227 North Bronough Street, Suite 5000
Tallahassee, Florida 32301
850.488.4197 • 850.488.9809 Fax
www.floridahousing.org
Florida Housing Finance
Corporation’s
Mortgage Credit Certificate
(MCC) Program
Lender Training for
Loan Officers, Processors,
Underwriters,
Closers & Post Closers
2018 Mortgage Credit Certificate Program
This training is to help you understand what a Mortgage Credit Certificate (MCC) is as well as what
steps you will need to take in originating an MCC with your mortgage loan.
This training is also designed so that you may print the document and use it continuously as a
reference tool. However, please keep in mind that information may be updated periodically by
Florida Housing. These changes will be noted in the MCC Lender Guide as well as through email
notification.
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2018 Mortgage Credit Certificate Program
Please allow 30-40 minutes to thoroughly review the material
provided and to complete all requirements.
Today, you will …
1) Review the 57 pages of PDF training materials to
familiarize yourself with the Program and your role.
2) Upon completion, contact your Systems Access
Administrator regarding Lender Portal Training and
access to the Lender Portal found at
https://mccprogram.floridahousing.org
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2018 Mortgage Credit Certificate Program
Training Agenda
What is a Mortgage Credit Certificate?
Your role in the MCC Tax Credit Process
Resources and Need to Know Information
MCC Lender Quiz and User Registration
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2018 Mortgage Credit Certificate Program
What is a Mortgage Credit Certificate?
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2018 Mortgage Credit Certificate Program
What is a Mortgage Credit Certificate?
A mortgage credit certificate, or MCC, is a non-refundable federal income tax credit which
can be paired with a lender’s first mortgage. The MCC reduces an eligible borrower’s
federal income taxes and, in effect, creates additional income for the borrower to use in
making mortgage payments or applying towards other household expenses.
Florida Housing’s Program offers a tax credit amount of up to 30%, based on the loan
amount. Homeowners with the MCC are allowed to use a percentage of their actual
mortgage interest as a direct federal tax credit, resulting in a dollar-for-dollar reduction of
their annual federal income tax liability.
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2018 Mortgage Credit Certificate Program
Will my Borrower Benefit from the MCC?
The MCC is a federal tax credit that borrowers claim when filing their annual taxes with
the IRS. Borrowers should have sufficient tax liability to claim the federal credit.
Borrowers who do not have a sufficient tax liability could not claim the MCC tax credit
annually.
Using an MCC for a borrower with no tax liability will result in a “phantom income” and
would not assist in your borrower’s ability to repay.
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2018 Mortgage Credit Certificate Program
How to Calculate the Amount of MCC Benefit?
The credit rate is determined by the loan amount as indicated below.
Lenders will 1) multiply the credit rate by the mortgage interest paid by the borrower
for that given tax year to determine the MCC tax credit amount.
Then lenders will 2) divide that tax credit amount by 12 to determine the monthly benefit amount.
Florida Housing offers the lender a tool to assist in calculating this amount. (The Tax Credit
Worksheet.)
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2018 Mortgage Credit Certificate Program
How to Calculate the Amount of MCC Benefit
Example 1: Consider a Borrower with a Loan Amount of $250,000
This borrower would receive a $1,250 benefit on their federal tax returns
towards their tax liability which also equates to a monthly benefit of
$104.17. This $104.17 could be used towards their monthly mortgage obligation
.
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2018 Mortgage Credit Certificate Program
How to Calculate the Amount of MCC Benefit
Example 2: Consider a Borrower with a Loan Amount of $180,000
This borrower would receive a $1,800 benefit on their federal tax returns
towards their tax liability which also equates to a monthly benefit of
$150.00. This $150.00 could be used towards their monthly mortgage obligation.
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2018 Mortgage Credit Certificate Program
How to Calculate the Amount of MCC Benefit
Example 3: Consider a Borrower with a Loan Amount of $95,000
This borrower would receive a $1,425 benefit on their federal tax returns
towards their tax liability which also equates to a monthly benefit of
$118.75. This $118.75 could be used towards their monthly mortgage obligation.
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2018 Mortgage Credit Certificate Program
What Exactly is a Mortgage Credit Certificate?
The Florida Housing MCC Tax Credit should not be confused with any of the below.
A down payment assistance program.
A housing grant program.
A mortgage loan of any type.
Remember, the MCC is a federal tax credit.
Borrowers will claim the MCC when filing their federal tax returns on an annual basis by
completing IRS Tax Form 8396 with the assistance of their tax professional.
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
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2018 Mortgage Credit Certificate Program
What is the role of the Loan Officer and Processor?
Loan Officers/Processors are responsible for initially verifying that the borrower is eligible to participate in
the Mortgage Credit Certificate Program.
Borrowers must meet 5 requirements in order to be eligible for the Program.
1) Total household income must meet the Program Income Limits.
2) Property purchase price must satisfy the Program Purchase Price Limits.
3) Borrowers must be First Time Home Buyers.
4) Borrowers must complete a homebuyer education course.
5) Borrowers should have sufficient tax liability.
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2018 Mortgage Credit Certificate Program
What is the role of the Loan Officer and Processor?
Income Limits
The Florida Housing MCC Program maintains strict income limits which must be adhered
to in determining borrower eligibility.
The MCC Program considers the total current gross annual income of each occupant over
the age of 18 (the Household Income). Once the Household Income is determined,
compare that to the Income Limits to determine if your borrower qualifies.
The Income Limits for the MCC Program can be found on our webpage at
www.floridahousing.org/MCC
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2018 Mortgage Credit Certificate Program
What is the role of the Loan Officer and Processor?
Purchase Price Limits
The Florida Housing MCC Program also maintains strict Purchase Price Limits which must be adhered to in
determining borrower eligibility.
The Purchase Price limit considers the final acquisition amount (the sales contract price),
not the loan amount.
The Purchase Price limits for the MCC Program can be found on our webpage at
www.floridahousing.org/MCC
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2018 Mortgage Credit Certificate Program
What is the role of the Loan Officer and Processor?
First Time Homebuyer
The definition of a First Time Homebuyer is a person who has not owned and occupied their primary
residence within the last three years. Borrowers who may own investment properties are eligible for the
program. This requirement is for borrowers and spouse, even if spouse is not on the loan.
Exceptions to the First Time Homebuyer requirement are made for military veterans (with a valid DD-214)
and those borrowers who may be looking to purchase a home located in a Federally Designated Targeted
Area. Targeted areas are identified by census tracts which are available in the Lender Guideline.
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2018 Mortgage Credit Certificate Program
What is the role of the Loan Officer and Processor?
First Time Homebuyer
Lenders should review and provide the most recent three (3) years tax documents to ensure the borrowers
satisfy the First Time Homebuyer requirement.
Borrowers must not have owned and occupied their primary residence within the last three years.
Lenders should be reviewing tax returns and transcripts for mortgage interest or any credits that would
claimed for homestead property.
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
Federally Designated Targeted Areas
Federally Designated Targeted Areas means those areas within the State identified as Qualified Census Tracts
and Areas of Chronic Economic Distress. Borrowers purchasing in these areas are exempt from the First
Time Homebuyer requirement. Higher Purchase Price and Income Limits apply to these census tracts.
In order to determine if a property is designated a Federally Designated Targeted Area, lenders will review
the census tract data from the appraisal and compare to the census tract list through U.S. Census Bureau’s
website at
http://factfinder2.census.gov OR in the Lender Guideline OR through our MCC Program
Wizard. The Wizard is located on our homepage at www.floridahousing.org.
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2018 Mortgage Credit Certificate Program
• When trying to determine if your borrower is
purchasing in a Federally Designated
Targeted Area, check Page 2 of your Appraisal,
under the “Subject” Section, and “Census
Tract”. If this number reflects on the U.S.
Census Bureau’s website OR on our website
through the MCC Program Wizard OR in the
Lender Guide, then your borrower may be
exempt from the First Time Homebuyer
requirement. This would mean you do not need
to collect tax returns or transcripts for the last
three years and higher Income Limits and
Purchase Limits apply (refer to the Lender
Guideline).
2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
Homebuyer Education
• Once it has been determined that your borrower is eligible to participate in the Florida Housing MCC Program, they
will need to complete homebuyer education course. We will accept face-to-face homebuyer education if provided by a
HUD approved counseling agency, a unit of local government that provides pre-purchase homebuyer education in
FL, or a counseling agency designated by a unit of local government to provide homebuyer education on their behalf.
Refer to www.hud.gov for a list of approved education providers by county.
• Online HBE is permitted if provided by a HUD approved agency, a unit of local government that provides pre-
purchase homebuyer education in FL, a mortgage insurance provider, or an Agency or GSE sponsored course.
• Florida Housing does NOT maintain a list of homebuyer education providers.
• The certificate for the education course must be provided by the borrower to the lender before the closing of the
loan.
• Homebuyer education certificates are valid for 2 years from date of completion.
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
Using the MCC with other Products
Florida Housing MCC uses the same funding source as mortgage revenue bond programs. As such, the MCC may never
be used with any other Florida Housing government programs. This means you cannot use the MCC with the FL
Housing FL First or Military Heroes First Mortgage Loan Programs. EVER.
The Florida Housing MCC may be used in conjunction with all lender offered conventional and government products.
You can also use the MCC with the Florida Housing HFA Preferred/PLUS Conventional First Mortgage Loan Program
but be sure you adhere to the more stringent MCC Program requirements. MCC considers Household Income while the
HFA Preferred does not.
The MCC can also be used with other agency DPA and grant programs provided that you are following those program
guidelines when doing so.
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
New Construction
Lenders may choose to pair the Florida Housing Mortgage Credit Certificate with new construction
properties. Due to the extended timelines generally included with new construction homes, Loan Officers
and Processors must reserve the MCC to as close to the closing date as possible.
Lenders should also email Florida Housing at
FLMCCInquiries@hilltopsecurities.com
so that the file may be documented.
Failure to do so may result in the timeline expiration and subsequent cancellation of the MCC reservation.
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
Once it has been determined that your borrower is eligible for the Program, you will reserve the MCC for the
borrower in the Florida Housing MCC reservation system.
Steps to accessing the reservation system are included towards the end of this training.
Keep in mind that you will need to reserve the MCC for your borrower as close to the actual closing date as
possible. This will ensure that your lending team can meet the program timelines
required for issuance of the MCC.
The Florida Housing MCC Program follows a 60 day reservation to MCC issuance timeline.
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
Landing Page
Upon logging in to the Florida Housing reservation system, you will be brought to a landing page. From here
you will be able to perform two very important functions.
1) You will have the ability to create new reservations by selecting the applicable light gray button to the far
right of the page.
2) You will have the ability to manage your individual/lender pipeline and keep up to date with the status
of your particular reservations.
3) In order to monitor the status of your MCC reservations, click the “View” icon to the left of your
Borrower’s Name.
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2018 Mortgage Credit Certificate Program
What is the role of the Loan Officer and Processor?
Once the Loan Officer/Processor has completed the reservation, the pre-closing documents will become
through the “PDF docs” icon.
The Loan Officer/Processor should print and review the Recapture Brochure, Mortgagor Affidavit, Notice
to Buyer and Notice Regarding Collection of Social Security Numbers with the borrower(s). The
borrower(s) should sign all applicable docs at this time. The Seller Affidavit may be signed before closing
and submitted with pre-closing compliance review package. If not, it will become a closing condition.
Please note the Mortgagor Affidavit will become a closing condition if cannot be notarized prior to closing
by borrower(s)/mortgagor(s).
Forms such as the Tax Credit Worksheet and Income Calculation Worksheet are tools to assist Lender and
are located in “Program Documents”.
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2018 Mortgage Credit Certificate Program
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2018 Mortgage Credit Certificate Program
MCC Reservation Status
1) RESERVED
Once the Loan Officer/Processor has reserved the MCC, the status will reflect as Reserved.
2) PRE-COMPLIANCE REVIEW
Upload the Pre-Compliance Review Package per the checklist located in the Lender Portal. Once
Hilltop has reviewed and approved the file, the status will appear as Pre-CloseRvw – either
Approved or Incomplete
3) POST-COMPLIANCE REVIEW
Upload the Post-Closing Review Package per the checklist located in the Lender Portal. Once
Hilltop has reviewed and approved the file, the status will appear either Approved or Incomplete.
4) MCC ISSUED/CANCELLED
Once the post-closing compliance review ha been completed and approved by Hilltop, MCC
Issued or Cancelled will reflect as status. Files must be approved by day 60 of reservation or risk
cancellation.
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
Reserving the MCC for your Borrower
The MCC Reservation collects all of the required loan information from the Lender and is located in the
Lender Portal.
Do not attempt to complete this form until all loan data is available. Note, the 60 day timeline begins the day
the reservation is made.
The Hilltop Securities Reservation System will generate a Reservation Confirmation
when the MCC is reserved.
Please keep in mind that the Reservation Confirmation is not an approval or issuance of the MCC. This is
merely a confirmation that the reservation has been made for your borrower(s).
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
Reissuing a Refinanced Loan with MCC
Effective October 1, 2015, borrowers who have previously been issued a Florida Housing Mortgage Credit
Certificate can now maintain the certificate in the event that they refinance their first mortgage loan.
This option is reserved for refinances only.
Please submit the Refinance Package Documents into the Lender Portal in the “Mortgage Credit
Certificate” package space, then submit.
There is a Reissuance Fee of $250 made payable to Hilltop Securities. The funds may be wired at the time the
package is uploaded into the reservation system.
Please refer to the MCC Lender Guide for specific requirements.
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
Reissuing a Refinanced Loan with MCC
When reserving a reservation to reissue an existing MCC, the Loan Officer/Processor must provide the
borrower’s original Mortgage Credit Certificate.
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
Notice to Buyer and Recapture Tax
When the MCC reservation has been made and confirmed, it is important to discuss the Recapture Brochure
and the potential of Recapture Tax with your borrower.
As an overview, all of the following conditions must be in effect to activate Recapture Tax.
• The home is sold within nine years of the original mortgage loan closing date.
• The borrower has a net gain on the sale of the property.
• The initial qualifying annual Household income increases the federal threshold limit as prescribed by the
federal tax code at the time of sale.
All Recapture Tax details can be found in the MCC Program Lender Guide.
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
Checklist for Loan Officer and Processor
Confirm Borrower Eligibility by reviewing the following:
Purchase Price
Total Household Income
First Time Homebuyer Eligibility
Substantial Tax Liability
Enter all required loan data into the Hilltop Securities MCC Lender Portal and Reserve the MCC.
Review Recapture Tax information with the borrower.
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2018 Mortgage Credit Certificate Program
What is the Role of the Underwriter?
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2018 Mortgage Credit Certificate Program
What is the Role of the Underwriter?
Underwriters are the overriding authority and are responsible for reviewing all
data entered into the MCC reservation system.
Underwriters are responsible for and reviewing and validating data accuracy.
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FHFC Homebuyer Tax Credit Program (MCC) 2017
What is the role of the Underwriter?
First Steps
The first step of the Underwriter is to review the information entered by Loan Officer or Processor.
This information can be found on the Reservation Confirmation located in the Loan Status tab “View” icon
next to the “Borrower Name”.
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2018 Mortgage Credit Certificate Program
What is the Role of the Underwriter?
Underwriters should be checking first and foremost for Income.
1) Income of each occupant and then 2) income for the Household.
Has the total gross annual income been calculated correctly? Income which is consistent and likely to
continue should be considered towards the borrower’s or occupant’s income.
A detailed breakdown of how to view income for self employed borrowers is available in the
MCC Program Lender Guide and is a valuable asset when calculating income.
All person over the age of 18 and taking residence in the home must have their
income counted towards the Household Income.
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2018 Mortgage Credit Certificate Program
What is the Role of the Underwriter?
Options
Ultimately, Underwriters have 3 options they can chose from during the Reservation process:
1) Complete the Underwriter Form to be uploaded with the Pre-Closing package
2) Edit Reservation by emailing changes to FLMCCInquiries@Hilltopsecurities.com
3) Cancel Reservation
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2018 Mortgage Credit Certificate Program
What is the Role of the Underwriter?
Submit Pre-Closing Package
Generate the checklist and auto-populate documents found in the “PDF Docs icon by the Borrower’s Name.
Upload, save and submit documents in “eDocs icon”.
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2018 Mortgage Credit Certificate Program
What is the Role of the Underwriter?
Cancel this Reservation
Underwriters may determine that a borrower is not eligible to participate in the Florida Housing MCC
Program. When this occurs, Underwriters can cancel the reservation:
1. Loan Status Tab
2. Locate Loan to be cancelled
3. Click on the “View” icon
4. Click the “Cancel” button in the upper left hand corner
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2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
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Quick Quiz: The Florida Housing MCC Program reviews
only the borrower net income for qualifying. True or False?
2018 Mortgage Credit Certificate Program
What is the Role of the Loan Officer and Processor?
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False! Remember, the Florida Housing MCC Program
requires that total household gross annual income be
reviewed to determine borrower eligibility.
2018 Mortgage Credit Certificate Program
What is the Role of the Closing Team?
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2018 Mortgage Credit Certificate Program
What is the Role of the Closing Team?
The closing team is directly responsible for the post-closing document submission portion of the MCC
compliance process. The final role of the lender is to submit all completed and required loan documents and
FL Housing MCC Program documents electronically into the Lender Portal found at
https://mccprogram:floridahousing.org.
Please submit within 30 days of closing and check for any post-closing condition within 24-48 hours of
package upload.
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2018 Mortgage Credit Certificate Program
How to Generate Pre or Post Closing MCC Program Documents
Generate the applicable auto-populated documents found in the
“PDF Docs” icon by the Borrower’s Name.
Upload, save and submit documents in “eDocs Icon” in either Pre-Closing or Post-Closing Package space.
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2018 Mortgage Credit Certificate Program
How to Generate/ Pull FL Housing Program Documents
It is imperative to follow the guidelines detailed below. 75% of the pended MCC compliance reviews are due
to the deficiencies indicated below.
1) Manual edits on any Florida Housing documents will not be accepted.
2) Lender typed data on any Florida Housing documents will not be accepted.
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2018 Mortgage Credit Certificate Program
Compliance Review Fee
After closing, the MCC Compliance Review Fee should be wired
to Hilltop Securities, Inc. in the amount of $450.
Wire instructions will be listed in on the post-closing checklist.
Lenders will want to ensure that this Compliance Review Fee is noted on the Closing Disclosure.
The Compliance Review Fee can be submitted from the lender, borrower or title company.
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2018 Mortgage Credit Certificate Program
Timeline
The MCC reservation is valid for 30 days during which time the pre-closing compliance package should be
uploaded for review in the Lender Portal.
The reservation will be subject to cancellation if the pre-closing package is not received by day 30.
The post-closing package should be submitted 30 days after closing for review, approval and issuance of the
actual Mortgage Credit Certificate (MCC).
MCC Program documents should be executed pre-closing.
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2018 Mortgage Credit Certificate Program
What’s Next?
Remember, a reservation is not an approval. Lenders are recommended to review the
Florida Housing MCC Pipeline regularly to ensure that all steps have been taken towards
the approval of the Mortgage Credit Certificate.
The reservation statuses in the MCC Lender Portal are updated approximately every 10-15 minutes.
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2018 Mortgage Credit Certificate Program
What’s Next? Deficiencies Found
If a file submitted from the Lender is found to have deficiencies, Hilltop Securities Staff will contact the
Lender points of contact via email.
Hilltop Securities Staff will assist Lenders in resolving deficiencies.
All deficiencies must be resolved prior to the reservation expiration date or risk cancellation of reservation.
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2018 Mortgage Credit Certificate Program
Original Submissions
The FL Housing MCC Program requires that all documents be submitted electronically into the Hilltop
Securities Lender Portal.
No paper files will be accepted.
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2018 Mortgage Credit Certificate Program
What’s Next? Deficiencies Found
If a pre or post closing file submitted from the Lender is found to have deficiencies, the lender may access
the deficiencies in the Lender Portal by clicking the “View” icon.
Any questions regarding defies should be directed to Hilltop Securities at
flmccinquiries@hilltopsecurities.com
All defies must be resolved prior to the reservation expiration date or risk cancellation of reservation. This
means your borrower will not receive the MCC benefit.
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2018 Mortgage Credit Certificate Program
What’s Next? Cancellation
The purpose of pre-compliance review is to ascertain before closing that the borrower meets the Program
guideline. The Lender will be alerted to this during the loan review process.
It will be the responsibility of the Lender to notify the borrower.
Should a Lender decide to cancel a reservation any time before closing, they may do so in the Loan Status
tab, “View” icon by clicking the “Cancel” button.
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MCC Process – Start to Finish
Processor/Loan Officer
• Confirm Borrower Eligibility
• Reserve MCC in Lender Portal
• Review Recapture Tax with Borrower
Underwriter
• Confirm Loan Data
• Verify Borrower Liability
• Upload Pre-Close Package in Lender Portal
Closing Team
• Generate required documents from the Lender Portal
• Ensure Original documents are executed
• Submit Compliance File to Florida Housing for review
Florida Housing Compliance Team
• Review Compliance File submitted by lender
• Approve and Issue MCC reservation
• Mail Copy to Borrower and Lender
2018 Mortgage Credit Certificate Program
Resources and Need to Know Information
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2018 Mortgage Credit Certificate Program
New User Registration
Please keep in mind, users should only be granted Lender Portal
access after they have taken MCC Program and Lender Portal
Training.
Access to the Lender Portal will not be approved prior to
completion of the training.
Systems access must not be shared. Each person playing a role in
the Program must have their own specific log in information.
Lenders will contact their organization’s access administrator to
request a new password in the event that the initial password
needs to be reset.
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2018 Mortgage Credit Certificate Program
Florida Housing Webpage
Not only is the Florida Housing webpage
where you will log in to the Lender Portal,
but you will also find Income and Purchase
Limits, information on Homebuyer
Education and Federally Designated
Targeted Areas as well as our Lender
Training and Lender Guideline.
Lenders can also access marketing
materials.
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