To: VHDA Originating Lenders

From: Michele Watson

Date: June 15, 2012

Re: New VHDA Fannie Mae Pilot Program

 VHDA has entered into an agreement with Fannie Mae to offer a new loan product available only through state housing finance agencies.  We anticipate this will provide affordability features not currently available through other loan products.

 Since this will be the first time VHDA has delivered loans directly to Fannie Mae, we will initially offer the program as a pilot through a few VHDA lenders.  These lenders were invited to participate in this pilot based on an analysis of critical performance criteria including assessment of document delivery, loan quality and current Fannie Mae status.  We have also done our best to ensure there is a representation of the program in the various markets throughout the Commonwealth.  This pilot phase will provide VHDA the opportunity to establish procedures and guidelines prior to final program implementation.  We are confident the pilot phase will proceed smoothly and we anticipate expanding the program to other approved VHDA lenders as soon as possible.

 During the pilot phase there will be no information related to the program on vhda.com.  Upon development of final program procedures and guidelines this information will be shared with all approved lenders and available on our website.

 This new venture is an important part of VHDA’s efforts to expand our lending resources to enable us to offer the broadest array of products to our lenders and borrowers.  We look forward to working with all of you as the program is finalized, and we will continue to update you on the progress.