Most Current May 6, 2021

1. CBCMA Training
Series

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. General Instructions

4. • Our Purchase Clearing department does
not handle trailing documents, collateral,
FHA, or MERS
• Refer questions pertaining to those types
of documents to our Final Docs
department
• CBCMA’s Purchase Clearing Department
handles conditions
• General questions can be emailed to
purchaseclearing@chenoafund.org
• Scenario questions should be sent to
scenariodesk@chenoafund.org
Important Reminder

5. • CBC Mortgage Agency’s Due Diligence
Partner will complete an initial review of
the loan from the initial package that the
correspondent uploads.
• It is critical that you use the Loan
Delivery Checklist document available
on our website to assist you in gathering
your documents before uploading.
• This produces fewer repetitious conditions
for documentation.
Initial Upload Instructions

6. • To secure a copy of CBCMA’s Loan Delivery
Checklist, contact your account executive.
• This document is also available under
“Process and Documents” here:
https://chenoafund.org/lender/cbc-documents-
and-tools/
Loan Delivery Checklist

7. • 2nd Lien Loan Application
• 2nd Lien Loan Estimate*
• Recommended—Letter of Intent to Proceed
• 2nd Lien Closing Disclosure*
• 2nd Lien Notice of Transfer of Servicing
• 2nd Lien First Payment Letter for all REPAYABLE seconds. This
must reflect CBCMA’s servicing address:
ATTN: Cashiering
2100 SE 17th Street #112
Ocala, FL 34471
• 2nd Lien Note, which must reflect the servicing address above
• 2nd Lien Note to be Endorsed to CBC Mortgage Agency, or an
Allonge that is wet signed (stamped signature OK if it is an original)
• 2nd Lien Mortgage/Deed of Trust
• CBCMA Secondary Financing Disclosure
• CBCMA Letter from the President
• CBCMA Quality Control Release form
• Addendum regarding seller of lender contributions, if applicable-–
applies to loans with seller-paid borrower origination charges
2nd Lien Documentation Requirements
*Must meet TRID timing & delivery requirements

8. • Ensure that the following commonly missed files
are uploaded (to avoid added conditions)
• Tri-merge/three bureau, soft-pull credit refresh,
dated within 10 calendar days of the Note date or
evidence of enrollment in a credit monitoring service
through this time period
• Appraisal logging
• 1st Mortgage URLA – page 5, section 4b,
“Subordinate Lien” should be bubbled and the
section completed with “CBCMA” as the creditor
• 2nd Mortgage URLA – must be signed and dated
within 3 days of choosing program. Make sure your
LOS system does not automatically pick up date
from the 1st lien. Loan will then be out of compliance
with TRID
• 92900-LT/1008 – Secondary financing govt. box
should be checked. The source should read
CBCMA 46-2780476 (never Chenoa or Chenoa
Fund)
• 92800-5B – On page 3, the expiration date should
be 120 days from the commitment issued and
should match the 92900-A/Addendum
• FHA Amendatory Clause signed by all parties
Commonly Missed Documents – Credit Package
• Continued:
• 92900-A/Addendum – Page 4 needs to be signed
by the lender; page 3 needs the expiration date
(and the underwriter’s signature), which should
match the 92800-5b
• All signed Loan Estimates and Closing Disclosures
and/or Disclosure tracking to evidence delivery of
disclosures (seller’s CD doesn’t need to be signed)

9. • Ensure that the following commonly missed
files are uploaded (to avoid added conditions)
• MRI Funding Obligation Letter
• First Note and Deed of Trust/Mortgage
• Second Note and Deed of Trust/Mortgage
• LE 2nd lien – 2nd lien follows TRID guidelines
just like first. It must be issued within 3 days of
second lien URLA
• Closing Disclosures – DPA should be listed in
section "L" and read “CBCMA 2nd lien” (never
"Chenoa”); when netting the fees, the full
amount of the DPA must be listed in
parentheses in the description
• Example: “CBCMA 2nd lien ($15,250),” with the net in
the fees field
• FHA Settlement Cert – Contract date needs to
be included. Your LOS will not auto populate
this for you.
• An executed copy of the assignment of a
second Deed of Trust/Mortgage or evidence
of a second Deed of Trust/Mortgage MIN
transfer in MERS
Common Mistakes and Commonly Missed Documents – Closing
Package

10. Admin Fee Clarifications
• $399 Admin Fee on first mortgage
• Charged to the correspondent
• Reflected on the PA as a deduction from total loan
sale proceeds
• No lender fees on secondary financing
• Additions to the lender fees to offset the Admin
Fee:
• NEVER reflect as a charge payable to CBCMA
• List fee must always be listed in Section A, in
Origination Charges or as a separate line item
Admin charge
• If passed to the borrower, this fee is subject to the
QM 3% points & fees test.

11. • No lender fees should be charged on
the second.
• The only fees allowed to be charged on
the second:
• Prepaid interest
• Recording fees for the Deed of Trust
• Reasonable settlement fees
• A courier fee to return the signed
documents to the lender
• At no time will CBCMA purchase a loan
that exceeds the QM 3% points and
fees test.
Displaying 2nd Lien Loan Fees on the 2nd CD

12. • Review the Buckley Sandler memo on
converting points and fees between
borrower and seller:
https://chenoafund.org/lender/cbc-
documents-and-tools/
• Converting seller credits can pay this fee if
the following is done before closing:
• Borrower has signed an addendum to the
note (found at the above link)
• The fee is itemized in the seller’s column on
the CD
• This allows the charges to not be counted
for the QM 3% points and fees rule.
Rate Sheet Clarification
• CBCMA:
• Offers one rate for each product and its
FICO band
• Does not charge discount points
• Cannot, in the current market, offer the
alternative par rate necessary for discount
points to be bona fide
• Our rate sheets refer to fees from specific
FICO bands as “Fee Paid by Lender.”
• Any fees paid by the lender to CBCMA are
a reduction in the YSP/SRP.
• If this fee is passed on to the borrower, the
QM 3% points and fees rule applies.
• Fees from corporate margins (from lower
rates) belong in section A of the CD, “points
and fees.”

13. Maximum Origination Fee
• CBCMA will allow a maximum origination
fee of 1.5%.
• Additionally, the lender may charge for any
CBCMA loan level pricing adjustments
(LLPAs); this charge may be seller-paid.
• Lenders will be required to refund
borrowers for any origination fees (including
non-bona-fide discount points) exceeding
1.5% plus CBCMA LLPAs.
• Reasonable lender underwriting,
administrative, or program fees are not
considered in this calculation; however,
they are considered in the QM 3% points
and fees test.

14. Follow FHA 4000.1 for guidance.
Overtime, Bonus, or Tip Income refers to income that the Borrower
receives in addition to the Borrower’s normal salary.
The Mortgagee may use Overtime, Bonus or Tip Income as
Effective Income if the Borrower has received this income for the
past two years and it is reasonably likely to continue.
Periods of Overtime, Bonus or Tip Income less than two years may
be considered Effective Income if the Mortgagee documents that
the Overtime, Bonus or Tip Income has been consistently earned
over a period of not less than one year and is reasonably likely to
continue.
For employees with Overtime, Bonus or Tip Income, the Mortgagee
must calculate the Effective Income by using the lesser of:
• The average Overtime, Bonus or Tip Income earned over the
previous two years or, if less than two years, the length of time
Overtime, Bonus or Tip Income has been earned; or
• The average Overtime, Bonus or Tip Income earned over the
previous year.
Overtime and Bonus Income Calculation

15. The DPA must be listed as “CBC Mortgage Agency 2nd Lien” or “CBCMA
2nd Lien” between sections L.04 and L.07.
1st Lien Closing Disclosure (1st Mortgage)

16. • 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)

17. • Commitment Issued – Effective date of the appraisal.
• Commitment Expires – 120 days from the Commitment issued date.
92800-5B

18. • For the source/EIN, you have two options.
• CBC Mortgage Agency 46-2780478
• CBCMA 46-2780478
• You must always select Gov’t. CBCMA is owned by Cedar Band
Corporation, a Native American s/b government entity.
92900 LT

19. • Page 4 must be signed by the lender.
• Page 3 must be signed by the underwriter.
• If Approve/Eligible DU findings: The “Date Mortgage
Approved” field must be equal to the date of the final
DU (prior to docs) and must also match the
Underwriter Date on the bottom of page 1 of the
92900-LT.
• The “Date Approval Expires” must be equal to the
Commitment expiration date on the 92800.5B form.
• The expiration date of the 92900-A/Addendum should
be 120 days from the appraisal expiration date.
92900-A/Addendum: Part 1

20. 92900-A/Addendum: Part 2
Note: Page 3 of the document

21. Uploading Documents

22. How to Retrieve Your Password
client.chenofund.org
• Confirm with your admin that you
have been granted access as a
user
• If your admin has granted you
access, you will receive an email
notification with a link
• Follow the email’s on-screen
instructions regarding setting up a
new password
• When registering a Chenoa Fund
loan, or obtaining any relevant
closing documents, use the
Chenoa Fund portal in addition to
your usual process
• It is recommended to use Google
Chrome when using CAP

23. • Select “Upload Closed Loan Images”
Uploading Closed Loan Documents

24. • Select either the Orig. Loan # or the pencil on the left-hand side.
Select the Correct Loan

25. • Closed loan images can be
uploaded in one batch or in
separate batches, but you
should not click the “Upload
Final FNM and Submit Closing
Docs” button until all closed loan
images are uploaded.
• If all closed loan images are not
included, then it may delay the
review
• Please make sure you upload
the loans to the correct location
• The original closed loan
package has to be uploaded to
the Closing Documents section
underneath the Loan Delivery
section. Otherwise, your review
will be delayed
Check the All Closing Docs Uploaded Box

26. • Drag the files onto the grey
bar
• Files dropped here will be
uploaded for review
Drag and Drop Files to Upload

27. • Once you’ve uploaded all
documents for review,
make sure you click on the
“Upload Final FNM and
Submit Closing Docs”
button to finalize the
process
• Follow the instructions
after you click on the
button
• Do not click on the button
until you’re sure you’ve
successfully uploaded all
documentation
Finalize the Upload Process

28. • The best file format is PDF
• If necessary, our software will accept
most other file types
• Do not password protect or encrypt files
• Clearly label each file
Supported File Types

29. • Review typically takes 2–3 business days
to complete before conditions are
released
• Your assigned Purchase Clearing
Specialist (PCS) will reach out to you and
advise when conditions have been
released
• This specialist will reach out to the contact
designated in the file
• Email your PCS or info@chenoafund.org
if you are not receiving
Wait for a Review