Explanation
BACKGROUND
This legislation authorizes the Director of Development to modify the contract with AmeriNational Community Services, LLC for loan servicing to add $40,000 and to extend the contract for another year with the term being July 1, 2026 through June 30, 2027.
AmeriNational services loans the Department of Development provided to small business, homeowners, home builders, and multi-family unit builders funded by the city’s Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and/or the Neighborhood Stabilization Program (NSP) grants.
Competitive bids were solicited for this service through Vendor Services in 2011. The 2011 Mortgage Loan Servicing RFP provided for four, two-year contract periods. One firm responded and was selected (AmeriNational Community Services, LLC).
The original procurement effort and contract, including most renewals, were managed by the Department of Finance and Management. In 2019, the Department of Development took over ownership of the contract as the loans in the portfolio are held by the Department of Development. Since taking over the contract, Development has begun the process of reviewing the loan portfolio. The review of the loan portfolio had been delayed a couple of years because of COVID-19. With the recent ordinance passed by City Council that authorized the Director of Development to establish a loan forgiveness policy, staff will begin forgiving loans and cleaning up the portfolio.
Once cleaned up, an RFP for loan servicing will be issued. Until such time the portfolio is reviewed and advertisement for a new vendor is issued, contract renewals for this service are needed. This is a planned modification while we are dwindling down the portfolio to then proceed with a more accurate depiction of the Departments needs regarding our loan servicing portfolio. The prices in this contract modification were presented by the vendor and accepted by the Department. Not...
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