OPG 7.21 Transmittal and Certification of Interim Final Settlemen

OMB No. 2502-0533
(Exp, xx/xx/xxxx)

Mark-to-Market
Form 7.21
Transmittal and Certification of Interim/Final Settlement Statement
and Closing Escrow Instructions
Both the PAE and Closing Escrow Agent must sign this certification acknowledging that the
information contained in this Form, attached Settlement Statement and other attached
documents accurately reflect the flow of funds POC, received and disbursed from the Closing
Escrow.
“Closing” in the context of this form will mean the date the PAE Attorney signs the Certification forms 7.8, 7.11 or
7.14

Project Name:
FHA #:
Date of Closing:
PAE:
7.21 Prepared by:
Name:
Title:
Telephone #:
Entity:
Version: Original submission_____ Final _____
1) Attach the Following:
a) Closing Escrow Instructions
b) Check below indicating document(s) attached:
Interim/Final Settlement Statement

i)
ii)

Interim/Final Disbursement Statement (optional, but if attached,
must also include an Interim Settlement Statement as well. See 2 below)

c) If Accounts Payables are paid at closing attach itemized list to Settlement
Statement – see 12 below
2) If Interim Settlement and/or Disbursement Statement attached:
a) List all un-disbursed funds; final settlement statement signed by both PAE
& EA will need to be provided to HQ Closing Dept. no later than 3 days
after final disbursement, however the docket must contain the final
settlement statement and Form 7.21 showing all disbursed funds:
Un-disbursed
Funds

1.
2.
3.

$$ Amount

Reason Why Un-disbursed

$
$
$

FUND SOURCES
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Draft Form 7.21 4/18/2006

Estimated Time of
Final Disbursement

3) List the actual dollar amounts received into the escrow from each Source :
Amounts must match what was verified by HQ Closing prior to funding the
partial payment of claim (if appl.) and/or must match the Exhibit F Sources
and Uses:
Source of Funds

$Amount
Received

HUD (If HUD-Held N/A but reflect the amount of the M2M Notes on inset of S.S.)
Existing Escrows (see 4a below)
Takeout Financing (If new escrows netted only reflect net funds to Escrow – see 5 below)
Owner (Must match S.S., Exhibit F and Final Administrative Amendment to RC)
Other Sources (e.g., bridge loan funds to cover tax credit equity- see 6 below)

$
$
$
$
$

4) Status of existing escrows.
a) Provide summary breakout of each existing escrow account specifically
addressed in the Closing Escrow Instructions, identifying how and when
the existing balances were/will be disbursed (e.g., POC to new lender, POC to
mortgagor, netted, or funds sent to Closing Escrow):

$$ Amount

Pre-Closing Escrow
Accounts

R4R
Property Taxes
Hazard Insurance
MIP
Residual Receipts
Other (specify)
Total

$$ Amount

POC to New Lender
(A)

$
$
$
$
$
$
$

$$ Amount

Funded to Closing Escrow
(C)

Netted from Existing Pay Off
(B)

$
$
$
$
$
$
$

$
$
$
$
$
$
$

* If escrows are POC from old to new lender, obtain from old mortgagee estimated time of delivery to new mgtee

5) Takeout financing with lender fees and escrows netted. Provide total of all
escrows and lender financing costs netted from the takeout financing:
$$ Takeout Financing
minus

Total Escrows

$
$-

Loan Proceeds
Total New Escrows/Fees (from #9a column B below)

$

Total*(Net takeout financing)

*Sometimes total is negative meaning additional funds are due to new mortgagee

6) Sources that do not flow through the Closing Escrows. Show these funds in
the narrative column on the left side of the Settlement Statement and write
POC (Paid Outside of Closing). Do not list dollar amounts in the columns to
the right if they are not actually sent to (or disbursed by) the escrow agent.

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Draft Form 7.21 4/18/2006

a) Funds committed but not available at Closing. Are there any other
Sources of Funds (besides existing escrows and the netted lender
funds above) reflected on the Statement that did not flow through the
closing escrow (e.g., construction financing, tax credit equity, etc?) Yes/No
Other Funds

Source

$
$

FUND USES
7) List the actual dollar amounts of 3rd party disbursements:
Amounts must match funding as reflected on the settlement/disbursement
statement and Closing Escrow Instructions:
Summary of Uses

**Existing Financing (If existing escrows are netted only reflect net p/o –see 8 below)
Set-up of New Escrow Accounts (Show combined total for all escrows – see 9 below)
HUD (Return surplus funds to HUD – see 11 below)
Other Uses (e.g., Rehab Escrow, Operating Deficit Escrow, Payables, etc.)
Owner (Excess residual receipts, new deposit to hazard ins escrow when no takeout financing)

$Amount

3rd party
disbursements

$
$
$
$
$

**If multiple payoffs add lines as needed

8) Payoff of Existing Lender. Reflect the actual dollar amount wired by the
escrow agent to payoff the existing lender below (If net payoff reflect below)
$$ Gross Payoff
minus

Total Escrows

$
$-

Gross Payoff (from CMB- includes P&I, fees)
Total Existing Escrows (must match 4a above)

$

Total* (Net Payoff)

* Sometimes p/o is less than escrow balances meaning difference is either sent to escrow agent or mtgee

9) New Escrows established at closing
a) Provide breakout of each new escrow account being established with new
lender (or other entity if Rehab Escrow) and how they were funded below
(e.g., tax escrow, $400 POC from old to new lender and additional $500
from funds in Closing Escrow):

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Draft Form 7.21 4/18/2006

Post-Closing
New Escrow Acct

$$ Amount

$$ Amount

POC from Old to New
Lender
(A)

$$ Amount

Funded by Closing
Escrow
(C)

Netted from Takeout
Financing
(B)

R4R
Property Taxes
Hazard Ins. (If HUD-Held

$
$
$

$
$
$

$
$
$

*MIP (impound adjustment)
Residual Receipts
Other (specify)
Total

$
$ NA
$
$

$
$ NA
$
$

$
$ NA
$
$

N/A)

*Up- front funded in full at closing from transaction costs

b) If HUD will be in first lien position, do not collect or transfer funds for hazard
insurance escrows to HUD; HUD does not service the owners hazard
insurance.
(If no,

c) Will escrows be fully funded after POC funds are disbursed?

reconcile before disbursing funds).

10) New Lender contact info for disbursement. Show total $ amount of any
escrow balances held by old lender at closing to be sent directly to new
lender:
Amount to be sent from old to new lender**
New lender name and mailing address

$

Contact person name and phone #
**Sometimes less than the existing balance(s) will be sent to the new lender

11)

If HUD is a payee on Statement of Itemized funds.
a) Provide the information below as per Chapter 7 of the OPG. Provide
breakout of which line items from the Statement are included in each
check so we can track proper application of the funds when received. If
HUD is holding the escrows please properly identify in 7 above.

Date Sent

Check #

Amount

HUD mailing address

SS line items in
that check

i) Were any funds wired to HUD?
(HUD strongly discourages
wires from the Closing Escrow Agent; checks are preferred). If a wire
was sent, provide tracking information:
Date
(on the transmittal)

Amount $

Identifying Information
.

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Draft Form 7.21 4/18/2006

12) Does the Statement reflect disbursement of Accounts Payables (AP) with
If not, revise
individual payees identified on the Statement?
Statement so that each AP payee is identified (attach a detailed list to the
Settlement Statement).
13) Is the Statement in balance?
If there are excess funds, check
with the PAE closing attorney for guidance before disbursement. Do not
disburse any funds until in balance.

The following certifications must be signed anew by both the PAE Attorney and
Closing Escrow Agent at each submission of the 7.21.
Deadlines established herein for submission refer to the date of “Closing”. In this
context, “Closing” refers to the date the PAE Attorney signs the Attorney’s
Certification, forms 7.8, 7.11 and/or 7.14 as appropriate

PAE Attorney
I, _______________________, representing __________________ (PAE for this
transaction) have reviewed the attached settlement/disbursement Statement(s) and
certify that the information in the Statement(s) is correct and consistent with the
information in this Form and reflect the flow of funds received and disbursed from the
Closing Escrow.
I further certify that at this time, ____________[enter date signed] the Closing Escrow

is/is not [CIRCLE ONE] now closed and all funds have/have not [CIRCLE ONE] been
disbursed.

Closing Escrow Agent
I, _______________________, representing ______________ (CEA, Closing Escrow
Agent for this transaction), have reviewed the attached settlement/disbursement
Statement(s), dated_________ and certify that the information in the Statement(s) is
correct and consistent with the information in this Form and reflect the flow of funds
received and disbursed by the Closing Escrow .
I further certify that at this time, ____________[enter date signed] the Closing Escrow

is/is not [CIRCLE ONE] now closed and all funds have/have not [CIRCLE ONE] been
disbursed.

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Draft Form 7.21 4/18/2006

Public reporting burden for this collection of information is estimated to average 1 hour per
response, including the time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing the collection of
information. This information is required to obtain benefits. The office of Multifamily Housing,
Office of Affordable Housing Preservation 451 7th Street SW, Room 6216 6230 Washington,
DC 20410. HUD may not collect this information, and you are not required to complete this
form, unless it displays a currently valid OMB control number. Title V of the Departments of
Veterans Affairs and Housing and Urban Development and Independent Agencies
Appropriations Act of 1988 (P.L.106 65, 111 Stat. 1384) authorizes the FHA Multifamily
Housing Mortgage and Housing Assistance Restructuring Program. HUD implemented a
statutory permanent program directed at FHA-insured multifamily projects that have projectbased Section 8contracts with above- market rents. The information collection is used to
determine criteria eligibility of FHA-insured multifamily properties for participation in the Mark
to Market program and the terms on which participation should occur. The purpose of the
program is to preserve low-income rental housing affordability while reducing the long-term
costs of Federal rental assistance. While no assurances of confidentiality are pledged to
respondents, HUD generally discloses this data only in response to a Freedom of Information
request.