National Council of State Housing Finance Agencies Announces Affordable Homeownership Lender Toolkit
The National Council of State Housing Finance Agencies, with support from the Mortgage Bankers Association and other industry trade groups, announced availability of the HFA1 Affordable Homeownership Lender Toolkit, a new online resource that will enable home mortgage lenders to partner more efficiently with state housing finance agencies in providing mortgage loans and down payment assistance to lower-income home buyers.
The HFA1 Lender Toolkit identifies the key features of HFA homeownership programs that are most important for lenders in determining how and where to partner with the agencies.
Through a multi-year process with leading members of MBA and other industry stakeholders, a group of 13 HFAs reduced or eliminated loan “overlays,” created a common loan delivery checklist to reduce operational differences, and aligned their affordable mortgage and down payment assistance requirements in numerous areas. These moves will save time and money throughout the mortgage process, generating cost savings for borrowers.
The HFA1 Lender Toolkit identifies key features of HFA homeownership programs that are most important for lenders in determining how and where to partner with the agencies. Gerald Hunter, president of the Idaho Housing and Finance Association and co-chair of NCSHA’s Homeownership Task Force, said its development reflects substantial progress by a growing number of agencies to align elements of their programs to support more efficient participation in them by regional and national lenders.
“The HFA1 Lender Toolkit is the most significant effort yet by state housing finance agencies to collectively assess opportunities to make their homeownership programs easier for mortgage lenders to participate in for the purpose of expanding affordable homeownership opportunities for lower-income Americans,” Hunter said.
“I commend the MBA members and state housing finance agencies that have worked hard for the past two years to establish greater efficiencies and new tools to expand affordable mortgages and down payment assistance to people and places that need it,” said MBA President and CEO Bob Broeksmit, CMB.
The toolkit complements recent efforts by Fannie Mae and Freddie Mac to encourage efficiencies and cost savings in mortgage offerings serving lower-income borrowers and actions by Lakeview Loan Servicing LLC, and US Bank to augment HFA homeownership programs in a higher interest rate environment. Initial funding for the development of the toolkit was provided by Wells Fargo. Specialty Mortgage Product Solutions provided technical support.
Programs from HFAs in the following states are featured in the toolkit: Alabama, Arizona, California, Colorado, Idaho, Illinois, Iowa, Massachusetts, New Mexico, South Dakota, Tennessee, Utah, and Washington. HFAs in other states are expected to join later this year.
The MBA/NCSHA partnership began in 2019, to explore a strengthened federal policy framework for affordable and equitable homeownership opportunities. In May 2021, MBA and NCSHA announced a partnership, H-FAST, to increase affordable mortgage financing and down payment assistance through new and expanded partnerships between state HFAs and mortgage originators.
“MBA and NCSHA have worked closely for years on housing finance reform, down payment assistance expansion, origination and servicing issues, emergency homeowner assistance, and the urgent imperative to address racial disparities through new federal initiatives,” said NCSHA Executive Director Stockton Williams.
Learn more about the HFA1 Affordable Homeownership Lender Toolkit at https://www.ncsha.org/about-us/about-hfas/hfa1-affordable-homeownership-lender-toolkit/.
