Author: enzo

The Community Reinvestment Act, commonly known as the CRA, has been a pivotal law in the banking industry since 1977. Designed to curb discriminatory lending practices, the CRA requires banks to extend their services to every part of their community, including low- and moderate-income (LMI) areas.

These rules, which were last updated nearly 30 years ago, are currently being updated to meet the needs of today’s digital age. And while most correspondent lenders are non-banks, the new changes spell opportunities for lenders that expand their reach to underserved LMI communities.

What’s Different

Announced in October 2023, the final CRA rule changes reflect the rise of online and mobile banking and branchless bank models and seek to strike a balance between digital banking services with physical branches in LMI communities. They also specify eligible CRA activities, such as expanding affordable housing in underserved, native, and rural communities, and introduce metrics-based benchmarks for evaluating a bank’s retail lending business using peer and demographic data.

So how do these changes impact correspondent lenders?

With banks now more incentivized than ever to invest in low- and moderate-income communities, they will become increasingly selective in their loan acquisitions. As a result, they might actively seek out partnerships with correspondent lenders that can help them meet these new obligations.

In other words, if your loans have a direct positive impact on underserved communities, banks may see you as a valuable partner—which could lead to fresh business opportunities and a greater share of the market.

How CBC Mortgage Agency’s Chenoa Fund Down Payment Assistance Program Can Help

Given the new CRA rules, correspondent lenders would be wise to think creatively about how to serve homebuyers in underserved areas. One of the best tools for doing so is by adopting down payment assistance (DPA) programs targeted at low- to moderate-income homebuyers, such as those offered through by CBC Mortgage Agency.

When it comes to DPA, options abound. Some involve grants or forgivable loans that don’t require repayment, which makes them extremely attractive to first-time homebuyers who lack savings and don’t have access to gift funds from relatives. There are also second mortgage options available at low or zero interest rates, which enables borrowers to build home equity without being overwhelmed by high monthly payments.

Either way, Chenoa Fund down payment assistance is a win-win for everyone. For the homebuyer, they break down financial barriers to homeownership. For correspondent lenders and their banking partners, they provide a means to reach an underserved segment of the homebuyer market while aligning with the CRA’s renewed focus.

Honoring LMI Lending

If you’re starting to see the effectiveness of DPA programs in today’s CRA landscape, there are few DPA providers better suited to partner with than CBC Mortgage Agency. Over the past 10 years, we’ve helped more than 44,000 borrowers – including many LMI families – access DPA through the Chenoa Fund down payment assistance program to achieve and sustain homeownership. We also have approval from the USDA to provide USDA loans, which are another powerful tool for serving LMI borrowers in rural areas.

But that’s not all. To inspire other lenders to join us in our mission, we began recognizing companies that share our commitment to advancing homeownership opportunities. Our newly launched Kani Awards program recognizes lenders that support economic stability for homebuying families by offering innovative DPA programs that help LMI borrowers overcome the barriers to homeownership.

“Kani,” (K-AH-N-EE) the traditional Paiute word for home, embodies the spirit of the Kani Award. The meaning behind the Kani Award echoes CBCMA’s tribal roots and the company’s longstanding commitment to promoting inclusive homeownership since its inception 10 years ago.

Last month, our inaugural Kani Awards program honored five lenders based on their share of mortgages sold to LMI borrowers during the previous calendar year: Cardinal Financial Company, Everett Financial (Supreme Lending), Fairway Independent Mortgage Corporation, Nova Home Loans, and Paramount Residential Mortgage Group, Inc.

By offering Chenoa Fund down payment assistance programs through CBC Mortgage Agency, you can join these leaders in community investment—and make your loans more appealing to banks that are now motivated more than ever to serve these communities.

Interested in learning more? Give us a call at (866) 563-7572, email us at info@chenoafund.org, or click here.  This is intended for industry professionals only and is not intended for or directed at consumers.

CBC Mortgage Agency – NMLS 1186381

For licensing information, go to www.nmlsconsumeraccess.org.

Illinois Residential Mortgage License #MB.6761292. Illinois Department of Financial and Professional Regulation, Division of Banking, 555 W. Monroe St., Suite 500, Chicago, IL 60661 – 1-888-473-4858. This information is provided by CBC Mortgage Agency and intended for real estate and mortgage professionals only. It is not intended for public use or distribution. Terms and conditions of programs and guidelines are subject to change at any time without notice. This is not a commitment to lend. Equal housing opportunity.

The post New CRA Changes Spell Opportunity for Serving LMI Borrowers appeared first on Chenoa Fund.

For immediate release:

South Jordan, Utah, October 30, 2023 – CBC Mortgage Agency was named a Top Workplace 2023 by Salt Lake Tribune Top Workplaces, for its third year running. The award is based solely on employee feedback. The confidential survey uniquely measures 15 culture drivers that are critical to the success of any organization: alignment, execution, and connection, just to name a few.

“Earning a Top Workplaces award is a badge of honor for companies, especially because it comes authentically from their employees,” said Eric Rubino, Energage CEO. “That’s something to be proud of. In today’s market, leaders must ensure they’re allowing employees to have a voice and be heard. That’s paramount. Top Workplaces do this, and it pays dividends.”

CBC Mortgage Agency has been consistently named a Top Workplace, receiving recognition in the years of 2019, 2021, 2022 and 2023 by the Salt Lake Tribune.

“We are thrilled to be recognized as a Top Place to Work for the third year running. This achievement is a testament to the dedication and passion of our team at CBC Mortgage Agency,” said Miki Adams, president of CBC Mortgage Agency. “We remain committed to fostering a workplace where inclusion, collaboration and a shared place of purpose thrive, empowering us to continue to make a positive impact in the lives of our employees and the communities we serve.”

About

CBC Mortgage Agency was formed in 2013 by the Cedar Band Corporation, an enterprise wholly owned by the Cedar Band of Paiutes in Utah. CBC Mortgage Agency is a nationally chartered housing finance agency of the Cedar Band and provides down payment assistance for FHA loans and other affordable housing mortgage loan products to qualifying borrowers. CBC Mortgage Agency has used its unique business structure to offer a national down payment assistance program, where most State Housing Agencies operate only within one state.

CBC Mortgage Agency is approved as a Title II, Direct Endorsement Government Entity Mortgagee with the United States Department of Housing and Urban Development (HUD) with the authority to originate, hold and service FHA Title II and Section 184 mortgages. CBC Mortgage Agency is also approved to originate loans through the United States Department of Agriculture (USDA) and its USDA Section 502 Single Family Housing Guaranteed Loan Program. CBC Mortgage Agency operates its nationwide programs in compliance with HUD, FHA and USDA guidelines and takes great care to ensure that the borrowers it assists are capable of sustaining homeownership.

Since its inception, CBC Mortgage Agency has helped thousands of homebuying individuals and families obtain homeownership and has always had a focus on increasing minority homeownership, particularly within the African American, Hispanic and Native American communities.

Company Contact

CBC Mortgage Agency

kira.camozzi@chenoafund.org, 805-807-3384

chenoafund.org

Awards

The post Salt Lake Tribune Names CBC Mortgage Agency A Winner Of The Wasatch Front Top Workplaces 2023 Award appeared first on Chenoa Fund.

FOR IMMEDIATE RELEASE

CBC Mortgage Agency recognizes correspondent lenders for their achievements in LMI communities

SOUTH JORDAN, Utah – October 23, 2023 – CBC Mortgage Agency (CBCMA), a Native American wholly owned and federally chartered housing finance agency, today announced the recipients of its first-ever Kani Award, which recognizes the company’s correspondent lending partners for their work in advancing homeownership by providing mortgages to low-to-moderate income (LMI) minority and first-time homebuyers.

Winners of the Kani Award were selected based on their share of mortgages sold to LMI borrowers during the previous calendar year (in this case 2022).

The 2023 Kani Award recipients are:

• Cardinal Financial Company
• Everett Financial
• Fairway Independent Mortgage Corporation
• Nova Home Loans
• Paramount Residential Mortgage Group, Inc.

“At a time when affordability, soaring interest rates, and dwindling inventory are huge hurdles to homeownership, we are thrilled to honor the dedicated partners who navigate these challenges with unwavering commitment,” said Miki Adams, president of CBCMA. “Despite a difficult housing market, their incredible efforts are turning dreams of homeownership into reality, one resilient borrower at a time.”

“Kani,” (K-AH-N-EE) the traditional Paiute word for home, embodies the spirit of the Kani Award. The meaning behind the Kani Award echoes CBCMA’s tribal roots and the company’s longstanding commitment to promoting inclusive homeownership since its inception 10 years ago.

“The dream of homeownership becomes a reality for many borrowers with the partnership between Chenoa and NOVA Home Loans,” Ryan Vondrak, CEO NOVA Home Loans, stated.

The Kani Award is intended to spotlight lenders that share CBCMA’s passion for creating positive change in LMI communities and supporting economic stability for homebuying families by offering innovative programs that combat barriers to homeownership.

“Supreme Lending is proud to partner with CBC Mortgage Agency and we’re truly honored to earn the inaugural Kani Award distinction,” said Supreme Lending SVP of National Sales Candice McNaught. “At Supreme, we’re committed to delivering homeownership for all, especially lower income families, first-time buyers, and underserved communities. We’re grateful to offer financing options through programs like the Chenoa Fund that help put people into homes and enrich lives.”

To be eligible for the Kani Award, lenders must be active correspondents with at least $20 million in loan volume during the past year and currently use Chenoa Fund programs. CBC Mortgage Agency operates the Chenoa Fund down payment assistance (DPA) program that enable first-time and existing homebuyers to access assistance for up to 5% of their home price.

“Each of this year’s Kani Award winners has shown exceptional commitment and dedication to providing equitable opportunities for underrepresented communities to achieve homeownership,” Adams said.

About CBC Mortgage Agency

Founded in 2013, CBC Mortgage Agency is a nationally chartered housing finance agency. As a leading source of down payment assistance, the company helps low-to-moderate income consumers, often in minority neighborhoods, achieve the dream of homeownership. CBC Mortgage Agency, recognized as one of the Top 25 Companies in Mortgage & Servicing by MReport, is a wholly owned subsidiary of Cedar Band Corp., a federally chartered tribal corporation founded by the Cedar Band of Paiute Indians. Visit chenoafund.org for more information.

The post Five Low-to-Moderate-Income Lenders Receive Kani Award appeared first on Chenoa Fund.

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 October 16, 2023, unless otherwise noted.

This announcement and previous announcements are available on the Announcements page of our website.

Announcement: Suspension of FHA manually underwritten loans

Due to current market conditions, we are temporarily suspending manually underwritten loans. This change will affect all loans registered on or after October 16, 2023. This change affects the following sections in the correspondent lending guide:

5.10 | DTI Requirements

DTI overlays are determined by the qualifying credit scores on the loan.

All FHA:

• Credit Score 600+: DTI per AUS approval. If the borrower does not receive Approve/Eligible, a manual underwrite may be allowed; see section 5.24 (Manual Underwriting) for more information. Effective October 16, 2023, Manual Underwriting is suspended.

5.11 | Payment Shock Requirements

Loans with AUS Approval will not have payment shock calculations applied.  Manually underwritten loans will continue to be reviewed. Effective October 16, 2023, Manual Underwriting is suspended.

5.24 | Manual Underwriting – Effective October 16, 2023, this section on FHA manual underwriting is SUSPENDED.

All FHA: Loans submitted with Refer/Eligible AUS findings that have been manually underwritten according to FHA guidelines are acceptable with the exception of manufactured home properties, provided that CBC Mortgage Agency overlays are also adhered to. All Manual Underwrites will need to be screened prior to close with an exception.

Follow eligibility requirements for manually underwritten loans according to FHA, and then apply CBC Mortgage Agency overlays for complete adherence to our program requirements.

The post Program Update Announcement October 10, 2023 appeared first on Chenoa Fund.

01/15/2021

All policy changes and updates are referenced to the appropriate section below. These policy changes are effective 01/15/2021 unless otherwise noted.

Additionally, CBCMA has compiled all of its announcements related to COVID-19 into one section immediately following the Recent Updates and Announcements section in the Correspondent Lending Guide. To review the program guidelines changes made January 4, 2021, or earlier, please follow this link to the archived Program Guidelines.

Over the last couple of weeks, CBC Mortgage Agency has announced loan servicing changes that will create a better borrower experience: Essex Mortgage has been contracted to sub-service FHA and repayable second mortgage loans delivered to CBC Mortgage Agency. We would like to clarify that this change only affects our FHA products and our repayable second mortgages. Conventional first mortgages and forgivable second mortgages will still be transferred to CBC Mortgage Agency for servicing. Minor textual changes in the Program Guidelines have been added to make this more clear.

Additionally, CBC Mortgage Agency will still be your point of contact for any Escrow concerns, or concerns regarding the Purchase Advice, balances, etc. CBC Mortgage Agency will be your intermediary for Essex Mortgage.

The following paragraph was added to section 2 (Why Use Chenoa Fund?):

In addition, CBCMA offers exceptional customer service. As part of our commitment, we offer a variety of resources to help answer your questions and to assure a smooth experience. For instance, our Scenario and Exception teams are available for video conferencing and screen sharing, and they can walk you through second mortgage input.

The following sections and documents were changed to emphasize that the Note needs to be received (by CBCMA) within 3 days of purchase if the mortgage loan is using a reverse bailee:

1. 34.7 (Required Documents): [line added at end] The notes for mortgages using a reverse bailee must be delivered to CBCMA within three (3) days after the reverse bailee is received.
2. 19 (Mortgage and Note): [line added at end] For mortgages using a reverse bailee, the note must be delivered to CBCMA within three (3) days after the reverse bailee is delivered.
3. 22.2 (Second Loan Documentation Requirements): [middle bullet point edited] 2^nd Lien Note—payment address for repayable 2nds must reflect CBCMA’s servicing address shown above; must be delivered to CBCMA within three (3) days of reverse bailee delivery if reverse bailee is used
4. 10 (Final Documents): [line added at end of 2^nd to last paragraph] (However, the notes for both mortgages must be delivered within three [3] days of reverse bailee delivery if a reverse bailee is used.)
5. Loan Delivery Checklist: [bullet point edited] Note with Allonge, 1^st and 2^nd (2^nd to be endorsed to CBCMA; must be delivered within 3 days of reverse bailee delivery if reverse bailee is used)

The following line was added to Section 5.17 (Present Housing Expense & Verification of Housing Payment), fourth paragraph and following the first sentence:

(This gap may be included in the 12-month verification of housing payment or expense.)

The following bullet point was added to section 5.34.9 (Ineligible Features):

1. Illegal Accessory Units (please follow all HUD guidelines and all zonings laws on allowable features)

The post 21-01-15 Announcement—January 15 2021 Program Guidelines Update appeared first on Chenoa Fund – Down Payment Assistance.

2021 is already shaping up to be a big year. Among many changes coming with president-elect Biden’s inauguration on January 20th, Representative Marcia Fudge (OH),  has been selected to be the next secretary of HUD (Housing and Urban Development). CBC Mortgage Agency would like to wish her a warm welcome, and we look forward to the great work she’s committed to do.

A bit about Secretary-Designate Fudge

Fudge represented the 11th district in Ohio during her time in the House, focusing her energies on issues such as poverty, hunger, civil rights, and health. Fudge has a lot of experience working in House committees, including the Committee on Agriculture and the Committee on Education and Labor; though much of her experience lies outside of the realm of housing, the experience that Fudge has developed should slide easily into her new responsibilities. CBCMA is excited to see what direction that Fudge takes HUD, especially as she enters with many difficult issues already on her plate, including growing numbers of COVID-driven forbearances. We’re looking forward to working with Fudge and HUD to help make housing more accessible to the underprivileged than ever before!

CBC  Mortgage Agency is proud to have worked with Secretary Brian D Montgomery as he served the past two terms under President Trump. The work that has been done and the milestones we have reached towards the common goal of increasing homeownership are largely due to his leadership. We wish him all the best in his next endeavor! 

The post CBC Mortgage Agency Welcomes Secretary-designate Marcia Fudge appeared first on Chenoa Fund – Down Payment Assistance.

The Chenoa Fund Borrower Spotlight shares the stories of borrowers who used Chenoa Fund to become homeowners. Owning a home isn’t for everyone, but there are many Americans who could be homeowners with just a little bit of help. That’s where Chenoa Fund steps in. This is the story of Theo*, who purchased his home late last year.

CBC Mortgage Agency aka Chenoa Fund has been a life-changing experience, to say the least. [M]y mortgage experience was extremely limited. I believed a lot of the home-buying myths and did not understand the importance of homeownership. The one thing I could remember is you need 20% to purchase a home. This kept me from purchasing a home. Home prices kept increasing and I couldn’t save fast enough to keep up. 

My journey began in 2018 and slowly I started to believe I could purchase a home. Towards the end of 2018, my wife and I made a goal to purchase a home. With some careful planning and big help from Chenoa Fund, we were able to secure the down payment needed to purchase a home. In late 2019, my wife and I were able to purchase a home in Herriman, UT. This event was bigger than just purchasing a home. It was a mindset change. It took belief, dedication, and hard work. Now in everything we do, we think ownership before renting.

We’re grateful that Theo was able to break through the myths and find a way to achieve homeownership through Chenoa Fund. Now he and his family can reap the blessings of being homeowners!

You can read about more borrowers who achieved the blessing of homeownership through Chenoa Fund here. Reach out to info@chenoafund.org to learn more about how you can offer Chenoa Fund, or to learn how to access Chenoa Fund in purchasing your future home.

The post Chenoa Fund Borrower Spotlight: Theo appeared first on Chenoa Fund – Down Payment Assistance.

01/04/2021

All policy changes and updates are referenced to the appropriate section below. These policy changes are effective 01/04/2021 unless otherwise noted.

Additionally, CBCMA has compiled all of its announcements related to COVID-19 into one section immediately following the Recent Updates and Announcements section. To review the program guidelines changes made December 22, 2020, or earlier, please follow this link to the archived Program Guidelines.

Due to changing industry needs, we retired our FHA Classic product on October 1, 2020. CBCMA no longer accepts registrations for this program. The FHA Classic product has been removed from our Product Matrix and other informational materials. In addition, the Product Matrix has been reformatted to improve readability and information accessibility, along with the Manufactured Housing Matrix.

The following document and file references have been updated in our guidelines and trainings:

• 4506-T to 4506-C
• 1003 to URLA
• 92900-A to 92900-A/Addendum
• FNMA 3.2 to MISMO 3.4

CBC Mortgage Agency is transitioning to using these documents and files in preparation for FHA and FNMA guidelines requiring these documents and files on March 31^st, 2021. Until then, we will still accept the old documents and files.

Section 5.17 (Present Housing Expense & Verification of Housing Payment) has received a new paragraph, which will be its fourth paragraph:

Borrowers in the 620–659 FICO range and making a housing payment may have a housing gap of up to ninety (90) calendar days before closing. A letter of explanation will be required to explain the housing gap if it is larger than thirty (30) calendar days. For example, a borrower may have left a previous rental agreement and then lived rent-free with family in preparation for closing on a new home.

We would like to remind our correspondents that trailing documents need to be sent to the following address:

   CBC Mortgage Agency

C/O DocProbe

1820 Swarthmore Avenue

P.O. Box 2133

Lakewood, NJ 08701

We would also like to remind our correspondents that, if a borrower or seller is using a power of attorney (POA), a copy of the POA must be included with the closing package (section 8.5).

In December 2020, we released a large update with regards to servicing (and flood certificates). This update has been included again here as a reminder that, no later than January 31^st, 2020, all correspondents need to be fully meeting these new guidelines.

Please Note: The changes below do not impact your MERS or FHA case number transfers. MINs (both TOS and TOB) for both the first and second mortgages should still be transferred to CBC Mortgage Agency (section 10.2). Do not add a sub-servicer to the loan record within MERS. Please transfer holder and servicing rights to CBC Mortgage Agency in FHA Connection (section 10.3.1). CBCMA will update the servicing rights once we receive the case transfer.

In addition, the forgivable second mortgage servicing information is not changing. The below changes only impact both First and Second Mortgage Servicing (repayable seconds only).

The December 2020 Servicing Announcement

In an effort to simplify the servicing process for borrowers, CBC Mortgage Agency (CBCMA) has contracted with a Servicer to service loans sold/delivered to CBCMA going forward. On first mortgages, this servicer will assume the servicing burden the moment a loan is sold to CBCMA so that borrowers do not experience two servicing transfers within a short period of receiving their loan. Upon implementation, transfer of the first mortgage servicing will happen only once, when CBCMA purchases the loan.

Second mortgages follow a slightly different process than do first mortgages since they are owned by CBCMA the moment they are created (the correspondent advances funds on behalf of CBCMA, the government entity, at closing). Second mortgages drawn through CBCMA’s document service, provided free to correspondents, will show the servicing address as the contracted Servicer. Documents prepared by any other provider can either incorporate CBCMA’s Servicer when the documents are prepared, or the servicing on the second can be transferred to Essex Mortgage when CBCMA reimburses the correspondent for the funds advanced to the borrower on behalf of CBCMA at closing. Do not add Essex as a sub-servicer in MERS.

Beginning as soon as possible, but no later than January 31, 2021, please update your goodbye letter to transfer servicing rights to our contracted Servicer when a loan is purchased/reimbursed by CBCMA.

These updates have changed many sections of our program guidelines. In an effort to be thorough and comprehensive, here are all the changes made (in detail):

5.34.4 (Flood Certificates):

All Programs: Any flood certification from a valid vendor is acceptable as long as the flood certification in the file matches the appraiser’s flood information; this must include a life of loan certification. If there is a discrepancy between the two, CBCMA will pull a CoreLogic flood certificate and bill the correspondent the $15 fee on the Purchase Agreement.

All FHA Programs: Please note that a property is not eligible for FHA insurance if a residential building and related improvements to the property are located within SFHA Zone A (a Special Flood Zone Area) of Zone V (a coastal area) and insurance under the National Flood Insurance Program (NFIP) is not available in the community.

A property is not eligible for FHA insurance if the improvements are or are proposed to be located within a Coastal Barrier Resource System (CBRS).

For more information, please refer to FHA 4000.1.

First Mortgage: Flood certifications must be from CoreLogic or Service Link; this must include a life of loan certification. If the correct flood certificate is not present, CBCMA will pull a CoreLogic flood certificate and bill the correspondent the $15 fee on the Purchase Agreement.

7.22 (Documentation—General Requirements): A bullet point in the original section was altered.

• Life of Loan flood certificate
  • In some cases we will require the originator to transfer this certificate; if required, this will be found in the due diligence conditions prior to purchase
  • Second mortgage flood certificates may be from any valid vendor
  • First mortgage flood certificates must be from CoreLogic or Service Link

10.2 (Mortgage Electronic Registration Systems [MERS]): The MERS ORG ID number was incorrectly changed in a previous announcement and has been restored to the original number (1012881).

11.4.1 (Loan Package Contents and Delivery): Information about the “Goodbye Letter” has been updated for the first mortgage, the repayable second mortgage, and the forgivable second mortgage. The section in its entirety:

In order to confirm an accurate notice of transfer of servicing, a “Goodbye Letter,” CBCMA requires a sample copy of the notice of transfer of servicing to be included in the loan package at time of delivery. This applies to all first mortgages.

The information of CBC Mortgage Agency’s contract Servicer (address, contact information, etc.) to be used for the notice of transfer of servicing, the “Goodbye Letter” for the first mortgage, may be found in sections 12.3.3 (1st Mortgage Contract Servicer General Contact Information), 12.3.4 (1st Mortgage Contract Servicer General Mailing Address), 12.5.1 (1st Mortgage Payment Address), 12.5.2 (First Mortgage Overnight Delivery), and 12.7.1 (First Mortgages [Qualified Written Requests]). The general mailing address is included below:

   Essex Mortgage

ISAOA/ATIMA

PO Box 100077

Duluth, GA 30096

The primary, toll free customer service number is (855) 748-2722. Hours are Monday through Friday, 8:30am–5:00pm PT. Payments may also be made online at http://www.essexmortgage.com/MyAccount.

The information of CBC Mortgage Agency’s contract Servicer (address, contact information, etc.) to be used for the notice of transfer of servicing, the “Goodbye Letter” for the second mortgage (repayable seconds only), may be found in sections 12.3.5 (Repayable 2nd Mortgage Contract Servicer General Contact Information), 12.3.6 (Repayable 2nd Mortgage Contract Servicer General Mailing Address), 12.5.3 (Repayable 2nd Mortgage Payment Address), 12.5.5 (Overnight Deliveries 2nd Mortgages), and 12.7.2 (Second Mortgages [Repayable] [Qualified Written Requests]). The general mailing address is included below:

   ATTN: Cashiering

2100 SE 17th Street #112

Ocala, FL 34471

The primary, toll free customer service number is (888) 892-0881. Hours are Monday through Friday, 8:30am–5:00pm PT. Payments may also be made online at http://www.essexmortgage.com/MyAccount.

CBC Mortgage Agency’s address and contact information to be used for the notice of transfer of servicing, the “Goodbye Letter” for the second mortgage (forgivable seconds only), is as follows:

   CBC Mortgage Agency

ISAOA/ATIMA

912 W Baxter Drive, #150

South Jordan, UT 84095

The primary, toll free customer service number is (866) 563-3507. Hours are Monday through Friday, 8:00am–5:00pm MST. Payments do not apply for forgivable seconds.

12.2 (CBCMA Codes): The MERS ORG ID number was incorrectly changed in a previous update and has been restored to its original number; the new HUD Servicer ID has remained. In addition, instructions have been added to ensure correct use of these codes.

• MERS ID: 1014821 (for TOS and TOB transfers on 1st and 2nd Mortgages in MERS)
• FHA ID: 9413-00000-8 (for transfer of Beneficiary rights in FHA Connection)
• NMLS ID: 1186381
• HUD Servicer ID: 00772-000-4 (for transfer of Servicing rights in FHA Connection)
• CBCMA EIN: 46-2780478

12.3 (Contact Information): This section has been updated with contract Servicer information, which created four new sections: 12.3.3 (1^st Mortgage Contract Servicer General Contact Information), 12.3.4 (1^st Mortgage Contract Servicer General Mailing Address), 12.3.5 (Repayable 2^nd Mortgage Contract Servicer General Contact Information), 12.3.6 (Repayable 2^nd Mortgage Contract Servicer General Mailing Address).

12.3.3 (1st Mortgage Contract Servicer General Contact Information)

   Essex Mortgage

Website: http://www.essexmortgage.com/MyAccount

Email: support@myessexmortgage.com

Toll Free Numbers:

Customer Service: 855-748-2722

Collections/Payment Assistance: 855-775-2931

Loss Mitigation or SPOC: 855-766-6540

Foreclosure Team: 855-781-3901

Property Tax Team: 833-662-0238

Property Tax Fax Number: 817-310-7507

Insurance Team: 833-811-3064

12.3.4 (1st Mortgage Contract Servicer General Mailing Address)

   Essex Mortgage

ISAOA/ATIMA

P.O. Box 100077

Duluth, GA 30096

12.3.5 (Repayable 2nd Mortgage Contract Servicer General Contact Information)

Essex Mortgage

Website: http://www.essexmortgage.com/MyAccount

Email Address: loanservicing@essexmortgage.com

General Contact Number: 888-892-0881

12.3.6 (Repayable 2nd Mortgage Contract Servicer General Mailing Address)

   ATTN: Cashiering

2100 SE 17th Street #112

Ocala, FL 34471

12.4.3 (Mortgagee Clause): The mortgagee clause for first and second mortgages (repayable and forgivable) has been updated.

   Essex Mortgage

ISAOA/ATIMA

PO Box 29411

Phoenix, AZ 85038-9411

12.5 (Borrower Payment Addresses): This section has been updated with Contract Servicer information: 12.5.1 (1^st Mortgage Payment Address), 12.5.2 (1^st Mortgage Overnight Delivery), 12.5.3 (Repayable 2^nd Mortgage Payment Address), 12.5.5 (Overnight Deliveries 2^nd Mortgage). Section 12.5.4 (Forgivable 2^nd Mortgage Payment Address) is included for consistency, though its content has not changed.

12.5.1 (1^st Mortgage Payment Address)

   Essex Mortgage

ISAOA/ATIMA

PO Box 105178

Atlanta, GA 30348-5178

12.5.2 (1st Mortgage Overnight Delivery)

   ATTN: Lockbox 105178 Services – Essex

3585 Atlanta Avenue

Hapeville, GA 30354-1705

12.5.3 (Repayable 2^nd Mortgage Payment Address)

   ATTN: Cashiering

2100 SE 17th Street #112

Ocala, FL 34471

12.5.4 (Forgivable 2^nd Mortgage Payment Address)

   CBC Mortgage Agency

ISAOA/ATIMA

912 W Baxter Drive, #150

South Jordan, UT 84095

12.5.5 (Overnight Deliveries 2^nd Mortgages)

   ATTN: Cashiering

2100 SE 17th Street #112

Ocala, FL 34471

12.6 (Wiring Instructions [First Mortgages]): This is a new section with information regarding wiring.

12.6.1 (Forwarded Payments—Payment Clearing)

   Beneficiary Name: ServiceMac, LLC Bank

Name: Wells Fargo

City, State: Atlanta, GA

Beneficiary Account #: 4728377680

ABA Routing #: 121000248

ATTN: Reference to transaction, Company Name or loan number

12.6.2 (Forwarded Payoffs—Payoff Clearing Beneficiary)

   Name: ServiceMac, LLC

Bank Name: Wells Fargo

City, State: Atlanta, GA

Beneficiary Account #: 4749659454

ABA Routing #: 121000248

ATTN: Reference loan number(s)

12.7 (Qualified Written Requests): This is a new section with information regarding qualified written requests for both first and second (repayable) mortgages.

12.7.1 (First Mortgages)

Qualified Written Requests (QWRs) are required to be submitted to the address listed below. When Essex Mortgage is in receipt of a Qualified Written Request (as defined by RESPA), an acknowledgment notice is sent within five (5) business days.  We will respond to you within thirty (30) business days of receipt of your written notice, unless otherwise defined by RESPA guidelines.

   Essex Mortgage

ISAOA/ATIMA

PO Box 100078

Duluth, GA 30096

12.7.2 (Second Mortgages [Repayable])

Qualified Written Requests (QWRs) are required to be submitted to the address listed below. When Essex Mortgage is in receipt of a Qualified Written Request (as defined by RESPA), an acknowledgment notice is sent within five (5) business days.  We will respond to you within thirty (30) business days of receipt of your written notice, unless otherwise defined by RESPA guidelines.

   ATTN: Customer Care

2100 SE 17th Street #112

Ocala, FL 34471

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12/22/2020

All policy changes and updates are linked to the appropriate section below. These policy changes are effective 12/22/2020 unless otherwise noted. These updates are additional to the updates published on 12/21/2020.

Additionally, CBCMA has compiled all of its announcements related to COVID-19 into one section immediately following the Recent Updates and Announcements section in the Correspondent Lending Guide. To review the program guidelines changes made December 21 or earlier, please follow this link to the archived Program Guidelines.

Many servicing-related updates were made recently, requiring this additional announcement. These changes impact both First and Second Mortgage Servicing.

In an effort to simplify the servicing process for borrowers, CBC Mortgage Agency has contracted with a Master Servicer to service loans sold to CBCMA going forward. On first mortgages, this servicer will assume the servicing burden the moment a loan is sold to CBCMA so that borrowers do not experience two servicing transfers within a short period of receiving their loan. Upon implementation, transfer of the first mortgage will happen only once, when CBCMA purchases the loan.

Second mortgages follow a slightly different process than first mortgages since they are owned by CBCMA the moment they are created. (The correspondent advances funds on behalf of CBCMA, the government entity, at closing). Second mortgages drawn through CBCMA’s document service provided free to correspondents will show the servicing address as the Master Servicer. Documents prepared by any other provider can either incorporate our Master Servicer when the documents are prepared or the servicing on the second can be transferred to Essex Mortgage when CBCMA reimburses the correspondent for the funds advanced to the borrower on behalf of CBCMA at closing.

Beginning as soon as possible, but NO LATER THAN JANUARY 31, 2021, when a loan is purchased/reimbursed by CBCMA, please transfer servicing rights to our Master Servicer.

These updates have changed many sections of our program guidelines. In an effort to be thorough and comprehensive, here are all the changes made (in detail):

5.34.4 (Flood Certificates):

All Programs: Any flood certification from a valid vendor is acceptable as long as the flood certification in the file matches the appraiser’s flood information; this must include a life of loan certification. If there is a discrepancy between the two, CBCMA will pull a CoreLogic flood certificate and bill the correspondent the $15 fee on the PA.

All FHA Programs: Please note that a property is not eligible for FHA insurance if a residential building and related improvements to the property are located within SFHA Zone A (a Special Flood Zone Area) of Zone V (a coastal area) and insurance under the National Flood Insurance Program (NFIP) is not available in the community.
A property is not eligible for FHA insurance if the improvements are or are proposed to be located within a Coastal Barrier Resource System (CBRS).
For more information, please refer to FHA 4000.1.

First Mortgage: Flood certifications must be from CoreLogic and Service Link; this must include a life of loan certification. If the correct flood certificate is not present, CBCMA will pull a CoreLogic flood certificate and bill the correspondent the $15 fee on the PA.

7.22 (Documentation—General Requirements): A bullet point in the original section was altered.

• Life of Loan flood certificate from a valid vendor
  • In some cases we will require the originator to transfer this certificate; if required, this will be found in the due diligence conditions prior to purchase
  • First mortgage flood certificates must be from CoreLogic and Service Link

10.2 (Mortgage Electronic Registration Systems [MERS]): The MERS ORG ID number was updated (1014821).

11.4.1 (Loan Package Contents and Delivery): Information about the “Goodbye Letter” has been updated for the first mortgage, the repayable second mortgage, and the forgivable second mortgage. The text is included in its entirety below.

In order to confirm an accurate notice of transfer of servicing, a “Goodbye Letter,” CBCMA requires a sample copy of the notice of transfer of servicing to be included in the loan package at time of delivery. This applies to all first mortgages.
The information of CBC Mortgage Agency’s Master Servicer (address, contact information, etc) to be used for the notice of transfer of servicing, the “Goodbye Letter” for the first mortgage, may be found in sections 12.3.3 (1st Mortgage Master Servicer General Contact Information), 12.3.4 (1st Mortgage Master Servicer General Mailing Address), 12.5.1 (1st Mortgage Payment Address), 12.5.2 (First Mortgage Overnight Delivery), and 12.7.1 (First Mortgages [Qualified Written Requests]). The general mailing address is included below:

Essex Mortgage
Its Successors and/or Assigns ATIMA
PO Box 100077
Duluth, GA 30096

The primary, toll free customer service number is (855) 748-2722. Hours are Monday through Friday, 8:30am–5:00pm PT. Payments may also be made online at http://www.essexmortgage.com/MyAccount.

The information of CBC Mortgage Agency’s Master Servicer (address, contact information, etc) to be used for the notice of transfer of servicing, the “Goodbye Letter” for the second mortgage (repayable seconds only), may be found in sections 12.3.5 (Repayable 2nd Mortgage Master Servicer General Contact Information), 12.3.6 (Repayable 2nd Mortgage Master Servicer General Mailing Address), 12.5.3 (Repayable 2nd Mortgage Payment Address), 12.5.5 (Overnight Deliveries 2nd Mortgages), and 12.7.2 (Second Mortgages [Repayable] [Qualified Written Requests]). The general mailing address is included below:

ATTN: Cashiering
2100 SE 17th Street #112
Ocala, FL 34471

The primary, toll free customer service number is (888) 892-0881. Hours are Monday through Friday, 8:30am–5:00pm PT. Payments may also be made online at http://www.essexmortgage.com/MyAccount.

CBC Mortgage Agency’s address and contact information to be used for the notice of transfer of servicing, the “Goodbye Letter” for the second mortgage (forgivable seconds only), is as follows:

CBC Mortgage Agency
Its Successors and/or Assigns ATIMA
912 W Baxter Drive, #150
South Jordan, UT 84095

The primary, toll free customer service number is (866) 563-3507. Hours are Monday through Friday, 8:00am–5:00pm MST. Payments do not apply for forgivable seconds.

12.2 (CBCMA Codes): The MERS ORG ID number was updated, and a HUD Servicer ID was added.

• MERS ORG ID: 1014821
• HUD Servicer ID: 00772-000-4

12.3 (Contact Information): This section has been updated with Master Servicer information, which created four new sections: 12.3.3 (1st Mortgage Master Servicer General Contact Information), 12.3.4 (1st Mortgage Master Servicer General Mailing Address), 12.3.5 (Repayable 2nd Mortgage Master Servicer General Contact Information), 12.3.6 (Repayable 2nd Mortgage Master Servicer General Mailing Address).

12.3.3 (1st Mortgage Master Servicer General Contact Information)

Essex Mortgage
Website: http://www.essexmortgage.com/MyAccount
Email: support@myessexmortgage.com
Toll Free Numbers:

• Customer Service: 855-748-2722
• Collections/Payment Assistance: 855-775-2931
• Loss Mitigation or SPOC: 855-766-6540
• Foreclosure Team: 855-781-3901
• Property Tax Team: 833-662-0238
• Property Tax Fax Number: 817-310-7507
• Insurance Team: 833-811-3064

12.3.4 (1st Mortgage Master Servicer General Mailing Address)

Essex Mortgage
Its Successors and/or Assigns ATIMA
P.O. Box 100077
Duluth, GA 30096

12.3.5 (Repayable 2nd Mortgage Master Servicer General Contact Information)

Essex Mortgage
Website: http://www.essexmortgage.com/MyAccount
Email Address: loanservicing@essexmortgage.com
General Contact Number: 888-892-0881

12.3.6 (Repayable 2nd Mortgage Master Servicer General Mailing Address)

ATTN: Cashiering
2100 SE 17th Street #112
Ocala, FL 34471

12.4.3 (Mortgagee Clause): The mortgagee clause for first and second mortgages (repayable and forgivable) has been updated.
Essex Mortgage
Its Successors and/or Assigns ATIMA
PO Box 29411
Phoenix, AZ 85038-9411

12.5 (Borrower Payment Addresses): This section has been updated with Master Servicer information: 12.5.1 (1st Mortgage Payment Address), 12.5.2 (1st Mortgage Overnight Delivery), 12.5.3 (Repayable 2nd Mortgage Payment Address), 12.5.5 (Overnight Deliveries 2nd Mortgage). Section 12.5.4 (Forgivable 2nd Mortgage Payment Address) will be included for consistency, though it has not changed.

12.5.1 (1st Mortgage Payment Address)

Essex Mortgage
Its Successors and/or Assigns ATIMA
PO Box 105178
Atlanta, GA 30348-5178

12.5.2 (1st Mortgage Overnight Delivery)

ATTN: Lockbox 105178 Services – Essex
3585 Atlanta Avenue
Hapeville, GA 30354-1705

12.5.3 (Repayable 2nd Mortgage Payment Address)

ATTN: Cashiering
2100 SE 17th Street #112
Ocala, FL 34471

12.5.4 (Forgivable 2nd Mortgage Payment Address)

CBC Mortgage Agency
Its Successors and/or Assigns ATIMA
912 W Baxter Drive, #150
South Jordan, UT 84095

12.5.5 (Overnight Deliveries 2nd Mortgages)

ATTN: Cashiering
2100 SE 17th Street #112
Ocala, FL 34471

12.6 (Wiring Instructions [First Mortgages]): This is a new section with information regarding wiring.

12.6.1 (Forwarded Payments—Payment Clearing)

Beneficiary Name: ServiceMac, LLC Bank
Name: Wells Fargo
City, State: Atlanta, GA
Beneficiary Account #: 4728377680
ABA Routing #: 121000248
ATTN: Reference to transaction, Company Name or loan number

12.6.2 (Forwarded Payoffs—Payoff Clearing Beneficiary)

Name: ServiceMac, LLC
Bank Name: Wells Fargo
City, State: Atlanta, GA
Beneficiary Account #: 4749659454
ABA Routing #: 121000248
ATTN: Reference loan number(s)

12.7 (Qualified Written Requests): This is a new section with information regarding qualified written requests for both first and second (repayable) mortgages.

12.7.1 (First Mortgages)

Qualified Written Requests (QWRs) are required to be submitted to the address listed below. When Essex Mortgage is in receipt of a Qualified Written Request (as defined by RESPA), an acknowledgment notice is sent within five (5) business days. We will respond to you within thirty (30) business days of receipt of your written notice, unless otherwise defined by RESPA guidelines.

Essex Mortgage
PO Box 100078
Duluth, GA 30096

12.7.2 (Second Mortgages [Repayable])

Qualified Written Requests (QWRs) are required to be submitted to the address listed below. When Essex Mortgage is in receipt of a Qualified Written Request (as defined by RESPA), an acknowledgment notice is sent within five (5) business days. We will respond to you within thirty (30) business days of receipt of your written notice, unless otherwise defined by RESPA guidelines.

ATTN: Customer Care
2100 SE 17th Street #112
Ocala, FL 34471

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12/21/2020

All policy changes and updates are referenced to the appropriate section below. These policy changes are effective 12/21/2020 unless otherwise noted.

Additionally, CBCMA has compiled all of its announcements related to COVID-19 into one section immediately following this Recent Updates and Announcements section in the Correspondent Lending Guide. To review the program guidelines changes made December 7 or earlier, please follow this link to the archived Program Guidelines.

Due to changing industry needs, we retired our FHA Classic product on October 1, 2020. CBCMA will no longer accept registrations for this program. The FHA Classic product will remain on our Product Matrix for reference purposes until January 1^st, 2021.

New COVID announcement, 20-22: Correspondents will be required to immediately repurchase a loan if, after CBCMA has purchased the loan, the correspondent authorizes a forbearance agreement without coordinating with CBCMA. To coordinate forbearance agreements, please reach out to servicing@chenoafund.org.

The Chenoa Fund Product Matrix has been reformatted to improve readability and information accessibility. The new Chenoa Fund Product Matrix will be posted at the same time that the FHA Classic product is removed from the Chenoa Fund Product Matrix (around the beginning of the new year).

We have two new sub-sections that will go under section 7.18 (Real Estate Taxes Due The Following Month After Loan Purchase): 7.18.1 (Existing Construction) and 7.18.2 (New Construction)

7.18.1 (Existing Construction): CBC Mortgage Agency recommends using the actual assessed property tax figure per the county’s assessment/tax rolls; however, if property taxes will increase or decrease significantly from the current assessment after purchase (e.g., the former owner had a senior citizen tax exemption), it is recommended that an estimated value be used that will result in the most likely payment for the borrower. The property tax value used for qualifying the borrower should be consistent throughout the file, including the 1003, AUS, CD, IEADS, and First Payment Letter.

7.18.2 (New Construction): CBC Mortgage Agency recommends using a property tax estimate based on multiplying the purchase price (less any homeowner’s exemptions) by the mill rates (the tax rates per the county website) that will be in effect in order to determine the payment; this will result in the least amount of payment variation once the property is assessed by the taxing authority. This property tax value (monthly tax payment) used for qualifying the borrower should be consistent throughout the file, including the 1003, AUS, CD, IEADS, and First Payment Letter.

We do understand that, due to local tax collection practices, property taxes may increase significantly during the borrower’s first year of homeownership, resulting in the need to prorate taxes at closing based on a much lower figure than what will need to be included in the borrower’s monthly payment. We also understand that, in calculating closing figures, the unassessed value may be used to lower the borrower’s cash to close and eliminate the collection of excessive tax escrow. In these circumstances, based on most document preparation services’ limitations, a First Payment Letter that does not match the 1003, CD, and initial IEADS may be used to reflect the most accurate payment to the borrower; however, the First Payment Letter must match the AUS qualification figures. In addition, a new IEADS reflecting the accurate collection and disbursements of tax payments should be included in the file along with an LOX from the lender.

The recently-introduced section 5.37 (Loss Payee Clause) is being merged with 7.24 (Hazard Insurance) as one of the section’s bullet points. The bullet points will now read as follows:

• For purchase transactions, CBC Mortgage Agency requires hazard insurance policy with a paid receipt for one (1) year or an invoice and sufficient funds collected to pay the invoice
• Even if a policy is issued for one (1) year, CBC Mortgage Agency requires proof that the premium for the year is paid in full

• • Proof may be in the form of a receipt signed by an authorized individual of the insurance company; otherwise, the premium is to be paid at closing and indicated on the HUD-1 Settlement Statement
  • The same premium as shown on the policy is reflected on either the paid receipt or HUD-1
• If, on the date of purchase of the mortgage loan by CBC Mortgage Agency, there are less than thirty (30) days to policy expiration, CBC Mortgage Agency requires a thirty-day binder or evidence that the policy has been renewed for one year
• Prior to purchase of the first mortgage and reimbursement of the second mortgage, the loss payee clause must be in the lender’s name and include the verbiage “Its Successors and/or Assigns ATIMA.” (ISAOA/ATIMA is an acceptable abbreviation of this verbiage.)
  • Alternatively, correspondents may use CBCMA’s loss payee clause on the second mortgage only. If this option is used, the second mortgage loss payee clause should be:

CBC Mortgage Agency ISAOA/ATIMA

912 W. Baxter, Suite 150

South Jordan, UT 84095

With the new Loss Payee Clause section moved, the new section 5.38 (Disaster Certificates) has become section 5.37.

Section 5.12 (Undisclosed Debt Monitoring and Soft-Pull Credit Refreshes) has been clarified. The 10-day period should refer to calendar days, not business days. The new text will read “ten (10) calendar days”.

Section 5.15 (Payment Shock) has had its last sentence reworded to clarify that alternative qualification requirements do not apply to borrowers with no present housing payment: “… borrowers in the 620–639 FICO band and with no current housing payment cannot use alternative qualification requirements, but are not required to meet payment shock requirements.”

We will no longer require a seller-signed CD, but we will still require a copy of the CD provided to the seller. This will affect the following sections:

5.34.8 (Seller’s CD): Reworded, “A copy of the CD provided to the seller at closing is required on all transactions.”

8.9 (CD and Settlement Documentation): The bullet point regarding the seller’s CD has been reworded, “Closing Disclosure provided to the seller at closing/Seller’s Transaction.”

The first sentence of the final paragraph has been reworded, “CBC Mortgage Agency requires the borrower’s or borrowers’ signatures on the Closing Disclosure provided at closing. CBC Mortgage Agency also requires a copy of the CD provided to the seller at closing, but it does not have to be signed.”

8.9.1 (Preparation of the Closing Disclosure for a Seller): Reworded, “For a purchase transaction, the settlement agent is required to provide the seller with the CD reflecting the actual terms of the seller’s transaction. The settlement agent may comply with this requirement by providing the seller with a copy of the same CD provided to the consumer (buyer) if it also contains information relating to the seller’s transaction. CBC Mortgage Agency does not require the seller’s signature on the CD containing both buyer and seller transactions, even if a separate seller-signed CD is not provided, but CBCMA will still require a copy of the CD provided to the seller at closing. Alternatively, the settlement agent may provide the seller with a separate disclosure including only the information applicable to the seller’s transaction on the CD. If the seller’s disclosure is provided in a separate document, the settlement agent will provide the correspondent with a copy of the CD provided to the seller; CBCMA will require a copy of this document, but it does not have to be signed. The settlement agent will provide the seller its copy of the CD no later than the day of consummation.”

Pairing with the above, we will require the final settlement ALTA statement, which must be signed by the settlement agent. This has been added to the list of required documents in section 7.22 (Documentation—General Requirements).

Section 7.22.3 (Loans Where Property Taxes Are Due the Following Month After Purchase) has been deleted. The same information can be found in section 7.18 (Real Estate Taxes Due The Following Month After Loan Purchase) in more detail.

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