Lender Guidelines: 7.2 Reservation, Compliance and Closing Steps

Lender Guidelines: 7.2 Reservation, Compliance and Closing Steps

See this Step by Step Procedures document to help with the details of the loan process. Below is an overview of the overall process.

 

Step 1: Reserving Funds

 

At the time the Lender reserves a mortgage loan in the Lender Portal, the Lender must have a mortgage loan application from a borrower, and the Lender must have made a preliminary determination that the borrower qualifies for the program(s). In addition, the borrower must have furnished the Lender with a property sales contract or construction contract executed by the borrower and the seller or builder of a residence.

 

The reservation window is open Monday through Friday between 9:00 a.m. and 7:00 p.m. Central Time and will not be available on Saturdays, Sundays, certain holidays, and days when the financial markets are closed.

 

• Login to the TSAHC Lender Portal at www.tsm-online.org.

• Select the “New Reservation” tab in the upper left corner.

• Select the appropriate program from the list.

• Complete those fields marked with a red asterisk in the reservation form and click “Submit” at the bottom of the form.

• Once the loan is reserved, you will have the option to view or print your reservation confirmation.

• The reservation confirmation will include the TSAHC loan number, the date reserved and the commitment expiration date (60 days from the reservation date).

 

Step 2: Underwrite the Mortgage Loan

 

The Lender underwrites the loan in-house following the relevant agency guidelines on FHA, VA, USDA-RHS, or Conventional (Freddie Mac or Fannie Mae), including TSAHC overlays provided in these Guidelines and any overlays provided by Lakeview.

 

Step 3: Pre-Closing Compliance Package Submission

 

• The next step is to complete and submit the Pre-Closing Compliance Package via the Lender Portal at least 5 calendar days prior to the anticipated closing date of your loan.

• Login to the Lender Portal at www.tsm-online.org.

• Click on the “Loan Status” tab and use the search engine to locate the applicable loan.

• Once the correct loan is identified, click on the “PDF Forms” tab associated with the selected loan.

• Select and download the applicable DPA Pre-Closing Checklist. Ensure all documents listed on the checklist are uploaded AND submitted via the Lender Portal.

• Once the Pre-Closing Compliance Package has been approved/committed, the Lender may re-enter the Lender Portal and print out a Commitment Letter from the “PDF Forms” tab associated with the loan under the “Loan Status” tab.

• To prepare for closing, select and download the DPA Post-Closing Checklist to ensure all documents listed on the checklist are executed at closing.

 

Step 4: Funding of Down Payment Assistance (DPA)

 

• This step is for Non-Bond DPA Loans (with or without an MCC) and Bond DPA Loans. Loans utilizing only an MCC can skip to Step 5.

• Provided the Pre-Closing Compliance Package is approved by TSAHC, the Lender will advance the down payment assistance funds at loan closing. Lenders will be reimbursed by Lakeview for the funds advanced when the mortgage loan is purchased by Lakeview.

• If a prepayment of a newly originated mortgage loan is received by the originating Lender prior to the sale of such mortgage loan to Lakeview, TSAHC will reimburse the Lender directly for the original funding of the down payment assistance, but only after the Lender pays a non-delivery fee to TSAHC equal to the amount of the down payment assistance.

• If the mortgage loan is prepaid after Lakeview purchases such mortgage loan from the Lender and before Lakeview sells the related mortgage-backed security (i.e., a security backed in part by such mortgage loan), TSAHC will reimburse Lakeview for the down payment assistance, but prior to such reimbursement, the Lender shall pay to TSAHC a non-delivery fee equal to the amount of the down payment assistance.

 

Step 5: Post-Closing Compliance Package Submission

 

• Upon closing, the Lender must submit the Post-Closing Compliance Package for TSAHC’s review and approval NO LATER than 5 days following loan closing. Those who repeatedly turn in late files may be fined or suspended.

• Login to the Lender Portal at www.tsm-online.org.

• Click on the “Loan Status” tab and use the search engine to locate the applicable loan.

• Once the correct loan is identified, click on the “PDF Forms” tab associated with the selected loan.

• Select and download the Post-Closing Checklist. Ensure all documents listed on the checklist are uploaded AND submitted via the Lender Portal.

• The loan will not be purchased by Lakeview, and/or the MCC will not be issued to the borrower, until the Post- Closing Compliance Package has been approved by TSAHC.

 

Step 6: Loan Purchase

 

• This step is only for Loans with Non-Bond DPA (with or without an MCC) or Bond DPA.

• Upon closing, the Lender will deliver the closing package to Lakeview for purchase. Delivery and funding information for the mortgage loan file may be found on the Lakeview Seller Portal at www.lakeviewcorrespondent.com.

• The closing package must be delivered to Lakeview promptly after closing and must be purchased by Lakeview within 60 calendar days of loan reservation.

• If the loan is not eligible for purchase within the 60-day purchase period, the lender may request a 15, 30 or 45-day extension for 0.25, 0.50 or 0.75bps respectively.

• This fee will be deducted from the Lender’s proceeds at the time the loan is purchased by Lakeview.

• The Extension Request Form can be found under the “Loan Status” tab on the Lender Portal (click on the “PDF Forms” tab associated with the specific loan).

• Extension requests beyond 30 days from the original expiration date will only be considered on a case-by-case basis. Lakeview may, but is under no obligation to, purchase loans beyond the 90-day period (initial 60-day period plus 30-day extension), subject to additional per diem charges.

• In the event a loan is not purchased by the later of the 60th day after initial loan reservation or the last day of any extension that was granted, TSAHC will reimburse the Lender for the down payment assistance funds advanced by the lender at loan closing, but only after the payment by the Lender to TSAHC of a non-delivery fee equal to such down payment assistance.

• Once all TSAHC and Lakeview conditions have been met, the loan will be purchased by Lakeview.

• Lenders will be reimbursed by Lakeview the amount of down payment assistance advanced when the mortgage loan is purchased by Lakeview.

 

 

For access to the full TSAHC DPA & MCC Guidelines, please click here.

 

 

 

related articles