A DCA Lender must:

1. be a legally organized and properly licensed business entity with a office located in the State of Georgia or in a State contiguous to Georgia; different branch offices of the same legal entity will not qualify as individual Lenders but different wholly owned subsidiaries may qualify as individual Lenders if they constitute separate legal entities;
2. have as a principal purpose the origination of secured single family residential mortgage loans;
3. be approved as (i) an FHA Direct Endorsement lender and VA lender, and (ii) be a federally regulated financial institution or a state or federal agency;
4. be approved as (i) a Fannie Mae, Freddie Mac, or Ginnie Mae Issuer, or (ii) be a federally regulated financial institution, or a state or federal agency;
5. demonstrate a proven ability to originate mortgage loans for sale in the secondary market;
6. maintain quality control and management systems to evaluate and monitor the quality of loan production and compliance with DCA procedures;
7. have in effect and maintain fidelity bond and errors and omissions coverage in amounts equal to that established for Fannie Mae Seller/Servicers and agree to any modifications needed to meet our requirements;
8. have a minimum net worth of $2,500,000; and
9. document a HUD Neighborhood Watch compare ratio for Georgia of less than 125%. If there are no Georgia loans, then a compare ratio of 125% of national production will be considered.

A Lender Application package must be completed and returned to DCA for review and approval. The application package must contain:

1. a completed Lender Application form and all required attachments;
2. two (2) original Loan Seller Agreements executed by a duly authorized senior officer;
3. two (2) original Loan Servicing Release Agreements executed by a duly authorized senior officer;
4. the three (3) most recent year-end financial statements available, certified by an independent certified public accountant;
5. evidence of fidelity bond and errors and omissions coverage in amounts equal to that established for Fannie Mae Seller/Servicers;
6. a copy of the Lender’s Quality Control Plan.  If applicable, a 203(k) Quality Control Plan must also be provided;
7. a complete O.C.G.A. §50-36-1(e)(2) Affidavit executed by a duly authorized officer and a copy of one verifiable documentation of citizenship;
8. a Corporate Resolution designating the officers or individuals authorized to execute assignments and other legal documents; and
9. an Original Limited Power of Attorney executed by a duly authorized senior officer.

Upon receipt of a complete application package, we will analyze the Lender’s ability to originate Georgia Dream Loans in compliance with our procedures and requirements. Upon completion of our review, we will send notification by email of the approval or denial of the application.

Information and/or documentation submitted to DCA as a part of the application process may be subject to public disclosure.

The Loan Seller Agreement between Lender and DCA:

1. sets forth the requirements with which Lender must comply in order to maintain its status as a DCA Lender;
2. provides the terms and conditions for the sale of Georgia Dream Loans;
3. incorporates this Seller Guide by reference; and
4. incorporates DCA’s Fair Housing Statement and requires DCA Lenders to maintain policies prohibiting discrimination based on race, color, sex, religion, national origin, familial status, disability or age.  It also requires DCA Lenders to comply with all federal and state fair housing and lending laws, rules, regulations, orders, and provisions.

The Lender performs origination and selling functions under the Loan Seller Agreement as an independent contractor and principal, not as an agent or representative of GHFA or DCA.

Lender’s duties and responsibilities include but are not limited to the following:

1. Ensuring compliance with the requirements set forth in this Seller Guide and the Loan Seller Agreement;
2. Ensuring Georgia Dream Loans meet Program requirements and all applicable mortgage insurer requirements;
3. Having adequately trained staff and facilities, including and not limited to lender’s management and non-management staff  to originate and sell quality Georgia Dream Loans on a timely basis, including but not limited to:
   1. Assisting each loan applicant with the requirements of the Program and advising of the status of the loan application;
   2. Reserving, underwriting and submitting completely approved Georgia Dream Loans to DCA for compliance underwriting approval before closing:
      1. DCA requires a fully underwritten and approved loan with the only remaining Lender condition before preparing closing documents being the Firm Commitment from DCA, and
      2. Evidence of approval from any additional down-payment assistance related entities with all terms, and
      3. DCA requires that only the Lender’s designated Program Contact, Lender’s underwriter, or Lender’s underwriting leadership staff may contact DCA staff after a loan has been submitted into the Lender Portal, and
      4. The Lender will be responsible for responding to any inquiries from, but not limited to realtors (selling and/or listing agents), and/or any third-parties involved in the services rendered to obtain the mortgage,
   3. Funding and closing of the Georgia Dream Loans;
   4. If applicable, submitting required documents to the Mortgage Insurer or GSE to obtain mortgage insurance and arranging for the transfer of the insurance to GHFA;
4. Lenders must utilize and complete the checklists provided within this Seller Guide with files delivered in the checklist order; 
5. Lender’s first file submission must be complete and when there are more than two (2) subsequent resubmissions of omitted documents, DCA will reconsider participation in the program to include training and including, but not limited to termination;
6. Ensuring staff are knowledgeable in all aspects of loan origination and selling;
7. Having fully documented written procedures and quality control measures to determine that the procedures are being followed;
8. Protecting GHFA and DCA against fraud, misrepresentation or negligence by any parties involved in the origination process; and
9. Designating a Program Contact as described in this Chapter.

105.1 Electronic Media

If Lender elects to transfer a paper copy of this Seller Guide into electronic format, the Lender expressly warrants that all such electronic Seller Guide forms and material used in connection with Georgia Dream Loans shall have only minor variations in format.

Lenders are strongly encouraged to use DCA specific forms and integrate them into their Loan Origination Systems for efficiency purposes to include electronic signatures.  At the Lender’s request, DCA will provide Georgia Dream Documents in multiple formats for integration into a loan origination system or document preparation system to allow for auto filling.  Georgia Dream documents which have been signed with borrower’s electronic signature must be accompanied by the borrower(s) Electronic Signature Authorization. If unable to provide, all forms must be wet signed.

Acceptable minor format variations include:

1. change in type font;
2. change in type size, so long as the document is easily readable; and
3. absence of the form borders.

Unacceptable format variations include:

1. absence of Georgia Dream Homeownership Program form number;
2. absence of Georgia Dream Homeownership Program form version designation; and
3. any change in content, including substitution, omission or addition of one (1) or more words.

You should contact us with any questions about reproduction of the Seller Guide or its forms before distribution of these documents in conjunction with the origination of Georgia Dream Loans.

Lenders must send written notice to DCA of any major organizational changes contemplated, including, but not limited to:  

1. resignation or replacement of any senior management personnel;
2. mergers, consolidations or reorganizations;
3. changes in ownership of over 5% by whatever means;
4. a change in corporate name;
5. a change in a savings and loan association's charter from federal to state or vice versa or change to a banking association; and
6. a change in your financial position which would render you unable to honor the Loan Seller Agreement.

Lenders must notify the DCA’s Program Specialist by email of any changes in primary business office address, email or wiring instructions within five (5) Business Days of the change. On a periodic basis, Lender may be asked to verify addresses, telephone numbers, primary contacts and email addresses.

Lenders must release the servicing rights on Georgia Dream Loans to DCA’s servicing division, State Home Mortgage. Servicing rights released must be transferred immediately after closing in accordance with this Guide.

The Lender must designate one (1) employee to serve as the Program Contact for the purpose of participating in the Program. The Program Contact should be an individual who can fulfill the responsibilities outlined in this Section on a timely and informed basis.

The Program Contact is expected to disseminate information to the appropriate persons involved with the origination, underwriting, closing and servicing associated with Georgia Dream Loans. The Program Contact should inform all appropriate person to sign up for the weekly Georgia Dream rate sheet.

While specific questions related to underwriting, reservations, purchase or final documents may be directed to other Lender staff, the Program Contact is expected to resolve problems, answer questions or represent Lender’s position on various issues related to Lender’s participation in the Program. 

The Program Contact must be designated at the time of lender application. Lender must notify DCA’s Program Specialist by email within five (5) Business Days of a decision to designate a new Program Contact due to change in staff or change in staff responsibilities. Failure to provide this notification may result in immediate limited participation as described in this Chapter and may result in additional sanctions.

For reasons including but not limited to the following, Lender must repurchase any Loan sold to GHFA by the 15th Business Day following our demand in accordance with the Loan Seller Agreement:

1. Any of the warranties contained in the forms and certifications required by the Seller Guide are deemed untrue or misleading in any material respect by DCA;
2. the Loan is found to be in violation of any applicable Program, Mortgage Insurer, or GSE requirements; 
3. Lender fails to deliver any required documents and/or certifications;
4. Lender takes action which impairs GHFA’s security and/or causes the Loan to no longer meet the requirements of the Seller Guide, either before or after the sale of the Loan to GHFA and execution of the Lender Certification (Form SF-60); and/or
5. Lender fails to take action that protects GHFA’s security and/or causes the Loan to no longer meet the requirements of the Seller Guide, either before or after the sale of the Loan to GHFA.
6. the Loan has an early payment default of any payments within the first six (6) months of the closing date including repayment of the Servicing Release Premium

In the event the Lender is required to repurchase a Loan, the amount due to DCA on GHFA’s behalf will be governed by the terms of the most recently executed Loan Seller Agreement.

GHFA/DCA will not require a repurchase for loans with defects discovered more than 36 months after the purchase date of the loan, except for cases of fraud, misrepresentation, or material violations of loan eligibility requirements. After the 36-month period, repurchase is not required for minor defects unless the defect significantly impacts the loan’s performance or eligibility.

DCA retains the right to either limit or terminate the Lender’s participation in the Program for (i) any failure to abide by the terms of the Loan Seller Agreement or this Guide, (ii) any untrue or materially misleading statement in the Lender Application or Lender Application Renewal forms or attachments thereto, (iii) lack of loan participation, (iv) named as a defendant in any pending litigation.

110.1 Limited Participation 

Limited participation means the Lender will be unable to make a reservation until the specific violations which caused the limited participation have been resolved to our satisfaction. Such violations include but are not limited to: 

1. loss of mortgage insurer certification;
2. failure to maintain a branch in Georgia or contiguous state;
3. outstanding repurchases of loans or outstanding final documents; or
4. excessive HUD or GHFA delinquency ratios. 

Limited participation does not relieve the Lender of any responsibilities under the Loan Seller Agreement or this Guide. At the conclusion of the period of limited participation, DCA will notify Lender either (i) when reservations may resume, or (ii) the Lender’s participation in the Program has been terminated.

110.2 Termination

Termination means Lender will no longer be allowed to participate in the Program and the Lender’s name will be removed from all DCA materials intended for the public as soon as practical. The decision to terminate participation will be based upon an evaluation of the severity and magnitude of the violation and will be solely within DCA’s discretion. After termination, a Lender which has taken the necessary steps to prevent a reoccurrence of the violation that led to the termination may submit a request to reinstate participation to DCA’s Program Specialist with an explanation of the steps taken. After review, we will notify you of our decision.

At the time of Lender renewal, if the Lender has less than four loans purchased by Georgia Dream from the previous year, the Lender will be terminated.

110.3 Notification and Appeal

The Program Contact will be notified of limited participation or termination via email. Lenders will have 15 Business Days from the date of the notice to appeal the action to DCA’s Program Manager of Homeownership.  The appeal must (i) demonstrate why Lender feels the action was unwarranted, (ii) describe any measures underway to correct the deficiencies, and (iii) demonstrate measurable progress toward correcting the deficiencies. DCA may, in our sole discretion, schedule an informal conference with Lender to gather information related to the limited participation or termination.  A decision will be made within 15 Business Days of receipt of the appeal.

Lender Portal is DCA’s internet-based system that allows Lenders to enter Reservations, complete and print DCA required forms, check the status of Reservations, submit electronic documents for review and access various reports. Lenders are required to utilize Lender Portal to reserve funds with DCA.  Anyone utilizing Lender Portal must be assigned an individual username and password.

Lender is responsible for ensuring each Loan submitted to DCA complies with our Program requirements and the requirements of the Mortgage Insurer as set forth in the Loan Seller Agreement and this Seller Guide.

Even if the loan is purchased based upon DCA’s review of the underwriting package, DCA reserves the right to require Lender to repurchase the Loan if the Loan does not comply with the applicable Program requirements and/or the requirements of the Mortgage Insurer as set forth in the Loan Seller Agreement and/or this Guide.