Recent Updates:

CBC Mortgage Agency Announces Sale of 1,500 Chenoa Fund Second Mortgage Loans through Innovative CRA Note Exchange Program

For immediate release
September 27, 2018
Contact: Doug Elmets
(916) 329-9180

Cedar City, Utahb> – CBC Mortgage Agency (CBCMA) is pleased to announce the sale of 1,500 Chenoa Fund second mortgage loans through its innovative CRA Note Exchange, a secondary market for public purpose entities to raise capital by selling paper to investors and banks striving to meet their Community Reinvestment Act (CRA) goals.

“By creating liquidity for down payment assistance loans, we are able to bring down costs to the borrower, both in terms of the first mortgage interest paid and overall monthly payments,” said Richard Ferguson, President of CBCMA. “The web-based exchange has been overwhelmingly successful at facilitating the sale of second mortgage loans to depository institutions seeking to augment their CRA loan portfolio.”

CBCMA has launched the innovative CRA Note Exchange Program. The CRA Note Exchange is an online portal that allows finance agencies to list CRA-eligible mortgage loans that meet geographic and/or borrower qualifications for favorable CRA consideration.

“We look forward to continuing to increase affordable, responsible and sustainable homeownership while offering new opportunities for banks in need of CRA credits,” said Ferguson.


CBCMA is owned by the Cedar Band of Paiute Indian Tribe of Utah. As a HUD-approved Title II Government Lender, CBCMA operates the Chenoa Fund, a down payment assistance secondary financing program. CBCMA’s mission is to increase affordable and sustainable homeownership, specifically for credit-worthy low and moderate-income individuals.

Chenoa Fund Launches Conventional Loan Program

New offering provides borrowers with 97% LTV conventional mortgage financing

For immediate release
June 7, 2018
Contact: CBC Mortgage Agency

CEDAR CITY, UT – In a significant expansion of its offerings for homebuyers, CBC Mortgage Agency (CBCMA) has launched a program that provides eligible borrowers with a conventional loan coupled with a low-interest second mortgage that can be used to cover down payment and closing costs.

Known as the Chenoa Fund Conventional Loan Program, the initiative is a 3.5% second mortgage, which can be used for closing costs and the 3% down payment requirement for 97% LTV conventional mortgage financing. This assistance is offered through Fannie Mae's HomeReady program for low to moderate income borrowers, with expanded eligibility for homes in low-income communities. For those borrowers who do not fit the HomeReady criteria but may not have the resources for a larger down payment on a home purchase, CBCMA offers Fannie Mae's Standard 97% loan-to-value program.

The borrower receives a market competitive interest rate on the first mortgage. The Down Payment Assistance is repaid over 10 years through an affordable second, priced at 8%.

Chenoa Fund is an affordable housing program funded by CBCMA, a federally chartered government agency. CBCMA's mission is to increase affordable and sustainable homeownership, specifically for credit-worthy, low- and moderate-income individuals. CBCMA specializes in providing financing for loans under the guidelines of FHA and Fannie Mae and partners with quality mortgage lenders on a correspondent basis.

How does a borrower qualify for the Chenoa Fund HomeReady program?

To qualify for the Chenoa Fund Conventional Loan Program, borrowers must meet program criteria, including:

  • A minimum FICO of 640
  • No income limits in low-income census tracts, 100% of area median income (AMI) for all other properties
  • There are no income limits under the Standard 97% LTV program

Why was the Chenoa Fund Conventional Loan Program created?

Homeownership isn't for everyone — but housing is. By helping credit-worthy families overcome barriers and buy homes, our program reduces competition for rental housing, thereby decreasing its cost and increasing its availability for families who don't qualify for our direct assistance.

Other Chenoa Fund Down Payment Assistance Programs

CBCMA has long been known for its unique down payment assistance programs for borrowers receiving an FHA first mortgage. Offerings include:

Chenoa Fund Edge Program: With this program, borrowers receive a 30-year term, 0% rate, no payment second mortgage. Borrowers must meet a minimum FICO score of 620 and report a qualifying income that is equal to or below 115% of the median income for the county in which they will live. The loan is forgiven once the borrower makes 36 consecutive on-time payments on the original FHA first mortgage.

Chenoa Fund Repayable Second Program: This program carries no income restrictions and offers two options for a repayable second mortgage – a 10-year repayable second at 0% interest rate or a 30-year repayable second at 5% interest rate. Borrowers must meet a minimum FICO score of 620.

Chenoa Fund Rate Advantage Program: This alternative allows borrowers to lock in their first mortgage at a market comparable rate. Borrowers must meet a minimum FICO score of 620, have a debt-to-income ratio of 50% or less, and have a qualifying income equal to or less than 115% of the median income for the county in which they will live. The down payment assistance is repaid over a 10-year period at 8%.

Expanding access to affordable homeownership

Innovative program offered by CBC Mortgage Agency helps qualified buyers overcome the down payment barrier and purchase a home

For immediate release
Nov. 15, 2017
Contact: Matt Petit

CEDAR CITY, UT – Seeking to provide more Americans with access to affordable homeownership, the CBC Mortgage Agency (CBCMA) has launched an innovative program for buyers who have the income and credit history to purchase a home but lack sufficient funds for a down payment.

Known as Rate Advantage, the program is the first of its kind in the lending industry. Complimenting other options available through CBCMA’s Chenoa Fund, it expands choices for qualified borrowers pursuing the substantial economic and social benefits of owning a home.

Rate Advantage addresses regulatory concerns raised by other down payment assistance models while enabling borrowers to enjoy significant cost savings.

“Buying a home is a cornerstone of the American Dream, and we have developed this new program to help more credit-worthy buyers make homeownership a reality for themselves and their families,” said Richard Ferguson, president of CBCMA. “Rate Advantage is an important tool to help borrowers clear the down payment barrier and achieve homeownership in a responsible, sustainable way.”

Under the program, borrowers who meet CBCMA’s credit score and debt-to-income requirements can obtain a market rate first mortgage FHA loan coupled with a repayable second mortgage for the down payment. Compared to other methods of providing down payment assistance, the Rate Advantage package results in significant monthly payment savings for borrowers.

CBCMA continues to offer an alternate avenue for qualified buyers, the DPA Edge Program. Under this approach, eligible borrowers can apply for a forgivable second mortgage to cover their 3.5% minimum down payment requirement when purchasing an FHA-insured home.

“Our goal is to provide home buyers with multiple assistance options to increase the likelihood of homeownership success,” Ferguson said. “We believe that by helping responsible homebuyers meet the down payment investment required for a mortgage, we can create healthier communities by improving the balance between homeownership and other housing types. That benefits our entire economy.”

To help its borrowers sustain homeownership, CBCMA recently entered a partnership with HLP, a Baltimore-based nonprofit, to provide post-purchase outreach and financial education. Under the initiative, a HUD-approved housing counselor gives homeowners targeted financial advice to help them make mortgage payments on time.

Homeownership rates fell precipitously over the last ten years, and the decline was steepest among minority households, millennials and single-parent households. Because of recent lending restrictions, there is a need for programs like Rate Advantage – home financing tools to help buyers who have good credit and a responsible debt burden, but who have been unable to save enough for a down payment.

Along with Rate Advantage, CBCMA has launched a website ( that allows banks in need of credits under the Community Reinvestment Act to purchase second mortgage notes created under the new program. This site is intended as a portal for all holders of CRA-eligible Notes to create liquidity that will help government better serve communities most in need.

In a related action, CBCMA is inviting members of the National Council of State Housing Agencies to post Notes for sale on its website. The strategy is designed to enhance the new market of CRA-backed down payment assistance while fortifying state housing programs.

Founded in 2013, CBC Mortgage Agency is a nationally chartered Housing Agency. It is a subsidiary of the Cedar Band Corp., a federally chartered tribal corporation founded by the Utah-based Cedar Band of Paiutes. More information can be found at

Chenoa Fund

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