Program Updates for Lenders

Recent Montana Housing updates and program announcement memos for lenders are archived below.

November 27, 2023 MBOH Rate Decrease & Program Update Memo

We hope you all had a wonderful Thanksgiving Holiday!  More to be thankful for is a rate drop!  In response to mortgage rate decreases and an upcoming bond sale, we are doing what we can to benefit potential borrowers and lowering our rate.    

Effective immediately, November 27, 2023, the Regular Bond Program interest rate will decrease to 6.00%.  The rate for the down payment assistance programs (MBOH + and Bond Advantage) will drop to 6.25%, and the Set-aside rate will be adjusted to 5.75%. The current rates for the 80% Combined and VHLP loan programs will not be affected by this change.

Remember that MBOH products are now listed on the Optimal Blue platform! For lenders who use Optimal Blue, please work with them to include Montana Board of Housing mortgage products in your financing options.

Also recall that there is a production requirement for all Montana Housing Participating Lenders. A lender must originate at least one program loan per year, use of the MCC program will meet this requirement. For 2024, if this requirement has not been met by May 17th, your organization will be dropped as a lender and will have to reapply and be approved to become a Participating Lender to have access to Montana Housing loan programs and to be listed on our website.

There are recorded training modules available on our website, housing.mt.gov, for partners who may need a refresher. Julie Hope is available to provide more in-depth on-line training for staff who work with the MBOH products.

We’re all thankful to have you as partners this holiday season and throughout the year.  We appreciate your help in reaching Montana Homeowners wherever possible utilizing our program rates and DPA!

October 19, 2023 MBOH Rate Increase & Program Update Memo

In light of past Lender Online issues, please reach out to staff if any problems or questions come up.  If you can’t reach your usual contact, please continue trying – all messages have alternative emails or phone numbers you can utilize.

Once again, market environment causes us to increase our bond program rates another  .25%.

Effective at 5:00 PM, October 19, 2023, the Regular Bond Program interest rate will increase to 6.25%.  The rate for the down payment assistance programs (MBOH Plus and Bond Advantage) will be 6.50%, and the Set-aside rate will be adjusted to 6.00%.

The current rates for the 80% Combined and VHLP loan programs will not be affected by this change.

We’ve had lenders report that information and updates haven’t been uploaded to the Lender Online System.  Please be sure to hit the SUBMIT button on the page on which you’re working – otherwise, the changes will not be saved.

The information provided to Lender Online is only as good as what’s input.  Be sure to use ANNUAL income for borrowers to enact the safe guard that keeps over income loans from being accepted. 

Julie Hope is available to provide in person or on-line training for all new staff that will be working with the MBOH products or as a refresher for those needing it. 

Thank you for helping finance our friends and neighbors in Montana.  Have a wonderful Fall as we head into the holiday season!


October 3, 2023 MBOH Rate Increase & Program Update Memo

We apologize for the issues with Lender Online recently, we have been working on server upgrades. That work is complete and hopefully we do not continue to have problems.

We also apologize for the bad news of a .25% rate increase, but this is volatile rate environment and is affecting us all.  

Effective at 5:00 PM, October 3, 2023, the Regular Bond Program interest rate will increase to 6.00%.  The rate for the down payment assistance programs (MBOH Plus and Bond Advantage) will be 6.25%, and the Set-aside rate will be adjusted to 5.75%.

The current rates for the 80% Combined and VHLP loan programs will not be affected by this change.

A reminder that income limits are strictly enforced and if your borrowers are close to the max, please contact MT Housing staff to have the VOEs and all sources of income reviewed.  This and all MBOH Policies are set by the IRS, HUD or our Board and waivers cannot be granted.

Please be sure to correctly mark the Housing Type box on Lender Online.  If it’s a condo and you don’t see it listed on the Projects Section, please contact staff before you reserve with the project name and total number of units in the project.  An appraisal showing this information would be preferred.

Issues with proper hazard insurance, especially for manufactured homes, have come up a lot lately.  MBOH doesn’t allow for Actual Cash Value Binders.  We need Replacement Cost Policies regardless of the age of the home.  Please be sure proper insurance is provided or MBOH will need to refuse purchase. 

Julie Hope is available to provide in person or on-line training for all new staff that will be working with the MBOH products or as a refresher for those needing it. 

We hope you all had a wonderful Summer and are looking forward to the holiday season on the way. Thank you for your continued partnership!


August 18, 2023 MBOH Rate Increase & Program Update Memo

I’m sure it’s no surprise that we need to increase rates again.  Trying to keep it as painless as possible with just another small increase of 1/8%.  

Effective at Noon, August 18, 2023, the Regular Bond Program interest rate will increase to 5.75%.  The rate for the down payment assistance programs (MBOH Plus and Bond Advantage) will be 6.00%, and the Set-aside rate will be adjusted to 5.50%.

The current rates for the 80% Combined and VHLP loan programs will not be affected by this change.

A reminder that income limits are strictly enforced and if your borrowers are even close to the max, please contact MT Housing staff to have the VOEs and all sources of income reviewed.

We’ve had some loan files submitted where the borrower has taken a homebuyer ed (HBE) class named HomeView through FNMA.  This class has not been approved and is not accepted as the HBE requirement by Montana Housing at this time.  Please continue to work with NeighborWorks and your local approved HBE providers to fulfill that need.

Remember that Julie Hope is available to provide in person or on-line training for all new staff that will be working with the MBOH products or as a refresher for those needing it. 

Thank you for your continued partnership.  Staff is so pleased that we’re able to reach more and more Montana Homebuyers with your help!  We couldn’t do it without you.


August 8, 2023  MBOH Rate Increase & Program Update Memo

As you know Montana Housing financing is made available through the issuance of tax-exempt bonds. Earlier this year, we were able to secure financing at very attractive rates and thanks to your continued participation in our programs, we were able to provide $40 million dollars to first time homebuyers around the state.  As we look to the market for a new bond issue, rates have increased and will no longer support a lending rate of 5.5%.

While we are trying to keep increases to a minimum, we do have to adjust our current lending rates. Effective at 5:00, August 8, 2023, the Regular Bond Program interest rate will increase to 5.625%.  The rate for the down payment assistance programs (MBOH Plus and Bond Advantage) will be 5.875%, and the Set-aside rate will be adjusted to 5.375%.

The current rates for the 80% Combined and VHLP loan programs will not be affected by this change.

A reminder that income limits are strictly enforced and if your borrowers are even close to the max, please contact MT Housing staff to have the VOEs and all sources of income reviewed.

Another program restriction being overlooked is dual kitchens and extra rooms in the home, or extra living quarters on the properties we are being asked to finance.  If those areas are possible rentals, they can’t be financed with MBOH funds so we can’t purchase those loans.  Please review any questionable homes with staff before reserving funds or closing loans on such homes. 

Remember that Julie Hope is available to provide in person or on-line training for all new staff that will be working with the MBOH products or as a refresher for those needing it. 

We hope you’re having a wonderful Summer and appreciate your help making our programs a success!


July 10, 2023 MBOH Plus Program Adjustments and Reminders

Today, July 10, 2023, our Board elected to adjust the parameters on the MBOH + Deferred DPA Program provided by Montana Housing.  Starting immediately:

  1. Income limits will be $80,000 for a family of 1 or 2 and $90,000 for a family with 3 or more occupants.
  2. DTI limit has been raised to 45%.
  3. The amount available for the MBOH + seconds remains at 5% of sales price, maximum $15,000. This is a 0% deferred DPA loan that is due upon refinance/payoff of first loan.
  4. Minimum credit scores remain at 620 and homebuyer education is required.
  5. Borrower contribution remains at $1,000 which can be gifted.

We continue to see loans reserved that are over income for our programs. Please contact staff to help determine household income if your borrower(s) are close to the limit. Household income is calculated differently than qualifying income.

Also remember the MT Veterans Home Loan Program balance is updated every month on the Lender Online site.  This usually happens at the beginning of the month, but not at a specific time so please visit the site often to determine if there is a balance available to assist your Montana Veteran borrowers. 

There has been some confusion with the Board’s Targeted Areas, please review them, and know where they are. Remember that Deer Lodge is not in Deer Lodge County and some areas of Great Falls are not actually in the targeted area of the City of Great Falls.  Verify before utilizing the targeted area parameters, no exceptions can be made.

The lender annual recertification document deadline is July 31st .  Please reach out to Charlie if you have any questions or require documents be re-sent, we are happy to work with you in any way needed.

We hope you’re having a wonderful summer and thank you for thinking of us whenever you have borrowers that fit into our programs. 


May 25, 2023 Income and Purchase Price Limit Adjustments

The IRS has released revenue procedures that establish new Income and Purchase Price Limits for Bond programs, and on May 23, our Board approved new limits for MBOH programs. The updated income and purchase price limits can be found in the attached quick reference guide and on the MT Housing website, housing.mt.gov. Recapture tax forms have been updated; be sure you are using the most recent documents for new loans.

Regarding purchase price limits, they were very generous, we saw increases of 23% across the state. Incomes limits saw more modest increases, up to 10%, so there is a disconnect between the prices allowed and what the borrower can afford in this rate environment.  Recently, we have seen an uptick in files where the borrowers are over income. Please be sure that your borrowers meet the Board’s income requirements when originating MBOH loans. Staff are happy to review income prior to loans being reserved.

With new purchase price limits being set, the maximum loan amount allowed in the Veteran’s Home Loan Program (VHLP) also increases to $457,117.  The MT Veteran’s Home Loan Program has limited funds available – updates are posted monthly.

Three new lenders were approved at the Board meeting as well.  We welcome them to the MT Housing Family. 

A few administrative issues: We’ve seen lenders charging too much on the DPA loans provided through MBOH + and the Bond Advantage Programs.  Remember the allowed fee is $175.  Also, on all first mortgages, please keep the origination fee at or below 1.75%, no discount points and keep other fees affordable for our targeted market.  As always, NO CASH BACK!

Targeted areas, especially City of Great Falls, need to be determined before reservations are made.  Homes must be located within the city limits.

Training is being offered around the state, in conjunction with other affordable housing programs like NeighborWorks, HRDCs, and Rural Development.  Upcoming sessions are in Havre on June 7 and Helena June 8.  Contact Hannah Tester and NeighborWorks for more information. 


February 3, 2023 MBOH Rate Decrease & Program Update Memo

We hope your New Year is going well!  In response to mortgage rate decreases, we are doing what we can to benefit potential borrowers, so we are lowering our rate as well!    

Effective immediately, February 3, 2023, the Regular Bond Program interest rate will decrease to 5.50%.  The rate for the down payment assistance programs (MBOH + and Bond Advantage) will drop to 5.75%, and the Set-aside rate will be adjusted to 5.25%. The current rates for the 80% Combined and VHLP loan programs will not be affected by this change.

We are happy to announce that MBOH products are now listed on the Optimal Blue platform! For lenders who use Optimal Blue, please work with them to include Montana Board of Housing mortgage products in your financing options.

Remember there is a production requirement for all Montana Housing Participating Lenders. A lender must originate at least one program loan per year, use of the MCC program will meet this requirement. For 2023, if this requirement has not been met by May 17th, your organization will be dropped as a lender and will have to reapply and be approved to become a Participating Lender to have access to Montana Housing loan programs and to be listed on our website.

As a place holder, mark your calendars for the annual Housing Conference which will be held in Helena this year, May 15 – 17.  Watch for more information on how to participate.


January 4. 2023 MT Housing Purchase Price Limit Update

Happy New Year!  With the release of the 2023 FHA Loan Limits, Montana Housing has been able to update the Purchase Price Limits for the Board’s programs, which also increases the loan limit of the MT Veterans’ Home Loan Program. These limits are effective immediately, and are posted on our website and in lender online. They will be in effect until the IRS releases a new revenue procedure later this spring, at which time they could be adjusted up or down again.

Attached is the Quick Reference Guide which includes the new purchase price limits and VHLP loan limit of $372,655. Per the Revenue Procedure currently in effect, we are not able to increase income limits at this time, so please be sure that your borrowers meet the Board’s income limit requirements when originating a loan in our programs. New IRS income limit guidance will be released later this spring.    

Montana Housing’s interest rate will remain at 5.75% for loans without DPA, 6.00% for the down payment assistance programs (MBOH + and Bond Advantage), and the Set-aside rate at 5.50%. The current rates for the 80% Combined and VHLP loan programs are posted on our website.

Please remember to complete the endorsements on your notes (1st and 2nd) for security and convenience.  We get many notes where the ‘to line’ is blank and we must write in Montana Board of Housing/Investments, this is not a very secure way to transfer notes. 

Staff hopes to see an increase in loan activity now that limits have increased and are happy to help in any way with training, questions, or loan scenarios.  Feel free to contact us any time and have a wonderful 2023!!

 

December 6, 2022 MBOH Rate Decrease & Program Update Memo

Happy Holidays!  Because of a favorable bond deal, we’re able to offer better rates!    

Effective immediately, December 6, 2022, the Regular Bond Program interest rate will decrease to 5.75%.  The rate for the down payment assistance programs (MBOH + and Bond Advantage) will drop to 6.00%, and the Set-aside rate will be adjusted to 5.50%. The current rates for the 80% Combined and VHLP loan programs will not be affected by this change.

Another announcement is that we’re happy to welcome a new staff member.  Rebecca Holland has joined us to run our Reverse Annuity Mortgage Program.  This program was previously offered by the multi-family program and we’re glad to take on the opportunity to expand the offerings as much as possible.  

Also, remember that new policy requires all participants to sell MBOH at least one loan a year.  This isn’t based on the calendar year so you still have a few months to get those reservations in.

We wish you all a wonderful holiday season!!


October 24, 2022 MBOH Rate Increase & Program Update Memo

Sorry to make it a gloomy Monday but we’re announcing what everyone knew was coming.  MBOH interest rates must be increased again.  

Effective immediately, October 24, 2022, the Regular Bond Program interest rate will increase to 6.00%.  The rate for the down payment assistance programs (MBOH + and Bond Advantage) will rise to 6.25%, and the Set-aside rate will be adjusted to 5.75%. The current rates for the 80% Combined and VHLP loan programs will not be affected by this change.

A reminder that the maximum loan amount allowed by the Board that is listed in the Purchase & Servicing Guide has been updated to further clarify: ‘The maximum loan amount the borrowers can finance will be the purchase price plus the FHA upfront premium, the VA guarantee fee, the RD guarantee fee or the PMI upfront premium to the extent permitted by such insurer or guarantor, as supported by the appraised value.

Be sure to utilize the forms available on the Lender On Line System.  We’ve received outdated forms that must have been copied from earlier versions available on our on-line system.  Please discontinue this practice if it applies to you.


October 17, 2022 DPA Program Update Memo

Following today’s Board meeting, we have some good news! 

To encourage better utilization of our Down Payment Assistance (DPA) Programs, we requested a change that was approved by the Board.

Effective immediately:

  • The maximum loan amount for both the Bond Advantage and MBOH Plus DPA programs is now $15,000.

Other actions taken by the Board at the meeting include the approval of a new MCC Resolution which will allow us to offer the MCC program after the end of 2022, and the addition of two new participating lenders. We welcome First Colony Mortgage and Guaranteed Rate Inc. 

We truly appreciate all our partners and their continued support of MBOH programs which help Montanans fulfill their homeownership dreams.