There’s a new post on Mdhousing’s blog, Feedback from Lenders is Helping the Maryland Mortgage Program Become More Flexible and Efficient.
Crownsville, MD – Recent changes in the Maryland Mortgage Program will make the state’s flagship homeownership program significantly more flexible and efficient, DHCD’s lender partners learned during a March 6 briefing.
Last year, DHCD launched a series of breakfast meetings to provide an ongoing dialogue with its lending partners (see a list of participating lenders) on how the Maryland Mortgage Program can be improved. Many of the new policies and procedures grew out of that feedback.
DHCD announced the state’s Downpayment and Settlement Expense Loan Program would remain at its currently high levels. With a maximum loan amount of $5,000, DSELP often is the critical difference in an eligible family’s ability to purchase a new home. Through the Maryland Mortgage Program, the O’Malley-Brown administration has helped more than 6,396 families achieve homeownership, totaling more than $1 billion.
Other new efficiencies include revisions in the home inspection policy and in the agency’s purchase agreement and fees. Rates can now change daily and DHCD will now be willing to purchase a loan after 105 days.
DHCD announced U.S. Bank, the fifth largest commercial bank in the country, is the new master servicer for the mortgage-backed securities program launched in 2011. The mortgage-backed security platform ensures a steady flow of resources for DHCD’s programs and services, said William Ariano Jr., deputy director of the Community Development Administration.
“If CDA was a private bank, we would be the largest community bank in the State of Maryland with over $3 billion in assets,” Ariano said.
DHCD’s Division of Credit Assurance is offering rates as low as one percent on many of the approximately 200 post foreclosure properties it owns throughout the state, Deputy Director Allen Cartwright told the group.
“These are excellent properties and the program gives a family a real good chance of getting into a home and staying the home, which is in keeping with DHCD’s mission,” Cartwright said.
Learn more about the Maryland Mortgage Program.