Contract - IHCDA - Mortgage Foreclosure Prevention Counseling

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Treasury Directive 13-08 now allows payments to be made to counseling agencies for providing post -modification counseling in certain circumstances; Clients that would previously have been resorted as "Level_ Four" should now only be reported as "Level Four" if they have a Government Sponsored Enti "GSE" loan or loan owned or euaranteed by the Veterans Administration "VA" the Department of A riculture's Rural Housing Service "RHS" or the Federal Housing Administration ("FHA"). If the Contractor participates as a referral agency that receives compensation for providing post -modification counseling for Fannie Mae or Freddie Mac it must not report those same clients as NFMC "Level Four" clients, Level 4 Counseling: Mahine Home Affordable/Post-Mitigation Counseling Borrowers with a trial loan modification or permanent loan modification under the Home Affordability Modification Program ("FIAMP") who need post -modification financial counseling and have a Government Sponsored Entity Loan, or loan owned or guaranteed by the Veterans Administration ("VA"), the Department of Agriculture's Rural Housing Service ("RHS"), or the Federal Housing Administration ("FHA") are eligible for Level Four counseling. If a borrower contacts the Contractor for counseling or is referred by a services or other agency, the Contractor will work with the borrower to submit an intake package to the servicer. This counseling must conform to Level One and Level Two counseling requirements. If the borrower does receive a trial loan modification or permanent loan modification under RAMP from a compliant loan source, the Contractor can provide the borrower with Level Four counseling, as described in the Counseling Protocol that can be found on the NFMC Program members' site. The Contractor cannot receive payment for a client until after all the required actions for the level have occurred and have been documented accordingly. Level 4a Counseling_ (Initial Making Horne Affordable Counseling) To qualify for a Level 4a payment ($300.00), the Contractor will be required to complete all of the following steps: 1. Verification of Client Loan Source. The Contractor must provide documentation that verifies the client's loan source is GSE, RHS, FHA, or VA. Documentation can include but is not limited to a screenshot from the Malting Home Affordable website loan look -up tool, or from .Fannie or Freddie's loan look -up tool. Additional tools for specific loan types can include but is not limited to: For VA loans, VA can research loans by using either the social security number or the loan identification number. Counselor can send an authorization form to obtain required documentation. ■ For FHA loans, a FHA Connection printout with loan information can be used. HUD-1 (Homeowner's HUD I will have this information) 2. Trial or Permanent Loan Modification Verification. Organization shall keep on file documentation that proves the client currently has a trial loan modification or permanent loan modification. This can include but is not limited to the trial modification agreement, or a letter (e-mail will suffice) from the servicer documenting the trial modification. {00028595-1) Page 28 of 39