All policy changes and updates are referenced below to the appropriate section of the CLG. These policy changes are effective 09/23/2021 unless otherwise noted.
To review the program guidelines changes made September 9, 2021, or earlier, please follow this link to the archived Correspondent Lending Guides.
These updates apply to everyone using the Chenoa Fund program—correspondents and TPO.
Section 5.17 (Present Housing Expense & Verification of Housing Payment) has been updated to clarify that these guidelines apply exclusively to the DPA Edge products; an update was also made clarifying that verifications of rent must come from third party sources:
All DPA Edge Products: All applications should contain a “present housing payment” unless the borrower is not currently making a housing payment. Present housing expense verification requirements are determined by the occupying borrower with the highest middle FICO score—all other requirements are determined by the occupying borrower with the lowest middle FICO score. All verifications of rent or housing expense must come from a third party source; for example, if the lease or mortgage is in the name of a spouse or significant other and the borrower cohabitates the dwelling, the verification of monthly payment may not come from the spouse or significant other that holds the lease or mortgage.
Section 5.33 (AUS) has been updated to clarify that only DU® will be allowed for conventional first mortgages:
HomeReady®: DU® only.
Standard Conventional: DU® only.
One new section has been added regarding appraisal requirements. This new section, 5.34.15 (Appraisal Overlays), applies only to conventional first mortgages:
5.34.15 (Appraisal Overlays)
All Conventional Programs: CBCMA will require the following for all first mortgage appraisals based on the CU score:
- 4.0–4.49: Desk review that supports value
- 4.5–5.0: Field review that supports value