CBC Mortgage Agency

1
CBCMA Training Series 5Final Docs
Servicing FHA 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-mo
rtgagee-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 its 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mortgagee letter is withdrawn, please send that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
  Agencys 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
  Agencys 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 MortgagesThe Rate Advantage Program
6
Rate Advantage Program

• Qualifying Income lt 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 MortgagesThe DPA Edge Program
8
DPA Edge Soft Second (1/2)

• Qualifying Income lt 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 gt 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 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.
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.
11
In regards to Homebuyer Education, Be sure to
visit our Lender FAQs for more information on
this topic. https//chenoafund.org/lender/lender-f
aq/ 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
Agencys 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/onli
ne-homebuyer-courses. Here, the courses range
from 75-99. Feel free to contact
info_at_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.
• CBCMAs Final Docs department handles trailing
  documents, collateral, FHA, and MERS.
• General questions can be emailed to
  finaldocs_at_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_at_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_at_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 dont 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 800 AM 600 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-mo
rtgagee-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 its 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

•  Purchase Clearing
• Please contact the Purchase Clearing specialist
  for the specific loan youre working on.
• Collateral/Shipping
• finaldocs_at_chenoafund.org
• Servicing
• servicing_at_chenoafund.org

• Information and questions
• info_at_chenoafund.org
•  
• Portal Questions
• submissions_at_chenoafund.org
• Pricing Questions
• locks_at_chenoafund.org
• Underwriting Questions
• scenariodesk_at_chenoafund.org

31
Conclusion