All policy changes and updates are referenced below to the appropriate section of the CLG. These policy changes are effective 02/03/2022 unless otherwise noted.
To review the program guidelines changes made January 20, 2022, 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 revised to show that borrowers using either DPA Edge product must have a credit score of 620 or higher to use alternative qualifications, regardless of whether or not they have a present housing payment. The updated text is included below:
- If a borrower with a credit score of 620 or higher exceeds payment shock or DTI requirements, or both, refer to alternative qualification requirements; never to exceed 50% DTI
Section 5.17 (Present Housing Expense & Verification of Rent) has not had its content changed, but the 2nd paragraph was updated for ease of use.
Occupying borrowers in the 600–639 FICO range making a present housing payment in the form of rent at the time of application:
- If renting from an LLC or management company, a twelve-month verification of rent (VOR) is required to document rent paid
- If renting from relatives or individuals, twelve (12) months of canceled checks or bank statements are required to document the payment history
Section 7.22.2 (Second Loan Documentation Requirements) has been updated to not require a 2nd lien loan application in most instances:
- 2nd Lien Loan Application
- Note: Not required when the 2nd lien loan application has been disclosed appropriately in conjunction with the 1st lien application