HomeMy WebLinkAboutAMERINAT (AMERINATIONAL COMMUNITY SERVICES, INC. FKA UNITED STATES ESCROW) A-1994-036-02
0070 MERINAT
January 31, 2025
David Flores, Housing Programs Coordinator
City of Santa Ana
Community Development Agency
20 Civic Center Plaza
Santa Ana,CA 92701
Dear David,
This letter serves as a 30-day written notice to revise the scope of work and compensation schedule as
allowed per Section 4 of the agreement between the City of Santa Ana ("City")and AmeriNational
Community Services, LLC d/b/a AmeriNat.,which was formally known as United States Escrow,
("AmeriNat"),dated April 18, 1994.Attached is the revised Exhibit A—Scope of Work and Exhibit B
Compensation Schedule.These changes will go into effect March 3,2025,and will continue until
December 31,2025.
Respectfully, �7
.rY Gx/�LGP/Ll1 / 62,Q dvfi
Adrienne Thorson
Chairwoman and CEO
RECOMMENDED FOR APPROVAL:
Michael Garcia
Community Development Executive Director
(800) 943-1988 • 8121 E. Florence Ave., Downey, CA 90240 • www.amerinat.com
Over 50 Years of Industry-Leading Experience
EXHIBIT A
SCOPE OF WORK
Loan Servicing for Amortized and Deferred Loans
1, Loan Boarding:
a. plow Loans:The Client Is responsible for completing an electronic loan setup form, available on
the Servicer's portal, for flow loans being transferred to the Servicer for servicing. When fully
complete,the Client uploads the form to the Servicer's portal.
2. Introductory Package: Upon boarding of a new loan, Servicer will send a welcome package to the
borrower.This welcome package contains a Notice of Servicing Transfer, Fair Debt Notice, FACT Act
Letter,and a variety of options to submit payments.
3. Collection and Remittance of Payments: Servicer will collect payments from the borrowers through
monthly or other scheduled remittances of principal, interest, fees, escrow balances and other
identified payments. Payments can be made Via check to a secure lock-box,multiple payment options
online,reoccurring ACH,and through"check-by-phone"',and via the Servicer app.These remittances
will be posted to the loan and ancillary records in accordance with the loan documents and the
Client's written instructions. Payments will be posted the same day as receipt. Funds will be
maintained in an FDIC insured banking Institution in a custodial account for the benefit of the Client
and the borrowers as applicable. Servicer balances cash received and transmitted and loan portfolio
totals on a daily and monthly basis. Remittances will be forwarded to the Client monthly net of fees
and other authorized charges due to Servicer.
4, Payment of Property Taxes: At the Client's request, Servicer will order a tax service contract and
monitor the timely payment of property taxes.
5. Insurance Monitoring: Servicer will notify the insurance agent In writing that Servicer is monitoring
premium payments and Is to be made aware of delinquencies, non-renewals or cancellations.
Servicer will force place insurance in accordance with respective regulation(see Insurance section).
6. Escrow/Impound Account: If the Client chooses,Servicer will establish a borrower escrow/impound
account for the payment of taxes and insurance. Servicer will collect the monthly escrow payment
from the borrower and make the tax and insurance payments on the borrower's behalf.The borrower
escrow accounts will be analyzed annually In accordance with the Real Estate Settlement Procedures
Act(RESPA).
Please note:For single-family loans,unless respective state law requires otherwise,Servicer's escrow
analysis utilizes a 2-month cushion In accordance with RESPA. This cushion is an industry standard
and Is intended to minimize the likelihood of escrow shortages / deficits when and if escrow
disbursement items increase.If this cushion is not consistent with the Client's current escrow analysis
process, borrowers' escrow analysis may result in a shortage and/or escrow payment Increase at the
time of Servicer's first analysis. This may Impact borrowers' ability to make increased monthly
payments to escrow. Should the Client request alternative handling of loan accounts with escrow
payment increases,this may result in the Client incurring extraordinary services charges.
1 Additional fees apply.
If the Client chooses to establish an escrow/impound account, Servicer-will track and reconcile
advances made by Servicer on borrower accounts with escrow•deficits as a result of payments made •
on the borrower's behalf In excess of their escrow balance. Escrow advances will-be reconclled
monthly,and netted against escrow payments collected from the borrowers. The net change will be
included ordeducted fromthe Client's monthly remittance;a net shortage/negative will be deducted
and a net overage/positive will be remitted:Advances made by Servicer that are not reimbursed by
the Client the following month will be subject to an Interest charge oil% per month compounded
until such time said reimbursement occurs. Regardless of whether or not the net shortage/negative
Is deducted from remittance at the end of the month, the Client remains responsible for escrow
advances made by Servicer.
At portfolio transfer Servicer will require a cash deposit equal to the total amount of positive escrow
balances,NegatlVe escrow balanceswill beset up,but the total amount Of negative escrow balances
will not be netted out of the positive cash escrow balances. Should recurring advances become
necessary,Servicer reserves'the right to requesttheCllent to deposit an amount into reserve to cover
'thee nticlpated..necessaryadvaraces.
7. Late Fees: In keeping with the provisions of the Client's promissory note,Servicer will assess and
retain a late fee when payment is not made within the grace period.
Lender Placed Insurance
In accordance with respective regulation, upon notification of a policy cancellation from the borrower's
insurance carrier,or when proof of a current policy is not received,Servicer will request lender-placed
insurance from Servicer's insurance provider. Servicer executes the force-placement of insurance on a
portfolio.wide level,meaning it Is done for all-loans in the portfolio for which insurance'haS lapsed.If the
Client wishes to select loans for the force placement of insurance on an "as requested" basis, it will he
the Client's,responsibility to verify the placement has been completed by Servicer:This.quality control •
step aids in ensuring thatthe Client's instructlons.were received by Servicer,usually via email. The Client
can review the coverage through monthly reports from Servicer indicating insurance status.
1. Coverage is bound uponreceipt of request with an effective date up to 90 days prior to receipt of the
request.
2. Servicer's insurance provider or their carrier will send out three letters to the borrower over the
course of forty-five days. If the borrower provides proof of coverage,lender-placed coverage will be
cancelled.
3. lithe effective date of this coverage is the same and there is no lapse in coverage, there will be no
premium charged:.if there is a lapse In coverage, there may be a fee charged to the borrower's
account for anearned premium.
4. If the borrower does not provide proof of coverage, Servicer's insurance provider will send an
insurance policy and notification of premium to the borrower and bill Servicer for a one-year policy.
If the borrower does not have an established Impound account,Servicer will create one and disburse
the premium from It. If the borrower fails to pay the premium before the end of the month,and the
disbursed premium results in an escrow deficit balance, the balance will be accounted for in that
month's reconciliation of the Client Escrow Deficit Account, if the aggregate portfolio remittance for
the month is insufficient to cover the deficit amount,the Client will be billed and responsible for the
cost until recouped from the borrower. Pay-off quotations or demands will reflect impound deficit
amounts (caused by the cost of forced-place insurance or other advances)so that the borrower will
still be held responsible for the cost even if they are unresponsive.
The Portfolio Status Report, delivered monthly to the Client,will also reflect such negative impound
balances (i.e.the total amount of such premiums owed by borrower).
5. The one-year policy is cancelable by either Servicer or the Client.
Account Inquiries
Borrowers and the Client have 24-hour electronic access to their loan information via Servicer's webslte
at www.amerinat.com. Continuous access to loan account information Is also provided during normal
working hours through toll-free customer service telephone lines. In addition, hard copy account
payment histories or other information can be provided through facsimile transmission or email. When
requested by a borrower, Servicer will provide, without charge, a detailed statement of transactions
relating to the borrower's payments and/or escrow account,
Additional Portfolio Management Services
1. Loan Payoff Quotations,Satisfactions, Reconveyances; Servicer will provide Loan Payoff Quotations
and will perform Satisfactions and Reconveyances of Mortgage at the borrower's expense at the
Client's request.
2. Loan Amortization Schedules: Servicerwill provide Loan Amortization Schedules upon request.
3. Tax Forms: Pursuant to IRS regulations and,on behalf of the Client,Servicer will submit required tax
forms for borrowers paying interest on Client loans.
4. Year-End Account Summary: If required by regulation, Servicer will supply a year-end account
summary statement to a borrower if there has been principal, Interest or escrow activity on their
account.The report will indicate principal,and interest paid, amount of payments Servicer made on
the borrower's behalf for taxes and insurance,and remaining escrow balance.
5. Tickler Notifications: Servicer will provide an annual tickler notification at the Client's request.
6. Loan Confirmation Audits: Servicer will complete loan confirmation audit requests when requested
by the Client, Borrower, or auditors of either. Information requested generally includes unpaid
principal balance, interest rate, date to which Interest has been paid,terms of payment of principal,
current escrow deposit amounts,and escrow amounts paid during a specified period.
Loan Transfer
In the event the Client requires Servicer to transition loans back to the Client or to another servicer,
Servicerwill gather and package loan files(hard-copy and/or electronic copy)for shipment.The Servicer's
•
IT department will work with the Client's staff to electronically transmit servicing data in an agreed upon
format.
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Loan Reconstruction
•
If requested by the Client,Servicer will prepare a loan reconstruction to determine posting accuracy and
compliance with promissory notes, truth in lending statements, and other applicable related loan
documents. This Involves a detailed review of loan terms and reconstructing the posting of payments in
accordance with the terms.
Collections and Loss Mitigation
Collection efforts are conducted in accordance with the Client's requirements, pertinent regulations,
GSC/insurer requirements and industry standard'practice.These'actiVittes include the following•steps:
1. Delinquency/Default Letter Production: Letters of varying tone and composition will be sent at 15,
30,45,and 90 days past the payment due date.The 45-day letter will include the Consumer Financial
Protection Bureau (CFPB) mandated notification Informing the borrower of the available loss
mitigation options.The 90-day letter will detail forthe borrower possible escalated collection activity
up to and including foreclosure.The letters emphasize the seriousness of the situation,the potential
for loss of the borrower's property,and demand immediate payment.Borrowers are also encouraged
to apply for federal or state relief programs that may be available.
2. Due Diligence Phone Calls:Attempts are made in accordance with MUD guidelines for contacting the
borrower as soon as the loan becomes delinquent.Telephone calls will be placed on a regular basis
as loans remain under active delinquency follow up. Calls to single family mortgage borrowers are
made in accordance with CFPB guidance and best practices. Live contact Is attempted with the
borrower beginning not later than the 17th day of delinquency,under a good faith goal of establishing
contact with the borrower by the 36th day of delinquency. One or more subsequent attempts to
contact the borrower will generally be made every 30 days thereafter.The objective-of the call is to
secure or demand prompt payment, obtain information regarding the reason for the delinquency,
and to structure a commitment for future payments.
3. •Credit Reporting: Servicer will report borrower payment activity and status codes to the credit
bureaus monthly.
4. Confirmation Letters: Contact with borrowers is used to solicit commitments to repay past due
amounts. Borrowers are provided an opportunity to bring the loan current Immediately,and within
six months. Once a commitment is gained,Servicer will forward a confirmation letter to document
both the call and the commitment.The revised payment plan of no greater than six month's duration
is then Implemented. Default under this plan may lead Servicer to recommend foreclosure.
S. Additional loss mitigation activities such as skip tracing and door knock services are available upon
request. The scope and fees associated with these services will be determined and agreed upon by
both the Client and Servicer,
Forbearance Plans:
Formal forbearance plans are typically used for defaults of 90+days. A forbearance plan of less than six
months duration Is executed by the borrower and immediately Implemented by Servicer, with notice
immediately provided to the Client. Formal modifications to promissory note terms and forbearance
plans of greater than six months duration are subject to Client pre-approved parameters. Forbearance
recommendations outside of the pre-approved parameters require individual Client approval if they are
to move forward, Approval timeframes are subject to regulatory guidance, and therefore if the Client
does not respond to requests for approval within the agreed-upon timeframes, Servicer will deny the
application or request.
Once approved,Servicer will implement the new payment schedule. Should a borrower default from the
new payment schedule without cause,Servicer will recommend foreclosure.
Forbearance Evaluation Process: A hardship is defined as a situation or set of events or circumstances
beyond the normal control of the borrower that prohibits the borrower from adhering to a planned
repayment schedule. If a borrower states,either verbally or in writing,that a hardship situation exists,
Servicer will document the circumstances and provide the following:
I, Letter from borrower requesting the Client's consideration of hardship
II. Nature of the hardship
iii. Expected duration of the hardship
Iv. Evidence to substantiate hardship
v. Forbearance Plan Proposal
If the Client approves the Forbearance Plan Proposal and executes the agreement with the borrower,
Servicer will resume loan servicing under the new payment plan. The file will be tickled for follow-up at
the expiration of the temporary plan.
Loan Modification Analysis:
1, Preliminary Screening: When contact with the borrower indicates a short-term forbearance
agreement will not be enough to bring the account current, and initial assessment of the Borrower's
circumstances indicate the Borrower may possibly be eligible for an available loss mitigation option,
the borrower will be encouraged to submit a loss mitigation application.
2, Application: Upon receipt of a loss mitigation application, Servicer will review the application to
determine supporting materials are present and that the forms are complete. Support materials may
include but are not limited to, paycheck stubs, W-2's, Federal Tax Returns, bank statements,
mortgage statements, property tax bills and insurance policies.Once the application is reviewed and
found to be complete, a credit report and escrow analysis are ordered, as applicable, and the
application is submitted to underwriting.
3. Analysis and Recommendation; Underwriting of the application is performed using the Client's
eligibility criteria.This analysis wilt reflect information such as ability to repay or affordability (debt-
to-income ratio), status of 1" mortgage, and occupancy. Based on the aforementioned, the
recommendation will convey whether it is reasonable to proceed with the modification and what
type of modification will best suit the needs of the borrower and the Client. The recommendation
along with the supporting documentation will be sent to the Client for approval:
4. Approval; Once a loan modification has been approved, Servicer shall prepare and forward the
required documents to the borrower for signature and recording, unless the Client retains these
functions. If the Client retains approval authority, the Client agrees to return the decisioned
application within 5 business days of receipt. If no response has been received in 5 days, the
modification will be denied.
After the documents have been executed, originals will be retained by the Client and copies will be
promptly sent to Servicer along with funds required for escrow, legal fees, etc. After receipt of
executed modification documents and required funds, Servicer will make the appropriate
modifications to the loan, send the borrower new payment coupons or billing statements, and
electronically notate the account. Respective modification documentation will be retained in the
electronic loan file.
•
Loan Foreclosure
•
The mortgage transaction and collections efforts are predicated on the assumption that the borrower is
motivated and able to meet the mortgage obligation. A decision to foreclose.Is based on an analysis of
an individual loan.'Servicer will look at the borrower with particular emphasis on basic motivation,ability
to pay, and attitude or level of cooperation. If a borrower remains delinquent and has been
uncooperative, non-responsive, or unwilling to cure the existing default by reasonable means, Servicer
will recommend foreclosure.
This step is generally not taken Until a loan becomes over 120 days delinquent. Upon the Client's
approval, and in accordance with'respective local, state and federal statutes, Servicer will send the
borrower a notice of intent to foreclose/demand letter, with a copy to the Client. If no response Is
received within 30 days/Senvicer will advise the Client of the non-response and will proceed to
foreclosure. Servicer will properly document the steps taken to affect a cure.
If the loan Is-not reinstated (brought current) or paid off, Servicer will continue foreclosure up to and
including the sale of the property. If the Client desires Servicerto perform property management,a third-
party property management vendor will be engaged, Servicer can identify,track and pay bills related to
property preservation, the costs of which remain the responsibility of the Client, Upon sale of the
property, Servicer will return the-proceeds of the sale to the Client less foreclosure fees and previously
un-reimbursed costs incurred. •
In the event the borrower reinstates the loan, Servicer will remit to the Client payments received from
the borrower. For those loans that are reinstated by the borrower,Servicer will resume normal servicing
functions.
•
Bankruptcy Administration Services
1. Chapter 7 Bankruptcy:
a. Upon receipt of notification from a court of law,debtor(borrower),or the Client,of a Chapter 7
bankruptcy for a debtor serviced by Servicer,Servicer will modify the account in preparation for
monitoring of payments. Additionally, a Reaffirmation Agreement will be generated and
forwarded to the borrower's attorney (debtor's counsel) for signature, and to the appropriate
court upon receipt of the executed document, This fully enforceable agreement,if executed,will
retain the lien as secured and will keep the lien from being discharged as part of the Chapter 7
discharge. If the borrower has no legal counsel and has filed their bankruptcy petition "pro se",
(on their own behalf) or with the assistance of a licensed paralegal, Servicer can communicate
directly with the borrower,
b. Upon default of borrower's remittance of payments during the bankruptcy, Servicer will notify
the borrower's (debtor's) counsel and Chapter 7 Trustee advising of the default, but If filed pro
se,then the debtor would be notified directly. --
c, Should the Chapter 7 Trustee determine that assets are available for distribution to creditors,
Servicer will file a Proof of Claim on behalf of the Client
2. Chapter 13 Bankruptcy:
a. upon receipt of notification from a court of law,debtor(borrower),or the Client,of a Chapter 13
bankruptcy for a debtor serviced by Servicer,Servlcer will notify the Client its Intention to file a
Proof of Claim as well as supporting bankruptcy documentation,and will file with the appropriate
court. Upon receipt of a returned filed Proof of Clairn from the court,Servicer will forward a copy
of same to the Client and will begin monitoring post and pre-petition payments to borrower's
loan account.
b. Upon default of borrower in the remittance of post-petition payments,Servicer will notify the
borrower's(debtor's)counsel of the default,Instructing that further default will result In the filing
of a Motion for Relief.If the borrower has no legal counsel and has filed their bankruptcy petition
"pro se", (on their own behalf) or with the assistance of a licensed paralegal, Servicer can
communicate directly with the borrower. In addition, notification of the default will be
forwarded to the Trustee's office. Should there be a continued default in post-petition payments,
and at the instruction of the Client,Servitor will file the Motion for Relief.Once authorized by the
court,and as directed by the Client,Servicer may then begin foreclosure proceedings.
Subordination Processing
1. Subordination Request Package: Upon a borrower's request for a subordination,Servicer will send a
Subordination Request Package to the borrower or designee(lender or title). The Client may require
the borrower to pay the cost of the subordination processing at application or the Client may pay the
cost upon billing from Servicer,
2. Review Process: The purpose of the subordination review process is to determine that the new senior
loan on the borrower's property will be made in conformance with the Client's subordination policy
and that the Client's title position and security for its note is properly treated. Also, a review of
income of the borrower may be performed if there are ongoing restrictions on Income levels for the
program participant. Documentation typically required for the review may Include the following:
a. Letter from borrower with reasons for requesting subordination
b. FNMA 1003 application,or other applicable application,for new senior loan
c, Lender's approval of new senior loan
d, Title report
e. Appraisal
f. Closing instructions and estimated closing statement
g. Credit report(If required)
h. Tax return or other income documentation (If required)
i. Completed Subordination Agreement ready for signature
J. Request for Notice document on new senior loan(s)
3. Document Preparation: Servicer prepares subordination documents, or can review documents
prepared by the new senior lender. These documents generally include:
a. Subordination Agreement
b. Request for Notice document on new senior loan(s)
c. Closing Instructions
4. Recommendation: At the completion of the review, a report is forwarded to the Client with a
recommendation to either approve the request and to execute the Agreement, or to deny the
request. The report will contain a recapitulation of pertinent Information such as lowered monthly
payment amounts,old and new LTV's,new and old senior debt loan amounts,etc.
5. Approval: Upon the Client's approval of a request for subordination, the Client will forward to
borrower's lender or Title Company:
a. Completed and executed Subordination Agreement between the Client and borrower
b. Closing instructions dictating terms/use of Subordination Agreement document
c. Request for Notice document for new senior loan
Income Re-verifications
1. Level One (Income Only):
a. In keeping with the provisions of the borrower's promissory note and/or loan agreement,
AmeriNat will forward an income re-verification package to the borrower. The package will
contain instructions and forms needed to complete the re-verification.
b, If the required information has not been received within two weeks, AmeriNat will send a
reminder letter.
c. If the borrower falls to respond within the allotted time frame,AmeriNat will notify the Client
of the borrower's non-compliance.
d. Upon receipt of a completed re-verification package, AmeriNat will perform the following
tasks:
- Verify that forms are complete and proof of Income has been received.
- Calculate the borrower's income to determine continued compliance with the Client's
program requirements for income.
- Forward re-verification report to the Client, with a recommendation for continued
deferral or amortization.
- If the recommendation is to amortize the loan, and the Client approves,AmerlNat will
prepare necessary loan documents (additional charges will apply). The loan documents
will be forwarded to the Client for borrower and the Client signatures. AmeriNat will
record necessary documents and will begin collecting under the new paymentschedule.
2. Level Two(Income,Debt, and other Program Requirements):
Includes level one services plus the following:
a. AmeriNat will order credit reports on borrower and will calculate the borrower's debt to
Income ratio to determine if borrower has present capacity to make monthly loan repayments.
b. AmerlNat will receive documentation (established by the Client) to determine that program
requirements have been met,e.g.continued occupancy,Insurance,etc.
c. AmerlNat will forward a re-verification report that includes the status of the borrower's
income, capacity for incurring additional monthly note repayments, and compliance with the
Client's program requirements.
Property Conditions Profile and Affidavit of Owner
1. Property Conditions Profile:
a. AmeriNat engages a site visit of the owner's property to determine the outer condition of the
dwelling and the condition of detached structures and grounds.Two photos will be taken to
document the condition of the property. NOTE: AmeriNat will not enter upon the owner's
private property.
b. Property profiles rate (good, fair, poor) the condition of the property, and also comment on
the following: roof type, property type,structure color, neighborhood condition,construction
type,environmental hazards,and status of utilities.
c. If the dwelling appears vacant or abandoned, it will be noted in the report.
d. Property profiles may be ordered by the Client for varying frequencies, e.g., once every two
years,once every three years,etc.
2. Affidavit of Owner:
AmeriNat will forward an instructional letter and Affidavit of Owner to the borrower.The Affidavit
requires the owner to affirm continued compliance with provisions of the promissory note and/or
rehabilitation agreement.Such provisions may include, but are not limited to,the following:
- Continued residence
-- Timely payment of property taxes
- Ongoing hazard and flood insurance coverage
- Timely payment of sums due to superior hen holders
• Proper maintenance of the property
II .,
i I
Non-subordination
If no response Is received within two weeks, AmeriNat will send a second letter, again requesting
owner to sign and return affidavit.
AmeriNat will compile responses and will forward original affidavits to the Client.
Reports
Servicer's standard reports are designed to meet the Client's objectives and funding source requirements.
Data reporting is flexible and can be reported in several ways, including program type, funding source
and funding year. Reports are available to the Client online through Servicer's portal. The Client has
unlimited access to account and portfolio data through the portal and can view the information as well
as generate reports that can be downloaded Into Excel.
1, Portfolio Status Report: The report provides a comprehensive accounting per loan of the total
portfolio on a monthly basis. The report Identifies annual payments made, remaining balances,
borrower's name and account number,original loan balance,Interest rate,and loan term.For those
deferred loans accruing interest,the report shows the ongoing accrued interest balance.
2. Current Month Reconciliation Report: This monthly report serves as reconciliation for the loan
payments remitted by borrowers.
3. Delinquent Aging Report: This report reflects delinquent accounts at the 30,60,90,and over 90-day
levels as of the end of the month. Borrower accounts moved into the forbearance or foreclosure
process are designated.
4. Fee Detail Report: This monthly report details Servicer's fees assessed and overall remittances on a
per loan basis.
5. Escrow Deficit Report: This monthly report details advances made by Servicer on borrower accounts
with deficient escrow balances and tracks the amount to be included with or deducted from the
Client's monthly remittance;a net shortage/negative will be deducted and a net overage/positive will
be remitted.
6. Account information Report: This report provides a borrower profile, loan term and current balance
and status information for individual borrower accounts within a client's portfolio. It includes a vast
amount of information on particular accounts within the Client's portfolio.
7. Payment History: This report details transactions on individual accounts for the current year's
activity,
8. Payment History with Memos: Servicer uses a series of memo codes to help classify various borrower
requests or processing activity. Activities subject to memo code classification include,for example,
insurance request letters,payoff requests, and other miscellaneous borrower questions. This report
summarizes the loan history with identification of these types of activities along with associated
comments by Servicer personnel.
i
9. Additional Standard Reports:
• Borrower with Balances
• Open Accounts
• Closed Accounts
• Account Status Report
• Account Memo Listing Report
• Borrower Property information
• Escrow Activity
• Late Charge Activity
• Daily Transactions Summary
• Manual Adjustments
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EXHIBIT
COMPENSATION SCHEDULE
Loan Portfolio Management
Flow Loan Set-up fee: $55.00 per loan
II
Amortized Monthly Service Feet: 1/24 of 1% per month ..
of original principal loan amount per month with a minimum fee of$15.00 and a maximum fee of$20.00
for each loan In the portfolio. Escrowing and/or monitoring of taxes and Insurance are Included with the
service at no additional cost,except for a one-time tax service vendor fee if acceptable transferable tax
contracts are not already in place.
Additional monthly fee for loans over 60 days delinquent: $25.00 per loan
Monthly Service Fee for Deferred Loans:
i. Warehouse:$4.00 per loan per month
IL Warehouse and monitor of taxes and/or insurance:$10.00 per loan per month plus a one-time
tax service vendor fee.
Ill. Warehouse and escrow of taxes and/or insurance:$15.00 per loan per month plus a one-time
tax service vendor fee.
Iv. Flat fee for receiving occasional payments or forgiveness event on deferred loans:$15.00 per
payment or forgiveness event.
Tax Service Fee
If it Is determined that Tax Service is needed,then a one-time fee of$80.00 per loan for loan amounts up
to$500,000 will be passed through to the Client. For loan amounts over$500,000,there is an additional
charge of$10 per$100,000. Future charges may vary based on outside vendor pricing. Additional or
supplemental charges imposed by the respective taxing authority for procurement of duplicate tax bills
will be directly passed through to the Client.
Forbearance Plans
If requested by the Client,Servicer will charge a flat fee of$395.00 per loan per occurrence to institute a
formal forbearance plan (usually in excess of 6 months in duration and with approval of the Client). The
Client may require the borrower to pay this fee. Informal forbearances (usually less than 6 months In
duration) to allow a delinquent borrower to catch up and bring their loan current are performed at no
charge to the borrower or the Client.
2 Escrowing and/or monitoring of taxes and insurance are Included with the service at no additional cost except
for a one-time tax service vendor fee if acceptable transferable tax contracts are not already in place.
Loan Modification Analysis
1, Preliminary screening and Application Review (each) $200.00
2, Analysis and Recommendation; plus outside costs* $195,00
3. Subsequent Analyses and Recommendations(each) $165.00
4. Loan Document Preparation,plus outside costs* $350.00
5. Document redraws(per occurrence) $165.00
Cancellation Fee:The fee due will be the sum of the fees for tasks (1-4 above) completed, plus one-half 111
of the fee for the task in process at the time of cancellation.
* Outside costs include, but are not limited to, title, credit, and appraisal / valuation. These costs are
passed through from outside vendors and are subject to marketplace increases.
Loan Foreclosure
If requested by the Client,Servicer will charge the following fees for Loan Foreclosure services:
1. Document Preparation: A one-time charge of $455.00 to prepare documents to commence
foreclosure proceedings and to manage the foreclosure process on behalf of the Client, In addition
to the above foreclosure service fee,Servicer will deduct and pay from remittance or bill the Client
for other costs incurred In the foreclosure process such as,but not limited to,conventional legal fees,
sheriffs' deposits,bankruptcy closing costs,fees set by law,etc, These fees will be quoted on a case-
by-case basis upon request by the Client and within applicable statutory limits.
2. Reinstatement Terms: The Client reimbursement for foreclosure services rendered,and Its costs and
other charges,will be made by the borrower upon reinstatement orflail payment of the Deed of Trust
or Mortgage under foreclosure.
3, Property Management: $150.00 per property per month plus property management vendor fees.
Property preservation expenses remain the responsibility of the Client.
Bankruptcy Administration Services
1. Account Modification Fee: $70.00 per occurrence to modify account for respective Bankruptcy
monitoring.
2. Proof of Claim Filing Fee(per occurrence):
a. $475.00 for Chapter 7
b. $1,350.00 for Chapter 13
3. Reaffirmation Agreement Filing Fee:$350.00 per occurrence,
4. Monitoring and Repayment Fee:$20.00 per loan per month for the duration of an active bankruptcy
case.This includes monitoring respective payment plans,discharges,and dismissals.
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5. Motion for Relief Filing Fee:$280,00 per occurrence plus out-of-pocket fees and costs. Such fees and
costs Include, but are not limited to, obtaining local counsel in the bankruptcy jurisdiction and as
approved by the Client. The Client will be responsible for the payment of fees for filing suit or related
outside costs due Servicer that cannot be reimbursed from the borrower.
Subordination Processing
A fee of$465.00 per analysis per loan.
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Income Re-verifications
A $320,00 per file charge will be made for a level one income verification. A level two verification,
• Including Income, debt and program requirements,will be conducted at a fee of$455,00 per file.
Additional fees upon occurrence Include:
a, Ordering of any Income verification documents, e.g. verification of employment, verification of
deposit:$65.00 per document
b. When a re-verification package, reminder letter,and report is issued by Servicer for non-responsive
borrower,a cancellation fee of$90.00 per non-responsive file.
c. To reopen a file that has been assessed a cancellation fee, the file will be the full fee less any
previously assessed cancellation fee.
d. On a file for which a recommendation has been provided but Is thereafter resubmitted with changed
or additional Information,a re-evaluation fee of$95.00 per resubmission.
Minimum Monthly Servicing Billing $1,000.00
If the cumulative amount of fees to be charged for loan servicing activities, excluding pass-through
charges, within one calendar month is less than the minimum monthly billing amount above, said
amount will be charged,
Other services and Per-Event Fees
Check by phone service: $10.00 per loan per occurrence.
Consulting: $225.00 per hour,one hour minimum.
Tickler Notifications: A$15.00 per notification may be charged.
Loan Transfer Fee: $75.00 per loan one-time fee if transferred from Servicer.
Property Conditions Profile: $65.00 per occurrence.
Affidavit of Owner: $18.00 per loan(entire portfolio done at one-time)with a$500
minimum fee.
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Pass-through(reimbursable)expenses
Pass-through (reimbursable) expenses, Including but not limited to postage costs for statements,
letters, and other notifications to borrowers, advances necessary for principal and interest payments,
tax and Insurance payments,legal and other professional fees for loss mitigation activities,costs of tax
contracts,and other out of pocket costs necessary for performance of the scope of service tasks are to
be reimbursed by Client monthly. Amounts for pass-through expenses will be deducted from
remittances.
Pass-through(reimbursable)expenses not reimbursed monthly will be considered servicer advances and
will be subject to an interest charge at a rate of 1%per month compounded. A finance charge of 1%per
month compounded will be applied to invoices outstanding and unpaid for more than 60 days.
Extraordinary Account Research and/or Loan Reconstruction
Servicer will conduct ongoing routine maintenance and general customer service activities on borrower
Information and balances as part of its servicing duties at no additional cost. Should the Client request
additional research to be conducted,or if the Client engages Servicer to conduct a Loan Reconstruction
Service on its portfolio, an extraordinary research fee of $225.00 per hour will be charged, with a
minimum of one hour per occurrence. Such fee will be approved by the Client before the research is
conducted.
When research is conducted at the request of the Client because of a discrepancy between the Client's
records and Servicer's records relating to the principal balance or other loan information, and the result
of the research determines that the discrepancy was the result of activity being posted at the Client and
not forwarded to Servicer for updating of its records,the extraordinary research fee will be charged for
the time spent on the research.
For services or loans with unique servicing characteristics that are not shown above, the Client and
Servicer acknowledge that additional and/or different servicing requirements may be appropriate.
Servicer will work with the Client in good faith to establish written terms for the servicing of these types
of loans or additional services requested. Any agreement on the servicing provisions for any non-
standard portfolio or additional services, including pricing for said services, shall be memorialized In a
Statement of Work("SOW").
Fees are subject to annual Increases beginning July 1, 2026 based on the change In the national
consumer price index,but no less than 3%.
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