In This Issue
DU Issues
KHC Purchase Price Limit
KHC Holiday Hours
DAP Funding Deadlines
Third Party Originator Closings
FNMA Selling Guide Announcement SEL-2014-16
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DU Issues

Unfortunately, the Desktop Underwriter (DU) update over the weekend caused an issue with the Kentucky Housing Corporation (KHC) 97 Percent Convetional No Mortgage Insuramce (MI) and With MI Programs. The DU release incorporated KHC's programs with the traditional lenders' 97 percent Loan To Value (LTV) requirement of one borrower needing to be a first-time home buyer. The edit for the first-time home buyer is being incorrectly applied to the HFA Preferred Programs and will result in an "Approve/Ineligible" feedback message.

 

As of today, we are asking lenders to overlook this message if the only reason for the "Ineligible" recommendation is because the LTV is above 95 percent and at least one borrower is not a first-time home buyer. This edit will not be fixed until Fannie Mae's next DU release in April 2015. If you have any questions, please email [email protected].

 

Fannie Mae's Special Feature Code for KHC's 97 percent Conventional With MI Program (HFA Preferred) will change to 741 effective for all loans on Thursday, January 1, 2015.  
KHC Purchase Price Limit

KHC will be announcing a new Purchase Price Limit in the New Year. Look for a future eGram announcing the specifics very soon!

KHC Holiday Hours

KHC offices will be closed on Thursday and Friday, December 25-26, 2014, in observance of the Christmas holiday. KHC offices will reopen at 8 a.m. on Monday, December 29.  

 

KHC offices will also be closed on Thursday and Friday, January 1-2, 2015, in observance of the New Year's holiday. KHC offices will reopen at 8 a.m. on Monday, January 5, 2015.

 

In consideration of these closings, please submit any loans to be closed by the end of the month as soon as possible. 

DAP Funding Deadlines

For KHC to fund Down payment Assistance Program (DAP) requests for closings on Friday, December 26, or Monday, December 29, requests must be received by 10 a.m. ET, Wednesday, December 24.

 

For KHC to fund DAP requests for closings on Friday, January 2, or Monday, January 5, requests must be received by 10 a.m. ET, Wednesday, December 31. 

 

Effective with the roll out of our new reservation system in September, both Delegated and Correspondent Lenders can now fund the DAP with their own monies. When KHC purchases the first mortgage closed loan, KHC will also reimburse the DAP loan monies.

 

One benefit of the lender funding the DAP is there no waiting period for wiring of the DAP funds. So, once the loan is approved, the lender can close the loan. Secondly, it decreases staff time in handling additional steps in our system.
Third Party Originator Closings

No closings will be scheduled for Thursday and Friday, December 25-26, 2014. Closings scheduled for Monday, December 29, must be sent to KHC by 10 a.m. ET, Tuesday, December 23. Closings scheduled for Tuesday, December 30, must be sent to KHC by 10 a.m. ET, Wednesday, December 24.

 

No closings will be scheduled for Thursday and Friday, January 1-2, 2015. Closings scheduled for Monday, January 5, must be sent to KHC by 10 a.m. ET, Tuesday, December 30. Closings scheduled for Tuesday, January 6, must be sent to KHC by 10 a.m. ET, Wednesday, December 31. 

FNMA Selling Guide Announcement SEL-2014-16

This announcement has quite a bit of information, including changes to self-employed income calculations, adjustments for comparable sales, and payment calculation for student loans. Review Selling Guide Announcement SEL-2014-16 for more details on this announcement.  

2015-2019 Consolidated Plan Needs Surveys

KHC and the Kentucky Department for Local Government (DLG) are currently drafting the five-year plan for the HOME Investment Partnerships, Emergency Solutions, Housing Opportunities for Persons With AIDS, and Community Development Block Grant Programs. The plan consists of a Needs Assessment, Market Analysis, Strategic Plan, and the first Annual Action Plan. Partners are encouraged to read the Needs Assessment and Market Analysis drafts, available on KHC's website under Resources, Data Library, Consolidated Plan. These documents will be updated periodically over the next several weeks. In mid-February 2015, KHC and DLG will hold a public hearing to gather information on housing needs.

 

KHC and DLG need and value partner input into the plan. In addition, KHC and DLG wish to ensure that the citizens of Kentucky are afforded the opportunity to participate in the process, and invite partners, service providers, local governments, and other housing professionals to complete a partner survey. Also, a citizen survey for Kentucky residents is also available, and KHC and DLG encourage our partners to provide this survey to clients. A paper version of the survey is also available. After the Kentucky citizen completes the survey, the partner agency should enter the information into the Web form.

 

KHC will gather survey information over the next several weeks. Any questions about the surveys, the Consolidated Plan, or the process may be directed to Bernie Hillman at [email protected].  

DO NOT REPLY-This is an unmonitored email address.

 

Kentucky Housing Corporation prohibits discrimination on the basis of race; color; religion; sex; national origin; sexual orientation or gender identity; ancestry; age; disability; or marital, familial, or veteran status. 

 

To change your eGram preferences or to sign up for an eGram list, please visit KHC's website and click on the eGram icon under Quick Links.    

 

If you have subscription problems, please contact KHC's Nicole Morris toll-free in Kentucky at 800-633-8896 or 502-564-7630, extension 459; TTY 711; or email [email protected].