Effective Date: 7/2/2018 Properly Handling …...Standard Operating Procedure Effective Date: 7/2/2018 Properly Handling Renovation Loans TABLE OF CONTENTS

Standard Operating Procedure

Effective Date: 7/2/2018

Properly Handling Renovation Loans

TABLE OF CONTENTS

OVERVIEW ............................................................................................................................................................. 3

RESPONSIBILITIES .................................................................................................................................................. 3

DEFINITIONS .......................................................................................................................................................... 3

BACKGROUND ....................................................................................................................................................... 4

SPECIFIC PROCEDURE ............................................................................................................................................. 4

ENCOMPASS SETUP AND TRAINING .................................................................................................................................... 4 CCM RENOVATION/CONSTRUCTION TEAM CONTACT INFORMATION ....................................................................................... 5 INITIATING THE LOAN/MANDATORY FORM COMPLETION ....................................................................................................... 5

Form Completion Best Practices ............................................................................................................................ 5 Form Completion ................................................................................................................................................... 9

SECONDARY MARKETING (LOCK DESK) ............................................................................................................................... 9 UNDERWRITING OVERLAYS ............................................................................................................................................. 10 CONFLICT OF INTEREST .................................................................................................................................................. 11 FASTTRACK CREDIT APPROVAL ........................................................................................................................................ 11 LOAN PRODUCT SETUP .................................................................................................................................................. 11

Useful Reference Materials .................................................................................................................................. 11 Checking (Selecting) the 203(K) Checkbox and Reno Indicator ............................................................................ 11 Non-Required Forms ............................................................................................................................................ 13

QUALITY CONTROL (QC) ................................................................................................................................................ 13 ORDERING THE APPRAISAL ............................................................................................................................................. 13 MAXIMUM MORTGAGE WORKSHEET (MMW) .................................................................................................................. 14 ALLOWABLE/REQUIRED RENOVATION FEES ....................................................................................................................... 14 CONTINGENCY RESERVES................................................................................................................................................ 15 FINANCEABLE MORTGAGE PAYMENT RESERVES .................................................................................................................. 16 ADDITIONAL DOCUMENTATION REQUIREMENTS ................................................................................................................. 16 CONTRACTOR VALIDATION PROCESS ................................................................................................................................. 17

Contractor/Builder Requirements ........................................................................................................................ 18 Owner/Contractors .............................................................................................................................................. 19 Contractor Re-Validation for a New Project ........................................................................................................ 19 Contractor Replacement Requirements ............................................................................................................... 19

CONTRACTOR REJECTED ................................................................................................................................................. 20 PROJECT REVIEW AND APPROVAL REQUIREMENTS .............................................................................................................. 20 CLOSING ..................................................................................................................................................................... 21 GOVERNMENT INSURING ................................................................................................................................................ 22 ACCOUNT SETUP .......................................................................................................................................................... 23 POST-CLOSE ADMINISTRATIVE SETUP AND COMMENCEMENT OF CONSTRUCTION ..................................................................... 23

Making Changes to Borrower Information .......................................................................................................... 23 Commencement of Construction ......................................................................................................................... 23 Customer Service ................................................................................................................................................. 24 Completion of Construction/Extension Information ............................................................................................ 24

DRAW PROCESSING AND FUNDS DISBURSEMENT OVERVIEW ................................................................................................. 25 Permissible Amount of Renovation Draws ........................................................................................................... 25 Draw Holdback .................................................................................................................................................... 25 Draw Processing and Funding ............................................................................................................................. 25

DETAILED DRAW REQUIREMENTS .................................................................................................................................... 26 Draw Disbursement Request/Authorization ........................................................................................................ 26



©2018 CrossCountry Mortgage, Inc. Page 2 of 31

Contingency/Change Orders ................................................................................................................................ 26 Lien Release Policy ............................................................................................................................................... 27 Title Update Policy ............................................................................................................................................... 27 Suspension of Construction .................................................................................................................................. 27

ESCROW CLOSEOUT/RECOURSE REMOVAL ........................................................................................................................ 28 SERVICING ................................................................................................................................................................... 28 LOAN DELIVERY ............................................................................................................................................................ 29

CONCLUSION ....................................................................................................................................................... 29

REFERENCES ......................................................................................................................................................... 30

INTERNAL REFERENCES .................................................................................................................................................. 30 EXTERNAL REFERENCES .................................................................................................................................................. 30

REVISION HISTORY ............................................................................................................................................... 31




OVERVIEW

The renovation loan products offered by CrossCountry Mortgage, Inc. (CCM), which include

HomeStyle® Renovation; 203K Standard; 203K Limited; and U.S. Department of Veterans

Affairs (VA) Rehab, as described within this standard operating procedure (SOP), offer a

convenient and economical means for borrowers considering home improvements for

repairs and renovations. This pertains to a single-close first mortage, rather than a second

mortgage, home equity line of credit (HELOC) or any other more costly method of financing.

CCM renovation loan products entail a single-close loan that enables a borrower to purchase

a home in need of repairs or refinance the mortgage on his or her existing home and include

the necessary funds for renovation in the loan balance.

The loan amount is based on the “as-completed” value of the home rather than the present

value.

All loans must adhere to the standard credit requirements as agency guidelines, and CCM

overlays must be followed (as listed within the Underwriting Overlays section of this SOP). If

an exception is necessary, it must go through the exception request process (see the CCM

Overlays & Exception Process document for further detail – link in the Internal References

section at the end of this SOP).

RESPONSIBILITIES

The content included in this SOP describes the roles and responsibilities of various CCM

employees regarding working renovation loans.

DEFINITIONS

Term Definition Conflict of Interest Any party to the transaction having a direct or indirect

personal, business or financial relationship sufficient to appear that may cause partiality and influence the transaction.

Contractor Acceptance Form A form documenting the review (or validation) of the contractor and reflects that contractor acceptance has been granted.

Home Equity Line of Credit (HELOC) A mortgage loan, usually in a subordinate position, which allows the borrower to obtain cash advances at his or her

discretion, up to an approved amount that represents a specified percentage of the borrower’s equity in a property.

Indemnification and Hold Harmless

Agreement

Agreement between two parties that establishes that the

indemnitee is protected from any liabilities that are unforeseen, as well as losses, claims and damages during involvement in an activity.

Mortgage Payment Reserve Additional funds on hold with the lender to cover a set amount of monthly mortgage payments.




Term Definition Project Validation Form A form providing a breakdown of amounts to pay out at

closing or to be held by the lender specific to the renovation project.

Recourse The obligation of the lender to cover losses the buyer incurs as a result of a default on the note. Under a whole loan transaction, a lender selling a mortgage to Fannie Mae under the “with recourse” servicing option assumes the entire risk of borrower default, while a lender selling a

mortgage under the “without recourse” servicing option transfers the risk of borrower default to Fannie Mae.

Security Instrument The instrument (mortgage, deed of trust and deed to secure debt) creating a valid lien on real estate.

Upfront Mortgage Insurance Premium

(UFMIP)

Specific to FHA loans, a borrower is required to either

finance or pay in cash the upfront mortgage insurance premium (UFMIP), which is payable to the Department of

Housing and Urban Development (HUD). These funds are used to protect the government should the borrower default on his or her FHA loan.

WebLGY An online system (portal) established by the VA for lenders to order and review appraisals, issue notices of value (NOVs), submit documents to the VA, insure loans (obtain VA Loan Guaranty) and obtain certificates of eligibility (COEs). Login credentials are obtained by contacting CCM IT Support via Salesforce.

BACKGROUND

In an effort to provide a more productive and streamlined approach to handling renovation

loans at CCM, a centralized Renovation Sales team was created. Benefits of forming this

centralized Renovation Sales team include specialized attention to all CCM renovation loans,

as well as borrower/client and realtor(s) relationships. Additionally, real-time, accurate

information is continuously being pushed out to all parties involved.

SPECIFIC PROCEDURE

ENCOMPASS SETUP AND TRAINING

When handling renovation loans, various CCM employees need access to certain screens

and fields within Encompass. Specific Encompass program setup is completed by a CCM

Renovation Sales team member and processor. See below for items in which the Renovation

Sales team member and processor set up/select:

• Program Name – select the appropriate program with the renovation program listed

• Closing Cost Template – select the closing cost template based on FHA, VA, USDA or

Conventional. There are no separate templates for the renovation programs

For greater, in-depth Encompass setup and process steps, review the Encompass Screens

Renovation Loans Input – Product Selection job aid, available on Salesforce Chatter and

only accessible by the Renovation team members.




CCM RENOVATION/CONSTRUCTION TEAM CONTACT INFORMATION

Please see link titled “Renovation Department Contact Listing (on Salesforce)” within the

Internal References section at the end of this SOP for a complete contact listing of CCM

Renovation/Construction team members, as well as contact email and mail addresses.

INITIATING THE LOAN/MANDATORY FORM COMPLETION

When a borrower requests pre-approval for a renovation loan or wishes to take the

application as a renovation loan, the CCM branch member completes all sections of the

Renovation Department Submission Form, except for the bottom portion (which states For

Renovation Manager Use Only). See screenshot below.

Note: This mandatory form is completed for all renovation loans (HomeStyle Renovation;

203K Standard; 203K Limited; and VA Rehab). It is also completed when a loan file needs

changed to a renovation product.

From here, the Renovation Sales manager assigns the loan file (as per property location) to

a Renovation Sales team member. The assigned Renovation Sales team member keeps the

originating LO/branch member up to date on the loan file progress.

FORM COMPLETION BEST PRACTICES

When completing the Renovation Department Submission Form, the CCM branch member

follows these best practices:




1. Provide the best borrower contact information by completing (in full) the following

fields:

• Borrower:

• Borrower Email:

• Borrower Home:

• Cell:

2. Complete the Notes: section. Include anything that the Renovation team should

know (i.e., for a HomeStyle Renovation, 203K Standard or 203K Limited loan, list

what the borrower is looking to complete with the renovation, etc.).




3. Complete the following fields with the proper information:

• Referring Originator:

• Date:

• Phone:

• Email:




4. Select one of the applicable checkboxes:

• Borrower(s) ready for contact

• Contact referring originator prior to contacting borrower




Once selected, the Renovation Sales manager gains access to the loan.

FORM COMPLETION

The steps below describe which CCM employee performs which action to complete the form:

1. An originating branch member completes the income, assets and credit information

within Encompass.

2. The Renovation Sales loan officer completes the rest of the loan file by reviewing it

and structuring it according to the type of renovation and costs associated.

3. The originating branch member then informs the borrower/client that the CCM

Renovation Sales loan officer will be contacting him or her.

SECONDARY MARKETING (LOCK DESK)

A CCM Secondary Marketing department (Lock Desk) member prices and locks renovation

loans via Optimal Blue (just the same as any standard loan).

When the file is locked (in Optimal Blue), the employee submitting for the rate lock (usually

the Renovation Sales loan officer) adjusts the sales price (in Optimal Blue) to equal the total

of lines a. and b. of the Details of Transaction section of the 1003 Page 3 within Encompass

(see screenshot below).




Note: Optimal Blue might push back the incorrect value or sales price to Encompass. If this

occurs, the Renovation Sales loan officer and/or Renovation processor will have verified the

accurate information and updates Encompass to reflect the correct value or sales price, prior

to disclosing, re-disclosing and/or closing the loan. The Renovation processor verifies the

system is accurate prior to submitting to the Underwriting department.

Note: Renovation loans are sold directly to the agency, as CCM does not sell to investors.

UNDERWRITING OVERLAYS

All loans must adhere to the standard credit requirements as outlined in the

specific agency guidelines. CCM utilizes the following overlays on renovation loan

products. If exceptions are necessary, the exception request process must be followed (see

the CCM Overlays & Exception Process document for further detail – link in the Internal

References section at the end of this SOP. Also see the CrossCountry Mortgage, Inc. VA

Rehabilitation/Renovation Loan Product Description/Underwriting Guidelines document – link

in the Internal References section at the end of this SOP).

• Minimum total loan amount with renovation amount included is $100,000

• No manual underwrites are permitted

• No “Do it Yourself” or “Self Help” is permitted (i.e., the borrower cannot do work

himself or herself; all work, including labor and materials, must be included in the

renovation bids)

• No more than three contractors per loan are permitted (general contractor and

two specialty contractors)

• Down-payment assistance (DPA) programs are not permitted with this program

• Mortgage Credit Certificate (MCC) programs are not permitted with this program

• There is a minimum of 10 percent contingency on all loans

• No co-op property types are permitted

• No manufactured home property types are permitted

• No conflict of interest is permitted

• A borrower must have a minimum credit score of 620

• The maximum debt-to-income (DTI) ratio is 55 percent




CONFLICT OF INTEREST

Conflict of interest refers to any party to a transaction who has a direct or indirect personal,

business or financial relationship sufficient to appear that may cause partiality and influence

the transaction. No conflict of interest is permitted to prevent one party from persuading

another party.

The borrower may not have a relationship with the realtor, contractor or seller, and may not

own or be employed by the contractor. The same applies to all parties of the transaction.

FASTTRACK CREDIT APPROVAL

FastTrack credit approval is permitted if an applicant knows he or she wants to purchase a

home to rehab. Encompass must be set up correctly so that the underwriter can apply the

correct overlays. The rehab amount is based on the applicant’s estimate. Please follow the

standard process for completing the Renovation Department Submission Form within

Encompass.

LOAN PRODUCT SETUP

USEFUL REFERENCE MATERIALS

A Renovation Sales team member sets up the loan file according to the information located

in the following reference materials, all available via Chatter but only accessible by

Renovation team members:

• Contractor Profile Report (also available in Encompass)

• Encompass Screens for FHA 203(K) Loan Input – Additional Screens

• Encompass Screens for HomeStyle Renovation Input

• Encompass Screens Renovation Loans Input – Fees/Itemization/DOT

• Encompass Screens Renovation Loans Input – Product Selection job aid

• Maximum Mortgage Worksheet (MMW)

• MI Job Aid for Renovation Loans

CHECKING (SELECTING) THE 203(K) CHECKBOX AND RENO INDICATOR

The 203(K) checkbox must be checked for all 203K renovation loans in order to promote

proper reporting and assignment. This checkbox is found on two different screens within

Encompass – the HUD-92900LT FHA Loan Transmittal screen (Mortgage Information

section) and the FHA Management screen. See screenshots below for both location

references.




Additionally, the Reno Indicator: checkbox must be checked for all renovation loans to

promote proper reporting and assignment.




NON-REQUIRED FORMS

203K loans do not require the following two forms to be completed:

• HUD 92800-5b (Conditional Commitment of Appraised Value)

• HUD 92300 (Mortgagee Assurance of Completion)

QUALITY CONTROL (QC)

The CCM Quality Control (QC) program provides for reviews of the following:

• Handling of rehabilitation escrow and disbursements

• Rehabilitation Loan Agreements

• Scope of repairs

• Timeliness of repair(s) completion

• Borrower complaints about quality

Also, CCM should conduct physical inspections on sampling of renovation loans.

In addition, the CCM QC Program clearly defines standards for the general contractor’s

performance. These standards must be provided to each contractor in which CCM relies on

in the renovation programs.

CCM evaluates and documents the performance of these general contractors on at least an

annual basis, to include a review of the general contractor’s actual work product. CCM does

not utilize the services of a general contractor who has demonstrated previous inferior

performance. Fraud or malfeasance is to be documented and reported to the individual

agency.

ORDERING THE APPRAISAL

The CCM Renovation processor orders an appraisal from one of the following dedicated

appraisal management companies (AMCs) for CCM renovation loans (note that Dwellworks

is CCM’s dedicated AMC, and the other two listed below are optional and permitted for

certain branches or reasons):

• AMC Settlement Services

• Collateral Management

• Dwellworks




Note: VA appraisals are only ordered via WebLGY.

The following items are uploaded to Mercury, the online ordering system for appraisals

(accessible via Encompass), for the appraiser’s review:

• Purchase agreement (indicating the loan is being handled as a renovation loan –

specific language is required)

• Construction/renovation bid

• Plans and specifications (specs), along with architectural drawings (as applicable)

• Contact information for the appraiser to access the property

• Credit card authorization or authorization from a manager to invoice

Note: A best practice is to order the appraisal once the bids are final.

MAXIMUM MORTGAGE WORKSHEET (MMW)

The Renovation Sales team member completes the applicable product Maximum Mortgage

Worksheet (MMW) to determine the maximum (max) loan amount.

Note: Currently, the MMW is available on Salesforce Chatter and is only accessible by

Renovation team members.

The renovation cost includes the following:

• Rehab cost

• Contingency reserve

• Title update fee

• Inspection fees

• Permit(s) cost

• Others

These are entered on the MMW. Refer to the MMW for allowable amounts.

Even if items are paid outside of closing, they need to be considered when calculating the

max mortgage amount. Seller- or lender-paid fees are not allowed to be calculated into the

max loan amount.

ALLOWABLE/REQUIRED RENOVATION FEES

The following table lists and describes CCM-allowable/required renovation fees:

Fee Description Title Update This fee is charged by the title company. A title update is necessary for each draw

to verify no mechanics’ liens or any liens were placed on the title between the CCM closing date and the date of final disbursement. The CCM Renovation processor

obtains a quote for the cost from the title company. This is a post-closing charge and will be reflected on the LE and CD. Note: This is part of the MMW calculator when calculating the max mortgage

amount.

Inspection This fee is charged by the appraisal company or consultant if one is used. It is for the inspections to verify all repairs are completed per the bids and that the

property meets minimum property requirements. The CCM Renovation processor obtains the “fee sheet” from the AMC or consultant. Note: This is part of the MMW calculator when calculating the max mortgage amount.




Fee Description Consultant When a Renovation consultant is utilized, he or she sends a work writeup with a

future inspection fee listed (held in escrow). He or she then provides a paid-in-full receipt for the writeup/initial inspection. This fee gets listed on the LE but will be

marked paid outside of closing (POC) on the CD. A consultant can be found by searching the online HUD site – https://entp.hud.gov/idapp/html/f17cnsltdata.cfm. Note: This is part of the MMW calculator when calculating the max mortgage amount.

Architect/Engineer When an architect/engineer is used, he or she provides an invoice or a paid-in-full receipt. If the cost is estimated and full plans are pending, this fee may be

estimated and held until an invoice is provided after closing. This fee is listed on the LE/CD and is marked POC on the CD if paid in advance. Note: This is part of the MMW calculator when calculating the max mortgage amount.

Permit This fee is charged by the county/city/governing entity for the contractor to begin

repairs and is payable to the contractor and borrower. The contractor lists the cost on the bid for the permit and who is responsible for payment. A permit disclosure may be used to provide the lender with the required information. If the costs are estimated, the funds may be held until requested by the contractor after closing. Note: This is part of the MMW calculator when calculating the max mortgage amount.

Supplemental Loan Origination

This fee is charged to the borrower and disclosed on the LE and CD as a lender charge. This fee (from the lender) accounts for the draw administration of the loan proceeds during renovation. The charge is different based on loan type:

• 203K loans – minimum is $350 and the maximum is $2,000; the calculation is included on the MMW

• HomeStyle Renovation loans – minimum is $500 and the maximum is $1,500; the calculation is included on the MMW

• VA Rehab loans – minimum is $500 and the maximum is $2,000; the calculation is included on the MMW

Note: This is part of the MMW calculator when calculating the max mortgage amount.

Two-Trip Survey This survey is required when there is any extension to be built onto the house that will exceed the original footprint. A two-trip survey occurs when one is done at

closing to verify the current footprint and no work is started; and then a second trip is completed after the foundation or footprint changes have occurred (this is typically done at first draw when the foundation is complete for the addition). The Renovation processor confirms with the title insuring agent for local requirements.

If fees are not disclosed correctly or are changed, there could be a cost to cure if not

completed as a proper change in circumstance. Any time the fees listed in the table above

change, the MMW needs updated, the max mortgage may change, and the need for re-

disclosure of fees may occur. Additionally, some fees are permissible, while others are not

(based on program type). Refer to the MMW as applicable to the product/program.

CONTINGENCY RESERVES

Contingency reserves refer to funds that are set aside to cover unforeseen project costs.

Please see the following concerning contingency reserves:

• 10 percent is the minimum required contingency on all renovation loans

• FHA 203K loans require a minimum of 15 percent contingency when utilities are

not on and not verified as functional

• May apply up to 15 percent contingency based on project review for HomeStyle

and VA Rehab loans




• May apply up to 20 percent contingency based on project review for 203K loans

• Contingency may be financed or non-financed (paid by borrower)

FINANCEABLE MORTGAGE PAYMENT RESERVES

A mortgage payment reserve refers to an amount set aside to make mortgage payments

when the property cannot be occupied during rehabilitation. A mortgagee may establish a

financeable mortgage payment reserve, so as to not exceed six months of mortgage

payments.

The mortgage payment reserve may include mortgage payments only for the period during

which the property cannot be occupied. To document the time the property will be

uninhabitable, the consultant and/or contractor provides the lender with a certification of

the property being uninhabitable and the estimated timeframe that it will remain as such.

The number of mortgage payments cannot exceed the completion timeframe required in the

Rehabilitation Loan Agreement, and never more than six months.

For multi-unit properties, if one or more units are occupied, the mortgage payment reserve

may only include the portion of the mortgage payment attributable to the units that cannot

be occupied. To calculate the amount that can be included in the mortgage payment

reserve, the mortgagee divides the monthly mortgage payment by the number of units in

the property and multiplies that figure by the number of units that cannot be occupied. The

resulting figure is the amount of the mortgage payment that will be paid through the

mortgage payment reserve. The borrower is responsible for paying the servicing mortgagee

the portion of the mortgage not covered by the mortgage payment reserve.

The Renovation specialist monitors all loans with mortgage payment reserves and requests

a draw to make the payment each month. Upon verification that the property can be

occupied, the remainder of the funds held are done so until completion and are to be used

to reduce the principal of the loan. The Renovation specialist notifies the borrower when

funds run out or if funds may no longer be used for payments.

The borrower is required to sign the Renovation Mortgage Payment Reserve Disclosure,

located within Encompass, which authorizes the establishment of the additional financed

escrow.

Note: This is only permitted on Fannie Mae HomeStyle Renovation and 203K Standard loan

programs.

ADDITIONAL DOCUMENTATION REQUIREMENTS

In addition to the standard disclosure package, the disclosures listed in the following table

are sent out on a renovation loan at various stages of the process. Also listed is when the

closure is provided, as well as any additional instructions.

Disclosure When Provided/Additional Instructions Welcome Letter for Borrower Initial disclosure package

Fannie Mae HomeStyle Renovation Consumer Tips (Form 1204)

Initial disclosure package (HomeStyle Renovation Loan Program only; borrower and loan officer must sign and

date)

203K Borrower’s Acknowledgement – HUD 92700A

Initial disclosure package (203K Loan Program only; borrower and loan officer must sign and date)

Renovation Loan Borrower Disclosure Initial disclosure package (borrower to sign and date)

Mortgage Payment Disclosure Once financed mortgage payments are determined, included in the hold (borrower and loan officer to sign and date)

Consultant Identity of Interest/Conflict of Interest Certification

Once consultant is assigned (consultant to complete, sign and date)




Disclosure When Provided/Additional Instructions W-9 for Consultant Once consultant is assigned (consultant to complete, sign

and date)

Welcome Letter to the Contractor Once contractor is selected

Contractor Conflict of Interest Certification (FHA Only)

Once contractor is selected (contractor to complete, sign and date) for 203K loans only

Contractor Acknowledgement Once contractor is selected (contractor to complete, sign

and date)

W-9 for Contractor Once contractor is selected (contractor to complete, sign and date)

Contractor Profile Report Once contractor is selected (contractor to complete, sign

and date)

Important Notice Regarding Contingency Funds

Once contractor is selected (contractor and borrower to sign and date)

Attestation Letter Once contractor is selected (contractor to complete, sign and date)

Permit Disclosure Once contractor is selected (contractor and borrower to complete, sign and date)

Homeowner/Contractor Agreement Once appraisal, contractor and bids are “acceptable” (contractor and borrower to complete, sign and date)

Rehabilitation Loan Agreement At or prior to closing (to be signed by borrower, contractor and lender) Note: All final numbers must be established to print form

Renovation Loan Rider At closing (signed by borrower and recorded with the security instrument)

Draw Request Form Once repairs are completed or for progress draws (post-closing)

Contingency Release Letter At time of final draw for 203K loans (post-closing)

Completion Certification/Mortgagor’s Letter of Completion

At time of final draw (post-closing)

Final Release Notice At time of final draw (post-closing)

HUD Form 9548-G “Property Disposition Program – 203K Rehabilitation

Financing Lead Agreement” (if applicable)

HUD REO properties (required prior to docs if applicable)

Hold Harmless Agreement (if required and exception approved by management)

If contractor does not meet CCM qualification and management grants an exception to use a specific contractor

CONTRACTOR VALIDATION PROCESS

The plans and specifications of the renovation project must be prepared by a registered,

licensed or certified general contractor, renovation consultant (i.e., registered 203K

consultant) or architect. Due to the complex nature of these loans, CCM only allows one

general contractor, renovation consultant or architect.

Note: CCM may allow up to one general contractor and two specialty contractors.

A borrower must choose his or her own general contractor to perform the necessary

renovations, subject to the lender’s determination that the contractor:

• Is qualified and experienced

• Has all appropriate credentials required by the state

• Is financially able to perform the duties necessary to complete the renovation

work in a timely manner

• Agrees to indemnify the borrower for all property losses or damage caused by its

employees or sub-contractors




The lender may not choose the contractor or refer the borrower to any one specific

contractor.

Note: The Contractor Profile Report (located within Encompass and on Salesforce Chatter,

only accessible to the Renovation Sales team) will be reviewed and accepted prior to

closing. The general contractor, renovation consultant or architect must provide the

following for review:

• The Contractor Profile Report (as mentioned in the above note) – must be

completed and signed by the general contractor and submitted to

[email protected] at the time of the loan application

• W9 Form – completed and signed

• Licensing and certifications – current contractor license information and, if state

license is not online, a copy of the current general contractor’s license, including

the expiration date and a satisfactory clearance from the appropriate licensing

authority (if required)

Note: If a contractor is in a local area that does not require licensing, the

homeowner, sub-contractor or supplier references must be checked. In addition,

any certifications the contractor has acquired should be provided.

• Special licensing requirement for lead-based paint – an automatic correction is

required to all defective paint surfaces in or on structures and/or property

improvements built before Jan. 1, 1978. Contractors performing the repair must

be certified and follow specific work practices to prevent lead contamination. A

copy of the EPA or state-lead training certificate in the name of the party who

performed the work must be provided

• Insurance – General Liability Certificate for at least $500,000; the coverage must

cover the loan amount

• Insurance – Worker’s Compensation insurance: evidence of Worker’s

Compensation insurance if the contractor has employees. If there are no

employees, a Certificate of Exemption (depending on state) or a letter from the

contractor stating he or she has no employees is required

CONTRACTOR/BUILDER REQUIREMENTS

The qualifications of the renovation contractor are evaluated to determine if he or she has

the requisite experience to perform and complete the proposed renovation work, as well as

the credit worthiness to pay his or her obligations and deliver the home free of mechanics’

or materialmans’ liens. The contractor information is gathered through a completed

Contractor Profile Report. The contractor’s determination of qualification is evidenced by a

completed Contractor Acceptance Form.

If the contractor is a recognized national or regional home improvement retailer providing

installation services (i.e., Home Depot, Lowes, Sears, 84 Lumber, Orchard Supply &

Hardware, etc.), no validation process is required. However, funding and documentation is

reviewed as follows:

• The store contract is used in lieu of a Homeowner/Contractor Agreement Form

• No draw at close is permitted on the amount pertaining to these contractors;

funding is a reimbursement draw for the amount evidenced in paid receipts and

work completed, and is reimbursed directly to the borrower

• The borrower is informed up front of the difference in procedures when using

these types of contractors, and is explained that the borrower is required to pay

any up-front costs required by retailers and/or their installers




• No contractor questionnaire is necessary unless required by secondary market

investors

The completed Contractor Profile Report and accompanying support garners the following

information:

Experience

• Number of years in the home renovation/construction business. Contractors

should have a minimum of two years in the business

• Required license or registration of the certificate per city, county or state level. If

unable to obtain this or if it was revoked, the contractor may be “rejected”

• Certificate of Good Standing is obtained from the state in which the contractor is

located

Credit

• A Better Business Bureau (BBB) review is obtained, and Internet searches (i.e.,

Angie’s List, Porch and BuildZoom) are conducted to determine any “red flags”

• A Lexis Nexis business report is pulled to determine creditworthiness. In the

event there are unresolved liens or judgements, the contractor is declined

OWNER/CONTRACTORS

The CCM renovation loan program does not allow “self-help;” meaning, the borrower cannot

perform repairs himself or herself (see overlays).

The program also does not permit any relationship between the borrower and the contractor

(see overlays).

CONTRACTOR RE-VALIDATION FOR A NEW PROJECT

Contractor re-validation is performed when he or she is selected (resubmitted) by a

borrower for a new project.

In addition, at any point during the rehabilitation process, if information is obtained that

indicates the viability of the project could be compromised by the contractor, a contractor

re-validation may be performed.

The following criterion applies, but is not limited to:

• A written request of re-validation, indicating the reason for the re-validation

• An updated Contractor Profile Report is not required unless information that

causes concern has been obtained, or the report is more than one year old

• No references are checked unless information that causes concern is obtained

• Liability and worker’s compensation insurance is current and in place

• The contractor's license is current (and any specialty license)

CONTRACTOR REPLACEMENT REQUIREMENTS

In the event a contractor needs replaced, the following is required:

• A written letter from the borrower requesting that the existing contractor be

replaced, including the reason(s) for the replacement and a list of all known

recorded or pending liens

• A letter of termination from the borrower to the existing contractor

• A fully executed state-specific Indemnification and Hold Harmless Agreement

from the borrower(s)




• A fully completed Contractor Profile Report with all required attachments from the

new general contractor

• A copy of his or her license as required

• A fully executed renovation contract from the new general contractor to complete

the project, and verification that the remaining funds are sufficient to complete

the project. The contractor is required to be compliant with the requirements

• An inspection to determine work which is completed and work that still needs

done. The borrower is responsible for the inspection fee

• A new plan and specs from the new general contractor matching the amount left

on the loan. If the new work plan is greater than the amount left on the loan,

arrangements or other alternative steps must be made for the borrower’s equity

contribution to be added to the escrow account. Such funds are provided to the

lender for deposit into the escrow account

Note: It is possible for these additional funds to come from the existing

contingency account as long as the contingency funds are still adequate to meet

the requirements of its purpose.

• A final lien waiver executed by the original contractor

• A current title update/bringdown

• All other contractor validation requirements apply

CONTRACTOR REJECTED

If a contractor is rejected, a Renovation Sales team member informs him or her that he or

she does not meet CCM requirements. No “rebut” process occurs.

PROJECT REVIEW AND APPROVAL REQUIREMENTS

The general contractor provides the bid and plans/specs which include, but are not limited

to, the following:

• It must be on the general contractor’s company letterhead (including name,

address and phone number)

• Borrower’s name(s)

• Subject property address (actual street address)

• Total cost of repairs, including a breakdown of labor and material with specs of

material and plans (if applicable)

• Permits and who is responsible to pay them (this may be placed on the Permit

Disclosure)

• The projected start and completion date

• The indicated timeframe and how many draws are necessary to complete the job

(so as to not exceed five draws)

• For specialty items such as electrical or plumbing, the contractor provides his or

her license if required by a governing authority, even if it is a sub-contractor

completing work

• If the floor plan is changing, the new floor layout and scope of work

• How mold issues are to be addressed (if applicable); governing authority

guidelines are followed

• A signed construction/rehabilitation agreement between the borrower and

general contractor once the terms are agreed upon

Once plans and specs are acceptable, the Renovation processor orders the appraisal by

submitting bids and the purchase agreement to the appraiser. Once the appraisal is back,

the CCM underwriter and Renovation processor review it ensure there are no additional




repairs required by the appraiser. If such repairs are necessary, the Renovation processor

works with the contractor to get the bids revised and the branch will inform the borrower(s).

Once the bids and appraisal are acceptable, the Renovation manager and/or underwriter

completes the Project Validation Form and uploads it to the correct Encompass eFolder

(either FHA – 203K Contractor Acceptance or HomeStyle: Contactor Acceptance).

CLOSING

CCM closers follow the normal closing process for renovation loans, in addition to

verification of the following (within Encompass):

• The CD has the initial draw listed, payable to the contractor and borrower if

approved by the CCM underwriter

Important Note: At the time of closing, a two-party check is made out to

the borrower and contractor and mailed to the borrower if not given at

the time of signing.

• The MMW and underwriting conditions match the disbursement amounts on the

CD prior to closing. If they do not match, he or she contacts the CCM Renovation

processor and/or the underwriter

• The Renovation Loan Rider is signed and recorded with the security instrument

• Post-closing title update fees are held by CCM

• The balance of renovation funds; contingency funds; post-closing inspection fee;

and mortgage payment reserves are held in escrow by CCM. He or she confirms

this setup matches the underwriting conditions and MMW

• Additional renovation charges are either disbursed or held in escrow by CCM as

per the lender instructions (i.e., architectural/engineering fees and permits

[underwriting conditions])

• The mortgage insurance (MI) is accurate. He or she is to NOT click the Get MI

button, as it will not populate correct information on a renovation loan (see below

screenshot). Instead, refer to the MI Job Aid for Renovation Loans (currently

available on Salesforce Chatter and is only accessible by Renovation team

members) for accurate input and the underwriting conditions




• The loan-to-value ratio (LTV) matches the CCM underwriter’s LTV on the

transmittal (Optimal Blue may push back incorrect information for the LTV and

sales price, which then requires underwriter correction prior to proceeding)

• Additional riders are signed at closing and are recorded if the subject is a two-to-

four-unit primary, investment or second home

Note: Record riders with the security instrument.

• The correct template is used for the Funding Worksheet; he or she adjusts this if

necessary to ensure items in escrow remain with CCM

GOVERNMENT INSURING

A CCM Insuring department member pays the upfront mortgage insurance premium

(UFMIP) on FHA loans within 10 business days of the loan closing and pays the VA funding

fee within three days of the loan closing. The same process for insuring FHA loans occurs

with renovation loans. For VA loans, an Insuring department member sets up a pipeline

view to monitor the progress of the file. Upon completion, the Renovation specialist enters

the completion date into Encompass, and then an Insuring department member insures the

VA renovation loans.




ACCOUNT SETUP

A CCM Closing department member net funds the renovation hold, and then an Accounting

department member sets up the account.

When a renovation loan closes:

1. ALL escrow funds are initially deposited into an interest-bearing account.

2. Upon receipt of the Final Allocation Notice, the escrowed funds are transferred to the

appropriate agency custodial escrow account.

POST-CLOSE ADMINISTRATIVE SETUP AND COMMENCEMENT OF

CONSTRUCTION

MAKING CHANGES TO BORROWER INFORMATION

It is important that any changes made to the borrower information initially submitted on the

application be tracked throughout the term of construction by sending an email to

[email protected]. This applies to all CCM employees working renovation

loans.

Some examples of these changes include the following:

• Borrower occupying the property

• Borrower moving to a temporary residence

• Telephone number changes

• Contractor changes

• Any other material matter

Accurate borrower information is required to properly administer the repair escrow and

service the loan. In many cases, the borrower’s telephone number(s) or mailing address will

change from the information on the application before the property is occupied. Reporting

this information is necessary for the borrower to properly receive his or her draw

disbursements.

COMMENCEMENT OF CONSTRUCTION

Construction on a project must commence within 30 days of the note date. Rehabilitation

progress is monitored for compliance, per protocol below:

A CCM Renovation team member reaches out to the borrower and contractor, 30 days from

the note closing date, to:

• Confirm work was started

• Obtain copies of permits (if they were needed)

• Explain the draw submission forms (if necessary)

The borrower and contractor are informed that any changes to the original plan must be

approved prior to work being done to avoid the risk of having disbursements delayed or

withheld. They must complete either the HomeStyle Change Order Request (Fannie Mae

Form 1200) or the HUD Request for Acceptance of Changes in Approved Drawings (HUD

Form 92577), which is submitted to the appraiser to verify it will not change value (if a

reduction of repairs is noted). It is then approved by the CCM Renovation manager or

Renovation underwriter prior to starting any work.

Every 30 days after the initial 30 days, a Renovation team member reaches out to the

contractor and borrower to confirm the status of work. A letter is mailed to the borrower at




30, 60 and 90 days after closing, providing additional information for obtaining completion

of work in a timely manner.

CUSTOMER SERVICE

Throughout the renovation period, a Renovation team member, in conjunction with a branch

member, performs the following:

1. Manages the draw process.

2. Addresses inquiries by all parties of interest.

3. Manages inspections, draws and related support.

Detailed customer service phone logs and emails are maintained for support and auditing

purposes, and all correspondence is uploaded into the Land Gorilla Construction Loan

Manager system (at final closeout, the documentation will be transferred to Encompass).

As stated in the Rehabilitation Loan Agreement, the mortgagee may consider the mortgage

to be in default if work:

• Has not begun within 30 days of the disbursement date

• Ceases for more than 30 consecutive days

• Has not been completed within the established timeframe or an extended

timeframe (as approved by the mortgagee/lender)

If the mortgagee considers the mortgage to be in default for failure to begin or complete

work, and the mortgage is not in payment default, the mortgagee must apply any unused

rehab funds toward the principal amount after all attempts to mediate the issue.

COMPLETION OF CONSTRUCTION/EXTENSION INFORMATION

The renovation period begins when the mortgage is funded. Renovation on a project must

be completed within 12 months of the note date (or as indicated in the Rehabilitation Loan

Agreement).

The initial renovation period is as follows:

• Six months on 203K financing

• Nine months for HomeStyle

• Two months for VA Rehab

If the work is not completed within the specified renovation period, the borrower/contractor

may request an extension of the time and must submit a request with adequate

documentation to justify the extension. The mortgagee/lender may grant an extension at its

discretion only if the mortgage payment is current.

Important Note: Only one extension is permitted.

At no time is the extended timeframe to exceed 12 months from funding of the loan. If

renovation is not complete, the loan is considered in technical default for “suspension of

construction.” Please refer to the Suspension of Construction section of this SOP for

additional information.

The Renovation specialist then obtains the following:

• Evidence that the mortgage is current

• An explanation for the delay from the borrower, contractor and/or consultant

• A new estimated completion date (from the borrower and/or contractor)




On the Escrow Closeout Certification screen in FHA Connection, the Renovation specialist

then completes the required fields to document the approval of the extension request for

the renovation period on FHA loans.

DRAW PROCESSING AND FUNDS DISBURSEMENT OVERVIEW

PERMISSIBLE AMOUNT OF RENOVATION DRAWS

CCM allows up to five draws based on either the general contractor for HomeStyle

Renovation loans or the work writeup per the HUD consultant. The 203K Limited program

limits the draws to one at closing and one at final.

Closing draws are non-standard for any loan program and must be requested and meet

agency guidelines. The CCM underwriter reviews and approves the draw at closing.

Any draws greater than the funds held, the cost of the reinspection and title update are

charged to the borrower (the borrower may request a change order to use the contingency

funds to cover additional inspection fees and title updates).

DRAW HOLDBACK

Regarding draw holdbacks:

• 203K Renovation Loan – 10 percent is held back on each draw until all work is

completed and it is determined that no mechanics’ or materialmans’ liens have

been placed on the property

• HomeStyle Renovation Loan – no holdback to the draw is required; however, the

lender may hold back up to 10 percent on each draw

• VA Rehab Loan – no holdback to the draw is required; however, the lender may

hold back up to 10 percent on each draw

Holdback from draws are released after the final draw once verification of the title shows no

lien issues. The release may occur 30-45 days after the final draw, depending on local/state

mechanic lien requirements.

DRAW PROCESSING AND FUNDING

When the general contractor is ready for a draw, he or she contacts the CCM Renovation

department (if a HUD consultant is used, the general contractor contacts the HUD

consultant for forms and inspections). The general contractor then submits the Draw

Request Form to the CCM Renovation department by emailing

[email protected] for work completed and items installed. As documents

are received, they are uploaded into the Land Gorilla Construction Loan Manager system.

The Renovation specialist completes the following steps:

1. Reviews the Draw Request Forms, and, if all are acceptable, proceeds with ordering

the inspection and title update.

2. Reviews any additional required documents per draw (i.e., permits, lien waivers,

borrower satisfaction letter, etc.).

3. Orders the inspection from the AMC or appraiser (unless one is provided by the HUD

consultant).

4. Provides a copy of the budget items being requested to AMC.

5. Orders the title update from the title company.

6. Confirms in the Dovenmuehle Mortgage, Inc. (DMI) portal that the mortgage

payment is current and not past due. DMI is CCM’s mortgage subservicing company.




Note: If servicing is transferred to another lender, confirms with the contact at the

new lending agency for payment status.

7. Requests a check from the CCM Accounting department for the approved request

amount once the title update and inspections are back and acceptable. A CCM

Accounting department member then issues a two-party check to the borrower and

contractor.

Note: A check payable directly to the contractor is permissible with written

authorization from the borrower on a per-draw basis.

8. Confirms the amount (on the two-party check issued by the Accounting department)

matches the approved amount and confirms the borrower’s (borrowers’) current

address prior to sending it to the borrower.

Note: The above process is repeated (not to exceed allocated draws) until the project is

completed.

Once final disbursement is completed, any renovation/construction budget funds and/or

contingency reserve funds – remaining and undisbursed – along with any interest earned

calculated by the CCM Accounting department, is applied to the outstanding principal

balance of the renovation loan. A Renovation department member then informs an

Accounting department member as to when to apply these funds to the principal balance.

Once completed, the Accounting department member provides his or her spreadsheet to the

Renovation department member. The spreadsheet includes interest earned, number of days

in escrow and disbursement(s) history.

DETAILED DRAW REQUIREMENTS

DRAW DISBURSEMENT REQUEST/AUTHORIZATION

The general contractor/HUD consultant submits the draw request forms as applicable via

email, fax or mail to the CCM Renovation department.

Note: The U.S. Department of Housing and Urban Development Draw Request Section 203K

form (form HUD-9746-A), also referred to as the Draw Request Form, is required on 203K

loans and the CCM Request for Payment is required on all other renovation loans.

It is required that the draw be applied to specific budget line items. Individual line items

cannot be overdrawn. The amounts allocated to individual lines, and the total of the draw,

must reconcile.

All product-specific required forms are utilized and executed electronically or by hand by the

required parties prior to disbursement of requested funds.

The expiration dates for the contractor’s license and insurance, as well as the rehabilitation

expiration date, are tracked. If the contractor’s insurance or license has expired, proof of

renewal is obtained prior to any draws. With respect to the expiration date of the

rehabilitation period, no draw is paid past this date without the proper extensions being

obtained.

CONTINGENCY/CHANGE ORDERS

Regarding contingency/change orders, please see information below:

• Use of construction/renovation contingency funds to pay for change orders are

supported by the appropriate product complaint forms and only for product-

specific approved usage




• All contingency requests are reviewed in regard to the appropriateness of amount

and timing. If the change order is deemed acceptable by the Renovation

department manager or underwriter, the request is approved, or, if deemed

unacceptable, the amount may be adjusted accordingly

o If changes requested may affect value, the underwriter and/or appraiser

reviews the Change Order Request to deem whether it is acceptable

• If items on the Change Order Request need a special license or new contractor,

they must go through the standard process listed above

• If the change order is approved, the proof of payment or receipt is required to

process draws from the contingency (or payment is made directly to the

contractor)

• Contingency funds may only be used to provide for cost overruns and additional

related changes associated with the work items as detailed in the work

writeup/bid. If all work is complete, the borrower may elect to use the

contingency funds for additional renovation work the program allows

• The cost of a change order is paid out of the contingency fund. If the contingency

fund is inadequate, the fee is paid by the borrower and documented within the

loan file

• Unused contingency funds are applied as a principal reduction when financed into

the loan. If the borrower elected to not finance the contingency funds, the funds

may be refunded back to the borrower after all items are verified complete

LIEN RELEASE POLICY

State lien laws have placed the burden on the borrower to ensure sub-contractors and

suppliers are paid for their materials and labor. To protect the collateral value of the home,

the contractor and borrower sign the applicable draw forms and lien waivers, stating he or

she has or will pay his or her sub-contractor(s) and/or supplier(s).

Some states require a state-specific lien release be used. In those states, the required

state-specific form must be used; otherwise, the standard Waiver of Lien or CCM Request

for Payment Form is signed and notarized.

Note: Please contact the Renovation manager at [email protected] for

access to the above-two mentioned lien forms.

TITLE UPDATE POLICY

Draws are funded only if the title update reflects there are no mechanics’ or tax liens

encumbering the property.

• If a lien is filed on the project, the loan is suspended until the issue is resolved

satisfactorily

• All specific statutory pre-lien notices, lien notices or communications regarding

non-payment of sub-contractors or suppliers should be forwarded to the CCM

Renovation department

SUSPENSION OF CONSTRUCTION

A project may be suspended by the CCM Renovation team for the following reasons, but is

not limited to:

• Inability to complete rehabilitation work in the required timeframe

• Refusal to complete minimum property repairs

• Expanding improvements without prior written approval

• Absence of occupancy by borrower(s) in the required timeframe




• Liens filed on the property and are not cleared

• Changing contractors without prior written approval

• Renovation/construction ceases on the property for more than 30 days

When this occurs, loans require further action by the CCM Legal department. A CCM Legal

department member provides all relevant documentation and a recommendation as to how

to proceed to the Renovation manager when determining the appropriate course of action

and the appropriate steps to close out an incomplete project.

Refer to the appropriate agency guidelines under servicing for non-performing loans during

the rehab period. No further draws from the rehabilitation escrow account are permitted.

ESCROW CLOSEOUT/RECOURSE REMOVAL

The CCM Renovation specialist performs the following when dealing which each individual

loan type:

• FHA Loan – completes the escrow closeout in FHA Connection. He or she ensures

all information is accurate and all supporting documents are uploaded into

Encompass

• VA Loan – provides all related completion documents in PDF format to be

uploaded by the Renovation manager to WebLGY (the VA online application) for

final VA clearance and insuring; emails the Insuring department to issue the VA

Loan Guaranty

• Fannie Mae Conventional Loan – handles the removal of recourse. Instructions on

this are provided in the Fannie Mae Seller Guide, part B, sub-part 5, chapter 3,

HomeStyle Renovation Mortgage – Removal of Recourse. He or she emails the

required documents after the project is completed to Fannie Mae at

[email protected] (see below for required

documentation). He or she then ensures the information is accurate and that

supporting documents are uploaded into Encompass

Required documentation includes one of the following:

• Appraisal updated and/or Completion Report (form 1004D)

• HomeStyle Completion Certificate (form 1036)

Submissions must include the following:

• Fannie Mae loan number(s) must be identified in the email request and attached

documents must have the loan numbers in the title

• Documents must be clear and complete (i.e., it is a best practice to include

photos of completed renovations with all submissions)

• Manage email and attachment size to ensure delivery by:

o Submitting no more than five-to-seven attachments per message

o Properly numbering emails if there are multiple emails for the same

submission on the same day. For example, 1 of 3 emails, 2 of 3 emails, 3 of

3 emails

SERVICING

The CCM Servicing department follows the same process as with any other loan. Agency

loan delivery is the only option; no investors. Servicing cannot be sold or transferred to any

investor until the renovation is completed.




LOAN DELIVERY

A CCM Loan Delivery analyst updates the sales price when electronically delivering a loan to

Fannie Mae. The Purchase Price field (field ID 136) on the ULDD/PDD screen within

Encompass is updated (see below screenshot).

The Purchase Price field defaults to only the purchase price of the subject property and for

delivery purposes includes the financed renovations as noted on the Details of Transaction

screen.

The Loan Delivery analyst then adds lines a. and b. of the Details of Transaction screen and

manually overrides the electronic upload to Fannie Mae for loan delivery. The Loan Delivery

analyst may also refer to the AUS findings and use the purchase price as submitted to DU,

which is the total of lines a. and b. of the Details of Transaction screen.

Note: The underwriter enters special feature code 215 into the Investor Feature ID Pool

field on the ULDD/PDD screen within Encompass for Fannie Mae loan delivery. Using special

feature code SFC 279 is not permitted due to recourse and timing requirements from Fannie

Mae.

CONCLUSION

To conclude, CCM currently offers four renovation loan products (programs), which include

HomeStyle® Renovation; 203K Standard; 203K Limited; and VA Rehab. These products




have been discussed within this SOP, including which CCM employee performs what action

in handling these renovation loans.

As mentioned throughout this SOP, all loans must adhere to the standard credit

requirements as agency guidelines, and CCM overlays must be followed. All exceptions must

go through the exception request process.

Please reference the Definitions section at the beginning of the SOP for guidance on key

terms listed throughout this SOP, as well as the link in the Internal References section

below titled “Renovation Department Contact Listing (on Salesforce)” for all key contacts in

the CCM Renovation department.

See the References section below also for further valuable reference materials.

REFERENCES

INTERNAL REFERENCES

Internal References CCM Overlays & Exception Process

CrossCountry Mortgage, Inc. VA Rehabilitation/Renovation Loan Product Description/Underwriting Guidelines

Renovation Department Contact Listing (on Salesforce)

Renovation Department Page (on Salesforce)

EXTERNAL REFERENCES

External References 203K Consultants (HUD consultant lookup)

Fannie Mae Guidelines (AllRegs Online site)

HUD Handbook

Land Gorilla Construction Loan Manager Login

Lien and Notice Forms (FAQs on mechanic lien laws/requirements)

U.S. Department of Housing and Urban Development Draw Request Section 203K Form (form HUD-9746-A) (also referred to as Draw Request Form)

Veterans Information Portal (VA WebLGY)




REVISION HISTORY

Revision/

Publish

Date

Revision

Number

Description of

Revision(s)

Document

Owner

Reviewer(s) Approver(s)

12/17/2018 1.2 “(FHA Only)” added to the Contractor Conflict of Interest Certification field in the Disclosure column of the table under the Additional

Documentation Requirements section. Also, under the “When

Provided/Additional Instructions” column, “for 203K loans only”

was added to existing content in the field (next to above-mentioned field).

Theresa Baumgartner

Theresa Baumgartner

Theresa Baumgartner

12/4/2018 1.1 Reno indicator

information added to the Checking (Selecting) the 203(K) Checkbox and Reno Indicator section, in addition to new screenshot; AMC

information added to

the Ordering the Appraisal section; Various other content added to this SOP, including Land Gorilla information and

holdback content; The Salesforce Renovation department page link was added to the Internal References

section, which eliminated the former Appendix A, which listed all CCM

Renovation department contacts. Other external links

were added also to the External References section.

Theresa

Baumgartner

Theresa

Baumgartner

Theresa

Baumgartner

6/29/2018 1.0 Initial publish. Theresa Baumgartner

Theresa Baumgartner

Theresa Baumgartner