Contract - Indiana Housing and Community Development Authority - DCI

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the client has reviewed the policy in the file Clients that choose to opt -out and not share their information with affiliated third -parties cannot be uploaded into the DCS for payment. 4. Documentation of DTI. Using the verified budget, the Contractor will calculate the back end DTI ratio. The back end DTI ratio is the ratio of the borrower's total monthly debt payments to the borrower's Monthly Gross Income. A standard for calculating back end DTI is included in the Counseling Protocol on the NFMC members' website. A document indicating the calculation must be in the file, as well as evidence of income and debt. A credit report is not sufficient to calculate the DTI ratio, as income must also be validated. S. Update on Verified Budget. Contractor will document borrower's ability to keep to crisis and/or long-term budget whichever was discussed during Level 4a counseling. This can include but is not limited to; new documentation to verify budget, mortgage statement or credit report showing timely payments to the trial modification or a copy of the client's permanent modifications dated after the initial Level 4a counseling session. 6. Status of Borrower's Modified Loan. Contractor must verify status of borrower's payment(s) on modified loan. Proof of this includes, but is not limited to, a current mortgage statement that details the status of the client's payments, communication from the servicer regarding the loan, or a copy of the credit report verifying the client's timeliness of payments. 7. Progress against Action Plan. Contractor must document borrowers' progress against the Action Plan developed during the first visit. Counselor notes or narrative could meet part of this requirement, as could a credit report pulled to ensure the client is paying their debt(s).on time. An updated crisis or long-term budget reflecting that the client is on track will also meet part of this requirement, but the Contractor must also address specific steps in the Action Plan and if the client has met them. If a narrative is used, it should be clear that it is pertaining to the progress against the Action Plan. In order to report a client as having received Level 4b counseling, the following documents must be in the file: authorization, disclosure, privacy policy, documentation of DTI, update on verified budget, status of borrower's modified loan, and progress against Action Plan. The Contractor must certify that all NFMC clients are owner -occupants of their homes at the time they receive counseling. By existing statute, NFMC clients must be owner -occupants of single-family (one- to four -unit) properties with mortgages in default or in danger of default. The Contractor is responsible for ensuring proper documentation exists in client files. The Contractor cannot receive payment for a client until after all the required actions for the level have occurred and have been documented accordingly. Maximum Payout: If the client has aback -end DTI ratio at or above 55%, the Contractor is eligible to receive a maximum payout of $450.00 (the sum of Level 4a and Level 4b fees). If the client does not have a back -end DTI ratio at or above 55%, the Contractor is eligible to receive a maximum payout of $450.00 (the sum of Level 1 and Level 2). {00024811-1} Page 32 of 39