HomeMy WebLinkAboutResolution - 2019-R0256 - Amendment 1 With Amerinat - 07/23/2019 Resolution No. 2019-RO256
Item No. 6.18
July 23, 2019
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for
and on behalf of the City of Lubbock, Amendment No. 1 to Contract No. 12774, dated September
22, 2016 for loan management services, by and between the City of Lubbock, and AmeriNat, of
Albert Lea, Minnesota. and related documents. Said Amendment is attached hereto and
incorporated in this resolution as if fully set forth herein and shall be included in the minutes of
the City Council.
Passed by the City Council on July 23, 2019
DANIE:I. M. POPE, MAYOR
ATTEST:
Rebe ca Garza, City Seer ary
APPROVED AS TO ONTENE':
Bill Howerto D M y City Man er
APPROVED AS TO FOR
K lli Leisure, Assistant City Attorney
ccdocs/RES.Amend 91 A-rent- 12774 AmeriNat
06.14.19
Resolution No. 2019-RO256
FIRST AMENDMENT TO SERVICE AGREEMENT BY AND BETWEEN
THE CITY OF LUBBOCK AND
AMERINATIONAL COMMUNITY SERVICES,LLC D/B/A AMERINAT
THIS AMENDMENT is entered into as of the 23rd day of .Tilly , 2019 by and
between the City of Lubbock,a Texas municipal corporation,(hereinafter referred to as the"City")
and AmerNational Community Services, LLC d/b/a AmeriNat, a limited liability company
organized and existing under the laws of the State of Minnesota (hereinafter referred to as the
"Contractor").
RECITAL
PURPOSE: This document constitutes the first amendment to the Service Agreement
between the City and the Contractor dated September 22,2016.
A. All provisions, terms, conditions, stipulations and requirement of the Agreement shall
continue in full force and effect,except as specifically amendment herein.
B. Exhibit A Scope of Work is hereby amended to reflect the additional services listed in
Attachment I of this amendment.
C. Exhibit B Fee Schedule is amended to reflect the additional services listed in Attachment
II of this amendment.
TERMS AND CONDITIONS
All provisions of the Agreement dated September 22, 2016 shall remain in full force and effect,
with the addition of items B and C described above.
IN WITNESS WHEREOF, the City and the Contractor have executed this Amendment to the
Agreement dated September 22,2016 to be executed as of the date first hereinabove set forth.
City of Lubbock: MeThorson,
ommunity Services,LLC
Daniel M.Pope,Mayor Chairwoman and CEO
ATTEST:
Rebe ca Garza, City Secr ary
APPROVED AS TO CONTENT:
Karen Murfee, Community Development Director
IVED TO FORM:
elli Leisure,Assistant City Attorney
ATTACHMENT I
SCOPE OF SERVICES
Loan Processing and Underwriting
AmeriNat offers experienced loan processing and underwriting services to meet the complex needs
of government agencies. We work with our clients to streamline all phases of loan production,
from application through processing, underwriting, closing, to loan servicing for increased speed
and efficiency.
Application Submission (Rehabilitation Programs)
Upon receipt of a complete loan application package, all documents and supporting materials
should be sent to AmeriNat for processing. It is essential for an efficient underwriting process
that the file is complete before we start our review. 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.
Preliminary Risk Analysis
Upon receipt of a completed loan application package, AmeriNat will review the application
for accuracy and thoroughness. A Preliminary Risk Analysis (PRA) will 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 even avoid sending out
inspection personnel to prepare a work write-up and cost estimate 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.
Underwriting Anal
Upon receipt of an approval to proceed, AmeriNat 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 history
/ Financial interest in the property(Loan to Value)
/ Status of title to secure lien position
Upon receipt of verifications and reports, a Final Loan Recommendation (FLR) will be
prepared and sent to the City for approval and funding.
Application Submission (First Time Homebuyer Programs):
Applicants interested in applying for down payment assistance loans, through government
agencies apply for and are pre-screened by said agencies. Applicants then work with their
primary lender to compile a complete loan application package, consisting of all required
program documents. Applicants first lender submits the application package to AmeriNat for
processing and underwriting. It is essential for an efficient underwriting process that the file is
complete before we start our review.
Underwriting Analysis
Upon receipt of a complete underwriting application package, AmeriNat will perform a
thorough underwriting analysis, addressing the following items:
► Program income determination
► Current and past credit history
► Financial interest in the property(Loan to Value)
/ Status of title to secure lien position
A Final Loan Recommendation (FLR) will be prepared and sent to the agency for approval
and funding.
Loan Document Preparation
Once a loan has been approved,the City shall forward to AmeriNat a Request for Loan Documents
containing required information to complete the preparation of loan documents. In accordance
with the loan document request, AmeriNat shall prepare and forward the following documents
within five (5)business days for the City's execution:
Deed of Trust
/ Promissory Note
/ Truth in Lending Disclosure Statement
► Request for Notice of Default and Sale
/ Notice of Right to Cancel
/ Control Instructions
/ Declaration of Covenants, Conditions, and Restrictions(CC&Rs)
/ Other documents as agreed to with the City
Once the documents are executed by the borrower, the Deed of Trust and Request for Notice are
returned to AmeriNat for recordation with the County Recorder. Following the recording of the
Deed of Trust, AmeriNat shall confirm that the City's lien position is secure by updating title
(when approved by the City).
ADDITIONAL SERVICES BY REQUEST:
Property Conditions Profile and Affidavit of Owner
1. Property Conditions Profile:
a. AmeriNat engages an outside vendor to perform a site visit to each owner's property to
determine the outer condition of the dwelling and the condition of any detached structures
and grounds. Two photos will be taken to document the condition of the property. NOTE:
AmeriNat will not, at any time, enter upon the owner's private property.
b. Property profiles shall 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 with any frequency desired, 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 each borrower. The
Affidavit requires the owner to affirm continued compliance with all 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 all sums due to superior lien holders
- Proper maintenance of the property
Non-subordination
a. If no response is received within two weeks,AmeriNat will send a second letter,
again requesting owner to sign and return affidavit.
b. AmeriNat will compile responses and will forward original affidavits to the City.
ATTACHMENT TTI
FEESCHEDULE
Loan Processing and Underwriting (First Time Homebuyer Programs):
$445.00 per file
Loan Processing and UnderwritinE (Rehabilitation Programs):
1. Ordering credit,title or appraisal
Due 30 days after receipt of application, plus outside costs*. $50.00
2. Loan Processing through the completion of the Preliminary Risk
Analysis (PRA) to the City, plus outside costs
Due within 60 days of submission of PRA $190.00
3. Loan Processing, underwriting and production of Final Loan
Recommendation(FLR),plus all remaining direct loan outside costs*.
Due 60 days from FLR or fund control opening. $205.00
*Outside costs as used herein include,but are not limited to,title,credit,and appraisal. These costs
are passed through from outside vendors and are subject to marketplace increases. Such costs shall
be reasonable and competitive with other similar services provided in the general vicinity of the
project.
Loan Cancellation Fee: Within 60 days of a loan being considered cancelled, in addition to all
outside costs,the fee due will be the sum of all fees for tasks(1-3 above)completed,plus one-half
of the fee for the task in process at the time of cancellation.
Loan Documentation Preparation Services:
1. A fee of$225.00 plus pass through costs, if any for the preparation of all loan documents.
2. For each project for which credit, title, or appraisals have been supplied by AmeriNat, but
which is thereafter canceled without performance of loan document preparation: a
cancellation fee of$65.00 plus all outside costs for the aforementioned services. A project
will be considered cancelled if a Loan Document Request is not received within sixty(60)
days of ordering any of the aforementioned services.
3. A fee of$22.00 will be charged for each document re-drafted at the request of the City due
to actions by the City.
Per-Event Fees:
Property Conditions Profile: $50.00 per occurrence
Affidavit of Owner: $13.00 per loan (entire portfolio done at one-time) with a$500
minimum fee