This email is being provided to confirm that Chenoa Fund is accepting loan applications for all of its down payment assistance programs. These programs include:
• DPA Edge: Soft Second Product
• DPA Edge: Repayable Second Product
• Rate Advantage Program
• Conventional Program
Background
On April 18, 2019, FHA issued a Mortgagee Letter 19-6 regarding a new policy on the provision of down payment assistance. The issuance of this letter has been cause for much confusion regarding the operation of down payment programs throughout the United States and whether loan officers can continue to offer such programs to qualifying borrowers.
On April 23, CBC Mortgage Agency filed a law suit against HUD for engaging in rule making without proper public notice and comment. Subsequently HUD agreed to a 90-day stay on the Mortgagee Letter, while the case is heard in Federal Court.
As a result, the Chenoa Fund down payment assistance programs are available in the United States as they were prior to the April 18. Having secured the 90-day stay, all loans with a case number issued on or prior to July 23rd are eligible for purchase, just as they were prior to the issuance of the mortgage letter.
If you have questions. If you have questions, we encourage you to contact your Chenoa Fund Lock Desk and/or Account Executive.
Program updates.
At Chenoa Fund, we value our relationship that we have developed with you over the years in meeting the needs of your borrowers. It is our commitment that we will continue to provide you important and current updates regarding FHA/HUD position on down payment assistance. But for now it is business as usual.
