All policy changes and updates reference the appropriate Correspondent Lending Guide section below. These policy changes are effective 12/07/2020 unless otherwise noted.
Additionally, CBCMA has compiled all of its announcements related to COVID-19 into one section immediately following the Recent Updates and Announcements section (in the Correspondent Lending Guide itself). To review the program guidelines changes made November 16 or earlier, 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.
The down payment assistance second mortgage provided through Chenoa Fund is funded by the correspondent on behalf of CBCMA (a government entity), and CBCMA reimburses those funds advanced on our behalf at the time of first mortgage loan purchase. Even though this is the case, it is acceptable for correspondents to utilize their loss payee clause on both the first and second mortgages, but the verbiage “Its Successors and/or Assigns ATIMA” must be present on both. (ISAOA/ATIMA is an acceptable abbreviation of this verbiage.)
With the above announcement, section 10.2.1 (Loss Payee Change) has been changed to be section 5.37 (Loss Payee Clause), and will now read as follows:
Prior to purchase of the first mortgage and reimbursement of the second mortgage, the loss payee clause must be in the lender’s name and include the verbiage “Its Successors and/or Assigns ATIMA.” (ISAOA/ATIMA is an acceptable abbreviation of this verbiage.)
Alternatively, correspondents may use CBCMA’s loss payee clause on the second mortgage only. If this option is used, the second mortgage loss payee clause should be:
CBC Mortgage Agency ISAOA/ATIMA
912 W. Baxter, Suite 150
South Jordan, UT 84095
We’ve added a new section to the program guidelines, 5.38 (Disaster Certificates). It reads as follows:
In counties that have been deemed disaster areas by FEMA, CBCMA will require a 1004D disaster certificate OR a lender certificate, with exterior photos required for both. The certificate must be dated after the incident period.
In the case of wildfires that are ongoing nationwide, CBCMA will make an exception to allow the certification to be issued before the end date. The certification must be issued after the start of the incident and the loan must be insured with FHA.
It is solely the correspondent’s responsibility to be aware of and act upon any mortgage loans that were, prior to the sale to CBCMA, impacted by disasters. The correspondent should contact the appropriate source (e.g., a state office, regional Federal Emergency Management Agency (FEMA) office, news agency, etc.) to determine whether properties located in its origination regions are included in a disaster area.
CBCMA does not have the responsibility to notify the seller with regards to disaster areas. If, at any time after loan purchase, CBCMA or a subsequent investor determines that the subject property was damaged by a disaster and was not in fully marketable condition at time of sale, the loan will be subject to repurchase.
The post 20-12-07 Announcement—December 7 2020 Program Guidelines Update appeared first on Chenoa Fund - Down Payment Assistance.