Contract - IHCDA - Mortgage Foreclosure Prevention Counseling

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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 services 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 Ievel have occurred and have been documented accordingly. Maximum Pavout: If the client has 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 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 I and Level 2). Level 4a and Level 4b services are the Making Home Affordable Program substitutes for Level 1 and Level 2 services, respectively, and as such, the Contractor is never eligible to receive any combination of Level 1 and 2 fees with Level 4a and 4b fees. Termination of Counseling: The Contractor must document every termination of counseling. Termination occurs or may occur under any of the following conditions: 1. Counselor has made three attempts to contact the client, issued an "Unable to Reach" letter, and has not heard back from the client within 31 days of the date the letter was issued; 2. Client meets his or her housing needs or resolves the housing problem; 3. Counselor determines that further counseling will not meet the client's housing needs or resolve the client's housing problem; 100028595-11 Page 32 of 39