URGENT MESSAGE

In an effort to address the recent increase in Bank Owned/REO properties and lessen the documentation associated with these loans; CHFA is making an immediate change to our requirements.

In connection with Bank Owned/REO properties, CHFA will rely on the title insurance company to assure that the chain of title is correct and that the Warranty Deed is properly executed by a person with authority to execute it. The Lender will not be required to provide separate or independent verification of the chain of title.

The CHFA Form 404, Seller’s Affidavit must be signed by the Seller or an authorized agent of the Seller. The signor must designate their capacity to sign on the CHFA Form 404, Seller’s Affidavit. If the Seller’s Affidavit does not indicate the signer’s title or agency, showing in what capacity they are signing, then independent proof of capacity is needed, such as a power of attorney, current resolution, or letter from an officer of the company on company letterhead authorizing the person to sign documents related to the sale of the Property on behalf of the company.

Except as described above related to Bank Owned/REO properties, CHFA’s normal rules regarding signatures on the CHFA Form 404 remain unchanged.

CHFA strongly cautions the Lenders to make certain that authorizations are not being altered after they have been signed, unless the signor has initialed and dated the change. CHFA will not accept documents that have been altered without the knowledge and consent of the person signing the document.