Changes to the Rehabilitation Loan Program - Effective July 1, 2018
Minnesota Housing is pleased to announce changes to the Rehabilitation Loan Program (RLP), focusing on process improvements, changes to the compensation structure, and document simplification. Most of these changes resulted from feedback that we received from lending partners via surveys and other communication. Thank you for the helpful input!
These changes will be effective for loan applications dated on or after July 1, 2018.
Procedural Manual Changes
A new version of the RLP Procedural Manual will be available on the website after July 1, and will include the following changes:
- Lender Compensation Structure: For loan applications taken after July 1, you will receive $2,500 plus 5% of the loan amount for every loan purchased
- Combined Loan to Value Requirement: Combined amounts of all loans secured by the subject property cannot exceed 110% of the property value at the time of loan closing. This requirement does not apply to Accessibility Improvements and Manufactured Homes taxed as personal property.
- Remove Applicant Tracking Form Requirement: Lenders will no longer be required to complete the Application Tracking form, which has been submitted to Minnesota Housing on a bi-annual basis.
- Other Changes: Language has been added to the Procedural Manual regarding Fair Housing, Fraud Disclosure, and Suspension, as well as clarification on additional process requirements. Please thoroughly read the new version of the Procedural Manual to ensure you are aware of all changes.
Several changes have been made to the RLP loan submission process. These changes include:
- Loan Submission Process Changes: For loan applications taken after July 1, you will submit completed loan submission packages through Box.com. The loan will be submitted to Minnesota Housing staff for review prior to loan closing. If you have not received an email with instructions on how to access your Box.com folder, contact the Program Managers. Loan applications taken before July 1 will continue to use the current Loan Submission Process as well as the current forms and documents.
- Change Order Request Process Changes: A new version of the Change Order form will be available on the website after July 1. Use this version of the form for all Change Order requests after July 1, and submit requests via LeapFile on the secure file exchange located on our website.
- Other New Forms: Additional new forms will be available for use with the new Loan Submission Process change. These forms include: Loan Submission Worksheet, Loan File Requirement Checklist, Eligibility for Similar Financing Worksheet, and Accessibility & Disability Verification form.
- Website Changes: Changes will be made to the website to include access to forms and documents for loan applications taken prior to July 1, as well as forms and documents for loan applications taken after July 1. Please ensure you are using the correct forms based on the date of the loan application.
Follow-up Lender Training
This training will include additional information on the new Change Order Request Process, Combined Loan to Value Requirements, and answers to question that came up during the Lender Training sessions held earlier this month.