CHENOA FUND BY CBC MORTGAGE AGENCY - Retail...

CHENOA FUND BY CBC MORTGAGE AGENCY

• Issued in conjunction with FHA insured loan

• FHA insured first mortgage must be sold to CBC Mortgage Agency

• 3.5% Gift, Soft Second, or Amortized Second

• No Borrower Investment Required (With Seller paid Closing Costs)

• Added YSP possible on FHA first mortgage. See rate sheet

• Up-front fees only limited by QM guidelines

CHENOA FUND ADVANTAGES

• No borrower investment required

• FICO Scores down to 620

• Non-occupant co-borrowers OK

• >115% AMI OK (requires DPA repayment)

• Premium pricing (1st Mtg) to cover closing costs

• Only Qualifying Income used for AMI calculations

• DTI per AUS or FHA manual underwriting guides

• Your underwriter underwrites the file

CHENOA FUND FHA OVERLAYS

• Single-family property only (no 3-4 units)• SFR, PUD, Townhome, Condo, Attached, Detached• No Manufactured Homes• FICO Score 620 or higher• HPML (Rebuttable Presumption)=OK, but no High

Cost Mortgages

CHENOA FUND GIFTS

• <= 115% AMI• Gift Letter (provided by CBCMA) must be signed

by borrower• Allowed in all states EXCEPT: IL, MS, NY, SD, WV• Higher Early Payoff Penalty

DU/DO Section 2-Types, Terms & Property

DU/DO Section 5-Assets

GIFT-DESKTOP ORIGINATOR/UNDERWRITER

CHENOA FUND SOFT SECOND• No Payment• 0% Interest Rate and 30-year Term• Forgiven after 36 consecutive on-time payments

on FHA 1st Mortgage• Section H of 1003 must indicate down payment

borrowed• Requires Funding Obligation Letter Issued prior to

closing-only CBCMA signature• Qualifying Income <= 115% AMI

CHENOA FUND REPAYABLE SECOND

• Qualifying Income > 115% AMI• 10-Year term 0% interest rate• 30-Year term 5% interest rate• Requires monthly payment• Payment must be included in housing ratio• Borrower must indicate down payment borrowed

in declarations section of 1003 (question H)

SECONDARY FINANCING ON 1003

DECLARATIONS PAGE OF 1003

SECONDARY FINANCING –DO/DUPage 2-Types, Terms, & Property

Page 7-Transaction Details

LP Assets Section 2

GIFT-LOAN PROSPECTOR

SECONDARY FINANCING LP

Your FHA First Mortgage will NOT BE INSURABLE if you do not have an executed assignment of the

Second Mortgage to CBC Mortgage Agency BEFOREyou request a MIC.

FHA TRANSMITTAL-GIFT OR SECONDARY FINCANCING

Enter the CBC Mortgage Agency Tax ID number.

Select Gov’t

Enter the amount of the assistance

Go to ChenoaFund.org

Select ‘Client Portal Login’ at the top center of the webpage.

ENTER YOUR LOGIN CREDENTIALS

SELECT ‘LOAN REGISTRATION/LOCK/PRICING’ FROM THE SIDE BAR MENU

SELECT ‘ADD NEW LOAN’ FROM THE LEFT SIDE BAR MENU.

• Select ‘Choose File’ (1)

• Locate the 3.2 file you want to upload

• Select ‘Upload’ (2)

• Complete remaining fields - (*)fields are mandatory

To calculate the base loan amount and the DPA amount, place your curser in the ‘Purchase price’ field and press Tab. The field will auto populate.

To register the loan, complete all asterisked (*) items above the black line (arrow 1) and then select the ’Price’ button

The Loan Price Results screen will show you your price.

At this point you may:

FLOAT the first mortgage by selecting ‘Register’

LOCK the first mortgage by selecting ‘Lock Price’

Or you may REJECT the pricing and return to the input screen to select a different rate.

ONCE YOU REGISTER OR LOCK YOUR LOAN, YOU USE THE ‘PRINT CONFIRMATION’ BUTTON TO OBTAIN YOUR REGISTRATION CONFIRMATION OR LOCK CONFIRMATION

This is a sample ‘Registration’ confirmation. This form of confirmation means that the first mortgage is floating.

A Lock Confirmation indicates that your first mortgage is locked

AFTER PRINTING THE REGISTRATION OR LOCK, CLOSE THE TAB, WHICH WILL RETURN YOU TO THE PREVIOUS SCREEN.

For Gift Transactions to obtain a Gift Letter:

You must wait until CBCMA reviews and approves your request. You will receive an e-mail notification when this occurs.

To obtain a Gift Letter, Select ‘Global Loan Status’ from the left side menu.

YOUR GIFT LETTER WILL BE FOUND BY CLICKING THE ‘OPEN FOLDER’ ICON.

IMPORTANT!

• Upload a 3.2 file, do not hand-enter information in the data fields

• The data fields above the line are for the first mortgage registration

• The data fields below the line are for Secondary Financing

• Gifts transactions will eliminate the fields below the line

• The DPA amount will auto-enter when you click on the Loan Amount field

• You can register and lock the first mortgage without completing Secondary Financing information (information below the line)

• For secondary financing, be prepared to enter the data needed to complete the LE and select ‘Upfront’ in the Doc Set Request line to receive your LE

Once you have registered and/or locked your loan, you cannot make any additional changes to the information in the data entry form above the black line. To receive an LE, you must complete the asterisked (*) data below the black line

FOR THE LE, ENSURE THAT THE DOC SET REQUEST FIELD SHOWS ’UPFRONT’

Ensure that you check the box by each fee charged for closing the secondary financing by the closing agency. Also insure the fee is placed in the correct column as to the party paying it.

TO SUBMIT THE REQUEST, SELECT ‘UPDATE’ OR ‘UPDATE AND REPRICE’

To obtain the Funding Obligation Letter and LE:

You must wait until CBCMA reviews and approves your request. You will receive an e-mail notification when this occurs.

The LE will be e-mailed to you.

To obtain the Funding Obligation Letter, Select ‘Global Loan Status’ from the left side menu.

Your loan will be located in either the ‘Locked/DPA Approved’ or ‘Registered/DPA Approved’ status. Click either to locate your loan or simply type the loan number in the Search bar.

YOUR FUNDING OBLIGATION LETTER WILL BE FOUND BY CLICKING THE ‘OPEN FOLDER’ ICON.

REMINDER: THE LE WILL BE E-MAILED TO YOU.

YOU WILL THEN RECEIVE:

• CBCMA loan Registration Confirmation or Lock Confirmation (if lock requested)-there will be a link to open this document in a new window

• Funding Obligation Letter (for Gifts the Gift Letter also serves as a Funding Obligation Letter)-this will be available by clicking the icon of the ’open folder’ next to the loan (after searching for it)

• The following will be emailed to you.• Loan Estimate and initial state disclosures (for

Secondary Financing)

RECOMMENDED ADDITIONAL DISCLOSURE

CALCULATING AREA MEDIAN INCOMEGo to the HUD Area Median Income Site. This can be found online at:https://www.huduser.gov/portal/datasets/il.html

Select the MOST RECENT fiscal year

Select the state, select the county, click the button “View County Calculations”

The generic median income number is located on the left-hand side of the results screen under the column heading ‘Median Income’. This result multiplied by 115% is what should be used in most cases.66,200 X 115% = 76,130

38,400 X 2 = 76,800 X 115% = 88,320 for family of 6

NEXT STEPS…

• Process your loan file as usual• Submit to your underwriter• Clear conditions• Request loan closing documents from CBCMA for

Secondary Financing (no additional closing documentation for Gifts)

1. Closing Disclosure-2nd Mortgage2. Closing Documents-2nd Mortgage

RETURN TO THE DATA FIELDS UNDER THE BLACK LINE.

BEFORE YOU COMPLETE ANY DATA FIELDS, CHANGE THE FIELD IN THE ‘DOC SET REQUEST’ TO FINAL.THIS WILL CREATE SOME NEW FIELDS AND ADD ADDITIONAL ASTERISKS ON THE DATA FIELDS REQUIRED TO COMPLETE THE LOAN DOCUMENTS.

ONCE ALL FIELDS ARE COMPLETE AND YOUR ENSURE YOUR FEES ARE CORRECT, SELECT ‘UPDATE’ OR ‘UPDATE AND REPRICE’.THE LOAN DOCUMENTS WILL THEN BE EMAILED TO YOU.

UNDERWRITING…

• FHA Guidelines• TRID compliance• Industry Standards (example 4506-T (W-2 only

ok), Fraud Guard Reports)• LOE for Employment Gaps 30 Days or More

CLOSING DISCLOSURE

• CD disclosing must follow TRID• Initial CD must be issued 3 days prior

to funding just like the first mortgage and is sent with the final CD and closing documents

SECONDARY FINANCING CLOSES IN YOUR COMPANY’S NAME AND IS TRANSFERRED TO CBC

MORTGAGE AGENCY AFTER CLOSING BY AN ASSIGNMENT

CONTACT INFO

• Matt Pettit• Matt.Pettit@Chenoafund.org• 435-200-9457

• Trevor Ross• Trevor.Ross@chenoafund.org

POST CLOSING PROCESS

UPLOAD CLOSED LOAN

(POTENTIAL) MULTIPLE INVESTORS

FILE UPLOAD GUIDELINES

• File name must start with Seller (your) Loan Number then underscore:

EXAMPLE: 312015_Smith_Credit File.pdf

• Recommend upload appraisal separately• 50 MEG maximum PER upload

UPLOAD PURCHASE CONDITIONS

COMMONLY MISSED ITEMS

• Soft Pull Credit within 10 days of Close or Evidence of Credit Monitoring

• The MRI Funding Obligation Letter.

• For Gift funds an executed gift letter.

• With the Soft Second and Amortized Seconds a copy of the second Note and Deed.

IMPORTANT IDS

• FHA ID: 9413-00000-8

• MERS ID: 1012881

• NMLS ID: 1186381

• Tax ID: 46-2780478

IMPORTANT ADDRESSES

Mortgagee Clause• CBC Mortgage Agency

• ISAOA ATIMA

• 3713 W. South Jordan Parkway

Ste. 102-501

South Jordan, UT 84095

Regular Payment Address:• CBC Mortgage Agency

• Attn: Payment Processing

• 3713 W. South Jordan Parkway

• Ste. 102-501

• South Jordan, UT 84095

• Customer Service

• 866 563-3507 extension 0

IMPORTANT ADDRESSES (CONTINUED)

Payment Address• CBC Mortgage Agency

• Attn: Payment Processing

• 10400 Overland Road

• PMB#403

• Boise, ID 83709

Urgent Overnight Mail:• CBC Mortgage Agency

• 912 W Baxter Drive

• Suite 150

• South Jordan, UT 84095

• 866 563-3507 extension 0

QUESTIONS?

CONTACT INFO

• Matt Pettit

• Matt.Pettit@chenoafund.org

• 435 200-9457 Office

• Trevor Ross

• Trevor.Ross@chenoafund.org