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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 Sam*, who purchased his home this year.

I am grateful to my sister for thinking of me. This does relate to buying my house. The time was about April/May 2020. My wife and I had been married for almost 14 years at the time, and we had spent a chunk of that time living at a hotel I managed, then to my parent’s basement for a couple years, and then ultimately an apartment for a couple more years. My sister had reached out to me and asked if I wanted to consider buying her house from her. She wanted to get a bigger yard for her kids and dogs. I thought long and hard about this for a couple days, and then decided to take the jump. Because I purchased from my sister, and she sold to me at a little bit of a reduced price, I had instant equity in the home. My wife would also be so happy, because she has wanted a home for quite some time. I let my sister know and I started working with a mortgage broker. Ultimately, [the broker] was not able to meet the timeline, due to my sister needing us to close by a specific date, so I went with the same lender my sister was using. I reached out to [CBC Mortgage Agency] from the beginning so that I could be able to use the Chenoa Fund DPA program for my home. I have been in the home since June 1st, and I love every minute of it.

We’re grateful that Sam was able to affordably achieve his dream of homeownership through Chenoa Fund. Sam is still living comfortably in his home today, and will be for years to come.

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.

*Borrower’s name changed to protect privacy.

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

Chenoa Fund: Myth Versus Fact Quiz

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Myth or Fact: Chenoa Fund down payment assistance has a universal minimum FICO requirement of 640.

Myth! The DPA Edge products have a minimum FICO requirement of 620.

Myth or Fact: CBC Mortgage Agency works through correspondent lenders to offer Chenoa Fund down payment assistance to borrowers.

Fact! CBCMA never offers Chenoa Fund directly to borrowers; Chenoa Fund is always offered through correspondents.

Myth or Fact: Chenoa Fund down payment assistance is offered in all 50 states.

Myth! Chenoa Fund is offered in 49 states; it is not offered in New York.

Myth or Fact: CBC Mortgage Agency funds the Chenoa Fund down payment assistance at closing.

Myth! The correspondent funds the Chenoa Fund down payment assistance at closing, then CBC Mortgage Agency later refunds the assistance amount to the correspondent.

Myth or Fact: The Rate Advantage product offers 3.5% assistance or 5% assistance.

Fact! Borrowers can choose between the two DPA amounts, the only difference being that the 5% assistance amount has a slightly higher rate on the first mortgage.

Myth or Fact: Chenoa Fund offers down payment assistance for Freddie loans.

Myth! Chenoa Fund currently only offers down payment assistance for Fannie Mae conventional and FHA loans.

Myth or Fact: All Chenoa Fund down payment assistance products are paired with a 30-year, fixed rate first mortgage.

Fact!

Myth or Fact: Chenoa Fund is never paired with muti-unit homes.

Myth! But, admittedly, almost a trick question. Only the DPA Edge products may be paired with multi-unit homes, and even then the maximum number of units is 2. The Rate Advantage, HomeReady®, and Conventional 97 products are all only paired with 1-unit homes.

Myth or Fact: All Chenoa Fund down payment assistance loans are repayable.

Myth! The DPA Edge Soft Second, for FHA loans, is a forgivable loan. Borrowers that make 36 consecutive, on-time payments on the first mortgage will see their second mortgage entirely forgiven if their second mortgage is the DPA Edge Soft Second.

Myth or Fact: Despite referring to all of its products as down payment assistance, Chenoa Fund assistance may also be applied towards closing costs and prepaid items.

Fact! Chenoa Fund’s down payment assistance may be applied towards the borrower’s minimum required investment, closing costs, and prepaid items. This is most applicable for assistance for conventional loans, where Chenoa Fund assistance is 3.5% and the minimum required investment is 3%, and the Rate Advantage product, where Chenoa Fund assistance may be 5% and the minimum required investment is 3.5%.

The post Chenoa Fund: Myth Versus Fact Quiz appeared first on Chenoa Fund – Down Payment Assistance.

12/07/2020

All policy changes and updates reference the appropriate Correspondent Lending Guide section below. These policy changes are effective 12/07/2020 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 itself). To review the program guidelines changes made November 16 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. CBCMA will no longer accept registrations for this program. The FHA Classic product will remain on our Product Matrix for reference purposes until January 1st, 2021.

The down payment assistance second mortgage provided through Chenoa Fund is funded by the correspondent on behalf of CBCMA (a government entity), and CBCMA reimburses those funds advanced on our behalf at the time of first mortgage loan purchase. Even though this is the case, it is acceptable for correspondents to utilize their loss payee clause on both the first and second mortgages, but the verbiage “Its Successors and/or Assigns ATIMA” must be present on both. (ISAOA/ATIMA is an acceptable abbreviation of this verbiage.)

With the above announcement, section 10.2.1 (Loss Payee Change) has been changed to be section 5.37 (Loss Payee Clause), and will now read as follows:

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

We’ve added a new section to the program guidelines, 5.38 (Disaster Certificates). It reads as follows:

In counties that have been deemed disaster areas by FEMA, CBCMA will require a 1004D disaster certificate OR a lender certificate, with exterior photos required for both. The certificate must be dated after the incident period.
In the case of wildfires that are ongoing nationwide, CBCMA will make an exception to allow the certification to be issued before the end date. The certification must be issued after the start of the incident and the loan must be insured with FHA.

It is solely the correspondent’s responsibility to be aware of and act upon any mortgage loans that were, prior to the sale to CBCMA, impacted by disasters. The correspondent should contact the appropriate source (e.g., a state office, regional Federal Emergency Management Agency (FEMA) office, news agency, etc.) to determine whether properties located in its origination regions are included in a disaster area.

• CBCMA’s Disaster Policy applies to any of the following:
• FEMA-declared disaster areas eligible for Individual Assistance
• Areas identified by CBCMA
• Properties that the correspondent has reason to believe sustained damage in a disaster

CBCMA does not have the responsibility to notify the seller with regards to disaster areas. If, at any time after loan purchase, CBCMA or a subsequent investor determines that the subject property was damaged by a disaster and was not in fully marketable condition at time of sale, the loan will be subject to repurchase.

The post 20-12-07 Announcement—December 7 2020 Program Guidelines Update appeared first on Chenoa Fund – Down Payment Assistance.

FHFA has announced that the conforming loan limits for 2021 will increase to $548,250. (Find the original announcement here.) CBCMA always follows Agency guidelines with regards to loan limits; conventional loans at or under this limit may qualify for Chenoa Fund down payment assistance, provided they meet Chenoa Fund’s other requirements. Conventional high balance loans, however, will not.

When FHA announces updated loan limits, CBCMA will follow these limits as well, although Chenoa Fund accepts high balance FHA loans in addition to FHA loans that meet FHA’s loan limits.

What does this mean for borrowers? For many borrowers, this won’t change anything, unless your loan was already just above the loan limit. However, for borrowers that were just above the previous limit, this is great news, as they now have access to better interest rates and Chenoa Fund down payment assistance.

If you’re looking to purchase a home that now meets FHFA’s conforming loan limits and would like financial assistance, consider Chenoa Fund. Chenoa Fund is offered in every state except for New York, providing exemplary service to borrowers in need of down payment and closing cost assistance. Because Chenoa Fund works through lenders nationwide, your lender might already be able to offer you Chenoa Fund—you can ask your loan officer to find out.

Conventional Offerings

Chenoa Fund offers 3.5% assistance for Conventional 97 and HomeReady conventional loans. That’s enough assistance to cover the minimum down payment required for a conventional loan and to provide a little help with closing costs. With FHFA’s new conforming loan limits, even more borrowers can take advantage of our low interest rates to retain their savings and get into their dream home.

FHA Offerings

Chenoa Fund has many down payment assistance options for FHA loans, most of which provide 3.5% assistance, the exact amount necessary to cover a minimum down payment. However, Chenoa Fund’s Rate Advantage product also has a 5% assistance option, allowing the loan to help cover closing costs. With a forgivable loan offered through the DPA Edge product, Chenoa Fund’s line of FHA offerings are flexible enough to meet the needs of almost any borrower.

Reach out to our Information Desk at info@chenoafund.org to learn more!

The post FHFA Announces 2021 Conforming Loan Limits appeared first on Chenoa Fund – Down Payment Assistance.

Written by Cari Zwick, CBC Mortgage Agency Corporate Account Director

As Thanksgiving quickly approaches (it’s tomorrow… can you believe), I just wanted to take a quick second and share some thoughts.

My grateful list looks a little different this year. 2020 has definitely been one for the books! Last year if you would have asked me what I was thankful for, the list might have been: my family, friends, trips to California or the beach etc. All good things right? This year, that list has a whole different meaning.

My 2020 Thankful list: 

My family and their health

A safe home to live in

The freedom of which this country allows

The list could go on. However, this year, I’m most thankful for you! Because of you, I’m able to continue working towards CBC Mortgage Agency’s ultimate goal of helping those in need, achieve the American Dream of Homeownership. This year thousands of families and individuals have been able to add a home to their grateful list. I asked a few of my friends here from CBC to share a few things they are grateful for as well:

Dianah (Purchase Clearing Team Lead): “I am grateful that in the midst of all things crazy, because of my faith, I can have peace that passes all understanding.”

David (“Boo) Ludlow: “I’m grateful for my family. Almost all of the blessings I have I would not have received without my wife, parents, siblings, and extended family, and I certainly wouldn’t be who I am today without them.”

Zac (Purchase Clearing Specialist): “I am grateful for beautiful sunrises and glorious sunsets.”

Mark (Operations Trade Desk Manager): “I want to express my utmost gratitude and love for music. What an amazing, divine gift it is! I cannot fathom living in a world without music. It permeates my soul, invigorates my spirit, enlightens my mind, and unburdens a my heart. Music is nothing less than the language of the divine. It is and always will be central in my life. The song “How Can I Keep from Singing” expresses my feelings here. I love singing with a passion and do so all the time. Indeed, How could I ever keep from singing?”

Trevor (Operations Manager): “In this crazy time there are many things I’m grateful for. At the top of my list is my job at CBCMA. It is such a blessing to have stable employment and steady income. It is something that can be taken for granted but I try to remind myself often how fortunate I am for this opportunity. The other thing that stands out as something I’m grateful for is our beautiful earth, and this awesome state of Utah. There are so many things to do and places to explore, and I’m in constant awe of the incredible scenery I find, and all the different ways I’m able to enjoy all of those places!  Utah is so unique, and I’m grateful for the time I’ve been able to spend exploring it.”

(A special thanks to David Ludlow for collecting these thoughts!) 

In closing, I’d like to share a few words from CBC Mortgage Agency president Richard Ferguson:

“In a world filled with turmoil and pandemic fears, I am reminded of the adage, “There’s no place like home”, which can be a refuge from the storms that rage around us. I am grateful for the opportunity to be associated with a company whose mission it is to enable homeownership, especially amongst the underserved. No greater work is done by humankind, than the work performed within the walls of the home. May we all be grateful for the blessings we enjoy, and employ our labors to the betterment of the communities we reside.” 

Happy Thanksgiving from CBC Mortgage Agency!

The post We’re thankful for… appeared first on Chenoa Fund – Down Payment Assistance.

11/16/2020

All policy changes and updates are referenced to the appropriate section of the Correspondent Lending Guide. These policy changes are effective 11/16/2020 unless otherwise noted.

Note: This announcement page has been updated since it was originally posted. The most recent update occurred at 11:33 MST, November 16th.

Additionally, CBCMA has compiled all of its announcements related to COVID-19 into one section immediately following the Recent Updates and Announcements section within the Correspondent Lending Guide. To review the program guidelines changes made November 2 or earlier, please review the archived Program Guidelines.

Due to changing industry needs, we retired our FHA Classic product on October 1. 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.

We clarified COVID-19 Temporary Guidance 20-17. All forbearances, even COVID-related forbearances, reset the 36-month waiting period before a Chenoa Fund second mortgage can be subordinated. This has been updated on the Temporary Guidance page and on the original announcement.

In 5.8 (AMI Calculation), the following sentence was added to the beginning of the section: “The area median income (AMI) used to calculate program-specific income limits is valid as of the closing date of a loan.” While this won’t affect most Chenoa Fund second mortgages, in edge cases the AMI may raise enough for a DPA Edge Repayable Second mortgage to qualify as a DPA Edge Soft Second. It is the correspondent’s responsibility in these instances, if desired, to track income limits and request a switch between programs.

CBC Mortgage Agency adheres strictly to TRID/ATR guidelines with first mortgages; in addition, first mortgages must adhere to the 3% max points/fees test. To help clarify these details, the following sections have been revised (changes bolded):

1.     5.29 | HPML, High Cost, & QM Compliance

HPML transactions are allowed. Lenders must comply with CFPB & TRID requirements. High Cost loans are not permitted. All first mortgages must adhere to QM/ATR compliance. Mortgage loans exceeding the 3% max points/fees test are not permitted unless cures are applied. Bona fide discount points must adhere to CFPB and any or all state regulations.

2.     7.22 | Documentation—General Requirements

[Required Documentation] … Compliance testing for adherence to QM/ATR, APR, and Points and Fees for the first mortgage…

On a related note, CBC Mortgage Agency strictly follows the guidance given in the Buckley-Sandler memo on how and when to exclude lender- or seller-paid costs from points and fees. This memo can be found under Originator Resources on our CBCMA Documents and Tools page of our website. We encourage all of our correspondents to become familiarized with the document.

In 10.2 (Mortgage Electronic Registration Systems), we updated the following text (changes bolded):

First mortgage loans sold to CBC Mortgage Agency, and all secondary mortgages, must be registered in Mortgage Electronic Registration Systems (MERS) in accordance with MERS guidelines. In addition, all mortgage loans, first and second liens, must be transferred to CBC Mortgage Agency as Investor (owner/beneficiary) and Servicer through MERS at the same time the first mortgage is transferred, but never before purchase (MERS ORG #1012881). This MERS transfer must be initiated within forty-eight (48) hours to ensure that the MIN will be in CBCMA’s name within seventy-two (72) hours. We remind all correspondents of the following when registering and transferring MINs:

• • Select the correct lien type for the loan
  • Ensure the loan amount is correct
  • Lender organization ID is entered as the Originator for all first mortgages
  • CBCMA organization ID is entered at the Originator for all second mortgages
  • The borrower’s or borrowers’ social security number(s) is correct
  • FHA Case Number is entered and is correct (if applicable)
  • Enter the CBCMA loan number as Investor Loan Number
  • An interim funder should not be added for any Secondary Mortgage MINs

The post 20-11-16 Announcement—November 16 2020 Program Guidelines Update appeared first on Chenoa Fund – Down Payment Assistance.

11/02/2020

All policy changes and updates are viewable in the Correspondent Lending Guide. These policy changes are effective 11/02/2020 unless otherwise noted.

Additionally, CBCMA has compiled all of its announcements related to COVID-19 into one convenient section in these guidelines. This section can be found immediately after this Recent Updates and Announcements section. To review the program guidelines changes made in October, please follow this link to the archived Program Guidelines.

Due to changing industry needs, we retired our FHA Classic product on October 1. 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.

In 5.16 (Alternative Qualification Requirements), we made several clarifications:

1. Borrowers may not use gift funds to meet reserves requirements.
2. All borrowers on a loan must meet the alternative qualification requirements if alternative qualification requirements are used to qualify for a Chenoa Fund product.
3. For borrowers in the FICO band of 640–659, we set a DTI maximum of 55% for borrowers that qualify using Chenoa Fund’s alternative qualification requirements. The DTI maximum is still 50% for borrowers not using alternative qualification requirements. We will not go above 55% DTI for borrowers using these programs and in this FICO range, even if they meet other alternative qualification requirements. This update does not apply to the Rate Advantage program.

Visit section 5.16 in the guidelines to fully review the current requirements for each Chenoa Fund product.

In 5.32 (Fees to Originator), we clarified that loan level pricing adjustment charges may be seller-paid. The specific text is included below, additions bolded:

“CBCMA will allow a maximum origination fee of 1.5%. Additionally, the lender may charge for any CBCMA loan level pricing adjustments (LLPAs); charges for loan level pricing adjustments may be seller-paid. Lenders will be required to refund borrowers for any origination fees (including non–bona fide discount points) exceeding 1.5% plus CBCMA LLPAs. Reasonable lender underwriting, administrative, or program fees are not considered in this calculation; however, they are considered in the QM 3% points and fees test.

In 5.34.2 (Manual Underwriting), it was clarified that CBCMA strictly follows FHA guidelines for manual underwrites. We do not allow manually underwritten loans to qualify for Chenoa Fund using our alternative qualification requirements. Visit section 5.32.4 in the guidelines to fully review our current policy towards manual underwrites.

The post 20-11-02 Announcement—November 2 2020 Program Guidelines Update appeared first on Chenoa Fund – Down Payment Assistance.

If you want to get a mortgage, you’re going to need a mortgage lender. Fortunately, the current mortgage market has an absolute wealth of lenders to choose from: lenders that focus on low rates, on low fees, or refinances, and the list goes on. As a result, it can be very difficult to find a lender that’s just right for you. Here are some tips to help you choose the perfect lender.

The first thing you’ll want to do is connect with a loan officer—a loan officer is invaluable for the most important purchase most people make in their lifetime. You’ll be talking with your loan officer a lot, so make sure you get along with him or her, and make sure that you are comfortable asking your loan officer lots of questions. For many, the best way to find a loan officer that they click with is to ask friends and family if they would recommend their previous loan officer. In short, getting the right loan officer is integral to finding the right lending company.

Another thing to do is learn what the lenders you are interested in specialize in. Some lenders advertise really low rates, but depending on your credit score this could come with higher fees. Other lenders are the opposite; their rates might not be as good, but they keep fees and points very low. If you already have a solid loan officer, your loan officer can help you understand what these differences mean and how they will affect your finances.

Another area of specialty, some lenders specialize in home purchases while others focus on refinances. (“Refinance” means “to replace an existing mortgage loan with a new mortgage loan with different terms,” usually a lower rate.) Make sure that your lender specializes in the right type of loan—for example, you’ll probably get a better rate from a lender that focuses on home purchases, rather than a lender that focuses on refinances, if you want to buy a home.

Finally, learn what other options the lender provides above and beyond just the mortgage. Does the lender have a good relationship with inspection or appraisal companies and can recommend the best? Does the lender offer down payment assistance or closing cost assistance? What other special tools or programs does the lender offer to help that company stand out from the crowd? These are often the final details that edge out one lender ahead of all others.

This list of suggestions is by no means exhaustive, but it can be useful to help you narrow down your list of preferred lenders to the one that is right for you.

One final tool for your toolbelt—if you are specifically looking for a lender that offers Chenoa Fund down payment assistance, you can get help by emailing info@chenoafund.org. Include your state and county if you want to receive a short list of lenders in your area, or include the lenders that you are already interested in if you want to learn if any of them are approved to offer Chenoa Fund.

Getting a mortgage can be hard, but it doesn’t have to be harder than it needs to be. With the right research ahead of time to find the perfect lender for you, you can help make your mortgage journey flow smoothly and easily.

The post Quick Tips—How to Choose a Lender appeared first on Chenoa Fund – Down Payment Assistance.

Buying a home can be a long and complicated process! For many, especially first-time homebuyers, it’s often filled with a lot of headaches as they try to sift through mountains of information, new vocabulary, lender options, rates, and more. To top it all off, the current market puts even more stress on borrowers as they compete for desired homes in bidding wars.

Let us help you cut through the confusion! Our Homebuyer Guide is fairly short, coming in at 14 pages, but stuffed full of information useful to homebuyers, presented in short and easy to digest segments. Find advice and tips on:

• What an agent is and why work with one
• Whether renting or buying is best for your situation right now
• Whether to get an FHA or conventional loan
• What down payment assistance is and whether it is right for you
• What common mortgage terms mean and how they are used
• And more!

To download Chenoa Fund’s Homebuyer Guide, Edition 1, click the link below:

A special thanks to our guest contributors: 

• Jill Stringham of Stringham Realty Group 
• OnQ Financial 
• Money Management International

The post A Helping Hand for Homebuyers: Chenoa Fund’s Homebuyer Guide, Edition 1 appeared first on Chenoa Fund – Down Payment Assistance.

10/14/2020

All policy changes and updates are referenced to the appropriate section in the Program Guidelines. These policy changes are effective 10/14/2020 unless otherwise noted.

Additionally, CBCMA has compiled all of its announcements related to COVID-19 into one convenient section in the Program Guidelines. This section can be found immediately after the Recent Updates and Announcements section. To review the program guidelines changes made in September, please follow this link to the archived Program Guidelines.

Due to changing industry needs, we retired our FHA Classic product on October 1. 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.

In 5.12 (Undisclosed Debt Monitoring and Soft-Pull Credit Refreshes), it was clarified that CBCMA highly recommends the use of an Undisclosed Debt Monitoring service for both conventional and FHA loans. In addition, “closing” and “funding” were changed to “disbursement” to more fully clarify the trigger date.

Section 5.26 (Loan Amounts [Minimum and Maximum]) was changed to clarify that CBCMA has no minimum or maximum loan amounts; we follow relevant Agency guidelines regarding loan amounts.

Section 7.18 (Real Estate Taxes Due the Following Month After Loan Purchase) was reworded to the following:

“All escrow disbursements due the month following the loan purchase must be paid prior to loan purchase with evidence of payment documented (a copy of a check or a paid receipt) and an updated pay history. For example, if a loan is to be purchased in October and taxes are due in November, the November taxes must be paid prior to CBC Mortgage Agency purchasing the loan. An exception to this rule will be granted if a tax bill is not yet released.”

Section 11.1 (Early Payment Default) was reworded. The biggest changes involve the loan admin fee the correspondent pays in the case of an early payment default. The changed text is included below:

“An early payment default (for the purpose of the agreement between the correspondent and CBC Mortgage Agency) is defined as the first payment that becomes thirty (30) days or more delinquent, or any of the second through sixth payments that become sixty (60) days or more delinquent, or if the mortgagor becomes a debtor in bankruptcy (or any similar type of proceeding). A payment is considered delinquent if a payment is not received within thirty (30) days of the due date designated on the mortgage note (first or second).

In the event that a borrower goes into an early payment default (EPD), CBCMA will invoice the correspondent lender for any premium pricing paid to the correspondent at the time of loan purchase plus an admin fee. The admin fee will be equal to the admin fee charged by CBCMA’s investor (up to $3500) or, for loans securitized indirectly by CBCMA, the admin fee will be $1500. The correspondent will also be required to purchase the second mortgage.”

The post 20-10-14 Announcement—October 2020 Program Guidelines Update appeared first on Chenoa Fund – Down Payment Assistance.