All policy changes and updates are referenced below to the appropriate section of the CLG. These policy changes are effective 11/07/2022 unless otherwise noted.
To review the program guidelines changes made March 3, 2022, or earlier, please follow this link to the archived Correspondent Lending Guides. (You are also able to review the DPA Edge and Rate Advantage products guidelines from the archived March 3, 2022 guidelines.)
This announcement, and previous announcements, are also available on the Announcements page of our website.
These updates apply to everyone using the Chenoa Fund program—correspondents and TPO.
Payment Shock: Payment shock overlays are determined by the lower middle fico scores for qualifying borrowers. Rental payments can be combined for payment shock if borrowers have been living in separate residences.
6.2.5 Ineligible Features
* Added single wide units
Bonafide and Non-bonafide fees:
All FHA: Allowed. Loans submitted with Refer/Eligible AUS findings and that have been manually underwritten according to FHA guidelines are acceptable with the exception of manufactured home properties, provided that CBC Mortgage Agency overlays are also adhered to. Follow eligibility requirements for manually underwritten loans according to FHA, and then apply CBC Mortgage Agency overlays for complete adherence to our program requirements.
The above changes affect the following sections:
5.12 | Payment Shock Requirements
6.2.5 | Ineligible Features
* Added Single wide units
7.7 | Added Bonafide and Non-Bonafide Fees
5.25 | Manual Underwriting
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