All policy changes and updates are referenced below in the appropriate section of the Correspondent Lending Guide. These policy changes apply to everyone using the Chenoa Fund down payment assistance program and are effective beginning 06/17/2024, unless otherwise noted. This announcement, and previous announcements are available on the Announcements page of our website.
Announcement: Update to Mortgagee Clause for 2nd Lien, Repayable Loans
The Mortgagee Clause for all 2nd liens must read:
CBC Mortgage Agency, ISAOA/ATIMA
c/o Midwest Loan Services
P.O. Box 690748
San Antonio, TX 78269
Announcement: Update to Early Payment Default Policy
There is an “Early Payment Default” with respect to any Mortgage Loan when:
- The first payment due Purchaser becomes thirty (30) days or more delinquent.
- Any of the second through sixth payments become sixty (60) days or more delinquent.
A payment is considered delinquent if a payment is not received within thirty (30) days of the due date designated on the mortgage note (first or second), including escrows or other amounts required to be paid, on or prior to the last day of the calendar month in which such Monthly Payment is due Purchaser. Aa payment for which Purchaser deducted funds at the time it purchased the Mortgage Loan from Seller shall not be considered the first payment due Purchaser.
In the event of an Early payment Default, at CBC Mortgage Agency’s option,, CBC Mortgage Agency may require Seller to: (1) repurchase the related Mortgage Loan; or (2) pay CBC Mortgage Agency the Premium for such Mortgage Loan and any related costs and expenses actually incurred by CBC Mortgage Agency as a result of the Early Payment Default of the Mortgage Loan provided that if CBC Mortgage Agency chooses option (2) and a Subsequent Transferee requires a repurchase of the Mortgage Loan due to an Early Payment Default, CBC Mortgage Agency may still require Seller to repurchase the related Mortgage Loan at the Repurchase Price minus any amounts paid pursuant to option (2). Whether CBC Mortgage Agency chooses option (1) or option (2), in addition to the premium paid for such Mortgage Loan, related costs and expenses charged to Seller shall be limited to expenses that are actually incurred by CBC Mortgage Agency.
Announcement: Interest Credit Option
Please note the following update to the Interest Credit Option: Loans disbursed on or before the seventh (7th) day of the current month may use an interest credit option. This change affects the following sections in the correspondent lending guide:
- | Origination Through Closing
Section 6.5 | Interest Credit Option
Section 6.11.3 | Per Diem Interest and Interest Credits
Announcement: Flood zones removed from ineligible features and properties for manufactured housing.
This change affects the following sections in the correspondent lending guide:
- | Manufactured Housing
5.2.5 | Ineligible Features and Properties
In addition to the announcements noted above, there are a number of small updates to sections 10 and 11 in the correspondent lending guide. Please see the changes to our guidelines in the following sections that reflect updated information and addresses:
10 | Servicing
10.1 | First and Early Payment Defaults
10.4 | Transfer of Servicing
10.4.1 Information for Goodbye Letter
11 | CBC Mortgage Agency Key Contact Information
11.3.3 FHA 1st Mortgage Servicer General Contact Information
11.3.4 FHA 1st Mortgage Servicer General Mailing Address
11.3.5 Servicer Contact and Mailing Information for Repayable Second Mortgage
11.4 | Shipping Addresses
11.4.3 Mortgagee Clause for FHA First Mortgages
11.4.4 Mortgagee Clause for Repayable, 2nd Liens
11.5 | Borrower Payment Addresses
11.5.2 Repayable Second Mortgage Payment Address
11.5.3 Forgivable Second Mortgage Payment and Overnight Address
11.6 | Wiring Instructions
11.6.3 Forwarded Payments and Payoffs for 2nd Lien, Repayable Loans
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