On average, the Seattle Bank disburses grants to nearly 70 homebuyers each month.
The following suggestions may help you ensure a more efficient and timely disbursement
process.
When completing the 2009 Home$tart
Disbursement Request and Certification form (pdf), Seattle Bank Members must ensure
that:
- Before submitting a disbursement request to the Seattle Bank, the member has received
an email confirming that the enrollment has been approved. Pending enrollments may
be tracked online and will show “Pending income verification” in the comment field.
- Every page has been completed and every field has a written response.
- An individual authorized by the Transaction Authorization for Funding - Community
Investments Programs form has signed page four of the request.
- A homebuyer education certificate of completion and a household account statement
have been included with the disbursement request.
- The account statement or verification of deposit shows a sufficient available current
balance and is dated no more than 45 days prior to the “requested review date.”
- The account statement clearly shows the homebuyer name, account number, institution
name, date and balance of funds as of the statement date.
- Gift funds have not been included in the required household account balance.
- The Seattle Bank may deny disbursement of Home$tart funds for enrolled homebuyers
whose matching funds account statement shows that the homebuyer may contribute 20
percent or more toward the purchase price of the home.
Please Note: The “requested review date” is the date that the Seattle Bank will
review the request and, if all documentation is complete, transfer funds to the
member’s DDA. The Seattle Bank recommends submitting disbursement requests with
a "requested review date" five business days prior to the “anticipated mortgage
closing date.”
Post Disbursement Requirements
HUD-1 settlement statement:
- A HUD-1 settlement statement must be submitted to the Seattle Bank within 30 days
of disbursement.
- The HUD-1 must be stamped as FINAL and signed by all parties.
- The HUD-1 must clearly identify the Home$tart grant (e.g., “Federal Home Loan Bank
of Seattle grant” or “Home$tart Program grant”).
- Cash back to the homebuyer cannot exceed $250 under any circumstances, even if the
funds belong to the homebuyer (i.e., earnest money). Any amount in excess of $250
must be used to reduce the mortgage principal or as a credit toward monthly mortgage
payments. The member will be asked to provide documentation in the form of a check
and a statement/letter instructing the mortgage holder to apply the excess funds
toward principal reduction or as a credit toward monthly payments.
Deed of Trust and Retention Agreement:
- A recorded Deed of Trust and Retention Agreement must be submitted to the Seattle
Bank within 90 days of disbursement (Exception: Homes purchased in Multnomah County,
Oregon, or located in the state of Hawaii are permitted up to six months to provide
a copy of the recorded Mortgage and Retention Agreement).
- Deed of Trust and Retention Agreements must be submitted on the most current forms,
which can be found on the Seattle Bank Web site.
- The Home$tart Deed of Trust and Retention Agreement must be recorded as a separate
lien.
Please Note: Final approval of the disbursement of Home$tart funds is subject to
the sole discretion of the Seattle Bank and subject to all applicable laws, rules,
regulations, and policies of the Seattle Bank, as all may be amended from time to
time. Participating members should advise homebuyers that the homebuyer’s receipt
of Home$tart funds is not guaranteed and that there is a risk that disbursement
of those funds will not be approved. The Seattle Bank is not liable for any losses
or damages resulting from a failure to disburse Home$tart funds to a member or a
homebuyer.
For detailed information regarding program requirements, please refer to our Home$tart and Home$tart Plus 2009 Member Policies and Procedures
(pdf), or contact Community Programs Analyst
Craig Horton (206.340.2436).