CHFA Is Adhering To Its Reservation Policy

Due to the current financial market, CHFA is enforcing its Reservation Policy, as stated in the Seller’s Guide. Please refer to Chapter 4, Reservations, Sections 405 and 406 and Chapter 8, Servicing, Section 800 for specific information.

All Mortgage Loans must be Purchased prior to Reservation Expiration or the conclusion of any Grace Period, or the Mortgage Loan may be subject to a Late Delivery Fee or Reservation Expiration Fee. (Section 400, page 88)

The Participating Lender may request a Reservation extension at any point during the Reservation period, prior to the Grace Period. (Section 405, page 90)

When the Reservation expires, CHFA will automatically issue a Grace Period for up to thirty (30) days at the Reserved Interest Rate, not to exceed a total Reservation period of one hundred fifty (150) days. If the Mortgage Loan is not Purchased prior to the conclusion of the Grace Period, the Mortgage Loan will be subject to the Reservation Expiration Fee at Purchase (see Section 406). No extensions are allowed during the Grace Period or after its expiration. (Section 406, page 91)

If CHFA does not receive the Mortgage Loan file for Purchase prior to Reservation Expiration, the Participating Lender will be charged a Late Delivery Fee equal to one-quarter percent (0.25%) of the Mortgage Loan amount at the time of Purchase; otherwise, there is no fee associated with the Grace Period. (Section 406 A&B, page 91)

All Mortgage Loans must be Purchased by CHFA before the fifth (5th) scheduled Mortgage Loan payment. Mortgage Loans submitted for Purchase after the Servicing Deadline for the fifth (5th) month are ineligible for Purchase. (Section 800, page 110) Recently, CHFA has made exceptions to this last requirement for Participating Lenders who were unable to submit Mortgage Loans before the fifth (5th) scheduled payment. Due to current market conditions, CHFA can no longer make any exceptions beyond the standard Grace Periods.

Please contact the Home Finance division with any questions. 303.297.7376 or 1.888.320.3688; (970.241.2341 Western Slope Office)

Thank you,
CHFA Home Finance