ChenoaFundbyCBCMortgageAgency

•  Issuedinconjunc8onwithFHAinsuredloan•  FHAinsuredfirstmortgagemustbesoldtoCBCMortgageAgency

•  3.5%GiC,SoCSecond,orAmor8zedSecond•  NoBorrowerInvestmentRequired(WithSellerpaidClosingCosts)

•  PremiumPricingAvailableonFHAfirstmortgage(DPAnolongera‘lostlead’)

•  Up-frontfeesonlylimitedbyQMguidelines

ChenoaFundAdvantages

•  Noborrowerinvestmentrequired•  FICOScoresdownto620•  Non-occupantco-borrowersOK•  >115%AMIOK(requiresDPArepayment)•  Premiumpricing(1stMtg)tocoverclosingcosts•  OnlyQualifyingIncomeusedforAMIcalcula8ons•  DTIperAUSorFHAmanualunderwri8ngguides•  Yourunderwriterunderwritesthefile

ChenoaFundFHAOverlays

•  Single-familypropertyonly(no2-4units)•  SFR,PUD,Townhome,Condo,Aaached,Detached

•  FICOScore620orhigher•  GiCorSoCSecondIncome<=115%AMI•  Income>115%AMI=Secondmustberepaid

ChenoaFundGiCs

•  <=115%AMI•  GiCLeaer(providedbyCBCMA)mustbesignedbyborrower

•  AllowedinallstatesEXCEPT:IL,MS,NY,SD,WV

•  MayresultinEarlyPayoffPenaltyassessment•  MustbereflectedasFHAGiCFundsfromaGovernmentAgencyinAUS

600N100ECedarCity,UT84721Tax ID # 46-2780478

2/17/16

Donor: CBC Mortgage Agency Borrower(s): 600 N 100 E Cedar City, UT 84721866 563-3507 FHA Case #:

Gift Amount:

CBC Mortgage Agency is a governmental agency operating Chenoa Fund, a program that provides homeownership assistance to low-and moderate-income families through a gift for the down payment (Minimum Required Investment or MRI). Funds provided to the borrower under the Chenoa Fund are a bona-fide gift to the borrower and must be used to purchase the property located at:

0,

With a purchase price of: -$

The entire amount of the gift must be utilized towards the purchase of the property referenced above and may not result in cash back to the borrower(s) (except to reimburse borrower(s) for verified funds the borrower(s) has all ready paid such as earnest money, appraisal fees, credit report fees, etc.).

In accordance with the procedures outlined in Mortgagee Letter 2013-14, CBC Mortgage Agency, with this document, has incurred a legally enforceable obligation to provide the funds towards the borrower(s)’ MRI. The Lender should deliver funds for the MRI to the closing entity prior to or at the time of loan closing. CBCMA will reimburse Lender from funds legally belonging to CBCMA at or before closing under this obligation once the following conditions are met:

The first mortgage associated with this assistance must be closed and delivered to CBCMA for purchaseAll purchase conditions for the first mortgage associated with this assistance have been satisfied.

If these items are not delivered to CBCMA, this obligation will be void. WARNING: Failure of CBCMA to satisfy the obligation may result in a determination that the funds for the Borrower(s)’ MRI were provided by a prohibited source and the first mortgage obligation may not be insurable under the FHA insurance program.

Sincerely, Borrower Acknowledgment

XRichardFerguson PresidentCBCMortgageAgency

X

$0.00

Gift Letter and Funding Obligation

GiConpage2ofLoanApplica8on(1003)

DU/DOSec8on2-Types,Terms&Property

DU/DOSec8on5-Assets

GiC-DesktopOriginator/Underwriter

LPAssetsSec8on2

GiC-LoanProspector

ChenoaFundSoCSecond

•  NoPayment•  0%InterestRateand30-yearterm•  ForgivenaCer36on-8mepaymentsonFHA1stMortgage

•  Sec8onHof1003mustindicatedownpaymentborrowed

•  RequiresFundingObliga8onLeaerIssuedpriortoclosing-onlyCBCMAsignature

•  QualifyingIncome<=115%AMI

ChenoaFundRepayableSecond

•  QualifyingIncome>115%AMI•  10-Yearterm0%interestrate•  30-Yearterm5%interestrate•  Requiresmonthlypayment•  Paymentmustbeincludedinhousingra8o•  Borrowermustindicatedownpaymentisborrowedindeclara8onssec8onof1003(ques8onH)

CBC Mortgage Agency600 N 100 E Cedar City, UT 84721

Tax ID # 46-2780478

Lender:Loan Application Number:FHA Case NumberBorrower(s):

Purchase Price of Property: $0.00Property Address:

, Form of Assistance: 0Amount of Assistance: $0.00Interest Rate (If Applicable): 0Term (If Applicable): monthsMonthly Payment Amount (If Applicable):Commitment Date: 1/0/00

As of the commitment date, CBC Mortgage Agency has incurred a legally enforceable obligation to provide the funds towards the Borrower(s)’ Minimum Required Investment. Lender should closethe secondary financing in the name of CBC Mortgage Agency and deliver funds for the MRI to theclosing entity prior to or at the time of loan closing. CBCMA will reimburse Lender from funds legally belonging to CBCMA at or before closing under this obligation once the following conditions are met: • The first mortgage associated with this assistance must be closed and delivered to CBCMA for purchase. • All purchase conditions for the first mortgage associated with this assistance must be satisfied.If these items are not delivered to CBCMA, this obligation will be void. WARNING: Failure of CBCMA to satisfy the obligation may result in a determination that the funds for the Borrower(s)’ MRI were provided by a prohibited source and the first mortgage obligation may not be insurable under the FHA insurance program.

Sincerely,

Richard FergusonPresidentCBC Mortgage Agency

MRI Funding Obligation

SecondaryFinancingon1003

Declara8onspageof1003

SecondaryFinancing–DO/DUPage2-Types,Terms,&Property

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SecondaryFinancingLP

SecondaryFinancingClosesInYourCompany’sNameandisTransferredtoCBCMortgageAgencyACerClosingby

anassignment

After recording, return to: CBC Mortgage Agency 10400 Overland Rd, PMB# 403 Boise, Idaho 83709 Phone: 866-563-3507

ASSIGNMENT OF PURCHASE DEED OF TRUST

0 (“Assignor”) is the holder of a certain deed of trust (the “Deed of Trust”) dated 1/0/00 and executed by John Doe and Jane Doe as mortgagor(s) on the property described as: Legal Description Known more commonly as: 123 Well Hill Salt Lake City, UT 84101 Originally recorded in Book __________ on page(s) ____________________ This Deed of Trust was recorded on 1/0/00 in Salt Lake County, Utah. The Deed of Trust secures a note or other obligation of the mortgagor(s) to the Assignor in the original principal sum of $0.00. Therefore, in consideration of $0.00 and other good and valuable consideration paid by or to be paid by Assignee, Assignor hereby assigns, transfers and sets over to CBC Mortgage Agency all right, title and interest of Assignor in and to the Deed of Trust, together with the note or other obligation described therein and all moneys due and to become due thereon. To have and to hold the same to the Assignee and the Assignee’s heirs, successors and assigns forever, subject only to the terms and conditions of the above-described mortgage. IN WITNESS WHEREOF, This Assignment of Mortgage is executed the ________ day of _______________________, 20_____. (authorized signature for XYZ Mortgage Lender) (printed name and title) STATE OF ) ) ss: County of ) On this __________ day of _________________________, 20__________, before me the undersigned, a Notary Public in and for the State of duly commissioned and sworn, personally appeared to me known to be the individual described in and who executed the within and foregoing instrument, and acknowledged to me that he/she/they signed and sealed the said instrument as his/her/their free and voluntary act and deed for the uses and purposes therein mentioned. WITNESS my hand and official seal. Signature: Name: (Reserved for Official Seal) Residing at: My commission expires: Unofficial Witness

RecommendedAddi8onalDisclosure

DisclosureofSecondaryFinancingChenoaFund

I(We)acknowledgethatI(we)haveappliedforTWOloansinordertocompletethepurchaseofahome.BOTHoftheseloanswillberecordedagainstthetitlerecordsofmy(our)property.I(We)mayberequiredtomakeregularmonthlypaymentsonBOTHloans.Ifmonthlypaymentsarerequiredonthesecondmortgage,thesepaymentswillbemadetoaDIFFERENTlenderthanthefirstmortgage.

Thefirstmortgagewillbeissuedby:[Lender]_________________________________________________________

Thesecondmortgagewillbeissuedby:CBCMortgageAgency

Theamountofthesecondmortgagewillbe___________________.

Thesecondarymortgageinterestratewillbe___________________.

ThesecondmortgageformydownpaymentcanbeforgivenafterImake36consecutive(inarow)paymentsontimeonmyFIRSTMORTGAGE.

I(We)willberequiredtomakeestimatedregularmonthlypaymentsonthesecondmortgageintheamountof___________________foratotalof________________years.

I(We)acknowledgethatbyborrowingourdownpaymentfromCBCMortgageAgency,thefirstmortgagemaybesubjecttoahigherrateofinterestthanifI/weprovidethefundsforourowndownpayment.

I(we)understandtheaboveandagreetothetermsdisclosed.

Date

Date

Calcula8ngAreaMedianIncomeGototheHUDAreaMedianIncomeSite.Thiscanbefoundonlineat:haps://www.huduser.gov/portal/datasets/il.html

SelecttheMOSTRECENTfiscalyear

Selectthe‘FY[YEAR]IncomeLimits’Documenta8on’

Select‘ClickHereforFY[YEAR]ILDocumenta8on’

Selectthestate,selectthecounty,clickthebuaon“ViewCountyCalcula8ons”

ThegenericmedianincomenumberislocatedontheleC-handsideoftheresultsscreenunderthecolumnheading‘MedianIncome’.Thisresultmul8pliedby115%iswhatshouldbeusedinmostcases.64,000X115%=73,600

37,150X2=74,300X115%=85,445forfamilyof6

Registra8on/RateLock

YouwillthenReceive:

•  CBCMAloanregistra8onformwithlockinforma8on(iflockrequested)

•  FundingObliga8onLeaer(orGiCLeaerifgiC)•  ForSecondaryFinancingyouwillalsoreceive:1.  LoanEs8mate(youmayusethisoryourown)2.  LoanDocumentRequestForm

NextSteps…

•  Processyourloanfileasusual•  Submittoyourunderwriter•  Clearcondi8ons•  RequestloanclosingdocumentsfromCBCMAforSecondaryFinancing(noaddi8onalclosingdocumenta8onforGiCs)

1.  ClosingDisclosure-2ndMortgage2.  ClosingDocuments-2ndMortgage

ClosingDisclosure

•  CDdisclosingmustfollowTRID•  Ini8alandfinalCDarethesameforthesecondaryfinancingUNLESSyou(or8tle)requestachange

•  Ini8alCDmustbeissued3dayspriortofundingjustlikethefirstmortgageandissentwiththeclosingdocuments

Ques8ons?

ContactInfo

•  MaaPext•  Maa.Pext@chenoafund.org•  435-200-9457•  ToddLudlow•  Todd.Ludlow@chenoafund.org