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CBC Mortgage Agency (CBCMA)

CBC Mortgage Agency (CBCMA) is a federally chartered, public-purpose government lender. CBC Mortgage Agency (CBCMA) created Chenoa Fund to help lenders to assist their borrowers to obtain the 3.5% minimum required investment on an FHA loan.<br>

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CBC Mortgage Agency (CBCMA)

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  1. CBCMA Training Series #5:Final Docs & ServicingFHA Product Line

  2. Show Support for a Withdrawal of Mortgagee Letter 2019-06 1. In the link below, you will find documents that can be used as a template to reach out to key appointees and congress people who can quickly act on this irresponsible use of government power.  Please share your thoughts and be heard so we can preserve responsible down payment assistance.https://chenoafund.org/hud-mortgagee-letter-2019-06/2. We are also asking for the stories of any borrowers who have been directly affected by this letter. Please send us any information you are able to about borrowers who have been affected by this sudden change, whether it’s their story, or their contact information so we can reach out. We will be using this to strengthen our case, and show the negative impact the Mortgagee Letter has had.  3. If you have suspended our program until the mortgagee letter is withdrawn, please send that to us in writing, so we can show the number of companies and people that this is affecting.   HUD issued Mortgagee Letter 19-06 without following the Administrative Procedures Act. This was unlawful, and has caused confusion and concern in our industry.  CBC Mortgage Agency has filed for a restraining order to temporarily block this new policy and once in place, will file for injunctive relief.  We are confident that the mortgagee letter will be removed and a more responsible policy will be implemented that follows the proper procedures of public comment and an implementation period. As we litigate, we seek your support politically to ensure that our politicians hold government appointees accountable.  We encourage you to please be part of the solution to continue to help credit worthy Americans purchase their own home. Here are some ways you can help.

  3. Chenoa Fund by CBC Mortgage Agency: General Overview • Chenoa Fund is the program name for CBC Mortgage Agency’s suite of down payment assistance products. These products are offered to borrowers in the form of second mortgages. • 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. • At the time you sell your first mortgage to CBC Mortgage Agency, the down payment funds you advanced are reimbursed. • 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. Chenoa Fund by CBC Mortgage Agency: FHA Overview • Chenoa Fund is the program name for CBC Mortgage Agency’s suite of down payment assistance products, including second mortgages for FHA loans. • There are two FHA programs: the Rate Advantage, and the DPA Edge. • The Rate Advantage program has one product. CBCMA offers the Rate Advantage Product to provide a better first mortgage interest rate for the borrower, and better YSP/SRP for the lender. • The DPA Edge is split into two products, one for borrowers whose income is less than 115% AMI, and one for borrowers who income is greater than 115% AMI. • Only the DPA Edge program includes a forgivable second option. That option is available for borrowers with an income that is less than 115% AMI.

  5. FHA Second Mortgages:The Rate Advantage Program

  6. Rate Advantage Program • Qualifying Income: < or = 115% AMI • Requires monthly payment. • FICO Scores 640 minimum. • Second mortgage has a 10-Year term at an 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.

  7. FHA Second Mortgages:The DPA Edge Program

  8. DPA Edge: Soft Second (1/2) • 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. • Non-occupant co-borrowers are allowed. • DTI per AUS or FHA manual underwriting guides. • Only offered for single-family and two unit properties. • Three to four unit properties not allowed.

  9. DPA Edge: Repayable Second (2/2) • Qualifying Income: > 115% AMI. • Requires monthly payment. • FICO Scores 620 minimum. • 10-Year term 0% interest rate. • 30-Year term 5% interest rate. • Non-occupant co-borrowers are allowed. • DTI per AUS or FHA manual underwriting guides. • Only offered for single-family and two unit properties. • Three to four unit properties not allowed.

  10. Quick Comparison Matrix: FHA Products 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%. g.) Homebuyer education not required. h.) Please see HUD handbook 4000.1 for current upfront MIP rates. 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. g.) Homebuyer education required for borrowers with credit scores between 620-639. h.) Please see HUD handbook 4000.1 for current upfront MIP rates. 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. g.) Homebuyer education required for borrowers with credit scores between 620-639. h.) Please see HUD handbook 4000.1 for current upfront MIP rates.

  11. In regards to Homebuyer Education, Be sure to visit our Lender FAQs for more information on this topic. https://chenoafund.org/lender/lender-faq/ CBC Mortgage Agency offers pre-purchase counseling through Hope Loan Port, also known as Money Management International. This pre-purchase counseling is provided for borrowers with a FICO score of 620 to 639, which also means this counseling is only required for our DPA Edge products. The aforementioned counseling courses are paid for by CBC Mortgage Agency. As such, correspondent-lenders should never direct their borrowers with FICO scores 640+ to go to https://www.borrowersuccess.org/prepurchase. If borrowers without the proper FICO score attempt to access this course, they will be turned away, which will cause much stress, frustration, and confusion on many borrowers’ parts. For your borrowers that have a FICO score of 620 to 639, note that they will not be able to access the course until … 1.) they have been registered and/or locked by their lender in CBC Mortgage Agency’s portal. 2.) they have allowed for 24 hours to pass after the LO receives the relevant confirmation letter. 3.) they have a CBC loan number, provided for them by their LO (will start with “161”). Coborrowers outside the 620 to 639 range will not need to take the course. If you wish for your borrower with a FICO score 640+ to take Homebuyer Education through Hope Loan Port anyway, please utilize this link instead. https://www.moneymanagement.org/buying-a-home/online-homebuyer-courses. Here, the courses range from $75-$99. Feel free to contact info@chenoafund.org for even more information on Homebuyer Education.

  12. Check out our Program Guidelines! A more detailed version of our product matrix can be found on chenoafund.org. Next, click on Program Guidelines. Finally, scroll down to pages 8-16. First, click on Lenders.

  13. Final Docs

  14. Important Reminder • 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.

  15. Important IDs The following are the Chenoa Fund IDs. • FHA ID:  9413-00000-8 • MERS ID:  1012881 • NMLS ID:  1186381 • Tax ID:  46-2780478

  16. Shipping Addresses • 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

  17. Document Requirements – Trailing Docs Trailing Documents are required within 120 days of loan purchase. • First Lien Mortgage Deed • Second lien Deed • Title Policy

  18. Document Requirements – Insuring Documents 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.

  19. Document Requirements – Collateral Documents Collateral Documents for both first and second lien loans are required prior to the purchase of the loan: • 1st Lien Collateral Documents – • Bailee Letter • First Lien Note (must be original wet signed) • Allonge to Note (must be original wet signed)* • 2nd Lien Collateral Documents – • Second Lien Note (must be original wet signed) • 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.

  20. Document Requirements – Reverse Bailees • 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 before you ship the bailee letter. • We do not prefer reverse bailees, and will always work to shift to a forward bailee process.

  21. Document Requirements – MERS • 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

  22. Document Requirements – FHA • 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.

  23. Servicing

  24. Address • 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.

  25. Send Second Mortgage Payments to this address if the loan is amortized. Second Mortgage Payment Address Statebridge Company, LLC Attn: Payment Processing PO Box 173313 Denver, Colorado 80217-3313

  26. 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

  27. Until further notice, send First Mortgage payments to this address. • 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. 1st Mortgage Payment Address CBC Mortgage Agency Attn: Loan Servicing 10400 Overland Road PMB #403 Boise, ID 83709 Servicing Line 866-563-7572

  28. 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.

  29. Show Support for a Withdrawal of Mortgagee Letter 2019-06 1. In the link below, you will find documents that can be used as a template to reach out to key appointees and congress people who can quickly act on this irresponsible use of government power.  Please share your thoughts and be heard so we can preserve responsible down payment assistance.https://chenoafund.org/hud-mortgagee-letter-2019-06/2. We are also asking for the stories of any borrowers who have been directly affected by this letter. Please send us any information you are able to about borrowers who have been affected by this sudden change, whether it’s their story, or their contact information so we can reach out. We will be using this to strengthen our case, and show the negative impact the Mortgagee Letter has had.  3. If you have suspended our program until the mortgagee letter is withdrawn, please send that to us in writing, so we can show the number of companies and people that this is affecting.   HUD issued Mortgagee Letter 19-06 without following the Administrative Procedures Act. This was unlawful, and has caused confusion and concern in our industry.  CBC Mortgage Agency has filed for a restraining order to temporarily block this new policy and once in place, will file for injunctive relief.  We are confident that the mortgagee letter will be removed and a more responsible policy will be implemented that follows the proper procedures of public comment and an implementation period. As we litigate, we seek your support politically to ensure that our politicians hold government appointees accountable.  We encourage you to please be part of the solution to continue to help credit worthy Americans purchase their own home. Here are some ways you can help.

  30. Important CBC Mortgage Agency Contacts Information and questions info@chenoafund.org Portal Questions submissions@chenoafund.org Pricing Questions locks@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

  31. Conclusion

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