As Seen in 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:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08162019-yield-curve-and-mortgage-rates.aspx

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:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08132019-mortgage-rates.aspx

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:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08092019-loan-application.aspx

 

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:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08072019-second-mortgages.aspx

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:

http://www.mortgagenewsdaily.com/channels/pipelinepress/08012019-mortgage-training.aspx