All policy changes and updates are viewable in the Correspondent Lending Guide. These policy changes are effective 11/02/2020 unless otherwise noted.
Additionally, CBCMA has compiled all of its announcements related to COVID-19 into one convenient section in these guidelines. This section can be found immediately after this Recent Updates and Announcements section. To review the program guidelines changes made in October, please follow this link to the archived Program Guidelines.
Due to changing industry needs, we retired our FHA Classic product on October 1. CBCMA will no longer accept registrations for this program. The FHA Classic product will remain on our Product Matrix for reference purposes until January 1st, 2021.
In 5.16 (Alternative Qualification Requirements), we made several clarifications:
Visit section 5.16 in the guidelines to fully review the current requirements for each Chenoa Fund product.
In 5.32 (Fees to Originator), we clarified that loan level pricing adjustment charges may be seller-paid. The specific text is included below, additions bolded:
“CBCMA will allow a maximum origination fee of 1.5%. Additionally, the lender may charge for any CBCMA loan level pricing adjustments (LLPAs); charges for loan level pricing adjustments may be seller-paid. Lenders will be required to refund borrowers for any origination fees (including non–bona fide discount points) exceeding 1.5% plus CBCMA LLPAs. Reasonable lender underwriting, administrative, or program fees are not considered in this calculation; however, they are considered in the QM 3% points and fees test.
In 5.34.2 (Manual Underwriting), it was clarified that CBCMA strictly follows FHA guidelines for manual underwrites. We do not allow manually underwritten loans to qualify for Chenoa Fund using our alternative qualification requirements. Visit section 5.32.4 in the guidelines to fully review our current policy towards manual underwrites.
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