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lender frequently asked questions
 

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How will CHFA programs help my borrowers?

How does CHFA compensate lenders for the loans?

Does CHFA provide training classes for lenders?

What additional steps do I need to take to originate loans for CHFA borrowers?

I am having difficulty with HomeConnection - who do I call?

How can I correct the loan amount, property address, etc. or cancel a reservation on HomeConnection?

I forgot my user ID and password for HomeConnection - can I get a reminder?

How do I reserve a CHFA loan?

Does CHFA allow interest rate buy-downs?

Can a borrower get a CHFA loan with no cash investment?

Do CHFA programs require the borrower to make a minimum financial contribution into the purchase transaction?

Can borrowers use a non-occupant cosigner to add strength to their mortgage loan application?

When and how do I submit documentation to CHFA?

Can borrowers receive cash back at closing?

Can borrowers close with an interest credit?

What is the Recapture Tax?

What is CHFA's Federal Recapture Tax Reimbursement program?

How do I calculate the CHFA second mortgage loan amount?

How do I determine the CHFA second mortgage loan maturity date?

Which CHFA documents do I use for the different CHFA programs?

Does CHFA have a submission file order?

When does CHFA begin servicing the mortgage loan?

How do I contact the Home Finance Division?

How will CHFA programs help my borrowers?

By providing 30-year fixed rate mortgages, optional second mortgage for down payment and/or closing costs, affordable rates, and homebuyer education classes.

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How does CHFA compensate lenders for the loans?

CHFA provides a Service Release Premium in addition to the 1.0% origination fee collected by the lender. Other possible premiums paid to Lenders include the Non-Metro Premium, Program Premiums, Lender Premiums and the Second Mortgage Loan Premium as found in Chapter 6 of the Seller's Guide.

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Does CHFA provide training classes for lenders?

Yes; visit the training class schedule on our website or contact the Home Finance Division at 303.297.7376 or toll free 888.320.3688 for more information.

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What additional steps do I need to take to originate loans for CHFA borrowers?

Originating a CHFA loan entails a few easy steps in addition to standard processing practices. Visit the training class schedule on our website or contact the Home Finance Division at 303.297.7376 or toll free at 888.320.3688 to register for a training session.

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I am having difficulty with HomeConnection. Who do I call?

If you experience technical difficulties with HomeConnection (system error codes, unable to access the reservation system, etc.), contact CHFA's Home Finance Division at 303.297.7376 or toll free 888.320.3688.

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How can I correct the loan amount, property address, etc., or cancel a reservation in HomeConnection?

Lenders may edit the loan amount, property address, and other information in HomeConnection anytime prior to sending in the loan compliance file. From the main menu in HomeConnection, click on the “Pipeline” report tab, find the loan to be cancelled, then double click “edit”. From Loan Editor, you may edit the loan amount, property, borrower, co-borrower and other information. Make your changes and click "submit." If a Compliance file has already been sent to CHFA or if you need to change the CHFA program or loan type, lenders should use CHFA form 704 to correct the reservation and fax to 303.297.0947.

Lenders may cancel a reservation on HomeConnection anytime prior to sending in the loan compliance file. From the main menu in HomeConnection, click on the “Pipeline” report tab, find the loan to be changed, then double click “edit”. When the loan opens, the Cancel Reservation button is at the top left hand corner, above Loan Editor. Click on the cancel Reservation button, select the reason for cancellation and confirm that you wish to cancel reservation at the prompt.

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I forgot my user ID or password for the HomeConnection. Can I get a reminder?

Yes; in HomeConnection, go to the login page and click on "Forgot my Password" or "Forgot my Login Name." Then enter your login name or password and email address. Once your login or password and valid email address have been verified, you will receive an email containing your login or a temporary password. Once you receive that password, please log into HomeConnection and reset your password. For further assistance, call the Home Finance Division at 303.297.7376 or toll free 888.320.3688.

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How do I reserve the interest rate?

Participating Lenders may reserve the rate on HomeConnection for all CHFA programs. Lenders may reserve a rate once the borrowers have an accepted purchase contract.

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Does CHFA allow interest rate buy downs?

CHFA allows temporary interest rate buy downs. CHFA second mortgage loan proceeds may be used to partially or fully fund the temporary interest rate buy down. CHFA does not allow permanent buy downs.

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Do CHFA programs require the borrower to make a minimum financial investment?

Yes; the amounts are as follows:

a. $1000 for all mortgage loans.

b. $750 for typical CHFA HomeAccess loans, or if the Borrower elects to make mortgage payments through ACH, then it is $500.

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Can borrowers use a nonoccupant cosigner to add strength to their mortgage loan application?

No, CHFA does not allow cosigners nor non-occupant coborrowers.

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When and how do I submit documentation to CHFA?

Documentation is submitted to CHFA for compliance approval prior to loan closing and again after loan closing for loan purchase. Please contact the Home Finance Division at 303.297.7376 or toll free 888.320.3688 to schedule a training session.

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Can borrowers receive cash back at closing?

Lender should follow the underlying loan insurer/guarantor guidelines regarding allowable cash back to borrower at closing. Also verify that borrower has met CHFA’s required $1000 investment into the transaction. If excess cash at closing is a result of CHFA’s tiered pricing program (Lender Credits), that excess must be applied as a principal reduction.

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Can a borrower close with an interest credit?

No; CHFA will not purchase any loans closed with an interest credit.

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What is the Recapture Tax?

Please see the Recapture Tax page for a thorough description of this federal tax.

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What is CHFA's Recapture Tax Reimbursement program?

Please see the Recapture Tax Reimbursement page for a thorough description of this program.

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How do I calculate the CHFA Second Mortgage loan amount?

The CHFA Second Mortgage loan amount cannot exceed 3% of the total first mortgage loan amount. Borrowers are not required to use the maximum loan amount; they may use whatever exact amount is needed, up to the maximum. For example, if the first mortgage loan amount is $137,595, the maximum CHFA Second Mortgage loan amount is $4,127.85.

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How do I determine the CHFA second mortgage loan maturity date?

The CHFA second mortgage interest rate and maturity date is the same as for our first mortgage. The CHFA second mortgage loan term is 360 months, which is the same term as the first mortgage loan. For example, if the first mortgage loan maturity date is March 1, 2036, the CHFA second mortgage maturity date is March 1, 2036.

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Which CHFA documents do I use for the different CHFA programs?

CHFA provides electronic copies of all the documents required for each particular CHFA program. In addition, after reserving a loan in the HomeConnection system, CHFA documents and forms may be accessed in the HomeConnection system.

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Does CHFA have a submission file order?

Yes; when submitting loan packages, please use the appropriate submission vouchers and file order found on our website. (Programs and Forms).

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When does CHFA begin servicing the mortgage loan?

After CHFA has purchased a mortgage loan from a participating lender, CHFA will begin to service the mortgage loan. Please refer to chapter 8 in the Seller's Guide for Servicing Deadlines and dates.

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How do I contact the Home Finance Division?

To contact the Home Finance Division, please call 303.297.7376 or 888.320.3688.

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