CalHFA is proud to participate in the Standardized Subordinate Lien Document Project. Just as originators and investors of non-conforming mortgages use uniform Freddie Mac/Fannie Mae instruments, this initiative will bring a similar level of clarity, efficiency, and confidence to the legal documents securing DPA providers’ interests. We’re implementing these Freddie Mac and Fannie Mae approved standardized subordinate lien documents effective January 18, 2022 because they offer many benefits:
- Enhanced clarity for borrowers
- Increased speed to market for lenders
- Greater automation potential
- Reduced loan manufacturing costs and loan file deficiencies
- Potential liquidity opportunities
