MRB Special Funding Program--Monies Still Available

Kentucky Housing Corporation (KHC) still has $1 million in special funding available at 2.00 percent fixed interest rate for 30 years. The Mortgage Revenue Bond (MRB) Special Funding Program is available on a first-come, first-served basis with new reservations only.

The MRB Special Funding Program flier is available on KHC's website, under Lenders, Marketing Tools.

FHA Revises Student Loan Payment Calculation

The Federal Housing Administration (FHA) revised guidelines for lenders when calculating student loan obligations for use in borrowers' debt-to-income ratio calculations. Consistent with industry practice, the revised guidance allows the same calculation criteria to be applied regardless of student loan payment plan type, such as income-based payment plans, or deferral status. Lenders may begin using the new guidance immediately, but must use the guidance for all case numbers assigned on or after Thursday, June 30, 2016.

The new guideline requires the lender to utilize 1 percent of the outstanding balance to establish the monthly payment or use the actual documented payment when the payment is fully amortized over the loan's term.

The Mortgagee Letter 2016-08 is available on the U.S. Department of Housing and Urban Development (HUD) website.

Closing and Quality Review Tip

Be sure the Post Closer contact information is correct on the "Set Closing" tab, in KHC's Reservation System, which may be different from the "Loan Contact" tab. The Post Closer listed in the "Set Closing" tab is the person that is emailed for items missing or needed per KHC's 10-day closed loan review. A generic post-closing email box insures the proper team or person receives the notification. Or, if this is not possible, you can have your company's KHC System Administrator add multiple emails to different Post-Closer users. If your System Administrator has any questions, please contact Misty Tackett toll-free in Kentucky at 800-633-8896 or 502-564-7630, extension 319; TTY 711; or email mtackett@kyhousing.org.

SB 97 Passed into Law

Senate Bill (SB) 97 provides relief to Kentucky mortgage professionals by making Kentucky mortgage licensing requirements more consistent with other states. It removes the requirement that loan processors must be licensed.  

Processors will no longer have to complete the 20-hour pre-licensing education and pass the exam; however, they will still have to have the criminal background check and comply with continuing education (CE) requirements. Also, it changes the annual CE requirement from 12 hours to only 8 hours annually, with 1 hour of the required 8 hours being on Kentucky Law.  

This bill became law on April 13, 2016; however, the effective date of the law will likely be some time in the early part of July 2016.

System Maintenance Scheduled

The KHC network will undergo scheduled maintenance on Thursday, April 21, from 6:15-6:45 p.m., and again Saturday, April 23, from 7 a.m. to noon. KHC's website will remain up and running during this time, but links from the website to KHC applications will be affected. Please plan accordingly.