21-01-15 Announcement—January 15 2021 Program Guidelines Update

01/15/2021

All policy changes and updates are referenced to the appropriate section below. These policy changes are effective 01/15/2021 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 in the Correspondent Lending Guide. To review the program guidelines changes made January 4, 2021, or earlier, please follow this link to the archived Program Guidelines.

Over the last couple of weeks, CBC Mortgage Agency has announced loan servicing changes that will create a better borrower experience: Essex Mortgage has been contracted to sub-service FHA and repayable second mortgage loans delivered to CBC Mortgage Agency. We would like to clarify that this change only affects our FHA products and our repayable second mortgages. Conventional first mortgages and forgivable second mortgages will still be transferred to CBC Mortgage Agency for servicing. Minor textual changes in the Program Guidelines have been added to make this more clear.

Additionally, CBC Mortgage Agency will still be your point of contact for any Escrow concerns, or concerns regarding the Purchase Advice, balances, etc. CBC Mortgage Agency will be your intermediary for Essex Mortgage.

The following paragraph was added to section 2 (Why Use Chenoa Fund?):

In addition, CBCMA offers exceptional customer service. As part of our commitment, we offer a variety of resources to help answer your questions and to assure a smooth experience. For instance, our Scenario and Exception teams are available for video conferencing and screen sharing, and they can walk you through second mortgage input.

The following sections and documents were changed to emphasize that the Note needs to be received (by CBCMA) within 3 days of purchase if the mortgage loan is using a reverse bailee:

1. 34.7 (Required Documents): [line added at end] The notes for mortgages using a reverse bailee must be delivered to CBCMA within three (3) days after the reverse bailee is received.
2. 19 (Mortgage and Note): [line added at end] For mortgages using a reverse bailee, the note must be delivered to CBCMA within three (3) days after the reverse bailee is delivered.
3. 22.2 (Second Loan Documentation Requirements): [middle bullet point edited] 2^nd Lien Note—payment address for repayable 2nds must reflect CBCMA’s servicing address shown above; must be delivered to CBCMA within three (3) days of reverse bailee delivery if reverse bailee is used
4. 10 (Final Documents): [line added at end of 2^nd to last paragraph] (However, the notes for both mortgages must be delivered within three [3] days of reverse bailee delivery if a reverse bailee is used.)
5. Loan Delivery Checklist: [bullet point edited] Note with Allonge, 1^st and 2^nd (2^nd to be endorsed to CBCMA; must be delivered within 3 days of reverse bailee delivery if reverse bailee is used)

The following line was added to Section 5.17 (Present Housing Expense & Verification of Housing Payment), fourth paragraph and following the first sentence:

(This gap may be included in the 12-month verification of housing payment or expense.)

The following bullet point was added to section 5.34.9 (Ineligible Features):

1. Illegal Accessory Units (please follow all HUD guidelines and all zonings laws on allowable features)