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


April 13, 2020 By

Update: Forbearance, even COVID-related forbearance, always resents the waiting 36-month period before a Chenoa Fund second mortgage can be subordinated.

Clarification on COVID-19 Forbearance Agreements and Early Payment Default Penalties

For all FHA loans locked on or after February 2, 2020, CBC Mortgage Agency will not charge an EPD penalty to a correspondent if a borrower enters into a forbearance agreement due to COVID-19 during the contractual EPD period provided that following the forbearance period the borrower resumes on-time payments and is determined to qualify for a partial claim under Mortgagee Letter 20-06. On all conventional loans and FHA loans locked prior to February 2, 2020, assessment of EPD penalties will be handled on a case by case basis.

Borrowers Requesting Forbearance Agreements

For loans scheduled to be sold to CBC Mortgage Agency, to avoid any potential complications with a loan purchase, correspondents must consult with CBC Mortgage Agency prior to initiating a forbearance agreement with a borrower.

Thank you,

CBC Mortgage Agency