All policy changes and updates are referenced below to the appropriate section of the CLG. These policy changes are effective 11/18/2021 unless otherwise noted.
To review the program guidelines changes made November 3, 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 5.16 (Alternative Qualification Requirements) has been updated to simplify the FICO bands for the DPA Edge products. Specifically, the 600–639 FICO band for borrowers with no present housing payment has been combined with the section for borrowers with a present housing payment. This newly updated section has the following language:
Section 5.17 (Present Housing Expense & Verification of Housing Payment) will not be updated as it already states that borrowers in the 600–639 FICO band with no housing expense, using a DPA Edge product, need to provide a VOR documenting no rent paid.
Section 5.34.12 (Gaps in Employment) has been updated to the following:
All Programs: FHA guidelines require all loan applications to contain a complete two-year history of employment on the 1003. CBCMA may require an LOX for files with less than two (2) years of employment history. The start date for this two-year history is the application date for the 1003.
Section 8.2 (Lock Policy) has been entirely revised. The new language is included below:
A complete closed loan package must be uploaded through CBC Mortgage Agency’s loan portal on or prior to the interest rate lock expiration date in order to meet the lock requirements. Locks that expire on the date of submission or within six (6) days after submission will be extended for seven (7) days from the loan submission date to allow for purchase loan conditions to be released and submitted by the correspondent. After a complete loan image is uploaded, the loan package will be reviewed and, if required, purchase conditions will be issued. If all purchase conditions are not cleared prior to lock expiration (or lock expiration plus the up to the seven  day extension, if applicable), roll fees will accrue at .025 per day (.175 per week). All roll fees will be withheld from the purchase advice.
Locks that are canceled or that expire and remain expired for thirty (30) days or more are eligible for relock at current-day pricing. If a loan is locked and then canceled (or expired), and then a relock request is received within thirty (30) days of the original lock, the loan pricing will be the worse-case of the current day pricing for the remaining lock period of the original lock less a .375 reinstatement fee and the lock period will be the remaining time on the original lock.
The lock is associated with the property address. If a borrower chooses to purchase a different property than was selected at the time of lock, the lock will need to be canceled and a new lock request submitted for the new property.« 4 Successful Down Payment Assistance Strategies For Lenders