06/03/2021
All policy changes and updates are referenced below to the appropriate section of the CLG. These policy changes are effective 06/03/2021 unless otherwise noted.
CBCMA has compiled all of its announcements related to COVID-19 into one section immediately following the Recent Updates and Announcements section of the Correspondent Lending Guide.
To review the program guidelines changes made May 20, 2021, or earlier, please follow this link to the archived Correspondent Lending Guides.
5.17 (Present Housing Expense & Verification of Housing Payment): Chenoa Fund requirements are, for borrowers in the 620–639 FICO band not making a present housing payment, that borrowers provide a verification of housing payment (a VOR) to document that no rent must be paid. This section’s wording was updated to make this more clear. (Note: It is not required for borrowers to provide a letter of explanation in addition to the verification of housing payment.)
For any borrowers in the 620–639 FICO band not making a present housing payment, a Verification of Rent will be required to be completed by the landlord or homeowner which must document that no rent is required to be paid.
5.34.9 (Ineligible Features) and 6.2.1 (Specific Details on Manufactured Housing): Chenoa Fund requirements regarding easements and deed restrictions have been clarified. Deed restrictions allowed per FHA 4000.1 are generally allowed, but CBCMA reserves the right to review certain easements and deed restrictions for approval. The revised bullet point text can be found below:
Deed restrictions allowed per FHA 4000.1 are permissible; however, easements and deed restrictions that affect marketability must be reviewed and approved by CBCMA to be eligible for purchase, unless the easement or deed restriction expires upon foreclosure (requests for review should be submitted to scenariodesk@chenoafund.org)
5.34.12 (Gaps in Employment): The text of this section has been updated to the following:
All Programs: Employment gaps greater than thirty (30) days within the past two (2) years require a borrower LOE to explain the reason for the gap.
Our requirements for manufactured housing have been expanded to give more borrowers access to Chenoa Fund down payment assistance. Borrowers may now qualify for Chenoa Fund DPA for a manufactured home if they have a minimum FICO score of 620 (DPA Edge) or 640 (Rate Advantage). In addition, new construction for manufactured housing is now allowed, provided the manufactured home title conversion to real property is initiated prior to CBCMA purchasing the loan.
This change affects the following sections:
- 6.2 (CBC Mortgage Agency Additional Guidance): Line added, “New construction is allowed for manufactured housing. The home title conversion to real property must be initiated prior to loan purchase. In Non-certificate of Title States, the house must be recognized as real property prior to loan purchase.”
- 6.2.1 (Specific Details on Manufactured Housing): Two lines are being revised:
- Minimum Required Credit Score:
- All DPA Edge Products: 620
- Rate Advantage: 640
- DTI Requirements: Based on FICO score:
- 620–639: 45% DTI.
- 640+: 50% DTI
- Borrowers may not use alternative qualification requirements to exceed DTI limits.
- Minimum Required Credit Score:
