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Loan Discount Fee/Updated VHDA Documents

Date: June 23, 2000

To: VHDA Originating Agents

Subject: Loan Discount Fee/Updated VHDA Documents

LOAN DISCOUNT FEE

Virginia Housing Development Authority is pleased to announce that payment of the discount fee is a negotiable charge on all VHDA loans. Originating Agents are no longer required to charge the discount fee to the seller. This change amends Item #2 of paragraph D on page 19 of the Rules and Regulations for Single Family Mortgage Loans to Persons and Families of Low and Moderate Income which is located in your Origination Guide. The regulation was amended to read "The originating agent shall collect at the time of closing an amount equal to 1.0% of the loan amount."

Amended Rules and Regulations will be provided with the Origination Guide which is currently being updated to reflect this and other pertinent changes. We anticipate providing the updated Origination Guide to all Originating Agents within the next several months.

UPDATED VHDA EXHIBITS AND DOCUMENTS.

The following VHDA exhibits and documents have been updated and are enclosed. All updates have been provided to VMP Mortgage Forms.

*Flexible Alternative Pricing Worksheet (Ex. A)
Revised to allow calculations at 100% LTV

*Program Disclosure and Affidavit of Borrower (Ex. E) Changes relative to loan discount fee, as stated above. Loan Servicing Disclosure has updated servicing transfer percentages.
Typographical errors have been corrected. Revision to preprinted dates.

*Affidavit of Seller (Ex. F)
Changes relative to loan discount fee, as stated above. Revision of preprinted dates.

*Flexible Alternative Addendum to Attorney Instructions (Ex. M(3))
Changes relative to loan discount fee, as stated above.

*Verification and Update of Information in Application (Ex. U)
Revision of preprinted dates.

*Escrow Agreement for Buydown Mortgage Loans (Ex. V) Revision of preprinted dates.

*Technical Corrections Agreement (Ex. EE)
Revision of preprinted dates.

*Closing Document Checklist (Ex. II(1))
Corrected to delete Second Mortgage PUD and Condo Riders.

*Servicing Setup Checklist (Ex. II(3))
Revised to add W-9.

*Underwriting Waiver Request (Ex. JJ)
Revised to add Loan Type.

*Underwriting Document Checklist (Ex. KK)
Revised to add DU, LP or Fastrak Approval

*Informed Consumer Choice Disclosure Notice (Ex. MM) Updated, and revised to disclosure loan to value of 100% on Flexible Alternative Program

*Delegated Underwriter Mortgage Loan Commitment (DU-300)
Changes relative to loan discount fee, as stated above. Revision to first paragraph under Item B on page 1.
Revision of preprinted dates.

*FHA Plus Addendum to Delegated Commitment (DU-300(1)) Delete Item #4. Revision of preprinted dates.

*Delegated Request for Disbursement (DU-700)
Revised to add Loan Type.

*VHDA Rider to Conventional Deed of Trust (Doc C-5) Changes to enable appropriate use with current and future versions of FNMA/FHLMC Deed of Trust (Virginia).

*Flexible Alternative Mortgage Loan Program Rider to Conventional Deed of Trust (Doc F-5)
Changes to enable appropriate use with current and future versions of FNMA/FHLMC Deed of Trust (Virginia).

*VHDA Rider to VA Deed of Trust (V-3)
Revision of preprinted dates.

*Conventional Step Rate Note (Step-1)
Revision of preprinted dates.

*FHA Step Rate Note (Step-2)
Revision of preprinted dates.

*VA Step Rate Note (Step-3)
Correction of typographical error.
Revision of preprinted dates.

*Step Rate Allonge Amending Note (SA)
Revision of preprinted dates.

*Listing of Required Conventional, FHA, VA and RD Loan Closing Documents (Ex. J(1), J(2), J(3), J(4))
Updated to reflect current revisions dates on listed documents.

*Federal Income Limits Table (For use with the Recapture Provision of the Current Internal Revenue Code) (Ex. Z Table) has been revised to reflect updated figures.

Originating Agents may begin using these updated and revised VHDA documents immediately. However, they must be in use on or before September 1, 2000.

Thank you for your continued support of VHDA programs. If you have any questions concerning the above changes and updates, please do not hesitate to contact any VHDA Single Family Underwriting or Closing Department associate.

Sincerely,

Sheila Pollard
Closing & Quality Review Manager
Single Family Division

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