21-01-04 Announcement—January 4 2021 Program Guidelines Update

01/04/2021

All policy changes and updates are referenced to the appropriate section below. These policy changes are effective 01/04/2021 unless otherwise noted.

Additionally, CBCMA has compiled all of its announcements related to COVID-19 into one section immediately following the Recent Updates and Announcements section. To review the program guidelines changes made December 22, 2020, or earlier, please follow this link to the archived Program Guidelines.

 

Due to changing industry needs, we retired our FHA Classic product on October 1, 2020. CBCMA no longer accepts registrations for this program. The FHA Classic product has been removed from our Product Matrix and other informational materials. In addition, the Product Matrix has been reformatted to improve readability and information accessibility, along with the Manufactured Housing Matrix.

 

The following document and file references have been updated in our guidelines and trainings:

  • 4506-T to 4506-C
  • 1003 to URLA
  • 92900-A to 92900-A/Addendum
  • FNMA 3.2 to MISMO 3.4

CBC Mortgage Agency is transitioning to using these documents and files in preparation for FHA and FNMA guidelines requiring these documents and files on March 31st, 2021. Until then, we will still accept the old documents and files.

 

Section 5.17 (Present Housing Expense & Verification of Housing Payment) has received a new paragraph, which will be its fourth paragraph:

Borrowers in the 620–659 FICO range and making a housing payment may have a housing gap of up to ninety (90) calendar days before closing. A letter of explanation will be required to explain the housing gap if it is larger than thirty (30) calendar days. For example, a borrower may have left a previous rental agreement and then lived rent-free with family in preparation for closing on a new home.

 

We would like to remind our correspondents that trailing documents need to be sent to the following address:

   CBC Mortgage Agency

C/O DocProbe

1820 Swarthmore Avenue

P.O. Box 2133

Lakewood, NJ 08701

 

We would also like to remind our correspondents that, if a borrower or seller is using a power of attorney (POA), a copy of the POA must be included with the closing package (section 8.5).

 

In December 2020, we released a large update with regards to servicing (and flood certificates). This update has been included again here as a reminder that, no later than January 31st, 2020, all correspondents need to be fully meeting these new guidelines.

Please Note: The changes below do not impact your MERS or FHA case number transfers. MINs (both TOS and TOB) for both the first and second mortgages should still be transferred to CBC Mortgage Agency (section 10.2). Do not add a sub-servicer to the loan record within MERS. Please transfer holder and servicing rights to CBC Mortgage Agency in FHA Connection (section 10.3.1). CBCMA will update the servicing rights once we receive the case transfer.

In addition, the forgivable second mortgage servicing information is not changing. The below changes only impact both First and Second Mortgage Servicing (repayable seconds only).

 

The December 2020 Servicing Announcement

In an effort to simplify the servicing process for borrowers, CBC Mortgage Agency (CBCMA) has contracted with a Servicer to service loans sold/delivered to CBCMA going forward. On first mortgages, this servicer will assume the servicing burden the moment a loan is sold to CBCMA so that borrowers do not experience two servicing transfers within a short period of receiving their loan. Upon implementation, transfer of the first mortgage servicing will happen only once, when CBCMA purchases the loan.

Second mortgages follow a slightly different process than do first mortgages since they are owned by CBCMA the moment they are created (the correspondent advances funds on behalf of CBCMA, the government entity, at closing). Second mortgages drawn through CBCMA’s document service, provided free to correspondents, will show the servicing address as the contracted Servicer. Documents prepared by any other provider can either incorporate CBCMA’s Servicer when the documents are prepared, or the servicing on the second can be transferred to Essex Mortgage when CBCMA reimburses the correspondent for the funds advanced to the borrower on behalf of CBCMA at closing. Do not add Essex as a sub-servicer in MERS.

Beginning as soon as possible, but no later than January 31, 2021, please update your goodbye letter to transfer servicing rights to our contracted Servicer when a loan is purchased/reimbursed by CBCMA.

 

These updates have changed many sections of our program guidelines. In an effort to be thorough and comprehensive, here are all the changes made (in detail):

 

5.34.4 (Flood Certificates):

All Programs: Any flood certification from a valid vendor is acceptable as long as the flood certification in the file matches the appraiser’s flood information; this must include a life of loan certification. If there is a discrepancy between the two, CBCMA will pull a CoreLogic flood certificate and bill the correspondent the $15 fee on the Purchase Agreement.

All FHA Programs: Please note that a property is not eligible for FHA insurance if a residential building and related improvements to the property are located within SFHA Zone A (a Special Flood Zone Area) of Zone V (a coastal area) and insurance under the National Flood Insurance Program (NFIP) is not available in the community.

A property is not eligible for FHA insurance if the improvements are or are proposed to be located within a Coastal Barrier Resource System (CBRS).

For more information, please refer to FHA 4000.1.

First Mortgage: Flood certifications must be from CoreLogic or Service Link; this must include a life of loan certification. If the correct flood certificate is not present, CBCMA will pull a CoreLogic flood certificate and bill the correspondent the $15 fee on the Purchase Agreement.

 

7.22 (Documentation—General Requirements): A bullet point in the original section was altered.

  • Life of Loan flood certificate
    • In some cases we will require the originator to transfer this certificate; if required, this will be found in the due diligence conditions prior to purchase
    • Second mortgage flood certificates may be from any valid vendor
    • First mortgage flood certificates must be from CoreLogic or Service Link

 

10.2 (Mortgage Electronic Registration Systems [MERS]): The MERS ORG ID number was incorrectly changed in a previous announcement and has been restored to the original number (1012881).

 

11.4.1 (Loan Package Contents and Delivery): Information about the “Goodbye Letter” has been updated for the first mortgage, the repayable second mortgage, and the forgivable second mortgage. The section in its entirety:

In order to confirm an accurate notice of transfer of servicing, a “Goodbye Letter,” CBCMA requires a sample copy of the notice of transfer of servicing to be included in the loan package at time of delivery. This applies to all first mortgages.

The information of CBC Mortgage Agency’s contract Servicer (address, contact information, etc.) to be used for the notice of transfer of servicing, the “Goodbye Letter” for the first mortgage, may be found in sections 12.3.3 (1st Mortgage Contract Servicer General Contact Information), 12.3.4 (1st Mortgage Contract Servicer General Mailing Address), 12.5.1 (1st Mortgage Payment Address), 12.5.2 (First Mortgage Overnight Delivery), and 12.7.1 (First Mortgages [Qualified Written Requests]). The general mailing address is included below:

   Essex Mortgage

ISAOA/ATIMA

PO Box 100077

Duluth, GA 30096

The primary, toll free customer service number is (855) 748-2722. Hours are Monday through Friday, 8:30am–5:00pm PT. Payments may also be made online at http://www.essexmortgage.com/MyAccount.

The information of CBC Mortgage Agency’s contract Servicer (address, contact information, etc.) to be used for the notice of transfer of servicing, the “Goodbye Letter” for the second mortgage (repayable seconds only), may be found in sections 12.3.5 (Repayable 2nd Mortgage Contract Servicer General Contact Information), 12.3.6 (Repayable 2nd Mortgage Contract Servicer General Mailing Address), 12.5.3 (Repayable 2nd Mortgage Payment Address), 12.5.5 (Overnight Deliveries 2nd Mortgages), and 12.7.2 (Second Mortgages [Repayable] [Qualified Written Requests]). The general mailing address is included below:

   ATTN: Cashiering

2100 SE 17th Street #112

Ocala, FL 34471

The primary, toll free customer service number is (888) 892-0881. Hours are Monday through Friday, 8:30am–5:00pm PT. Payments may also be made online at http://www.essexmortgage.com/MyAccount.

CBC Mortgage Agency’s address and contact information to be used for the notice of transfer of servicing, the “Goodbye Letter” for the second mortgage (forgivable seconds only), is as follows:

   CBC Mortgage Agency

ISAOA/ATIMA

912 W Baxter Drive, #150

South Jordan, UT 84095

The primary, toll free customer service number is (866) 563-3507. Hours are Monday through Friday, 8:00am–5:00pm MST. Payments do not apply for forgivable seconds.

 

12.2 (CBCMA Codes): The MERS ORG ID number was incorrectly changed in a previous update and has been restored to its original number; the new HUD Servicer ID has remained. In addition, instructions have been added to ensure correct use of these codes.

  • MERS ID: 1014821 (for TOS and TOB transfers on 1st and 2nd Mortgages in MERS)
  • FHA ID: 9413-00000-8 (for transfer of Beneficiary rights in FHA Connection)
  • NMLS ID: 1186381
  • HUD Servicer ID: 00772-000-4 (for transfer of Servicing rights in FHA Connection)
  • CBCMA EIN: 46-2780478

 

12.3 (Contact Information): This section has been updated with contract Servicer information, which created four new sections: 12.3.3 (1st Mortgage Contract Servicer General Contact Information), 12.3.4 (1st Mortgage Contract Servicer General Mailing Address), 12.3.5 (Repayable 2nd Mortgage Contract Servicer General Contact Information), 12.3.6 (Repayable 2nd Mortgage Contract Servicer General Mailing Address).

12.3.3 (1st Mortgage Contract Servicer General Contact Information)

   Essex Mortgage

Website: http://www.essexmortgage.com/MyAccount

Email: support@myessexmortgage.com

Toll Free Numbers:

Customer Service: 855-748-2722

Collections/Payment Assistance: 855-775-2931

Loss Mitigation or SPOC: 855-766-6540

Foreclosure Team: 855-781-3901

Property Tax Team: 833-662-0238

Property Tax Fax Number: 817-310-7507

Insurance Team: 833-811-3064

12.3.4 (1st Mortgage Contract Servicer General Mailing Address)

   Essex Mortgage

ISAOA/ATIMA

P.O. Box 100077

Duluth, GA 30096

12.3.5 (Repayable 2nd Mortgage Contract Servicer General Contact Information)

Essex Mortgage

Website: http://www.essexmortgage.com/MyAccount

Email Address: loanservicing@essexmortgage.com

General Contact Number: 888-892-0881

12.3.6 (Repayable 2nd Mortgage Contract Servicer General Mailing Address)

   ATTN: Cashiering

2100 SE 17th Street #112

Ocala, FL 34471

 

12.4.3 (Mortgagee Clause): The mortgagee clause for first and second mortgages (repayable and forgivable) has been updated.

   Essex Mortgage

ISAOA/ATIMA

PO Box 29411

Phoenix, AZ 85038-9411

 

12.5 (Borrower Payment Addresses): This section has been updated with Contract Servicer information: 12.5.1 (1st Mortgage Payment Address), 12.5.2 (1st Mortgage Overnight Delivery), 12.5.3 (Repayable 2nd Mortgage Payment Address), 12.5.5 (Overnight Deliveries 2nd Mortgage). Section 12.5.4 (Forgivable 2nd Mortgage Payment Address) is included for consistency, though its content has not changed.

12.5.1 (1st Mortgage Payment Address)

   Essex Mortgage

ISAOA/ATIMA

PO Box 105178

Atlanta, GA 30348-5178

12.5.2 (1st Mortgage Overnight Delivery)

   ATTN: Lockbox 105178 Services – Essex

3585 Atlanta Avenue

Hapeville, GA 30354-1705

12.5.3 (Repayable 2nd Mortgage Payment Address)

   ATTN: Cashiering

2100 SE 17th Street #112

Ocala, FL 34471

12.5.4 (Forgivable 2nd Mortgage Payment Address)

   CBC Mortgage Agency

ISAOA/ATIMA

912 W Baxter Drive, #150

South Jordan, UT 84095

12.5.5 (Overnight Deliveries 2nd Mortgages)

   ATTN: Cashiering

2100 SE 17th Street #112

Ocala, FL 34471

 

12.6 (Wiring Instructions [First Mortgages]): This is a new section with information regarding wiring.

12.6.1 (Forwarded Payments—Payment Clearing)

   Beneficiary Name: ServiceMac, LLC Bank

Name: Wells Fargo

City, State: Atlanta, GA

Beneficiary Account #: 4728377680

ABA Routing #: 121000248

ATTN: Reference to transaction, Company Name or loan number

12.6.2 (Forwarded Payoffs—Payoff Clearing Beneficiary)

   Name: ServiceMac, LLC

Bank Name: Wells Fargo

City, State: Atlanta, GA

Beneficiary Account #: 4749659454

ABA Routing #: 121000248

ATTN: Reference loan number(s)

 

12.7 (Qualified Written Requests): This is a new section with information regarding qualified written requests for both first and second (repayable) mortgages.

12.7.1 (First Mortgages)

Qualified Written Requests (QWRs) are required to be submitted to the address listed below. When Essex Mortgage is in receipt of a Qualified Written Request (as defined by RESPA), an acknowledgment notice is sent within five (5) business days.  We will respond to you within thirty (30) business days of receipt of your written notice, unless otherwise defined by RESPA guidelines.

   Essex Mortgage

ISAOA/ATIMA

PO Box 100078

Duluth, GA 30096

12.7.2 (Second Mortgages [Repayable])

Qualified Written Requests (QWRs) are required to be submitted to the address listed below. When Essex Mortgage is in receipt of a Qualified Written Request (as defined by RESPA), an acknowledgment notice is sent within five (5) business days.  We will respond to you within thirty (30) business days of receipt of your written notice, unless otherwise defined by RESPA guidelines.

   ATTN: Customer Care

2100 SE 17th Street #112

Ocala, FL 34471