CHFA eNews: Home Finance
chfa enews - home finance 
September 15, 2015

compliance with chfa interim servicing requirements

In an effort to address interim servicing deficiencies we’ve been seeing recently, effective Wednesday, September 16, 2015, CHFA will begin suspending loans for purchase if there are discrepancies on the payment history provided by a Participating Lender related to the borrower escrow account. CHFA will begin validating that the initial escrows from the HUD-1 are reflected on the payment history, and that all monthly mortgage insurance premium(s) due have been paid. Loans lacking evidence of compliance with these interim servicing requirements will be suspended until an updated payment history confirming such compliance is provided.

We will also require Participating Lenders to send proof of activation of the private mortgage insurance on all Conventional loans utilizing mortgage insurance.
 
For FHA loans, Participating Lenders must provide the FHA Case Details Results evidencing payment of all required monthly mortgage insurance premiums due, and any late fees, if applicable. If the Participating Lender has received borrower payments, CHFA will require this documentation prior to purchase. If the Participating Lender will be receiving a payment after purchase by CHFA, the FHA Case Details Results will be required for CHFA’s post closing review.

If you have questions or need additional information regarding this issue, please contact Cindy Bradley at 303.297.7367 or cbradley@chfainfo.com, or Nate Shultz​ at 303.297.7304 or nshultz@chfainfo.com.

CHFA Home Finance
303.297.7376 or 888.320.3688 Denver
970.241.2341 or 800.877.8450 Western Slope


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