All policy changes and updates are referenced below to the appropriate section of the CLG. These policy changes are effective 02/17/2022 unless otherwise noted.
To review the program guidelines changes made February 3, 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.
Sections 5.3 (FHA Offerings) and 5.31 (Fees to CBCMA) had the list of allowed fees for secondary financing expanded to include MERS registration/transfer fees:
The only fees chargeable to the borrower in conjunction with the secondary financing are prepaid interest, recording fees for the Deed of Trust, reasonable settlement fees, a courier fee to return the signed documents to the Lender, and a MERS registration/transfer fee.
5.15 (Payment Shock Requirements) had the following text added to it:
Borrowers living separately prior to purchasing a home using Chenoa Fund, but living together after closing, may combine their old housing payments to determine payment shock.
7.23 (Hazard Insurance) was updated to reflect a change to the effective coverage date. The effective coverage date must be no later than the disbursement date. The new text is provided below:
CBC Mortgage Agency requires the Homeowner Declarations page show an effective coverage date no later than the disbursement date, along with proof of premium paid.