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Information for Single-Family Lending and Real Estate Professionals
Program Announcement
October 30, 2024
Important: Covenant Homeownership Program Update
Dear Partners,
As you may notice in the news, a lawsuit has been filed in district court against the Covenant Homeownership Program.
We are well prepared to meet this challenge and will continue to operate the Covenant program as usual, unless there’s a court decision to the contrary. We encourage you to continue reserving loans under this program and reaching out to homebuyers.
To set your borrowers up for success, remember to:
1. Prepare your borrowers. Have all their paperwork and documentation in place to ensure a smooth closing. Be honest with them so they understand that up until closing there are no guarantees. —but that once the loan is closed, the home is theirs.
2. Check family histories with our staff. Gather your borrower’s documentation of family history and send it to us prior to going to contract so we can help you establish eligibility. This will save you time!
3. Close in 30 days or less. Do as much preparation as possible early on so your borrower can close quickly.
4. Have a backup plan. Put a financing contingency in place, and keep it in place all the way through closing.
5. Keep in touch. Be sure to read program announcements and check our Covenant page for FAQs and updates.
Again, we plan to continue the Covenant program while defending it in court. A decision could well be many months in the future. We will keep you posted of any changes.
Please understand that we won’t be able to discuss this lawsuit with you – but don’t hesitate to reach out to us with any questions about the program!
Thank you for your partnership in this important and historic program!
If you have any questions, please email Lisa DeBrock or Corinna Obar.