All policy changes and updates are referenced below in the appropriate section of the CLG. These policy changes are effective April 26th, 2023 unless otherwise noted.
This announcement, and previous announcements, are also available on the Announcements page of our website.
These updates apply to everyone using the Chenoa Fund program—correspondents and TPO.
5.12 | Payment Shock Requirements
Borrower(s) with a credit score of 659 and below - payment shock is not to exceed 150%.
Borrower(s) with a credit score of 660 and above - payment shock is not to exceed 175%. If payment shock exceeds threshold, an exception will be required.
No Primary Housing Expense - credit score 640 and above:
Borrower(s) with no primary housing expense, the maximum DTI is 33/45% and will require a minimum of one month's PITI reserves. If DTI exceeds 33/45%, an exception is required.
No Primary Housing Expense - credit score 639 and below:
Borrower(s) with no primary housing expense will require an exception review.