Secondary financing will close in the name of your company. Prior to closing, CBC Mortgage Agency will issue a funding obligation letter (FOL) for the second lien. Secondary financing will be transferred to CBC Mortgage Agency after closing. Second mortgages are required to be registered with MERS; you will need to provide a MERS number for the second mortgage. Additional guidance can be found in CBC Mortgage Agency program guidelines, which can be found here.
IMPORTANT NOTES REGARDING DELIVERY OF THE SECOND LIEN TO CBC MORTGAGE AGENCY. Your FHA First Mortgage may not be insurable if you do not have an executed Assignment of the Second Mortgage to CBC Mortgage Agency OR a Secondary Financing MERS Transfer to CBC Mortgage Agency before you receive your final FHA Mortgage Insurance Certificate. Therefore, it is recommended that you transfer the MIN to CBC Mortgage Agency as soon as possible after closing (within 48 hours) to ensure that the MIN will be in CBC Mortgage Agency’s name within 72 hours.
Under the terms of the funding obligation letter, your company extends funds at the closing table on behalf of CBC Mortgage Agency for the borrower’s down payment. These funds are reimbursed by CBC Mortgage Agency at the time the first mortgage is purchased. FHA requires that the secondary financing be in the name of the government agency prior to insuring, so it is extremely important that all second mortgage MINS are registered with MERS as soon as possible (within 48 hours) after closing and that the TOS/TOB to CBC Mortgage Agency be executed immediately (to ensure that the MIN will be in CBC Mortgage Agency’s name within 72 hours).
The second must be transferred to CBC Mortgage Agency as soon as the file has been closed.
CBC Mortgage Agency contacts. The following are resources where you can address questions to the CBCMA team.
Secondary financing documentation requirements. The following documents are required for all second lien loans
- 2nd Lien Loan Application
- 2nd Lien Loan Estimate
- Recommended—Letter of Intent to Proceed
- 2nd Lien Closing Disclosure
- 2nd Lien First Payment Letter (Repayable Seconds Only)—reflecting CBC Mortgage Agency servicing address:
2100 SE 17th Street #112
Ocala, FL 34471
- 2nd Lien Note—payment address for repayable 2nds must reflect CBC Mortgage Agency servicing address shown above; must be delivered to CBC Mortgage Agency within three (3) days of reverse bailee delivery if a reverse bailee is used
- 2nd Lien Note to be Endorsed to CBC Mortgage Agency, or an Allonge that is wet signed (stamped signature OK if it is an original)
- 2nd Lien Mortgage/Deed of Trust
- CBC Mortgage Agency Secondary Financing Disclosure
- CBC Mortgage Agency Letter from the President
- CBC Mortgage Agency Quality Control Release Form
- Addendum Regarding Seller or Lender Contributions (if applicable—applies to loans with seller-paid borrower origination charges)
- Notice of Transfer of Servicing for 2nd Lien
- Any additional state-required disclosures