reminder: appraisal and second mortgage document requirements

CHFA Home Finance is issuing this reminder due to continued post-closing and purchase review findings. Please review the requirements below as failure to comply may result in CHFA declining to purchase a loan.

Appraisal Requirements

• An appraisal is required for all CHFA loan purchases.
• Appraisal waivers and automated valuation models (AVMs) are not permitted for loan purchase transactions, regardless of AUS findings.

CHFA DPA Second Mortgage: Required CHFA Forms

• Participating Lenders must close using CHFA-approved documents that come from either (1) CHFA’s systems or (2) a CHFA-approved document preparation company. These documents are:
  • CHFA Form 307 – CHFA Subordinate Note
  • CHFA Form 314 – CHFA Subordinate Deed of Trust
• Participating Lenders may not use second mortgage documents that do not come from either of these two sources.

Participating Lenders are encouraged to review their own and CHFA’s internal workflows and document preparation systems to ensure compliance prior to closing. For additional details, see CHFA Seller’s Guide, Chapter 7, Loan Purchase Procedures.

If you have questions, please contact your CHFA Business Development Specialist or the CHFA Home Finance Team.

CHFA Home Finance
Homeownership@chfainfo.com
888.320.3688 - Homeownership Team