HR SPECIAL MEETING AGENDA 01-14-2019
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Request for Action
To
Housing and Redevelopment Authority
Item Number
2.0
Agenda Section
General Business
Meeting Date
January 14, 2019
Prepared by
Amanda Othoudt, EDD
Item Description
HRA Housing Rehabilitation Loan Program
Reviewed by
Cal Portner, City Administrator
Reviewed by
Action Requested
Discuss the administration of HRA Rehabilitation Loan Program.
Background/Discussion
At their January 7, 2019, meeting, the HRA heard a presentation from the Center for Energy and
Environment on the administration of the HRA Rehabilitation Loan Program.
Following the presentation, it was the consensuses of the HRA to have CEE administer the HRA Rehab
Loan Program.
Staff would like to discuss the administration of the program by CEE, finalize the program guidelines and
loan servicing agreement with the Commission.
Financial Impact
The HRA allocated $50,000 in the budget for 2019.
Attachments
CEE Residential Loan Application
CEE Loan Origination Agreement (DRAFT)
CEE Program Guidelines (DRAFT)
CEE Loan Servicing Contract
CEE Loan Servicing Agreement Exhibit A (DRAFT)
CEE Loan Servicing Contract Exhibit B
CEE Welcome Packet Sample
Application Instructions
To Apply, please submit the following:
1. Completed and signed application.
o The application must include all household residents who
have an ownership interest in the property and whose
income and credit history are being relied upon to qualify
for the loan requested.
2. Signed and dated Authorization and Release form
3. Signed and dated USA Patriot Act Information Disclosure
4. A copy of your government issued ID(s) with a photo (ie: drivers license)
5. Proof of Income
o If you are employed: submit your two most recent,
consecutive pay stubs showing year-to-date information
o A copy of your most recent W2
o If you are retired: submit a copy of your social security or
pension award letter
o If you are self-employed: submit your past two years 1040
Federal tax returns, including all schedules
o Note: additional documentation may be requested by CEE
personnel
6. At least 1 bid for each project
o The contractor must include the energy efficiency, Energy
Star rating, U-Factor, etc. on the bid
Improvements may NOT begin prior to closing your loan with CEE
A copy of CEE’s information sharing practices and privacy policy is attached for
your records. This form does not need to be signed or returned.
Completed applications may be retuned:
By fax: 612-335-2650
By mail: 212 3rd Ave N, Suite 560, Minneapolis MN 55401
By email: loaninfo@mncee.org (please note: documents sent via email may not be secure)
Application for Credit
This application is to be completed by the applicant without the lender's assistance and is required to determine eligibility for financing.
Applicants should complete this form as "Applicant" or "Co-Applicant" as applicable. Co-Applicant information must also be provided when the
income or assets of a person other than the Applicant (including the Applicant's spouse) will be used as a basis for qualification and/or
repayment of the loan or grant being requested.
Center for Energy and Environment ("CEE")
Amount $
A portion of the information requested in this credit application is classified as "private data on individuals" under Minnesota Statute 462A.065.
Use of the data is limited to that necessary for the administration and management of this program by CEE personnel, those under contract with
CEE that have a need to know this information, and other governmental agencies when authorized by state statute or federal law.
Section 1: Terms Requested
Term (No. of Months)
How did you learn about CEE?
Property Address (where work will be performed):
Section 2: Property Information
Street:City:Zip:
County:Name of Neighborhood (if Applicable):
Number of Dwelling Units:
1-unit 2-unit 3-unit 4-unit Other
Year Built: Month and Year Purchased: Purchase Price: $
Describe the Improvements to be made:
Applicant Name (include Jr/Sr if applicable)
Section 3: Applicant Information
Social Security Number Date of Birth
# and Ages of Dependants
Separated
Unmarried (includes single, divorce, widowed)
Married
Home Phone
Work Phone
Mobile Phone
Email
Present Address (if different than property address)
Previous Address (if less than 2 years at current)
RentOwn How Long?
Co-Applicant Name (include Jr/Sr if applicable)
Social Security Number Date of Birth
Separated
Unmarried (includes single, divorce, widowed)
Married
# and Ages of Dependants (if different than Applicant)
Home Phone
Work Phone
Mobile Phone
Email
Present Address (if different than property address)
Previous Address (if less than 2 years at current)
RentOwn How Long?
CEE / CEE_Application / 9-18
Gas Company Name: Electric Company Name:
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CEE / CEE_Application / 9-18
Name & Address of Employer
Section 4: Income / Employment
Yrs/Mos at this Job
Position/Title
Yrs in this line of work
If employed in current position for less than 2 years, or if currently employed in more than one position, complete the following:
Name & Address of Employer Yrs/Mos at this Job
Yrs in this line of work
Position/Title
Gross Monthly Income 1:
Base Income
Overtime
Bonuses
Commissions
Dividends / Interest
Social Security / Pension
Net Rental Income
Other 2
TOTAL
Applicant Co-Applicant
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1 Self Employed Applicants: Self employed applicants will be required to provide additional documentation such as tax returns and financial
statements.
2 Other Income: May include such things as unemployment, alimony, child support or separate maintenance, which income need not be
revealed if the Applicant/Co-Applicant does not choose to have it considered for repaying this loan:
Describe Other Type of Income - Applicant
Section 5: Credit History / Debts
List all current obligations including mortgage loans, installment loans (such as auto and student loans), revolving charge accounts, debts to
banks or finance companies and government agencies. Use additional sheet of paper if necessary.
Check if Business
RelatedTo Whom Indebted Amount Owed (Balance) Monthly Payment
1st Mortgage*:
2nd Mortgage:
Other Real Estate Owned (provide property address &
name of Lender):
$
$
$
$
$
$
$
$
$
$
Name & Address of Employer Yrs/Mos at this Job
* If real estate taxes and homeowners/flood insurance are not included in the mortgage payment amount above, please list the amounts here:
Position/Title
Yrs in this line of work
Name & Address of Employer Yrs/Mos at this Job
Yrs in this line of work
Position/Title
$ taxes per year $ insurance per year
Monthly Amount
$
$
Monthly Amount
$
$
Describe Other Type of Income - Co-Applicant
$ $
Self-Employed Income
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CEE / CEE_Application / 9-18
Section 6: Information for government Monitoring Purposes
These questions apply to all applicants. If you answer "yes" to question 1-5, please provide a written explanation, including the circumstances
and dates. Use a separate piece of paper if necessary.
Applicant
Yes Yes No
Co-Applicant
No
1: Are there any outstanding judgments or liens against you?
Explanation:
2: Have you declared bankruptcy (Chapter 7 or 13) within the last 36 Months?
3: Have you had any property foreclosed upon or given title or deed-in-lieu thereof in the past 36
months?
4: Are you a co-maker or endorser of a note that is not included in the above listed debts?
5: Are you obligated to pay alimony, child support or separate maintenance?
6. Do you intend to occupy this property (at least one unit) as your primary residence?
Applicant Co-Applicant
I do not wish to furnish this information
Ethnicity:Hispanic or Latino
Japanese
Race:American Indian or Alaskan Native
Native Hawaiian or Other Pacific Islander
Asian
Black or African American
White
Sex:Male Female
I do not wish to furnish this information
Ethnicity:Hispanic
Not Hispanic or Latino
Race:
Japanese
Asian
Black or African American
White
Sex:Male Female
To be completed by Lender
This information was provided by:
By the applicant and submitted by fax or mail
In a face-to-face interview
By the applicant and submitted via email or the Internet
In a telephone interview
8. Are you a permanent resident alien?
7. Are you a U.S. citizen?
Not Hispanic or Latino
Chinese
Asian Indian
Other Asian
Puerto Rican
Cuban
Mexican
Other Hispanic or Latino - enter race
Puerto Rican
Cuban
Mexican
Other Hispanic or Latino
Filipino
Vietamese
Koreon
Native Hawaiian
Guamanian or Chamorro
Samoan
Other Pacific Islander - enter race
Chinese
Asian Indian
Other Asian
Filipino
Vietamese
Koreon
Native Hawaiian
Guamanian or Chamorro
Samoan
Other Pacific Islander - enter race
American Indian or Alaskan Native
Native Hawaiian or Other Pacific Islander
3 of 5
CEE / CEE_Application / 9-18
Acknowledgments and Agreements
I agree to, acknowledge, and represent the following statements to CEE (this includes CEE's agents, service
providers, and any of their successors and assigns), and to other participants in the loan or grant applied for
(including any actual or potential source of funding, any actual or potential owner of the loan or acquirer of any
beneficial or other interest in the loan, any guarantor, servicer or service provider on the transaction, and any of
their successors and assigns).
By signing below, I agree to, acknowledge, and represent the following statements about:
(1) The complete information for this application.
The information I have provided in this application is true,accurate, and complete as of the date I signed this
application. If the information I submitted changes or I have new information before the closing of the transaction,
I must change and supplement this application. CEE and other participants in the loan or grant applied for may rely
on the information contained in the application before and after closing of the transaction. Any intentional or
negligent misrepresentation of information may result in the imposition of civil liability on me, including monetary
damages, if a person suffers any loss because the person relied on any misrepresentation that I have made on this
application, and/or criminal penalties on me including, but not limited to, fine or imprisonment or both under the
provisions of federal law (18 U.S.C. 1001 et seq.).
(2) Electronic records and signatures.
CEE and other participants in the transaction may keep any paper record and/or electronic record of this application,
whether or not the transaction is approved. If this application is created as (or converted into) an "electronic
application", I consent to the use of "electronic records" and "electronic signatures" as the terms are defined in and
governed by applicable federal and state electronic transaction laws. I intend to sign and have signed this
application either using my: (a) electronic signature; or (b) a written signature and agree that if a paper version of
this application is converted into an electronic application, the application will be an electronic record, and the
representation of my written signature on this application will be my binding electronic signature. I agree that the
application, if delivered or transmitted to CEE or other participants in the loan or grant applied for as an electronic
record with my electronic signature, will be as effective and enforceable as a paper application signed by me in
writing.
(3) Delinquency.
CEE and other participants may report information about my account to credit bureaus. Late payments, missed
payments, or other defaults on my account may be reflected in my credit report and will likely affect my credit
score.
(4) Use and sharing of information.
I understand and acknowledge that CEE and other participants in the loan or grant applied for can obtain, use, and
share the application, a consumer credit report, and related documentation for purposes permitted by applicable
laws.
(5) Eligibility.
I am not a spouse, child, parent, sibling or spouse of a sibling of a CEE director, officer or employee, nor do I hold
any of the aforementioned positions.
(6) Security interest.
If I have applied for a loan, the loan may be secured by a mortgage or deed of trust which provides CEE a security
interest in the property described in this application.
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Loan Originator Company Name Loan Originator Individual Name
Loan Originator Company NMLSR ID Loan Originator Individual NMLSR ID
(as name appears on NMLSR)
(if applicable)
TIL and NMLSR ID
Section 7: Signatures
Type of Credit Requested:(Important! Check and Initial the appropriate boxes below):
Joint Credit (Relying on my income and assets as well as that of someone else)
Individual Credit (Relying solely on my income or assets)(Initials)
(Initials)
(Applicant) Date (Co-Applicant) Date
TIL and NMLSR ID
(to be completed by CEE)
CEE / CEE_Application / 9-18
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USA Patriot Act Information Disclosure
Important Information about Application Procedures
Center for Energy and Environment
212 3rd Avenue North, Suite 560
Minneapolis, MN 55401
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all
financial institutions to obtain, verify, and record information that identifies every customer.
What this means to you: When you apply for a loan, we will ask for your name, address, date of birth, and other
information that will allow us to identify you. We will ask to see your driver’s license or other identifying
documents.
I/We acknowledge that I/we received a copy of this disclosure.
___________________________________________________
Date
___________________________________________________
Date
NON-AGENCY DISCLOSURE
CENTER FOR ENERGY AND ENVIRONMENT IS NOT ACTING AS YOUR
AGENT IN CONNECTION WITH OBTAINING A RESIDENTIAL
MORTGAGE LOAN. WHILE WE SEEK TO ASSIST YOU IN MEETING
YOUR FINANCIAL NEEDS, WE CANNOT GUARANTEE THE LOWEST OR
BEST TERMS AVAILABLE IN THE MARKET.
By my/our signature(s) below, I/we acknowledge receipt of the foregoing disclosure, and further acknowledge that
I/we have read it and understand what it means.
Date
Date
CEE / Non_Agency_Disc / 8-12
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 1
LOAN ORIGINATION AGREEMENT
This LOAN ORIGINATION AGREEMENT (“Agreement”) is made by and between The City of ELK
RIVER HOUSING and REDEVELOPMENT AUTHORITY, with offices at 13065 Orono Parkway, Elk River,
MN 55330 (“Authority”), and CENTER FOR ENERGY AND ENVIRONMENT, with offices at 212 3rd
Avenue North, Suite 560, Minneapolis, Minnesota 55401 (“CEE”).
RECITALS
A. The Authority has a need for certain professional services and desires to retain CEE to
provide said services, all subject to the terms and conditions contained in this
Agreement.
B. CEE is qualified to provide the desired professional services and desires to provide said
services for the Authority, all subject to the terms and conditions contained in this
Agreement.
NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained in this
Agreement, the parties agree as follows:
1. Services/Scope of Work
1.1 CEE shall in conjunction with the Authority develop and deliver the City of Elk
River Home Improvement Loan Program (hereinafter the “Program”) and more fully
described in Exhibit A attached hereto. All activities delivered under the Program
shall be coordinated with the Authority’s designated Economic Development
Director.
1.2 CEE shall assist the Authority staff in marketing the Program. CEE shall insure that
the Authority's sponsorship of the program is a prominent part of any marketing
effort.
1.3 The funding source is exclusively from the Authority and the program will be
referred to as the Authority Funded Program.
2. Compensation
2.1 The Authority shall compensate CEE for services provided under this agreement
according to the following schedule and more fully described in Exhibit B attached hereto:
Loan Set Up Fee $1,500
The Authority shall pay CEE a one time loan set-up fee. This shall compensate CEE for
time and labor to create the loan program.
Loan Origination Fee $550.00
The Authority shall pay CEE an Origination Fee for each loan closed using the Authority
Funded Program. The Origination Fee shall compensate CEE for assisting borrowers with
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 2
loan applications, preparation of loan documents, loan closing and other direct costs of
processing loans. Mortgage filing, title work, credit report, flood, origination fee,
document preparation fee and other applicable closing costs shall be paid by the
borrower. CEE shall provide a copy of closing documents including the loan note and
mortgage as documentation of the loan closing.
Remodeling Advisor Visit Fee(RAV) $225
CEE will provide City of Elk River homeowners with rehabilitation counseling services to
assist in evaluating projects, bids and how to move forward with their project. The visit
fee is for each site visit or trip to the property. Phone calls, emails and other forms of
communication are included in the fee.
Annual Administrative Fee $500.00
This shall be due January 1st of each calendar year the contract is in effect. To begin in
the year 2020.
The Authority shall compensate CEE only for services completed.
Upon request, CEE will provide marketing services for the following fees:
CEE Labor $65 per hour
Hourly rates are inclusive of all overhead expenses and will be charged only for hours
directly related to marketing. CEE will be reimbursed by the Authority for any non-labor,
out-of-pocket expenses, relating to these services on a dollar-for-dollar basis with no
mark-up. There is no cost for creating a program information sheet, creating links to our
website and assisting in writing articles to promote the program.
2.2 CEE shall invoice the Authority not more than two times each month for the principal
of loans and administrative fees. The Authority shall pay CEE within 20 days of receipt of
the invoice.
3. CLIENT’s Obligations
3.1 If requested by CEE, the Authority shall make reasonable efforts to respond
promptly to requests from CEE for information and approvals regarding the
services to be provided under this Agreement.
3.2 If requested by CEE, the Authority shall make reasonable efforts to obtain
information and or permission for access from clients which may be necessary
for CEE to provide the services under this Agreement.
3.3 The Authority shall provide sufficient funding to fund eligible Authority funded
loans. The Authority shall determine the amount of funds allocated to the
Program.
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 3
3.4 The Authority shall establish eligibility for the Authority Funded Program and shall
provide these criteria in writing to CEE prior to commencement of any
marketing efforts.
3.5 The Authority shall make reasonable efforts to respond promptly to requests from
CEE for information and approvals regarding the services to be provided under
this Agreement.
4. CEE’s Obligations
4.1 CEE shall use its best efforts to provide services under this Agreement in a
professional manner consistent with the care and skill used by reputable
members of CEE’s profession.
4.2 CEE, and all of its employees or agents, shall comply with all statutes,
ordinances, rules, regulations and other laws applicable to the provision of
services under this Agreement.
4.3 CEE shall secure all permits and licenses required for performance of the
services under this Agreement.
4.4 CEE shall not engage in discriminatory employment practices against any
employee or applicant for employment and shall in all respects comply with all
federal, state and local laws, regulations and orders, including without limitation,
Chapter 363 of the Minnesota Statutes, as amended from time to time. Failure
to comply with the provisions hereof shall be deemed a material default under
this Agreement.
5. Term and Termination
5.1 Unless earlier terminated as provided in the following paragraphs, this
Agreement shall become effective on , and continue through
12/31/2019.
5.2 This Agreement may be terminated by either party, for any reason or no reason,
immediately upon written notice to the other party. In the event this Agreement
is terminated by CEE prior to the expiration of the term set forth in paragraph
5.1, the Authority shall compensate CEE for all services delivered up the date of
termination and CEE shall provide the Authority with such information as the
Authority may request regarding the status of the Authority Funded Program.
5.3 Any termination of this Agreement shall not release either party from their
respective obligations under sections 7 and 8 of this Agreement.
6. Insurance
6.1 During the term of this Agreement, CEE will obtain and maintain insurance in the
amounts listed below:
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 4
General Liability $2,000,000 Aggregate Limit
Automobile Liability $1,000,000 Combined Single Limit
Excess Liability $1,000,000 Aggregate Limit
Workers Compensation Statutory Limit
7. Liability and Indemnification
7.1 CEE represents that the services to be provided under this Agreement are
reasonable in scope and that CEE has the experience and ability to provide the
services.
7.2 CEE warrants that any services provided hereunder shall be done in a
professional and workmanlike manner.
7.3 CEE shall indemnify, defend and hold harmless Authority and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys’ fees and damages
for death, personal injury and property damage) which Authority may incur as a
result of any act or omission by CEE in providing services under this Agreement.
7.4 Authority shall indemnify, defend and hold harmless CEE and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys’ fees and damages
for death, personal injury and property damage) which CEE may incur as a
result of any act or omission by Authority in discharging its duties under this
Agreement.
8. Confidentiality
Unless otherwise agreed by Authority in writing, CEE shall maintain in confidence and
not disclose to any third party any information obtained regarding the Authority
and/or any of Authority’s clients for which CEE is providing services; provided,
however, that this obligation to maintain confidentiality shall not apply to:
a) Information in the public domain at the time of disclosure;
b) Information which becomes part of the public domain after disclosure
through no fault of CEE; or
c) Information which CEE can demonstrate was known by it prior to the date
of this Agreement.
Notwithstanding the foregoing, CEE shall be entitled to disclose the documents or client
information covered by this paragraph to governmental authorities to the extent CEE
reasonably believes it has a legal obligation to make such disclosures and to the extent
CEE reasonably deems to be necessary; provided, however, that if CEE believes that any
such disclosure is required by law, it shall provide advance notice to the Authority to
provide the Authority with a reasonable opportunity to attempt to obtain an injunction or
other protective order preventing such disclosure.
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 5
9. Relationship of Parties
CEE will provide services as an independent contractor under this Agreement.
Neither CEE, nor any of its employees or agents, shall be considered employees of the
Authority for any purpose, and neither shall CEE be eligible for any compensation or
benefits which the Authority may provide to its employees from time to time. CEE shall
be solely responsible for all employment and other taxes applicable to providing
services hereunder, and the Authority will not withhold any taxes or contributions from
the compensation payable to CEE under this Agreement.
10. Notices
All notices, requests, demands and other communications required to be given in
writing under this Agreement shall be given to the other party in person or by mail as
provided in this section. If delivered personally, notice shall be deemed to have been
duly given on the date of delivery. If delivered by mail, such notice shall be sent via
first class U.S. mail, postage prepaid, to the address set forth at the beginning of this
Agreement or such other address as a party may otherwise request by written notice,
and notice shall be deemed duly given three (3) business days after mailing.
11. Assignment
This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, successors and assigns; provided, however, that neither party shall
assign or transfer in any manner, this Agreement or any portion hereof without the
prior written consent of the other party, and any attempt to assign or transfer without
prior written consent shall be void and of no effect.
12. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of
the State of Minnesota.
13. Miscellaneous
13.1 Headings and captions used in this Agreement are for convenience only and
shall not affect the meaning of this Agreement.
13.2 This Agreement contains the entire agreement of the parties and supersedes all
prior agreements, discussions and representations, written or oral, concerning
the subject matter hereof.
13.3 No waiver by the Authority of any term or condition of this Agreement or any
document referred to herein shall, whether by conduct or otherwise, be
construed as a waiver or release of any other term or condition of this
Agreement.
13.4 This Agreement may only be amended in a written agreement signed by both
parties.
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 6
13.5 Except as expressly set forth in section 7, the rights and benefits under this
Agreement shall inure solely to the benefit of the Authority and CEE, and this
Agreement shall not be construed to give any rights, benefits or causes of
action to any third party.
13.6 The invalidity or partial invalidity of any provision of this Agreement shall not
invalidate the remaining provisions, and the remainder shall be construed as of
the invalidated portion shall have never been a part of this Agreement.
13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13
(Government Data Practices) that are applicable to the Authority and shall not
disseminate any information concerning loan requests of the borrowers without
the prior written approval of the Authority.
13.8 This Agreement may be signed in any number of counterparts, each of which
shall be deemed an original and one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.
The City of ELK RIVER HOUSING and
REDEVELOPMENT AUTHORITY
By: Its:
Print Name
Date:
CENTER FOR ENERGY & ENVIRONMENT
By: Its:
Date: Tax ID # 41-1647799
Exhibit A Page 1
Agreement between Elk River HRA and Center for Energy and Environment
EXHIBIT A
PROGRAM GUIDELINES
This document includes guidelines for the
REVOLVING LOAN PROGRAM
Exhibit A Page 2
Agreement between Elk River HRA and Center for Energy and Environment
CITY of ELK RIVER REVOLVING LOAN PROGRAM GUIDELINES
The Elk River Housing and Redevelopment Authority has funds available for homeowners to make
improvements to their properties. The Elk River Revolving Loan Program is designed to supplement
existing loan programs available from MHFA, CEE, private lenders and other housing resources. This
program is not intended to be the sole source of improvement funds available to the City. Center for
Energy and Environment shall serve as the administrator for the Elk River Loan Program and will secure
the most beneficial financing based on the borrower’s needs independent of the funding source.
Revolving Loan Program
Interest Rate: 3%
Amortization Type: Amortizing (Monthly Payments Required)
Loan Amount: Minimum of $5,000 and Maximum of $25,000.
Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the
size of the loan and the borrower’s ability to repay the loan.
• $5,000 to $15,000 – up to 10 years
• $15,001 to $25,000 – up to 15 years
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Elk River AND the Urban Services District. A recent utility bill may be used to verify the
borrower is in the Urban Services District. Townhomes, Condominiums and properties held in a Trust are
eligible. The property must be at least 20 years old. Property must not be in a flood plain.
Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes, and
properties used for commercial purposes. Properties located in a flood plain. Properties NOT located in
the Urban Services District.
Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens.
TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non-Occupant Co-Borrowers,
and business entities.
Ownership/Occupancy: Owner- occupied only.
Exhibit A Page 3
Agreement between Elk River HRA and Center for Energy and Environment
Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 100% of the property value. Half of the improvement value may be added to the initial
property value. (Most of our programs go up to 110% of after improved value. We add ½ of the value
of improvement value. We use the Estimated Market Value from the most recent property tax
statement, higher of purchase price or appraised value in the past 12 months. We do allow Zillow
values in some programs).
Income Limit: No maximum income limit.
Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt
to income ratio in excess of 50% will be ineligible to receive financing.
Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments
history in the past 12 month period (without reasonable explanation). 2) All real estate taxes must be
current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at
least 18 months prior to loan closing. 5) The redemption period on prior foreclosures must have
occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 90-day
late payments on credit report in the past year (without reasonable explanation). Any 90 day late
requires a documented explanation and reasonable reasons; medical, unemployment, divorce. 7) No
defaulted government loans.
Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding
balance(s) cannot exceed the maximum program limit and previous loans are current and have an
acceptable payment history.
Eligible Use of Funds: Loans may be used to finance most permanent interior and exterior
improvements including, but not limited to: roofing, siding, doors/windows, plumbing, electrical, HVAC,
insulation, solar, garage, driveways, sidewalks/steps, painting, flooring, additions, landscaping, etc.
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment,
saunas, whirlpools, etc.), furniture, non-permanent appliances(unless part of a full kitchen remodel),
and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT
allowed.
Bids: Only one estimate is required. All contractors must be properly licensed.
Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity”
basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to rent
tools/ equipment or compensate for labor.
Remodeling Advisor Visit (RAV): The Remodeling Advisor Visit provides rehabilitation and/or
remodeling advice upon request of the resident. The intent is to help residents improve their homes by
providing technical assistance before and during the bidding and construction process. All “Eligible
Properties” are eligible for this service. This visit is not required.
Formatted: Font color: Red
Exhibit A Page 4
Agreement between Elk River HRA and Center for Energy and Environment
Post Installation Inspection: : Permits must be obtained and signed off by a City inspector where
required; when not required, a post installation inspection will be performed by a City of Elk River
representative to ensure the work has been completed before any funds will be released.
Loan Security: All loans will be secured with a mortgage in favor of the Elk River Housing and
Redevelopment Authority. Borrower will pay all applicable title and filing fees, which may be financed in
the loan amount.
Borrower Fees: Borrower will be responsible for a 1% origination Fee, $50 Document Preparation Fee,
mortgage filing and service fees, flood certificate, credit report fees and any other applicable closing
costs, all which may be financed in the loan amount.
Underwriting Decision: Applicants must have acceptable credit history (see CreditRequirements). CEE
will approve or deny loans based on a credit report, income verification and other criteria as deemed
necessary through CEE’s underwriting guidelines. CEE shall refer to the Elk River HRA for any
questionable situations.
Work Completion: All work must be completed within 120 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case by case basis.
General Program Conditions
Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify.
Applicants must provide a completed application package including, but not limited to:
Completed and signed application form
Proof of income
Bids or estimates for proposed projects
Valid Identification
Other miscellaneous documents CEE may require.
Program Costs: Loan origination, remodeling advisor visit fees and other administrative fees will be paid
out of the Program Budget. Loan program marketing efforts will be billed directly to the City of Elk River
Housing and Redevelopment Authority. Should the HRA choose to commission CEE for marketing
support it will be a separate expense..
Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance
the entire cost of the work. In the event the final cost exceeds the original loan amount, the borrower
must obtain the additional funds and show verification of the additional funds in order to be approved
for the loan.
Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made
upon completion of work. An inspection will be performed by a city inspector and/or representative to
verify the completion of the work. The following items must be received prior to final disbursement of
funds:
• Final invoice or proposal from contractor (or materials list from supplier);
• Final inspection verification by a City Inspector or representative;
Exhibit A Page 5
Agreement between Elk River HRA and Center for Energy and Environment
• Completion certificate(s) signed by borrower, contractor and city inspector or representative (if
a permit is not required);
• Lien waiver for entire cost of work;
• Evidence of city permit (if required)
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CLIENT NAME Loan Servicing Agreement #XXXX
LOAN SERVICING AGREEMENT
This LOAN SERVICING AGREEMENT (“Agreement”) is made by and between CENTER FOR
ENERGY AND ENVIRONMENT, with offices at 212 Third Avenue North, Suite 560, Minneapolis,
Minnesota 55401 (“CEE”) and NAME OF CLIENT, with offices at _________________________
(“Client”).
RECITALS
In consideration of their mutual undertakings and payments provided for herein, the parties recite,
covenant, and agree to the following:
A. CEE is a non-profit corporation engaged in the servicing of development loans; and
represents that it is qualified and authorized to perform the services described herein; and
B. Client originates, purchases, owns, and/or manages loans that benefit economically distressed
or declining areas, disadvantaged persons, neighborhoods or community revitalization, foster
job creation, or other section 501(c)(3) charitable purposes; and
C. CEE is authorized by Client to function as a servicing agent under the terms of this
agreement; and
D. Client now desires to have CEE perform the duties set forth herein for the loans covered by
this Loan Servicing Agreement (the “Agreement”).
NOW, THEREFORE, CEE and Client agree as follows:
1. Duties of CEE
CEE shall, at all times and with respect to all loans identified by Client (the “Client Loans”)
which it has been engaged by the Client to service, employ its normal and regular servicing
activities in the servicing of Client Loans to perform those responsibilities specifically set forth
on Exhibit A (the “Services”). The parties acknowledge that, from time to time, the Services may
be modified at the request of the Client and agreement by CEE. Such changes shall be mutually
agreed upon and are not effective unless agreed to in writing by the execution of a revised Exhibit
A.
2. Effective Date
CEE shall commence servicing activities under this agreement effective on the following date:
_______________, 2018 (“Effective Date”) and shall continue until terminated as provided in
Section 14 of this Agreement.
3. Servicing Compensation and Reimbursement
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CLIENT NAME Loan Servicing Agreement #XXXX
Client shall compensate CEE for the Services in accordance with the fee schedule attached as
Exhibit B of this Agreement and reimburse CEE for any of CEE’s out of pocket third-party costs
of recordation, perfecting or releasing liens, legal costs incurred, servicing of notices,
repossession, foreclosure, and other similar costs paid by CEE on behalf of Client with respect to
CEE’s actions on specific Client Loan(s) (the “Fees”). CEE shall retain any late fee payments
collected from borrower. CEE shall retain fees owed from Fund Remittance as provided in
Exhibit A. CEE shall issue a report to Client showing fees netted with funds remitted to Client.
Following the Initial Term, as hereinafter defined, CEE may increase the Fees from time to time
by providing an updated Exhibit B to Client at least sixty (60) days prior to effective date of the
new fee schedule and no more than one time annually.
4. Initial Boarding of Clients
In making this Agreement, CEE represents, warrants, and agrees to provide Client the
Information for each Client Loan and the loan documents related to the Client Loans upon
request.
For purposes of this Agreement, “Information” shall include the following:
• Borrower Full Name
• Property Address, if Secured
• Loan Amount
• Interest Rate
• Term
• Closing Date
• Monthly Payment Amount
• Payoff Date
• Amortization Schedule
• Closing Documents
• Servicing Records
• Complaint Resolution
• Collections Records (for Delinquent Accounts only)
Client will cooperate with CEE, and provide CEE such information and documents as may be
necessary in CEE’s discretion to perform its duties under this Agreement, reconcile any loan
balance information provided to CEE, and CEE may rely in good faith on information provided to
it by Client.
5. Ongoing Boarding of Client Loans
On a regular basis, following the Effective Date of this Agreement, CEE will notify Client of
newly originated Loans for which it will service under the terms of this Agreement.
Client represents, warrants, and agrees to cooperate with CEE, and provide CEE such information
as may be necessary to perform its duties under this Agreement, reconcile any loan balance
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CLIENT NAME Loan Servicing Agreement #XXXX
information provided to CEE, and CEE may rely in good faith on information provided to it by
Client.
CEE represents, warrants, and agrees to onboard loans accurately according to the provisions
provided by Client and shall, subject to Section 26. Force Majeure of this Agreement, remedy any
onboarding errors within five (5) business days (or such shorter period as may be required by
applicable law) after receipt of notice of such errors.
6. Reports the Property of Client
All reports, documents, and materials delivered by CEE to Client pursuant to this Agreement are
the exclusive property of Client. Client may use any work product prepared by CEE in such
manner, for such purpose, and as often as Client shall deem advisable, in whole, in part, or in
modified form, without further compensation to CEE.
7. Nature of Agreement
CEE shall perform all of its services and duties hereunder at its own expense and without cost or
charge to Client except as expressly provided in Exhibit B of this Agreement.
Governmental Approvals. CEE has obtained and will maintain in full force and effect,
and satisfy at all times, all related eligibility criteria in order to maintain in full force and
effect, without material impairment, suspension or revocation, all municipal, local, or
other applicable governmental approvals, registrations, qualifications, permits, licenses,
and other applicable authorizations that are required or necessary to perform and conduct
the services and CEE’s business in accordance with Applicable Requirements, as
hereinafter defined.
For purposes of this Agreement, “Applicable Requirements” shall mean:
(1) All applicable federal, state, and local legal and regulatory requirements binding
upon CEE related to the performance of the Services;
(2) All other final judicial and administrative judgments, orders, stipulations, awards,
writs, and injunctions applicable to CEE; and
(3) The reasonable and customary practices of prudent loan servicing providers that offer
the same types of services as CEE for the same types of loans serviced by CEE in the
jurisdictions in which CEE operates.
8. Disaster Recovery
CEE shall take all commercially reasonable precautions to mitigate the risks to information
regarding the Client Loans in connection with disruptions to business operations due to fire,
flood, storm, epidemic illness, equipment failure, sabotage, terrorism, natural disaster, disaster
caused by humans, or electronic data system failures;
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CLIENT NAME Loan Servicing Agreement #XXXX
CEE shall keep duplicate records of all electronic information in its possession or control
pertaining to Client Loans and shall store at least one copy of such duplicate records in a site
remote from its main offices in the following manner:
(1) Full backups of daily files for 7 consecutive days (weekly backup);
(2) Full weekly backups rolled into monthly backups;
(3) Monthly backups rolled into yearly files and kept for 7 years from the date loan
is paid off;
(4) Full daily backups of Cloud Data;
(5) Daily Cloud backups rolled up into Monthly files and moved out of the Cloud
into magnetic storage after 30 days;
(6) In the event of a natural disaster or catastrophic failure of CEE’s electronic data
system, CEE shall have a period not to exceed 45 days from the date of such
catastrophe to recover or reconstruct such lost data necessary for compliance with its
disaster recovery obligations.
*The Cloud Provider's policy is subject to change. CEE will notify Client of any
material changes in the event that they affect the security of the loans.
9. Equal Opportunity Employment
CEE shall comply with all applicable provisions of the Equal Credit Opportunity Act (15 U.S.C.
§ 1691 et seq.). CEE is an equal opportunity employer and will not discriminate against any
person on the basis of race, color, creed, religion, sex, national origin, age, disability, marital
status, sexual orientation, status with regards to public assistance, or any other characteristic
protected by law.
10. Compliance
General. CEE shall comply with all Applicable Requirements.
Vendors. From time to time, CEE may engage vendors to perform certain tasks that may be
included in CEE’s performance of the Services. CEE shall follow commercially reasonable
practices designed to ensure that any Services performed by vendors are in compliance with the
Applicable Requirements and this Agreement.
Policies and Procedures. CEE will maintain and follow written internal policies and procedures
related to the Applicable Requirements in connection with providing services to Client, including
without limitation, policies and procedures for internal quality control, employee hiring and
training, and other methods that ensure compliance.
Audit Rights. Client will have the right to audit CEE, at Client’s own expense and not more than
once per calendar year, for purposes of evaluating compliance with the terms of this Agreement.
CEE will require full cooperation and will be responsible for assuring full cooperation by its
employees and vendors in connection with such audits. CEE will and shall cause any vendor that
performs tasks related to the Services to allow Client and its counsel, accountants, and other
representatives, as well as the applicable regulatory authorities of Client, reasonable access upon
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CLIENT NAME Loan Servicing Agreement #XXXX
thirty (30) days advance written notice and only during normal business hours, to all of CEE and
vendors’ files, books and records directly relating to the Services performed for Client under this
Agreement. CEE will provide, and shall require the vendor to provide, to Client, or obtain for
Client, access to such properties, records, and personnel as Client may reasonably require, and
shall provide Client with CEE’s most recent audited financial statements and the names, resumes,
and proof of any required licensures for all relevant personnel employed by CEE , the Client and
its representatives and affiliates shall treat all information obtained in such investigation that is
not otherwise in the public domain as confidential. CEE shall make financial statement audits
available to Client on an annual basis, including any SSAE -16 audits that may be performed on
behalf of CEE. CEE shall remit annual financial statement audit reports to Client upon request.
11. Cooperation.
Client agrees that it shall (a) promptly deliver to CEE (i) any communications that Client receives
from a borrower relating to such borrower’s loan, and (ii) any communication Client receives from
any regulator, state of federal agency or other governmental entity relating to any borrower’s loan that
is being serviced by CEE or otherwise relating to CEE’s loan servicing activities, and (b) cooperate
with CEE regarding any claim, dispute, regulatory examination or investigation related to Client’s
loans and the services provided to Client by CEE under this Agreement.
12. Indemnity
CEE and Client each agree to indemnify, defend, and hold the other and each of their respective officers,
directors, employees, agents, counsel, advisors, and representatives (each, an “Indemnified Party”)
harmless from and against any and all claims, losses, penalties, fines, forfeitures, legal fees and related
costs, judgments, and any other costs, fees, and expenses incurred by Indemnified Party arising out of
any actions, demands, investigations, proceedings, claims, counterclaims, or defenses, made by or on
behalf of any third party related to the failure of CEE or Client to perform its duties in compliance with
the terms of this Agreement. Notwithstanding the foregoing, neither CEE nor Client shall indemnify any
such Indemnified Party if such acts, omissions, or alleged acts constitute fraud, gross negligence, willful
misconduct, or breach of fiduciary duty by such Indemnified Party. Neither CEE nor Client shall have an
obligation to appear with respect to, prosecute, or defend any legal action which is not incidental to this
Agreement.
12. Taxes. Neither CEE nor Client shall be responsible to the other party for any taxes owed by such
party, including, without limitation, any federal, state, or local income or franchise taxes or other taxes,
imposed on or measured by income received by such party (or any interest or penalties with respect
thereto or arising from a failure to comply therewith) that are required to be paid by such party in
connection herewith to any taxing authority.
13. Reliance. CEE and Client, and any director, officer, employee, or agent of CEE or Client
respectively, may rely on any document of any kind which it, in good faith, reasonably believes to be
genuine and to have been adopted or signed by the proper authorities or persons respecting any matters
arising hereunder.
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CLIENT NAME Loan Servicing Agreement #XXXX
14. Insurance
During the term of this Agreement, CEE will obtain and maintain insurance in the amounts listed
below:
General Liability $2,000,000 Aggregate Limit
Automobile Liability $1,000,000 Combined Single Limit
Excess Liability $1,000,000 Aggregate Limit
Professional Liability $1,000,000 Aggregate Limit
Workers Compensation Statutory Limit
15. Limitation of Liability
CEE’s role is strictly limited to the Services. Client will be solely responsible for making all
decisions concerning the management of the Client Loans. At all times, Client will be responsible
for the accuracy of all information provided to CEE, and CEE may rely on any document of any
kind which it, in good faith, reasonably believes to be genuine and to have been adopted or signed
by the proper authorities or persons respecting any matters arising hereunder. The sole duty of
CEE is to exercise ordinary care in its performance of the obligations described in this
Agreement. Client agrees that CEE, its officers, directors, agents, and employees (“CEE
Representatives”) will not be liable for events or circumstances beyond their reasonable control.
Client and CEE agree that clerical errors and mistakes in judgment do not constitute a failure to
exercise ordinary care or to act in good faith.
Neither party shall be liable to the other or any other person for any indirect, incidental,
consequential, punitive or special damages whatsoever (including without limitation, any
damages claimed for loss of income, revenue, or profits or for loss of goodwill) arising from or
related to services provided pursuant to this agreement. The exclusive remedy available to Client
shall be the right to pursue claims for actual damages that are directly caused by acts or omissions
that are breaches by CEE of its duties under this agreement. Notwithstanding anything to the
contrary in this Agreement, CEE’s total aggregate liability arising out of or related to this
Agreement shall not exceed the total amount of fees paid by Client to CEE pursuant to this
agreement during the twelve (12) months immediately preceding the event giving rise to such
action, excluding any third party costs.
16. Term of Agreement: Termination
The initial term shall commence on the Effective Date and continue for a period of three (3) years
(the “Initial Term”). Thereafter, the Agreement shall automatically renew for successive one (1)
year periods, unless CEE or Client provides written notice of non-renewal or amendment to the
other party at least sixty (60) days before the end of the then current term. Notwithstanding the
preceding, on the date corresponding to sixty days prior to the initial three-year anniversary, the
contract will automatically extend to the next one-year anniversary date, unless notice of
termination is given as specified in the following paragraph.
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CLIENT NAME Loan Servicing Agreement #XXXX
Either Client or CEE may terminate servicing by CEE with respect to any Client Loan or
all Client Loans upon (a) ninety (90) days prior written notice delivered to the other party via
email (and duly acknowledged by the other party) or (b) upon the occurrence of a CEE
Termination Event (as defined below). Upon such termination, CEE shall promptly supply
appropriate reports, documents, promissory notes, and other information as requested by Client or
any person or entity designated by Client and shall use its commercial best efforts to effect the
orderly and efficient transfer or servicing to the Client or a new servicer designated by Client
subject to the fees described in Exhibit B.
If any of the following events with respect to CEE shall occur and be continuing, it shall be a
“Termination Event”:
A. Any failure by CEE to remit any payment required to be made under the terms of the
Agreement which continues un-remedied for a period of ten (10) business days after
such payment was required to be made (and such cured failure shall not be deemed a
Termination Event); provided, however, that any such failure shall not constitute a
Termination Event if such delay or failure could not have been prevented by the
exercise of reasonable diligence by CEE, or such delay or failure was caused by
events subject to Section 26. Force Majeure; or
B. Any material breach by CEE or Client of their respective representations and
warranties contained herein that materially and adversely affects the interests of the
other, or any failure on the part of CEE or Client to observe or perform in any
material respect any of the covenants or agreements other than as described in
subsection A of this Section 14 and that continues un-remedied for a period of thirty
(30) days after the date on which notice of such breach, requiring the same to be
remedied, shall have been given to by the non-breaching party to the breaching party;
provided, however, that if the breaching party certifies to the non-breaching party
that it has in good faith attempted to remedy such breach, such cure period will be
extended to the extent necessary to permit breaching party to cure such breach; or
C. CEE or Client shall suffer a material adverse change in its financial condition that
affects its ability to perform its obligations under this Agreement; or
D. CEE or Client is subject to a bankruptcy or other proceeding relating to its liquidation
or insolvency, or a decree or order of a court or agency or supervisory authority
having jurisdiction for the appointment of a conservator or receiver or liquidator in
any insolvency, readjustment of debt, marshaling of assets and liabilities or similar
proceedings, or for the winding-up or liquidation of its affairs, shall have been
entered against CEE or Client and such decree or order shall have remained in force,
undischarged or un-stayed for a period of sixty (60) days; or
E. CEE or Client shall consent to the appointment of a conservator or receiver or
liquidator in any insolvency, readjustment of debt, marshaling of assets or liabilities,
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CLIENT NAME Loan Servicing Agreement #XXXX
or similar proceedings of or relating to CEE or Client or of or relating to all or
substantially all of such party’s property; or
F. CEE or Client shall admit in writing its inability to pay its debts as they become due,
file a petition to take advantage of any application insolvency or reorganization
statute, make an assignment for the benefit of its creditors, or voluntarily suspend
payment of its obligations.
17. Assignment of Rights
This Agreement may not be assigned by Client except with prior written consent of CEE, which
consent shall not to be unreasonably withheld. CEE may not assign its rights under this
Agreement without the prior written consent of Client.
18. Independent Contractor
Nothing herein contained shall be deemed or construed to create a co-partnership or joint venture
between the parties hereto and the services of CEE shall be rendered as an independent contractor
and not as an agent for Client, its successors and assigns, or any obligors or noteholders under the
Client Loans.
19. Amendments
This Agreement may not be amended or modified except by a written agreement signed by the
parties in interest at the time of such modification. Notwithstanding the foregoing, CEE may
adjust the Fees by providing an updated Exhibit B as set for in Section 3 and all other Schedules
may be changed by mutual agreement.
20. Confidentiality
Neither Client nor CEE shall disclose or use any Confidential Information of the other party or its
affiliates, and each party will keep such Confidential Information confidential and will require
that its affiliates, officers, employees, contractors, vendors, and advisors who have access to such
Confidential Information comply with such non-disclosure and non-use obligations.
Notwithstanding the forgoing, Client or CEE may provide such Confidential Information
as required pursuant to a court or administrative subpoena, court order or other such legal
process or requirement of law; provided, however, that it shall endeavor to promptly
notify the other of such request, order or requirement, unless such notice is prohibited by
statute, rule, or court order. Nothing herein shall require either Client or CEE to fail to
honor a subpoena, court or administrative order, or a requirement of law on a timely
basis.
Notwithstanding this section, CEE is expressly permitted to release information to
borrowers upon written request regarding their specific loans; and, following receipt of
borrower’s written authorization to release information, CEE is expressly authorized to
release such information regarding that borrower's loan to a third party.
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CLIENT NAME Loan Servicing Agreement #XXXX
CEE shall cause vendors, if any, not to use or disclose any Confidential Information of
Client except in compliance with this Agreement. Notwithstanding the foregoing, a
vendor may disclose Confidential Information as required pursuant to a court or
administrative subpoena, order or other such legal process or requirement of law;
provided, however, that it shall first notify Client of such request or requirement, unless
such notice is prohibited by statute, rule or court order. CEE shall not, on Client’s behalf,
require a vendor to fail to honor a subpoena, court or administrative order, or a
requirement of law on a timely basis. CEE shall also cause vendors not to remove any
Confidential Information from Client premises without Client’s prior written
authorization.
Each party shall limit access to the other party’s Confidential Information to only those of
its employees and agents who require such access in performing their duties hereunder.
CEE agrees to either return the Confidential Information to Client or destroy the
Confidential Information upon completion of the work or, in any event, upon termination
of the Agreement between the parties. Except as expressly provided in this Agreement,
no ownership or license rights are granted in any Confidential Information.
Notwithstanding anything to the contrary in this Agreement, Confidential Information
may be disclosed to a party’s accountants, attorneys, insurers, regulators and consultants.
Notwithstanding the foregoing, a party may retain one archival copy of Confidential
Information that may be used solely to demonstrate compliance with this Agreement,
Applicable Law, and internal policies and procedures.
“Confidential Information” for purposes of this agreement, shall mean any information of
CEE, Client, or their respective affiliates, whether written or oral, including:
A. Financial Information, marketing plans, and personnel records;
B. Technical and non-technical data, including without limitation, customer
lists, customer information, costumer non-public information, fee schedules,
forms, information, business and management methods, trade secrets,
compilation and analysis of financial information and data to prepare and
submit bids and proposals to third parties;
C. Other proprietary or confidential information;
D. Proprietary computer software, management information and information
systems, whether or not such Confidential Information is disclosed or
otherwise made available to one party or other pursuant to this Agreement;
E. Terms and provisions of this Agreement and any transaction or document
executed by the parties pursuant to this Agreement.
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CLIENT NAME Loan Servicing Agreement #XXXX
“Confidential Information” shall not include the following:
A. Information that is or becomes generally available to and known by the
public (other than as a result of an unpermitted disclosure directly or
indirectly by the receiving party or its affiliates, advisors, or representatives);
B. Information that is or becomes available to the receiving party on a non-
confidential basis from a source other than the disclosing party or its
affiliates, advisors, or representatives, provided that such source is not and
was not bound by a confidentiality agreement with or other obligation of
secrecy to the disclosing party of which the receiving party has knowledge at
the time of the disclosure; or
C. Information that has already been or is hereafter independently acquired or
developed by the receiving party without violating any confidentiality
agreement with or obligation secrecy to the disclosing party.
21. Attorney In-Fact. To enable CEE to carry out its obligations under this Agreement, Client hereby
a. authorizes CEE (and its third party contractors) on behalf of Client to communicate as
Client’s agent with (i) borrowers, guarantors, and others obligated in connection with a
Loan by electronic means or otherwise, (ii) credit reporting bureaus and consumer
reporting agencies selected by CEE, and (iii) to do or perform any other acts for purposes
of carrying out its obligations hereunder, and
b. appoints CEE as Client’s lawful attorney in fact to sign in the name of Client such
documents as are necessary or appropriate for CEE to perform its obligations as
contemplated under this Agreement, including without limitation checks and other
documents necessary to process payments, proof of claims, and such other documents as
Client may approve in writing, which approval shall not be unreasonably withheld or
delayed. For the avoidance of doubt, such power-of-attorney shall be revocable, in whole
or in part, at the sole discretion of Client; provided that, upon any such revocation, CEE
shall not be liable for failure to perform any obligations under this Agreement for which
such power-of-attorney is necessary, and such failure may be considered by CEE in its
sole discretion as a basis on which to terminate this Agreement.
22. Transfers. Client shall provide CEE with all authorizations and information, and shall take all such
further steps as may be necessary, in order to authorize and enable CEE to initiate the movement of
funds by automated clearing house (“ACH”) or other electronic funds transfer.
23. Notices
All notices and communications as part of this Agreement must be in writing and, except as
otherwise agreed in writing, must be delivered, mailed, faxed, or emailed, to the following
addresses:
If to CEE:
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CLIENT NAME Loan Servicing Agreement #XXXX
Center for Energy and Environment
212 3rd Avenue North, Suite 560
Minneapolis, MN 55401
Attn: Ryan Ellis
Phone: 612.335.5862
Email: rellis@mncee.org
If to Client:
Client Name Here
Client Address
Client Address
Client Contact
Client Phone
Client Email
24. Governing Law
This Agreement and each transaction consummated hereunder shall be deemed to be made under
the internal laws of the State of Minnesota and shall be construed in accordance with and
governed by the laws of the State of Minnesota, without regard to the choice of law rules of that
state, except to the extent that any such laws may now or hereafter be preempted by Federal law.
25. Counterparts
This Agreement may be executed in several counterparts, each which shall be deemed an original,
and all of which shall together constitute one and the same instrument.
26. Force Majeure
CEE and Client shall be excused from performing in accordance with the agreement in the event
of an occurrence of “Force Majeure”. Force Majeure is defined as fire, floods, earthquake,
tornado, explosion, catastrophe, accident, war or ware-like operations (whether or not a state of
war is declared), riot, Acts of God, acts of terrorism, insurrection, order of a Governmental Body
and Applicable Laws that prevent performance, to the extent (i) such event of Force Majeure is
beyond the reasonable control of the Party claiming Force Majeure, and (ii) the Party claiming
Force Majeure gives prompt written notice of the same to the other Party. In the event of any
such delay, the sole remedy shall be a time extension for the completion dates required by the
Agreement, which extension shall be the time period lost by reason of the Force Majeure.
27. Entire Agreement
This Agreement (including the Exhibits to this Agreement), the Company Disclosure Letter and
the Confidentiality Agreement constitute the entire agreement among the parties with respect to
the subject matter of this Agreement and supersede all other prior agreements and understandings,
both written and oral, among the parties to this Agreement with respect to the subject matter of
this Agreement. In the event of any inconsistency between the statements in the body of this
Agreement, the Confidentiality Agreement and the Company Disclosure Letter (other than an
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CLIENT NAME Loan Servicing Agreement #XXXX
exception expressly set forth as such in the Company Disclosure Letter), the statements in the
body of this Agreement will control.
28. Authorized Persons
CEE will provide a single login user name and password (together with any Client created user
name and/or password, the “Credentials”) to Client for purposes of accessing CEE’s system
(“Portal”) to obtain reporting regarding Client Loans. Client is encouraged to create its own
unique Credentials for use in accessing the Portal promptly after receipt of Credentials from CEE.
Client shall be solely responsible for the use and protection of the Credentials. Client agrees to
maintain the confidentiality of the Credentials.
Client agrees that it shall be liable for all transactions initiated and authorized by means of the
Credentials, whether or not actually authorized by the Client. Client further agrees that any
person using the Credentials to access the Portal shall be deemed to be duly authorized by Client
and such person using the Credentials shall be deemed to have full authority to act on behalf of
Client. Client agrees to maintain a proper and complete log of individuals to whom it has
provided access to Client portal and receipt of reports with respect to Client Loans or Client
reports. Client shall promptly modify the Credentials in the event that any person to whom it has
given the Credentials is no longer employed by or otherwise affiliated with Client.
Client shall appoint one or more officers or employees who are authorized to act on behalf of
Client regarding this Agreement and the services provided by CEE hereunder (“Authorized
Users”). CEE shall not be responsible for any correspondence with or access provided to any
Authorized User. Client may add or remove Authorized Users by written notice to CEE. CEE
may rely on any action taken by an Authorized User until an Authorized User’s authorization has
been revoked by Client by written notice to CEE. CEE shall have a reasonable time to process
any revocation received pursuant to this section.
Client’s agrees that the failure to protect Credentials may allow an unauthorized party to (i) use
the services provided by CEE, (ii) access Client’s electronic communications and financial data,
and (iii) send or receive information and communications on behalf of the Client. Unencrypted
electronic transmissions are not secure, and Client assumes the entire risk for unauthorized use of
Credentials and any unencrypted electronic transmissions. Client undertakes no obligation to
monitor transactions initiated by valid Credentials to determine that they are made on behalf of or
authorized by Client.
29. Records
Except to the extent otherwise required by Applicable Law, CEE shall retain all records relating
to a Client Loan for at least one (1) year following termination of this Agreement or one (1) year
from maturity or payoff of a Client Loan unless such documentation is requested by and delivered
to Client at an earlier date. The records will be maintained in either hard copy or machine-
readable (electronic) format. In the event CEE is no longer in existence, its successor shall
continue to retain such records as provided above or deliver the records to Client.
30. Deconversion
13 | Page
CLIENT NAME Loan Servicing Agreement #XXXX
In the event of termination of this Agreement, CEE will continue to service all existing Client
Loans at the time of termination, at the fees in place at the time of termination. If Client desires to
transfer the duties under this Agreement to a new servicer, CEE agrees to provide Client with
electronic copies of the Client Loan records in CEE’s standard format at the current rate being
charge on a per loan charge by CEE, as well as any additional time charged on a per hour basis.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date written below.
CENTER FOR ENERGY AND
ENVIRONMENT
By _____________________________
[Insert Name]
Its: ____________________________
CLIENT NAME HERE
By _____________________________
[Insert Name]
Its: ____________________________
1 | Page
CLIENT NAME Loan Servicing Agreement #XXXX
LOAN SERVICING AGREEMENT
Exhibit A: Duties of Servicer
NEW LOAN SET UP
Loan Boarding
CEE will board the loan upon origination into CEE’s servicing system. For any unsecured loan,
CEE will board the new loan within three (3) Business days of origination. For any secured loan,
CEE will board the new loan within three (3) Business days after the expiration of the right of
rescission. CEE will confirm the funding pool and assure that the new loan draws off the correct
pool.
For purposes of this Agreement, “business days” means calendar days other than weekends,
official federal holidays, and non-banking holidays.
Reporting
CEE will report every loan to at least one of the three major credit agencies upon inception as it
may designate in its sole discretion.
Quality Control Review
The loan and ACH entry instruction will be reviewed prior to activation to verify the servicing
system matches the terms of the promissory note and any other programmatic requirements per
the documents submitted.
Welcome Letter
A welcome letter will be sent to borrowers within five (5) business days after boarding. This
letter shall include the toll free customer service number as well as an email address that is
available for borrowers to use should they have a question regarding their loan. Customer service
is available from 8:00 AM to 4:30 PM Central Time, on “business days”. An automatic ACH
enrollment form is included in the letter for borrowers to complete and return to CEE if they
would like recurring payments to be initiated automatically by CEE. The letter will also contain
instructions for borrowers to receive access to the online loan portal where they have access to all
their loan information and ability to make payments.
STANDARD SERVICING –AMORTIZING/DEFERRED
Billing
Borrowers with loans that have regularly scheduled payments will receive billing statements on a
monthly basis or other appropriate frequency based on terms of the promissory note.
Collection of Loan payments
2 | Page
CLIENT NAME Loan Servicing Agreement #XXXX
CEE shall collect payments of principal, interest and any appropriate fees. CEE shall confirm the
application of payments to be consistent with the loan documents as part of ongoing due
diligence.
Customer Service
CEE shall provide customer service to borrowers from 8:00AM – 4:30 PM Central Time on
“business days”. The customer service team is available through the toll free phone number or
email at xxx@mncee.org. Borrowers will receive a response within five (5) business days
following a question submitted to CEE. Borrowers are able to view loan information on the loan
portal as well as schedule payments.
Past Due Collections
CEE will make reasonable efforts to maintain loans in a current status and will deal promptly
with those which are delinquent in accordance with the Collection Activity section below. CEE
will process loan defaults as directed by Client.
Reporting
CEE will provide standard monthly reporting for the prior month’s activities to Client no later
than the 10th business day of each month. The standard reports are as listed:
o Loan Trial Balance
o Aged Delinquency
o Principal and Interest Collections
o New Loan
o Paid Loan
o Fee Scheduled
o Fee Earned
Special reports may be added at an additional cost for programming. (See Exhibit B for pricing)
IRS Reporting
CEE shall provide borrowers with the required IRS annual tax reporting.
Funds Remittance
CEE shall remit collected funds less servicing and other applicable fees and any late charges
assessed to borrower by the 10th business day of the month. Late charges will be retained by
CEE. Funds will be remitted via ACH. An invoice will be distributed detailing the servicing fees.
CEE shall remit such funds by means of ACH or other electronic funds transfer to an account
designated by Client.
COLLECTION ACTIVITY
Early Delinquency
3 | Page
CLIENT NAME Loan Servicing Agreement #XXXX
CEE will make reasonable efforts to maintain loans in a current status and will make reasonable
periodic efforts to contact borrowers who are delinquent, in order to encourage payment. Such
efforts will be limited to those loans that are no more than 90 days past due.
o CEE will follow customary, usual and prudent business practices in servicing
delinquent loans.
o CEE will send delinquency letters for loans 31- 60 days past due.
o CEE will continue sending letters and begin phone calls for loans 61-90 days past
due.
Late Delinquency
CEE will make reasonable efforts to contact Borrowers, solicit payments, and return loans to a
current status, where the loan has reached 90 or more days past due, in order to encourage
payment.
o CEE will follow customary, usual and prudent business practices in servicing
delinquent loans.
o CEE will send formal default letters for loans reaching 120 or more days past
due.
o CEE shall continue phone calls to borrower at 90 days past due.
o After 120 days past due, Client shall determine next steps and CEE shall have no
obligation to take further action regarding delinquent loans until directed by
Client.
DEFAULT MANAGEMENT
Client shall be solely responsible for declaring a loan to be in default, and determining whether a loan is
to be charged-off.
Loan Modifications
CEE shall respond to Client or Borrower requests for modifications to their loan terms, including
Repayment Plans, Forbearance Agreements, Deferments, Extensions, Short Sales (Pre-
Foreclosure Sales), or Negotiated Releases of collateral, obligors or guarantors (each a “Loan
Modification”).
CEE shall make no decisions independent of the Client. Client shall have final approval of any
Loan Modifications, unless Client has instructed CEE in writing that it may approve Loan
Modifications pursuant to criteria established by Client.
CEE will follow customary, usual and prudent business practices in its review and processing of
Loan Modifications, and keep Client informed of the status of such requests.
Both Client and CEE recognize that time is of the essence in responding to and approving or
declining Loan Modification requests.
4 | Page
CLIENT NAME Loan Servicing Agreement #XXXX
CEE shall monitor Borrowers for compliance with the terms of the loan modification and make
such changes to the loan record as required by the modification terms.
Special Servicing
CEE shall perform special servicing actions and steps at the direction of the Client for loans
subject to formal legal proceedings, including Bankruptcy, Foreclosure, Deed-in-lieu of
Foreclosure, Collections suits, Repossession, and Charge-offs involving either an obligor(s) or
guarantor(s).
CEE shall make no decisions or take actions independent of the Client, who shall have
final say in approval of any Special Servicing actions (other than routine steps taken to
protect or preserve Clients interests), unless Client has instructed CEE in writing that it
may approve and take such actions.
CEE must employ staff with expertise in the above areas and maintain compliance with
all applicable regulations.
CEE will follow customary, usual and prudent business practices in its review, processing, and
management of Special Servicing of Client loans, and keep Client informed of the status of loans
subject to Special Servicing.
Both Client and CEE recognize that time is of the essence in responding to and approving or
declining Special Servicing Actions.
CEE shall monitor Borrowers who are subject to Special Servicing, consistent with the governing
legal proceedings or requirements, and make such changes to the loan record as required to reflect
the Special Servicing requirements. With respect to Bankruptcy, the Special Servicing shall
include Filings, Proof of Claim, Repayment Plan setup and monitoring, and discharge/completion
processing. (See Exhibit B for pricing)
Other Servicing
CEE shall perform the following additional servicing actions and steps for loans as requested
by Client. CEE will follow customary, usual and prudent business practices in providing these
services. The Client shall bear all of CEE’s out of pocket costs for third parties related to these
items. CEE will notify Client of the potential out of pocket costs prior to performing any of the
additional actions.
o REO Marketing
o Insurance Inspections
o Default Inspections
o Property Valuation or Appraisal
o Property Preservation and security
SUBORDINATION PREPARATION
5 | Page
CLIENT NAME Loan Servicing Agreement #XXXX
CEE will review subordination requests in accordance with the Client’s subordination program
requirements. Subordinations will be forwarded to the Client for signature if request meets the
program requirements. Fees related to the subordination are paid by borrowers.
MORTGAGE SATISFACTION PREPARATION
Loan Payoffs
CEE will process loan payoffs, issue payoff statements as requested by authorized individuals
within 30 calendar days and remit funds to Client. CEE shall draft mortgage satisfactions
(“Satisfaction”) within 30 calendar days after loan is paid in full to ensure funds received are
cleared. The Satisfaction is then sent to client for signature. CEE shall provide instructions to
borrowers as to how to properly record the Satisfaction. In the event that $5 (five dollars) or less
of principle balance remains, CEE and Client will not attempt to collect the remaining fee and
will consider the loan as satisfied.
FINAL/SPECIAL PROCESSING TRANSACTIONS
CEE shall charge additional fees in special circumstances such as a charge-off, foreclosure,
servicing release, or any other transaction that is processed on a loan that is not paid in full but is
no longer an active loan on the servicing system. This does NOT include processing a paid in full
transaction.
1 | Page
CLIENT NAME Loan Servicing Contract #XXXX
LOAN SERVING CONTRACT
Exhibit B: Pricing Schedule
Activity Description Pricing
New Loan Setup Loan Boarded to servicing system and
quality control review, welcome letter $ 20.00 one-time fee per loan
Standard Servicing Activities –
Amortizing Loans
Payment processing, billing notices,
customer service, investor reporting,
early collections
$6.00 per loan per month
Standard Servicing Activities-
Deferred Loans
Payment processing, customer service,
investor reporting $0 per loan per month
Collection Activity Collection Work for loans past due
15-90 days
$3.00 per loan per month on all
amortizing loans
Default Management
Example of activities: Repayment
Plan, Forbearance Agreement,
Deferment, Extension
$80.00 per hour plus any charges that
may be incurred from 3rd party
vendor.
Subordination Preparation Review request and Prepare
subordination document $150.00 per request (Borrower Paid)
Mortgage/Deed of Trust Satisfaction
Preparation
Create mortgage/deed of trust
satisfaction (excludes recording /
filing fees)
$30.00 one-time fee per loan
Final /Special Processing Transaction
For Charge-off, foreclosure, service
release, loans not paid in full but no
longer active on the servicing system
$25.00 per transaction
Conversion/On-Boarding Boarding Loans previously serviced
by a different company $20.00 one-time fee per loan
Optional/Additional Services
Special Report Programming Special report creation not included in
standard report package
$150.00 one time fee per report
Special Reporting Distribution Monthly maintenance for special
reports created for distribution $75.00 one time fee per report
Special Project work Special requests, such as assistance in
audit preparation, special mailings
etc...
$80.00 per hour plus any charges that
may be incurred from 3rd party
vendor.
Non Standard Servicing Activities Any additional activities required
for servicing a loan not specified in
contract
$80.00 per hour, fee will be set
based on time to complete task on
a regular basis
01/11/2019
Bob Blue
800 Cleveland Av.
Deephaven, MN 44070
Account Number: 2150
Dear Bob Blue,
We would like to use this opportunity to formally thank you, and welcome you as the newest member of the Center for
Energy and Environment family. At CEE, we work hard to make sure that you have all the tools and information that you
need to manage your loan. We understand that loan documents are long and complicated, and that finding basic
information about your account may not be an easy task, so we put together important information about your loan and
how to make your payments.
Basic Information About your Loan:
1- Your Loan Number is: 2150
2- Your Loan Amount is: $6,500.00
3- Your Interest Rate is: 0%
4- Your Loan was Closed on: 03/26/2014
5- The Scheduled Term of your Loan is: 1 months
6- Your First Payment is Due On: 03/26/2029
7- Your Scheduled Maturity Date is: 03/26/2029
8- Your Monthly Payment Amount is: $6,500.00
How to make your payments:
Payment via check : please mail your payment to the address below and make sure to include your loan number and
any specific instructions in the memo line of your check, along with the payment coupon at the bottom of your monthly
billing statement:
Center for Energy and Environment
212 Third Avenue North, Suite 560
Minneapolis, MN 55401
Automatic Monthly Payments: a convenient way to make sure that your payment is always on time, without the
hassle of mailing a check. You can enroll your account for Automatic Monthly Payments via ACH, at no cost to you.
We will process your payment, every month on the same date, until your loan is paid in full or you decide to cancel
this convenient service. Please let us know if you are interested in this option, we will be more than glad to guide you
through the steps and provide you with any information that you may need. For your convenience, we have included
a copy of our Automatic ACH Enrollment Form along with this letter. You can fill it out, attach a "VOID" check and mail
it back to us at:
Attn: Loan Servicing Department
Center for Energy and Environment
212 Third Avenue North, Suite 560
Minneapolis, MN 55401
Phone Payment: You can give us a call, and we can schedule and process a payment for you, through your
checking or savings account, over the phone at your convenience. There is no cost for this service and you can reach
us at any time during business hours (8:00am to 4:30pm Central Standard Time Monday to Friday ). You can
reach us at 855-296-5626.
On-Line Payments: Our Servicing Portal combines the convenience of ACH payments (directly from your checking
or savings account) and the flexibility of the Internet to give you 24/7 access to our payment system and many other
services. Enrolling for on-line access is a fast and easy process that will put many of our services at the tip of your
hands. You can access our servicing portal at https://mncee.loanpro.software.
Questions, Disputes, Service Requests, Comments or Complaints: We are here to help you in anything you need, so
please feel free to contact us at any time with any questions, concerns or requests. You can reach us by using any of the
following methods:
Over the phone:
Call us at 1-855-296-5626
From 8:00am to 4:30pm
Monday to Friday
By Mail:
Attn: Loan Servicing Department
Center for Energy and Environment
212 Third Avenue North, Suite 560
Minneapolis, MN 55401
Via email:
LoanServicing@mncee.org
Once again, thank you for your business and welcome to the CEE family.
Your friends at Center for Energy and Environment
Center for Energy and Environment | 212 Third Avenue North, Suite 560 | Minneapolis, MN 55401
Ph.: 855-296-5626 | Fax: 612-455-7805 | https://mncee.loanpro.software | loanservicing@mncee.org
LS001 05/15/2018
Statement
01/11/2019
Bob Blue
212 3rd Avenue North
Minneapolis, MN 55401
Loan #: 2150
Date Description Amount Unpaid Principal Balance
03/26/2014 Original Loan Amount at Closing $6,500.00*
03/26/2029 First Payment due on 03/26/2029 $6,500.00*
01/11/2019 Unpaid Principal Balance as of Billing Date ( 01/11/2019 ) $6,500.00*
First Billing Date Monthly Payment First Due Date First Payment Amount Total Amount Due
01/11/2019 $6,500.00*03/26/2029*$6,500.00*$6,500.00*
Center for Energy and Environment | 212 Third Avenue North, Suite 560 | Minneapolis, MN 55401
Phone: 855-296-5626 | Fax: 612.455.7805 | loanservicing@mncee.org | mncee.loanpro.software
-------------------- Please Detach this Portion and Return it with your Payment --------------------
[ ] Please enroll me in Paperless Statements: Initials: ___________ Date: ___________________________
Bob Blue
212 3rd Avenue North
Minneapolis, MN 55401
Please Make your Check Payable to: Payment Information Loan #: 2150*
Center for Energy and Environment Payment Due on: 03/26/2029*
Loan Servicing Department Total Amount Due: $6,500.00*
212 Third Avenue North, Suite 560 Extra to Principal:
Minneapolis, MN 55401 Amount Enclosed:
AUTOMATIC MONTHLY PAYMENT ENROLLMENT FORM
Loan # 2150
Bob Blue
800 Cleveland Av.
Deephaven, MN 44070
Automatic Monthly Payment is a practical and easy way to stay on top of your loan and make sure that your monthly
payment is always on time. You get to choose a withdrawal date (from 6 predetermined dates), and we will process your
monthly payment through your bank account -via ACH- every month on the same date, until your loan is paid in full or you
cancel the service. All you need to do is fill the information below, attach a void check to this form, and we will take
care of the rest.
1- Bank Account Information for Automatic Payments:
Bank Account Information:
Bank Name: Routing # (ABA):
Bank City: Account Number:
Bank State: Name on Account:
Type of Account: Checking ⌈ ⌋ Savings ⌈ ⌋
2- Withdrawal Settings:
Withdrawal Information:
Please choose 1 of the Available Withdrawal Dates:
Monthly Payment Amount:$ 6,500.00 5th of each month 15th of each month
Additional to Principal: 10th of each month 20th of each month
Total Withdrawal Amount: 25th of each month 30th of each month
First Withdrawal Date:
I understand that by signing this form and providing this information I authorize Center for Energy and Environment,CEE to initiate an electronic
automatic withdrawal from my bank account (via ACH) every month on the date specified above (or the next business day if said date falls on a
Saturday, Sunday or a Non-Banking Holiday), until I cancel this authorization in writing or my loan is paid in full. I understand that it is my
responsibility to keep enough funds in my account to cover this payment every month (cancellation notice should be received at least 10
business days before the next scheduled automatic withdrawal). And I understand that, if for any reason, my bank refuses to honor any
scheduled transactions I am still liable for the payment, and I need to make immediate arrangements with CEE to cover the unpaid installment. In
the event of my bank refusing payment of any transaction resulting from this authorization, I agree to be charged a $25.00 Non Sufficient Funds
fee for such transaction.
I certify that I am the owner or the authorized user of this bank account, and that I will not dispute or recall any of the scheduled transactions
through my financial institution, as long as these transactions comply with the terms agreed in this authorization form.
Name: Date: Signature:
Center for Energy and Environment | 212 Third Avenue North, Suite 560 | Minneapolis, MN 55401
Ph.: 1-855-296-5626 | Fax: 612-455-7805 | www.mncee.org | https://mncee.loanpro.software | loanservicing@mncee.org
Form LS003 05/15/2018
Online Access Enrollment Agreement
2150
Bob Blue
212 3rd Avenue North
Deephaven, MN 44070
I authorize the Center for Energy and Environment, CEE, to activate online access to my account and create a user name
and password according to the information provided below. I agree to be the only user of this account and to use my online
access as a tool to help me manage my loan. I understand that my user name and password are confidential and that
sharing them with unauthorized users will grant those users access to my private information. I understand that sharing my
user name and password with an unauthorized user is a breach of this agreement and that CEE is not liable for the misuse
of any information obtained by such unauthorized user. I understand that the breach of this agreement gives CEE the right
to close my online access in order to prevent data loss and protect my private information as well as the information of
other borrowers.
User Name:
Temporary Password:
Password Requirements:
*Minimum length of 7 characters, at least 1 uppercase letter, at least 1 lowercase letter and at least 1 number
Important: Please change your temporary password at your first login in order to safeguard the confidentiality of your
account and protect your private information.
I certify that I am the owner of this account and that I have the authority to sign this Online Access Agreement.
Authorizing Borrower:
Name: Loan Number: 2150
Date of Birth: Last 4 of SSN:
Borrower's Signature: Date:
We are committed to the environment and we would like to invite you to be a part of our commitment and sign up for
Paperless Billing Statements . When you sign up, a PDF copy of your billing statement will be available for you every
month in the DOCUMENTS section of your online access. We will send you an email notification to let you know that a
new statement is ready for review, and together we will help save trees and reduce our carbon footprint .
Yes, I would like to sign up for Paperless Billing Statements. Initials: Date:
Center for Energy and Environment | 212 Third Avenue North, Suite 560 | Minneapolis, MN 55401
Ph.: 1-855-296-5626 | Fax: 612-455-7805 | www.mncee.org | https://mncee.loanpro.software | loanservicing@mncee.org
LS005-073018
Authorization to Release Information to a Third Party
I hereby authorize the Center for Energy and Environment –CEE-, its successors or assignees, to release limited
information related to my loan to the Third Party indicated below. I understand that this authorization does not make the
Authorized Third Party an Obligor in my account and that the Authorized Third Party is not assuming any rights to the
proceeds and obligations signed by me through the promissory note. I understand that this authorization does not grant the
Authorized Third Party any kind of access to my account online, and that CEE will not make any changes to any
information related to my loan, per request from the Authorized Third Party. I understand that CEE will only release
information related to the following topics to the Authorized Third Party:
*Last Payment Received *Unpaid Principal Balance
*Next Due Date *Payoff Amount
*Total Amount Due *Remaining Term
Authorized Third Party:
Third Party's Full Name:
Third Party's Date of Birth:
Third Party's Last 4 of SSN:
I certify that I am the owner of this account and that I have the authority to allow a Third Party to receive information about
my loan. I understand that under the terms of this authorization, CEE is not liable in any form or manner, for the use and/or
dissemination of the information once it has been released to the Third Party, and I understand that I am solely responsible
for the misuse of such information once released to the herein Authorized Third Party. I am aware that CEE has the right
to withhold or deny the release of information to any Third Party that fails to verify the account through its standard
borrower identification procedure, and that it is my responsibility to provide my Authorized Third Party with all the details
needed to verify and access my account.
Authorizing Borrower:
Name: Loan Number: 2150
Date of Birth: Last 4 of SSN:
Borrower's Signature: Date:
Center for Energy and Environment | 212 Third Avenue North, Suite 560 | Minneapolis, MN 55401
Ph.: 1-855-296-5626 | Fax: 612-455-7805 | www.mncee.org | https://mncee.loanpro.software | loanservicing@mncee.org
LS004-073018
Center for Energy and Environment (CEE) Loan Subordination Policy
If you are in the process of refinancing your current mortgage, please read the requirements below or visit our Lending
Center’s home page for more information. A non-refundable processing fee will be charged in order to initiate the review of
any Subordination requests. The amount of the fee and requirements are available upon request, and can be found at
ourLending Center home page: https://www.mncee.org/services/financing/
Subordination Requirements: CEE will agree to subordinate its loan if the following conditions are met:
1. The new Mortgage is a First Lien.
2. The new Combined Loan to Value ratio (CLTV) does not exceed 100% of the current Market Value of the property.
3. The new Mortgage is not an Interest Only or Adjustable Rate Mortgage.
4. The new Mortgage is not a Cash-Out Refinance.
5. The new Mortgage does not move CEE’s lien to a lower position.
6. The loan with CEE is current and in good standing (has not been 30 days delinquent more than once over the last
24 months).
7. The current loan with CEE has not been subordinated to a different mortgage during the last 24 months.
8. All property taxes are current.
CEE will mail or fax a copy of the subordination agreement to the requesting party upon approval of the request. The
original document will be mailed after a copy of the signed Closing Disclosure has been received. CEE reserves the right
to refuse any request to subordinate its loan if any of the requirements are not met, or if the documentation submitted is
incomplete.
Required Documentation: CEE requires the following documentation to be provided in order to initiate the review of any
Subordination request:
1. Written request to subordinate the loan to a new First Mortgage. The request must include the purpose of the
refinancing.
2. Copy of the most current Appraisal (not more than 6 months old) or the document used by the new lender to
determine the current Market Value of the property (Tax assessment is a valid documentation for review).
3. Copy of the Title Insurance Commitment (Schedules A and B).
4. Current UPB (Loan Balance), current PITI (monthly payment including Principal, Interest, Taxes and Insurance –if
escrowed-), current Term (including remaining Term) and current Interest Rate.
5. Copy of the New Loan application or the New Loan Estimate (must include new UPB, new PITI, new Term and new
Interest Rate).
6. Name and contact information of the new Lender (must include the name and contact information of the Loan
Officer).
7. Subordination Processing Fee (you can find the current fee amount at our Lending Center home page
https://www.mncee.org/services/financing).
If the Subordination request is missing documentation, CEE will notify the requesting party in writing (via USPS or by any
electronic means determined by the borrower or his/her agent), indicating which documents are missing. After 30 days, all
incomplete requests will be considered abandoned and will be cancelled.
Subordination Agreement: Upon receipt of the signed Closing Disclosure (signed by the mortgagors and the closer) the
executed subordination agreement will be forwarded to the lender or Title Company for recording.
If you have any questions about this procedure, please contact CEE at 855.296.5626 or via email at:
loanservicing@mncee.org