ACE/CIP/HPA Procedures

Members must submit documentation of the eligible use of ACE, CIP, or HPA credit and the appropriate "Certification of Use" form to the Bank at the time the CICA-supported financing is completed or within one year of the advance funding date.
 
Documentation Requirements

The Bank will review documentation to determine that:

• The total dollar value of the lending activity supported by CIP/ACE/HPA funds is equal to or greater than the advance amount.
• The loans were issued within the documentation date range.
• The HUD area median income (AMI) statistics used are from the year in which the loan or the advance was made.
• AMI levels are within program guidelines.
• HPA credit was used to refinance or modify a mortgage loan with a minimum 3-year fixed interest rate, with no negative amortization during that period, or was used for a reverse mortgage, such as a Home Equity Conversion Mortgage.
• The interest rate, points, fees, and all other charges for HPA credit to homebuyers are, at all times during the term of the loan, reasonable and customary, and do not and will not exceed the thresholds of the Home Ownership and Equity Protection Act of 1994 and its implementing regulations (Federal Reserve Board Regulation Z).

Members may use the HPA Documentation of Eligible Use (.xls) to organize mortgage loan information for HPA credit. 
 
If the Bank determines that a member is not complying with the terms and conditions of the CIP/ACE/HPA on a particular advance (based on documentation provided to the Bank by the member), the Bank may reset the interest rate on that advance to the rate that was in effect for a standard Bank advance of comparable maturity at the time of funding. The Bank will notify the member of any rate adjustment in advance, and the member may request a review of the ineligible use determination.
 
Certification Forms

• ACE/CIP Certification of Use (PDF) 
• HPA Certification of Use (PDF)

 


© 2000-2010 Federal Home Loan Bank of San Francisco