{"id":10070,"date":"2020-12-21T15:15:47","date_gmt":"2020-12-21T15:15:47","guid":{"rendered":"https:\/\/chenoafund.org\/?p=10070"},"modified":"2026-03-17T14:31:46","modified_gmt":"2026-03-17T14:31:46","slug":"20-12-21-announcement-december-21-2020-program-guidelines-update","status":"publish","type":"post","link":"https:\/\/chenoafund.org\/20-12-21-announcement-december-21-2020-program-guidelines-update\/","title":{"rendered":"Program Guidelines Update \u2013 December 21, 2020 Announcement"},"content":{"rendered":"

12\/21\/2020<\/strong><\/h2>\n

All policy changes and updates are referenced to the appropriate section below. These policy changes are effective 12\/21\/2020 unless otherwise noted.<\/strong><\/p>\n

Additionally, CBCMA has compiled all of its announcements related to COVID-19 into one section immediately following this Recent Updates and Announcements section in the Correspondent Lending Guide<\/a>. To review the program guidelines changes made December 7 or earlier, please follow this link<\/a> to the archived Program Guidelines.<\/p>\n

Due to changing industry needs, we retired our FHA Classic product on October 1, 2020. 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<\/sup>, 2021.<\/p>\n

New COVID announcement, 20-22: Correspondents will be required to immediately repurchase a loan if, after CBCMA has purchased the loan, the correspondent authorizes a forbearance agreement without coordinating with CBCMA. To coordinate forbearance agreements, please reach out to servicing@chenoafund.org<\/a>.<\/p>\n

The Chenoa Fund Product Matrix has been reformatted to improve readability and information accessibility. The new Chenoa Fund Product Matrix will be posted at the same time that the FHA Classic product is removed from the Chenoa Fund Product Matrix (around the beginning of the new year).<\/p>\n

We have two new sub-sections that will go under section 7.18<\/a> (Real Estate Taxes Due The Following Month After Loan Purchase): 7.18.1<\/a> (Existing Construction) and 7.18.2<\/a> (New Construction)<\/p>\n

7.18.1<\/a> (Existing Construction): CBC Mortgage Agency recommends using the actual assessed property tax figure per the county\u2019s assessment\/tax rolls; however, if property taxes will increase or decrease significantly from the current assessment after purchase (e.g., the former owner had a senior citizen tax exemption), it is recommended that an estimated value be used that will result in the most likely payment for the borrower. The property tax value used for qualifying the borrower should be consistent throughout the file, including the 1003, AUS, CD, IEADS, and First Payment Letter.<\/p>\n

7.18.2<\/a> (New Construction): CBC Mortgage Agency recommends using a property tax estimate based on multiplying the purchase price (less any homeowner\u2019s exemptions) by the mill rates (the tax rates per the\u00a0county website)\u00a0that will be in effect in order to determine the payment; this will result in the least amount of payment variation once the property is assessed by the taxing authority. This property tax value (monthly tax payment) used for qualifying the borrower should be consistent throughout the file, including the 1003, AUS, CD, IEADS, and First Payment Letter.<\/p>\n

We do understand that, due to local tax collection practices, property taxes may increase significantly during the borrower\u2019s first year of homeownership, resulting in the need to prorate taxes at closing based on a much lower figure than what will need to be included in the borrower\u2019s monthly payment. We also understand that, in calculating closing figures, the unassessed value may be used to lower the borrower\u2019s cash to close and eliminate the collection of excessive tax escrow. In these circumstances, based on most document preparation services\u2019 limitations, a First Payment Letter that does not match the 1003, CD, and initial IEADS may be used to reflect the most accurate payment to the borrower;\u00a0however, the First Payment Letter must match the AUS qualification figures. In addition, a new IEADS reflecting the accurate collection and disbursements of tax payments should be included in the file along with an LOX from the lender.<\/p>\n

\u00a0<\/strong><\/p>\n

The recently-introduced section 5.37<\/a> (Loss Payee Clause) is being merged with 7.24<\/a> (Hazard Insurance) as one of the section\u2019s bullet points. The bullet points will now read as follows:<\/p>\n