2. Topics
1 – All Chenoa Fund Programs Overview
Conventional / FHA
2 – How to Calculate AMI
3 – Pre-Registration: The URLA
Conventional / FHA
4 – Underwriting
5 – Lock Desk
6 – How to Lock a Loan
7 – How to Secure DPA Approvals
8 – How to Draw Documents
9 – Purchase Clearing: Uploading
10 – Purchase Clearing: Conditions and
Escalations
11 – Final Documents
12 – Servicing
13 – Why Use Chenoa Fund
Conventional / FHA
3. • Both the first and second mortgages
require a full set of TRID compliant
disclosures:
• Signed Initial URLA
• LE (and COC LE if you don’t lock initially)
• Initial CD
• Final CD
• See our Correspondent Lending Guide,
section 5.34.7 and 7.22, for a list
(chenoafund.org)
Required Documents
4. • List the secondary financing on the URLA
• Under “Creditor Name” put “CBCMA” (never “Chenoa” or “Chenoa Fund”)
Secondary Financing on URLA (1st Mortgage)
• Encompass Tip: Do not enter if first and second liens are married; doing so will
cause a double entry
5. Secondary Financing on URLA (1st Mortgage) (Cont.)
• If you are having difficulties in Encompass,
do the following:
• Go to “Tools”
• Go to “Piggyback”
• Enter your two loans (first and second)
• Link and Sync
• Your second loan should be populated in
section 4b
• If this doesn’t work:
• Unlink the two loans
• Make corrections
• Link again, but do not sync
6. Image: Where to disclose the DPA.
Put “No” for “C” if no other money besides subordinate funding
(4b) was disclosed. This section is not to be used for Chenoa
Fund’s down payment contribution.
Declarations Page of URLA (1st Mortgage)
7. Reflecting Secondary Financing in Encompass️ (1st Mortgage)
Running an FHA or Conventional loan—Fannie Mae Additional Data
• In “Fannie Mae Additional
Data,” select Secured
Borrowed Funds
• This is also available in the
92900-LT
• The explanation is always
CBCMA, not Chenoa Fund
8. Reflecting Secondary Financing in DU®️ (1st Mortgage)
For Conventional files : This is in the streamline 1003 area.
Fannie Mae additional data
Please note if your are doing Standard 97 leave Fannie Mae’s community lending product blank
Streamline URLA Area: HomeReady Conventional
This can be found underneath the Fannie Mae additional data
screen. Check mark only Community Seconds.
Special Feature Codes for Community Lending: 118 and 127
*Legal Disclaimer: Neither CBC Mortgage Agency (CBCMA), nor any Chenoa Fund products, are approved
by or affiliated with Fannie Mae. Originating lenders are responsible for ensuring that their use of CBCMA
second mortgages and conventional first mortgages are compliant with Fannie Mae requirements.
CBCMA is not FNMA approved. Lenders are never able to assign DU®️ findings to CBCMA or Chenoa Fund.
9. Reflecting Secondary Financing in DU®️ (1st Mortgage)
Streamline URLA Area: Conventional 97
*Legal Disclaimer: Neither CBC Mortgage Agency (CBCMA), nor any Chenoa Fund products, are approved
by or affiliated with Fannie Mae. Originating lenders are responsible for ensuring that their use of CBCMA
second mortgages and conventional first mortgages are compliant with Fannie Mae requirements.
CBCMA is not FNMA approved. Lenders are never able to assign DU®️ findings to CBCMA or Chenoa Fund.
This can be found underneath the Fannie Mae additional data
screen. Check mark only Community Seconds.
Special Feature Codes for Community Lending: 118 and 127
10. The DPA must be listed as “CBC Mortgage Agency 2nd Lien” or “CBCMA
2nd Lien” on section L.04.
1st Lien Closing Disclosure (1st Mortgage)
11. • If you take out the net proceeds from
the second lien, make sure you put the
principal balance in parentheses on the
CD for the first mortgage.
• Top screenshot (example): Principal
balance without net proceeds taken
out.
• Bottom screenshot (example): Principal
balance with net proceeds taken out.
• Reminder: If the line doesn’t fit
correctly, you may put “CBCMA 2nd
Lien” instead of “CBC Mortgage
Agency 2nd Lien.”
1st Lien Closing Disclosure (1st Mortgage)
12. Important Reminder
• You must deliver disclosures to borrower per TRID
guidelines
• The LE must be mail-stamped or signed by borrower
within 3 days of the URLA
• Digital signatures are acceptable
14. • When registering a 97% LTV Fannie Mae
conventional loan, it may register as “Out
of Scope”
• This could be caused by problems
between the upfront LOS and Fannie’s
system
• The following slides will teach you how to
handle this
“Out of Scope”
15. Go directly to the Fannie Mae Additional Data Menu
Fannie Mae DU
16. First: Reflecting Secondary Financing in DU®️ (1st Mortgage)
*Legal Disclaimer: Neither CBC Mortgage Agency (CBCMA), nor any Chenoa Fund products, are approved
by or affiliated with Fannie Mae. Originating lenders are responsible for ensuring that their use of CBCMA
second mortgages and conventional first mortgages are compliant with Fannie Mae requirements.
CBCMA is not FNMA approved. Lenders are never able to assign DU®️ findings to CBCMA or Chenoa Fund.
This can be found underneath the Fannie Mae additional data screen in
“Additional Loan Data Community Lending Information”
1. Check “Community Seconds” only, HomeReady or Conventional 97
2. If HomeReady, select “08 HomeReady” in “Fannie Mae’s
Community Lending Project”
3. If Conventional 97, leave the above box blank
4. For both, select “01 Any payment required within first five years”
08 HomeReady
17. Second: Community Seconds
Under “Appraisal Information: FIPS
Code”, input:
1. 127
2. 118
Leave the other fields blank.
Relevant for Conventional 97 and
HomeReady.
Confirm that all data has been
entered, then save and submit
through DU
19. • Go to “Print Screen”
• Print all pages:
• URLA
• Lender Loan Information (will not
automatically print with “All Pages”)
• Reach out to
scenariodesk@chenoafund.org for
assistance
Print Screen in Encompass
