Yesterday, a Federal Judge in St. George, UT issued an injunction blocking HUD from implementing HUD Mortgagee Letter 2019-06. Details are still emerging, but CBC Mortgage Agency, the plaintiff, will continue its mission to serve low-to-moderate income homebuyers achieve the dream of home ownership.
Mortgagee Letter 2019-06 would have forced CBC Mortgage Agency to lend only on tribal lands or to tribal members, so this injunction allows them to follow their federal charter and lend throughout the United States. The ruling precedes a deadline of July 23rd previously set by the court and HUD to implement the Letter. With the injunction, HUD will be obligated to insure properly-underwritten FHA loans issued by CBC Mortgage Agency indefinitely.
CBC Mortgage Agency, a federally-chartered housing finance agency, offers the Chenoa Fund, a program that provides a 96.5% 1st mortgage and a 3.5% 2nd mortgage on FHA Loans. Lenders use our program like they would their local, municipal housing program to give more options to prospective homebuyers regarding down payment assistance. If you have questions regarding this program, call Shawn King at 208-991-8239 or email shawn.king@chenoafund.org
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