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Consulting Services Agreement between City of San Leandro and Last revised 08/18/2020 AmeriNat for Loan Servicing Exhibit A – Page 2 of 11 5. Escrow/Impound Account: If the City chooses, AmeriNat will establish an escrow/impound account for any borrower for the payment of taxes and insurance. Many borrowers find it easier to pay into an escrow account on a monthly basis rather than making large semi-annual or annual tax and insurance payments. 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). Tax service is necessary to ensure the timely and accurate payment of property taxes. If the City chooses to establish an escrow/impound account for any borrower, AmeriNat will also establish a Client Escrow Deficit account. This account is used to track and reconcile 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 and 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. At portfolio transfer AmeriNat will require a cash deposit of 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. 6. 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 Insurance: AmeriNat will order lender-placed insurance at the request of the City. 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. 1. Coverage is instantly bound upon receipt of request with an effective date up to 90 days prior to receipt of our 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, said balance will be accounted for in that month’s reconciliation of the Client Escrow Deficit Account. If the aggregate portfolio remittance for said month DocuSign Envelope ID: 16206018-0951-4CDD-A2A9-4C530DE3DDB4