Loan Credit File Requirements

Each loan submission may have unique credit documentation requirements. Below is a standard credit file checklist that may be used as a general reference.

RECC CREDIT FILE CHECKLIST
Executed Approval Letter signed by Borrower(s).
The Deposit Fee drawn from your company account which will be credited against the actual appraisal fee, environmental report and property inspection. Any excess amount that might remain beyond this will be credited to the borrower at closing. RECC does not engage third parties until the loan has been approved in loan committee and accepted by the borrower. 
Current Rent Roll - certifying as "True and Correct" (a Rent Roll with an "as of" date will be required within 30 days of the closing date). The rent roll must show all of the items on the RECC Rent Roll Form.
Commercial or Mixed Use Properties Only - provide the following prior to loan approval:
Fully executed copies of
all Commercial Lease Agreements with all amendments and exhibits.
Income & Expense Statement - Current Actual (not projected) YTD and 2006  (signed by borrower).  ** Please provide source documents (e.g.; the documents you received from borrower or seller) 
A completed Third Party Access Form.
A completed Borrowing Entity Vesting Form - illustrates the ownership % of the borrower.
CIP Form - must be completed and signed by the borrower(s).  The Customer Identification Program Form (CIP) is required for bank compliance purposes. 
Purchase & Sales Agreement with any addenda. If the Closing Date stipulated on the Purchase Agreement has passed, please provide a signed Purchase Extension.  (PURCHASE TRANSACTION ONLY). 
Digital Color photos of property -  illustrating interior and exterior of the property and street scenes.
RECC Credit Authorization Form - completed and signed. (FOR EACH BORROWER)
Loan Application & Environmental Questionnaire - completed and signed (FOR EACH BORROWER)
Commercial Loan Application (or 1003 or equivalent).  MUST BE LEGIBLE and SIGNED (FOR EACH BORROWER)
Personal Financial Statement Form - stating Borrower / Guarantor information and current financial balances.  MUST BE LEGIBLE and SIGNED and DATED (FOR EACH BORROWER)
Schedule of Real Estate Owned - Personal and/or Entity (complete with current balances, ownership %, acquisition date, purchase price, signed and dated) (FOR EACH BORROWER)
Bank / Investment Account Statements - to verify liquid assets shown on application with a minimum of 6 months post-closing P&I. (FOR EACH BORROWER) 
Borrower's Real Estate Ownership and/or Property Management Experience - Brief description, real estate experience resume preferred. (FOR EACH BORROWER)
Borrower's Credit Report -   Explanation of derogatory credit and / or Evidence item paid off / released  (if applicable)
Verification of Mortgage(s) - If Subject lien(s) are NOT listed on the credit report.
Capital Improvements Worksheet (if improvements were made to property within the past 24 months); and if applicable - estimates of work to be completed (completed, signed and dated)
Property Management Company - Resume of experience and copy of executed Management Contract (if applicable)
Laundry Facility - If any laundry equipment is leased, please provide a copy of Lease
Signed IRS 4506-T forms for all borrowers and business entities (available on IRS web site: www.irs.gov/pub/irs-pdf/f4506t.pdf).  NOT REQUIRED for trusts that do not file separate tax returns.                   
Federal Tax Returns - SIGNED Copies of 3 most recent year's filed returns with all schedules and K-1's, with filer's wet signature in blue ink, if possible.  (Copy of extension if current filing delayed)***DOES NOT APPLY TO PURCHASE LOANS UNDER STANDARD PROGRAM; ONLY SCHEDULE E'S ARE REQUIRED FOR REFI'S UNDER STANDARD PROGRAM***
Form W-9 - SIGNED by Broker of Record; this is required in order for RECC to pay your Service Release Premium (rebate). Obtain a copy at: http://www.irs.gov/pub/irs-pdf/fw9.pdf 
Broker Fee Agreement - SIGNED by Broker of Record and Borrower.
Broker Fee Demand - SIGNED by Broker of Record illustrating the Broker's Up-Front Fee(s); this is required if Up-Front fee(s) are charged. 
CONDITIONAL APPROVAL LETTER
Conditional Approval Letter Items - This is a standard checklist and may not contain every item that may be required. Please submit any additional items listed on the Conditional Approval Letter.
For Individual Borrowers - addt'l items
YTD Profit & Loss Statement / 1099 Form - (if self-employed)  **IF OWNER-USER**
Verification of Income - VOE or 2 most recent Pay Stubs; If Retired - SS, IRA, or Pension Distributions - (not self-employed)  **IF OWNER-USER**
For Entity Borrowers (except revocable trusts) - addt'l items
Application for Tax ID Number - for newly formed entities only
Trusts - Lender Certification of Trust form with copy of pages showing the Name of Trust, Powers & Authority, & Trustees Signatures.
Limited Liability Company - All Managers & any Member with 25% or more interest are to be documented
1.  Copy of
Operating Agreement and Resolution with all amendments, exhibits, and  ownership totaling 100%
2.  Copy of State filed
Articles of Organization and all amendments to the Articles
3. 
If applicable, copy of the most recent State filed Statement or Annual or Biennial Report
4.  Current Certificate of Status from Secretary of State (State of formation)
5. Current Certificate of Status from Secretary of State where property is located (if Borrower is a foreign entity)
Partnership - All General Partners & any Limited Partner with 25% or more interest are to be documented
1.  Copy of
Partnership Agreement and Resolution with all amendments, exhibits, and ownership totaling 100%
2.  Copy of State filed Certificate
or Statement of Partnership and all amendments to the Partnership                                                                                 
3. 
If applicable, copy of the most recent State filed Annual or Biennial Report
4.  Current Certificate of Status from Secretary of State (State of Formation)
5. Current Certificate of Status from Secretary of State where property is located (if Borrower is a foreign entity)
Corporation -
1.  Copy of
By-Laws and all amendments thereto
2.  Copy of State filed
Articles of Incorporation and all amendments
3. 
If applicable, copy of State filed Statement or Annual or Biennial Report - listing all Officers & Directors of the Corporation
4.  Current Certificate of Status from Secretary of (State State of formation)
5. Current Certificate of Status from Secretary of State where property is located (if Borrower is a foreign entity)
For Purchase Transactions - addt'l items
Proof of Funds that demonstrate 3-6 months post-closing reserves for Principal and Interest (see Program Guidelines)
Insurance agent contact info & copy of Insurance proposal (annual premium must be referenced) - Must meet RECC's insurance guidelines
Termite Inspection Report (if required in purchase agreement or if required by 3rd Party) & Termite Clearance (if work completed)
Roof Certification - If required by 3rd Party
Certificate of Occupancy - If required by 3rd Party
For Refinance Transactions - addt'l items
Certified copy of the Final Settlement Statement from the acquisition on the subject property (may be required if the subject property was purchased within 2 years of this loan)
Property Tax Bill - Copy of most current
Insurance Certificate - Copy of most recent property hazard insurance certificate (current invoice must be included) **MUST COMPLY WITH RECC MINIMUM COVERAGES and LOSS OF RENTS**
Mortgage Statement - Most recent showing current balance
TITLE
Preliminary Title Report or Title Commitment (in applicable states) - MUST include:
1.  Copies of underlying documents
2.  Plat Map / Plotted easements )if applicable), and
3.  Closing Protection Letter
1031 TAX DEFERRED EXCHANGES
Copy of Accommodator Statement or certified copy of the Final Settlement Statement - showing funds for the loan down payment Accommodator

 

 

RECC Process
 

RECC Lines of Business

Standard Multifamily

Small Balance Multifamily

Fannie Mae DUS / HUD

Office / Retail / Industrial

Small Balance Commercial