AmeriNational CSA Amendment No. 2

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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. If the Client chooses to establish an escrow/impound account, AmeriNat will also establish a Client Escrow Deficit account. This account is used to 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 Client’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 Client 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 Client 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 Client 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 Client’s promissory note, AmeriNat 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, 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 Client wishes to select loans for the force placement of insurance on an “as requested” basis, it will be the Client’s responsibility to verify the placement has been completed by AmeriNat. This quality control step aids in ensuring that the Client’s instructions were received by AmeriNat, usually via email. The Client 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. Docusign Envelope ID: 2B617463-847A-4D49-A35E-F34CFC91F6B8