Contract - IHCDA - Mortgage Foreclosure Prevention Counseling

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3. Authorization. Contractor must collect a signed authorization form from the client or have other legally -permissible client authorization on record that will allow organization 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 opt -out 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. 4. 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. 5. Privacy Poliey.3 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 policy in the file. Clients that choose to opt -out and not share their information with affiliated third -parties cannot be uploaded into the DCS for payment. b. Budget Verification. 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). Contractor should collect verification of all income, expenses, and debt as stated by the client (must be within previous 30 days). Note: a credit report alone does not satisfy the budget verification requirement; sources of income are also required to be retained in the client's file. 7. Documentation of DTL Using the verified budget, the Contractor will calculate the back end debt -to -income ("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 NFMC's members' website. A document indicating the calculation must be in the file, as well as evidence of income and 3 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 29 of 39