CBC Mortgage Agency

NMLS: 1186381
912 W. Baxter Drive, Suite 150
South Jordan, Utah 84095

Main: 866.563.3507
Servicing: 866.563.7572
Fax: 435.237.0022

As Seen in the Chrisman Report

February 24, 2020 By

June 5, 2020

Be part of the solution. Minorities have 1/10th the net worth of Whites. According to two prominent African American leaders, this wealth gap is the greatest civil rights issue of our day. Homeownership is the best vehicle for acquiring wealth. You can enable the engine of wealth creation in your community by helping minorities learn about down payment assistance programs to buy now and begin building wealth. Be more than simply a mortgage lender pursuing the latest refi or purchase boom. Now is the time to take a stand and help those missing out on homeownership opportunities. Be a part of the solution in the creation of housing equality and bridging the racial wealth gap. Contact Chenoa Fund and find out how you can do your part to enact real change. We have the training materials to aid you in your active community outreach.

Read on the Chrisman Report:


February 20, 2020

HUD’s attempt to prohibit national government DPA was rejected by a federal court in July 2019. But apparently the agency isn’t done trying. In its Regulatory Plan for Fiscal Year 2020, HUD has again proposed to limit where governmental entities like the Chenoa Fund can operate. By limiting the geographic scope of government programs, HUD would create regulatory monopolies. The agency is also proposing to dictate acceptable pricing, even though command and control economic regulations never actually get this right, usually causing more harm to consumers than help. The loss of DPA options for borrowers and competitive pricing provided by programs like Chenoa Fund would disproportionately impact minorities, who have far less inter-generational family wealth than the typical white person. HUD is making the move even as a new study has found that the receipt of down payment assistance does not significantly increase default risk. That study is found here.

Read on the Chrisman Report:


January 30, 2020

Critics of down payment assistance (DPA) claim that DPA programs negatively impact the performance of government-insured FHA loans. But that myth has been debunked by a ground-breaking report from the Harvard Joint Center for Housing Studies. "The receipt of DPA is not significantly associated with default risk," says a center working paper, A Cautionary Tale of How the Presence and Type of Down Payment Assistance Affects the Performance of Affordable Mortgage Loans. "In particular, while grant assistance from a government or community organization is marginally significant as a predictor of default risk, this effect disappears altogether when racial controls are incorporated in the model. Thus, the receipt of DPA appears to be unrelated to default risk." Click here to access a link to the full report.

Read on the Chrisman Report:


January 27, 2020

I'm seeing a lot of discussion about the merits of down payment assistance programs (DPA) and it's clear that there's more to it than meets the eye. One important consideration is that many white families count on their relatives for assistance when coming up with a down payment to buy their homes. Average wealth among African American families is far less than for their white counterparts. So when it comes to seeking family support in the purchase of a residential property, those families typically don't have the resources that white families do. This disparity holds back minorities in the housing market. The thinking is that down payment assistance can help bridge the gap by providing the cash families need to buy a home. Check out some interesting data on wealth disparity and how down payment assistance can level the playing field in the 2019 State of Down Payment Assistance Report from the Chenoa Fund.

Read on the Chrisman Report:


November 5, 2019

DPA Does Not Contribute to Higher Defaults. A recent Harvard working paper prepared for the Center for Household Financial Stability at the Federal Reserve Bank of St. Louis by Michael Stegman, et al., using extensive data from 46,000 loans originated principally between 1995-2005 with high LTV (median 97%), found that the receipt of DPA appears to be unrelated to default risk, when controlling for other risk factors, such as credit score, DTI, and even race. Referencing HUD’s descriptive use of data in its 2018 report to Congress, where HUD concluded that government DPA is associated with higher risk of default, the paper stated that, “In contrast to [HUD’s] descriptive analyses, our multivariate analysis indicates that the receipt of DPA is not significantly associated with default risk.” CBC Mortgage Agency agrees with the working paper’s admonition that in setting guidelines around DPA, policy makers should take care not to close off opportunities to aspiring minority home buyers.

Read on the Chrisman Report:


November 5, 2019

Chenoa Fund: Investing in Communities – It’s no secret that gentrification is bringing a complicated web of changes to many urban communities. For homeowners, gentrification can mean rising home values. But for lower-income families struggling to hang on to an affordable rental close to work, gentrification can be a nightmare. More than 11 million Americans now use more than half their monthly salaries for rent, and renters need to earn at least $20.30 per hour to afford a modest, two-bedroom apartment. In six states and the District of Columbia, affording such an apartment requires an hourly wage of at least $25. To help counter the trend, CBC Mortgage Agency is investing in the Workforce Housing Opportunity Fund, which rehabilitates and develops affordable and workforce housing in communities with soaring rents. It’s not the whole answer to our nation’s affordable housing crisis, but it’s a good start.

Read on the Chrisman Report:


November 1, 2019

Chenoa Fund: Helping Minorities Break Into Homeownership Historically, the homeownership rate for racial minorities has been well below that for whites. This is especially true for African Americans. After creeping upward over 30 years and peaking at 50% in 2004, the black homeownership rate began to fall, dropping to 40.6% in 2019 and erasing all the gains made since passage of the Fair Housing Act in 1968. One reason: the racial wealth gap. For many reasons, it has been harder for African Americans and other minorities to accumulate funds for down payments and buy homes. At the Chenoa Fund, more than half of our borrowers are minority families, and many lack relatives who can gift them funds for a down payment. We’re proud to serve as their bridge to homeownership, which experts agree is a critical factor in economic stability and advancement.

Read on the Chrisman Report:


October 29, 2019

Chenoa Fund, following up for success. Many homebuyers obtaining a mortgage find that aside from a monthly bill, communications with their lender pretty much stop after they sign on the dotted line. At the Chenoa Fund, we take a different approach. Through regular outreach, we stay in touch with our borrowers to provide support, reminders and, if needed, advice. Customers appreciate it. ‘The post-purchase calls, emails/texts are encouraging and serve as a regular reminder that we were able to accomplish this feat,’ says Gabrielle B. ‘It feels great knowing they are on your side and want you to be a successful homeowner,’ adds Danielle M. We love hearing these reviews, because they validate our philosophy: when our borrowers succeed, we all succeed. We want our homebuyers to know that we value them and believe in them. Staying in touch is a small gesture that can mean a lot.”

Read on the Chrisman Report:


October 25, 2019

Chenoa Fund: Help for Single Moms. “Morgan A. is a single mother who works two jobs to provide for her young daughter. It’s a tough life, and her dream of enhancing her family’s stability by buying a home was just out of reach, year after year. But through the Chenoa Fund, Morgan finally received the boost she needed to obtain a loan. Her words of appreciation are powerful: ‘The Chenoa Fund has made the impossible possible. My daughter will now have a home to grow up in, a place to drive by and point [at] and say, ‘That is where I grew up.’’ Meredith B. had trouble obtaining a loan because of a bankruptcy years earlier. The Chenoa Fund helped. Now, ‘my son can feel secure knowing we don’t have to move anymore.’ At the Chenoa Fund, we’re proud to help deserving moms make life better for their kids.”

Read on the Chrisman Report:


October 21, 2019

Chenoa Fund: Helping Homebuyers Overcome Obstacles – Homeownership may be the cornerstone of the American Dream, but achieving it isn’t easy. Even couples with steady jobs and solid incomes sometimes struggle to secure a mortgage, perhaps because of past medical or financial difficulties or high rents that prevent them from accumulating a down payment. State housing programs are intended to support such borrowers with down payment help or other assistance, but many carry restrictions that lock out qualified buyers. Some limit assistance to lower incomes, while others help only first-time buyers. Many frustrated borrowers have found an ally in the Chenoa Fund. With reasonable credit controls and borrower education through a HUD-approved provider, Chenoa Fund programs are helping thousands of buyers escape the renters’ trap and buy homes. The Chenoa Fund is administered by CBC Mortgage Agency, whose mission is to increase affordable, sustainable homeownership across the U.S.

Read on the Chrisman Report:


October 17, 2019

Chenoa Fund: A Safe and Happy Home: Through the years, Chenoa Fund’s programs have helped more than 17,000 low- and moderate-income borrowers obtain loans and realize long-held dreams of owning a home. When asked what they value most about the experience, most buyers provide a common response: the chance to live in a safe and happy home. Darlene T. recalled the joy she felt at leaving behind her “overpriced, poorly maintained rental” in an “undesirable part of town” and moving into her own house: “The neighborhood is beautiful, safer and has many conveniences close by.” Brittnie S. also was grateful to have a “safe place to come home to” after long shifts as a nurse. For these and other former renters, homeownership provides a sense of security that has a decisive impact on their quality of life. That’s an outcome worth celebrating,

Read on the Chrisman Report:


October 15, 2019

Chenoa Fund: Helping Homebuyers Overcome Obstacles – Homeownership may be the cornerstone of the American Dream, but achieving it isn’t easy. Even couples with steady jobs and solid incomes sometimes struggle to secure a mortgage, perhaps because of past medical or financial difficulties or high rents that prevent them from accumulating a down payment. State housing programs are intended to support such borrowers with down payment help or other assistance, but many carry restrictions that lock out qualified buyers. Some limit assistance to lower incomes, while others help only first-time buyers. Many frustrated borrowers have found an ally in the Chenoa Fund. With reasonable credit controls and borrower education through a HUD-approved provider, Chenoa Fund programs are helping thousands of buyers escape the renters’ trap and buy homes. The Chenoa Fund is administered by CBC Mortgage Agency, whose mission is to increase affordable, sustainable homeownership across the U.S.

Read on the Chrisman Report:


October 11, 2019

In Tuesday October 2’s Chrisman Report, a national lender referenced guidelines for down payment assistance (DPA) programs requiring a legal opinion per Mortgagee Letter 2019-06. CBC Mortgage Agency reminds the industry that FHA withdrew that letter in response to ligation. NONE of its provisions are in effect. As part of the litigation, FHA acknowledged that there are no jurisdictional limitations on government DPA providers (click here). Relatedly, industry rumors indicate that HUD plans to limit national government DPA programs by redefining what it means to improperly “financially benefit” from a transaction. Any new restrictions or definitions imposed by FHA on government DPA must be done through notice-and-comment rulemaking, which requires public participation and typically takes 12-24 months to complete. To support any new rule, HUD must first collect loan performance data on individual programs. Since such a rule would significantly impact tribes, HUD must also conduct meaningful tribal consultation.

Read on the Chrisman Report:


October 10, 2019

Chenoa Fund: Thumbs Up from Lenders, Part Two: One of our goals is to serve as an augmentation to state-based homebuyer assistance programs, which have restrictions that tend to limit eligibility. Our recent survey of 735 lenders suggests we’ve found an important niche, and that loan officers appreciate our efforts to keep paperwork and fees minimal and rates and credit score requirements reasonable. As one lender told us, “Local and state DPA programs should not have a monopoly on down payment assistance programs. The market benefits when borrowers have many choices.” Lenders also appreciate that our service and products are consistent nationwide, allowing them to learn and follow just one set of rules: “The availability of this program in all 50 states is a huge advantage. State-specific programs require learning separate guidelines or certification, which is a barrier for many originators’ ability to offer down payment assistance.”

Read on the Chrisman Report:


October 4, 2019

"Chenoa Fund: Thumbs Up from Lenders, Part One: Earlier this year, we surveyed 735 lenders about our program. The goal: to find out what we're doing right and what we can do better. To say we've been touched by the results would be a major understatement. The most heartening finding? Three out of four lenders said their customers could not have purchased homes without our DPA help. Here's how two lenders summed it up: 'Most of the people I have been able to help with the Chenoa program are minority buyers who don't have a family member who can gift them funds for a down payment. This program has been a huge blessing.' And this: 'There are many good people [who] ... pay their bills on time but just have a hard time setting aside savings ... These people deserve a chance too.' We couldn't agree more."

Read on the Chrisman Report:


August 30, 2019

"DPA - Where do we go from here? Part 9 in Series: Of all the barriers keeping people from becoming homeowners, one seems most daunting of all: the down payment. A report by The Urban Institute notes that 2/3rds of renters cite "down payment" as a key obstacle. We must decide if supporting DPA is in the best interests of our industry and nation. Will DPA lead to riskier lending, as critics warn? Can it be provided responsibly? Can assistance be used to lift minorities out of intergenerational poverty, providing them the best chance possible of creating a better future? CBC Mortgage Agency is aware of concerns surrounding DPA. We take extraordinary steps - from underwriting restrictions to pre/post-purchase borrower education and loan performance monitoring - to ensure sound lending practices and acceptable performance. DPA, done responsibly, helps families escape the financial trap of perpetual renting and build stable, prosperous futures. That's an outcome we should get behind."

Read on the Chrisman Report:


August 27, 2019

"We have clarity on DPA, for now. Here is the 8th in a Series on DPA. HUD has provided clarity to the industry: Last Friday, HUD filed a motion to resolve the litigation bought against it because of ML 2019-06. HUD's motion included a sworn declaration from a HUD official, Julie Shaffer, stating 'HUD does not have a basis to enforce jurisdictional limitations on governmental entities providing down payment assistance...HUD will not issue any policies with respect to jurisdictional limitations with respect to the provision of DPA other than through rulemaking.' CBCMA continues to provide DPA responsibly, in a manner that protects the MMIF, taking great care to ensure that FHA loans perform well. We've helped more than 16,000 creditworthy borrowers achieve homeownership, and we're proud of our record. DPA, done responsibly, helps families escape the financial trap of perpetual renting and build stable and prosperous futures. That's an outcome we should all get behind."

Read on the Chrisman Report:


August 23, 2019

Support for/against HUD Mortgagee Letter 2019-06 (7th in series on DPA). "At CBC Mortgage Agency, we watched reaction to HUD's new rules with interest, and dismay. Eight states came out in favor of the proposed policy, choosing to stifle consumer choice rather than face competition. The losers? Americans needing help moving up the housing ladder. We joined NCSHA in an effort to collaborate with state HFAs to establish markets for DPA paper through efforts like the CRA Note Exchange. But some states prefer regulatory monopolies. They've even sued organizations seeking to provide DPA in their domains. The Chenoa Fund offers one set of guidelines and funding processes nationwide. Multiple internal pricing surveys show our pricing to consumers is better by one-eighth percent, and our process is simpler for lenders. Several states have improved pricing to compete with the Chenoa Fund program. Bravo. That's vivid evidence that marketplace competition is benefiting consumers."

Read on the Chrisman Report:


August 20, 2019

Background on Lawsuit against HUD over Mortgagee Letter 2019-06: Part 6 in Series on DPA. As explained in the original press release, CBC Mortgage Agency sued HUD on grounds that the agency failed to follow rulemaking processes required by federal law. HUD also failed to follow an executive order and its own policy, which requires federal agencies consult with tribes before making policy or rule changes which affect Native Americans. Additionally, HUD didn't notify Congress before issuing its new rules, nor weigh the social costs of its discriminatory new policy. Regardless of one's position on the merits of down payment assistance, it's clear that HUD erred in issuing Mortgagee Letter 2019-06. Secretary Ben Carson admitted before the House Committee on Financial Services that HUD should collect data before moving forward with new policy. (See video at 2:21:30). We welcome rescission of ML 2019-06, and seek a constructive dialogue on DPA.

Read on the Chrisman Report:


August 16, 2019

Part 5 in a series on DPA: Earlier this year, HUD issued Mortgagee Letter 2019-06 that restricted the use of DPA by governmental entities like states, cities, or tribal governments. The letter purported to make several changes to existing law, and the upshot was trouble. As the NCSHA rightly pointed out, the HUD decree caused several state HFAs to suspend their programs. Issued without notice and comment, HUD's letter also stranded many would-be borrowers right in the middle of the home buying process. Convinced the letter had been issued in violation of proper procedure, CBC Mortgage Agency sued in federal court, securing a preliminary injunction while the case is heard. On August 13, 2019, Mortgagee Letter 2019-12 was issued, rescinding HUD's prior letter. CBC Mortgage Agency welcomes this latest HUD notice and hopes this signals the beginning of a constructive dialogue on the merits of responsible DPA.

Read on the Chrisman Report:


August 13, 2019

Chenoa Fund: Creating a Legacy of Responsible Borrowers: Part 4 in a series on DPA The Chenoa Fund strives to create successful borrowers over the long term to ensure that underlying FHA mortgages perform well. What’s our approach? One key is creating incentives to ensure homebuyers make payments on time. A large proportion of the second mortgages provided in connection with the Chenoa Fund program are forgivable, and carry no interest or payment obligations. To ensure borrowers feel they have “skin in the game,” these seconds are only forgiven after borrowers make 36 consecutive on-time payments on their first mortgage. This structure encourages homeowners to prioritize payment of their loan and stay on track. A second key is our 12 month post-purchase program for borrower success, in which we stay in regular touch with the borrower to help them transition to homeownership.

Read on the Chrisman Report:


August 9, 2019

Day 3 – Responsible DPA: Part 3 in a Series on DPA. CBC Mortgage Agency is committed to ensuring proper loan performance for homebuyers we help with DPA. With reasonable credit controls and borrower education through a HUD-approved provider, we help buyers realize the dream of responsible homeownership. Borrowers appreciate the effort, giving us high marks for staying in touch through phone calls, emails, and texts for 12 months after closing. See feedback we’ve received from borrowers and lenders. Perhaps that’s one reason our loan performance scorecard is better than national averages. CBCMA provides DPA under rules that are stricter than standard FHA underwriting requirements. When managed properly, DPA has an important place in the real estate ecosystem, especially when it’s provided along with stellar borrower resources to ensure the greatest possible success, such as is offered through the Chenoa Fund Program.

Read on the Chrisman Report:


August 7, 2019

Day 2 – Chenoa Fund Builds Communities: Part 2 in a Series on DPA. Offered by CBC Mortgage Agency, the Chenoa Fund has enabled thousands of borrowers to realize the dream of homeownership. Our broader goal is to use innovation to help America resolve its affordable housing crisis. How? CBCMA created the CRA Note Exchange as an online marketplace allowing purpose-driven entities to gain liquidity for their paper and receive cash to further their missions. Already, over 4,000 loans have traded on the platform, helping groups such as Habitat for Humanity. CBCMA also has partnered with minority faith-based churches to hold seminars on homeownership, and co-founded a workforce housing opportunity zone fund to address affordable housing needs in gentrifying areas such as Baltimore. In addition, CBCMA partnered with CityVision Homes to promote neighborhood revitalization by renovating blighted properties. Revenues from these and other initiatives fund critical economic development projects for the Cedar Band of Paiutes in Southern Utah.

Read on the Chrisman Report:


August 1, 2019

Day 1 – In defense of Down Payment Assistance, rapidly increasing home prices coupled with student debt and rising rents are making it increasingly tough for minorities and millennials to save up for a down payment. Should these groups be allowed to receive DPA? Absolutely, if the assistance is provided responsibly. A recent study by the Urban Institute found that minorities have 1/10 the household net worth as white Americans, a gap that makes them less able to help their children purchase a home. Not surprisingly, recent Census data showed African-American homeownership at a decades low rate – 40.6%. “Chenoa Fund provides DPA responsibly, with careful screening and pre-purchase homebuyer counseling. We’re proud that over half of our assistance helps minorities. This is the first in a multi-part series examining issues surrounding the proper role of DPA.” Click hereto learn about Chenoa Fund’s innovative programs designed to help minorities and millennials.

Read on the Chrisman Report: