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www.FHLBBoston.com
Housing and Economic Growth Tab
Equity Builder Program
Forms and Applications
Download the following:
Income Calculation Guidelines
Homebuyer Information……
EBP Disclosure
Next Steps Webinar:
Enrolling Homebuyers
Resources
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Why FHLB Boston?
Equity Builder Program – Overview
Eligible/Ineligible Uses
Member Eligibility Requirements
Household Eligibility Requirements
Establishing an EBP Work Flow
Identifying Eligible Households
Documents Required At Time of Enrollment
Income Calculation Reminders
Online Income Calculation/Enrollment Process
Disbursement Training
Questions?
Agenda
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How participating in our programs can help you:
Expand business development opportunities
Meet the housing and credit needsin your communities
Meet CRA objectives
How FHLB Boston Can Help Members
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The opportunity to bridge the gap between mortgage and purchase price
The potential for lower debt ratios
A greater equity position in the subject property with lower loan-to-value ratios
Marketing material:
FHLB Boston has developed a marketing flyer for members to use when presenting the program to community partners
A press release template is available and may be used to announce your participation in the program
The EBP offers homebuyers
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EBP is a regulated grant program
Household grant of up to $11,000; provides down-payment, closing-cost, homebuyer counseling, and rehabilitation assistance to households with incomes ≤ 80% of AMI
Can be combined with other subsidy programs (except AHP)
You provide concessions and ensure homebuyers receive homeownership counseling
Requires an executed 5-year retention document at closing
EBP Standard Mortgage
Deed Restriction (FHA only)
EBP Note (covers standard and deed restriction)
Program Overview
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Member Enrollment Cap:
Each member will access up to $110,000
Funds are not guaranteed to any one member
Funds are available on a first-come, first-served, homebuyer-by-homebuyer basis
First one-third of the enrollments must be to first-time homebuyers * Refer to: (HUD 42 U.S.C. §12704(14)) *
Individual Household Cap:
Each household can receive up to $11,000
Approved enrollments are homebuyer specific
Grant Funds – 2018
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The allocation for the 2018 funding round will be divided between four funding periods:
35 percent released on March 28, 2018
25 percent released on April 25, 2018
20 percent released on May 23, 2018
20 percent released on June 20, 2018
Available funds will continue to roll into the next funding period until all funds have been committed within the annual funding period
Subsidy Pool
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Eligible Uses:
Downpayment assistance
Customary closing costs
Homebuyer-counseling costs not covered by another funding source to a maximum of $500
Rehabilitation costs associated with acquisition (funds are released only after 100 percent of the work has been completed and verified)
Ineligible Uses:
Reimbursement for previously paid earnest money downpayment(s)
Bridge the gap between purchase price and appraised value
Co-mingling of other AHP subsidy provided by any Federal Home Loan Bank (systemwide)
Funding monthly housing payment reserve requirements or prepayment of life insurance premiums
Eligible/Ineligible Uses
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Submit EBP application and be approved (annually)
Complete enrollment and disbursement training - required
Review and manage the EBP pipeline regularly
Review and submit income-eligible households into the program through the Bank’s online system
Housing debt of 34 percent (exceptions allowed on case-by-case basis – HH must be able to carry monthly debt)
Request all increases/decreases to the EBP subsidy for enrolled homebuyers online
Review homebuyer education/counseling requirements
Provide a concession/special incentive at closing
Ask questions!
Member Reminders
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Homebuyer education/counseling must be completed within 24 months prior to enrollment submission and prior to closing on the subject property
The counseling should follow accepted industry standards regarding the purchase and ownership, including maintenance of the home
Although a minimum is not required, the Bank recommends a minimum of 8 hours of homebuyer education with a counseling component
Online counseling will be permitted as an acceptable resource for meeting the homebuyer counseling requirements when approved in advance by FHLB Boston. An online counseling program will be recommended, at the time of approval, by FHLB Boston.
Homebuyer Education/Counseling
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NOTE: Members will be limited to six user names and passwords
The two contact people identified at the time of application for the EBP will:
Receive all emails and correspondence
Remain a point of contact for the homebuyer
Coordinate a work flow and train appropriate staff personnel such as:
Loan Originators
Underwriters/Processors
Closers/Post-closers
Communication is Key!
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Purchase an owner-occupied primary residence
One- to four-family units, condos, multifamily and manufactured homes (permanently affixed –homeowner must take title)
Provide the total HH count and all income received
EBP Disclosure
Cannot receive more than $250 cash back at closing
Contribute a minimum of $500 in downpayment funds
Execute an EBP retention document at closing
Earnest money downpayment must stay in the transaction
Complete homebuyer education/counseling requirement
Ask questions!
Household Reminders
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Homebuyer Selected
Executed P&S Agreement
Online Income Calculation/Enrollment
FHLB reviews and approves | Allow 15 business days
Close on Purchase
Request Disbursement/ReimbursementFHLB reviews, approves, disburses | Allow 20 business days
Establishing an EBP Work Flow
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Interview and identify potential homebuyers:
Verify the total number of household occupants who will live in the property at the time of closing and going forward
Validate the total household income:
Cannot exceed 80 percent of the area median income based on the current HUD Income guidelines at http://www.huduser.org/datasets/il.html
18 years or older, must include their income
Year 2018 limits have not been released as of 03/14/2018
Review income sources and household members against the most recent filed tax return for each adult
Remember: The EBP is an income-based eligibility program and the first one-third of homebuyers must be first-time homebuyers.
Identifying Eligible Households
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Homebuyer Information, Household Members and Income Worksheet and Authorization to Release/Certification of Information – (EBP Disclosure)
To be uploaded at the time of enrollment!
2018 version is on the website and must be used with all enrollments at www.fhlbboston.com (under Forms and Applications)
1. Document is to be completed by an adult household member
2. Loan originator should review and validate the information against the income documents requested and received
NOTE: The form needs to be initialed by the homebuyer (pages 1-4) and signed by all parties (pages 6-7)!
Documents Required at Time of Enrollment
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Income Documents:
Documents from all sources of income, as defined in the Income Calculation Guidelines provided by FHLB Boston located at www.fhlbboston.com
Income documents must be provided and uploaded with the enrollment – dated within 45 days of enrollment
We cannot accept documents through emails
A Certification of Zero Income only from non-working adult household members who do not receive any income from any source – updated 2018!
An explanation from the member for any unusual income or household situation(s)
Documents Required at Time of Enrollment
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Purchase and Sale Agreement:
Legible, executed, valid, and a complete copy of the agreement
Include all addendums and exhibits
NOTE: Member to identify and provide an explanation for related-party transactions
NOTE: Income eligibility is approved by FHLB Boston at enrollment and is required to re-reviewed with any change to the property
Documents Required at Time of Enrollment
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Reminders:
Prior to submission, a manual review of the income should be performed and should be in-line with the income calculator results
The accuracy of the enrollment and income calculation is based on a comparison of the EBP disclosure, tax returns, and income documents
Approval of the enrollment is determined by FHLB Boston upon review of the documents provided
Income Calculation
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EBP income is prospective (next 12 months), annualized
Income Calculation Guidelines available at www.fhlbboston.com
The total income of the household for all residing adult members cannot exceed 80 percent of the area median income (AMI)
Income calculations under the EBP will most likely vary from secondary market income requirements
Online automated system is designed to provide a standard way of determining income-eligibility and must be used
Income Calculation Reminders
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Starting the Income Calculation/Enrollment Process
1. Log into the system
Online Income Calculation/Enrollment Process
Users can request an account or reset their passwords.
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3. Click on Create/Manage Income Calculations/Enrollments
Online Income Calculation/Enrollment Process
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4. Review member specific program details AND
“Add A New Household”
Online Income Calculation/Enrollment Process
The subsidy pool balance and member specific details can be viewed here.
Each household is assigned an EBPnumber and added to your pipeline
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5. Blackout personal identifying account numbers and review the EBP disclosure
Online Income Calculation/Enrollment Process
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6. Enter information pertaining to the property being purchased
Online Income Calculation/Enrollment Process
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7. Enter information about each household member and their income
Step FourOnline Income Calculation/Enrollment Process
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8. Don’t forget to click “Add Household Member”:
Online Income Calculation/Enrollment Process
The household member must show up in the table that is being created
9. Tax Return Review (top portion of screen)
Continued: (middle portion of the screen)
Online Income Calculation/Enrollment Process
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10. Upload the Homebuyer Information, Household Members and Income Worksheet, and the Authorization to Release: (bottom portion of the screen)
Online Income Calculation/Enrollment Process
Remember: Review to make sure that there are all three signatures on the document!
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11. Enter employment information and click “Add household member’s employer/type of documentation”
Online Income Calculation/Enrollment Process
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12. Use the document type selected to input income information (paystubs)
Online Income Calculation/Enrollment Process
Income Calculation pay periods, are calculated based on the check date except when the check date is before the period ending date.
Always round up; i.e. 9.01 pay periods = 10
Enter YTD earnings before deductions (i.e. $3000)
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13. Click “Add Paycheck Information” to create Table of Employment
Online Income Calculation/Enrollment Process
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14. Use the document type selected to input income information (VOE):
Online Income Calculation/Enrollment Process
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15. Use the document type selected to input income information
Online Income Calculation/Enrollment Process
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16. Review uploaded documents and attach any additional documents here:
Online Income Calculation/Enrollment Process
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17. You will be able to review the system’s calculation of income and data you have entered:
Online Income Calculation/Enrollment Process
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18. If there is anything missing, it will show up on the right under the appropriate section
Online Income Calculation/Enrollment Process
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19. You have the following two options:
a) Save and Exit OR
b) Enroll Household
Online Income Calculation/Enrollment Process
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Option One: “Save and Exit” will return you to the beginning of the process. Your income calculation/enrollment will remain in “NEW” status until you complete the enrollment submission process. You will click “Edit” to review and update.
Option Two: Selecting the “Enroll Household” will take you straight into the enrollment process
Online Income Calculation/Enrollment Process
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Enter mortgage financing information
Enrollment Submission
Remember:Maximum 2/6 caps for all ARM products
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THANK YOU! EBP funds have been reserved for this household pending approval by FHLB Boston.
Enrollment Submission
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Enrollments must be submitted at least 15 business days prior to the closing transaction
Upon submission of the enrollment, EBP funds will be reserved for that specific household
If a homebuyer is denied a mortgage loan or requests to withdraw their loan application, the expectation is that the member will withdraw the enrollment as soon as notification is received
Each enrollment approval is valid for 90 days
Extensions may be requested and are granted at the sole discretion of FHLB Boston
Enrollment Submission
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All approved members must attend EBP Disbursement training prior to requesting reimbursement of EBP funds
Upcoming date: Final Steps: Requesting the Disbursement
March 29 and April 3
Registration is now open and can be accessed at www.FHLBBoston.com
Members should determine who is best suited to attend:
Underwriters
Closers and Post-closing
Disbursement Training
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For more information, contact:
Kaitlyn Mulhern, EBP Manager
617-292-9606 | [email protected]
Michelle Chisholm, HCI Analyst
617-425-9582 | [email protected]
Kathleen Amonte, HCI Compliance Analyst
617-425-9413 | [email protected]
Paulette Vass, Community Development Advance Manager,
617-292-9792 | [email protected]
Mary Ellen Jutras, Vice President/Deputy Director
617-292-9607
Kenneth Willis, First Vice President/Director
617-292-9631
Housing and Community Investment