CBC Mortgage Agency (CBCMA) is a federally chartered, public-purpose government lender. CBC Mortgage Agency (CBCMA) created Chenoa Fund to help lenders to assist their borrowers to obtain the 3.5% minimum required investment on an FHA loan.

1. CBCMA Training Series
#3:
Locks, Registrations,
& Closing Documents
FHA Product Line

2. Chenoa Fund by CBC Mortgage Agency:
FHA Overview
• Chenoa Fund is the program name for CBC
Mortgage Agency’s suite of down payment
assistance products, including second
mortgages for FHA loans.
• There are two FHA programs: the Rate
Advantage, and the DPA Edge.
• The Rate Advantage program has one
product. CBCMA offers the Rate Advantage
Product to provide a better first mortgage
interest rate for the borrower, and better
YSP/SRP for the lender.
• The DPA Edge is split into two products,
one for borrowers whose income is less
than 115% AMI, and one for borrowers who
income is greater than 115% AMI.
• Only the DPA Edge program includes a
forgivable second option. That option is
available for borrowers with an income that
is less than 115% AMI.

3. FHA Second
Mortgages:
The Rate
Advantage
Program

4. • Qualifying Income: < or = 115% AMI
• Requires monthly payment.
• FICO Scores 640 minimum.
• Second mortgage has a 10-Year term at
an 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
and your client.
Rate Advantage Program

5. FHA Second
Mortgages:
The DPA Edge
Program

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

7. • Qualifying Income: > 115% AMI.
• Requires monthly payment.
• FICO Scores 620 minimum.
• 10-Year term 0% interest rate.
• 30-Year term 5% interest rate.
• Non-occupant co-borrowers are allowed.
• DTI per AUS or FHA manual underwriting
guides.
• Only offered for single-family and two unit
properties.
• Three to four unit properties not allowed.
DPA Edge: Repayable Second (2/2)

8. 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: 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.
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.
Quick Comparison Matrix: FHA Products

9. In regards to Homebuyer Education,
Be sure to visit our Lender FAQs for more information on this topic. https://chenoafund.org/lender/lender-faq/
CBC Mortgage Agency offers pre-purchase counseling through Hope Loan Port, also known as Money Management International. This pre-
purchase counseling is provided for borrowers with a FICO score of 620 to 639, which also means this counseling is only required for our DPA
Edge products.
The aforementioned counseling courses are paid for by CBC Mortgage Agency. As such, correspondent-lenders should never direct their
borrowers with FICO scores 640+ to go to https://www.borrowersuccess.org/prepurchase. If borrowers without the proper FICO score attempt
to access this course, they will be turned away, which will cause much stress, frustration, and confusion on many borrowers’ parts.
For your borrowers that have a FICO score of 620 to 639, note that they will not be able to access the course until …
1.) they have been registered and/or locked by their lender in CBC Mortgage Agency’s portal.
2.) they have allowed for 24 hours to pass after the LO receives the relevant confirmation letter.
3.) they have a CBC loan number, provided for them by their LO (will start with “161”).
Coborrowers outside the 620 to 639 range will not need to take the course.
If you wish for your borrower with a FICO score 640+ to take Homebuyer Education through Hope Loan Port anyway, please utilize this link instead.
https://www.moneymanagement.org/buying-a-home/online-homebuyer-courses. Here, the courses range from $75-$99.
Feel free to contact info@chenoafund.org for even more information on Homebuyer Education.

10. Check out our Program Guidelines!
A more detailed version of our product matrix can be found on chenoafund.org.
First, click on Lenders.
Next, click on Program Guidelines.
Finally, scroll down to pages 8-16.

11. • Go to the HUD Area
Median Income Site:
https://www.huduser.gov/po
rtal/datasets/il.html
• Select the most recent
fiscal year.
Calculating Area Median Income

12. • 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

13. Calculating Area Median Income: Primary Method
• For the primary method,
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
Note: Pick the method that will
best match your borrower to
their desired program!

14. Calculating Area Median Income:
Alternative Method
There is an alternative calculation
method allowed within the UW
comments on the 1008.
• 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
Note: Pick the method that will best
match your borrower to their
desired program!

15. Registering and
Locking Loans
Through the
ChenoaFund.org
Portal

16. 1. Some Reminders
2. How to Gain Access and Log In to
CBCMA’s Portal
3. How to Register or Lock the First
Mortgage
4. How to Enter the Second Mortgage
Information to Get the File Approved
5. How to pull Documents Directly from
the Website
6. How to Draw Closing Documents
Upcoming Covered Topics

17. 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.
1003: Important To Remember

18. • You can register or lock the first
mortgage, and receive a confirmation
BEFORE the file has been approved.
• You will NOT be able to obtain an FOL or
any disclosures until we have reviewed
and approved the file.
• It is important that you register with the
correct program, or the file may need to
be changed before it can be approved.
Important To Remember

19. After your file has been approved, you will receive
the following via email. Please allow for our
standard processing times.
• CBCMA loan Registration Confirmation or a Lock
Confirmation.*
• Funding Obligation Letter.
• Loan Estimate Package (for Secondary
Financing).**
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.
*Note: All documents can be generated directly
from our website, once the file has been approved.
** Companies that use their own doc prep software
may not receive LE package.
Documents Received at Registration

20. How to Gain Access
and Log In to
CBCMA’s Portal

21. When registering a Chenoa
Fund loan, or obtaining any
relevant closing documents,
be sure to use the
ChenoaFund.org portal in
addition to your usual
process.
• First, confirm with your Lock
Desk that your email
address has been granted
access.
• Then, select
“Correspondent Lender
Login” at the top center of
the webpage.
First Gain Access, then Log In

22. When you go to the
ChenoaFund.org portal for the first
time, you will need to retrieve your
password.
• Enter your work email
address, then click on
password retrieval/account
lockout reset.
• When you receive the
appropriate email, follow the
instructions to set up your
permanent password.
How to Retrieve Your Password

23. How to Register or
Lock the First
Mortgage

24. Select ‘Loan
Registration/Lock/Pricing’ from
the side bar menu.
Note: All interactions with open
loans will take place in this
section.
Where to Begin Registrations

25. • ‘Global Loan Status’ will
display a list of all the
loans that you have
previously locked and
registered.
Note: You can Search loans
by the borrower’s loan
number or last name.
• When adding a new loan,
select ‘Add New Loan’
from the left side bar
menu.
Global Loan Status Homepage

26. When adding a new loan into the
system, follow the below steps.
• ‘Select ‘Choose File’ (Image:
Indicator 1)
• Locate the Fannie Mae 3.2 file
you wish to upload.
• Select ‘Upload’ (Image:
Indicator 2)
• Don’t forget to complete any
required fields. Anything
marked with a red asterisk
should be completed. (Image:
Indicator 3)
Our system will extract
information from the FNM file so
you should not be entering all the
data manually.
Adding New Loan

27. 1.) Select the correct
program type you wish to
utilize.
Keep in mind that our system
may display up to five
separate products, so make
sure you understand each
one before selecting.
Each program has its own
DTI and/or credit score
requirements.
Select the Correct Program

28. 2.) Select the correct DPA
type you wish to utilize.
Keep in mind that our
system may display up to
four separate DPA types,
and each DPA type is
matched with a specific
program.
Each program has its own
DPA requirements.
Select the Correct DPA

29. • This example registration
screen information has been
extracted from a Fannie Mae
3.2 file.
• Notice that fields such as
Property Information and
Loan Information have been
automatically filled.
• To calculate the base loan
amount and the DPA
amount, click ‘calculate’.
The fields will auto populate.
Calculate the Base Loan and DPA Amount

30. • The data fields above the horizontal black
line are for the First Mortgage registration.
• The data fields below the black line are for
Secondary Financing.
• You can register and lock the first mortgage
without completing Secondary Financing
information, but the file cannot be approved
until both sections are completed.
• You can enter all the information below the
line now to speed up the process.
• All required fields regarding the Secondary
Financing must be filled out even if you will
be producing your own LEs.
• Please use the comment box to add any
important information.
More Details

31. • To register the loan,
complete all asterisked (*)
items above the black line
(arrow 1) and then select the
’Price’ button.
• Please check the lock
period. All of our locks are to
be set at 45 days. This is our
most common error.
Once your loan has been
registered and/or locked, you
cannot make any additional
changes to the information in
the data entry form above the
black line.
Lock/Register the First Mortgage

32. The Loan Price Results screen
will show you your price. At
this point you may:
• FLOAT the first
mortgage by selecting
‘Register.’
• LOCK the first mortgage
by selecting ‘Lock Price.’
• Or you may REJECT the
pricing and return to the
input screen.
Loan Price Results

33. CBCMA’s Lock Desk closes at …
• 5pm Eastern Time
• 4pm Central Time
• 3pm Mountain Time
• 2pm Pacific Time
Something to Keep in Mind
If the pricing looks significantly lower than you expect, please check the time.

34. Once you register or lock your
loan, click the ‘Print
Confirmation’ button to obtain
your Registration Confirmation
or Lock Confirmation.
Print Confirmation

35. • This is a sample
Registration/Float
Confirmation.
• This form of confirmation
means that the first mortgage
is floating.
• If you have a document that
looks like this, you will need to
come back in and lock the loan
at a later date to ensure
delivery.
Sample Registration Confirmation

36. • This is a sample Lock Confirmation.
• This document breaks down when the
loan was locked, the lock term, and,
most importantly, the lock expiration.
• The lock period needs to go through
clearing for purchase.
NOTE: After printing the Registration or
Lock, close the tab, which will return you to
the previous screen
Sample Lock Confirmation

37. How to Enter the
Second Mortgage
Information to Get
the File Approved

38. • To receive approval, you
must complete the
asterisked (*) data below the
black line.
Reminder: Once your loan has
been registered and/or locked,
you cannot make any
additional changes to the
information in the data entry
form above the black line.
Get the file approved.

39. • If you are using your own
doc prep software to prepare
the LE, you don’t need to
enter fee information. (make
sure we are aware of your
process)
• Check the box by each fee
charged for closing the
secondary financing.
• Also ensure the fee is
placed in the appropriate
column.
Add Fees for Second Mortgage

40. Finish the Process
Once all fields are complete click “Update” to save the info, and wait for file to be
approved. This serves as a save button.

41. CBC Mortgage Agency’s Submissions team
will automatically send the relevant
documents to the contact on file, once it has
been approved. You can email
submissions@chenoafund.org for copies of
those documents.
• CBCMA loan Registration Confirmation or a
Lock Confirmation.*
• Funding Obligation Letter.
• Loan Estimate (for Secondary Financing).
*Note: We will show you how to obtain these
documents from our website in the following
slides. All documents can be obtained from
the website, once the loan has been
approved.
Once the file has been approved you will receive…

42. How to Obtain The
Documents Directly
from the Website

43. You will find yourself in the
Global Loan Status.
This is where you will be
able to see a list of all the
loans that you have
previously locked and
registered.
• Search loans by
borrower’s loan
number or last name.
Global Loan Status Homepage

44. Funding Obligation Letter & Lock Confirmation
• You can locate your funding obligation letter by clicking the ‘Open Folder’
icon. If you don’t see the icon, you haven’t secured an approval from
CBCMA yet.
• If you would like to print the confirmation (Lock or Float), click on the
’Padlock’ icon.

45. The funding obligation letter is required in the
Closed Loan package for all programs.
Most importantly, the letter states…
• Where the down payment is coming
from, and
• CBC’s promise to reimburse your
company for the secondary financing.
Funding Obligation Letter
600 N 100 E
Cedar City, UT 84721
Lender: ABC Lender
Loan Application Number: 151110001
FHA Case Number 123-230598230-704
Borrower(s): John Doe
Jane Doe
Purchase Price of Property: $200,000.00
Property Address: 123 Main Street
Anywhere, TN 34222
Form of Assistance: Soft Second
Amount of Assistance: $7,000.00
Interest Rate (If Applicable): 0
Term (If Applicable): 360
Monthly Payment Amount (If Applicable): $0.00
Commitment Date: 11/10/15
As of the commitment date, CBC Mortgage Agency has incurred a legally enforceable obligation to
provide the funds towards the Borrower(s)’ Minimum Required Investment. Lender should
deliver funds for the MRI to the closing entity prior to or at the time of loan closing. CBCMA will
reimburse Lender from funds legally belonging to CBCMA at or before closing under this
obligation once the following conditions are met:
• The first mortgage associated with this assistance must be closed and delivered to CBCMA
for purchase.
• All purchase conditions for the first mortgage associated with this assistance must be
satisfied.
If these items are not delivered to CBCMA, this obligation will be void. WARNING: Failure of
CBCMA to satisfy the obligation may result in a determination that the funds for the Borrower(s)’
MRI were provided by a prohibited source and the first mortgage obligation may not be insurable
under the FHA insurance program.
Sincerely,
MRI Funding Obligation
Image: Soft Second FOL

46. • The Loan Estimate can be
drawn once the file has been
reviewed and approved by
CBCMA.
• Once the file has been
approved, you can go back to
the Global Loan Status.
How to Obtain LE Package From the Website

47. You can search for your loan
using the borrower’s loan
number or last name.
Global Loan Status Homepage

48. Once you have entered the loan, you can again click on the “Draw My Own
Docs” button.
Click on Draw My Own Docs

49. After you click “Draw My Own Docs,” a second screen will open with the package
selection options.
Note: in order for this to work, you must have pop-ups enabled.
Draw My Own Docs

50. Draw My Own Docs
• Select the package you are requesting
and click “Prepare Package.”
• It can take up to several minutes for your
package to generate, depending on
internet speed and other variables.

51. You can download the CD and
Closing package by clicking
“Preview Loan PDF.”
Preview Loan PDF

52. How to Draw Closing
Documents

53. • Process your loan file as usual.
• Submit to your underwriter.
• Clear conditions.
• You will need to request loan closing
documents from CBCMA for secondary
financing.
• In order to do this, log back into the
Chenoa Fund portal and access the
Global Loan Status homepage.
How to Request These Documents

54. You will find yourself in the
Global Loan Status.
This is where you will be
able to see a list of all the
loans that you have
previously locked and
registered.
• Search loans by
borrower’s loan
number or last name.
Global Loan Status Homepage

55. Return to the data fields under
the black line.
NOTE: If any changes need to
be made to information above
the black line you will need to
email
submissions@chenoafund.org
to have those documents
updated.
Completing Fields Below Black Line

56. • Before you complete any data fields, change the Doc Set Request field
from Upfront to Final.
• This will create some new fields and add additional asterisks on the
data fields required to complete the loan documents.
• All fields with red asterisk are 100% required.
Note: NA, 0, etc, are not acceptable answers.
All Asterisked Fields are Required

57. • You can select either “Update/Have Chenoa Fund Draw
Docs” or ”Draw My Own Docs.”
• The differences between these two options will be explained
in the next few slides.
Select How You Would like to Get Docs

58. Have Chenoa Fund Draw Docs
• Selecting this option will send a notification
to our inbox.
• This notification will only be sent one time,
after you ensure the Doc Set Request field
says “Upfront,” then click the “Have Chenoa
Fund Draw Docs” button.*
CONS
• Any following updates or changes will need
to be sent to submissions@chenoafund.org
• If CBC prepares the docs, you will be
subject to our standard processing times.
PROS
• You don’t have to worry about securing all
the documents yourself.
*We do not review the data. What you enter
into our system, is what will generate on the
documents.

59. Draw my own Docs
• To make changes, you will need to search
for the loan again in the Global Loan
Status.
PROS
• There is not a limit to how many times you
can generate a package.
• There is no waiting in the queue for your
docs to be prepared.
CONS
• You will be responsible for producing
these documents yourself.

60. Show Support for a Withdrawal of
Mortgagee Letter 2019-06
HUD issued Mortgagee Letter 19-06 without following the
Administrative Procedures Act. This was unlawful, and has
caused confusion and concern in our industry.
CBC Mortgage Agency has filed for a restraining order to
temporarily block this new policy and once in place, will
file for injunctive relief. We are confident that the
mortgagee letter will be removed and a more responsible
policy will be implemented that follows the proper
procedures of public comment and an implementation
period.
As we litigate, we seek your support politically to ensure
that our politicians hold government appointees
accountable. We encourage you to please be part of the
solution to continue to help credit worthy Americans
purchase their own home. Here are some ways you can
help.
1. In the link below, you will find documents that can be used as a
template to reach out to key appointees and congress people who can
quickly act on this irresponsible use of government power. Please share
your thoughts and be heard so we can preserve responsible down
payment assistance.
https://chenoafund.org/hud-mortgagee-letter-2019-06/
2. We are also asking for the stories of any borrowers who have been
directly affected by this letter. Please send us any information you are able
to about borrowers who have been affected by this sudden change,
whether it’s their story, or their contact information so we can reach
out. We will be using this to strengthen our case, and show the negative
impact the Mortgagee Letter has had.
3. If you have suspended our program until the mortgagee letter is
withdrawn, please send that to us in writing, so we can show the number
of companies and people that this is affecting.

61. Important CBC Mortgage Agency Contacts
Information and questions
info@chenoafund.org
Portal Questions
submissions@chenoafund.org
Pricing Questions
locks@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

62. Conclusion