19-15: MERS REQUIREMENTS: ANNOUNCEMENT SENT ON 06/25/19 & 6/26/19

Announcement 1:

It has come to CBC Mortgage Agency’s attention that some of our correspondents are having issues with certain parts of our MERS requirements. This announcement is to address these issues and remind all correspondents of our required MERS process. Below are CBC’s expectations of all correspondents.

1. 1. Correspondents should generate a unique MIN number for both the 1st and 2nd liens, and include those on the closing documents.
   2. All 1st and 2nd MINs must be sent within 3 days of purchase. Every day after 3 business days will incur a $10 late fee for each loan not sent.
   3. Following the sale of the first mortgage to CBC, the 2nd mortgage MIN must be registered in MERS. When registering the 2nd MIN:

- The loan can either be registered directly into CBC’s name, or transferred via a TOS/TOB batch. Both the servicing and investing rights must be sent

- The 2nd lien MIN should be selected as a “2nd lien”, not a first, during the process of registering the MIN in MERS.

- The 2nd MIN registered in MERS must match the 2nd Mortgage documents. Please check the documents to confirm the 2nd MIN number is the same as the one that is being registered.

Announcement 2:

Subject: CORRESPONDENT UPDATE: Take Survey and Sign Petition

Can you please assist CBC Mortgage Agency by taking 2 minutes or less to fill out a short survey and sign a petition in support for withdrawal of the HUD Mortgagee Letter 2019-06.

Step 1. Click on the following link.

HUD Mortgagee Letter 2019-06

Step 2. Click on Lender/Realtors tab.

Step 3: Complete the survey, sign, and click submit.

Background

On April 18, 2019, FHA issued a Mortgagee Letter 19-6 regarding a new policy on the provision of down payment assistance. The issuance of this letter has been cause for much confusion regarding the operation of down payment programs throughout the United States and whether loan officers can continue to offer such programs to qualifying borrowers.

On April 23, CBC Mortgage Agency filed a law suit against HUD for engaging in rule making without proper public notice and comment. Subsequently HUD agreed to a 90-day stay on the Mortgagee Letter, while the case is heard in Federal Court.

We need your help to let HUD know of the value Chenoa Fund DPA programs provide your borrowers.

Chenoa Fund DPA Update

Chenoa Fund down payment assistance programs are available in the United States as they were prior to the April 18. Having secured the 90-day stay, all loans with a case number issued on or prior to July 23rd are eligible for purchase, just as they were prior to the issuance of the mortgage letter

Link to Announcement Sent: https://mailchi.mp/chenoafund/chenoa-fund-rate-sheet-6-25-19