hfa institute - ncsha...fannie mae, and freddie mac a centralized collection of online resources to...

HFA Institute

January 16-18, 2019Washington, D.C.

Discussion Topics

• Driving Progress

• Recent Updates

• Innovate Home

• Digital Collaboration

• Looking Ahead

NCSHA HFA Institute| January 16-18, 2019 2

Driving Progress through PartnershipsMaintain our longstanding relationship with HFAs and identify solutions to help you reach more borrowers and lenders in your market

Product Innovation

✓ Piloting new ideas✓ Collaborating with

industry partners to drive solutions

Increasing Conventional

✓ Strategic planning✓ Training & education✓ Lender development✓Marketing &

Outreach

Duty to Serve Initiatives

✓Manufactured Housing

✓ Rural innovation✓Housing

Preservation

Expand Access to Credit

✓ Reach more low-to-moderate borrowers

✓ Leverage automation

✓Maintain loan quality

3NCSHA HFA Institute| January 16-18, 2019

Our Shared Successes

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Year-end 2018Over ~63,000 loans

~83%First Time

Homebuyers

Special Programs & Initiatives

NCSHA HFA Institute| January 16-18, 2019

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Recent Updates

1

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December 4, 2018 – Selling Guide Announcement SEL-2018-09➢ DU 10.3 Release➢ Commission Income and Unreimbursed Business

Expenses➢ On-Frame Modular and Modular Construction

October 2, 2018 - Selling Guide Announcement SEL-2018-08➢ Union workers ➢ Employment-related assets as income

September 4, 2018 - Selling Guide Announcement SEL-2018-07➢ Rural High-Needs Appraisal Waiver

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Very Low Income (VLI) Research

Goal

Borrowers

• Disparate information sources, leads to misinformation

• Poor understanding of the lending process

• Complex documentation required

• Creates borrower shaming

Gatekeepers

• Realtors act as ‘sherpa’

• LOs and underwriters want to serve VLI but struggle with time investment vs. return required

Their Challenges…

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Who We Talked To…


…to More Effectively Support LendersMeet VLI Homeownership Needs

Borrowers

• 100 interviews with potential & recent VLI homebuyers½ focused explicitly on millennials

• Key markets: Minneapolis, Baltimore, Philadelphia, Chicago, Ohio, Texas

Gatekeepers

• 36 in-depth interviews with loan officers, underwriters and realtors

• Key markets: Philadelphia, Texas, Ohio

Better Understand Very Low-Income (VLI) Borrowers…

Addressinghousing affordability issuesthrough Duty to Serve

Manufactured housing can help ease the shortage in affordable housing stock

$89,500 $30,000

9% 22 million

Lorem Ipsum Living in MH HomesMedian HHINew SF Home StartsSales Price

MH has consistently been an affordable option 92,891 in 2017

70,519 in 2015

81,169 in 2016

64,334 in 2014

Production of MH is increasing


1 Specific architectural and aesthetic features such as distinctive roof treatments (eaves and higher pitch roofline), lower profile foundation, garages or carports, porches, and dormers.

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2 Construction elements including durability features, such as durable siding materials

Energy efficiency standards (minimum energy ratings apply)

4 Options for garages or carports, porches and dormers

MH Advantage Characteristics

LEARN MORE | For more information, refer to Selling Guide Announcement SEL-2018-5 and visit: FannieMae.com/manufacturedhomes


Reaching More Borrowers in Rural America

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Colonias

Mississippi Delta

MiddleAppalachia

What we’ve learned

• Rural demographics often do not support a flourishing housing market

• Lenders are faced with limited affordable capital and liquidity options

• Market differentiation exists and rural loans should not be viewed as one homogenous group

Real Estate Professionals

Lenders Aspiring Homebuyers

Connecting the market through

outreach and initiatives


Reaching More Borrowers in Rural America

Special Initiatives

High Needs Rural

Native American Lending

Small Financial Institutions

Multifamily Solutions

Outreach Activities

Research & Analytics

Test and Learn Opportunities

Partnering/Innovation

Marketing & Education



1 Partnering with tribal leadership and Tribally Designated Housing Entities (TDHE) to establish Memorandums of Understanding (MOUs)

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2 Signed a memorandum of understanding with Fannie Mae to make our mortgage products available on their lands

Manufactured Housing opportunities available for borrowers looking to buy a home on tribal lands

4 We purchase HUD-184. These guaranteed loans offer Native Americans low down payments and other flexibilities

Native American Homeownership

LEARN MORE | For more information visit: https://www.fanniemae.com/singlefamily/native-american-lending

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HomeStyle® Renovation

HomeStyle Renovation can be a powerful product offering, allowing you to finance home improvements with a conventional mortgage.


https://www.fanniemae.com/content/news/homestyle-renovation-case-study-anniemac

HomePath® REO: Affordable Properties, Affordable FinancingCombining affordable financing options with Real Estate Owned (REO) properties can help homebuyers find homes that match their budgets.

© 2017 Fannie Mae. Trademarks of Fannie Mae. | 18

HomePath HFA Incentive

Closing Cost Assistance

• Fannie Mae REO properties available on www.homepath.com

• 3% closing cost incentive to borrowers financing Fannie Mae properties using HFA Preferred mortgage products

http://www.homepath.com/

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We’re focused on continuousimprovement and ongoing innovation


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Limited English Proficiency by the numbers…

25.1 MLEP people in

the US

LEP are those who reported speaking English less than

“very well” 1

5.3 MLEP heads of

household

(equivalent to 4.5% of US households) have limited or no

ability to speak English 2

5%lower

homeownership

in zip codes with the highest share of LEP

residents, controlling for other factors influencing

homeownership (e.g.

income, age, race/ethnicity) 2

64%of LEP people in

the US speak Spanish

6% speak Chinese, 3% Vietnamese, 2%

Korean, 2% Tagalog 1

1 Source: Migration Policy Institute. (March 2017). The Limited English Proficient Population in the United States. 2 Source: Urban Institute, Housing Finance Policy Center. (March 2018). Is Limited English Proficiency a Barrier to Homeownership?


https://www.migrationpolicy.org/article/limited-english-proficient-population-united-states

https://www.urban.org/sites/default/files/publication/97436/is_limited_english_proficiency_a_barrier_to_homeownership.pdf

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Mortgage Translations clearinghouselaunched in October 2018 by FHFA, Fannie Mae, and Freddie Mac

A centralized collection of online resources to assist lenders, servicers, housing counselors, and other real estate professionals in serving LEP borrowers. It was created with insights from industry representatives and includes:• Mortgage documents (e.g. URLA)

• Glossary of mortgage terms

• Disclosure (already in all 6 languages)

2018Spanish

2019Chinese &

Vietnamese

2020Korean & Tagalog


• New policy tool with intelligent search capabilities

• Get fast, clear answers to Selling Guide questions

• Get answers to HFA Preferred questions

Ask Poli is learning all the time

Answers to all your Selling Guide questions, all in one place.


Q AWhat percentage of HFA loans receive any Day 1 Certainty rep and warrant component relief?

41%


Mortgage Lender Sentiment Survey®

Top priorities include:

• consumer-facing technology• business process streamlining• cost cutting

To learn more, read the full report.

Cost Cutting Has Emerged as a Focus of Lender

Competitiveness


http://fanniemae.com/portal/research-insights/perspectives/cost-cutting-lenders-duncan-062118.html

We are here to help!

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Jessica Wright

Relationship Manager, Single FamilyTel: (202) 752-6139Email: [email protected]

Noelle Melton

Director, Affordable Housing Initiatives, Single FamilyTel: (202) 752-1741Email: [email protected]


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