eNews
06.15.2009
06.15.2009
Home Finance
IMPORTANT MESSAGE REGARDING Loan Compliance and Purchase Review: Please circulate this message amongst all staff
CHFA's goal is to be a safe, secure, affordable long-term financing solution for Colorado homebuyers. However, we can't do this alone. It requires a solid partnership with our Participating Lenders.In the spirit of partnership, CHFA is very concerned with the quality of the loan files submitted for Compliance Review and Loan Purchase. We understand that our partners are very busy and short staffed and the staff they have are stretched and pulled in many directions. However, cutting corners on the loan submission merely slows the speed at which CHFA can approve your borrower's loan which could delay loan closing or loan purchase, subsequently minimizing the Participating Lender's income and maximizing the penalties.
A few things that you should know:
- CHFA Loan Analysts will be unavailable during certain blackout periods throughout the day, but will return all emails and voicemails within 24 hours.
- Utilize Home Connection BEFORE calling CHFA as the primary source to view loan statuses, reprint letters, documents, etc.
- Due to the very high volumes of loans received, CHFA is reminding Participating Lenders that review time for Compliance is a minimum of three (3) business days from receipt of a complete file. Suspended and resubmitted loans will be delayed.
- Carefully review the CHFA Seller's Guide Chapter 5, Program Compliance Review and CHFA Form 700 the Submission Voucher. http://www.chfainfo.com/documents/Sellers_Guide.pdf
- Submitting a loan without the underwriter's approval and signature. CHFA is the FINAL approval on these loans AFTER the Participating Lender's underwriter completes the credit review.
- Incomplete appraisal, missing attachments;
- Incomplete purchase contract with all attachments and addenda and signatures from all parties (including the seller);
- Inaccurate AUS data entry and findings;
- Missing and/or incorrect Second mortgage Initial Truth In Lending and Good Faith Estimates.
CHFA is also seeing a sizeable increase in un-purchasable files. Again, reviewing incomplete files slows the process and can cause loans to potentially be assessed penalties. Additionally, CHFA is suspending a considerable number of files due to document preparation and closing errors. The most frequent Purchase suspend reasons are:
- CHFA First and/or Second Mortgage Note and Deed of Trust require modification (CHFA Form 205). The CHFA HomeOpener Second Mortgage is a thirty (30) year fixed rate loan at the same interest rate as the First Mortgage, so it matches the dates for the first payment and maturity as the First Mortgage.
- The Second Mortgage requires a First Payment Letter. This document is available through HomeConnection.
- Loans are submitted without Assignments. CHFA will be implementing MERS within the next 30 days to specifically correct this issue. Remember, if you are not a MERS lender or you originate through correspondents, CHFA will still require the intervening assignment.
- Proof of hazard and flood insurance (if applicable) and the subsequent Transfer of Hazard and Flood Letters.
- Copy of the Warranty Deed, which is critical if there are co-signors and/or there are more that one adult living in the home with not all of them being borrowers.
- Outstanding Compliance conditions, such as Homebuyer Education Certificates, final inspections, signed letters of explanation.
We appreciate your patience and cooperation as we work together through these busy times.
Please contact the Home Finance division 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
