The document outlines the legal challenges against HUD's mortgagee letter 2019-06, which CBC Mortgage Agency argues was issued unlawfully and has caused confusion in the industry. CBC has filed for a restraining order to block the policy and seeks political support to ensure responsible down payment assistance policies are implemented. Additionally, the document provides details on CBC's Chenoa Fund and the various FHA products offered for down payment assistance, as well as important contact information and document requirements for lenders.

1. CBCMA Training
Series #5:
Final Docs & Servicing
FHA Product Line

2. 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withdrawn, please send that to us in writing, so we can show the number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.

3. Chenoa Fund by CBC Mortgage Agency:
General Overview
• Chenoa Fund is the program name for CBC Mortgage
Agency’s suite of down payment assistance products.
These products are offered to borrowers in the form of
second mortgages.
• The programs are allowed in all states except New York.
• All programs offer 3.5% for the second mortgage. Up-
front fees are limited only by the 3% points and fees
rule.
• The first mortgage must be sold to CBC Mortgage
Agency.
• At the time you sell your first mortgage to CBC
Mortgage Agency, the down payment funds you
advanced are reimbursed.
• Your underwriter underwrites the file.
• Approved property types include SFR, PUD, Townhome,
Condo, Attached, Detached, and Modular Homes.
• No Manufactured Homes.
• HPML (Rebuttable Presumption) is allowed, but no High
Cost Mortgages.

4. 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.

5. FHA Second
Mortgages:
The Rate
Advantage
Program

6. • 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

7. FHA Second
Mortgages:
The DPA Edge
Program

8. • 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)

9. • 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)

10. 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

11. 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.

12. 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.

13. Final Docs

14. • Final Docs do not handle conditions.
Conditions questions should be directed
to our Purchase Clearing department.
• CBCMA’s Final Docs department handles
trailing documents, collateral, FHA, and
MERS.
• General questions can be emailed to
finaldocs@chenoafund.org.
Important Reminder

15. The following are the Chenoa Fund IDs.
1. FHA ID: 9413-00000-8
2. MERS ID: 1012881
3. NMLS ID: 1186381
4. Tax ID: 46-2780478
Important IDs

16. • For collateral and trailing documents,
please send to
CBC Mortgage Agency
Attn: Post-Closing
912 W. Baxter Dr.
Suite 150
South Jordan, UT 84095
• Title policies and Mortgage Insurance
Certificates can be emailed to
finaldocs@chenoafund.org
Shipping Addresses

17. Trailing Documents are required within
120 days of loan purchase.
• First Lien Mortgage Deed
• Second lien Deed
• Title Policy
Document Requirements – Trailing Docs

18. Insuring Documents are required within
60 days of loan purchase.
• Mortgage Insurance Certificate
Note: We do not have the ability to pull these
from FHA Connection like most other
investors.
Document Requirements – Insuring Documents

19. Collateral Documents for both first and second
lien loans are required prior to the purchase of
the loan:
• 1st Lien Collateral Documents –
1. Bailee Letter
2. First Lien Note (must be original wet signed)
3. Allonge to Note (must be original wet signed)*
• 2nd Lien Collateral Documents –
1. Second Lien Note (must be original wet signed)
2. Allonge to Note (must be original wet signed)*
*Unless Note is stamped endorsed.
REMEMBER: All information on the allonges must
match the note exactly, or we will request a
correction, which will delay the purchase of a loan.
REMEMBER: Please also avoid using stamped
endorsements on the back of the note whenever
possible.
Document Requirements – Collateral Documents

20. • If the loan is done as a reverse bailee, we
can fund the loan using the bailee letter
without having the original note.
• Even so, we require the original note to
be delivered to us within 3 days of the
funding date.
• Reverse bailees are accepted, but our
department will need prior notice. Send
that notice to Mat LaMunyon before you
ship the bailee letter.
• We do not prefer reverse bailees, and will
always work to shift to a forward bailee
process.
Document Requirements – Reverse Bailees

21. • We no longer accept assignments for the
second liens as of November 2017.
• 1st and 2nd lien MINS are required on all 1st
and 2nd Lien notes and Deeds.
• The same MIN must be the MIN that is also
registered within MERS.
• The 1st and 2nd Lien MINS cannot be the
same number.
• Both MINS must be transferred (via
TOS/TOB) to CBC Mortgage Agency
within 72 hours of the purchase of the
loan to remain within compliance with
CBCMA.
• CBC must be the investor and the servicer
within MERS for all loans we purchase. The
second lien MIN must be registered as a
“Second Lien MIN” within MERS with the
correct lien amount.
• For more information, visit
http://members.mersinc.org
Document Requirements – MERS

22. • Mortgage record changes must be
completed within 15 days of the
purchase date. Please transfer the
Holder rights within FHAC upon
insuring the loan, and send the
Mortgage Insurance Certificate to CBC.
• CBC only requires the Holder Rights to be
transferred to us. CBC is not an
authorized servicer within FHAC.
• Once we have sold the first lien to our new
investor and transferred holder rights to
them, they will pull the servicer rights from
our correspondents’ names and into their
own. If there is a delay on this for any
reason, please email
finaldocs@chenoafund.org for assistance.
Document Requirements – FHA

23. Servicing

24. • Our 2nd Mortgagee Clause is
CBC Mortgage Agency
ISAOA ATIMA
912 W. Baxter Dr.
Ste. 150
South Jordan, UT 84095
Note: This is only necessary for amortized
loans.
Address

25. Send Second Mortgage Payments to this address if the
loan is amortized.
Second Mortgage Payment
Address
Statebridge Company, LLC
Attn: Payment Processing
PO Box 173313
Denver, Colorado 80217-3313

26. Send Second Mortgage payments to this address if the
loan is soft.
Urgent Overnight Mail
CBC Mortgage Agency
912 W Baxter Drive
Suite 150
South Jordan, UT 84095
866 563-3507 extension 0

27. Until further notice, send First Mortgage payments to this
address.
1st Mortgage Payment
Address
CBC Mortgage Agency
Attn: Loan Servicing
10400 Overland Road
PMB #403
Boise, ID 83709
• CBC Mortgage Agency sells first
mortgages to investors following the initial
close.
• As such, CBCMA don’t always service
first mortgages.
• Since CBCMA utilizes a short term interim
service plan, 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
Good-Bye Letter from CBC Mortgage
Agency when their first lien has been
sold.
Servicing Line
866-563-7572

28. Reminders
• First and second mortgage
payments are not
combined. Please impart
this understanding upon
your borrowers.
• Our hours of operation are
8:00 AM – 6:00 PM MT,
Monday through Friday.

29. 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.

30. 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

31. Conclusion