{"id":12115,"date":"2022-01-20T17:17:56","date_gmt":"2022-01-20T17:17:56","guid":{"rendered":"https:\/\/chenoafund.org\/?p=12115"},"modified":"2026-03-17T14:49:27","modified_gmt":"2026-03-17T14:49:27","slug":"22-10-20-announcement-january-20-2022-program-guidelines-update","status":"publish","type":"post","link":"https:\/\/chenoafund.org\/22-10-20-announcement-january-20-2022-program-guidelines-update\/","title":{"rendered":"Program Guidelines Update \u2013 January 20, 2022 | Chenoa Fund"},"content":{"rendered":"\r\n

Version 11.9<\/strong><\/h2>\r\n\r\n\r\n\r\n

All policy changes and updates are referenced below to the appropriate section of the CLG. These policy changes are effective 01\/20\/2022 unless otherwise noted.<\/strong><\/p>\r\n\r\n\r\n\r\n

To review the program guidelines changes made December 9, 2021, or earlier, please follow this link<\/a> to the archived Correspondent Lending Guides.<\/strong><\/p>\r\n\r\n\r\n\r\n

These updates apply to everyone using the Chenoa Fund program\u2014correspondents and TPO.<\/strong><\/p>\r\n\r\n\r\n\r\n

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Announcement<\/strong><\/p>\r\n\r\n\r\n\r\n

CBC Mortgage Agency will accept the FNMA Homeview\u00ae homeownership education course to meet Chenoa Fund requirements. However, the course offered by Money Management International is still required for borrowers with a credit score below 620 using the DPA Edge program. (See section 5.20, Homeownership Education.)<\/p>\r\n\r\n\r\n\r\n

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Guidelines Updates<\/strong><\/p>\r\n\r\n\r\n\r\n

Section 5.13 (Minimum Credit Score) has been updated to clarify how to correctly price loans for borrowers with a credit score below 620 when using Chenoa Fund DPA with a conventional FNMA loan:<\/p>\r\n\r\n\r\n\r\n

All Conventional Programs<\/em>: 620 FICO. Per FNMA guidelines for loans with multiple borrowers, the middle scores of all borrowers on the loan may be averaged to determine whether this 620 FICO requirement is met. Loan requirements determined by FICO score will match the 620\u2013659 FICO requirements if any individual borrower on the loan has a qualifying FICO score lower than 620. In addition, if any individual borrower on the loan has a qualifying FICO score lower than 620 the pricing will be based on a 620 FICO pricing.<\/p>\r\n\r\n\r\n\r\n

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Section 5.17 (Present Housing Expense & Verification of Rent) had its first sentence clarified: we will only accept the higher of two FICO scores to determine verification of housing requirements if the two borrowers have been living together for at least 12 months prior to the application date. The updated text is below:<\/p>\r\n\r\n\r\n\r\n

All DPA Edge Products<\/em>: Chenoa Fund overlays for present housing expense verification may be determined by the occupying borrower with the highest middle FICO score if the two borrowers on the file have been living together for at least twelve (12) months prior to the application date\u2014otherwise, the requirements are determined by the borrower with the lowest middle FICO score. All other Chenoa Fund overlays are determined by the occupying borrower with the lowest middle FICO score.<\/p>\r\n\r\n\r\n\r\n

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Section 5.20 (Homeownership Education) had its language clarified to show that the FNMA Homeview\u00ae education course meets Chenoa Fund requirements for the HomeReady\u00ae DPA product. The updated language is provided below:<\/p>\r\n\r\n\r\n\r\n