Subject: HUD’s Mortgage Letter
HUD’s issuance of Mortgagee Letter 19-06 without following the Administrative Procedures Act was unlawful and has caused confusion and concern in our industry as many lenders are unsure of how this mortgagee letter may affect the down payment assistance from governmental entities. One thing that is sure is this mortgagee letter will not affect any loans with case numbers pulled prior to April 18th, 2019.
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 in our position that HUD did not follow the law and that their policy violates federal law and we have every reason to believe 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.
This letter does not only impact CBC Mortgage Agency / Chenoa Fund but also all HFA entities. 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.
There are a few things you can do to help!
1. In the link below, you will find documents that can be used as a template to reach out to key appointees and congresspeople 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.
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 IF you have suspended our program until the mortgagee letter is withdrawn, please send that to us in writing, so we can show the number of companies and people that this is affecting.
Please send all info to Info@chenoafund.org.
We appreciate your support!