1. CBCMA Training Series #3: Final Docs and Servicing
2. Chenoa Fund by CBC Mortgage Agency: General Overview • The Chenoa Fund offers three different programs with 1-2 products each. • The Rate Advantage and DPA Edge Programs are issued in conjunction with FHA insured loan. • The Conventional 97 and Conventional Products are issued in conjunction with conventional loans. • Only the DPA Edge program includes a forgivable second option. • CBCMA offers the Rate Advantage Product to provide a lower interest rate for the borrower, and to provide a better YSP for the lender.
3. Chenoa Fund Overview Continued • The programs are allowed in all states except New York. • All programs offer 3.5% for the second mortgage. • Up-front fees are limited only by the 3% points and fees rule. • The first mortgage must be sold to CBC Mortgage Agency. • Your underwriter underwrites the file. • Approved property types include SFR, PUD, Townhome, Condo, Attached, Detached, and Modular Homes. • No Manufactured Homes. • HPML (Rebuttable Presumption) is allowed, but no High Cost Mortgages.
4. PRODUCT: Rate Advantage
5. • Qualifying Income: < or = 115% AMI; Household Income Worksheets are no longer required. • Requires monthly payment. • FICO Scores 640 minimum. • 10-Year term 8% Interest rate. • Non-occupant co-borrowers are not allowed. • No concurrent homeownership. • Max DTI 50% • Manual underwrites are not allowed. Note: Look to this one first to benefit you and your client. Rate Advantage Program
6. PRODUCTS: DPA EDGE Soft Second Repayable Second
7. • Only Qualifying Income used for AMI calculations. • FICO Scores minimum of 620. • Non-occupant co-borrowers are allowed. • DTI per AUS or FHA manual underwriting guides. Advantages with the DPA Edge Program DPA Edge FHA Overlays • Only offered for single-family and two unit properties. • Three to four unit properties not allowed.
8. • Qualifying Income: < or = 115% AMI. • No monthly payment. • FICO Scores 620 minimum. • 0% Interest Rate and 30-year Term. • Forgiven after 36 consecutive on-time payments on FHA 1st Mortgage. 1. No Payment 2. 0% Interest Rate and 30-year Term 3. Forgiven after 36 consecutive on-time payments on FHA 1st Mortgage 4. Qualifying Income <= 115% AMI 5. FICO Scores down to 620 6. Section H of 1003 must indicate down payment borrowed 7. Requires Funding Obligation Letter Issued prior to closing-only CBCMA signature Chenoa Fund Soft SecondChenoa Fund Soft Second
9. • Qualifying Income: > 115% AMI. • Requires monthly payment. • FICO Scores 620 minimum. • 10-Year term 0% interest rate. • 30-Year term 5% interest rate. Chenoa Fund Repayable Second
10. 97% LTV Conventional Mortgage Financing and 97% LTV Conventional Program
11. Note: In order to offer conventional products, you must be FNMA approved.
12. Conventional 97 Product 1. No borrower investment required. 2. Single family only. 3. No income limits. 4. Purchase only. 5. All borrowers must have a minimum FICO score of 640. 6. 30-year Fixed Rate Mortgage. 7. Second lien is a 10-year Fixed Rate Mortgage with an interest rate 2% higher than the first mortgage. 8. MI Coverage 35%. 9. DU Only – to 97. 10. Concurrent Homeownership Allowed, but at least one borrower must be first-time homebuyer. 11. No Homebuyer Education class required.
13. 1. No borrower investment required. 2. Single family only. 3. No income limits in low-income census tracts. 4. 100% of area median income (AMI) in all other census tracts. 5. Purchase Only. 6. All borrowers must have a minimum FICO score of 640. 7. 30-year Fixed Rate Mortgage. 8. Second lien is a 10-year Fixed Rate Mortgage with an interest rate 2% higher than the first mortgage. 9. Mortgage Insurance (MI) – 25% MI coverage for LTVs 90.01-97%; Reduced MI available for standard LLPA. 10. DU Only – to 97. 11. Concurrent Homeownership Allowed. 12. Requires borrower to take Homebuyer Education class. Conventional Product
14. Rate Advantage a.) CBCMA offers 3.5% to cover down payment. b.) 2nd mortgage repayable. c.) 8% with 10 year term. d.) 640 minimum FICO score. e.) Qualifying Income less than or equal to 115% AMI. f.) Max DTI 50%. DPA Edge: Repayable Second a.) CBCMA offers 3.5% to cover down payment. b.) 2nd mortgage repayable. c.) 0% interest with 10 year term or 5% interest with 30 year term. d.) 620 minimum FICO score. e.) Qualifying Income greater than 115% AMI. f.) DTI restrictions per AUS guidelines. DPA Edge: Soft Second a.) CBCMA offers 3.5% to cover down payment. b.) 2nd mortgage forgivable. c.) Forgivable after 36 consecutive on-time payments on the 1st mortgage. d.) 620 minimum FICO score. e.) Qualifying Income less than or equal to 115% AMI. f.) DTI restrictions per AUS guidelines. Conventional 97 a.) CBCMA offers 3% to cover down payment, 0.5% to cover closing costs. b.) 2nd mortgage repayable. c.) 10 year term, with an interest rate 2% higher than the first mortgage. d.) 640 minimum FICO score. e.) No income limits. f.) DTI restrictions per AUS guidelines. Conventional a.) CBCMA offers 3% to cover down payment, 0.5% to cover closing costs. b.) 2nd mortgage repayable. c.) 10 year term, with an interest rate 2% higher than the first mortgage. d.) 640 minimum FICO score. e.) No income limits in low-income census tracts; 100% AMI in all other income tracts. f.) DTI restrictions per AUS guidelines. Quick Comparison Matrix: All Products
15. Final Docs
16. • Final Docs do not handle conditions. Conditions questions should be directed to our Purchase Clearing department. • CBCMA’s Final Docs department handles trailing documents, collateral, FHA, and MERS. • General questions can be emailed to finaldocs@chenoafund.org. Important Reminder
17. The following are the Chenoa Fund IDs. 1. FHA ID: 9413-00000-8 2. MERS ID: 1012881 3. NMLS ID: 1186381 4. Tax ID: 46-2780478 Important IDs
18. • For collateral and trailing documents, please send to CBC Mortgage Agency Attn: Post-Closing 912 W. Baxter Dr. Suite 150 South Jordan, UT 84095 • Title policies and Mortgage Insurance Certificates can be emailed to finaldocs@chenoafund.org Shipping Addresses
19. 1. Mat LaMunyon – Department Manager, Escalations • mat.lamunyon@chenoafund.org • 208.494.1400 2. Taisha Smith – Department Lead • taisha.smith@chenoafund.org • 385.645.0519 3. Lexi Sleater – Trailing Docs • lexi.sleater@chenoafund.org • 385.645.1413 4. Shelby Kinsman – Insuring, FHAs, Outgoing Collateral • shelby.kinsman@chenoafund.org • 385.237.1092 5. Mercedes Salazar – 2nd lien Notes, Deeds, Rate Advantage • mercedes.salazar@chenoafund.org • 385.237.0950 Final Docs Contacts (1/2)
20. 6. Kara Ferguson– MERS, Uploads • kara.ferguson@chenoafund.org 7. Christa Fieeiki – 2nd Lien Assignments, Simplifile • christa.fieeiki@chenoafund.org 8. Colette Ewell – Wires Department Manager • colette.ewell@chenoafund.org • 435.200.9026 9. Laci Barrett – 1st Lien Notes • laci.barrett@chenoafund.org 10. Jon Cortez – 1st Lien Notes • jon.cortez@chenoafund.org Final Docs Contacts (2/2)
21. Trailing Documents are required within 120 days of loan purchase. • First Lien Mortgage Deed • Second lien Deed • Title Policy Document Requirements – Trailing Docs
22. Insuring Documents are required within 60 days of loan purchase. • Mortgage Insurance Certificate Note: We do not have the ability to pull these from FHA Connection like most other investors. Document Requirements – Insuring Documents
23. Collateral Documents for both first and second lien loans are required prior to the purchase of the loan: • 1st Lien Collateral Documents – 1. Bailee Letter 2. First Lien Note (must be original wet signed) 3. Allonge to Note (must be original wet signed)* • 2nd Lien Collateral Documents – 1. Second Lien Note (must be original wet signed) 2. Allonge to Note (must be original wet signed)* *Unless Note is stamped endorsed. REMEMBER: All information on the allonges must match the note exactly, or we will request a correction, which will delay the purchase of a loan. REMEMBER: Please also avoid using stamped endorsements on the back of the note whenever possible. Document Requirements – Collateral Documents
24. • If the loan is done as a reverse bailee, we can fund the loan using the bailee letter without having the original note. • Even so, we require the original note to be delivered to us within 3 days of the funding date. • Reverse bailees are accepted, but our department will need prior notice. Send that notice to Mat LaMunyon or Taisha Smith before you ship the bailee letter. • We do not prefer reverse bailees, and will always work to shift to a forward bailee process. Document Requirements – Reverse Bailees
25. • We no longer accept assignments for the second liens as of November 2017. • 1st and 2nd lien MINS are required on all 1st and 2nd Lien notes and Deeds. • The same MIN must be the MIN that is also registered within MERS. • The 1st and 2nd Lien MINS cannot be the same number. • Both MINS must be transferred (via TOS/TOB) to CBC Mortgage Agency within 72 hours of the purchase of the loan to remain within compliance with CBCMA. • CBC must be the investor and the servicer within MERS for all loans we purchase. The second lien MIN must be registered as a “Second Lien MIN” within MERS with the correct lien amount. • For more information, visit http://members.mersinc.org Document Requirements – MERS
26. • Mortgage record changes must be completed within 15 days of the purchase date. Please transfer the Holder rights within FHAC upon insuring the loan, and send the Mortgage Insurance Certificate to CBC. • CBC only requires the Holder Rights to be transferred to us. CBC is not an authorized servicer within FHAC. • Once we have sold the first lien to our new investor and transferred holder rights to them, they will pull the servicer rights from our correspondents’ names and into their own. If there is a delay on this for any reason, please email finaldocs@chenoafund.org for assistance. Document Requirements – FHADocument Requirements – FHA
27. Servicing
28. • Our 2nd Mortgagee Clause is CBC Mortgage Agency ISAOA ATIMA 912 W. Baxter Dr. Ste. 150 South Jordan, UT 84095 Note: This is only necessary for amortized loans. Address
29. Send Second Mortgage Payments to this address if the loan is amortized. Second Mortgage Payment Address Statebridge Company, LLC Attn: Payment Processing P.O. Box 5990 Denver, CO 80217-5990
30. Send Second Mortgage payments to this address if the loan is soft. Urgent Overnight Mail CBC Mortgage Agency 912 W Baxter Drive Suite 150 South Jordan, UT 84095 866 563-3507 extension 0
31. Until further notice, send First Mortgage payments to this address. 1st Mortgage Payment Address CBC Mortgage Agency Attn: Loan Servicing 10400 Overland Road PMB #403 Boise, ID 83709 • CBC Mortgage Agency sells first mortgages to investors following the initial close. • As such, CBCMA don’t always service first mortgages. • Since CBCMA utilizes a short term interim service plan, make sure your borrowers understand that they may need to make payments elsewhere either on or after the first month. • Borrowers should expect to receive a Good-Bye Letter from CBC Mortgage Agency when their first lien has been sold. Servicing Line 866-563-7572
32. Reminders • First and second mortgage payments are not combined. Please impart this understanding upon your borrowers. • Our hours of operation are 8:00 AM – 6:00 PM MT, Monday through Friday.
33. Important CBC Mortgage Agency Contacts General Information info@chenoafund.org Portal Questions submissions@Chenoafund.org Underwriting Questions scenariodesk@chenoafund.org Purchase Clearing Please contact the Purchase Clearing specialist for the specific loan you’re working on. Collateral/Shipping finaldocs@chenoafund.org Servicing servicing@chenoafund.org
34. Conclusion
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