New Conventional Loan Options and Commitment System Changes

Coming Next Week! Freddie Mac HFA Advantage and Upfront Paid Mortgage Insurance
Effective for new Start Up, MCC and Step Up conventional loan commitments as of August 17, 2015, we are offering two new options to better serve your borrowers:
  • HFA Advantage – This Freddie Mac product offers a 97% loan-to-value (LTV) ratio with low mortgage insurance rates.
  • Upfront Paid Mortgage Insurance (UPMI) – This option is available with Fannie’s HFA Preferred™ and Freddie’s HFA Advantage and allows lenders to pay the mortgage insurance premium up front via additional SRP, eliminating the need for borrowers to pay for monthly mortgage insurance. This option requires a 720 credit score.
Both products will be available to all participating lenders and no additional participation agreement is required. Visit our website for an updated payment comparison.
Learn more at an upcoming Webinar:
  • Thursday, August 13 from 2:00 – 3:00 p.m.: In this Webinar hosted by Minnesota Housing, get an introduction to Freddie Mac’s HFA Advantage℠ and the Upfront Paid Mortgage Insurance option and learn how to lock these loans in our online commitment system.
  • Tuesday, August 18 from 12:30 – 2:30 p.m.: In this Webinar hosted by U.S. Bank and Freddie Mac, you'll receive more in-depth training on Freddie Mac’s HFA Advantage℠ from origination to post-closing. Minnesota Housing staff will provide a short introduction on how to commit HFA Advantage℠ and Upfront Paid Mortgage Insurance in our online commitment system.
Changes to Conventional Loan Commitment Instructions
Effective August 17, the process for locking all conventional loans in Minnesota Housing’s online commitment system will change slightly. 
  1. Choose insured or uninsured when selecting your “Allotment” type. Remember that the UPMI options are insured, whereas HFA Preferred Risk Sharing™ loans are uninsured.

  2. Next, choose the “Allocation” name. Some of the conventional loan allocation names are changing and the UPMI allocations are new.
    - Fannie Mae HFA Preferred™ allocations will begin with "Fannie/Freddie."

    - UPMI allocations begin with "Fannie/Freddie Upfront Paid MI."

  3. On the “Loan Info” tab, choose “conventional” from the “Loan Type” drop-down menu. On the “Other” tab, choose Fannie or Freddie from the “Fannie/Freddie” drop-down menu. You will receive an error message if you do not make a selection.  
Learn more about these changes at the August 13 and August 18 Webinars. A recorded training will be available on August 17 on our website.
If you lock an HFA Preferred™ or HFA Preferred Risk Sharing™ loan prior to August 17, our staff will update the commitments on your behalf to designate them as Fannie Mae loans. 
New Mailing Address for Original Collateral Packages
U.S. Bank Home Mortgage, Housing Finance Division, (U.S. Bank Home Mortgage) is centralizing the receipt and processing of original collateral packages. Effective August 17, the following documents must be mailed to U.S. Bank Home Mortgage’s Bloomington office:
  • Original Endorsed Notes
  • Original Allonges
  • Bailee Letters
These documents must be mailed via UPS or FedEx to:
ATTN: Note Vault

1550 American Blvd. E., Suite 440

Bloomington, MN 55425
For more information, refer to U.S. Bank Home Mortgage’s bulletin number 2015-028, available on the AllRegs website.

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.
400 Sibley Street, Suite 300 | Saint Paul, MN 55101 US
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