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
Conventional / FHA
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. • Mortgagee Clause (FHA First Mortgages
and All Repayable Seconds)
Essex Mortgage
ISAOA/ATIMA
PO Box 29411
Phoenix, AZ 85038-9411
• Mortgagee Clause (Conventional First
Mortgages and Forgivable Seconds)
CBC Mortgage Agency
ISAOA/ATIMA
912 Baxter Dr, Ste 150
South Jordan, UT 84095
Address
4. Send Second Mortgage Payments: Amortized
Second Mortgage Payment
Address
ATTN: Cashiering
2100 SE 17th Street #112
Ocala, FL 34471
5. Send Second Mortgage Payments: Soft
Second Mortgage Payment
Address
CBC Mortgage Agency
Attn: Payment Processing
912 Baxter Dr, Suite 150
South Jordan, UT 84095
6. First Mortgage Payments: FHA
1st Mortgage Payment
Address
Essex Mortgage
ISAOA/ATIMA
PO Box 105178
Atlanta, GA 30348-5178
• Essex Mortgage is our Contracted
Servicer
• CBC Mortgage Agency (CBCMA) sells
first mortgages to investors following the
initial close
• Essex will assume the servicing burden
the moment a loan is sold to CBCMA
• Make sure your borrowers understand
that they may need to make payments
elsewhere either on or after the first
month
• Borrowers should expect to receive a
Goodbye Letter from CBC Mortgage
Agency when their first lien has been sold
Essex Servicing Line
855-748-2722
7. First Mortgage Payments: Conventional
1st Mortgage Payment
Address
CBC Mortgage Agency
ISAOA/ATIMA
912 Baxter Dr, Ste 150
South Jordan, UT 84095
• CBC Mortgage Agency (CBCMA) sells
first mortgages to investors following the
initial close
• Make sure your borrowers understand
that they may need to make payments
elsewhere either on or after the first
month
• Borrowers should expect to receive a
Goodbye Letter from CBC Mortgage
Agency when their first lien has been sold
CBCMA Customer Service
866-563-7572
8. Reminders
• First and second mortgage
payments are not
combined; please help
borrowers understand this
• Hours of Operation
(CBCMA):
• 8:00 AM–6:00 PM MT
• Monday through Friday
• Hours of Operation (Essex):
• 8:30 AM–5:00 PM PT
• Monday through Friday
9. Early Payment Default
• Early Payment Defaults are
defined as:
• When the first payment is 30+
days delinquent; or
• When any of the second
through sixth payments are 60+
days delinquent; or
• If the mortgagor becomes a
debtor in bankruptcy (or any
similar type of proceeding)
• A payment is considered
delinquent if it is not received
within thirty calendar days of the
due date date designated on the
mortgage note (first or second)
10. Early Payment Default (cont.)
• If a mortgage is prepaid in full,
other than by a refinancing,
before the 8th monthly payment
following the closing date, the
seller will
• Refund the premium paid by
the purchaser (“premium”
means the amount paid by
purchaser that exceeds the
principal balance of the
mortgage); and
• Refund the amount of the grant
or gift (if a grant or gift has
been provided through the
purchaser)
11. Subordination Policy
• CBC Mortgage Agency accepts
subordination requests for
some programs, with the
following requirements and
restrictions:
• On loans closed prior to March
1st, 2018, we require a 13-
month waiting period policy
• On loans closed after March
1st, 2018, we have a 36-month
waiting period policy
• To qualify, the loans must have
made either 13 or 36
payments, respectively, on
both the primary and
secondary loans with no late
payments
12. Subordination Policy (cont.)
• Payments may not be paid
forward; all payments must
have been made prior to
subordination approval (no
exceptions allowed)
• Soft seconds do not qualify for
subordinations; the note
dictates that a refinance of the
1st mortgage would trigger a
payoff of the 2nd mortgage
• A Soft Second with 5% DPA
may be subordinated after 10
years if the loan’s forgivable
status has been terminated
13. Subordination Policy (cont.)
• If a loan qualifies for
subordination, the following is
required
• The requesting party should
email a copy of the
subordination agreement to
servicing@chenoafund.org for
review and acceptance
• A $150 processing fee
(payable to CBCMA)
• A return shipping label
• A subordination document to
be executed
• All documents may not be
executed until we have verified
the payment as received
