All policy changes and updates are referenced below in the appropriate section of the Correspondent Seller Guide. These policy changes apply to everyone using the Chenoa Fund down payment assistance program and are effective beginning 1/21/2026, unless otherwise noted.
CBC Mortgage Agency has updated its Early Payment Default Policy. This change affects all loans locked on or after January 21, 2026.
There is an “Early Payment Default” with respect to any Mortgage Loan if the related Mortgagor fails to make any of the first through sixth Monthly Payments due Purchaser for such Mortgage Loan on or prior to the last day of the calendar month in which such Monthly Payment is due. For purposes of this Agreement, a payment for which Purchaser deducted funds at the time it purchased the Mortgage Loan from Seller shall not be considered the first payment due Purchaser. Seller shall not have the right to advance funds for or on behalf of a Mortgagor for any payment or to otherwise make funds available to any Mortgagor to avoid or cure a default by the Mortgagor.
In the event of an Early payment Default, Purchaser may require , Seller to: (1) repurchase the related Mortgage Loan; or (2) pay Purchaser 1.75% of the unpaid principal balance as of the date of Purchase plus $2,000 (2) and a Subsequent Transferee requires a repurchase of the Mortgage Loan due to an Early Payment Default, Purchaser may still require Seller to repurchase the related Mortgage Loan at the Repurchase Price minus any amounts paid pursuant to option (2). To the extent an Agency provides relief to Purchaser or its assigns for any liabilities or Repurchase Obligations resulting from an Early Payment Default, Purchaser shall be under no obligation to provide comparable relief to Seller. Any payment pursuant to this paragraph shall not limit Seller’s indemnification obligations hereunder with respect to such Mortgage Loan.
This announcement affects the following sections in the Seller Guide:
11.1 | First and Early Payment Defaults.
Loan Delivery
The mortgage loan must be delivered to CBCMA in purchasable condition on or before the lock expiration date. Loans must be current at the time of purchase. Loans in forbearance are not eligible for purchase. For loans purchased after the 15th of the month, a current pay history is required prior to purchase.
A delivered loan is considered in purchasable form if it meets the requirements of the following:
- Product and program parameters.
- Federal, state, and local laws and regulations.
- Industry standards, the insuring requirements of FHA, and secondary market investor guidelines.
- The requirements of this guide, including any updates, and the Seller Agreement (including in loan documentation).
- CBCMA specific documentation and CBCMA Loan Delivery Checklist.
A closed mortgage loan submitted in non-purchasable form is considered incomplete and may be subject to relocking or repricing for a lock extension. Refer to the lock policy section of this guide for pricing details.
Loans must be uploaded in accordance with CBCMA’s specific Loan Delivery Checklist. Uploaded documents will be reviewed by CBCMA’s due diligence team in a timely manner after receipt, and the Seller will be notified of any issues which impact CBCMA’s ability to purchase the mortgage loan through the posting of conditions on the client site.
Deficiencies may include, but are not limited to, any issues that impair CBCMA’s ability to service or sell the mortgage loan. All Deficiencies must be cleared within 90 days of closing to ensure the sale of the loan.
This announcement affects the following sections in the Seller Guide:
7.3 | Loan Delivery
USDA30 Guidelines Have Moved
The USDA30 guidelines were removed from the Seller Guide. First mortgage loans submitted to CBCMA must conform with USDA 3555-1 Technical handbook as well as the FHA 4000.1 Handbook and be of investment quality and saleable on the secondary market. Secondary Financing with the USDA program is not allowed at this time.
