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Reminder: Pricing and Auto-pay Incentive
On July 2 we implemented Fix Up Loan Program changes, including tiered interest rates and allowing the auto-pay incentive with both secured and unsecured loans (not available with Energy Incentive loans, Accessibility loans, or Community Fix Up loans).
Here are some reminders to prevent errors:
  • Select the correct rate, term, and auto-pay incentive (if applicable) when locking the loan in the online commitment system.
    • To receive the auto-pay interest rate reduction, you must select the Auto-pay incentive rate option in the system (see example below).
  • Use Forms Generator to ensure the note has the correct interest rate.
  • Use the correct note. We have four different notes: secured, secured with ACH, unsecured, and unsecured with ACH. Only use the ACH notes if you have locked the loan at the auto-pay incentive rate.
  • Notes with ACH additional calculation: Notes for loans with auto-pay include a section explaining to the borrower that their rate will increase if auto-pay is terminated. To complete that section of the note, the lender must calculate and enter what the non auto-pay rate would be.
    • When the auto-pay incentive option is selected in the online commitment system, the rate lock will reflect the auto-pay interest rate reduction. To calculate the non auto-pay rate that would apply if auto-pay is terminated, add .25% to the locked rate. 
    • Rates posted on the Interest Rate page do not reflect the auto-pay incentive.
Questions?
You can reach the Partner Solutions Team at 651.296.8215 or 800.710.8871 between 7:30 a.m. and 5:00 p.m. on business days.
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