compliance with chfa interim servicing requirements
In the course of conducting post-closing mortgage loan reviews, we have identified possible deficiencies with interim servicing of loans sold to CHFA.
As a reminder, per CHFA’s Mortgage Purchase Agreement, Participating Lenders agree to ensure that their staff members (and any third-party contractors) are knowledgeable about
mortgage loan servicing. They also agree that they have the ability to service mortgage loans, prior to CHFA’s purchase and servicing of the loans, in compliance with all
federal and state laws and regulations. The CHFA Seller’s Guide also requires the lender to provide interim servicing, including the payment of initial or upfront and any
monthly mortgage premiums due to the insurer or guarantor prior to purchase and servicing of the mortgage loan by CHFA.
In the coming days, CHFA will begin contacting those lenders for which interim servicing issues have been identified to discuss their processes and procedures, and to initiate
any needed reconciliation. Thank you in advance for working with us to address this matter.