Title: NCP109 Native CDFI Practitioners Underwriting – Mortgage Lending
Dates: Month DD-DD, YYYY
Description: Native CDFI’s are involved in addressing housing needs for the communities they serve. Many have close relationships with tribal housing authorities and/or local housing coalitions/organizations working to improve housing conditions on or near reservation communities.
Native CDFI’s are offering or considering offering many types of home loan products. This includes down payment assistance programs, home rehabilitation/improvement loans, mortgage brokering, housing construction loans and mortgage lending. There are many established housing loan programs which a NCDFI can utilize to meet the home ownership needs of their communities or they can develop their own specialized home loan products.
A few Native CDFI’s are involved with housing development, purchasing land to build housing or buying older homes and rehabilitating to sell, or working with individual home buyers from construction to take-out mortgage.
Underwriting mortgage lending is unique. Loans are typically long-term, collateralized with real property and they’re specialized processes for lending on tribal trust lands. This training utilizes interactive case studies to learn housing lending. This course is designed as the third session in a three-session series.
This multi-day training will cover:
- Learning specialized home lending programs designed for Native Homeowners
- Review of mortgage terminology
- Understanding housing ratio calculations
- Understanding PITIA
- Review of Income types & calculating income
- Reviewing appraisals and property valuations
- Environmental risks/mitigants
- Reviewing a Title Report/Title Commitment
- Recognize and mitigate credit risk
- Understand how to risk rate
- Lending on trust lands
- Understanding Insurance (Homeowners, mortgage, flood)
- Review of documents in a home mortgage package
This training is optional for the Lending Specialization Track of the Native CDFI Practitioner Certification Program.