8.8.2 Additional Exhibits Required of Project Participants

A. The Borrower shall provide the following exhibits for participating professionals and officers of corporations:

1. Identity of Interest of Borrowers Using Builders and Sponsors Profit and Risk Allowance (BSPRA) . General Contractors with an identity of interest with the Borrower may be either independent businesses with an ownership interest created in the Borrower entity primarily to obtain the Builders and Sponsors Profit and Risk Allowance (BSPRA) or businesses owned and operated by a Principal of the Borrower. Notwithstanding any identity of interest, the General Contractor is required to provide the identical exhibits as a participant.

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Chapter 8 Mortgage Credit 8.8 Application Exhibits and Responsibilities

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2. Management Agent. A detailed resume is required for Management Agents even when they have no ownership interest in the Borrower entity or identity of interest with a Principal. Credit reports are required for the Management Agent only in cases where there is an identity of interest between the owner and the Management Agent, or in cases where the Management Agent holds an equity interest in the Borrower. Also, receipt of negative information concerning the performance or capacity of the Management Agent could require a credit review. Analysis of financial statements is generally not required, unless the agent has an identity-of-interest with the Borrower or a Principal, or where financial statements are necessary to evaluate the capacity of the management entity to perform its management role.

3. Fee Developer/Consultant . Fee Developers, packagers, consultants and other professional persons or organizations are sometimes retained to assist nonprofit Sponsors that might lack needed experience. Such services might include assisting with project development, financial structuring or HUD processing. Packagers and consultants must provide resumes evidencing their qualifications, and the Developer must provide credit reports and financial statements when their services are critical to project viability.

4. Design Architect/Engineers . Design professionals must provide resumes establishing their credentials, competence and experience commensurate with levels of expertise and experience required by the project. Absent an ownership interest in the Borrower that would otherwise qualify the design professional as a Principal, no other mortgage credit exhibits are required.

5. Executive Officers of Borrower . Officers with less than 10% of the voting stock of a for-profit corporation but who qualify as a principal of the Borrower, may be required to submit resumes and demonstrate appropriate competence and experience to provide an accurate picture of character, capacity and commitment.

6. Executive Officers and Directors of Publicly Traded Corporations . These individuals are not required to submit mortgage credit exhibits as individuals, notwithstanding their stock ownership inasmuch as such firms are regulated by the U.S. Securities and Exchange Commission (SEC). The SECrequired annual corporate report (Form 10-K) and quarterly corporate report (10-Q) provide complete financial statements, background and history of corporate operations as well as resumes and compensation of corporate officers and disclosure of conflicts of interest of officers and directors. In addition, the credit of publicly traded corporations is rated by agencies such as Standard and Poor’s, Fitch and Moody’s. When a publicly traded corporation is a Principal, Forms 10-K and 10-Q and agency credit ratings may be accepted in lieu of mortgage credit exhibits.