There are a
lot of variables to consider when selling loans on the CRA Note Exchange, such
as the terms of the loan, the location of the property or the type of entity that
you sell to. For example, some
non-profits have 0% loans. They can expect to receive bids in a range of 60-85%
of the total remaining balance of the loan, while in some rare instances, banks
buy 0% interest rate loans at par or for the full balance.
There are two types
of fees you can expect to see when using the Exchange: (1) an upfront due
diligence fee; and (2) a backend success fee. Our team of seasoned
professionals will review, stack and supplement your loan documents in an
effort to get the best price possible for your loans.
Due
Diligence and Review:
For newly
originated loans (normally those originated on or after October 3rd,
2015): $195
Seasoned loans
(before October 3rd 2015): $595
Fees may also
vary depending on the type of documents that may need to be supplemented
Successful
Sale:
Upon a
successful sale, the Affiliate will be accessed a 4% fee on the total selling
price of the loan or loans.
Yes, commonly you are able to sell your loans while retaining the servicing rights. However, in some cases, the bidder may require you to sell the loans “servicing released” in order to garner the highest bid price.
In many cases the successful bidder of your loans will request a “life of the loan buy back provision” in the event your Borrower defaults. This life of the loan buyback provision not only makes your loan more valuable on the secondary market but also allows you to step in and assist your families if the loan becomes delinquent.
CBC Mortgage
Agency (CBCMA) is a Native-American, public purpose driven, subdivision of a
federally chartered tribal corporation, with a primary mission of fostering
responsible and sustainable home-ownership for low to moderate income borrowers
nationwide. CBCMA accomplishes this
mission by operating the Chenoa Fund which is an affordable down payment
assistance program (“DPA”) administered in the form of second mortgages on
either FHA insured loans or conventional loans. CBCMA partners with mortgage
originators on a Correspondent Lender basis to provide these loans for home
buyers. CBCMA created the CRA Note Exchange to create a platform to sell its
down payment assistance 2nd mortgage paper. As buyers have expressed
interest in all types of paper, CBCMA decided to open up the network to other
purpose driven entities to help create liquidity and further their missions.