March 2, 2020: Chenoa Fund Correspondent Newsletter

In this Issue

In the newsletter we seek to provide you with important information about Chenoa Fund. In this issue, find:

  1. CBC Mortgage Agency Releases Guidelines 8.3
  2. CBC Mortgage Agency On The Road
  3. Join Chenoa Fund on Instagram
  4. Chenoa Fund in the News
  5. Chenoa Fund Blog Posts
  6. Marketing Resources: DPA Seminar and Lunch-n-Learn Flyers

  

CBC Mortgage Agency Officially Published its Monthly Update to the Official Guidelines on February 14, 2020

 CBC Mortgage Agency announces Correspondent Lending Guide version 8.3.

 

  • 5.12 and 7.22 were updated to clarify our policy regarding the soft pull credit refresh requirement. We do require a tri-merge/three bureau soft pull credit refresh, dated within ten days of the note date, or evidence of enrollment in a credit monitoring service through this time period.
  • In 5.15, we introduced a relaxed policy regarding borrowers without a housing history in the 620–639 range. Previously, borrowers in this category could not exceed a 43% backend ratio. Now, borrowers can go up to 45% on the backend.
  •  In 5.17, we amended our LOE requirement for borrowers with no present housing payment. Now, in place of the LOE, we allow a VOR. For borrowers with a housing payment in the FICO range of 620–639, we will also require a VOR.
  • 5.27 now has a clarification regarding our LTV policy. Borrowers may increase their minimum required investment (down payment) by putting down additional funds above and beyond the assistance received from Chenoa Fund as long as the loan-to-value ratio does not go below 90%.
  •  In 5.28, an overlay was removed. In version 8.2 of this Guide, DACA recipients were not considered eligible for our conventional products. Now, DACA recipients are allowed on conventional products, per CBCMA’s interpretation of FNMA guidelines—this was updated for consistency. Even so, CBCMA relies on our correspondent partners to document lawful residency in accordance with FNMA and FHA guidance.
  • 7.20 now has a link to the principal reduction form provided by CBCMA.
  • 7.22 now includes another item on the “Documentation – General Requirements” list: the Closing Protection Letter. While the Closing Protection Letter was not included on the list previously, it was still a required document.
  • 8.3 now emphasizes that loans must be current at the time of purpose.
  •  8.8.1 was clarified, and now emphasizes that the down payment assistance funds must be identified as coming from “CBC Mortgage Agency 2nd Lien.”
  •  In 10.3, it was updated that, effective immediately, both holder and servicing rights need to be transferred to CBCMA in FHA Connection immediately upon sale of the loan to CBCMA. Previously, only holder rights were required to be transferred to CBCMA in FHAC. As CBCMA is now an authorized servicer in FHAC, we will require that the servicing rights be transferred as well.

 

CBC Mortgage Agency On The Road

They say February is the border between Winter and Spring, and for us… it’s the border between tax refunds and homebuyer season… we can’t wait! Things are starting to ramp up for the busy season, and our trips across the country have been nothing short of incredible these past few weeks. 

 

Celebrating Black History Month in a Historic Way: 

On February 18th, 2020, CBC Mortgage Agency’s UHOUSI initiative hosted its 2nd event of the year and circled around Black History month and homeownership. With over 200 people in attendance, Dr. Alveda C King Bishop and Bishop Harry R Jackson delivered messages of hope and celebration. See one of our own, Emenyo Segbefria (also more commonly known as “E”) with Dr. King:

 

You can read more about the event in the articles below:

Atlanta Daily World: Alveda C. King and Bishop Harry R. Jackson partner with Black History Month Homeownership Workshop

The Atlanta Voice: King and Jackson African American Homeownership must be a focus during Black History Month

 

Hey Batter Batter, Hey Batter Batter, SWING! 

National VP of Program Development, Matt Pettit, and Founder, Todd Ludlow, spent some time in Arizona this week meeting with some of our largest lender partners, working on new programs that will help the state of Arizona and many others. We have made a few internal changes that have made these new programs possible, and we’re excited to begin rolling those out over the next 90 days.

For any baseball fans, we didn’t have time to make it to a spring training game, but we had some pretty great views of the three main fields in Arizona. Green has never looked better! 

 

 Join Chenoa Fund on Instagram

Chenoa Fund can now be found on Instagram. Follow and keep up-to-date with the latest happenings.

 

View this post on Instagram

 

8 Ways a Buyers’ Agent Can Make a Difference. Up on the blog today! #linkinbio

A post shared by Chenoa Fund (@chenoafundofficial) on

 

 Chenoa Fund in the News

The following articles have recently mentioned Chenoa Fund, CBCMA,or the Cedar Band Corporation in the past several weeks.

 

 

 Chenoa Fund Blog Posts

The following articles have recently been posted to the Chenoa Fund blog.

 

February 12, 2020

  

February 19, 2020

 

 Marketing Resources: DPA Seminar and Lunch-n-Learn Flyers

In this issue we would like to highlight DPA Seminar and Lunch-n-Learn Flyers and associated Door Hangers in Marketing Resources.

 

When you go to marketing resources scroll to these sections:

  • DPA Seminar and Lunch-n-Learn Flyers (Lenders)
  • DPA Seminar and Lunch-N-Learn Door Hangers (Lenders) 

 

 

The post March 2, 2020: Chenoa Fund Correspondent Newsletter appeared first on Chenoa Fund – Down Payment Assistance.

Should Real Estate Agents Consider Down Payment Assistance Programs for Helping Homebuyers

As a real estate agent, your homebuyers have many choices when it comes to financing the purchase of a home. One such choice is Down payment assistance (DPA), a key product that credit worthy, low-income homebuyers are choosing to realize realizing their dream of owning a home.

 

Throughout the United States, real estate agents are learning that working with lenders who represent Chenoa Fund DPA benefits them when listing and financing homes for their clients. In this article we are going to introduce just how critical DPA is for the homebuyer and ask you to consider DPA products as a way to increase your opportunities in the communities you serve.

 

Advancing its efforts to help more Americans access affordable housing, CBC Mortgage Agency (CBCMA) has released a national down payment assistance study that documents DPA’s vital role as a bridge to sustainable homeownership.

 

The study, conducted nationwide over the summer of 2019, measured the impacts of DPA through the personal experiences of lenders and borrows. The study can be viewed at: https://chenoafund.org/lender/2019-state-of-down-payment-assistance-report/

 

Among other findings, the study revealed that more than nine out of ten surveyed homebuyers would not have been able to purchase a home without down payment assistance.

 

The study also found that more than half of surveyed buyers were racial or ethnic minorities, and that more than one-third of all borrowers who received DPA are the first in their family to buy a home.

 

The study was done to illuminate the importance of DPA to lenders and borrowers across the country, and its findings are compelling. It’s clear that, without DPA, millions of Americans would be shut out of the homebuying market. With it, creditworthy buyers and their families can reap the many benefits of homeownership, which creates healthier communities and other positive outcomes for our nation.

 

The study queried 735 lenders and more than 1,100 borrowers, asking a series of questions about the importance of DPA, as well as their overall homebuying experience.

 

Respondents cited multiple factors when asked how the availability of DPA had affected their lives:

  •  Nearly half of all buyers said that saving for a down payment had been the principal reason they had delayed a house purchase.
  • A significant portion of respondents said that, for single parents, DPA is the only vehicle that makes homebuying possible.
  •  More than nine out of ten borrowers who used DPA to obtain a loan said they considered their mortgage “affordable.”
  •  Lenders said DPA was particularly helpful for buyers carrying student loan debt. They also said many of their clients had been paying more in rent than the cost of their new monthly mortgage.

 

What Lenders Are Saying

The following sample responses reflect the majority opinions of lenders in the study.

 

“Chenoa Fund provides a great program and offers an outstanding loan option for homebuyers that are unable to provide a full down payment but able to afford a new home. This allows for homeownership for people who would otherwise have to rent and not provide a benefit to the communities, nor themselves and their families. The program is a much better program than our local program offers such as CDA and MMP program.”—Scott Nortman

 

________________

 

“Down payment is the biggest challenge my clients face. My clients have good jobs and have seen their income rise with the better economy, but student loans and other debts continue to make it hard for them to save money to buy a home. Without programs like Chenoa Fund, these people might have to wait years to become homeowners. Instead, they get a fair rate and payment and a chance to take advantage of the strong housing market.”—Jeffrey E Nunley

 

 “My minority clients work multiple low-paying jobs and support their families while paying high rent; this DPA program allows them the opportunity to achieve the American Dream while building wealth for them and their families. Losing this program will financially hurt this segment of our population.” —Kathren J Rosales

 

________________

 

“This program allowed a Mexican immigrant family who did not have access to other down payment assistance programs . . . They had been working and working, cleaning up credit, trying to build savings, everything they could do to get into a home, but the housing costs just kept creeping up, and every time they took one step forward, the market took them one step back. This niche program is designed to catch the people who are falling between the cracks of traditional down payment assistance, and allows them to get their foot in the door on properties instead of always playing catch-up to a target advancing at the same rate.” —Michael Distad

 

 

________________

 

”This program is important to every single borrower it helps. We have used this product on a single borrower who not only needed it but deserved it. I have had many borrowers who we helped get into homeownership with the Chenoa Fund program, who start crying at closing because they never thought they could own their own home. Especially helping single mothers get into a home for their families, so they don’t have to move every year.” —Rebecca Skiles

 

 

What Borrowers Are Saying

The following sample responses reflect the majority opinions of borrowers in the study.

 “My husband and I have rented our whole lives together (twenty-six years), and we were so excited when Chenoa Fund made it possible to finally own a home! We made every sacrifice necessary to get the house of our dreams. They made sure we could financially afford the home and had us take a class on how to stay financially stable so that we can keep our home. We were so ready for this step, and we have never been happier with our beautiful home.” —Bonnie Johnson

 

________________

 

“I am very appreciative of this program. Without this help, I would not have been able to buy my home. I live paycheck to paycheck, and it’s very hard to save money. With this program I now pay the same I was paying for rent but the home is mine.” —Elizabeth Allende

 

________________

 

“Our small family has been beyond thrilled with the first nine months of homeownership, and we couldn’t have done it without your assistance! As a child, I was never blessed with a stress-free environment, or even a guaranteed place to call home. Thanks to the Chenoa Fund, it puts my mind at ease knowing my disabled husband and toddler will never have to think or wonder where home will be next month. They’ll never have to choose between a full belly or a warm blanket, and I can’t thank you enough for that! Let alone, the accomplishment one feels from owning their first home. Thank you, Chenoa Fund, from the bottom of our hearts!” —Holly Dockstader

 

________________

 

“At the time I started looking for a house, me and my family were living in a dangerous neighborhood. A lot of break-ins and robberies started taking place in the community. I have four kids and I was so afraid for their safety. I had just landed a new job and didn’t have enough money saved just yet to make a down payment. By being able to receive this fund which was definitely a gift from God. I moved my family to a new community which was much safer and quiet.” —Carl Williams

 

________________

 

“Owning a home makes me feel as [if] I belong somewhere. I moved from an unsafe apartment building to a cute little house I can call my own. The Chenoa Fund program made it possible for me to buy a home in a neighborhood that’s much safer for me.” —Cindy Rhoads

________________

 

 “I feel it’s a dream to some, a dream that many people would not be able to achieve without this type of [program]. I’m a single mother of two that participated in the Section 8 program when my eldest child was younger. I was able to attend my local community college and obtain a degree which significantly increased my income. Without the down payment assistance, I would not have been able to purchase my first home, despite nearly tripling my income since becoming a nurse. I was not able to save enough money for a significant down payment.”

“Programs like this give people, that defeat the odds of poverty, an opportunity to achieve home ownership. I am grateful a program like this exists; it has made my dream of home ownership a reality.” —Doni Anders

 

 

Chenoa Fund—The Nationwide Down Payment Assistance Program

At CBC Mortgage Agency https://chenoafund.org/, we offer Chenoa Fund, a down payment assistance program that provides DPA in the form of second mortgages. We offer five different second mortgage products, each with their own individual underwriting requirements and guidelines, in an effort to provide options to borrowers of any income and most DTIs. Our options include products for both FHA and conventional loans; some of our products include 0% interest rates and no monthly payments. 

 

  • Click here  to find an approved Chenoa Fund lender.
  • Click here to become an approved a Chenoa Fund Lender

 

The post Should Real Estate Agents Consider Down Payment Assistance Programs for Helping Homebuyers appeared first on Chenoa Fund – Down Payment Assistance.

8 Ways A Buyers’ Agent Can Make A Difference

It’s a great privilege for real estate agents to help homebuyers with one of the largest financial decisions they are likely to ever make, buying a home. Homebuyers need a great real estate agent to help them navigate this important journey. They will have many big questions, particularly if they are new to the process. One important question you will be asked is just how you as the buyer’s agent are going to help them. Here are eight tips to consider when you answer how you will help the homebuyer.

 

You help get them pre-approved. A good agent has a reliable network of trusted resources, lenders, and other professionals involved in the buying and selling process. Your homebuyer needs to be pre-approved, so they know how much they can spend. The real estate agent should be able to use his or her contacts to help get this done.

 

You help them find the home. One of the real estate agent’s most important jobs is to help the homebuyer clarify their wants and needs. A good agent will provide clients with a comprehensive questionnaire and/or ask a lot of questions to help them pinpoint their home buying criteria. As the agent, you need to be able to tell your client whether their list of “needs” is realistically affordable in their area of choice. The best real estate agents will be great counselors on locations, neighborhoods, schools, and other factors.

 

You help negotiate the right offer. The best agents analyze the value of the home their clients want to buy. They should have in-depth knowledge of all factors that affect the price of the home. The homebuyer will expect you to advise them from the initial offer and how to proceed based on how the seller responds.

 

You help pick a home inspector. Not all home inspectors are alike. Established agents should know who the best inspectors are and help the homebuyer choose the one who will give them the best picture of the condition of the home they are seeking to buy. In addition, you should be prepared to help your client with any additional inspections that may apply to the home they look at, including radon, mold, water, lead paint, and so forth.

 

You attend the home inspection. The best inspectors have been known to miss things and fail to accurately convey the information they find. A good agent can attend the home inspection can help their clients go through the inspector’s report and provide counsel on what should be brought to the sellers attention.

 

You help negotiate home inspection repair requests. The home inspection information can provide the homebuyer with leverage in negotiations. Based on information in the report, you can help your client request repairs, and sometimes get other concessions based on problems found in the inspection. As the realtor, you should be qualified to help negotiate these requests because you know how each issue affects the value of the home.

 

You stand as a key point of communication. A good agent keeps everyone informed, knows how to measure the importance of information, and knows who needs what and when and how to keep things moving forward.

 

You stay on top of the buyer loan process. Mortgage mistakes can be quite common, especially among first-time homebuyers. Great agents stay on top of every aspect of the purchase, including monitoring the buyer’s mortgage commitment. Agents make sure buyers understand they need to maintain their current credit status and how to protect their loan approval—for example, by not making any large purchases or taking out any loans before you closing on a home.

 

You help finalize loose-ends at closing. Selling a home is full of details. Good agents work to make sure the closing takes place without a problem. No detail is too small. 

 

Remember, that while answering these questions may be old hat for you, this is a new experience for many homebuyers. Your sincere and thoughtful answers will be the beginning of a great opportunity to help your client throughout the homebuying experience not just the first mortgage but also any DPA-relevant loans that affect the mortgage status.

 

At Chenoa Fund ,we offer DPA in the form of second mortgages. We offer five different second mortgage options, each with their own individual underwriting requirements and guidelines, in an effort to provide options to borrowers of any income and any DTI. Some of our options include products for both FHA and Conventional loans; some features for our products include zero percent interest rates and no monthly payments.  Click here  to find an approved Chenoa Fund lender.

The post 8 Ways A Buyers’ Agent Can Make A Difference appeared first on Chenoa Fund – Down Payment Assistance.

February 18, 2020: Chenoa Fund Correspondent Newsletter

Introduction to Newsletter

In the newsletter we seek to provide you with important information about the Chenoa Fund. In this issue, find:

  1. CBC Mortgage Agency Releases Guidelines 8.3
  2. CBCMA Correspondent Lender Marketing and Social Media Policy
  3. CBC Mortgage Agency On The Road
  4. Chenoa Fund in the News
  5. Chenoa Fund Blog Posts
  6. Join Chenoa Fund on Instagram
  7. Chenoa Fund Launches LenderConnect
  8. Marketing Resources: Door Hangers

CBC Mortgage Agency Releases Guidelines 8.3

CBC Mortgage Agency officially published its monthly update to the official guidelines on February 14, 2020

 

We’re excited to announce Correspondent Lending Guide version 8.3.

 

This update brings several important changes to our policies and procedures. We hope these changes provide increased ease of use for Chenoa Fund down payment assistance.

  • 5.12 and 7.22 were updated to clarify our policy regarding the soft pull credit refresh requirement. We do require a tri-merge/three bureau soft pull credit refresh, dated within ten days of the note date, or evidence of enrollment in a credit monitoring service through this time period.
  • In 5.15, we introduced a relaxed policy regarding borrowers without a housing history in the 620–639 range. Previously, borrowers in this category could not exceed a 43% backend ratio. Now, borrowers can go up to 45% on the backend.
  • In 5.17, we amended our LOE requirement for borrowers with no present housing payment. Now, in place of the LOE, we allow a VOR. For borrowers with a housing payment in the FICO range of 620–639, we will also require a VOR.
  • 5.27 now has a clarification regarding our LTV policy. Borrowers may increase their minimum required investment (down payment) by putting down additional funds above and beyond the assistance received from Chenoa Fund as long as the loan-to-value ratio does not go below 90%.
  • In 5.28, an overlay was removed. In version 8.2 of this Guide, DACA recipients were not considered eligible for our conventional products. Now, DACA recipients are allowed on conventional products, per CBCMA’s interpretation of FNMA guidelines—this was updated for consistency. Even so, CBCMA relies on our correspondent partners to document lawful residency in accordance with FNMA and FHA guidance.
  • 7.20 now has a link to the principal reduction form provided by CBCMA.
  • 7.22 now includes another item on the “Documentation – General Requirements” list: the Closing Protection Letter. While the Closing Protection Letter was not included on the list previously, it was still a required document.
  • 8.3 now emphasizes that loans must be current at the time of purpose.
  • 8.8.1 was clarified, and now emphasizes that the down payment assistance funds must be identified as coming from “CBC Mortgage Agency 2nd Lien.”
  • In 10.3, it was updated that, effective immediately, both holder and servicing rights need to be transferred to CBCMA in FHA Connection immediately upon sale of the loan to CBCMA. Previously, only holder rights were required to be transferred to CBCMA in FHAC. As CBCMA is now an authorized servicer in FHAC, we will require that the servicing rights be transferred as well.

 

You will also want to send the MIC to CBCMA. CBCMA will transfer both the Holder and Servicing Rights into the names of our investors, when appropriate, following the close.

 

If there is a delay on this for any reason, please email finaldocs@chenoafund.org for assistance.

 

CBCMA Correspondent Lender Marketing and Social Media Policy

IMPORTANT: New Marketing Policy

All marketing materials or advertisements created with the intent of securing loans using Chenoa Fund outside of content provided to you by CBCMA must be reviewed and approved by CBC Mortgage Agency before being released or published. Requests for review and approval of lender marketing material should be submitted using this form here.

 

If CBCMA’s legal review team finds the submitted marketing materials to be non-compliant, requests for changes will be sent back to the correspondent lender. If the updated material containing the required changes is not received by CBCMA within seven days, then a new request will need to be submitted.

 

If a correspondent lender is found using marketing material that hasn’t been approved and/or is noncompliant, the lender may be subject to suspension from doing business with CBCMA. Any questions about compliance issues or marketing materials should be sent to lendermarketing@chenoafund.org.

 

CBC Mortgage Agency On The Road

CBC has been “wheels up” quite a bit this blustery February and the fun is just getting started! 

 

Our marketing team kicked off the month off with a tour of Facebook, working with them on ways to get around the lender advertising regulations on Facebook. We know this is a large issue for each of you, and in our LenderConnect editorial we’ll share some of that education there. We also spoke with them about their large contribution to affordable housing that they made at the end of 2019. More on that here

 

Thanks to a few of the agents at Keller Williams Silicon Valley for making this happen! 

 

In conjunction with our visit to Hacker Way, Tai Christensen, our Director of Governmental Affairs, represented CBC at the NAR Affordability Forum. This Forum works to identify and resolve the various factors that push American families away from becoming homeowners, and to close racial racial homeownership gaps. You can read their official statement about the event here.

 

Our next stop was the NAREB (National Association of Real Estate Brokers) Bet on Blalck Mid-Winter event. With over 200 African American agents, lenders, etc in attendance, the discussion around minority homeownership was top of the list. Nevada Attorney General Aaron Ford gave comments on the national increase of African American homeownership and his intentions to work nationally to keep that increase growing. 

 

We’ve got a busy 2nd half of the month heading to: 

 

  • UHOUSI in Atlanta with Bishop Broner and World of Faith Family Worship Cathedral (More on that event here
  • Arizona Builders Tour: Some of the leadership team will be in Arizona working with builders at the end of February. If you would like a quick stop in to your branch, reach out to lendermarketing@chenoafund.org

 

Chenoa Fund in the News

The following articles have mentioned Chenoa Fund, CBCMA, and/or the Cedar Band Corporation in the past several weeks.

February 11, 2020-National Mortgage Professional: CBC Reports Average Customer Gains $27,000 in Home Equity

February 11, 2012-Scotsman Guide: Downpayment assistance plans aid borrowers in cracking homeownership barriers

February 6, 2020-St. George News: Mortgage agency with Cedar City roots celebrating 5 years of providing down payment assistance

 

Chenoa Fund Blog Posts

February 12, 2020

8 Ways A Seller’s Agent Can Make A Difference

5 Quick Tips for Realtors to Get Listings Noticed Online

10 Characteristics of a Quality Mortgage Loan Officer

 

 February 3, 2020

What Lenders Should Tell Real Estate Agents about Down Payment Assistance Programs

5 Traits Real Estate Agents Need to Help Lower- to Moderate-Income Homebuyers

 

 Join Chenoa Fund on Instagram

Chenoa Fund can now be found on Instagram . Follow and keep up-to-date with the latest happenings.  The following is a sample post.

Chenoa Fund Launches LenderConnect

 

CBC Mortgage Agency is excited to announce LenderConnect which is sent every Wednesday. As you’ve probably seen, we’ve been beefing up our marketing efforts to better support our lenders.

 

As part of these efforts, LenderConnect was born. Each week there will be an email specific to providing marketing tools, tips, and tricks on how to better market our program. These emails will include:

  • Important company updates in regards to marketing
  • Free social media posts and text for your use
  • A marketing tip or trick to better reach your borrowers

 

Marketing Resources: Door Hangers 

Chenoa Fund has created a variety of high-quality marketing materials, such as postcards, flyers, door hangers, and yard signs, that you can use to create interest in Chenoa Fund. In this issue we would like to highlight Door Hangers in Marketing Resources. When you go to Marketing Resources scroll to these sections:

  •     DPA Door Hangers (Lenders)
  •     DPA Door Hangers (Lenders/Realtors)

 

 

 

The post February 18, 2020: Chenoa Fund Correspondent Newsletter appeared first on Chenoa Fund – Down Payment Assistance.

5 Quick Tips for Realtors to Get Listings Noticed Online

 

Real estate agents have a wide assortment of marketing tools that help elevate their listings and marketed properties. One such tool is the online listing.. When it comes to your listing, success is in the details. Here are a few tips for marketing online that, when done well, can make all the difference in getting a listing noticed and sold.

 

Learn and use good SEO. Take time to learn about using Search Engine Optimization (SEO) for your listings. Good SEO involves finding keywords or phrases that define your listing to your chosen market audience. These keywords and phrases usually include two to four words that clearly highlight the listing’s location (e.g, city, state, neighborhood) and type of home (e.g., type of home, bedrooms, brick); an example of a good SEO listing might be “4-bedroom rambler in Holiday,” or “2-story, red brick, single-family home, Sandy.” Use keywords in titles, listing descriptions, URL, social media, images and marketing materials. Think about the search terms your customer will use; in fact, you can even do a search online to see what comes up!

 

Develop and manage your email list. Learn about how to use email to put your listing in front of potential clients. Email is a marketing tool; it can be used effectively or ineffectively. You can achieve a lot by sending out a well-targeted email with an eye-catching headline, like “Just listed: 4-bedroom, 3-bath, 2-car garage rambler, Everton.” Additionally, emails with high-quality images catch attention better. 

 

Great photos that tell a story. Your listing photos tell the story and introduce the homebuyer to seeing themselves living in the home you are presenting. Many listings  are full of images that have been taken without much forethought to message that is being sent. Many try to save listing expenses by the using the mobile phone.  Mobile phones are great for selfies, but not for selling your listings. If you are taking the photos, invest in a good camera, take a class in listing photography, and study images used in listings to understand what sends a good message, or hire a professional who shoots listings on a full-time basis. In addition, consider adding photos that highlight the surrounding area, such as parks, schools, shopping, downtown areas, and more.

 

Take advantage of video or slideshow tours. Video and slideshow virtual tours are a great way to market your listings. You can use these to highlight compelling features about the property and the community, and to effectively brand you or your brokerage. When creating the video, you will need to clearly define who your target clientele is and what is most important for them. You will need your best images in the beginning of the video to “wow” your audience. You will want to highlight the prime selling points of the listing. If it makes sense, you will also want to show the local parks, schools, shopping, recreational areas and more; give the viewer a feeling of what it would be like to live in the community for a day.

If you lack photography skills, this is not a do-it-yourself venture. Often, the professionals who take photos for your listing can also create videos and slideshows.

 

Share your listing in social media. Social media is probably second nature to you. You may be already using social accounts like Facebook, LinkedIn, Twitter, Instagram, and Pinterest to alert your community about listings. Make sure your various profiles appear clean and are up-to-date across all of your networks. For a listing, use some of the great photography and video you have with a short description. Make sure you also ask your community to share your listings and provide tips on anyone who might be in the market to sell or buy a home. If you are new to social media as a real estate agent, take time to learn about what makes good content for sharing in addition to listings.

 

At Chenoa Fund,we offer DPA in the form of second mortgages. We offer five different second mortgage options, each with their own individual underwriting requirements and guidelines, in an effort to provide options to borrowers of any income and any DTI. Some of our options include products for both FHA and Conventional loans; some features for our products include zero percent interest rates and no monthly payments.  Click here to find an approved Chenoa Fund lender.

 

The post 5 Quick Tips for Realtors to Get Listings Noticed Online appeared first on Chenoa Fund – Down Payment Assistance.

What Lenders Should Tell Real Estate Agents about Down Payment Assistance Programs

 

Many real estate agents have the opportunity to help creditworthy low- to moderate-income individuals and families find homes. As a lender, you are undoubtedly seeking to form relationships with these realtors and want to educate them about DPA programs. Realtors can use DPA programs to help the homebuyer achieve the American dream of homeownership where homebuyers might otherwise be stopped by financial barriers. Do real estate agents in your community understand down payment assistance in all its forms?

 

Down payment assistance (DPA) programs provide assistance to low-income homebuyers who can’t make the down payment or pay the closing costs a mortgage requires. To help borrowers even further, some DPA programs include 0% interest rates, deferred payments, and forgivable loans. Many DPA programs will offer buyers upwards of tens of thousands of dollars, money that can be applied toward down payments, closing costs, principal reductions, repairs, etc. Typically, these DPA programs are offered by federal, state, and local government agencies, as well as by nonprofit organizations or employers.

 

Program guidelines can vary, but in most cases, applicants must be a first time homebuyer, defined as someone who hasn’t owned a home in the last three years. The applicant normally must occupy the property as their primary residence, and often the applicant must complete homebuyer education counseling, meet the requirements of the lender and the DPA guarantor, and meet program limits for household income and property price.

  

Below are descriptions of some of the most common forms of down payment assistance.

 

State and Local Grants and Programs

Many states and local governments offer help to first-time homebuyers. Local housing agencies—county or city—are also a useful resource. Community grant programs can often provide the best deals for low- to moderate-income homebuyers, in part because these programs are designed to encourage more people to buy and settle in their city limits.

 

Check your state or community website for information on housing grants and programs available in your area.

 

Employer Mortgage Assistance

Some employers provide their employees with mortgage assistance programs in a variety of forms.

 

A borrower may use these funds to cover all or part of the down payment or closing costs subject to the minimum borrower contribution requirements. Employer assistance funds are rarely allowed on a second home or an investment property.

 

Soft Second

A soft second mortgage combines a subsidized second mortgage with a traditional first mortgage to make housing more affordable for low- to moderate-income homebuyers. There are usually income restrictions limiting who is eligible.

 

One example is the Chenoa Fund DPA Edge: Soft Second Product. With this product, the borrower receives a 30-year term, 0% rate, no payment second mortgage. Borrowers must meet a minimum FICO score of 620 and have a qualifying income equal or less than 115% of the median income for the county in which the borrower will live. The loan is forgiven as soon as the borrower makes 36 consecutive on-time payments on the FHA first mortgage.

 

Repayable Second

Repayable down payment assistance programs provide buyers with the down payment they need now so they can buy a home sooner. The funds are delivered at closing.

 

One example is the Chenoa Fund DPA Edge: Repayable Second Product. This product has no income restrictions for buyers and offers two options for a repayable second. The borrower can choose a 10-year repayable second at a 0% interest rate, or a 30-year repayable second at a 5% interest rate. Borrowers must meet a minimum FICO score of 620.

 

Chenoa Fund—The Nationwide Down Payment Assistance Program

At Chenoa Fund, we offer DPA in the form of second mortgages. We offer five different second mortgage products, each with their own individual underwriting requirements and guidelines, in an effort to provide options to borrowers of any income and most DTIs. Our options include products for both FHA and Conventional loans; some of our products include 0% interest rates and no monthly payments. 

 

Click here to find an approved Chenoa Fund lender.

Click here to become an approved a Chenoa Fund Lender

The post What Lenders Should Tell Real Estate Agents about Down Payment Assistance Programs appeared first on Chenoa Fund – Down Payment Assistance.

February 3, 2020: Chenoa Fund Correspondent Newsletter

In the newsletter we will provide you with important information about Chenoa Fund. In this issue you will find:

  1. FHFA Announcement
  2. Program Guidelines 8.2 Published on January 15, 2020
  3. CBC Mortgage Agency on the Road
  4. Chenoa Fund News Releases
  5. Chenoa Fund in the News
  6. Chenoa Fund Blog Posts
  7. Marketing Resources Have Four Versions

FHFA Announcement

FHFA makes annual adjustments to the Conventional Loan Limits, and the 2020 Conventional Loan Limits have been announced. Additionally, HUD also announced that they were updating the FHA loan limits in 2020. Accordingly, CBCMA would like to formally confirm that we will be adhering to the updated 2020 Conventional Loan Limits as well as the updated 2020 FHA Loan Limits.

 

Program Guidelines 8.2 Published on January 15, 2020

CBC Mortgage Agency officially published its monthly update to the Program Guidelines on January 15, 2020

All previous guidelines can be found under Archive: Program Guidelines.

 

CBC Mortgage Agency On The Road

CBC Mortgage Agency went coast to coast this month meeting with new lenders, realtors, and homebuyers!

The first stop was Sacramento, CA, for our homebuyer event in conjunction with the UHOUSI project. With over 60+ interested homebuyers in attendance, there were several speakers who touched on the different aspects of making the leap to homeownership. CBCMA’s Tai Christensen spoke about how using down payment assistance makes the American Dream of homeownership possible.

 

Pastor Gouddeaux speaking to potential home buyers on down payment assistance

 

Next up, the team headed to Las Vegas for the IBS (International Home Builders Show). Corporate Account Executives’ Dominique and Emenyo met with home builders from all over the country and worked with them on how to offer Chenoa Fund to their buyers. We saw heavy attendance from Ohio, Texas, Georgia, Florida, and many more states from the south.

 

 

Our final stop for the month was the Big Apple for Inman Connect. A conference built for realtors, this show was amazing! With friends like Finance of America, Direct Link, and many others, it was great to meet with realtors from all over the country and educate them on the program. We connected with Presidents from each state from the National Association of Realtors and are looking forward to working with them to provide training on how to better equip their realtors with down payment assistance options.

 

 

We had a busy month on the road, but we’re excited to head to the following in February:

  • National Association of Realtors Affordability Forum (Washington, DC)
  • National Association of Registered Agents and Brokers (Las, Vegas, NV)

 

Have an event or training you think we should be at? Let us know at lendermarketing@chenoafund.org!

 

Be sure to follow our instagram to keep up with all the things happening at CBCMA!
(@chenoafundofficial)

Chenoa Fund News Releases

CBC Mortgage Agency made the following press releases over the past several weeks.

 

January 14, 2020-Press Release: CBC Mortgage Agency Applauds Congressional Black Caucus and Hispanic Caucus Letter Encouraging HUD to collect Individual FHA Loan Performance Data

 

December 23, 2019-Press Release: Cedar Band of Paiutes Lauds Bipartisan Letter Urging HUD to Follow Longstanding Tribal Consultation Policy

 

December 12, 2019-Press Release: Cedar Band of Paiutes Applauds New Resolution Calling for HUD to Consult with Tribes

 

December 10, 2019-Press Release: Cedar Band of Paiutes Applauds Sen. Tom Udall’s Remarks Reinforcing Sanctity of Tribal Consultations

 

December 9, 2019-Press Release: CBC Mortgage Agency Lauds Chairman Lacy Clay’s Questioning on Down Payment Assistance

Chenoa Fund in the News

The following articles have mentioned Chenoa Fund and/or CBC Mortgage Agency in the past several weeks.

 

January 29, 2020-MReport: Mortgage Agency Celebrates Five Years of Service

 

January 27, 2020-National Mortgage Professional Magazine (NMP): CBC Mortgage Agency Celebrates Five Year Anniversary

 

January 23, 2020-Whittier Daily News: FHA Commissioner Montgomery, leave down payment assistance alone

 

January 23, 2020-Orange County Register: FHA Commissioner Montgomery, leave down payment assistance alone

 

January 3, 2020-Mortgage Bankers Association (MBA): CBC Mortgage Agency Releases National Down Payment Assistance Study

 

December 22, 2019-Banker & Tradesman: Odd Lots: Don’t Let Clients Go Radio Silent

Chenoa Fund Blog Posts

January 30, 2020: As Seen in the Chrisman Report

 

January 29, 2020: How to Help Renters become Homebuyers with Down Payment Assistance

 

January 29, 2020: How to Spend $1 A Day to Generate More Mortgage Leads

 

January 29, 2020: How Realtors Can Spend $1 A Day to Generate More Leads

 

January 29, 2020: Five Tips on How to Engage Potential Hispanic Homeowners

 

January 24, 2020: Ten Questions Homebuyers Ask When Choosing a Loan Officer

Marketing Resources Have Four Versions

Chenoa Fund has created a variety of high-quality marketing materials (Click for Marketing Resources), including postcards, flyers, door hangers, and yard signs that you can use for creating interest in CBC Mortgage Agency (CBCMA) products and programs. Each PDF for Lenders has four versions that provide you with space for entering your contact information. Information includes:

  • Lending Partner
  • NMLS
  • Branch Location
  • Loan Officer
  • Phone
  • Email

This example shows the version that can include both lender and realtor information.

 

Click to download example on a program flyer.

CF3-Flyer-EdgeSoftSecond-LenderRealtorV1-printer_0319

 

The post February 3, 2020: Chenoa Fund Correspondent Newsletter appeared first on Chenoa Fund – Down Payment Assistance.

Five Tips on How to Engage Potential Hispanic Homeowners

The homeownership rate for Hispanics has jumped recently, a fact that could buoy the housing market for years, according to a recent Wall Street Journal1 article.

 

The homeownership rate of Hispanics is on the rise, according to a recent Wall Street Journal article. It was only three years ago that homeownership for this group was at a fifty-year low. Today, census data shows that it has risen 3.3%, which surpasses the homeownership growth rate of 1.3%. Further, while Hispanics account for only 18% of the U.S. population, they accounted for 65% of the homeowner gains. 

 

Some key factors in the gain were attributed to the Hispanic gains in income, education, and understanding of the U.S. mortgage market, as well as the increasing population of Millennial homebuyers. Some challenges that face Hispanic and other minority groups have been the lack of starter-home inventory and home affordability in concentrated areas. Despite what the WSJ describes as “a growing population of young Latinos increasingly eager to buy homes,” homeownership rates for this group remain well below non-Hispanics—47%, compared with the non-Hispanic 73%, in the first quarter of the year. The latest National Association of Hispanic Real Estate Professionals (NAHREP) State of Hispanic Homeownership Report, says this group accounts for 32.4% of overall U.S. household formation.3

 

While 55% of the nation’s Hispanic people live in Texas, California, and Florida, the Hispanic population of eleven other states has grown 10% since 2000: Connecticut, Rhode Island, Utah, Oregon, Washington, Idaho, Kansas, Massachusetts, Nebraska, Hawaii, and Oklahoma. Hispanic people will compose 56% of all new homebuyers by 2030, according to the Urban Institute.4

 

There appears to be an education and communication barrier between lenders and Hispanic borrowers. Hispanic consumers commonly believe that a minimum down payment to buy a home is 20 percent of the sales price. About 56 percent think it’s difficult to get a home loan in today’s environment, yet more than 80 percent think that owning a home is a good long-term investment. From this data, home ownership is a long-term goal for most Hispanic households, yet their perceptions about obtaining a loan keeps them from speaking with a loan officer, much less applying for a loan.

 

At Chenoa Fund, we see many correspondents who tailor their offerings to provide Hispanic buyers with down-payment assistance in the form of second mortgages, for the purpose of increasing affordable and sustainable homeownership, specifically for creditworthy, low- and moderate-income individuals.

 

Here are five tips on how you can reach the potential Hispanic homeowner and develop strong relationships:

 

1. Partner with Local Hispanic Organizations

In almost every city there are events and celebrations throughout the year for the Hispanic community and culture. You can support these local organizations by sponsoring events, attending luncheons, and participating in events. The NAHREP (National Association of Hispanic Real Estate Professionals, https://nahrep.org/) a resource with over 30,000 members, is a great match for lenders to connect with at a national or local chapter level. Reach out to these professionals and consider putting on a series of home buying seminars about first-time home buying, FHA loans, and other housing assistance programs.

 

2. Understand the Hispanic Homebuyer

It is important to understand the needs and profile of the Hispanic homebuyer and what sets them apart from other homebuyers. Many are bicultural, bilingual, and live in extended family situations that can include several generations. Hispanics are known to be brand loyal, tech-savvy, and 58 million strong. According to Forbes, half of the Hispanic community is under the age of 296. Hispanic Millennials make about 20% of Millennials, according to a Brookings Report5. As a bicultural group they can easily speak and read Spanish at home but just as easily watch a movie in English.

 

Start by speaking about the goal of homeownership and available product offerings though communication vehicles that communicate to a Hispanic audience. A Spanish-language radio ad may help you reach baby boomer grandparents, while a Snapchat filter can help you reach “il-linenials” or Hispanic Millennials. 

 

3. Include Hispanics in General Marketing Efforts

According to the Harvard Center for Housing Studies2, it is estimated that by 2025 three-quarters of all new US household formations will be minorities. When you think about creating marketing campaigns, you might be tempted to create a niche marketing campaign to reach Hispanics. Rather, it is recommended that you be inclusive in your general campaigns to reach the greater community you serve. Stay away from stereotyping. For example, use images that reflect varied ethnic cultures and races.

 

According to the Forbes article, more than half of the respondents said that they use English online, even if they generally spoke Spanish at home. While they consume content in English, this doesn’t mean you shouldn’t be making the effort to incorporate Spanish into your marketing campaigns. It was noted that 56% of Spanish-speaking Hispanics said that they were more loyal to companies that advertise in Spanish, which underscores the need for campaigns to connect with Hispanics in their own language. They continued by stating that it’s also important, in marketing, to transmit elements of Hispanic culture, even if it’s in English, because it makes individuals feel that you understand them and their cultural backgrounds. Social media represents an important touchpoint for Hispanic consumers, especially for much-sought-after Millennials, since almost 50% of Hispanic millennials said they had talked about a brand online with others or used a brand’s hashtag, compared to 17% of non-Hispanics. Brands should take care to use social media to cultivate brand loyalty among Hispanics.

 

4. Give Choices

It’s important to have loan officers in the office that can speak both Spanish and English. Many Hispanics prefer to speak Spanish instead of English, and there are many who buy homes who don’t speak English. On a website and mobile app, consider giving people a chance to review the webpage in English or Spanish. Your blogs and articles can also be printed in both languages. Always prominently include the phrase, “Se habla Espanol” on all media.

 

5. Consistently Invest in the Community

Create a plan and stick to it. If you are going to include the Hispanic community in your business development strategy, do not take the “one and done” approach. You need to be consistent and sincere in your outreach to develop long-lasting relationships throughout the year. Like any potential homebuyer, Hispanic homebuyers interact with those who are sincere and authentic in their communications. Enter new prospect information in your database and add them to your marketing campaign. Send them regular emails, newsletters, and tweets that cater to the Hispanic market.

 

 

The Hispanic community wants to be homeowners, yet many feel they just won’t be able to qualify. By using these strategies, you may begin to connect with the Hispanic audience to build a loyal relationship with long lasting dividends.

 

 

1. Wave of Hispanic Buyers Shores Up U.S. Housing Market, July 15, 2019

https://www.wsj.com/articles/wave-of-hispanic-buyers-boosts-u-s-housing-market-11563183000?mod=hp_lead_pos7

 

2. State of the Nation’s Housing report-2018

https://www.jchs.harvard.edu/state-nations-housing-2018

 

3. 2018 State of Hispanic Homeownership Report

https://nahrep.org/shhr/

 

4. Urban Institute

https://www.urban.org/sites/default/files/2000257-headship-and-homeownership-what-does-the-future-hold.pdf

 

5. Booking Report

https://www.brookings.edu/wp-content/uploads/2018/01/20180124_metro_millennialreport_pressrelease.pdf

 

6. Six Facts About The Hispanic Market That May Surprise You

https://www.forbes.com/sites/forbesagencycouncil/2018/01/09/six-facts-about-the-hispanic-market-that-may-surprise-you/#6ae2e5985f30

The post Five Tips on How to Engage Potential Hispanic Homeowners appeared first on Chenoa Fund – Down Payment Assistance.

As Seen in the Chrisman Report

January 27, 2020

I’m seeing a lot of discussion about the merits of down payment assistance programs (DPA) and it’s clear that there’s more to it than meets the eye. One important consideration is that many white families count on their relatives for assistance when coming up with a down payment to buy their homes. Average wealth among African American families is far less than for their white counterparts. So when it comes to seeking family support in the purchase of a residential property, those families typically don’t have the resources that white families do. This disparity holds back minorities in the housing market. The thinking is that down payment assistance can help bridge the gap by providing the cash families need to buy a home. Check out some interesting data on wealth disparity and how down payment assistance can level the playing field in the 2019 State of Down Payment Assistance Report from the Chenoa Fund.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/01272020-coronavirus-and-interest-rates.aspx

November 5, 2019

DPA Does Not Contribute to Higher Defaults. A recent Harvard working paper prepared for the Center for Household Financial Stability at the Federal Reserve Bank of St. Louis by Michael Stegman, et al., using extensive data from 46,000 loans originated principally between 1995-2005 with high LTV (median 97%), found that the receipt of DPA appears to be unrelated to default risk, when controlling for other risk factors, such as credit score, DTI, and even race. Referencing HUD’s descriptive use of data in its 2018 report to Congress, where HUD concluded that government DPA is associated with higher risk of default, the paper stated that, “In contrast to [HUD’s] descriptive analyses, our multivariate analysis indicates that the receipt of DPA is not significantly associated with default risk.” CBC Mortgage Agency agrees with the working paper’s admonition that in setting guidelines around DPA, policy makers should take care not to close off opportunities to aspiring minority home buyers.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/11072019-mortgage-lawsuits.aspx

 

 

November 5, 2019

Chenoa Fund: Investing in Communities – It’s no secret that gentrification is bringing a complicated web of changes to many urban communities. For homeowners, gentrification can mean rising home values. But for lower-income families struggling to hang on to an affordable rental close to work, gentrification can be a nightmare. More than 11 million Americans now use more than half their monthly salaries for rent, and renters need to earn at least $20.30 per hour to afford a modest, two-bedroom apartment. In six states and the District of Columbia, affording such an apartment requires an hourly wage of at least $25. To help counter the trend, CBC Mortgage Agency is investing in the Workforce Housing Opportunity Fund, which rehabilitates and develops affordable and workforce housing in communities with soaring rents. It’s not the whole answer to our nation’s affordable housing crisis, but it’s a good start.

 

Read on the Chrisman Report:

https://www.robchrisman.com/nov-5-recruiting-training-marketing-products-primer-on-employment-labor-participation/

 

 

November 1, 2019

Chenoa Fund: Helping Minorities Break Into Homeownership Historically, the homeownership rate for racial minorities has been well below that for whites. This is especially true for African Americans. After creeping upward over 30 years and peaking at 50% in 2004, the black homeownership rate began to fall, dropping to 40.6% in 2019 and erasing all the gains made since passage of the Fair Housing Act in 1968. One reason: the racial wealth gap. For many reasons, it has been harder for African Americans and other minorities to accumulate funds for down payments and buy homes. At the Chenoa Fund, more than half of our borrowers are minority families, and many lack relatives who can gift them funds for a down payment. We’re proud to serve as their bridge to homeownership, which experts agree is a critical factor in economic stability and advancement.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/11012019-nonfarm-payroll.aspx

 

October 29, 2019

Chenoa Fund, following up for success. Many homebuyers obtaining a mortgage find that aside from a monthly bill, communications with their lender pretty much stop after they sign on the dotted line. At the Chenoa Fund, we take a different approach. Through regular outreach, we stay in touch with our borrowers to provide support, reminders and, if needed, advice. Customers appreciate it. ‘The post-purchase calls, emails/texts are encouraging and serve as a regular reminder that we were able to accomplish this feat,’ says Gabrielle B. ‘It feels great knowing they are on your side and want you to be a successful homeowner,’ adds Danielle M. We love hearing these reviews, because they validate our philosophy: when our borrowers succeed, we all succeed. We want our homebuyers to know that we value them and believe in them. Staying in touch is a small gesture that can mean a lot.”

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/10292019-banks-and-fha-loans.aspx

 

 

October 25, 2019

Chenoa Fund: Help for Single Moms. “Morgan A. is a single mother who works two jobs to provide for her young daughter. It’s a tough life, and her dream of enhancing her family’s stability by buying a home was just out of reach, year after year. But through the Chenoa Fund, Morgan finally received the boost she needed to obtain a loan. Her words of appreciation are powerful: ‘The Chenoa Fund has made the impossible possible. My daughter will now have a home to grow up in, a place to drive by and point [at] and say, ‘That is where I grew up.’’ Meredith B. had trouble obtaining a loan because of a bankruptcy years earlier. The Chenoa Fund helped. Now, ‘my son can feel secure knowing we don’t have to move anymore.’ At the Chenoa Fund, we’re proud to help deserving moms make life better for their kids.”

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/10252019-loandepot-news.aspx

 

 

October 21, 2019

Chenoa Fund: Helping Homebuyers Overcome Obstacles – Homeownership may be the cornerstone of the American Dream, but achieving it isn’t easy. Even couples with steady jobs and solid incomes sometimes struggle to secure a mortgage, perhaps because of past medical or financial difficulties or high rents that prevent them from accumulating a down payment. State housing programs are intended to support such borrowers with down payment help or other assistance, but many carry restrictions that lock out qualified buyers. Some limit assistance to lower incomes, while others help only first-time buyers. Many frustrated borrowers have found an ally in the Chenoa Fund. With reasonable credit controls and borrower education through a HUD-approved provider, Chenoa Fund programs are helping thousands of buyers escape the renters’ trap and buy homes. The Chenoa Fund is administered by CBC Mortgage Agency, whose mission is to increase affordable, sustainable homeownership across the U.S.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/10212019-boris-johnson.aspx

October 17, 2019

Chenoa Fund: A Safe and Happy Home: Through the years, Chenoa Fund’s programs have helped more than 17,000 low- and moderate-income borrowers obtain loans and realize long-held dreams of owning a home. When asked what they value most about the experience, most buyers provide a common response: the chance to live in a safe and happy home. Darlene T. recalled the joy she felt at leaving behind her “overpriced, poorly maintained rental” in an “undesirable part of town” and moving into her own house: “The neighborhood is beautiful, safer and has many conveniences close by.” Brittnie S. also was grateful to have a “safe place to come home to” after long shifts as a nurse. For these and other former renters, homeownership provides a sense of security that has a decisive impact on their quality of life. That’s an outcome worth celebrating,

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/10172019-warehouse-facilities.aspx

 

October 15, 2019

Chenoa Fund: Helping Homebuyers Overcome Obstacles – Homeownership may be the cornerstone of the American Dream, but achieving it isn’t easy. Even couples with steady jobs and solid incomes sometimes struggle to secure a mortgage, perhaps because of past medical or financial difficulties or high rents that prevent them from accumulating a down payment. State housing programs are intended to support such borrowers with down payment help or other assistance, but many carry restrictions that lock out qualified buyers. Some limit assistance to lower incomes, while others help only first-time buyers. Many frustrated borrowers have found an ally in the Chenoa Fund. With reasonable credit controls and borrower education through a HUD-approved provider, Chenoa Fund programs are helping thousands of buyers escape the renters’ trap and buy homes. The Chenoa Fund is administered by CBC Mortgage Agency, whose mission is to increase affordable, sustainable homeownership across the U.S.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/10152019-non-qm-loans.aspx

 

 

October 11, 2019

In Tuesday October 2’s Chrisman Report, a national lender referenced guidelines for down payment assistance (DPA) programs requiring a legal opinion per Mortgagee Letter 2019-06. CBC Mortgage Agency reminds the industry that FHA withdrew that letter in response to ligation. NONE of its provisions are in effect. As part of the litigation, FHA acknowledged that there are no jurisdictional limitations on government DPA providers (click here). Relatedly, industry rumors indicate that HUD plans to limit national government DPA programs by redefining what it means to improperly “financially benefit” from a transaction. Any new restrictions or definitions imposed by FHA on government DPA must be done through notice-and-comment rulemaking, which requires public participation and typically takes 12-24 months to complete. To support any new rule, HUD must first collect loan performance data on individual programs. Since such a rule would significantly impact tribes, HUD must also conduct meaningful tribal consultation.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/10112019-mortgage-pricing.aspx

 

October 10, 2019

Chenoa Fund: Thumbs Up from Lenders, Part Two: One of our goals is to serve as an augmentation to state-based homebuyer assistance programs, which have restrictions that tend to limit eligibility. Our recent survey of 735 lenders suggests we’ve found an important niche, and that loan officers appreciate our efforts to keep paperwork and fees minimal and rates and credit score requirements reasonable. As one lender told us, “Local and state DPA programs should not have a monopoly on down payment assistance programs. The market benefits when borrowers have many choices.” Lenders also appreciate that our service and products are consistent nationwide, allowing them to learn and follow just one set of rules: “The availability of this program in all 50 states is a huge advantage. State-specific programs require learning separate guidelines or certification, which is a barrier for many originators’ ability to offer down payment assistance.”

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/10102019-book-for-loan-officers.aspx

 

 

October 4, 2019

“Chenoa Fund: Thumbs Up from Lenders, Part One: Earlier this year, we surveyed 735 lenders about our program. The goal: to find out what we’re doing right and what we can do better. To say we’ve been touched by the results would be a major understatement. The most heartening finding? Three out of four lenders said their customers could not have purchased homes without our DPA help. Here’s how two lenders summed it up: ‘Most of the people I have been able to help with the Chenoa program are minority buyers who don’t have a family member who can gift them funds for a down payment. This program has been a huge blessing.’ And this: ‘There are many good people [who] … pay their bills on time but just have a hard time setting aside savings … These people deserve a chance too.’ We couldn’t agree more.”

 

Read on the Chrisman Report:

https://www.robchrisman.com/oct-4-lo-jobs-valuation-dpa-correspondent-products-bid-tape-primer-economic-news-moving-rates/

August 30, 2019

“DPA – Where do we go from here? Part 9 in Series: Of all the barriers keeping people from becoming homeowners, one seems most daunting of all: the down payment. A report by The Urban Institute notes that 2/3rds of renters cite “down payment” as a key obstacle. We must decide if supporting DPA is in the best interests of our industry and nation. Will DPA lead to riskier lending, as critics warn? Can it be provided responsibly? Can assistance be used to lift minorities out of intergenerational poverty, providing them the best chance possible of creating a better future? CBC Mortgage Agency is aware of concerns surrounding DPA. We take extraordinary steps – from underwriting restrictions to pre/post-purchase borrower education and loan performance monitoring – to ensure sound lending practices and acceptable performance. DPA, done responsibly, helps families escape the financial trap of perpetual renting and build stable, prosperous futures. That’s an outcome we should get behind.”

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08302019-new-lenders.aspx

 

August 27, 2019

“We have clarity on DPA, for now. Here is the 8th in a Series on DPA. HUD has provided clarity to the industry: Last Friday, HUD filed a motion to resolve the litigation bought against it because of ML 2019-06. HUD’s motion included a sworn declaration from a HUD official, Julie Shaffer, stating ‘HUD does not have a basis to enforce jurisdictional limitations on governmental entities providing down payment assistance…HUD will not issue any policies with respect to jurisdictional limitations with respect to the provision of DPA other than through rulemaking.’ CBCMA continues to provide DPA responsibly, in a manner that protects the MMIF, taking great care to ensure that FHA loans perform well. We’ve helped more than 16,000 creditworthy borrowers achieve homeownership, and we’re proud of our record. DPA, done responsibly, helps families escape the financial trap of perpetual renting and build stable and prosperous futures. That’s an outcome we should all get behind.”

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08272019-politics-and-mortgage-rates.aspx

 

August 23, 2019

Support for/against HUD Mortgagee Letter 2019-06 (7th in series on DPA). “At CBC Mortgage Agency, we watched reaction to HUD’s new rules with interest, and dismay. Eight states came out in favor of the proposed policy, choosing to stifle consumer choice rather than face competition. The losers? Americans needing help moving up the housing ladder. We joined NCSHA in an effort to collaborate with state HFAs to establish markets for DPA paper through efforts like the CRA Note Exchange. But some states prefer regulatory monopolies. They’ve even sued organizations seeking to provide DPA in their domains. The Chenoa Fund offers one set of guidelines and funding processes nationwide. Multiple internal pricing surveys show our pricing to consumers is better by one-eighth percent, and our process is simpler for lenders. Several states have improved pricing to compete with the Chenoa Fund program. Bravo. That’s vivid evidence that marketplace competition is benefiting consumers.”

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08232019-liar-loans.aspx

 

August 20, 2019

Background on Lawsuit against HUD over Mortgagee Letter 2019-06: Part 6 in Series on DPA. As explained in the original press release, CBC Mortgage Agency sued HUD on grounds that the agency failed to follow rulemaking processes required by federal law. HUD also failed to follow an executive order and its own policy, which requires federal agencies consult with tribes before making policy or rule changes which affect Native Americans. Additionally, HUD didn’t notify Congress before issuing its new rules, nor weigh the social costs of its discriminatory new policy. Regardless of one’s position on the merits of down payment assistance, it’s clear that HUD erred in issuing Mortgagee Letter 2019-06. Secretary Ben Carson admitted before the House Committee on Financial Services that HUD should collect data before moving forward with new policy. (See video at 2:21:30). We welcome rescission of ML 2019-06, and seek a constructive dialogue on DPA.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08202019-mortgage-webinars.aspx

August 16, 2019

Part 5 in a series on DPA: Earlier this year, HUD issued Mortgagee Letter 2019-06 that restricted the use of DPA by governmental entities like states, cities, or tribal governments. The letter purported to make several changes to existing law, and the upshot was trouble. As the NCSHA rightly pointed out, the HUD decree caused several state HFAs to suspend their programs. Issued without notice and comment, HUD’s letter also stranded many would-be borrowers right in the middle of the home buying process. Convinced the letter had been issued in violation of proper procedure, CBC Mortgage Agency sued in federal court, securing a preliminary injunction while the case is heard. On August 13, 2019, Mortgagee Letter 2019-12 was issued, rescinding HUD’s prior letter. CBC Mortgage Agency welcomes this latest HUD notice and hopes this signals the beginning of a constructive dialogue on the merits of responsible DPA.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08162019-yield-curve-and-mortgage-rates.aspx

August 13, 2019

Chenoa Fund: Creating a Legacy of Responsible Borrowers: Part 4 in a series on DPA The Chenoa Fund strives to create successful borrowers over the long term to ensure that underlying FHA mortgages perform well. What’s our approach? One key is creating incentives to ensure homebuyers make payments on time. A large proportion of the second mortgages provided in connection with the Chenoa Fund program are forgivable, and carry no interest or payment obligations. To ensure borrowers feel they have “skin in the game,” these seconds are only forgiven after borrowers make 36 consecutive on-time payments on their first mortgage. This structure encourages homeowners to prioritize payment of their loan and stay on track. A second key is our 12 month post-purchase program for borrower success, in which we stay in regular touch with the borrower to help them transition to homeownership.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08132019-mortgage-rates.aspx

August 9, 2019

Day 3 – Responsible DPA: Part 3 in a Series on DPA. CBC Mortgage Agency is committed to ensuring proper loan performance for homebuyers we help with DPA. With reasonable credit controls and borrower education through a HUD-approved provider, we help buyers realize the dream of responsible homeownership. Borrowers appreciate the effort, giving us high marks for staying in touch through phone calls, emails, and texts for 12 months after closing. See feedback we’ve received from borrowers and lenders. Perhaps that’s one reason our loan performance scorecard is better than national averages. CBCMA provides DPA under rules that are stricter than standard FHA underwriting requirements. When managed properly, DPA has an important place in the real estate ecosystem, especially when it’s provided along with stellar borrower resources to ensure the greatest possible success, such as is offered through the Chenoa Fund Program.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08092019-loan-application.aspx

 

August 7, 2019

Day 2 – Chenoa Fund Builds Communities: Part 2 in a Series on DPA. Offered by CBC Mortgage Agency, the Chenoa Fund has enabled thousands of borrowers to realize the dream of homeownership. Our broader goal is to use innovation to help America resolve its affordable housing crisis. How? CBCMA created the CRA Note Exchange as an online marketplace allowing purpose-driven entities to gain liquidity for their paper and receive cash to further their missions. Already, over 4,000 loans have traded on the platform, helping groups such as Habitat for Humanity. CBCMA also has partnered with minority faith-based churches to hold seminars on homeownership, and co-founded a workforce housing opportunity zone fund to address affordable housing needs in gentrifying areas such as Baltimore. In addition, CBCMA partnered with CityVision Homes to promote neighborhood revitalization by renovating blighted properties. Revenues from these and other initiatives fund critical economic development projects for the Cedar Band of Paiutes in Southern Utah.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08072019-second-mortgages.aspx

August 1, 2019

Day 1 – In defense of Down Payment Assistance, rapidly increasing home prices coupled with student debt and rising rents are making it increasingly tough for minorities and millennials to save up for a down payment. Should these groups be allowed to receive DPA? Absolutely, if the assistance is provided responsibly. A recent study by the Urban Institute found that minorities have 1/10 the household net worth as white Americans, a gap that makes them less able to help their children purchase a home. Not surprisingly, recent Census data showed African-American homeownership at a decades low rate – 40.6%. “Chenoa Fund provides DPA responsibly, with careful screening and pre-purchase homebuyer counseling. We’re proud that over half of our assistance helps minorities. This is the first in a multi-part series examining issues surrounding the proper role of DPA.” Click hereto learn about Chenoa Fund’s innovative programs designed to help minorities and millennials.

 

Read on the Chrisman Report:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08012019-mortgage-training.aspx

 

 

 


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Ten Questions Homebuyers Ask When Choosing a Loan Officer

As a Mortgage Professional, you know that 50–70% of your income comes from your past clients through repeat business and referrals. That first engagement is the building block for current and future income. Loan officers should be prepared to answer ten questions that savvy homebuyers ask before making a decision on who will help them realize their dream of owning their future home.

 

Question 1: How many transactions do you work on per month, per year?
Transactions can be viewed as upvotes and likes. The more transactions a loan officer is working on or has closed, the better a potential homebuyer assesses your experience and track record for helping others like them successfully get loans. Include in the conversation the number of referrals you receive because that suggests happy customers. When you talk about transactions, discuss the level of the difference between normal and excessive transactions and what that means to the borrower in terms of service they will receive.

 

Question 2: What is your Net Promoter Score?
As you know, the Net Promoter Score is used by many lenders to track their loan officers’ performance on every closed loan transaction. Every loan officer is going to tell potential homebuyers that they give great service.

 

Help the borrower know that a Net Promoter Score (NPS) is an objective measurement of your customer’s willingness to recommend your product to their friends or co-workers. It’s’ a holistic way to measure the satisfaction of your customers. A Net Promoter Score is an index that ranges from -100 to 100. Often an NPS is based on a single-question survey delivered post-closing after their buying journey has finished. For example, on a scale of 1-10, “How likely are you to recommend our services to your friends and family?” Responses from 0-6 are “detractors.” Responses from 7-8 are neutral, and responses from 9-10 are your promoters.

 

Help the potential homebuyer understand the scoring and where you place in the scoring. A loan officer with a very weak score of less than 50 has less than 50% of consumers recommend the loan officer to a friend and should be a sign that homebuyer walk away from that loan officer. Low scores could reflect issues that consumers have identified with the loan officer, such as (1) closing delays, (2) not being responsive to phone calls or emails, (3) lack of transparency into the process, and (4) other negative experiences.

 

Question 3: What is your experience working with consumers like me?
Yes, every loan is unique. When you are engaging with a potential homebuyer you are learning about their situation. But you have experience with homebuyers in similar situations. For example, if the homebuyer is a marketing manager working at a startup and receives annual bonuses and incentive stock options, you will want them to know that you have experience working their profile and structuring and closing comparable transactions. Help them understand what that experience means to them.

 

Question 4: Can you explain your process and turn-times for working with applicants to get my loan from application to approval?
You should be able to explain the mortgage process concisely and clearly so that potential homebuyers can be sure that you understand how to help them navigate the process and that you are not a newbie. Be upfront; if it is going to take two weeks for an underwriter to review a loan file, share that so the homebuyer can write a purchase contract with enough time for closing on your loan. If you are only in charge of the initial sale and will not oversee the loan from start to finish, they need to know that so they are clear what to expect. There should be no surprises, and being upfront helps the customer trust you through the process.

 

Question 5: What is your track record of on-time mortgage closings?
Talk about the importance of closing loans on time and what that means to the borrower, especially when they can be held liable for a breach of contract by the seller for not closing on time. Honestly share your record for closing loans on time and the process you follow to make that happen.

 

Question 6: Tell me why you chose this profession?
Are you passionate about your profession? Top producing loan officers are dedicated and will go the extra mile to deliver a compelling experience for their customers, and to make the mortgage process as seamless and user-friendly as possible. Simply the way you talk on the phone or interact with your customer says a lot about you.

 

Question 7: How do I keep track of the status of my loan and at what milestones will I receive updates?
Communication is everything. Sometimes, as loan officers, we forget just how stressful applying for a mortgage loan is for the homebuyer. Let the potential customer know how you will communicate with them throughout the 30-day mortgage process, and help them through each step and to track the progress of the loan. This becomes especially important if they sense that you will be working on too many files. Share what kind of updates they will receive; for example, routine versus immediate communication, such as when a further documentation is needed. If you have online portals for consumers to track the status of their loan, make this a clear value proposition.

 

Question 8: What do you think my chances of loan approval are?
You know what your institution can and cannot approve. You should be able to clearly articulate whether you believe a borrower can get a loan approved or not and why. Be transparent. If the borrower needs to change aspects of their financial situation to get a loan approved, they should know that. Most loan officers use an automated decision engine to see if the potential homebuyer can be approved at point of sale even if the loan officer is not sure, or the loan officer can call an underwriter to get an opinion on a lending rule or guideline upfront. Talk about the tools and some of the key factors in the decision process.

 

Question 9: What city and state is your processing center and underwriting center located at?
Help the potential homebuyer understand your closing process with the processor and underwriter. Homebuyers are told that it is always better to have local processing and underwriting (or at least within the same time zone) because it is easier to get questions answered. If processing or underwriting is not local, let the borrower know what hours are available for them to contact the appropriate person for questions and how this might impact their loan closing, especially in case you need to submit additional items.

 

Question 10: Is there anything that we have not discussed that I should be aware of?
Based on your conversation with the potential borrower, help them understand that their loan is top priority to you and that you will help them through this complex process. Be willing to disclose the positive and the negative. Help them uncover questions that they should be asking and the answers to those questions. Often, it’s these moments that determine if the borrower will become your customer.

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