MHP has made homeownership possible for over 17,000 low- and moderate-income homebuyers since 1991 by offering the SoftSecond Loan Program through participating lenders. SoftSecond will continue to be available through the end of 2013 while MHP transitions to a revamped and simpler product called ONE Mortgage. The ONE Mortgage Program was officially unveiled in June by Governor Deval Patrick. Since then 19 lenders have committed to the program with more joining every week.
Like SoftSecond, ONE offers first-time homebuyers a discounted fixed interest rate and a low minimum down payment and does not require costly private mortgage insurance. The new ONE Mortgage Program is also good news for participating lenders. By shifting from a first and second mortgage structure to a single mortgage, the program is simpler to explain and administer.
Thirteen lenders have been trained on the new program's guidelines and systems and are already originating loans: Bay State Savings, Blue Hills Bank, Cambridge Trust, Chelsea Bank, Clinton Savings Bank, Dedham Savings Bank, Eastern Bank, Enterprise Bank, First Citizens Federal Credit Union, Mechanics Cooperative Bank, Santander (formerly Sovereign Bank), The Savings Bank, and the Winchester Coop. The first ONE Mortgage loan, originated by Winchester Coop, closed on August 27.
Six additional lenders have committed to the program and expect to be originating loans by late 2013 or early 2014: Boston Private Bank, Citizens Bank, Middlesex Savings Bank, Pilgrim Bank, Rockland Trust and St. Mary’s Credit Union.
Since June, MHP has conducted numerous trainings for lenders and community organizations that counsel and educate first-time homebuyers. MHP has also been finalizing marketing materials and on-line loan processing systems. Marketing materials are available in four languages and a new web portal launching in late November includes a downloadable smartphone app to help consumers determine their eligibility for the ONE program and calculate estimated monthly loan payments.
The ONE Mortgage Program received a significant boost earlier this year when the U.S. Consumer Financial Protection Bureau exempted MHP's ONE Mortgage and programs like it from new federal Qualified Mortgage and Ability to Repay rules. This means that banks originating ONE Mortgage loans are in a regulatory safe harbor and do not have to worry about open-ended consumer liability.
If you’re a lender and you want to learn more about how the ONE Mortgage Program can help you reach more customers and strengthen the communities you serve, or if you’re a consumer and you want to learn more about the program, contact MHP's homeownership team at 1-800-752-7131 or onemortgage@mhp.net.