Contract - Indiana Housing and Community Development Alliance - Housing Counseling Support

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conventional mortgage that is owned or guaranteed by Fannie Mae or Freddie Mac — counselor will verify this by checking the GSE's web look -up tools; (c) the client is current on mortgage (client hasn't missed more than one payment in the last 12 months and has not missed any payments in the past 30 days); (d) the client must have a source income; and (e) the refinance improves the long-term affordability or stability of the loan. b. Modification. Contractor must determine and document eligibility by requesting information and analyzing if: (a) the mortgage Ioan 'is a first lien mortgage loan originated on or before January 1, 2009; (b) the mortgage has not been previously modified under the Home Affordable Modification Program ("HAMP"); (c) the borrower has experienced a hardship that has caused the mortgage loan to become delinquent or default is reasonably foreseeable; (d) the property securing the mortgage loan is not vacant or condemned; (e) the mortgage Ioan is secured by a one- to four - unit property, one unit of which is the borrower's principal residence; (f) if client's front end debt -to -income ("DTI") ratio is greater than 31 %; and (g) the current unpaid principal balance of the mortgage is less than $729,750.00 for a one -unit property, $934,200.00 for a two -unit property; $1,129,250.00 for a three -unit property; and $1,403,400 for a four -unit property. c. FHA Loans. Contractor must determine and document eligibility by requesting information and analyzing if. (a) the client is the owner of a one- to four -unit home; (b) the client has income sufficient to support the new mortgage payments; and (c)) the client has surplus income that is not more than 15% of his or her net income. d. Short Sale and Deed -In -Lieu. Contractor must determine and document eligibility for the Home Affordable Foreclosure Alternatives (HAFA) program by requesting information and analyzing if. (a) client is or has been the owner occupant of a one to four -unit property sometime during the last 12 months; (b) the homeowner has not purchased a new property within the last 12 months; (c) because of a financial hardship, the homeowner is delinquent or default is reasonably foreseeable (for Service Members, this may include a Permanent Change of .Station (PCS) order); (d) the mortgage loan is a first lien mortgage loan originated on or before January 1, 2009; (e) the current unpaid principal balance of the mortgage is less than $729,750 for a one - unit property, $934,200 for a two -unit property; $1,129,250 for a three -unit property; and $1,403,400 for a four -unit property; or (f) the borrower has either been evaluated for a modification but is not eligible or has been informed that modification may be an option and has elected to pursue a short sale or deed -in -lieu instead. When reporting for Level One counseling activities, all seven of these eompleted documents must be in the client's file: intake, authorization, disclosure, privacy policy, budget, Action Plan, and MHA eligibility determination. 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 cannot receive payment for a client until after all the required actions for the level have occurred and have been documented accordingly. {00028595-1} Page 25 of 39