Cash Back to Buyer Agreement by oru50790

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									                          Procedural Compliance Checklist
                          Expanded Open Market HomeBuy
                             & Open Market HomeBuy
                                                                                                                                                       V 1 April 2008

                            For use by 'Independent Auditors' undertaking self-assessment procedural compliance audits under
                                                  Programme Partnering Agreement (PPA) procedures

     The purpose of this checklist is to identify specific checks to be undertaken in order to determine whether all procedural requirements and relevant funding
                                                    conditions as set out in the Capital Funding Guide have been met.

                                                                                       Partnership I.D. or
Partnership or
                                                                                       Unregistered body
Organisation name
                                                                                       IMS Organisation code

Name and address of
                                                                                       Scheme IMS No.
scheme

Developing RSL name                                                                    Developing RSL code
(where applicable)                                                                     (where applicable)


Type of housing
(enter OMHB or EOMHB as
applicable)

                                                                                      Full contact details of
Independent Auditors
                                                                                      person completing
Business Name
                                                                                      checklist
                                                                                  Note

In addressing the checks set out below please answer either 'Yes' or 'No' as appropriate. Where checks are considered to be not applicable to the scheme then a 'No'
                                                  response should be inserted and justifying comments inserted.
                              The Comments box should also be used to explain deficiencies or shortfalls in supporting documentation.
  The Auditors report should summarise all of the deficiencies, shortfalls and instances where specific checks were considered to be not applicable

                                                                      CFG
                                                                                           Additional notes for
          Item no.               Scheme File Documents               ref to   Yes/No
                                                                                          Auditors and Certifiers
                                                                                                                                     Comments
                                                                     check
                           Has the RSL maintained a scheme
              1            file containing the following
                           documents?
                                              OMHB 4       Check that form is valid and
1a Completed tenant's application form.       EOMHB 4.4    duly signed by all applicants


                                              OMHB 4
                                                           The financial checks should
     Evidence of tenant's financial           EOMHB
1b circumstances.                             4.4.3 &
                                                           have been applied to anyone
                                                           joining in the purchase
                                              4.4.4
                                              OMHB 4.1
     Agent's approval letter in accordance
1c with HC sample letter.                     EOMHB
                                              4.4.6

                                                           Check that a valid valuation
                                                           certificate from a qualified
                                              OMHB 4
1d Evidence of the purchase price.            EOMHB 4.5
                                                           independent valuer and
                                                           purchase price completion
                                                           evidence is on file

     Where the applicant was on the
     waiting list of either the RSL or        OMHB 2
1e   local authority: evidence that the       EOMHB 2
     applicant has been nominated by the      NBHB 1.4.2

     local authority.

                                                           Check that confirmation of
                                              OMHB 4.8
1f Evidence of exchange of contracts.         EOMHB 4.8
                                                           exchange is from the solicitors
                                                           and relevant to the property

     Copy of the buyer's legal                OMHB 4
1g representatives undertaking.               EOMHB 4


     Copy of the charge certificate as        OMHB 4
1h evidence the loan has been secured.        EOMHB 4.7

                                              OMHB 4
1i Certified copy of Homebuy Mortgage.        EOMHB
                                              4.7.2

                                              OMHB 4
     Consumer Credit Licence issued by the EOMHB
1j   OFT. (The licence is valid for 5 years 1.2.9 &
     from the starting date shown on it).   4.3.1 &
                                              4.3.2


     Direction from the Director General of   OMHB 4
1k Fair Trading under Section 60(3) of the    EOMHB
     Consumer Credit Act.                     4.3.4



     Copy of NHBC or equivalent insurance OMHB 3
1l (in cases of newly built properties).      EOMHB
                                              3.2.1
                     Homebuyer's survey and valuation            OMHB 4
               1m report or equivalent (where the                EOMHB
                     property is not new).                       4.4.5

                                                                    CFG
                                                                                          Additional notes for
                              Applicant Eligibility                ref to     Yes / No
                                                                                         Auditors and Certifiers
                                                                                                                   Comments
                                                                   check


Note: The eligibility criteria for EOMHB and OMHB are the same as for NBHB, for details see NBHB1.4


                     Has the RSL carried out a financial         EOMHB 4.4
                                                                 NBHB 1.4
                     assessment of every applicant and
      2              are these assessments kept on file for
                                                                 NBHB 6.2
                                                                 EOMHB 2
                     audit purposes?                             OMHB 1.3



                     Participating lenders: Is the lender
                                                                 OMHB 1.3.2
                     used by the applicant a 'qualifying
      3              lending institution' as listed in CFG
                                                                 EOMHB
                                                                 1.5.1
                     procedures?


                     Are applicants meeting the other            OMHB 2
                     applicant eligibility requirements as set   EONHB 2
      4              out in this section of the HC procedure     NBHB 1.4
                     guide? (E.g. is the tenant either a         NBHB
                                                                 1.3.36
                     RSL/LA tenant or on a LA waiting list?)

                                                                    CFG
                                                                                          Additional notes for
                      Key Workers - Special Provisions             ref to     Yes / No
                                                                                         Auditors and Certifiers
                                                                                                                   Comments
                                                                   check

                     Repayment of equity loan: Are there
                     adequate systems in place to allow for
                                                            EOMHB 5.9
      5              grant recovery? For example, should    OMHB 1.3.8
                     the occupier leave eligible key worker
                     employment?
                                                                    CFG
                                                                                          Additional notes for
                              Property Eligibility                 ref to     Yes / No
                                                                                         Auditors and Certifiers
                                                                                                                   Comments
                                                                   check


                     Do the homes selected for purchase OMHB 3
      6              meet the HC procedural criteria?   EOMHB 3.2
     Where the vendor has agreed to
     carry out works before completion is
     evidence available to demonstrate that OMHB 4
7    works have been completed to a
                                            EOMHB
                                            4.6.3
     satisfactory standard, and are
     acceptable to the mortgage lender?
                                                 CFG
                                                                          Additional notes for
           Processing the Purchase              ref to     Yes / No
                                                                         Auditors and Certifiers
                                                                                                       Comments
                                                check


     Does key IMS data match
     documentary evidence?
     1 Purchase price to match letter from
     applicant's legal representative                                 IMS checks: Do any
                                              OMHB 4
                                                                      discrepancies indicate that
8    confirming purchase;                     EOMHB
                                                                      grant was ineligible, overpaid
     2 Valuation figure to match valuation    4.6.3
                                                                      or paid in advance of need?
     report;
     3 Number of persons in household to
     match applicant application form;
     4 Completion date to match legal
     Cash back/legal fees: Is there
     evidence that the vendor offered the                             IMS checks: Check paperwork
                                              OMHB 4
     buyer cash back or legal fees paid? If                           against data input in screen
9    so, was the total amount of this
                                              EOMHB
                                                                      'Property Cost & Grant
                                              4.6.3
                                                                      Calculation'
     discount reflected in the 'purchase
     price' in IMS?
     Mortgage Lenders: Is the lender
                                              OMHB 1.3.2
     institution a 'qualifying lender' as
10   outlined in the 'guidance notes for
                                              EOMHB
                                              1.5.1
     solicitors/legal representatives'?
     Additional Conditions: Have all
     special conditions of Grant                                      IMS checks: Check details on
11   Confirmation, shown on IMS been                                  the HC Approval screen
     complied with? (If any)
                                                 CFG
                                                                          Additional notes for
             Post Sale Procedures               ref to     Yes / No
                                                                         Auditors and Certifiers
                                                                                                       Comments
                                                check
     Vacant Units Used as Intended:
     Is there written evidence on file from
     the LA that a household in priority                              If property still vacant is there
                                              OMHB 4
     need nominated from the LA's waiting                             any evidence to indicate that
12   list has been housed in the vacated
                                              EOMHB
                                                                      grant was paid in advance of
                                              4.4.1
                                                                      need?
     property or that the LA was unable to
     nominate and the RSL has rehoused
     someone from its waiting list.

     Mortgage default: In the event of a
     property becoming repossessed by the                             If not recovered by the RSL
     qualifying lender (which has first                               are there any reasons
                                                                      documented for non-recovery?
     charge on the property):                                         The total amount recoverable
                                              EOMHB                   should be equal to the equity
13   Has any balance left after repayment     5.4.1                   loan as a % of the value of the
     of any outstanding mortgage debt         OMHB 5.3                property at the point of
                                                                      repossession but can be less to
     been recovered by the RSL?
                                                                      allow for the lender who has
                                                                      first charge to recover their
                                                                      capital first.




     When property sold on by
     qualifying applicant or loan repaid
     during occupation:                                               If not repaid to RSL are any
                                              EOMHB 5.5
14   Is there any evidence that the full loan OMHB 1.3.7              reasons/documents for non-
     amount (the relevant % of the value of                           repayment?
     the property at the date of repayment)
     has been repaid to the RSL?


                                                                      Check IMS screen Property &
                                                                      Grant Calculation to compare
                                                                      grant amount approved/paid
                                                                      against amount credited to
     RCGF: Where repayment applies, is                                RCGF account.
     there evidence that the loan                                     (The amount should not be
15   repayment amount has been credited                               greater than the original grant
     to the RCGF fund?                                                amount paid to the applicant
                                                                      by the RSL- the amount
                                                                      credited to RCGF can be less in
                                                                      cases such as a fall in property
                                                                      prices or mortgage default
                                                                      cases).

                                                 CFG
              Other Checks for                                            Additional notes for
                                                ref to     Yes / No
           OMHB GLO Programmes                  check
                                                                         Auditors and Certifiers
                                                                                   Check that the qualifying
                                                                                   applicants were unable to buy
                             Has RSL carried out a financial                       outright without an equity
                                                                                   loan from a HomeBuy Agent
                             assessment of every applicant and
             16              are these assessments kept on file for
                                                                      OMHB 1.3     - check that the equity loan
                                                                                   does not exceed 25% of the
                             audit purposes?                                       property value - check that the
                                                                                   equity loan is from a
                                                                                   HomeBuy Agent


                                                                                   If the cap has been exceeded
                             Is the equity loan amount within         OMHB         ensure there is evidence on file
             17              the £50 00 cap?                          1.3.1.3      that this was due to
                                                                                   exceptional circumstances


                             Qualifying Lender: is the lender as
                             defined by the Social Landlords
             18              (Additional Purposes or Objects)         OMHB 1.3.2
                             (Amendment) (England) Order 2005
                             (SI No.2005/2863)?



Independent Auditor
Signature                                                                          Date
(person who completed this
checklist)
Independent Auditor in
Charge                                                                             Date
(Authorised Signatory)

								
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