Lender Guidelines: 7.2 Reservation, Compliance and Closing Steps
Lender Guidelines: 7.2 Reservation, Compliance and Closing Steps
See this Step by Step Procedures document to help with the details of the loan process. Below is an overview of the overall process.
Step 1: Loan Registration, Lock or Float and Download Documents
For a complete step-by-step process, please refer to the Step-by-Step Loan Registration & TSAHC Approval Procedures guide found on TSAHC’s website at https://www. tsahc.org/lenders/resources-for-lenders#Income_and_Guidelines and the Lender Portal at www.bayviewtpo.com.
Please note, the TSAHC Lender Portal now allows registration of the loan without locking the interest rate. Upon registration, you will have the option to either float or lock. If you choose to float the interest rate, the DPA product may or may not be available at the time of lock. To start the loan registration process and to download the TSAHC specific documents, login to the TSAHC Lender Portal at www.bayviewtpo.com.
At the time the Lender registers a mortgage loan in the Lender Portal, the Lender must have a mortgage loan application from a borrower, and the Lender must have made a preliminary determination that the borrower qualifies for the program(s). In addition, at the time of locking the interest rate the borrower must have furnished the Lender with a property sales contract or construction contract executed by the borrower and the seller or builder of a residence.
Step 2: Underwrite the Mortgage Loan
The Lender underwrites the loan in-house following the relevant agency guidelines on FHA, VA, USDA-RHS, or Conventional (Freddie Mac or Fannie Mae), including TSAHC overlays provided in these Guidelines and any overlays provided by Lakeview.
Step 3: Pre-Closing Compliance Package Submission
- The next step is to complete and submit the Pre-Closing Compliance Package via the Lender Portal at least 5 calendar days prior to the anticipated closing date of your loan.
- Login to the Lender Portal at www.bayviewtpo.com.
- Select and download the Pre-Closing Checklist. Ensure all documents listed on the checklist are uploaded AND submitted [JL1] via the Lender Portal.
- All documents listed on the Pre-Closing Checklist must be uploaded and the loan must be locked prior to the loan being reviewed by TSAHC for approval.
- Once the Pre-Closing Compliance Package has been approved/committed by TSAHC, the Lender may re-enter the Lender Portal and print out a TSAHC Commitment Letter.
- To prepare for closing, select and download the TSAHC closing documents [JL2] to ensure all documents are executed at closing.
Step 4: Funding of Down Payment Assistance (DPA)
This step is for Non-Bond DPA Loans (with or without an MCC) and Bond DPA Loans. Provided the Pre-Closing Compliance Package is approved by TSAHC, the Lender will advance the down payment assistance funds at loan closing. Lenders will be reimbursed by Lakeview for the funds advanced when the mortgage loan is purchased by Lakeview.
- If a prepayment of a newly originated mortgage loan is received by the originating Lender prior to the sale of such mortgage loan to Lakeview, TSAHC will reimburse the Lender directly for the original funding of the down payment assistance, but only after the Lender pays a non-delivery fee to TSAHC equal to the amount of the down payment assistance.
- If the mortgage loan is prepaid after Lakeview purchases such mortgage loan from the Lender and before Lakeview sells the related mortgage-backed security (i.e., a security backed in part by such mortgage loan), TSAHC will reimburse Lakeview for the down payment assistance, but prior to such reimbursement, the Lender shall pay to TSAHC a non-delivery fee equal to the amount of the down payment assistance.
Step 5: TSAHC Closing Documents Submission
- TSAHC closing documents will no longer be submitted directly to TSAHC for review. All TSAHC closing documents will be delivered to Lakeview with the loan closing package for loan purchase review by Lakeview. See step 6.
- The loan will not be purchased by Lakeview, and/or the MCC will not be issued to the borrower, until the TSAHC closing documents have been approved by Lakeview.
Step 6: Loan Purchase
- Upon closing, the Lender will deliver TSAHC closing documents and the mortgage loan closing package to Lakeview for purchase. Delivery and funding information for the mortgage loan file may be found on the Lakeview Seller Portal at www.lakeviewcorrespondent.com.
- TSAHC closing documents and the mortgage loan closing package must be delivered to Lakeview promptly after closing and must be purchased by Lakeview within 60 calendar days of locking the interest rate.
- If the loan is not eligible for purchase within the 60-day purchase period, the Lender may request a 15, 30 or 45-day extension at a cost of 12.5 bps per 15-day increment (0.125, 0.250 or 0.375, respectively).
- This fee will be deducted from the Lender’s proceeds at the time the loan is purchased by Lakeview.
- A lock extension may be requested by contacting Lakeview Commitment Desk for assistance at 855-Lakeview Opt. 1.
- In the event a loan is not purchased by the later of the 60th day after locking the interest rate or the last day of any extension that was granted, TSAHC will reimburse the Lender for the down payment assistance funds advanced by the lender at loan closing, but only after the payment by the Lender to TSAHC of a non-delivery fee equal to such down payment assistance.
- Once all TSAHC and Lakeview conditions have been met, the loan will be purchased by Lakeview.
- Lenders will be reimbursed by Lakeview the amount of down payment assistance advanced when the mortgage loan is purchased by Lakeview.
For access to the full TSAHC DPA & MCC Guidelines, please click here.