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Taking the Application, along with five of the fourteen services (as identified in the HUD {IBAA Letter} letter dated
February 14, 1995) must be performed in order to provide compensation for services actually furnished or perfomed
by the service provider. Compensation is not authorized for FHA, VA or State Housing Authority Loan Programs.
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| 1. |
EXPLAINING APPLICATION PROCESS, LOAN PROGRAMS AND COSTS: Educating the prospective borrower in the home buying and
financing process, advising the borrower about the different types of loan products available, and demonstrating how closing costs
and monthly payments could vary under each product.
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| 2. |
TAKING APPLICATION (REQUIRED): Taking information from the borrower and filling out the application.
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| 3. |
PRE-QUALIFYING BORROWER: Analyzing the prospective borrower's income and debt and pre-qualifying the prospective borrower to
determine the maximum mortgage that the prospective borrower can afford.
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| 4. |
EXPLANATION OF CREDIT: Assisting the borrower in understanding and clearing credit problems.
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| 5. |
PROVIDING GOOD FAITH AND OTHER DISCLOSURES FROM "RATE QUOTER:" Providing disclosures (truth in lending, good faith estimate, others)
to the borrower.
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| 6. |
LOAN TRACKING EXPLANATION AND ASSISTANCE: Maintaining regular contact with the borrower, Realtors, lender, between
application and closing to appraise them of the status of the application and gather any additional information as needed.
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| 7. |
COLLECTING REQUIRED DOCUMENTATION TO FACILITATE LOAN: Collecting financial information (tax returns, bank statements) and other
related documents that are part of the application process.
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| 8. |
INITIATING/ORDERING REQUIRED INCOME AND DEPOSIT VERIFICATIONS: Initiating/ordering VOEs (verification of
employment) and VODs (verification of deposit).
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| 9. |
INITIATING/ORDERING MORTGAGE AND OTHER VERIFICATIONS: Initiating/ordering requests for mortgage and other loan verifications.
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| 10. |
APPRAISAL ORDER: Initiating/ordering appraisals.
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| 11. |
INSPECTION AND OR ENGINEERING ORDER: Initiating/ordering inspections or engineering reports.
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| 12. |
FLOOD ZONE DETERMINATION: Determining whether the property was located in a flood zone or ordering such service.
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| 13. |
LEGAL DOCUMENTS: Ordering legal documents.
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| 14. |
LOAN CLOSING: Participating in the loan closing.
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