21-06-30 Announcement—June 30 2021 Program Guidelines Update

06/30/2021

All policy changes and updates are referenced below to the appropriate section of the CLG. These policy changes are effective 06/30/2021 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 June 22, 2021, or earlier, please follow this link to the archived Correspondent Lending Guides.

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Announcement

CBC Mortgage Agency is rescinding all COVID-19 overlays to the Chenoa Fund program. These overlays will still be viewable in our archived Correspondent Lending Guides. This is effective June 30th.

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Program Guidelines Changes

Section 5.34.14 (Self-employed Borrower Business Verification) has been added. Its text is the following:

All Programs: CBCMA requires that self-employed borrowers have their business verified as open and operating within ten (10) calendar days prior to the Note date. The correspondent must provide one of the following to confirm that the business is open and operating:

  • Evidence of current work (executed contracts or signed invoices that indicate the business is operating on the day the correspondent verifies self-employment)
  • Evidence of current business receipts within ten (10) days of the Note date (payment for services performed)
  • Correspondent certification that the business is open and operating (correspondent confirmed through a phone call or other means)
  • Business website demonstrating activity supporting current business operations (timely appointments for estimates or service can be scheduled)

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Section 7.7 (QM Points and Fees Calculation) has been updated in its entirety to the following:

CBCMA requires that all first mortgages meet the QM Points and Fees calculation, also called the 3% points and fees rule.

As a best practice and to eliminate undo delay in the purchasing of loans delivered to CBC Mortgage Agency, when a borrower is charged discount points it is recommended that correspondents include their published rate sheet in order to allow CBCMA to easily determine bona-fide discount points from discount points that must be calculated in the 3% points and fees calculation.