21-12-09 Announcement—December 9 2021 Program Guidelines Update

Version 11.8

All policy changes and updates are referenced below to the appropriate section of the CLG. These policy changes are effective 12/09/2021 unless otherwise noted.

To review the program guidelines changes made November 18, 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.

.

Announcement

CBC Mortgage Agency, provider of Chenoa Fund down payment assistance, will use FHA and FNMA’s updated standard loan limits for 2022 effective immediately. Chenoa Fund does not have overlays on standard loan limits. High balance loans are also allowed with the Chenoa Fund Rate Advantage (3.5% or 5% DPA amounts), DPA Edge Repayable Second (3.5% or 5% DPA amounts), and DPA Edge Soft Second (3.5% DPA amount only) products (per section 5.5.1 of our Correspondent Lending Guide).

Thank you for choosing Chenoa Fund and helping us to improve access to sustainable homeownership!

You can read more about the new loan limits for FHA here, for FNMA here.

.

Guidelines Updates

Section 5.34.4 (Flood Certificates) had its references to 2nd mortgages removed.

.

Section 8.5 (Power of Attorney) had a line removed that suggested that a borrower must be present at closing even if using Power of Attorney. Borrowers are not required to be present at closing if using Power of Attorney.

.

Section 7.21.2 (Escrow Holdback Requirements—Required Form) has been removed. This form is no longer required for Escrow Holdbacks, even if an exception is required.

Notice of Transfer/Goodbye Letter information has been updated to the following:

Number: 888-892-0881

Availability: Mon–Fri, 9am–7pm ET

This affects the following sections: 11.4.1 (Goodbye Letter: FHA First Mortgages) and 11.4.2 (Goodbye Letter: Repayable Second Mortgages)