we're cutting the red tape
CHFA is pleased to announce even more changes to our home finance programs that will help streamline and standardize our review processes. They are in addition to the changes that were announced June 2, 2014.
Please stay tuned for further announcements this summer and fall, as CHFA continues to identify new ways that we can better align our programs with industry standards and eliminate unnecessary red tape and duplication. Thank you for being a CHFA Participating Lender.
Effective for new reservations made on or after June 30, 2014:
CHFA’s Program Compliance review will be streamlined on the CHFA Preferredsm, CHFA Advantagesm, CHFA SmartStepsm, and CHFA HomeOpenersm programs. Please remember that CHFA does NOT credit underwrite. It will be the Participating Lender’s responsibility to ensure all loans are underwritten and approved per the specific Fannie Mae or insurer/guarantor guidelines.
If the CHFA Risk Information Score Card (RISC) is required, a full Program Compliance review will be required to ensure the loan meets CHFA program requirements. Please utilize the
CHFA, Form 729, CHFA Risk Information Score Card (RISC) Submission Voucher if the Risk Information Score Card is required.
New versions of all Submission Vouchers will be available on our website Monday, June 30, 2014. Please ensure you are using the correct voucher, based on loan reservation date, prior to submitting in order to avoid any delays in CHFA’s review time.
The 06/14 versions of the Submission Vouchers are only to be used for submissions on loans reserved on or after June 30, 2014. Both, the new and the existing version of each voucher will be available on CHFA’s website and HomeConnectionsm until all loans reserved before June 30, 2014 have been purchased.
tiered pricing/lender credit
Effective with reservations made on and after June 30, 2014, CHFA is pleased to offer more pricing flexibility through a Tiered Pricing/Lender Credit on our SmartStep and HomeOpener products. Lenders will be reimbursed for the lender credit to the borrower of 1 percent or 2 percent of the total loan amount at the time CHFA purchases the loan. Such lender credit is for payment of borrower settlement charges.
Click here to register for a mandatory 15-minute webinar and gain access to these tiered pricing/lender credit products
HFA Exemption to Consumer Financial Protection Bureau (CFPB) Ability-to-Repay and Qualified Mortgage Rule
Finally, in an effort to continue to make mortgage loans accessible to low- and moderate-income households, effective with reservations beginning June 30, 2014, CHFA will take advantage of the Housing and Finance Authority (HFA) exemption which exempts HFA’s from CFPB’s and other federal agencies’ Ability-to-Repay and Qualified Mortgage Rules. We will continue to expect Participating Lenders to conduct a thorough underwriting analysis and document the consumer’s ability to repay the loans. Participating Lenders must adhere to applicable agency, insurer, and guarantor guidelines with respect to points and fees limitations. CHFA will continue to not purchase any loans that meet any of the HOEPA coverage tests applicable to High-Cost Mortgages (12 CFR 1026.32). To document compliance, CHFA Submission Vouchers will include a check box where Participating Lenders must confirm that total points and fees do NOT exceed the LOWER of allowable agency/insurer/guarantor guidelines or five percent (5%) of the total loan amount.