Seller/Servicer Memorandum 19-01

Date: March 29, 2019

SELLING GUIDE REVISIONS: CONTACT UNDERWRITING
(Anchorage Only: 907-330-8400/Outside Anchorage: 888-854-3884)

Revised Forms: PRG-43, PRG-44, PRG-61, PUR-85 and UND-9

Formatting only changes have been made to the PRG-43, PRG-44, and PRG-61.

We’ve updated information on the PUR-85 and UND-9. The PUR-85 has been amended to include an “Admin Fee” charged by the lender. The “$0 if gift” has been removed from the UND-9.

As a point of clarification, AHFC will allow refrigerators to be listed on the Purchase and Sales Agreement except on our Tax Exempt and Veteran’s Mortgage Programs.

If the property is assumed to be legal non-conforming, AHFC will need the appropriate documentation from the Municipality. AHFC will review property situations on a case-by-case basis.

Commitment Changes
(Section 1005.07)

Lenders are now allowed to cancel their AHFC commitment and immediately re-lock their loan without waiting for the date of the initial expiration. The cancelled commitment fee will still be applied and a new reservation/commitment fee will be in effect going forward.

Hazard Insurance Deductible
(Section 1003.09.A)

The deductible has been increased and now may not exceed the higher of $1,000 or 2% of the coverage amount.

Property Inspection Waiver
(Section 2000.05.E)

On Single Family Residences and condominiums, AHFC will allow the Property Inspection Waiver (PIW) on loans that receive the PIW option through the automated approval system (AUS). When using the PIW, follow AUS guidelines for any additional inspections that may be required. If the PIW option is available on a property in one of our AHFC Rural communities, please contact AHFC underwriting for prior approval to use the PIW.

Accessory Dwelling Rents
(Section 4003.05.B.1)

AHFC will allow rents from accessory dwelling units to be used for qualifying income. All other program guidelines still apply. If the property is new construction, rents are not allowed on TEP or VMP.

Rural Non-Owner Occupied Loan Program
(Section 5005.02)

When a LLC is the purchaser on a transaction, the LLC and members of the LLC must sign the Note.

Streamline Refinance
(Section 7004.04.A and 7004.05.F)

Streamline refinances will no longer be limited to a maximum of $5000 in closing costs. Now all usual and customary closing costs (excluding buy downs) may be included in the loan amount as long as the loan amount meets the program LTV requirements.

Renovation Options
(Section 7010.08 and 7010.09.A)

The individual completing the renovation work can be a licensed contractor or an individual having experience and knowledge to complete such work. This must be documented in the Lender’s loan file.

AHFC only requires one recorded PUR-101 on properties constructed after December 31, 1991, and one recorded PUR-102 or CO on properties built on or after July 1, 1992. An additional PUR-101 and PUR-102 will not be required on a new addition or a rebuild on the same foundation.

GUIDE/APPENDIX REVISIONS: CONTACT UNDERWRITING

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