Contract - IHCDA - Mortgage Foreclosure Prevention Counseling

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1. Authorization. If not already on file, Contractor must collect a signed authorization form from the client or have other legally -permissible client authorization on record that will allow the Contractor to (a) submit client -level information to the DCS for this grant, (b) allow IHCDA and NFMC to open files to be reviewed for program monitoring and compliance, and (c) allow IHCDA and NFMC to conduct follow-up with client related to program evaluation. Clients may opt -out of (c) above only, but proof of this must be retained in the client's file. Clients that opt out of (a) or (b) above cannot be uploaded into the DCS. Files uploaded in to the DCS without a signed authorization can create a legal liability, therefore the Contractor must ensure client files submitted to the DCS have a signed authorization form in the client file. Contractor is responsible for performing counseling within the limits of the laws in the State of Indiana. 2. Disclosure. Contractor must provide to all clients a disclosure statement. The disclosure statement must explicitly describe the various types of services the Contractor provides and any financial relationships between the Contractor and any other industry partners. The disclosure must state clearly that the client is not obligated to receive any other services offered by the Contractor or its exclusive partners. This must be presented to the client at the time of counseling. Proof that the client received the disclosure must be maintained in the file. Such proof can include a statement signed by the homeowner or an electronic signature, if applicable. 3. Privacy Policy.4 Contractor must provide to all clients a copy of its privacy policy. Proof that the client received the policy must be maintained in the file. Such proof can include a statement signed by the homeowner or an electronic signature, if applicable. Although it is a best practice to provide the client with the privacy policy at the time of counseling, the Contractor may elect to share the privacy policy after the counseling occurs. If that is the case, Contractor must keep on file proof that the policy was sent to the homeowner via e-mail, fax, or postal mail. Having access to the privacy policy on Contractor's website does not satisfy this requirement unless there is affirmative confirmation and documented proof that the client has reviewed the olic in the file. Clients that choose too t-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. 5. 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. It is acceptable for Contractor to combine the Authorization Form., Disclosure Statement, and Privacy Policy into a single document which the client signs and the Contractor maintains in the client file. {00028595-1) Page 31 of 39