Contract - IHCDA - Mortage Foreclosure Counseling

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4. Privacy Polia.l 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. Havin access to the rivac olic on Contractor's website does not satisfy this requirement unless there is affirmative confirmation and documented proof that the client has reviewed thenolicy in the file. Clients that choose toot -out and not share their information with affiliated third- arties cannot be a loaded into the DMS for payment: 5. Budget and Verification. Contractor must develop a budget for each client based on client's oral representation of their expenses, debts, and available sources of income. Contractor must engage in budget verification during which s/he reviews documented evidence provided by the client to establish true debt obligations (e.g., credit report), monthly expenses (e.g., monthly bills, bank statements, mortgage statement, credit card statement, utility bill) and spending patterns, and realistic opportunities for income (e.g., tax returns, pay stubs, profit and loss statement, third party verification). Note: a credit report alone does not satisfy the budget verification requirement. Contractor should collect verification of all income, expenses, and debt as stated by the client (must be within previous 30 days). A credit report alone does not satisfy the budget verification requirement. 6. Action Plan and Verification of Actions Taken. Contractor must develop a written Action Plan for follow-up activities to be taken by the client and review this Action Plan with the client. The Action Plan must be clearly labeled in the client file. When developing this Action Plan, it is expected that the Contractor will do a comprehensive analysis of the homeowner's situation and recommend a best plan of action. The Action Plan must include the counselor's assessment of the client's situation with a client -specific recommendation for a counseling plan of action, and should also include Client referral to relevant community services that may be of benefit to the Client. A general handout with a variety of workout options or "Actions" is not acceptable. If the assessment and recommendation are part of the counselor notes, IHCDA requires that the information is transferred to a form titled Action Plan so that the assessment and course of action are clearly defined for the client and for compliance testing. The National Industry Standards provide guidance on what should be included in an Action Plan. Contractor must have a conforming Action Plan in each client file. Contractor should take appropriate actions upon the steps outlined in the written Action Plan (created during Level One). Contractor must have documented evidence of "action" taken on behalf of the client. This requires more than the counselor's notes; it also requires documentation that the action took place. This could include, but is not limited to, the following: 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. f 00029857-1. } Page 22 of 29