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How do I become a participating lender?
Contact Dena Sherrill, REI, Housing Program Manager at 1-800-658-2823.
How much assistance can the borrower receive?
Minimum of 5% and maximum of 7% of the first loan amount.
How is the second mortgage structured?
As a repayable second mortgage at 8% interest. The loan is amortized over a 20 year period. The borrower will only receive one payment coupon from CitiMortgage with both loans listed, resulting in only 1 mortgage payment.
Are there any pre-payment penalties on the second mortgage?
No, the second mortgage can be pre-paid at any time. The loan payment coupon will have a loan number for the first mortgage and a loan number for the second mortgage. If the borrower pays off the second mortgage, they need to make sure that the correct loan number is on their check.
What is the amount of assistance based on?
If you are doing a 100% loan, the amount of assistance is based on the sales price. If you are doing a loan that is below 100% you will base the assistance on the loan amount. Please remember that you cannot go over 105% CLTV on certain loan products, please refer to the loan program guidelines for the allowable maximum CLTV.
Does the borrower have to be a first-time homebuyer?
No, REI does not have a first-time homebuyer requirement. However, some loan programs do not allow the borrower to own other property. You will be required to follow the loan program guidelines.
Does the borrower have to complete two loan applications, one for the first mortgage and one for the second?
No, only one application is needed for both loans. However, you will have to prepare a separate Good Faith Estimate and Truth-in-Lending statement for both loans.
Do I have to complete separate HUD-1 Statements for the first and the second mortgage?
No, one will be sufficient for both.
Do we have a separate Title Policy for the second mortgage?
No, you will only need one title policy that includes both loan amounts.
How is the second mortgage entered in DU?
The second mortgage is entered as a Community Second and shown as housing debt. In the details of transaction, the second mortgage should be entered as subordinate financing.
How do I register a loan?
The loan registration forms for CitiMortgage correspondent lenders can be found on our website at www.ruralenterprises.com/docs/citi_form.pdf. If utilizing American Southwest Mortgage, the loan registration form can be found at www.ruralenterprises.com/docs/amsw_form.pdf. Unfortunately, we cannot lock these loans online.
Are there any penalties to the lender for withdrawing a loan?
All commitments are considered “Best Efforts” and are not subject to a pair-off provided the Lender does not close the loan. If the lender closes a loan which has been locked with CitiMortgage, the commitment then becomes “Mandatory”.
What is the process to withdraw a loan from the program?
Send a request by email to scp.dallas@citigroup.com or call (800)967-2205 option 1 #0.
What are the borrower’s mortgage insurance requirements for this program?
The standard mortgage insurance options apply to this program. You should receive the same pricing on this program as you would receive on a regular loan. You might visit with your MI representative to see if they have special products that coincide well with this program such as Split Premium or Up-Front Premium using second mortgage funds.
If I have additional questions, who can I call?
Dena Sherrill, REI 1-800-658-2823 or CitiMortgage Customer Service at 1-800-784-8396 option 1
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