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3. Loan Origination The HRC has extensive experience with the administration of home improvement loan programs. When an application is received the Program Representative sets up the loan file and checks to be sure that all necessary documentation has been received. If one or more documents are missing the borrower is contacted by phone and/or mail. Once the file is complete the Program Representative processes the application and does the initial underwriting per the Program Guidelines, and employing prudent underwriting standards. Loan underwriting includes credit analysis, income verifications and calculations, asset verification, debt to income analysis and loan to value analysis. Income and credit information is obtained via third party verifications. The borrower will be charged $15.00 for a credit report at the time of application. Property eligibility is also determined and an Owners and Encumbrances Report is ordered from Old Republic Title Company to ascertain if there are any liens on the property. The cost of an O&E is $100 and is paid for by the borrower. This fee can be financed in the loan if the borrower chooses. If the borrower meets underwriting guidelines the file is transferred to the Program Administrator for review and final approval. The homeowner is notified by letter of their approval or denial. Generally the loan closing takes place at the HousingResource Center and is conducted by the Program Administrator. As the need arises, staff will make home visits to close the loan or otherwise assist residents. Loans will be secured by a Note and Mortgage in favor of the City of New Brighton. The Note and Mortgage must be provided to GMHC by the City. Generally the New Brighton loan will be a second mortgage unless there is no purchase mortgage on the property, in which case it is likely to be in first position. 4. Rehab Advisory Services The HRC has a full-time construction manager available to assist homeowners in the home improvement process. Homeowners participating in a New Brighton loan program can request assistance in identifying and prioritizing the improvements needed, ask for a written scope of work to use in bidding the project to contractors, and have the construction manager assist them in contractor selection. GMHC does not recommend contractors, but does maintain a list of licensed contractors that have satisfactorily performed work for program participants in the past. This list is available to homeowners. At a minimum, as part of the loan administration, the construction manager will review all contractor bids obtained by the homeowner for reasonableness and check on current licensing. Following the completion of the work the construction manager will inspect the work to verify it has been completed and that it meets industry standards. Loan funds will be held by GMHC until the work has been completed, inspected and signed off by the homeowner and construction manager. Lien waivers and a completion certificate will be collected prior to paying out the funds. If a dispute occurs between the contractor and homeowner the construction manager is available to help resolve the dispute in a timely manner. These services are provided to the homeowner at no charge. In