This document provides an overview and instructions for CBCMA Training Series topics related to Chenoa Fund down payment assistance programs. It outlines 13 topics that will be covered, including an overview of all Chenoa Fund programs, how to calculate area median income, the pre-registration and underwriting processes, locking loans, securing down payment assistance approvals, and why to use Chenoa Fund programs. The document provides details on disclosures and documentation required for Chenoa Fund secondary financing, including reflecting the assistance accurately in the Automated Underwriting System. It also provides guidance for handling loans registered as "Out of Scope" in Desktop Underwriter.

1. CBCMA Training
Series

2. Topics
1 – All Chenoa Fund Programs Overview
Conventional / FHA
2 – How to Calculate AMI
3 – Pre-Registration: The 1003
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 1003
• LE (and COC LE if you don’t lock initially)
• Initial CD
• Final CD
• See our Correspondent Lending Guide,
section 5.34.7, for a full list
(chenoafund.org)
Required Documents

4. • List the secondary financing
as shown on the 1003
Secondary Financing on 1003 (1st Mortgage)

5. Image: Where to disclose the DPA.
Declarations Page of 1003 (1st Mortgage)

6. Reflecting Secondary Financing in AUS️ (1st Mortgage)
Running an FHA or Conventional loan—Borrowers Summary Screen
• Page 2, “Source of
Down Payment”: select
Secured Borrowed
Funds
• The explanation is
always CBCMA, not
Chenoa Fund
Equity from Subject Property

7. 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 blankStreamline 1003 Area: HomeReady Conventional
This can be found underneath the Fannie Mae additional data
screen.
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.

8. Reflecting Secondary Financing in DU®️ (1st Mortgage)
Streamline 1003 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 both red-outlined boxes.
Special Feature Codes for Community Lending: 118 and 127

9. 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)

10. • 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)

11. 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 1003
• Digital signatures are acceptable

12. Desktop Underwriter
in Detail (First
Mortgage:
Conventional 97)

13. • 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”

14. Go directly to the Fannie Mae EDIT Menu
Fannie Mae DU

15. 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 Lending” and “Community Seconds”
2. If Conventional 97, leave “Fannie Mae’s Community Lending
Project” blank
3. If HomeReady, select “08 HomeReady” in the above box
4. Select “01 Any payment required within first five years”

16. Second: Community Lending (Conventional 97)
Under “Appraisal Information: FIPS
Code”, input:
1. 127
2. 118
Leave the other fields blank.
Confirm that all data has been
entered, then save and submit
through DU

17. Second: Community Lending (HomeReady)
Under “Appraisal Information: FIPS Code”, input:
1. 127
2. 118
Enter the information below
Confirm that all data has been entered, then save and submit through DU