February 18, 2020: Chenoa Fund Correspondent Newsletter

Introduction to Newsletter

In the newsletter we seek to provide you with important information about the Chenoa Fund. In this issue, find:

  1. CBC Mortgage Agency Releases Guidelines 8.3
  2. CBCMA Correspondent Lender Marketing and Social Media Policy
  3. CBC Mortgage Agency On The Road
  4. Chenoa Fund in the News
  5. Chenoa Fund Blog Posts
  6. Join Chenoa Fund on Instagram
  7. Chenoa Fund Launches LenderConnect
  8. Marketing Resources: Door Hangers

CBC Mortgage Agency Releases Guidelines 8.3

CBC Mortgage Agency officially published its monthly update to the official guidelines on February 14, 2020

 

We’re excited to announce Correspondent Lending Guide version 8.3.

 

This update brings several important changes to our policies and procedures. We hope these changes provide increased ease of use for Chenoa Fund down payment assistance.

  • 5.12 and 7.22 were updated to clarify our policy regarding the soft pull credit refresh requirement. We do require a tri-merge/three bureau soft pull credit refresh, dated within ten days of the note date, or evidence of enrollment in a credit monitoring service through this time period.
  • In 5.15, we introduced a relaxed policy regarding borrowers without a housing history in the 620–639 range. Previously, borrowers in this category could not exceed a 43% backend ratio. Now, borrowers can go up to 45% on the backend.
  • In 5.17, we amended our LOE requirement for borrowers with no present housing payment. Now, in place of the LOE, we allow a VOR. For borrowers with a housing payment in the FICO range of 620–639, we will also require a VOR.
  • 5.27 now has a clarification regarding our LTV policy. Borrowers may increase their minimum required investment (down payment) by putting down additional funds above and beyond the assistance received from Chenoa Fund as long as the loan-to-value ratio does not go below 90%.
  • In 5.28, an overlay was removed. In version 8.2 of this Guide, DACA recipients were not considered eligible for our conventional products. Now, DACA recipients are allowed on conventional products, per CBCMA’s interpretation of FNMA guidelines—this was updated for consistency. Even so, CBCMA relies on our correspondent partners to document lawful residency in accordance with FNMA and FHA guidance.
  • 7.20 now has a link to the principal reduction form provided by CBCMA.
  • 7.22 now includes another item on the “Documentation – General Requirements” list: the Closing Protection Letter. While the Closing Protection Letter was not included on the list previously, it was still a required document.
  • 8.3 now emphasizes that loans must be current at the time of purpose.
  • 8.8.1 was clarified, and now emphasizes that the down payment assistance funds must be identified as coming from “CBC Mortgage Agency 2nd Lien.”
  • In 10.3, it was updated that, effective immediately, both holder and servicing rights need to be transferred to CBCMA in FHA Connection immediately upon sale of the loan to CBCMA. Previously, only holder rights were required to be transferred to CBCMA in FHAC. As CBCMA is now an authorized servicer in FHAC, we will require that the servicing rights be transferred as well.

 

You will also want to send the MIC to CBCMA. CBCMA will transfer both the Holder and Servicing Rights into the names of our investors, when appropriate, following the close.

 

If there is a delay on this for any reason, please email finaldocs@chenoafund.org for assistance.

 

CBCMA Correspondent Lender Marketing and Social Media Policy

IMPORTANT: New Marketing Policy

All marketing materials or advertisements created with the intent of securing loans using Chenoa Fund outside of content provided to you by CBCMA must be reviewed and approved by CBC Mortgage Agency before being released or published. Requests for review and approval of lender marketing material should be submitted using this form here.

 

If CBCMA’s legal review team finds the submitted marketing materials to be non-compliant, requests for changes will be sent back to the correspondent lender. If the updated material containing the required changes is not received by CBCMA within seven days, then a new request will need to be submitted.

 

If a correspondent lender is found using marketing material that hasn’t been approved and/or is noncompliant, the lender may be subject to suspension from doing business with CBCMA. Any questions about compliance issues or marketing materials should be sent to lendermarketing@chenoafund.org.

 

CBC Mortgage Agency On The Road

CBC has been “wheels up” quite a bit this blustery February and the fun is just getting started! 

 

Our marketing team kicked off the month off with a tour of Facebook, working with them on ways to get around the lender advertising regulations on Facebook. We know this is a large issue for each of you, and in our LenderConnect editorial we’ll share some of that education there. We also spoke with them about their large contribution to affordable housing that they made at the end of 2019. More on that here

 

View this post on Instagram

 

A quick stop to @facebook with @kwsiliconvalley! Talked with them a little bit about how to use Facebook to increase awareness about affordable housing using their platform. Some cool things coming soon!

A post shared by Chenoa Fund (@chenoafundofficial) on

Thanks to a few of the agents at Keller Williams Silicon Valley for making this happen! 

 

In conjunction with our visit to Hacker Way, Tai Christensen, our Director of Governmental Affairs, represented CBC at the NAR Affordability Forum. This Forum works to identify and resolve the various factors that push American families away from becoming homeowners, and to close racial racial homeownership gaps. You can read their official statement about the event here.

 

Our next stop was the NAREB (National Association of Real Estate Brokers) Bet on Blalck Mid-Winter event. With over 200 African American agents, lenders, etc in attendance, the discussion around minority homeownership was top of the list. Nevada Attorney General Aaron Ford gave comments on the national increase of African American homeownership and his intentions to work nationally to keep that increase growing. 

 

We’ve got a busy 2nd half of the month heading to: 

 

  • UHOUSI in Atlanta with Bishop Broner and World of Faith Family Worship Cathedral (More on that event here
  • Arizona Builders Tour: Some of the leadership team will be in Arizona working with builders at the end of February. If you would like a quick stop in to your branch, reach out to lendermarketing@chenoafund.org

 

Chenoa Fund in the News

The following articles have mentioned Chenoa Fund, CBCMA, and/or the Cedar Band Corporation in the past several weeks.

February 11, 2020-National Mortgage Professional: CBC Reports Average Customer Gains $27,000 in Home Equity

February 11, 2012-Scotsman Guide: Downpayment assistance plans aid borrowers in cracking homeownership barriers

February 6, 2020-St. George News: Mortgage agency with Cedar City roots celebrating 5 years of providing down payment assistance

 

Chenoa Fund Blog Posts

February 12, 2020

8 Ways A Seller’s Agent Can Make A Difference

5 Quick Tips for Realtors to Get Listings Noticed Online

10 Characteristics of a Quality Mortgage Loan Officer

 

 February 3, 2020

What Lenders Should Tell Real Estate Agents about Down Payment Assistance Programs

5 Traits Real Estate Agents Need to Help Lower- to Moderate-Income Homebuyers

 

 Join Chenoa Fund on Instagram

Chenoa Fund can now be found on Instagram . Follow and keep up-to-date with the latest happenings.  The following is a sample post.

View this post on Instagram

Some people save for years to be able to put a down payment on a house. You don’t have to! The Chenoa Fund provides several products that allow YOU to buy your dream house with ZERO down. Talk to a lender who offers Chenoa today!

A post shared by Chenoa Fund (@chenoafundofficial) on

Chenoa Fund Launches LenderConnect

 

CBC Mortgage Agency is excited to announce LenderConnect which is sent every Wednesday. As you’ve probably seen, we’ve been beefing up our marketing efforts to better support our lenders.

 

As part of these efforts, LenderConnect was born. Each week there will be an email specific to providing marketing tools, tips, and tricks on how to better market our program. These emails will include:

  • Important company updates in regards to marketing
  • Free social media posts and text for your use
  • A marketing tip or trick to better reach your borrowers

 

Marketing Resources: Door Hangers 

Chenoa Fund has created a variety of high-quality marketing materials, such as postcards, flyers, door hangers, and yard signs, that you can use to create interest in Chenoa Fund. In this issue we would like to highlight Door Hangers in Marketing Resources. When you go to Marketing Resources scroll to these sections:

  •     DPA Door Hangers (Lenders)
  •     DPA Door Hangers (Lenders/Realtors)