgage. Income limits are NOT determined by household size. Income limits are determined by borrower(s) income as reflected on the residential loan application “1003”. See Page 13. ! !

! Page � 19

PURCHASE PRICE LIMITS !Purchase price limits are determined by county. Purchase price limits for the FL Assist are the same limits that apply to the FL HFA Preferred. Purchase price limits are determined by household size. See Page 15. !!PREPAYMENTS !Permitted at any time without penalty. !!SECOND MORTGAGE PROGRAM FEES !! ●! $75 Application Fee (retained by lender)!! ! $250 Funding Fee (retained by lender)!! !!SECOND MORTGAGE PROGRAM DOCUMENTS ! ●! FL Assist Second Mortgage Note (available through reservation system)!! ! ●! FL Assist Second Mortgage (available through reservation system) ! !RECORDATION REQUIREMENTS !The first and second mortgages must be recorded in the following order: !

1.First Mortgage 2. Assignment of First Mortgage 3.Second Mortgage !

Please note that the mortgagee reflected on the FL Assist second mortgage note is Florida Housing Finance Corporation (pre-printed on the note available through the online reservation system). Therefore, an assignment for the second mortgage is not necessary. !!

! Page � 20

!HOW TO ORIGINATE THE FL HFA PREFERRED

FIRST MORTGAGE AND THE FL ASSIST SECOND MORTGAGE PROGRAMS !ATTEND TRAINING!

Lender training provided by the Program Administrator (eHousing) and Master Servicer (US Bank) 24/7 via online training. Click on this link, then click on the TRAINING tab to attend. !

GET ACCESS TO THE RESERVATION SYSTEM The lender’s security administrator will assign usernames and passwords. eHousingPlus will serve as security administrator for lender if none assigned. !

QUALIFY YOUR BORROWERS Lenders qualify applicants for the program. Lenders may pre-qualify and complete the application process in their own internal origination/underwriting systems using their internal codes. For the Florida Housing Program, buyers must present a fully-executed sales agreement before lenders reserve the first and second mortgage loan in the online reservation system. !

RESERVE YOUR LOAN Lenders reserve the first and second mortgage using the online reservation system. Online help is available in the reservation system or through eHousing’s website at ehousingplus.com. !

DISCLOSE Lenders must disclose the first and second mortgage loans in accordance to federal disclosure requirements. !

UNDERWRITE AND CERTIFY Lenders underwrite the first and second mortgage loans and are responsible for credit approval of all first and second mortgage loans originated through the Florida Housing Program. The Master Servicer (US Bank) does not re-underwrite loans. Following credit approval, lender’s underwriter completes the online Underwriter Certification Form verifying borrower(s) qualify for the Program. !

CLOSE AND FUND THE FIRST AND SECOND MORTGAGE LOANS Title companies and title agents play an important role in the Program. Failure to collect the appropriate signatures or to record appropriately may delay loan purchase. It’s important to provide accurate closing instructions to closing agents. All program documentation must be returned to the lender. !The first and second mortgage is funded by lenders at closing and reimbursed by Master Servicer (US Bank) on behalf of Florida Housing at loan purchase. !

! Page � 21

!!SHIP CLOSED LOAN FILE FOR PURCHASE

Lenders must utilize the FL HFA Preferred Compliance Checklist for the closed compliance file and ship the Compliance file and fee directly to eHousingPlus. eHousingPlus will review the program compliance documentation to verify borrower(s) qualify for the Program. eHousingPlus exceptions will be posted online and lenders contacted. !Lenders should use the HFA Preferred Mortgage File Checklist for the mortgage file. Ship directly to US Bank MRBP Division. Recorded documents should be submitted using the Final Document Submission Checklist provided on US Bank’s website. US Bank exceptions will be posted online and lenders contacted. for resolution. Please clear timely. Lenders will service loans until purchased by US Bank.