U.S. Bank Overlays Apply to Loans Using Non-Traditional Credit
U.S. Bank Home Mortgage released Bulletin 2015-07 on May 26, 2015 announcing new overlays for loans underwritten using non-traditional credit. These overlays apply to all Start Up, MCC (with First Mortgage) and Step Up loans committed on or after July 1, 2015.
You can find updated procedural manuals and program descriptions on theHomeownership Lenderspages of Minnesota Housing’s website. U.S. Bank Home Mortgage bulletins are available on the AllRegs website.
DPL Plus Targeting Criteria Definitions
The Start Up Procedural Manual includes definitions of disabled household member and single head of household with minor dependents, two of the four possible targeting criteria for Deferred Payment Loan Plus. (See pages 30 and 31 of the Start Up Procedural Manual.)
Lenders should use the definitions as a guide to determine if their borrowers meet either of these criteria. The lender’s underwriter makes the final determination on Deferred Payment Loan Plus eligibility and Minnesota Housing does not require documentation of eligibility.
Disabled Household Member: A borrower or household member who has a permanent physical or mental condition, which substantially reduces the person’s ability to function in a residential setting.
Single Head of Household with Minor Dependents: A single head of household with minor dependent(s) must meet all of the following criteria:
One or more minors must reside in the household at least 50% of the time
Only one parent or legal guardian living in the home
Only one borrower (non-resident co-signers permitted)
Minnesota Housing will be closed on Friday, July 3 in observance of the Fourth of July holiday. Lenders will be unable to lock new loans between 5:00 p.m. on Thursday, July 2 and 10:00 a.m. on Monday, July 6.
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.