We feel your pain! We really really do! We know that you and your companies are being impacted by overwhelming volumes, however CHFA is also being impacted by an extremely high suspense rate. Over 77% of the files delivered are being suspended - many suspended multiple times at both Compliance and Pre-Funding review because of incomplete files or attempting to clear suspended files one document at a time. Because of this high suspension rate, coupled with high volumes, CHFA Compliance review is currently taking four (4) business days.

Under our new guidelines, all incomplete files delivered to CHFA will be denied. CHFA is currently at a four (4) day review period for Compliance and a ten (10) day review period for Pre-Funding. If documents are missing from the file at the time of the file review, CHFA will deny the file for the missing documents. The file will not be reviewed until all missing documents are received. Once all the missing documents are received, the file will be put back into the rotation queue. The four (4) day clock restarts when all missing documents are received. Submitting an incomplete file will significantly delay your file's timely review and approval.

Please help yourself and your client by submitting complete files. This will expedite the review and approval process and avoid missed closings, and/or delivery or funding extension fees. If you correctly and accurately follow the document checklist on the appropriate voucher you will be submitting a complete file. All documents listed on the voucher must be submitted the first time you send the file to CHFA to avoid any additional delays.

Top Missing Compliance Documents:

1. Tax Returns (Remember, CHFA FirstStep and CHFA MCCs requires 3 years.)
2. Automated Underwriting System (AUS Findings.)
3. FHA Loan Underwriting and Transmittal Summary (LUTS HUD Form 92900-LT.)

Top Purchase Suspense Issues:

1. The CHFA Form 220 Tax Exempt Rider (CHFA FirstStep and CHFA FirstStep Plus) must be attached to First Mortgage Deed of Trust and the "Other" box is checked and references the Tax Exempt Rider. This box is located in the same section where the other Riders are marked. Do not attach the Rider to the CHFA Second Mortgage Deed of Trust when recording.
2. Provide itemization of Origination fees from line 801 of HUD 1 Settlement Statement.
3. Provide HUD-1A for CHFA Second Mortgage (with itemized breakdown of fees).
4. Make sure notary seals are legible. If a press seal is used, blacken the seal so it can be seen on a scanned copy of the document.
5. Provide all outstanding Compliance conditions.

CHFA can provide training to any Participating Lender’s operation’s staff. Please contact us to schedule training or with any questions.

303.297.7376 or 1.888.320.3688 Denver
970.241.2341 or 1.800.877.8450 Western Slope

Thank you,
CHFA Home Finance