Specifications include, but are not limited to: 6.1. Loan Services 6.1.1. Contractor shall be responsible for loan and default services on all loans approved and issued by the County through its various programs including, but not limited to, the Community Development Block Grant, HOME Investment Partnerships, CalHome, Neighborhood Stabilization Program (NSP), Mobilehome Occupant Assistance Program (MOAP), Down Payment and Closing Cost Assistance (DCCA), and Home Repair Loan Programs. 6.1.2. Contractor shall collect and receive from the borrower all sums when due from the borrower as specified in the loan documents. Such funds shall be deposited in a special trust or custodial account in a federally or state-chartered bank or savings and loan association. 6.1.3. On a monthly basis, Contractor shall distribute to the County all accumulated payments received during the preceding month from borrowers for repayment of loans. 6.1.4. Contractor shall remit payment by the tenth (10th) day of each month and shall also provide a report as described in Statement of Work Section 7. 6.1.5. Upon receiving a request for demand for payment of any loan services, Contractor shall notify the County of such request. Contractor shall prepare the necessary documentation for payoff and reconveyance. Funds resulting from repayment of the loan shall be delivered to the County. 6.1.5.1. Contractor shall demand of the borrower full performance of all terms, covenants and conditions of the Promissory Note and Deed of Trust, granting no indulgence, waiver or extension of time beyond sixty (60) days without the consent of the County. 6.1.6. Contractor shall transfer all funds received from the borrower from close of escrow and/or completion of any financial transaction back to the County within five (5) business days unless otherwise notified. 6.1.6.1. Contractor shall not cause delay in remitting payment to the County and at no time shall contractor collect interest or other income based on amount collected from borrowers. 6.1.7. In the event that the default continues after the expiration of any applicable period of grace, the Contractor shall promptly notify the County of the default and, within 30 days following expiration of the applicable period of grace, shall declare the entire loan due and payable. 6.1.8. Contractor shall ensure and annually verify that each borrower has appropriate insurance in force for the property in accordance with the loan and must ensure and annually verify that the County is included as a loss payee. 6.1.9. Contractor shall cause the insurance companies to deliver all insurance loss payees, drafts, notices, policies, and other documents directly to the Contractor, rather than to the County. 6.1.10. Contractor shall take all necessary steps regarding borrower's insurance and shall enforce the rights of the County under the borrower's policies and the Promissory Note and Deed of Trust. The Contractor is hereby authorized to act as the County's agent for these purposes. 6.1.11. Contractor shall conduct annual occupancy verifications of all borrowers with DCCA and Home Repair loans and after due diligence has been conducted in verifying borrower occupancy, to no avail, Contractor shall notify County. 6.1.12. Contractor, pursuant to IRS regulations, must meet all required reporting requirements for all loans issued by the County through its various programs. 6.1.13. The Contractor shall issue to the borrower the required tax documents (1098s). 6.1.14. Notwithstanding any other default/foreclosure provisions, Contractor shall provide the borrower an opportunity to respond in writing to reasons why payments cannot be made. If the borrower responds in writing that payments cannot be made, the Contractor shall promptly notify the County within 15 days after receiving written notification. At the discretion of the County, the loan will be reviewed to determine if the loan terms should be modified. 6.1.15. Upon hearing of any overdue payment or other default from a senior lien, Contractor shall promptly notify the County. Contractor shall not take any action without the written authorization from the County.
