First Payment on CHFA Second Mortgage

This is a reminder for all Participating Lenders who are utilizing CHFA second mortgage loans for down payment assistance. The Participating Lender is the servicer of record at the time of closing for both the first and second mortgage loans until CHFA purchases the loans from your company. When completing CHFA Form 739, CHFA Interest Bearing Second Mortgage First Payment Letter, please use your company name and address to properly direct the borrower where to send the first payment for their second mortgage loan. Do not use CHFA's name or address on CHFA Form 739. When CHFA purchases both the first and second mortgage loans, we send a transfer of servicing letter to the Borrower indicating that monthly payments should now be sent directly to CHFA .

To expedite CHFA's purchase of the first and second mortgage loans and avoid your company having to take payments on the second mortgage loan, please make sure the purchase file is submitted to CHFA in a timely manner and is in a complete and purchasable condition. Please remember that every Participating Lender specifically agreed to these procedures when they executed the CHFA Mortgage Purchase Agreement earlier this year.

If your company is potentially unable to service the second mortgage loan for an initial period before CHFA purchases the loan, reservations in the second mortgage program will be restricted from your company.

Please circulate this announcement to all applicable staff within your company.Thank you for your cooperation and please contact us 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