critical: fees on new delivery and purchase procedures

• The Lock Period remains 60 calendar days from the date of Lock through the Lock Expiration date.
• Participating Lenders must close the Mortgage Loan, deliver all required documents to CHFA for review, and have the loan purchased by CHFA prior to or on the Lock Expiration date. Please submit prior to holidays and weekends, as we do not review documents on these days.
• If a Mortgage Loan has not been delivered and remains in reserved status upon the Lock Expiration date, the Lock will automatically be canceled on day 61.
• If a Mortgage Loan is in reserved status and additional time is needed, the Participating Lender may manually extend the Lock for 10 days, provided the extension is submitted by or on the Lock Expiration date. A 10-Day Lock Extension Fee of 0.125 percent of the Original Principal Balance of the First Mortgage Loan will be assessed. Please use HomeConnectionsm to manually extend the Lock.
• The Participating Lender may continue to manually extend if the Lock remains in reserved status, and it is extended prior to the Expiration date. Note, automatic cancelation occurs the day after the 10-day extension if another extension has not been initiated by the Participating Lender.
• Canceled Locks may be reinstated or relocked following the policies found in Chapter 4, Section 407.C of the CHFA Seller’s Guide.
• If a Mortgage Loan has been delivered, but not approved for purchase due to missing and/or incorrect documentation by the Lock Expiration date, CHFA will automatically charge the Participating Lender a 10-Day Lock Extension Fee of 0.125 percent of the Original Principal Balance of the First Mortgage Loan providing an additional 10 days for the Participating Lender to have the loan purchased by CHFA.
• Once a loan has been delivered for purchase, the 10-Day Lock Extension Fee will be assessed and reoccur automatically every 10 days until the loan is purchased, with a maximum of six extensions. With each extension, a new Lock Letter will be generated indicating the new Lock Expiration date, as well as a Loan Extension Notice indicating the new Lock Expiration date and the fee assessed.
• Regardless of status and after the sixth assessment, on day 121, the loan will be automatically canceled.
• A Lock canceled at day 121 may be reinstated. However, reinstatement will be at the discretion of CHFA’s Secondary Marketing Department, and a Rate Adjustment Fee may be assessed.

• A streamlined fee structure, eliminating the Cancellation Penalty, 30-day Extension Fee, Suspension Penalty, and Loan Delivery Extension Penalty;
• Sufficient time for CHFA to review files and meet turn-times; and
• Adequate time for Participating Lenders to have Mortgage Loans approved and purchased.

• CHFA must receive all final documents within 120 calendar days after CHFA purchase, otherwise a Final Document Late Fee is assessed. The Final Document Late Fee will increase from $150 to $250 and be assessed at day 121. Thereafter, a fee of $150 will be assessed every 31 days until the loan is in Post-Closing Complete status

• CHFA must have evidence a Mortgage Loan is insured. A Mortgage Insurance Certificate (MIC) or Private Mortgage Insurance (PMI) Fee of $150 will be assessed on day 31 if the MIC or PMI required documentation has not been received. Thereafter, a fee of $150 will be assessed every 31 days until the condition has been cleared.