CBCMA

Training Series #1:

For Loan Officers
 Chenoa Fund by CBC Mortgage Agency:
General Overview
• The Chenoa Fund, as a whole, is
subdivided into three different programs
with one to two products apiece.
• The Rate Advantage and DPA Edge
Programs are issued in conjunction with
FHA insured loans.
• Our two conventional offerings are issued
in conjunction with conventional loans.
• Only the DPA Edge program includes a
forgivable second option.
• CBCMA offers the Rate Advantage
Product to provide a lower interest rate for
the borrower, and to provide a better YSP
for the lender.
 Chenoa Fund Overview Continued
• The programs are allowed in all states
except New York.
• All programs offer 3.5% for the second
mortgage.
• Up-front fees are limited only by the 3%
points and fees rule.
• The first mortgage must be sold to CBC
Mortgage Agency.
• At the time you sell your first mortgage to
CBC Mortgage Agency, the down payment
funds you advanced are reimbursed.
• Your underwriter underwrites the file.
• Approved property types include SFR,
PUD, Townhome, Condo, Attached,
Detached, and Modular Homes.
• No Manufactured Homes.
• HPML (Rebuttable Presumption) is allowed,
but no High Cost Mortgages.
 Fannie Mae’s
HomeReady®️
Program*
AND
Conventional
Standard 97% LTV
Loans*
Note: In order to offer conventional products,
you must be FNMA approved.

*Neither the Chenoa Fund, CBCMA nor any

of their products are approved by or
affiliated with Fannie Mae. It is the
originating lender's responsibility to ensure
that the use of CBCMA second mortgages,
the CBCMA first mortgage, and combination
of the CBCMA first and second mortgages
are compliant with Fannie Mae
requirements.

CBCMA’s correspondent guidelines include

additional overlays to the HomeReady®️
program.

HomeReady®️ is a registered trademark of

Fannie Mae.
HomeReady®️
1. No borrower investment required.
2. Single family only.
3. No income limits in low-income census tracts.
4. 100% of area median income (AMI) in all other
census tracts.
5. Purchase Only.
6. All borrowers must have a minimum FICO
score of 640.
7. 30-year Fixed Rate Mortgage.
8. Second lien is a 10-year Fixed Rate Mortgage
with an interest rate 2% higher than the first
mortgage.
9. MI Coverage 25%.
10. DU®️ Only – to 97.
11. Concurrent Homeownership Allowed.
12. Requires borrower to take Homebuyer
Education class.

DU®️ is a registered trademark of Fannie Mae.

 Conventional Standard 97% LTV Loans
1. No borrower investment required.
2. Single family only.
3. No income limits.
4. Purchase only.
5. All borrowers must have a minimum FICO
score of 640.
6. 30-year Fixed Rate Mortgage.
7. Second lien is a 10-year Fixed Rate
Mortgage with an interest rate 2% higher
than the first mortgage.
8. MI Coverage 35%.
9. DU®️ Only – to 97.
10. Concurrent Homeownership Allowed, but
at least one borrower must be first-time
homebuyer.
11. No Homebuyer Education class required.
 PRODUCT:
Rate Advantage
Rate Advantage Program
• Qualifying Income: < or = 115% AMI
• Requires monthly payment.
• FICO Scores 640 minimum.
• 10-Year term 8% Interest rate.

• Non-occupant co-borrowers are not

allowed.
• No concurrent homeownership.
• Max DTI 50%
• Manual underwrites are not allowed.
Note: Look to this one first to benefit you.
 PRODUCTS:
DPA EDGE
Soft Second Repayable Second
Advantages with the DPA Edge Program
• Only Qualifying Income used for AMI
calculations.
• FICO Scores minimum of 620.
• Non-occupant co-borrowers are allowed.
• DTI per AUS or FHA manual underwriting
guides.

DPA Edge FHA Overlays

• Only offered for single-family and two unit properties.
• Three to four unit properties not allowed.
Chenoa Fund
DPA Edge: Soft
Soft Second
Second
1. No Payment
• Qualifying Income: < or = 115% AMI.
•2.No0% Interest Rate and 30-year Term
monthly payment.
3. Forgiven after 36 consecutive on-time
• FICO Scores 620 minimum.
payments on FHA 1st Mortgage
• 0% Interest Rate and 30-year Term.
4. Qualifying Income <= 115% AMI
• Forgiven after 36 consecutive on-time
5.payments
FICO Scores
on FHAdown to 620
1st Mortgage.
6. Section H of 1003 must indicate down
payment borrowed
7. Requires Funding Obligation Letter
Issued prior to closing-only CBCMA
signature
DPA Edge: Repayable Second

• Qualifying Income: > 115% AMI.

• Requires monthly payment.
• FICO Scores 620 minimum.
• 10-Year term 0% interest rate.
• 30-Year term 5% interest rate.
 Quick Comparison Matrix: All Products
HomeReady®️
a.) CBCMA offers 3% to
cover down payment, 0.5%
to cover closing costs.
b.) 2nd mortgage repayable.
c.) 10 year term, with an
interest rate 2% higher than
the first mortgage.
d.) 640 minimum FICO
score.
e.) No income limits.
f.) DTI restrictions per
AUS guidelines.
g.) Homebuyer education
not required.
h.) MI Coverage 35%.
Conventional Standard
97% LTV Loans
a.) CBCMA offers 3% to
cover down payment, 0.5%
to cover closing costs.
b.) 2nd mortgage repayable.
c.) 10 year term, with an
interest rate 2% higher than
the first mortgage.
d.) 640 minimum FICO
score.
e.) No income limits in low-
income census tracts; 100%
AMI in all other income
tracts.
f.) DTI restrictions per AUS
guidelines.
g.) Homebuyer education
required.
h.) MI Coverage 25%.
Rate Advantage
a.) CBCMA offers 3.5% to
cover down payment.
b.) 2nd mortgage repayable.
c.) 8% with 10 year term.
d.) 640 minimum FICO
score.
e.) Qualifying Income less
than or equal to 115% AMI.
f.) Max DTI 50%.
g.) Homebuyer education
not required.
h.) Please see HUD
handbook 4000.1 for
current upfront MIP rates.
DPA Edge: Soft Second
a.) CBCMA offers 3.5% to
cover down payment.
b.) 2nd mortgage forgivable.
c.) Forgivable after 36
consecutive on-time
payments on the 1st
mortgage.
d.) 620 minimum FICO
score.
e.) Qualifying Income less
than or equal to 115% AMI.
f.) DTI restrictions per
AUS guidelines.
g.) Homebuyer education
required for borrowers with
credit scores between 620-
639.
h.) Please see HUD
handbook 4000.1 for
current upfront MIP rates.
DPA Edge: Repayable
Second
a.) CBCMA offers 3.5% to
cover down payment.
b.) 2nd mortgage repayable.
c.) 0% interest with 10 year
term or
5% interest with 30 year
term.
d.) 620 minimum FICO
score.
e.) Qualifying Income
greater than 115% AMI.
f.) DTI restrictions per
AUS guidelines.
g.) Homebuyer education
required for borrowers with
credit scores between 620-
639.
h.) Please see HUD
handbook 4000.1 for
current upfront MIP rates.
 Did you know…
…if you go to chenoafund.org and click on the Program Guidelines link at the top of the page, you will be taken
to a more detailed version of the Product Matrix, as well as a more complete version of our programs?
Calculating Area Median Income
• Go to the HUD Area
Median Income Site.
https://www.huduser.gov/po
rtal/datasets/il.html
• Select the most recent
fiscal year.
• Then “Click Here for FY
[most recent year] IL
Documentation”
Calculating Area Median Income

• Select the state.

• Select the county.
• Click “View County Calculations.”
Note: This is a third party site. CBCMA State Restrictions still apply,
even if you see the option here.
 Calculating Area Median Income: Primary Method

• For families with a size

of 1-4, you’ll want to pull
the number from the
“Median Family Income”
column. This is outlined
in red.
• You determine the AMI
by multiplying the
Median Family Income
by 115%.
Example: $69,100 x 115%
= $79,465
 Calculating Area Median Income: Alternative Method
There is an alternative
calculation method allowed
within the UW comments on
the 1008. For families with a
size greater than 4 (5 and up),
use this method.
• First, locate the appropriate
family size underneath the
“Persons in Family” column,
in the “Very Low (50%)
Income Limits” row.
• Find the appropriate income
limit, and then multiply that
number by two.
• Then, multiply that number by
115%.
Example, using a family of 6:
$40,100 x 2 = $80,200 X 115%
= $92,230
Pre-Registration:
The 1003
1003: Important To Remember
Both the First and Second Mortgage require
a full set of TRID compliant disclosures,
which should include the:
• 1003
• LE
• Initial CD
• Final CD
For a comprehensive list of all the
documents we require the borrower to sign,
please refer to our Program Guidelines,
which can be found at ChenoaFund.org.
Secondary Financing on 1003 (1st Mortgage)

Image: List secondary financing as

follows on the 1003.
Declarations Page of 1003 (1st Mortgage)

Image: Where to disclose the DPA.

Reflecting Secondary Financing in DU®️ (1st Mortgage)

Page 2-Types, Terms, &

Property

Page 7-Transaction Details

Reflecting Secondary Financing in DU®️ (1st Mortgage)

Please use Special Feature Code 118 when running your

conventional loans through Desktop Underwriter. This can be found
under the Additional Data Screen in DU®️.

®️.
Secondary Financing LP (1st Mortgage)

Image: You will see this screen if you are using Secondary Financing LP
system.
1st Lien Closing Disclosure (1st Mortgage)

Image: The DPA must be listed as “CBC Mortgage Agency 2nd Lien”
under section L04 or under Other Credits.
Important Reminder

• You must deliver disclosures to borrower following the

TRID guidelines.
• The LE must be mail stamped or signed by borrower
within 3 days of the 1003.
• Digital signatures are acceptable.
Commonly Missed Documents
Make sure you upload these commonly missed
files to avoid added conditions.

Credit Package
• Soft pull credit report within 10 days of close.
• Case Query from FHA Connection to show
UFMIP is paid.
• Appraisal logging.
• Both the 1st and 2nd Mortgage 1003s.

Closing Package
• MRI FOL.
• First Note and Deed of Trust/Mortgage.
• Second Note and Deed of Trust/Mortgage.
 Features and Benefits: Conventional
CBC Mortgage Agency is a government entity powering the Chenoa Fund, a tool designed to help increase home
ownership. This is accomplished by offering qualified borrowers down payment assistance in the form 2nd mortgages,
resulting in zero down payments.

“… Renters looking to buy a home in the near future cited the following barrier … saving enough for a down
payment.” -Forbes

Features Benefits
a) DTI based on AUS findings (no overlay a) Increased purchasing power.
cap).
b) No first-time homebuyer requirement b) Simplicity.
(above 640 FICO).
c) Any city, any state (NY excluded). c) Purchasing where the customer desires.
d) Lower payment
d) Market rate 1st mortgage e) A knowledge that funding will always be
e) Stable, continuous, non-bond funding. available.
f) SRP/YSP flexibility. f) Profit flexibility.
• No matter your current relationship with DPA, now is the time to increase loan volume, qualify more customers, and experience fewer dropped
loans. Chenoa Fund is provided by CBC Mortgage Agency, an FHA approved Government Title II Lender. HUD statute allows government entities to
provide down payment assistance.
• Chenoa Fund is the premier DPA that offers simplicity, ease, and options that can help you and your customers accomplish great things in home
ownership.
• All industry guidelines apply. These marketing ideas can generate interest and phone calls from consumers and real estate agents. Lending Guidelines
 Features and Benefits: FHA
CBC Mortgage Agency is a government entity powering the Chenoa Fund, a tool designed to help increase home
ownership. This is accomplished by offering qualified borrowers down payment assistance in the form 2nd mortgages,
resulting in zero down payments.

“… Renters looking to buy a home in the near future cited the following barrier … saving enough for a down
payment.” -Forbes

Features Benefits Product

a) FICO down to 620. a) Easy for borrowers to qualify. a) DPA Edge
b) DTI based on AUS findings (no overlay cap). b) Increased purchasing power. b) DPA Edge
c) No first-time homebuyer requirement (above 640 c) Simplicity. c) DPA Edge/Rate Advantage
FICO).
d) Any city, any state (NY excluded). d) Purchasing where the customer desires. d) DPA Edge/Rate Advantage
e) Co-borrower assistance with a non-occupant e) Qualifying options with the family. e) DPA Edge
coborrower.
f) No income limits. f) Streamlined process. f) DPA Edge
g) Market rate 1st mortgage g) Lower payment g) DPA Edge/Rate Advantage
h) Stable, continuous, non-bond funding. h) A knowledge that funding will always be available. h) DPA Edge/Rate Advantage
i) SRP/YSP flexibility. i) Profit flexibility. i) DPA Edge/Rate Advantage

• No matter your current relationship with DPA, now is the time to increase loan volume, qualify more customers, and experience fewer dropped
loans. Chenoa Fund is provided by CBC Mortgage Agency, an FHA approved Government Title II Lender. HUD statute allows government entities to
provide down payment assistance.
• Chenoa Fund is the premier DPA that offers simplicity, ease, and options that can help you and your customers accomplish great things in home
ownership.
• All industry guidelines apply. These marketing ideas can generate interest and phone calls from consumers and real estate agents. Lending Guidelines
Important CBC Mortgage Agency Contacts
Information and questions
info@chenoafund.org
Portal Questions
submissions@chenoafund.org
Underwriting Questions
scenariodesk@chenoafund.org
Purchase Clearing
Please contact the Purchase Clearing
specialist for the specific loan you’re
working on.
Collateral/Shipping
finaldocs@chenoafund.org
Servicing
servicing@chenoafund.org
Conclusion