Attachment_8_-_Exhibit_F.pdf

Exhibit F.1 – Firm Review Sheet

Oct-17 seg

Review the Firm Commitment documents to verify for correctness and completeness as noted below:

All Documents

FHA #, Project Name Check for correctness & consistency across all documents

Firm Commitment

Firm Commitment Confirm template version used is current (August 2015) Check for correctness & consistency with other LCM and other exhibits:

Headers, Page 1:

o FHA # o Project Name o Project Address o Lender Name o Borrower Name

Paragraph 1:

o Ensure Borrower Name appears correctly o Loan amount – confirm number and written out dollar amount

Item 1:

o Interest rate o # of total monthly payments o P&I P&I payments calculator * o Maturity term (should be total monthly payments -1)

Item 4:

o Section 38 Regulatory Agreement; typically needs 2 participants referenced per HB Ch. 6.1.E.3., an individual & parent entity (not the borrower entity) o Reserve for Replacement annual deposit amount (should be consistent with LCM & Exhibit B), confirm monthly amount is correct (annual deposit/12) o Reserve for Replacement initial deposit amount (should be consistent with LCM, Exhibit B & 92264A S&U) o PCNA date 10 years after inspection date of PCNA in application o Confirm Profit Motivated/Non-Profit box is checked as appropriate.

Item 5:

o Critical Repairs amount (should be consistent with LCM & Exhibit

C) o Non-Critical Repairs amount (includes Borrower Proposed Repair amount; should be consistent with LCM & Exhibit C) o Total of the two amounts should be consistent with Repair amount on 92264A S&U

Item 7:

o Property insurance coverage must be a minimum of 90% of

Estimated Replacement Cost Value (as defined by the Insurable Value Calculation contained in the 3rd party Project Capital Needs Assessment). If the Estimated Replacement Cost is not provided in the PCNA, or no PCNA is required, a report using valuation software such as Marshall and Swift or similar may be submitted.

o Maximum deductible = $25,000 (1% or $250k for loans over $100M)

Item 15:

o Verify annual lease payment amount o Confirm IOI Operator box checked as appropriate

Item 20:

o Ensure AE information is filled in and reflects assignments noted in SharePoint

Item 21:

o Confirm Special Conditions box is checked as appropriate o Confirm # of Special Conditions referenced is correct (should be consistent with conditions listed below and on LCM)

Special Conditions:

o Review lender proposed conditions, and include as applicable.

(If the proposed conditions are no longer applicable, or not appropriate, ensure they are not included in the Firm.)

o Confirm # and language are consistent with LCM and Special Conditions Menu, including conditions on any other related deals being presented o Verify that any HEROS special conditions match the language set out on the HEROS memo o Verify any amounts set out in condition language (i.e., DS escrow amount

Signature blocks:

o Confirm Entity names are showing correctly & consistently

Exhibits to Attach to Firm

Exhibit A, Legal Description

Check to ensure legal description is for the subject property

Exhibit B, Reserve for Replacement schedule

Initial Deposit Amount matches LCM, 92264A Sources & Uses, Firm Commitment, Item 4

Annual Deposit Amount matches LCM, Firm Commitment, Item 4

Exhibit C, Repairs Confirm Totals are correct

Amounts match LCM, 92264A Sources & Uses, Firm Commitment, Item 5

92264A, Maximum Insurable Loan Calculation (MILC)

Check:

Criterion A: Requested loan amount matches LCM & Firm

Criterion D:

o Value is consistent with concluded Market Value in LCM;

o LTV is correct limit for program & borrower type

Criterion E:

o Interest rate matches LCM & Firm o MIP is correct annual rate for program type o Loan Term matches LCM & Firm o NOI matches Lender’s Underwritten NOI

Criterion G (only on Purchases):

o Confirm total costs, grants, reserves, & MME are consistent with

LCM

o Confirm percentage is correct for borrower type (85% for profit, 90% non-profit)

Criterion H (only on Refinances):

o Confirm total costs, grants, reserves, & MME are consistent with

LCM

Maximum Insurable Loan (Lowest of Foregoing Criteria): Make sure this field is not $0, and that it reflects the lowest of the all the relevant criteria

Make sure the lender has signed and dated the form

The S&U must be included as part of this exhibit (instructions, criteria by program type, & other non-applicable pages are not needed)

S&U:

o Total Sources should balance with Total Uses o Confirm loan amount (should not be more than Total HUD

Eligible Costs) o Confirm correct figures for Existing Indebtedness or Purchase

Price, Prepayment Penalty, IDRR, Reserves to Transfer, Repair Cost, HUD Inspection Fee, First Year MIP, HUD Exam Fee, and any required escrows in Non-Eligible Costs. (NOTE: If the Lender elects to take responsibility for the Non-Critical Repair Escrow administration, the HUD Inspection Fee line item should be $0 in the Eligible Costs section, but should be included in the Non- Eligible Costs section. (The inspection fee can be refunded in this case, but must be collected.) A separate fee may be charged for the lender’s administration as an Eligible Cost. Ref. 10/30/15 Email Blast)

AR Terms Memo If applicable:

Confirm all fields are complete and correctly reflect approved transaction.

Items to post to Loan Committee Folder:

Loan Committee Memo

Firm Commitment with Special Conditions

Exhibit A- Legal Description

Exhibit B- Reserve for Replacement Schedule

Exhibit C – Repair List

HUD-92264a-ORCF

Pictures/Plans of the Property

A location map detailing location of the sales and rent comparables

All required Waivers

Updated Medicaid Rate letter, as applicable

AR Terms Memo, as applicable

ORM Review Memo, as applicable

Portfolio Memo, as applicable

CCR Acceptance Letter, as applicable