re Proposal for RFP No. 24-25-20Housing Loan ServicingPresented to: City of Visalia PROPOSAL DUE DATE: April 9, 2025, by 2:00 PM PST Micki AbelVP of Business [email protected](319) 541-3689www.amerinat.com
Table of Contents A. General Information ............................................................................................................................. 1B. Proposed Approach............................................................................................................................... 6C. Staff Qualifications and Related Experience ....................................................................................... 23D. Proposed Fee Structure and Schedules .............................................................................................. 35E. Conflict of Interest .............................................................................................................................. 36F. Required Forms ................................................................................................................................... 37 1 A. General InformationAmeriNational Community Services, LLC d/b/a AmeriNat 217 S. Newton AvenueAlbert Lea, MN 56007Phone: (800) 943-1988Fax: (562) 927-2362For clarifications needed on items contained in this proposal, the City may contact:Adrienne Thorson, Chairwoman and CEO Phone: (800) 943-1988 ext. 1263Email: [email protected] AmeriNat is a Limited Liability Company organized and existing under the laws of the State of Minnesota. Although not a small business, disadvantaged business or a minority and/or women owned business, AmeriNat prioritizes cultural diversity and inclusion throughout its organization, with a minority representation of 51% in its workforce.PersonnelAmeriNat is proud to have a highly trained and motivated, caring team of staff members. Approximately 130 employees combine proven experience with a level of personal care and concern for their clients and borrowers that is considered to be unmatched in this industry. Robust hiring criteria is in place, background checks and screening processes are utilized, and supervisor to staff ratio goals are in place for sufficient oversight, mentoring and feedback. The managers listed below will manage the City’s relationship and portfolio needs and will be assisted by other staff members. AmeriNat considers this information to be proprietary and confidential information, which shall not be disclosed outside the City and shall not be duplicated, used, or disclosed - in whole or part - for any purpose other than to evaluate this offer/proposal.Staff member RoleAdrienne Thorson, Chairwoman and CEOOversees company performance and the delivery of services to clients. Ms. Thorson has over 35 years of experience in financial services and manages the firm’s success to established client satisfaction objectives.
2 Mark Fredericks, Chief Operating OfficerOversees daily operations on portfolio throughout the life of the contract. Direct supervision of Operations team that will work on the City’s portfolio. Jody Montgomery, Chief Technology OfficerLeads the strategic direction and tactical functions of the Information Services team and addresses customized technology needs of clients.Michael Torres, Chief Product OfficerOversees project and service development for the firm. Mr. Torres has over 35 years of experience with AmeriNat’s loan servicing operations.Claudia Herrera, Director of Audit and ComplianceResponsible for the development and management of the audit and compliance functions for AmeriNatKatie Lee, Director of Investor ServicesKey liaison between clients and AmeriNat staff/operations. Oversees client support team functions and deliverables. Investor Services is the City’s key liaison at AmeriNat.Karen Morse, Sr. Manager of Investor ServicesFirst line for client requests, special needs, portfolio transfers, and supporting client satisfaction and service levels. Debbie Vranesh, Director of OperationsOversees the single-family servicing activities of the firm, including responsibility for the City’s portfolio.
3 Andy Olinski, Sr. Manager, Default ServicesOversees collections and loss mitigation teams, works with clients for delivery of portfolio performance objectives, including responsibility for the City’sportfolio.Danielle Wangsness, Sr. Manager, OperationsCharged with ensuring the health of the day-to-day operations, which spans customer service, payment processing, taxes and insurance, cashiering, and special loans.LaShonta Brooks, Customer Service ManagerLeads customer service team handling borrower communications, including general customer service and reconveyance, payoffs, and other mortgagor service requests.Christina Arteaga, Loss Mitigation ManagerManages the duties of the Loss Mitigation Department to ensure adherence to company policies and procedures, state and federal regulations, and client contract requirements. Lucia Jackson, Collections ManagerManages the daily duties of the Collections Department to ensure adherence to company policies and procedures, state and federal regulations, and client contract requirements. Ensures collections / collections timeline and delinquency goals are met and maintained. Frank Perez, Tax & Insurance ManagerDirects activities for escrowed and non-escrowed accounts including the payment of property taxes, homeowner’s insurance, HOA payments, escrow analysis and other escrow related tasks.Cynthia Mendez, Cashiering ManagerEnsures cashiering related processes including posting payments, lockbox, adjustments, payoffs, and other assigned departmental tasks are completed in accordance with regulatory requirements, and applicable policies and procedures.
4 Estella Villalobos, Payoff ManagerEnsures payoff related processes including payoff statements, payoff shortages, maturing loans, executing and recording reconveyances/lien releases and other assigned departmental tasks are completed in accordance with regulatory requirements, and applicable policies and procedures.Jason Rembert, Quality Control ManagerResponsible for maintaining quality control over various activities performed by the company.Micki Abel, VP of Business DevelopmentOversees the business development of the firm.Experience summaries of these key staff members are in Section C. of this proposal. The City’s key contact members are Katie Lee and Karen Morse. Changes in staffing will be reviewed with the City in compliance with applicable proposal or contract requirements.Insurance AmeriNat maintains a broad package of insurance coverage including business and umbrella liability, management liability, workers compensation, cyber, automobile, personal property and other standard coverages along with errors and omission policies satisfying applicable servicing requirements and a standard Mortgage Banker's Blanket Bond. AmeriNat’s limits for the policies indicated in the City’s RFP are as follows:General Liability: $1,000,000 per occurrenceAutomobile Liability: $1,000,000 per occurrenceErrors and Ommission: $5,000,000 per occurrenceWorker’s Compensation: $1,000,000 per accident
5 ReferencesThe City is encouraged to contact the individuals listed below for an assessment of our capabilities.AmeriNat considers this information to be proprietary and confidential information, which shall not be disclosed outside the City and shall not be duplicated, used, or disclosed - in whole or part - for any purpose other than to evaluate this offer/proposal.Client Contact InformationLos Angeles Housing Department1200 West 7thStreetLos Angeles, CA 90017Mark Gandara, Finance Development Officer IIPhone: (213) 808-8677 [email protected] City of Eureka 531 K Street Eureka, CA 95501Kristen RaymondPhone: (707) [email protected] City of StocktonEconomic Development Department400 E. Main Street, 4thFloorStockton, CA 95202Janice Miller, Assistant DirectorPhone: (209) [email protected] 6 B. Proposed ApproachAmeriNat understands the City’s requirements and will provide the services and meet the requirements described in the City’s RFP. As the City’s current servicer, there will be no transfer process necessary. We are familiar with your staff and your systems and needs, and you will not need to wait for us to get up to speed. We would be pleased to continue servicing responsibility for the City’s existing and future loans. The services requested will be provided through the combined resources of our in-house servicing department and delinquency management department, which work hand in hand with the IT and management areas of the firm to provide seamless service delivery. Detailed servicing steps are laid out in the following pages. Loan Servicing for Amortized and Deferred Loans1. Loan Boarding: a. Flow Loans: The City completes an electronic loan setup form, available on AmeriNat’s portal, for flow loans being transferred to AmeriNat for servicing. The fully completed form is uploaded to the AmeriNat portal. 2. Introductory Package: Upon boarding of a new loan, AmeriNat will send a welcome package to the borrower. This welcome package contains a Notice of Servicing Transfer, Fair Debt Notice, FACT Act Notice, and a variety of options to submit payments. 3. Collection and Remittance of Payments: AmeriNat 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 lockbox, multiple payment options online, reoccurring ACH, and through “check-by-phone”1, and via the AmeriNat app. These remittances will be posted to the loan and ancillary records in accordance with the loan documents and the City’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 City and the borrowers as applicable. AmeriNat balances cash received and transmitted and loan portfolio totals on a daily and monthly basis. Remittances will be forwarded to the City monthly net of fees and other authorized charges due to AmeriNat. 4. Payment of Property Taxes: At the City’s request, AmeriNat will order a tax service contract and monitor the timely payment of property taxes. 5. Insurance Monitoring: AmeriNat will notify the insurance agent in writing that AmeriNat is monitoring premium payments and is to be made aware of delinquencies, non-renewals or cancellations. AmeriNat will force place insurance in accordance with respective regulation (see Lender Placed Insurance section). 1Additional fees may apply if not charged directly to the borrower. 7 6. Escrow/Impound Account: If the City chooses, AmeriNat will establish a borrower escrow/impound account for the payment of taxes and insurance. AmeriNat 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, AmeriNat’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 City’s current escrow analysis process, borrowers’ escrow analysis may result in a shortage and/or escrow payment increase at the time of AmeriNat’s first analysis. This may impact borrowers’ ability to make increased monthly payments to escrow. Should the City request alternative handling of loan accounts with escrow payment increases, this may result in the City incurring extraordinary services charges. If the City chooses to establish an escrow/impound account, AmeriNat will track and reconcile advances made by AmeriNat on borrower accounts with escrow deficits as a result of payments made on the borrower’s behalf in excess of their escrow balance. The escrow deficit account will be reconciled monthly, compared to advances made by AmeriNat and escrow payments collected from the borrowers. The net change will be included or deducted from the City’s monthly remittance; a net shortage/negative will be deducted and a net overage/positive will be remitted. Advances made by AmeriNat that are not reimbursed by the City the following month will be subject to an interest charge of 1% 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 City remains responsible for escrow advances made by AmeriNat. At portfolio transfer AmeriNat will require a cash deposit equal to the total amount of positive escrow balances. Negative escrow balances will be set 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, AmeriNat reserves the right to request the City to deposit an amount into reserve in the Client Escrow Deficit account to cover the anticipated necessary advances. 7. Late Fees: In keeping with the provisions of the City’s promissory note, AmeriNat will assess and retain a late fee when payment is not made within the grace period. Lender Placed InsuranceIn 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, AmeriNat will request lender-placed insurance from AmeriNat’s insurance provider. AmeriNat 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 City wishes to select loans for the force placement of insurance on an “as requested” basis, it will be the City’s responsibility to verify the placement has been completed by AmeriNat. This quality control step 8 aids in ensuring that the City’s instructions were received by AmeriNat, usually via email. The City can review the coverage through monthly reports from AmeriNat indicating insurance status.1. Coverage is bound upon receipt of request with an effective date up to 90 days prior to receipt of the request.2. AmeriNat’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. If the 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 an earned premium. 4. If the borrower does not provide proof of coverage, AmeriNat’s insurance provider will send an insurance policy and notification of premium to the borrower and bill AmeriNat for a one-year policy. If the borrower does not have an established impound account; AmeriNat 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 City 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 City, 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 AmeriNat or the City. Account InquiriesBorrowers and the City have 24-hour electronic access to their loan information via AmeriNat’s website at www.amerinat.com. Continuous access to loan account information is also provided during normal working hours through toll free customer service telephone lines. When requested by a borrower, AmeriNat will provide, without charge, a detailed statement of transactions relating to the borrower’s payments and/or escrow account. Additional Portfolio Management Services1. Loan Payoff Quotations, Satisfactions, Reconveyances: AmeriNat will provide Loan Payoff Quotations and will perform Satisfactions and Reconveyances of Mortgage at the borrower’s expense at the City’s request. 9 2. Loan Amortization Schedules: AmeriNat will provide Loan Amortization Schedules upon request.3. Tax Forms: Pursuant to IRS regulations and, on behalf of the City, AmeriNat will submit required tax forms for borrowers paying interest on City loans.4. Year-End Account Summary: If required by regulation, AmeriNat 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 AmeriNat made on the borrower’s behalf for taxes and insurance, and remaining escrow balance.5. Tickler Notifications: AmeriNat will provide for an annual tickler notification at the City’s request.6. Loan Confirmation Audits: AmeriNat will complete loan confirmation audit requests when requested by the City, 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 ReconstructionIf requested by the City, AmeriNat 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. Loan TransferIn the event the City requires AmeriNat to transition loans back to the City or to another servicer, AmeriNat will gather and package loan files (hard-copy and/or electronic copy) for shipment. AmeriNat’s Investor Services and IT departments will work with the City’s staff to electronically transmit servicing data in an agreed upon format. Collections and Loss MitigationCollection efforts are conducted in accordance with the City’s requirements, pertinent regulations, GSE/insurer requirements and industry standard practice. These activities 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 for the borrower possible escalated collection activity up to and including foreclosure. The letters emphasize the seriousness of the situation, the potential 10 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 HUD 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: AmeriNat 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, AmeriNat 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 AmeriNat to recommend foreclosure. 5. 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 City and AmeriNat.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 AmeriNat, with notice immediately provided to the City. Formal modifications to promissory note terms and forbearance plans of greater than six months duration are subject to the City pre-approved parameters. Forbearance recommendations outside of the pre-approved parameters require individual City approval if they are to move forward. Approval timeframes are subject to regulatory guidance, and therefore if the City does not respond to requests for approval within the agreed-upon timeframes, AmeriNat will deny the application or request. Once approved, AmeriNat will implement the new payment schedule. Should a borrower default from the new payment schedule without cause, AmeriNat 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, AmeriNat will document the circumstances and provide the following:
11 i. Letter from borrower requesting the City’s consideration of hardshipii. Nature of the hardshipiii. Expected duration of the hardshipiv. Evidence to substantiate hardshipv. Forbearance Plan ProposalForbearance Plans are executed by AmeriNat in accordance with the pre-approved guidelines established with the City. Forbearance plan recommendations outside of the approved parameters require individual approval by the City. Approval timeframes are subject to regulatory guidance, and therefore if the Citydoes not respond to requests for approval within the agreed-upon timeframes, AmeriNat will deny the application or request. Once the agreement is executed with the borrower, AmeriNat 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, AmeriNat 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 underwriting3. Analysis and Recommendation: Underwriting of the application is performed using the City’s eligibility criteria. This analysis will reflect information such as ability to repay or affordability (debt-to-income ratio), status of 1stmortgage, 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 City. If the recommended modification falls outside of AmeriNat’s delegated authority under approved parameters, the recommendation along with the supporting documentation will be sent to the City for approval. Approval timeframes are subject to regulatory guidance, and therefore if the City does not respond to requests for approval within the agreed-upon timeframes, AmeriNat will deny the application or request.4. Approval: Once a loan modification has been approved, AmeriNat shall prepare and forward the required documents to the borrower for signature and recording, unless the City retains these functions. If the City retains approval authority, the City 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. 12 After the documents have been executed, originals will be retained by the City and copies will be promptly sent to AmeriNat along with funds required for escrow, legal fees, etc. After receipt of executed modification documents and required funds, AmeriNat 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 ForeclosureThe 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. AmeriNat 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, AmeriNatwill recommend foreclosure. This step is generally not taken until a loan becomes over 120 days delinquent. Upon the City’s approval, and in accordance with respective local, state and federal statutes, AmeriNat will send the borrower a notice of intent to foreclose/demand letter, with a copy to the City. If no response is received within 30 days, AmeriNat will advise the City of the non-response and will proceed to foreclosure. AmeriNat will properly document the steps taken to affect a cure.If the loan is not reinstated or paid off, AmeriNat will continue foreclosure up to and including the sale of the property. If the City desires AmeriNat to perform property management, a third-party property management vendor will be engaged. AmeriNat can identify, track and pay bills related to property preservation, the costs of which remain the responsibility of the City. Upon sale of the property, AmeriNat will return the proceeds of the sale to the City less foreclosure fees and previously un-reimbursed costs incurred.In the event the borrower reinstates the loan, AmeriNat will remit to the City payments received from the borrower. For those loans that are reinstated by the borrower, AmeriNat will resume normal servicing functions.Bankruptcy Administration Services1. Chapter 7 Bankruptcy:a. Upon receipt of notification from a court of law, debtor (borrower), or the City, of a Chapter 7 bankruptcy for a debtor serviced by AmeriNat, AmeriNat 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 13 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, AmeriNat can communicate directly with the borrower. b. Upon default of borrower’s remittance of payments during the bankruptcy, AmeriNat 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, AmeriNat will file a Proof of Claim on behalf of the City. 2. Chapter 13 Bankruptcy:a. Upon receipt of notification from a court of law, debtor (borrower), or the City, of a Chapter 13 bankruptcy for a debtor serviced by AmeriNat, AmeriNat will notify the City of 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 Claim from the court, AmeriNat will forward a copy of same to the City 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, AmeriNat 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, AmeriNat 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 City, AmeriNat will file the Motion for Relief. Once authorized by the court, and as directed by the City, AmeriNat may then begin foreclosure proceedings.Subordination Processing1. Subordination Request Package: Upon a borrower’s request for a subordination, AmeriNat will send a Subordination Request Package to the borrower or designee (lender or title). The City may require the borrower to pay the cost of the subordination processing at application or the City may pay the cost upon billing from AmeriNat. 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 City’s subordination policy and that the City’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:
14 a. Letter from borrower with reasons for requesting subordinationb. FNMA 1003 application, or other applicable application, for new senior loanc. Lender’s approval of new senior loand. Title reporte. Appraisalf. Closing instructions and estimated closing statementg. Credit report (if required)h. Tax return or other income documentation (if required)i. Completed Subordination Agreement ready for signaturej. Request for Notice document on new senior loan(s)3. Document Preparation: AmeriNat prepares subordination documents, or can review documents prepared by the new senior lender. These documents generally include:a. Subordination Agreementb. 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 City 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 City’s approval of a request for subordination, the City will forward to borrower’s lender or Title Company:a. Completed and executed Subordination Agreement between the City and borrowerb. Closing instructions dictating terms / use of Subordination Agreement documentc. Request for Notice document for new senior loanLoan AssumptionsUpon request from a borrower or authorized representative of a borrower’s estate, AmeriNat will review the loan documents to determine options for loan assumptions. If applicable, AmeriNat will forward an income certification or other documentation to the borrower for evaluation purposes. Recommendations for assumption will be provided to the City for approval if preferred.Review of Loans for Changes in TitleAnnually, loans will be reviewed to determine whether title has been transferred away from the signer. Loans on the delinquency list can be reviewed monthly upon request. The fee matrix provided by the City did not include this service; this fee will be negotiated upon request of service. 15 Short Sale RequestsA short-sale form will be provided to a borrower upon request. AmeriNat will review the short sale request and provide a recommendation to the City. If approved, a reduced payoff demand will be prepared. Short sale proceeds will be distributed in accordance with the original loan requirements.Income Re-verifications1. 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 fails to respond within the allotted time frame, AmeriNat will notify the City 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 City’s program requirements for income.Forward re-verification report to the City, with a recommendation for continued deferral or amortization. If the recommendation is to amortize the loan, and the City approves, AmeriNat will prepare necessary loan documents (additional charges will apply). The loan documents will be forwarded to the City for borrower and the City signatures. AmeriNat will record necessary documents and will begin collecting under the new payment schedule.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. AmeriNat will receive documentation (established by the City) to determine that program requirements have been met, e.g. continued occupancy, insurance, etc. 16 c. AmeriNat 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 City’s program requirements.Property Conditions Profile and Residency Verifications1. 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 City for varying frequencies, e.g., once every two years, once every three years, etc.2. Residency Verification: 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 residenceTimely payment of property taxesOngoing hazard and flood insurance coverageTimely payment of sums due to superior lien holdersProper maintenance of the propertyNon-subordinationIf 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 City. ReportsAmeriNat’s standard reports are designed to meet the City’s objectives and funding source requirements. Data reporting is flexible and can be reported in several ways, including program type, funding source and 17 funding year. Reports are available to the City online through AmeriNat’s portal. The City 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 AmeriNat’s fees assessed and overall remittances on a per loan basis.5. Escrow Deficit Report: This monthly report details advances made by AmeriNat on borrower accounts with deficient escrow balances and tracks the amount to be included with or deducted from the City’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 City’s portfolio. 7. Payment History: This report details transactions on individual accounts for the current year’s activity.8. Payment History with Memos: AmeriNat 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 AmeriNat personnel. 9. Additional Standard Reports: Borrower with BalancesOpen AccountsClosed AccountsAccount Status ReportInsurance Status ReportAccount Memo Listing Report Borrower Property Information 18 Escrow Activity Late Charge ActivityDaily Transactions SummaryManual AdjustmentsLoan Processing, Underwriting, and Document PreparationThrough an affiliate company (included in “Consultant” below), loan processing underwriting and document preparation can be offered to the City.1. Application Submission: Upon receipt of a complete loan application package, documents and supporting materials should be sent to Consultant for processing. An efficient underwriting process is predicated on the file being complete before the review is started. Support materials will be identified in the program description, and we can work with you to develop a checklist for use in file submission. Supporting materials may include but are not limited to, paycheck stubs, W-2's, mortgage statements, property tax bills, and insurance policies when applicable. 2. Preliminary Risk Analysis: Upon receipt of a completed loan application package, Consultant will review the application for accuracy and thoroughness. A Preliminary Risk Analysis (PRA) may be developed to determine that it is reasonable to proceed with processing. The PRA can be developed before incurring outside costs, such as Title Reports and appraisals and can result in avoiding costs being incurred on a loan that cannot be approved. The Preliminary Risk Analysis will include the borrower’s Median Family Income (MFI) and an estimate of the borrower's ability to pay (where applicable) that will address a maximum interest rate conforming to the City’s criteria. The analysis is then sent to the City for approval to proceed. 3. Underwriting Analysis: Upon receipt of an approval to proceed, Consultant will order applicable outside services such as a title report, appraisal, credit report and verifications. Once the firm cost of rehabilitation is known (a contractor bid has been awarded) a final underwriting analysis will be prepared, addressing the following items:Affordability (Debt to Income Ratio Analysis)Current and past credit historyFinancial interest in the property (Loan to Value)Status of title to secure lien positionUpon receipt of verifications and reports, a Final Loan Recommendation (FLR) will be prepared and sent to the City for approval and funding.Loan Document Preparation 19 Once a loan has been approved, the City shall forward to Consultant a Request for Loan Documents containing required information to complete the preparation of loan documents. In accordance with the loan document request, Consultant shall prepare and forward the following documents, templates for which are provided by the City, generally within five (5) business days, for the City’s execution:Deed of TrustPromissory NoteTruth in Lending Disclosure StatementRequest for Notice of Default and SaleNotice of Right to CancelControl InstructionsDeclaration of Covenants, Conditions, and Restrictions (CC&Rs)Other documents as agreed to with the CityOnce the documents are executed by the borrower, the Deed of Trust and Request for Notice are returned to Consultant for recordation with the County Recorder. Following the recording of the Deed of Trust, Consultant shall confirm that the City’s lien position is secure by updating title (when approved by the City).Funds DisbursementThe Funds Disbursement service is powered by our affiliate company, American Deposit Management (ADM). ADM’s American Payment Solutions (APS) program in conjunction with one of their liquid accounts becomes a powerful treasury tool to manage projects. Process and Invoice ApprovalApproval and payment protocol will be established between the City and ADM. No payments are made outside of the protocol. Individual contractor payment accounts are established via ADM’s secure client portal. The City approves and inputs each contractor, invoice, and payment into the portal. ADM pays contractor directly on behalf of the City via ACH or wire. Interface for Accounting and Audit ControlA payment file is generated by ADM’s system daily, weekly, or monthly, and the file is fully customizable depending on the City’s need. Easy and straightforward upload process to integrate with the City's financial software (.xml, .csv, or other file types). ADM can also process tax filings and mail Form 1099 to contractors at the end of each year. 20 Exceptions:AmeriNat has the following exceptions to the City’s sample contract:V. Termination. Section XI. Ownership of Work: AmeriNat requests that the following language be added to item A.:AmeriNat Portal access. The City agrees to access and use the AmeriNat Portal solely for its own internal use, in compliance with operating instructions provided by the Consultant and the terms of this Agreement, and to designate an authorized individual to serve as the Client Data Security Administrator. The City further agrees to treat the AmeriNat Portal and all associated documentation and processes as Confidential Information.Section XIV.: Item C. AmeriNat requests that the following language be added to the following sentence in item a, “…without the written consent of the other party, which such consent shall not be unreasonably withheld.” Add the following to this section:oLicensing:The Consultant operates under the regulation and jurisdiction of various licensing authorities including those states from which the City intends to originate and/or purchase loans. The requirements of which may vary from time to time. If the Consultant’s authority to service loans in a particular state were revoked or otherwise made unreasonable to continue in the then-current processes and in accordance with the terms of this Agreement due to changes in circumstances or regulation, the Consultant will provide prompt notice of its requirement to modify or terminate services and will modify or terminate services before the latest available date as allowed by regulatory authority. Termination under this provision will not be deemed to be a default by the Consultant, and no liability will exist to reimburse the City for losses incurred as a result of the termination. If services are terminated under this provision the City will not be liable to the Consultant for transfer fees specified in the fee section of this Agreement.oConfidentiality:Confidential Information. "Confidential Information"means information which is proprietary to the Consultant and which relates to its existing or reasonably foreseeable business, including, but not limited to, information contained in: products and product design; business methods and techniques; trade secrets, data, specifications, developments and research activity; marketing and sales strategies, information and techniques; long and short-term plans; business policies; current and prospective customer lists, contacts and information; financial, personnel and information system information; and other information concerning the Consultant’s business, its manner of operation, its plans or other information that is not disclosed to the general public or known in the industry and acquired or learned by the City or 21 the City Indemnitees. Confidential Information also includes information about AmeriNat customer or borrowers, including information of the type identified above and including non-public personal identifying information on the same, including but not limited to personal tax identification numbers. Such information shall be treated as Confidential Information irrespective of its source and whether such information is expressly identified as being "confidential" or "trade secret." Nondisclosure. The City agrees, during the duration of this Agreement and at all times thereafter, to hold in strictest confidence and to never disclose, furnish, communicate, make accessible to persons or use for the City’s or another's benefit, Confidential Information. The City also agrees not to permit Confidential Information to be used in competition with the Consultant. The City acknowledges that Confidential Information constitutes a unique and valuable asset of the Consultant, and that disclosure of such Confidential Information would cause irreparable harm to the Consultant for which money damages would not be an inadequate remedy and that, in addition to remedies at law, the Consultant is entitled to equitable relief as a remedy for any such breach. The City agrees to refrain from acts and omissions that would reduce the value of Confidential Information to the Consultant. Required disclosures. The City agrees to provide Consultant notice of disclosures required by a governmental agency, judicial body or law prior to such disclosure being made, or in the event that prior notice cannot practicably be given, simultaneously with the disclosure. The City will cooperate in a reasonable effort to obtain a protective order (at the requesting party’s sole cost and expense) relating to the disclosure of such information. In addition, upon request for the City to mark such information as privileged or confidential when disclosed, the City will cooperate with such request to the extent permitted by law. oCooperation.The City shall cooperate with the Consultant in the execution of the Consultant’s responsibilities under this Agreement. Such cooperation shall include, but not be limited to, the provision of data and information regarding the Loans that is accurate and not in conflict with other information contained in the Loan documents and the timely provision of Loan and collateral documentation necessary for the Consultant to adequately complete its servicing obligations. The City shall update the Consultant with new and relevant information it obtains regarding the Loans being serviced and shall promptly provide updated Loan documentation that is discovered or generated by the City.oCompliance With Late Fees. In order to ensure compliance with respective state statute, the City’s Loans will be boarded and serviced in accordance with the late fee provision in the Loan documents, and where appropriate, said late fee will be reduced to not exceed the maximum amount allowed by law. Loans boarded for servicing that do not contain a late fee provision are subject to an additional monthly servicing fee surcharge. 22 oIRS reporting. If the services to be provided under this agreement include the acceptance of loan payments and/or 1099 reporting (1099-Int, 1099-C, etc.), the Consultant shall submit the required 1098 and/or 1099 forms to the Internal Revenue Service as required. If the Loan data provided by the City does not include a valid social security number for a borrower(s), the Consultant shall exercise reasonable means to obtain such valid social security number(s). If the lack of an available and/or valid social security number(s) results in a penalty or fine assessed by the Internal Revenue Service, the City will be notified of the amount of the penalty or fine and will promptly reimburse The Consultant for such penalty or fine paid or to be paid. 23 C. Staff Qualifications and Related Experience1. Staff Qualifications and ExperienceAmeriNat considers this information to be proprietary and confidential information, which shall not be disclosed outside the City and shall not be duplicated, used, or disclosed - in whole or part - for any purpose other than to evaluate this offer/proposal.Below are the resumes for AmeriNat’s key staff members who will be assigned to the City’s servicing team. The AmeriNat team has direct experience with loan servicing, loan portfolio management and local city and other government loan programs. AmeriNat provides similar services across the country and extensively throughout California. Adrienne Thorsonserves as Chairwoman and CEO. Adrienne has over 35 years’ experience in financial services, including 26 years at AmeriNat. Prior to coming to AmeriNat, Adrienne was CFO of AmericanaNational Bank, served as Market President of four American Bank branch locations and spent 8 years inpublic accounting at CliftonLarsonAllen LLP as a manager in the audit division overseeing audits of both financial institutions and local government clients. Adrienne holds a bachelor’s degree in accounting from Mankato State University and is a Certified Public Accountant. Adrienne will oversee the performance and service delivery of this contract. Mark Fredericksserves as Chief Operating Officer. Mark has over 24 years’ experience directly related to originating and servicing commercial debt, affordable multifamily real estate finance and Section 42 Low Income Housing Tax Credit equity investments. Prior to AmeriNat, Mark was Vice President forWachovia Bank and Vice President for Bank of America. He holds a bachelor’s degree in accounting from Florida State University.Jody Montgomeryserves as Chief Technology Officer. Jody has over 16 years’ experience in IT. Prior to AmeriNat Jody served as the Vice President of IT for Bank Iowa. Jody has an IT degree from Des Moines Area Community College and has certifications in project management, training, and information security.Jody will oversee the IT needs and address customized technology needs related this contract. Michael Torresserves as Chief Product Officer. Michael has over 35 years’ experience working for AmeriNat. Prior to his employment with AmeriNat, Michael served in the United States Marine Corps. Michael holds a bachelor’s degree in business administration with a concentration in Finance from the University of Phoenix. Mike will oversee the project and service development needs related to this contract.Claudia Herreraserves as Director of Audit and Compliance. Claudia has over 18 years of experience in the financial industry. Prior to AmeriNat, Claudia was the Service Operations Manager at Wells Fargo Bank. Claudia holds a bachelor’s degree in business administration with an HR concentration from Southern New Hampshire University. Claudia will be the City’s key contact for requests and special needs. 24 Katie Leeserves as Director of Investor Services. Katie has over 15 years of experience working in financial services. Prior to her role as Director of Client Services, Katie served as AmeriNat’s Compliance and Internal Audit Manager, overseeing regulatory exams and consumer compliance in addition to consulting with the various AmeriNat business units. Katie received her Bachelor of Science degree from St. Cloud State University, where she majored in Finance and minored in International Business. Katie is certified as a Certified Community Bank Compliance Officer by the Independent Community Bankers of America. Katie will oversee the client support team functions and deliverables and will be the key liaison between the City and AmeriNat’s staff/operations. Karen Morseserves as Sr. Manager of Investor Services. Karen has been with AmeriNat since 2003. Prior to her current role, Karen served as the Director of Human Resources. Debbie Vraneshserves as Director of Operations. Debbie has 32 years’ experience working in financial services, including 16 years at AmeriNat, and currently oversees the single-family servicing activities. Previously, Debbie worked with Financial Partners Credit Union. Debbie holds an associate degree from Orange Coast College. Debbie will oversee the servicing activities related to this contract. Andy Olinskiserves as Sr. Manager, Default Services. Andy is a seasoned financial services leader with over 20 years of experience in default servicing. He has a deep functional knowledge of loss mitigation, foreclosure, and bankruptcy as it pertains to the servicing of FNMA, FHLMC, FHA, USDA, VA, FHLB, and conventional loans. Prior to AmeriNat, Andy was the Loss Mitigation Manager for Dovenmuehle Mortgage, Inc. Andy holds a bachelor’s degree in political science from DePaul University.Danielle Wangsnessserves as Sr. Manager, Operations. Danielle has over 18 years of experience in the financial industry. Prior to AmeriNat, Danielle was the Assistant Vice President/Retail Banking Officer at Eastwood Bank. Danielle holds a bachelor’s degrees in communications and German from the College of Saint Benedict/St. John’s University. Danielle oversees the health of the day-to-day operations, which spans customer service, payment processing, taxes and insurance, cashiering, and special loans. LaShonta Brooksserves as Customer Service Manager. LaShonta has over 18 years’ experience in customer service. LaShonta joined AmeriNat in 2023. Prior to AmeriNat, she served as a Call Center Manager. LaShonta holds an associate’s degree from Victor Valley College. Christina Arteagaserves as Loss Mitigation Manager. Christina has over 10 years’ experience in collections. Christina joined AmeriNat in 2022. Christina is currently attending the University of Phoenix to obtain her bachelor’s degree in business management. Lucia Jacksonserves as Collections Manager. Lucia has over 20 years of loan servicing and collections experience. Lucia joined AmeriNat in January 2022. Prior to AmeriNat, Lucia was the Collections Manager for TCF Bank-Gateway One Lending & Finance. Frank Perezserves as Tax and Insurance Manager. Frank has over 20 years of loan servicing experience. Frank joined AmeriNat in 2024. Prior to AmeriNat, Frank was the manager of loan servicing for AmWest Funding Corporation. Frank has a Network Technology Certificate from the United Education Institute. 25 Cynthia Mendezserves as Cashiering Manager. Cynthia has over 20 years of accounting experience, including 10 years at AmeriNat. Cynthia has been with AmeriNat since 2012. Prior to AmeriNat, Cynthia was an Accountant II for Citi Residential Lending. Estella Villalobosserves as Payoff Manager. Estella has been with AmeriNat since 1998. She has extensive experience in loan administration and customer service. Jason Rembertserves as Quality Control Manager. Jason has over 25 years of experience in customer service and 15 years in the financial industry. Prior to AmeriNat, Jason was an Enterprise Estate Unit Team Member at Bank of America. Jason holds a bachelor’s degree in business management from California State University, Fullerton. Jason will maintain quality control over various activities related to this contract. Micki Abelserves as VP of Business Development. Micki has over 20 years’ experience working in salesfor AmeriNat. Prior to AmeriNat, Micki held various positions in banking and insurance. Micki holds abachelor's degree in finance from Ball State University.2. Related ExperienceAmeriNat has unparalleled experience in the affordable housing industry. AmeriNat has 50 years of experience servicing loans. Working with approximately 300 clients nationwide, AmeriNat services over 50,000 loans with a principal balance of approximately $11 billion, the majority of which were generated by cities like the City of Visalia, to promote affordable housing and economic development. For all 50 years, municipal clients have been a significant part of AmeriNat’s portfolio management activities.AmeriNat has also underwritten multiple thousands of single-family affordable housing loans and has over 300 actively reporting multifamily affordable housing developments ranging in size from $500,000 to $20,000,000. AmeriNat was instrumental in processing and underwriting loans under the Hardest Hit Fund program and has worked with multiple state and local agencies processing and underwriting Homeowner Assistance Fund and Emergency Rental Assistance Programs. AmeriNat has decisioned over 115,000 files under the HAF programs, approving over $1 billion disbursed to homeowners.In addition, AmeriNat monitors over 30,000 units for affordability and maintenance that are restricted under affordable housing programs including LIHTC and HOME. AmeriNat has also provided state and federal prevailing wage (Davis Bacon) compliance monitoring for over 350 developments throughout the nation.
AMERINAT SERVICING EXPERIENCE AT A GLANCE50 years of loan servicing experience300 clients nationwide, including over 100municipalitiesServicing over 50,000 loans with a principal balance of approx. $11 billion 26 AmeriNat manages portfolios of single family, multifamily and commercial/economic development loans with widely varying structures. These loans are originated under multiple funding arenas including CDBG, HOME, HHF, ARRA, NSP, HOPE, EECBG, tax-exempt and other developer bond funds and other common federal, state and local sources including redevelopment funds and are insured by FHA, VA, RD, and private insurers. They include first and junior lien loans. AmeriNat is also extensively familiar with the LIHTC program. AmeriNat is an approved servicer for: FHA, VA, Fannie Mae, Freddie Mac, Federal Home Loan Bank, and USDA.AmeriNat’s key strengths and qualifications are evident from its history of operations. The City can rely on AmeriNat for:Industry ExpertiseAmeriNat offers substantial lending and servicing knowledge of varying loan types and portfolios that often require extensive and unique portfolio management requirements not found in conventional lending environments. AmeriNat’s expertise includes residential and commercial rehab loans, “blended loans” with multiple funding sources, deferred loans, due on sales loans, forgivable loans, and equity share provisions of first-time home buyer loans. In addition, AmeriNat has a breadth of experience with government clients that allows it to meet needs beyond traditional loan servicing, such as targeting loans to federally-sponsored assistance programs. Advanced Information Technology CapabilitiesAmeriNat’s information technology tools have been customized for the affordable housing industry. Reporting is extensive and highly flexible, and information accessibility is a key tenet to the platforms. Borrowers have access to their loan data online, and the City can access borrower data and reports online, real-time, 24/7/365. This same information can be downloaded into Excel for further manipulation and analysis. FlexibilityAmeriNat has a proven history and vast resources but isnot a “big-box” firm with rigid requirements. AmeriNat staff provide personal, high-touch service, adhering to uniformly accepted servicing standards and best practices in the industry, but also customizing servicing steps to meet program requirements and goals. Particularly in the area of delinquency management, AmeriNat deploys a range of different tools designed to meet client objectives. AmeriNat works 1-on-1 with clients, as their partners in service delivery.Commitment to Excellence in Client ServiceAmeriNat follows through on itscommitment to service excellence through ongoing communication with its clients. AmeriNat has two support centers –one for clients and one for borrowers – to maintain the “hands on” approach clients appreciate. A dedicated representative from the Investor Services department will be the City’s first point of contact for questions and needs. Theywill connect with other personnel throughout the firm as needed to respond quickly and fully. In addition, City staff has direct contact information for AmeriNat managers, including senior leadership, who are dedicated to a productive and beneficial servicing relationship. 27 Service Overview:AmeriNat offers a comprehensive menu of services that has been customized to meet the special requirements of clients, including: LOAN SERVICING AmeriNat provides comprehensive loan administration across single family, multifamily and commercial asset classes for a wide variety of clients. AmeriNat is licensed in states throughout the nation and Puerto Rico, and is approved by FHA/VA, USDA, Fannie Maeand Freddie Mac. AmeriNat’s “client-centric” culture emphasizes portfolio performance goals, data transparency and an agile work philosophy designed to bring high value to customers.LOSS MITIGATION AmeriNat’s loss mitigation teams are experienced with a broad range of borrowers under multiple types of investor programs. Frequent outreach and encouragement of non-judicial debt resolution serve as the foundation for AmeriNat’s collections activities. The AmeriNat teams also manage loan relationships through bankruptcies, foreclosures, judicial remedies, asset liquidation, REO management, and claim reporting.COMMERCIAL PACE MANAGEMENTAmeriNat offers property tax management services to the Commercial PACE (C-PACE) industry. This service is offered on a stand-alone basis and complementary to C-PACE loan servicing activities. AmeriNat manages assessment enrollment, payment receipt, and investor remittances, provides payoff calculations, works directly with the taxing jurisdictions to reconcile assessments, and provides extensive investor reporting. AmeriNat is also able to direct-bill assessments to the property owner/borrower.DEPOSIT MANAGEMENT SERVICESPowered by our affiliate company, American Deposit Management (ADM), AmeriNat provides nationally recognized, award-winning, deposit management services, with over $6 billion in assets under management. The development of ADM’s proprietary Financial Technology (FinTech) has allowed us to provide our clients access to exclusive rates and unlimited deposit protection through a network of 600+ financial institutions. This offers clients the safety, security, and liquidity needed for all their deposits. Our clients are our number one priority and everything we do is with them in mind.
28 LocationsThe locations in which AmeriNat either performs work or has offices are indicated on the map on the following page. AmeriNat’s staff are also remote work enabled, meaning that in times of local or national emergency situations, work continues in uninterrupted fashion.
Operating PrincipalsAmeriNat’s operations are based upon sound business principles and a dedication to the markets that it serves, consistently applied over 45 years. Key pillars to the company’s operation include:
29 LeadershipAmeriNat’s CEO and the team of officers and staff are skilled and committed to keeping the client’s interest at the center of AmeriNat’s operations. AmeriNat’s Board of Directors sets a tone from the top for leadership and accountability, as well as compliance with laws and regulation. Leadership is further supplemented by a board-appointed audit committee that assists with oversight of integrity of financial reporting as well as compliance with legal and regulatory requirements. AmeriNat’s Board of Directors include:Adrienne Thorson, Chairwoman and CEOAdrienne Thorson serves as Chairwoman and CEO. Adrienne has over 30 years’experience in financial services, including 25 years at AmeriNat. Prior to coming toAmeriNat, Adrienne served as Market President and CFO at Americana National Bank and successor banks and spent 8 years in public accounting at CliftonLarsonAllen LLP as a manager in the audit division overseeing audits of both financial institutions and local government clients. Adrienne holds a BS in Accounting from Mankato StateUniversity and is a Certified Public Accountant.E. Gerald (Jerry) O’Brien, Board MemberJerry O’Brien serves as CEO and CIO for O’Brien-Staley Partners and has over 25 years of experience. Formerly senior partner and head of global loan portfolios for CarVal Investors. 17 years of experience across all aspects of financial businesses for Cargill and CarVal. Early career with Chemical Bank and DG Investment Bank in New York. MBA in analytical finance and marketing from University of Chicago and AB in economics from University of Michigan.Adam Bernier, Board MemberAdam Bernier serves as Managing Director and Chief Operating Officer for O’Brien-Staley Partners and has over 25 years of experience. 21 years of experience for Cargill spanning investment management, internal audit and controllership for both investment business and operating units. Certified Management Accountant & BS in accounting & finance from Minnesota State University - Moorhead.AmeriNat’s leadership is further supplemented by a board-appointed audit committee that assists with oversight of integrity of financial reporting as well as compliance with legal and regulatory requirements. AmeriNat’s audit committee members include:
AmeriNat has an experienced and tenured leadership, management, and governance team, many of whom have worked together for over 25 years.
30 Adam Bernier, ChairAdam Bernier serves as Managing Director and Chief Operating Officer for O’Brien-Staley Partners and has over 25 years of experience. 21 years of experience for Cargill spanning investment management, internal audit and controllership for both investment business and operating units. Certified Management Accountant & BS in accounting & finance from Minnesota State University - Moorhead.Jacqui Dorsey, MemberJacquie is a Shareholder at Hvistendahl, Moersch, Dorsey & Hahn, P.A., law firm in Northfield, Minnesota. She has over 20 years’ legal experience in Minnesota, Beverly Hills, Los Angeles, Seattle and Phoenix, involving corporate management, commercial real estate and insurance defense. Jacqui holds a BS in Business Administration from the University of Southern California and a JD from the William Mitchell College of Law.Adrienne Thorson, MemberAdrienne Thorson serves as Chairwoman and CEO. Adrienne has over 35 years’experience in financial services, including 26 years at AmeriNat. Prior to coming toAmeriNat, Adrienne served as Market President and CFO at Americana National Bank and successor banks and spent 8 years in public accounting at CliftonLarsonAllen LLP as a manager in the audit division overseeing audits of both financial institutions and local government clients. Adrienne holds a BS in Accounting from Mankato StateUniversity and is a Certified Public Accountant.Ethics & IntegrityAmeriNat has built a foundation that emphasizes sustainability, integrity of operations, and successful outcomes for clients as well as employees and shareholders. AmeriNat operates in a fiscally responsible manner across operations and meets or exceeds the financial requirements of regulatory agencies. The company has an extensive system of internal controls designed to support the accuracy and integrity of operations and financial reporting. AmeriNat has always operated within a heavily regulated industry and its infrastructure emphasizes compliance with local, state and federal laws and regulations. AmeriNat holds the appropriate licenses for jurisdictions in which it operates. Employees operate under a Code of Ethics that has been established by the Board of Directors. The policy reinforces the high standards of conduct underlying operations. A Compliance Committee composed of senior line managers maintains a strong and consistent focus on ethical and regulatory compliant operations.AmeriNat also adheres to a rigorous audit program that operates under the jurisdiction of an independent audit committee. Audits conducted include:
31 Annual audited financial statement and report on internal controlsAnnual SSAE 18 audit, SOC 1 and SOC 2Annual HUD auditAnnual FNMA audit procedures and monthly/quarterly loan auditsAnnual to 18-month compliance audits over pertinent federal regulationsAnnual to 18-month SAFE and BSA auditsOutsourced internal audits based on annual risk assessmentIn addition, AmeriNat maintains a broad package of insurance coverage including business and umbrella liability, management liability, workers compensation, cyber, automobile, personal property and other standard coverages along with errors and omission policies satisfying applicable servicing requirements and a standard Mortgage Banker's Blanket Bond.Investor and Borrower ServicesAmeriNat’s Investor Services Department has been separated and elevated in the organization in alignment with AmeriNat’s emphasis on client engagement, responsiveness, and attentiveness. The Investor Services team is available for regular meetings with the City, will review portfolio reports on a routine basis, is familiar with the status of delinquencies and claims and is the City’s first and final stop for questions and needs.Borrowers can reach borrower service staff via email and the toll-free phone numbers published on the AmeriNat website. Continuous access to loan account information is also provided during normal working hours through toll-free customer service telephone lines. Additionally, borrowers have 24-hour electronic access to their loan information via AmeriNat’s website at www.amerinat.com, and are also able to view their loan information via the AmeriNat app.AmeriNat emphasizes tracking inbound call stats, specifically the percentage of calls answered, average speed to answer and abandonment rate. AmeriNat recently deployed an automatic callback feature that allows a caller to choose to be called back rather than wait in the phone queue and borrowers have expressed their appreciation for this added feature. AmeriNat’s bilingual borrower service team is second to none with customer service ratings, as measured by Google, Wallet-hub and other industry sources, consistently exceeding those of its competitors by nearly 200%! AmeriNat’s excellence in customer serviceis evidenced through great reviews as shown below:
32 Technology & InnovationAmeriNat considers this information to be proprietary and confidential information, which shall not be disclosed outside the City and shall not be duplicated, used, or disclosed - in whole or part - for any purpose other than to evaluate this offer/proposal.AmeriNat customizes its technology platforms based on the markets in which it operates and its clients’ needs. The IT department within AmeriNat, which is supplemented through outside third-party vendors for areas requiring a unique technology or expertise, utilizes a “continual improvement” model of operations. Ongoing upgrades and enhancements, which are driven by clients and staff members, align with the company’s commitment to providing superior service for clients. AmeriNat works towards the National Institute of Standards and Technology (NIST) cybersecurity framework. AmeriNat has an information security risk management program in place including risk assessments and audits, a third-party vendor management program, an incident response program and a comprehensive training program for security awareness. AmeriNat also has a tested Business Continuity Plan in place that is designed to recover critical business functions in its locations. This includes the engagement of a third-party vendor to provide turnkey disaster recovery procedures, backup and recovery strategies over critical data, off site storage and processing, data redundancy on a continual operating basis, and robust privacy and IT controls throughout the firm. The disaster recovery plan is tested annually through a formulated disaster scenario. AmeriNat system controls include multifactor authentication, out-of-band communication requirements for external fund transfers, and ongoing network monitoring, alerting and reporting.
33 AmeriNat PortalAmeriNat’s servicing platform is complemented by a proprietary data warehouse and investor loan access system. Custom reports and other requested data are loaded directly on the portal, for secure and convenient access.Homepage with graphic and summary displays of portfolioDrill-down links to detail loan data from homepage with 1-click functionalityComprehensive portfolio reports, including the portfolio trial balance and delinquency reports, all easily downloaded into excel or CSV.Notification when newly populated reports are available Filter and sort ability on report data for quick on-screen customizationDisplay and download customization through column selection, with ability to save custom views for future log-onsFile sharing – Two-way file sharing for secure and convenient access of custom reports and other requested data Investor portalOngoing enhancements to the AmeriNat portal are led by the Investor Services team, supported by the technology team. Future enhancements will include Investor management of the portal’s user access and enhanced API services.
34 Importantly, there are no user, data or access charges for the AmeriNat portal. Our team believes data availability should be imbedded within the loan servicing deliverable and views the AmeriNat portal as the information delivery component of “excellence in loan servicing”.Borrower websiteBorrowers have an access tool via the AmeriNat website providing a modern and mobile-friendly portal. In addition, AmeriNat’s mobile app provides borrowers another convenient tool (and fully integrating with popular consumer finance applications, such as Mint, TurboTax and QuickBooks).
Comparable ProjectsAmeriNat considers its project and client lists confidential and proprietary, as it consists of our entire organization’s business livelihood. In addition to the references listed in Section A above, AmeriNat would be happy to provide a further detailed listing of our clients to the City, under confidential cover, upon request.
35 D. Proposed Fee Structure and SchedulesAmeriNat considers this information to be proprietary and confidential information, which shall not be disclosed outside the City and shall not be duplicated, used, or disclosed - in whole or part - for any purpose other than to evaluate this offer/proposal.AmeriNat’s proposed fee structure is under separate, sealed cover. 36 E. Conflict of InterestAmeriNat does not have any financial, business or other relationships with the City or any member of the City staff that may have an impact on the outcome of the project. AmeriNat does not have any current clients who may have a financial interest in the outcome of the program. 37 F. Required FormsAttached are the following required forms:Attachment A – Loan Portfolio Management Fee Structure (under separate, sealed cover)Non-Collusion AffidavitWorker’s Compensation Insurance CertificateEqual Employment Opportunity Compliance CertificateBidder’s Statement on Previous Contracts Subject to EEOCAmericans with Disabilities Act Compliance CertificateOwnership Disclosure for Contractors and ConsultantsDrug-Free Workplace CertificateIran Contracting ActRFP Addenda, if applicable.