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HomeMy WebLinkAboutRESPONSE - RFP - 8319 CAPITALIZATION & FINANCIAL SERVICES FOR HOME EFFICIENCY LOAN PROGRAMFort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 1 June 10, 2016 City of Fort Collins Purchasing Financial Services Purchasing Division purchasing@fcgov.com RE: RFP #8319 – Capitalization & Financial Services for Home Efficiency Loan Program We appreciate the opportunity to respond to the city of Fort Collins RFP for the Home Efficiency Loan Program (HELP). As an active participant in the economic engine of both the City of Fort Collins and Larimer County, Elevations Credit Union is committed to the long-term prosperity of our business partners and the communities we serve. In January of 1953, Elevations Credit Union opened for business in the basement of Macky Auditorium on the University of Colorado campus with 12 members and Less than $100.00 in assets. Services offered were savings accounts and personal loans. Today, Elevations Credit Union has in excess of 115,000 members and an asset base of over $1,600,000,000. Our branches, corporate offices, and our people are entrenched along the front range of Colorado. We have remained a constant, stable partner throughout both the boom and bust times. When times were tough, we remained a steady influence that our customers counted on - never wavering from our corporate goals and mission. Our steady growth and our relentless commitment to providing the highest quality product and services have made us what we are today. Our environmental and social values are part of the fiber of Elevations Credit Union. As important as it is to manage member assets in a prudent financial manner, it is equally important to be good stewards of the environment and the communities that support the organization. By taking an active role in our community, we have set an example for local businesses, individuals and even the governmental offices and agencies we work with on a regular basis. Served by an All-Volunteer Board of Directors, Elevations always seeks to fulfill its mission of providing solutions for a better life. In the pages that follow, you will learn more about our rich history and our commitment to building energy efficiency lending programs that will sustain the healthy growth of our cities and our economy. Respectfully submitted, Ray Lindley Senior Vice President of Lending Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 2 Table of Contents Qualifications Sought ........................................................................................................................... 4 Ability to Meet Requirements ...................................................................................................................... 4 Elevations Credit Union History ................................................................................................................................... 5 Elevations Energy Loans (Energy Smart and Denver Energy Challenge) ............................................. 5 Commitment to Sustainability ..................................................................................................................... 6 Elevations Credit Union Green Policy Statement: ...................................................................................... 6 Green Credentials ....................................................................................................................................................... 6 Energy Reduction Efforts ......................................................................................................................................... 7 The Green Connection .............................................................................................................................................. 7 Elevations Credit Union Value Tapestry ................................................................................................... 7 Core Values:................................................................................................................................................................... 7 Elevations Credit Union Foundation................................................................................................................... 7 Vision: ................................................................................................................................................................................ 8 BHAG: (Big Hairy Audacious Goal) .................................................................................................................... 8 Member Value Proposition: .................................................................................................................................... 8 Employee Volunteer Time Off ............................................................................................................................... 8 Educational Programs ................................................................................................................................................. 9 Elevations Lending ........................................................................................................................................... 9 Online and Mobile Banking ..................................................................................................................................... 11 Website and Online Banking Security ............................................................................................................. 11 Elevations Management Team .................................................................................................................. 12 Jay Champion — Chief Operating Officer ..................................................................................................... 12 Ray Lindley — Senior Vice President of Lending ..................................................................................... 12 Our Understanding of the Program ......................................................................................................... 13 Home Efficiency Loan Program ............................................................................................................................. 13 Home Energy Affordability Loan (HEAL) Program ...................................................................................... 13 Scalable Goals for Fort Collins Energy Policy and Climate Action Plan ...................................... 13 Gathering and Raising Private Capital ................................................................................................... 13 Fort Collins Energy Loan Product Overview (Proposed Financial Solution) ........................... 14 Loan Loss Reserve (LLR) ............................................................................................................................. 14 Loan Loss Reserve (Utilizing the Green Colorado Credit Reserve).............................................. 14 Administration of Loan Loss Reserve ................................................................................................................. 14 Loan Characteristics ................................................................................................................................................ 15 Product Description .................................................................................................................................................. 15 Features/Benefits ....................................................................................................................................................... 16 Consumer Loan Underwriting, Product Rates and Terms .............................................................. 16 Processes and Procedures .......................................................................................................................... 18 Customer Intake and Origination ....................................................................................................................... 18 Application Process .................................................................................................................................................. 18 The Applicant Experience ..................................................................................................................................... 21 Customer Service Proficiency ............................................................................................................................. 21 Contact Center Performance ............................................................................................................................... 21 Loan Servicing and Collections ................................................................................................................. 22 Loss Mitigation and Collections ................................................................................................................ 23 Compliance and Financial Regulations .............................................................................................................. 23 Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 3 Collections ...................................................................................................................................................................... 23 Collections Process ..................................................................................................................................................... 23 Quality Control ................................................................................................................................................ 24 Reporting .......................................................................................................................................................... 24 Terms and Fees for Program Administration ..................................................................................... 25 Elevations Credit Union – The Right Partner ....................................................................................... 25 Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 4 Qualifications Sought Fort Collins is requesting a partner financial institution to provide capital and financial services in support of the Home Efficiency Loan Program (HELP) Qualifications and Objectives Elevations Credit Union Meets Qualification Provide capital and financial services in support of the Home Efficiency Loan Program (HELP) YES Attractive Program: The loan program must be attractive to customers in terms of the characteristics of the loan, such as loan limits, interest rates, terms, and fees. YES Scalable Program: The program must be scalable in support of the ambitious goals described in Climate Action Plan section. It is anticipated that citizens of Fort Collins will upgrade thousands of homes in the coming years. YES Simple and expeditious: the implementation and administration of the program must be as simple as possible for all parties, including customers, Utilities and the financial partner. YES Ability to Meet Requirements Elevations Credit Union has a long history of working closely with government agencies to develop programs, products and services that meet their specific needs. We look forward to working closely with Fort Collins as we work to create a compelling program for all stakeholders and parties involved. We agree to meet all of the requirements stated within the RFP if selected as the financial institution under the contract. Our following response discusses how Elevations Credit Union proposes to work with the Municipalities in order to achieve the goals and objectives for this financing mechanism. Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 5 Elevations Credit Union History Elevations Credit Union was founded in 1953 on the steps of Macky Auditorium at the University of Colorado Boulder. We’ve been an integral part of the communities along the Front Range for over 60 years now including the city of Fort Collins. We are extremely proud to be a part of Fort Collins and look forward to the future and growth within the community. We are not a national financial “chain,” but are truly a local institution that takes pride in the products and services we offer to help our members and business partners (our neighbors) flourish. Over the years we have grown to over $1.6 billion in assets serving over 115,000 members. As businesses have moved in and out of our area, we have remained steadfast in our commitment to keep our roots in the community and do our part in helping to grow the Colorado economy. We provide a wide range of financial products and services. This includes everything from basic, everyday checking and savings accounts; to a wide array of lending products, including car loans, student loans, mortgages, home equity lines of credit (“HELOCs”), business loans, commercial loans, credit cards, and business and consumer Energy loans provided through Energy Smart and Denver Energy Challenge. We also have a team of financial advisors who help our members with investments, retirement planning, income strategies, wealth transfer planning, and insurance. Our goal is to develop long-term relationships with our members, so we offer a wide variety of products that will meet their needs as they move through the various stages of their lives. Elevations Credit Union has eleven branch locations, one located in Fort Collins with expansion in the near future along with a nationwide network of CO-OP ATMs and shared branches. Our online/mobile banking and free bill pay allows members to stay close to their money no matter where they live or where they're traveling. We have been voted "Best Financial Institution”, Best Credit Union”, "Best Bank", “Best Customer Service”, "Best Mortgage Company" and one of “The Best Companies to Work For in Colorado” by the readers of the local newspapers and our peers. The Elevations staff is comprised of over 400 employees who take great pride in the company they work for and in our commitment to the communities we serve. Elevations Energy Loans (Energy Smart and Denver Energy Challenge) Elevations Credit union has been proudly providing Energy Loans to members and their businesses in Boulder County and the City and County of Denver since 2012. We have built strong partnerships with Boulder, Denver, and the Contractors that participate in the program. We have worked extremely hard to streamline all processes and procedures of our Energy Loan product. In addition, we are always looking for ways to improve. Elevations Energy Unsecured Loan Program and Information. (Energy Smart & Denver Energy Challenge)  Elevations Energy Loan Program with the City of Boulder and City and County of Denver was established in 2012.  As of June 2016 the total outstanding Portfolio is $1,954,512.  The average contracted term is 58 months  The average loan amount for business loans $13,366  The average loan amount for residential loans $6,743  Average contracted interest rate 3.62%  Weighted average rate by balances of the portfolio 3.99% Fort Collins Market strategic plan for Elevations by 2018 Elevations Credit Union looks to enjoy a long term relationship with the entire community of Fort Collins with planned growth in the near future. In addition, to our current branch off Harmony road, Elevations will be adding two more branch locations within the city of Fort Collins by 2018. We will have fully Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 6 deployed branch operations to include full mortgage operations, business banking, commercial banking and consumer banking. Our market share in Larimer County will position us as a relevant competitor in the market. This expansion will be facilitated through efficiently placed and expertly-operated branches designed to meet the needs of each local community. Each of our branches will be complemented by high-caliber technological solutions, supported by exceptionally technologically savvy employees who delight in providing solutions to our members in the branch office, telephonically, and via the Internet. Commitment to Sustainability Our environmental and social values are part of the fiber of Elevations Credit Union. As important as it is to manage member assets in a prudent financial manner, it is equally important to be good stewards of the environment and the communities that support the organization. We continually look for ways to improve our green credentials, and to build relationships with other like-minded companies and organizations. In 2008, the Elevations Board of Directors voted to adopt our commitment to sustainability and continue to do so to this day in the following policy statement: Elevations Credit Union Green Policy Statement: Adopted by the Board of Directors on December 23, 2008 Elevations Credit Union is committed to minimizing the impact of our activities on the environment and promoting the understanding of sustainability throughout your Credit Union. We will seek ways to reduce our environmental impact by reducing waste and utilities usage through implementing energy efficiency and enhanced recycling programs, green cleaning programs and utilizing recycled materials whenever possible. Our green policy is consistent with our commitment to responsible corporate citizenship and best management practices. We endeavor to educate and encourage our staff and membership to adopt environmentally responsible practices. In partnership with Eco-Cycle, Xcel Energy, Boulder Green Buildings Guild, and The Climate Smart Program, we will continually seek ways to implement best practices as outlined by the U.S. Green Building Council and all relevant environmental legislation. Green Credentials Elevations Credit Union is extremely proud of our green credentials. We live in this community, so we have a vested interest in our environmental impact. We have made a commitment to use environmentally friendly and ecologically sound materials in our facilities, and in the items we use in our daily business. All of our offices use sustainable business best practices including:  Our recycling programs include paper, aluminum, cardboard to minimize waste and recover as many materials as possible through reuse or recycling  Any facility upgrades or builds utilize materials that are durable, contain recycled content, and are locally manufactured, whenever possible, to reduce our environmental impact. Any re-design efforts make use of energy efficient products to create both an efficient and comfortable environment. We also take advantage of natural elements and technologies to conserve resources, increase office productivity, and reduce long-term operational costs and pollutants  Our janitorial services include LEED certified green cleaning best practices including the use of Green Seal certified cleaning products Additionally, Elevations Credit Union has been the proud recipient of two prestigious sustainability awards including:  The Community Sustainability Leader of the Year in 2010 from the Boulder Chamber of Commerce  The City of Boulder’s Climate Smart Program 10 for Change Award for carbon footprint reduction also in 2010. Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 7 Energy Reduction Efforts As an active member and participant with Xcel Energy and the City of Boulder in the Climate Smart Program, we have reduced our carbon footprint by 19 percent, and reduced energy consumption by 19 percent. We also implemented industry standard best practices and worked with local energy management specialists, Bolder Energy Engineers, to develop a variety of green programs that helped us achieve these impressive reductions. We have developed strong relationships in the community with Timberline Mechanical, Eco-Cycle, Xcel Energy, Boulder Green Building Guild, Climate Smart, and Boulder’s 10 for Change initiative, which has spurred our commitment to reduce energy usage. We began our reduction efforts in 2004 using an innovative and holistic approach working with Members of Bolder Energy Engineers. This partnership has become more than just a client/vendor relationship. Together, we have achieved many of our environmental goals including:  Implementation of carbon footprint reduction measurements and benchmarking processes in order to track, analyze, and improve reduction efforts  Implementation of industry standard energy conservation “best practices”  Installation of high efficiency HVAC units in our Wilderness Peaks Support Center and Boulder Baseline locations  Implementation of water usage reduction “best practice” for restrooms and irrigation systems  Installation of motion sensors and timers for lighting systems  Upgrading of automated lighting and HVAC control systems  Current expansion of recycling, green cleaning and green pest control programs  Active participant in Boulder’s “Smart Grid” program utilizing “Smart Meter” technology. Some of our latest efforts include replacing the HVAC control system at our Diagonal branch which included several new energy-saving control strategies, retro fitting our data center cooling with variable speed fan control and continuing to replace HVAC equipment with units that exceed code-required efficiency. The Green Connection Our Facilities Management Department spearheaded our efforts to create measurable significant energy efficiency in all of our facilities as well as in our commitment to assist in making the communities where we live and work, more ecologically sound. Elevations Credit Union Value Tapestry Core Purpose: We provide solutions for a better life. Core Values: For Elevations, our commitment to sustainability isn’t just about cost savings. Instead, it is a practical application of our core values:  Integrity - we build trust through honest and ethical actions  Respect - we treat others with dignity and value individual differences  Passion - we are enthusiastic in everything we do  Creativity - we foster an environment of innovation and learning  Excellence – we always seek to improve and strive to exceed expectations The third pillar of our triple bottom line, social impact, is another essential element that demonstrates our success. Each year, we pledge to support the community with an amount equal to or greater than two percent of net income in grants, sponsorships, fund raising, and in-kind services. We actively support community organizations that focus on three key areas: education for at-risk populations, affordable housing, and the environment. Elevations Credit Union Foundation Elevations Foundation promotes and manages Elevations Credit Union's charitable activities and Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 8 participates in scholarships and other programs that reflect the interests of our membership and the communities we serve. Elevations Foundation was born in 2010. The Foundation is charged with carrying out the philanthropic endeavors of Elevations Credit Union, a member-owned, not-for-profit financial cooperative that has been supporting the community for over 60 years. The Foundation is an independent 501(c) 3 non-profit organization and has provided over $1 million in community resources since its inception. $1 Million: Community resources Elevations Foundation has provided since 2010 $582,500: Emergency assistance for flood victims, wildfire victims, and community organizations $225,000: Community grants provided to local non-profit organizations $165,000: Scholarship funds awarded to local students for higher education Vision: Amazing experiences. Raving fans. BHAG: (Big Hairy Audacious Goal) Audacious Excellence “We will win the Baldridge award again” Elevations Credit Union is extremely proud to be named a recipient of the 2014 Malcolm Baldrige National Quality Award, the nation’s highest Presidential honor for quality and organizational performance excellence. The Malcolm Baldrige Award is presented annually to U.S. organizations by the President of the United States as America’s highest honor for innovation and performance excellence. Organizations must demonstrate their achievements and improvements in seven key areas: leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; workforce focus; process management; and results. Member Value Proposition: We build long-term relationships and deep mutual trust with our members by acting in the best interest of our membership and our community. Employee Volunteer Time Off Pay it forward. We love where we live and work! It is our responsibility as a good corporate citizen to help enrich our surrounding communities of residence and work. As part of our commitment, we provide paid Volunteer Time Off (VTO) to eligible employees to support programs that positively impact the quality of life within our communities. Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 9 Educational Programs Given our roots with the University of Colorado, we have a well-established history of positioning Elevations Credit Union as the premier provider of financial education within the communities we serve. We provide ongoing financial education to many diverse groups. Our award winning education initiative, RealityCheck, is at the heart of our culture and is one of the best ways to support our core purpose. Not only have we proven to be a valued resource for unbiased consumer information and financial literacy, we have set Elevations Credit Union apart as having a truly unique business model driven through consumer education. For our business partners and the communities we serve, education has always been our marquee attribute. Simply put, we think an educated consumer is a better consumer. In a time when the financial services industry is over leveraged and under pressure to perform, we see an opportunity to make a positive impact in the marketplace. As a member-owned financial cooperative, it is in our best interest to serve an educated constituency. If our member-owners thrive, in turn Elevations Credit Union will thrive. This has proven to be a valuable business model and sets us apart from the pack. Our RealityCheck Education Initiatives include:  RealityCheck Seminar Series  RealityCheck Website Content  RealityCheck Consumer Guides  Foolproof Financial Literacy for Young People  RealityCheck-Up Elevations Lending Our real estate/mortgage lending practice is recognized as an industry leader in our market and is proudly the largest Mortgage Lender of any Credit Union in CO. Elevations Credit Union provided its members with over $1 billion in mortgage loans in 2015. In addition, Elevations met our members other consumer loan needs in the amount of $189 million comprised of 12,727 total loans. We offer a wide variety of lending products including personal loans such as Visa credit cards, home and business energy loans, auto, truck, motorcycle, RV and ATV loans. We also offer home equity loans, mortgages (fixed, ARM, and FHA), and student loans. We also offer business loans including construction loans, lot loans and commercial loans. Applications for these loans are available through our website and customer service is available by phone, email or in person. If selected as the financial institution for this program, we will commit to servicing loan types under this program for the duration of their tenor. We will also commit to maintain ongoing communication and collaboration with the City of Fort Collins. Mortgage Loans At Elevations Credit Union, we do not use a cookie-cutter process. We have the flexibility to work with a unique property, employment status, or family situation. We provide our members with more power to drive decisions involving loan types and fees. Members can get started online even if they don’t have all of their financial information on hand. They can start by filling in the information they know. After saving the application, we will contact the member within two business days to discuss next steps. We offer loan options to fit our member’s specific needs. We offer FHA loans, allow members to view all mortgage rates on line, and offer low closing costs. We also offer several mortgage and home-buying resources. We offer fixed or adjustable rates, conforming or Jumbo amounts, terms up to 30 years, combination loans, and a no closing cost option and best of all, all servicing and underwriting is provided locally. Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 10 FlexLine Plus Line of Credit With our FlexLine Plus Line of credit, members have access to money, when they need it. Members can use a Home Equity Visa Card, transfer money to a checking account, or request checks. All at a low variable rate, based on the current variable rate when the funds are accessed. This assures a competitive rate in a fluctuating economy. We also offer an optional fixed rate allowing the member to lock the rate for a portion of the loan balance. For example, lock into a fixed rate on a tuition payment or combined remodeling expenses. Payments can vary each month with minimum payments as low as interest only. Auto Loans Elevations Credit Union offers auto loans starting as low as 2.99 percent APR – which makes our auto loans more competitive than most other financial institutions. We will finance cars, trucks, RVs, travel trailers, motorcycles (special Harley rate), ATVs, boats, jet skis, snowmobiles and other untitled vehicles. Other auto loan benefits include:  Financing for up to 120 percent loan-to-value for qualifying members  Refinancing of auto loans from other financial institutions  Optional loan protection, guaranteed asset protection (GAP), and mechanical repair coverage  Online “Elevations Auto Buying Tool” a Complete Online shopping experience at local dealerships.  Provide a free RealityCheck seminar to the community on “The 10 tips for buying a car”.  Credit qualification, age 18 or older, and membership is required Student Loans Elevations Credit Union, through the nationwide The Smart Option Student Loan® by Sallie Mae®, offers a better way to pay for college with competitive rates, zero origination fees, more flexible repayment options, and quick and easy online application process. Personal and Secured Loans Our personal or deposit-secured loans can be used to finance vacations, recreational equipment (snowmobiles, ATVs, etc.), car repair, debt consolidation, unexpected expenses and more.  Personal Loans: A personal loan is a loan that is not secured by collateral. It is sometimes referred to as a "signature" loan. In contrast to a credit card, a personal loan offers a fixed term with set monthly payments.  Deposit-Secured Loans: A deposit-secured loan will allow you to receive a lower rate than non- secured personal loans because your savings or certificate account guarantees the loan. Our personal and deposit-secured loans provide fixed rates — locking in a low rate for the loan term, fixed payments — making budgeting easy, no pre-payment penalty, with optional loan protection. A snapshot of our loan portfolios by type as of April 31, 2016 follows: Type of Loan Amount of Loans Outstanding (000s omitted) Real Estate – 1st Mortgages $576,432 Real Estate – 2nd Mortgages $314,686 Auto Loans $141,262 Credit Cards $74,948 Business/Commercial Loans $54,782 Student and other Consumer Loans $24,031 TOTAL LOANS $1,186,141 Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 11 Fiscally Responsible We offer personal financial management tools to provide members with the ability to see their whole financial picture (all of their accounts) and shows how their dollars are being spent. We encourage our members to understand and use tools like this that allow budgeting of their financial resources on both spending and savings dollars, and also allows for goal setting—saving for a specific purchase or goal. These tools provide charts and graphs that are both useful and interactive to the member. We also offer over 90 seminar topics, as outlined in this proposal’s introduction, that are provided to members and potential members in public forums to better understand the various financial tools and needs in their lives. The better educated our membership; the more we can help them achieve their personal and financial goals. Online and Mobile Banking Elevations Credit Union offers free Online and Mobile Banking allowing members to view account transactions, pending transactions, and balances 24/7. Our Online banking has an uptime average exceeding 99 percent. A large percentage of our members utilize the Internet and or mobile device to perform their financial transactions. Studies show that people who bank online view their transactions an average of four times more often than people who bank with paper. Elevations Online Banking features the latest in online technology and security. Features include:  Email Alerts: Receive an email when the account balance crosses a threshold or when a secure message is waiting to be viewed  Account Nicknames: Assign a nickname to existing accounts to make them easier to recognize within Online Banking  Information Management: Change contact information. Manage passwords and security questions  Download: Easily download account information into money management software programs such as Quicken  Account Questions: Correspond with an Elevations Member Service Representative with Secure Messaging  Additional Online Services: Access services such as eDocuments and Bill Pay Website and Online Banking Security We have taken many precautions to ensure your personal banking information is secure when banking online including:  Encryption: Our website homepage is protected using Verisign security. This security measure is in place so that you can be sure that our website is authentic and protected. Online Banking uses 128-bit secure socket layer (SSL) encryption as well as many additional security procedures.  Usernames and Passwords: Online Banking requires strong usernames and passwords to protect member accounts. We recommend selecting passwords that would be difficult for others to guess.  Multifactor Authentication: Online Banking uses an extra layer of security that asks identity questions when logging in using an unfamiliar computer.  Secure Email: All email sent to Elevations from the website or from within Online Banking is sent securely to protect sensitive personal information. If you send us a question from within Online Banking, our Member Service Representatives will respond securely within the "Messaging" section of Online Banking. As a standard, our Member Service Representatives do not send personal information via unsecure email. Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 12 Elevations Management Team The depth of experience of our entire leadership team is second to none. While the program is supported by our entire management team, the members of our management team with primary responsibility for overseeing this program include the following individuals: Jay Champion — Chief Operating Officer As chief operating officer, Jay directs all aspects of the credit union’s commercial, consumer, and mortgage lending programs and oversees its retail delivery channels—including all branches, the Elevations contact center and remote delivery. Jay is also responsible for governmental affairs, ensuring Elevations maintains excellent relationships with regulators and lawmakers, and marketing, which builds awareness of the Elevations brand and manages communication with current and prospective members. Jay was the executive vice president and chief lending officer with Texans Credit Union before joining Elevations in 2011 and previously served at three other banks in North Texas. He holds a bachelor’s degree in economics from East Texas State University, a master’s of business administration from Texas A&M University–Commerce, and is a graduate of the Southwestern Graduate School of Banking at Southern Methodist University. Ray Lindley — Senior Vice President of Lending Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 13 Ray is responsible for leading and directing Elevations’ consumer, retail, mortgage and business lending operations. He monitors industry trends and lending news to make sure Elevations provides safe, affordable loans to as many future homeowners and business leaders as possible. Ray has been instrumental in making Elevations the No. 1 credit union mortgage lender in Colorado and the No. 1 mortgage lender in Boulder and Broomfield counties. Ray held leadership roles with Washington Mutual and Chase before joining Elevations in 2013. A graduate of Northwest Nazarene University, he holds a bachelor’s degree in accounting and an M.B.A. in economics. Our Understanding of the Program Home Efficiency Loan Program The City of Fort Collins is seeking a financial partner to provide scalable capital and financial services in support of their Home Efficiency Loan Program (HELP) that supports the Fort Collins energy and water efficiency program, Efficiency Works. The goal for Fort Collins is to dramatically expand HELP in order to reach ambitious energy and climate goals set for the community adopted by the City of Fort Collins policies and plans; such as the climate action plan, Energy Policy, and Water Efficiency Plan. The statement of work is to provide a loan program to Fort Collins Utilities customers for energy and water efficiency projects and renewable energy systems. The Home Efficiency Loan Program is designed to help provide residents and certain commercial utility customer’s low cost financing for energy efficiency, solar photovoltaic, and water conservation improvements. The Home Energy Loan Program to date has initiated over 75 loans for a total outstanding balance exceeding $800,000. Fort Collins Efficiency Works program has helped over 1,500 homes receive energy efficient improvements. Home Energy Affordability Loan (HEAL) Program The City of Fort Collins is also at the beginning stages of implementing a pilot of the HEAL program in collaboration with local businesses. HEAL is a project of the Clinton Climate Initiative that seeks to implement energy efficiency audits and retrofits as an employer sponsored employee benefit. Elevations can and will be in support of the HEAL program and its partners under the EW neighborhoods pilot program. Elevations has the ability and willingness to coordinate with other utilities to ensure all employees can participate, regardless of utility service territory. Scalable Goals for Fort Collins Energy Policy and Climate Action Plan  By 2017 - 100-120 Loans for a total of $1,000,000  By 2020 – 1250 Loans for a total of $14.5M  By 2030 – 3,000-6,000 Loans for a total of $35M - $70M Gathering and Raising Private Capital Elevations will not need to source external loan capital to fund this program. We possess ample liquidity and ability to make loans of these types, and will fund the entire program as contemplated. Elevations has ample liquidity and capital for a scalable program in the coming years to meet and support the ambitious goals described in Fort Collins Climate Action Plan (CAP). All loan applications and processing will be handled through Elevations’ single solution and program website. We estimate the average residential loan to be $6,743. This estimate is based upon data from our current Energy Loan Program. Our proposed loan limits accommodate these estimated loan amounts, and with a residential loan maximum of up to $25,000, consumers will be able to borrow enough to install rooftop solar or geothermal, if their project qualifies. Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 14 We are willing to provide a minimum loan limit of $500, which would allow us to provide loans to individuals needing financing for smaller items such as an Energy star appliance. Our loan administrative fee of $25 would cover any of the origination or servicing fees for the lower funding limits, and may be paid from loan proceeds. Each new loan does require a new membership account requiring $25, which will be paid by the borrower, if not already a member. Loan repayments must be paid through direct withdrawal and auto draft from the borrower’s primary checking or savings account, at another financial institution or at Elevations in order to receive listed rates or a 1% add will be applied. We will file a UCC-1 financing statement on all business loans and consumer loans. The fees for this financing statement will generally be between $18 and $25, paid by the borrower, and can be paid from loan proceeds. This additional statement will not require the addition of any material amount of time to the process and will not require any action of the part of the borrower. The membership fee of $25 is the only required out-of- pocket expense to the borrower. Fort Collins Energy Loan Product Overview (Proposed Financial Solution) Elevations would propose that the Credit Union be the direct Lender for originating, delivering, servicing, and ownership of the loan available to customers that meet lender eligibility and project requirements. The Utilities/Municipality would act as the guarantor through a loan loss reserve. In addition to the Utilities/Municipality as guarantor another option available would be to utilize a program such as the Green Colorado Credit Reserve (GCCR) created by the Colorado Energy Office (CEO) and administered through Colorado Housing Finance Authority (CHFA). Loan Loss Reserve (LLR) As part of the credit enhancement, we understand that a loan loss reserve can potentially help fund unsecured energy efficient loans. The funding of a loan loss reserve will reduce interest rates for the longer loan tenors and/or to expand access to financing to borrowers with lower credit ratings. We also understand that the Loan Loss Reserve (“LLR”) will support the entire Loan portfolio and will be sized to exceed the estimated portfolio loan losses. Elevations is open to creating an LLR program that is most beneficial to all stakeholders and parties involved. We would request that a certain percentage of the original loan balance agreed upon by all parties will be held in an interest bearing reserve account until the loans in the pool are paid off (rather than amortizing down and diminishing as the principal balance is reduced). Elevations is open to discuss the loan loss share percentage in the event of a default. Loan Loss Reserve (Utilizing the Green Colorado Credit Reserve) The Green Colorado Credit reserve is a loan loss reserve fund created by the Colorado Energy Office and is administered by the Colorado Housing Finance Authority (CHFA). The GCCR will provide a loan loss equal to 15% of the total amount of the loan. Having a loan loss reserve lowers the risk of an unsecured loan enabling lower interest rates and expands the access to borrowers with lower credit ratings. Elevations Credit Union has not submitted an application to CHFA the administrator however, would be willing to do so. After discussion with the Colorado Energy Office (CEO), we are able to confirm that the program briefly described and proposed by Elevations would be eligible for the GCCR. Of course, we can't officially state that it is available without having a broader discussion about the specifics and obtaining Leadership buy-in from all parties and stakeholders involved, but from a programmatic and administrative perspective, such a loan product would be eligible for the GCCR. Administration of Loan Loss Reserve We would request that the City of Fort Collins establishes a separate agreement with the Colorado Housing and Finance Administration (CHFA) to escrow and disburse the LLR funds from the utility. The Reserve Account will remain available to cover loan losses until all loans supported by the loss reserve Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 15 have fully amortized. At that point, any remaining funds will be designated to support further Energy lending or for another use determined by the City of Fort Collins and the utility. Funds will be available to cover losses if Elevations meets the following conditions:  Elevations originates a loan that complies with the requirements and properly registers that loan with the CHFA through its Fort Collins credit reserve program. Or  Elevations originates a loan that complies with the requirements and properly registers that loan with the Green Colorado Credit Reserve (GCCR) and CHFA.  Upon determination of borrower default (90 days past due) Elevations will submit a request for reimbursement according to the terms of the agreement with CHFA  Elevations submits loan-level documentation required by CHFA and or GCCR  CHFA and or GCCR determines that the loan complies with the terms of the credit reserve program as established through the contract with the City of Fort Collins. It is our understanding that claims to the LLR held at CHFA cannot be defeated if the lender demonstrates the following: 1. Loan was underwritten and closed in accordance with the guidelines agreed upon by the City of Fort Collins 2. Quality control process was in effect at the time of origination. Loan Characteristics Attribute Features/Notes Loan Terms Available 36- 180 Months Interest Rates 2.75% – 9.125% Fees $25 Processing Fee Charged to member. $25 New member deposit (if not a Member) $10-$25 UCC-1 Financing Statement fee Recording UCC-1 Filing recorded with Larimer County Property Eligibility Residential single family and townhome properties, small business customers (by Owner) Rental Properties (by Owner) inside City Limits of Fort Collins. Member Eligibility The borrower must be a member of the Credit Union and must establish membership at closing if not already a member. Customer Qualification Minimum Fico Score 580 Min/Max Loan amount $500/$25,000 Residential Product Description  A loan that finances energy efficiency and renewable energy upgrades for homes within the City of Fort Collins. The Property must be located in Fort Collins.  This loan will be provided in conjunction with the City of Fort Collins Home Energy Loan program and the Fort Collins Utilities Energy and Water Program, Efficiency Works.  The borrower must be a member of the Credit Union and must establish membership at closing if not already a member.  Loan terms of 36, 60, 84, 120 or 180 months.  Before a loan can be issued an Efficiency Works Energy Advisor will work with the borrower to ensure their project meets loan eligibility criteria and assist the member in any available rebates. Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 16  The member can enter an application in a number of easy ways that include: online, by phone, or visit a local branch. Features/Benefits Features Benefits Competitive rate, terms, and minimum/maximum loan amounts. ($500/$25,000) A loan can be structured to meet member needs very efficiently. The loan is at a fixed rate, fixed payments and no pre-payment penalty. Fixed payment rate that the member can budget to. Partnership with Fort Collins and Efficiency Works program An Energy Advisor is selected to work with the borrower to ensure their project meets the loan criteria and assists in any available rebates. Payments can be made through on line banking, setting up automatic payments, over the phone, by mail, in branch, and by bill pay. Convenient payment options that can save the member time, and ensures payments can be received on time. Consumer Loan Underwriting, Product Rates and Terms Elevations Credit Union has great expertise in underwriting consumer credit as evidenced by our existing mortgage and other consumer lending products. The personal Home Energy loan underwriting guidelines we have designed are outlined below. Our practices are fully vetted and in use across all of our other consumer loan programs. Under Writing Guidelines Tier 1 (680 +) Tier 2 (640-679) Tier 3 (Below 639) Credit Score (“FICO”) Minimum  Each borrower must have a minimum Credit Score  If there are multiple borrowers, the lower score (regardless of income) must be used for qualification  680 if salaried (or fixed income)  680 if self-employed for more than 2 years  720 is self-employed less than 2 years  640 if salaried (or fixed income)  680 if self-employed more than 2 years  720 if self-employed less than 2 years  580 if salaried  No self-employment Loan Amount  Up to $25,000  Up to $10,000  Up to $7,500 Bankruptcy, Foreclosure, Repossession Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 17 Other  Membership must be established for all signers  Membership must be established for all signers  Signed application must be obtained for all primary applicants under the age of 21 and must include the signature of any joint signer  Membership must be established for all signers  Guarantor – no membership requirement Loans may be assigned to a different approval tier, be declined, or be subject to further review if underwriter determines that FICO score or other factors are inconsistent with actual credit and employment profile. Verification of Income (“VOI”) Requirements Salaried Employees, Pension, SSI Income, etc. Self Employed Stated Income (No Verification Required)  When the loan amount is less than $4,000, and  When the FICO is greater than 740 Income Verification Required  When the loan amount is greater than $4,000  When the FICO is less than 740  One pay stub with YTD earnings dated within 30 days of the application or award/benefit letter for SSI or pension showing income amount, payment frequency, and start and end dates. Rental income verified by lease or Schedule E from tax return NOTE: Any “other” income (not primary income), which is being used to qualify the loan, must be verified Stated Income (No Verification Required)  When the loan amount is less than $4,000, and  When the FICO is greater than 740 Income Verification Required  When the loan amount is greater than $4,000  When the FICO is less than 740  Most recent federal income tax return (first 2 pages of 1040) plus Schedule C if applicable. Rental income verified by lease or Schedule E from tax return NOTE: Any “other” income (not primary income), which is being used to qualify the loan, must be verified Note: While most loan requests will be processed using these guidelines, verification of income may be requested on any loan at the underwriter’s discretion Our consumer loan pricing will allow us to make funding available to individuals throughout the socioeconomic spectrum. It is expected that terms for residential loans will extend to 15 years. We also understand that terms can be tied to the total loan amount per the credit matrix along with differential pricing for longer terms. Reduced interest rates can be available with a credit enhancement provided by the Municipalities for lower and moderate-income households. Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 18 Pricing Matrix Score FICO 36 Months 60 Months 84 Months 120 Months 180 Months 740+ 2.750% 3.500% 4.500% 6.000% 6.500% 720-739 2.875% 3.625% 4.625% 6.125% 6.625% 700-719 3.000% 3.750% 4.750% 6.250% 6.750% 680-699 3.125% 3.875% 4.875% 6.375% 6.875% 660-679 3.500% 4.250% 5.250% 6.750% 7.250% 640-659 3.875% 4.625% 5.625% 7.125% 7.625% 620-639 4.375% 5.125% 6.125% 7.625% 8.125% 600-619 4.875% 5.625% 6.625% 8.125% 8.625% 580-599 5.375% 6.125% 7.125% 8.625% 9.125% NOTE: On residential loans we will use the higher of two credit scores when there is a co-borrower. Processes and Procedures Customer Intake and Origination Our loan intake and origination process has been designed to facilitate loan applications that emphasize ease of transaction, consumer choice, and superior customer service. Applicants for loans in this program can apply online (one of the most preferred means of applying for a loan), by phone, or in person at any of our branch locations. Our expectation is that the majority of these loans will be generated via our online loan application. https://www.elevationscu.com/energyloans/home As we do with all of our loan programs, we will comply with all state and federal regulations applicable to these activities. Online access will be available through web links on the Elevations’ website, www.elevationscu.com. Applicants will be able to learn about the loan process, terms and conditions, as well as complete an application online from the convenience of their home or office. We will also provide information by phone with the ability to speak to a loan representative between the hours of 7:30 a.m. to 6:00 p.m. Monday through Friday and 8:30 a.m. to 12:30 p.m. on Saturday. In the rare event that our call center is unable to assist an applicant immediately, our representative will return the call within 24 hours. Our in-branch representatives will be available to speak with individuals or complete the application process Monday through Friday 8:00 a.m. to 5:30 p.m. and Saturday from 9:00 a.m. to Noon. Application Process We use MeridianLink’s LoansPQ application as the platform for loan origination. This platform has been customized by our team with all of the required elements of our current loan products. We have designed loan processing queues, structured the underwriting flow, vetted all of the documentation produced by the system, and tested each loan product within the platform to ensure it runs effectively and efficiently. Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 19  The automated decision engine (“ADE”) allows for 180 different criteria that can be enabled to define specific approval or denial parameters, far more than those anticipated in the underwriting guidelines for these products.  DocuSign is our e-signature provider allowing faster and more efficient digital loan processing for the convenience of our members and ensuring reliability and security for our Credit Union. Most borrowers under this program that choose to do so will be able to close their loan electronically from the convenience of their home or office – never needing to sign any paper documents. We will still be able to close loans on paper as a fallback position and it will be offered as a closing choice option for members if they so desire. More information on DocuSign is available at www.docusign.com.  Our processes and systems will track proper codes to ensure accurate reporting to the Municipalities. This robust application platform allows our staff to simplify the process of selling and fulfilling a loan request. The platform follows an intuitive process to create a loan request and provide all of the information required to submit an application. A loan request cannot be completed without required fields, making the loan record much less prone to error when it is fulfilled. Sample screen shots of the application process are provided below: Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 20 The system automatically pulls credit reports and calculates product eligibility parameters and credit requirements, including debt ratios. No manual calculations or judgments regarding whether or not an application meets guidelines are required – all of this logic resides in the system. After submission, the Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 21 loan is either auto-approved using the decision engine, or reviewed by an underwriter for approval or denial. An answer is communicated back to the applicant through the system if instant approval is granted. If instant approval is not granted, a message to the applicant is displayed that their loan is under consideration and that they will receive an answer within one business day. No loans are “automatically declined.” Only after review and consideration of all possible structuring options, and after potentially contacting the applicant for more information, is a loan denied if the level of risk is deemed unacceptable. After the credit decision is made, the loan moves to the appropriate processing queue to be completed. Our lending services group fulfills the request; contacts the applicant to obtain any additional information required; and then completes the loan documents with delivery of the documents to the member. Delivery can be made person-to-person by printing to a printer at any of our branches, by DocuSign for completion by the applicant at their own home or business, by mail or fax. Applicants will indicate during the application process, their preferred contact method and closing location. Our platform and this process will provide the applicant with an easy-to-use, streamlined, and efficient loan experience. In addition, the process is fully supported by our expert and friendly staff members who are always willing and eager to provide personal contact on demand. The Applicant Experience These processes have been designed with the member in mind. Loan applicants will:  Receive fast answers on loan requests; as much as 20% will likely receive instant approval  Receive consistent experiences thanks to these documented business processes and excellent technology  Spend very little time waiting for a credit decision or loan documents after approval  Devote very little time and energy fulfilling our needs for documentation  Be offered various choices for closing loans: in person at our branch, via DocuSign, fax or mail. Customer Service Proficiency Elevations Credit Union is committed to providing our members with superior customer experience. The mission of our contact center is to provide solutions for a better life. The center handles calls and emails from current and potential members to provide information and issue resolution. Our goal is to enhance the member’s relationship to deliver what is needed, when it is needed! Our seasoned, professional staff includes representatives and management with extensive experience in the banking industry and with Elevations. 2016 Staffing 2017 Staffing Position Count Estimate Manager 3 3 Supervisor 2 2 Member Service Specialists 15.5 18.5 Inbound Lender / Member Service Specialists 8.75 8.75 Outbound Lenders 8 8 Email and Chat Specialists 3 3 Contact Center Performance We are proud of the performance of our customer contact center. In 2015, we handled 374,000 calls and expect that number to exceed 400,000 this year. In 2015, our inbound lenders in the contact center produced $31,143,629 in consumer lending production, and our outbound lenders produced $32,651,336 in consumer lending production. We facilitated 8,900 member emails and 18,900 chats last year. Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 22 In most contact centers, the two biggest problems faced are in the areas of morale and retention. Our center was designed to build a strong team of individuals committed to providing customer service that impacts our members’ lives. It is because of their dedication and hard work that we are able to excel at what we do and provide our members with the best quality service available. Our Contact Center Appreciation and Recognition of Employees (CARE) program was created to encourage, motivate and recognize individuals within the center for their customer excellence. Our contact center employees have been recognized for their achievements from both internal and external audiences. They were recognized internally for having the highest level of employee engagement for the past three consecutive years. The Colorado Performance Excellence examiners rated our customer contact team as having the best process and presentation approaches that make data meaningful for our members and employees. The team has been quite successful in motivating, recognizing and encouraging our employees creating a strong team atmosphere that makes a difference in the way we serve our members. Our center provides coaching and training through an innovative Buddy Program. This formal process provides additional training and support on a one-to-one basis for new employees and for individuals learning new skills. The program includes shadowing, mentoring and coaching, as well as providing feedback to improve performance. We also use call recording and side-by-side coaching to give our employees the knowledge and confidence they need to increase performance and member satisfaction. Every employee at Elevations has the opportunity for two-way communication. We encourage open and honest communication between all levels of staff within the organization. Our staff is empowered to make independent decisions that follow our core values, which is reflected in our member satisfaction scores. To survey the member experience, we use Satmetrix (www.satmetrix.com), a Net Promoter Score to measure the success of our contact center. This measurement shows the likelihood of the member to recommend Elevations Credit Union to others. This is a benchmark that is considered to be the best-of- the-best. Don’t take our word for it; see what our members have said: “I was impressed by the fact that when the agent I spoke with first determined that he couldn’t help me, the call back I received (from someone who could help) was within less than an hour. I feel like that’s a positive experience. Thank you.” “I always love the convenience and ease of Elevations banking services. Things just keep getting better. You are always trying to do everything better and it shows!” We connect with our members on a human level during the introduction or intake phase. We then connect on a business level to identify and deliver their needs, and again on a human level at the conclusion of the encounter. Our high member satisfaction scores prove our encounters at every phase of the interaction are geared to meet the member’s needs. Loan Servicing and Collections Elevations Credit Union has been providing lending to its members since its inception in 1953. All of our loan servicing functions include but are not limited to compliance with all relevant financial regulations, collections, tracking of loan and loan portfolio performance and reporting. Our extensive experience in loan servicing and our unequalled customer service has made us a preferred lender in our service area for years. Our quality customer service and our innovative products and services have provided our members with lending to fit their needs for the various stages in life. Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 23 Loss Mitigation and Collections Our delinquency and loan charge offs rates are better than our peers. The competitive nature of consumer lending is creating challenges for all financial institutions; however, we continue to provide quality customer service and a personalized approach to lending and loss mitigation that gives us a true competitive advantage. These seasoned professionals work closely with our members and potential members to ensure they receive the highest quality experience. Each member of our team has received the appropriate training, as well as hands-on experience to ensure they are knowledgeable and able to assist our members at any stage in the loan servicing process. Compliance and Financial Regulations All of our collection practices are conducted in compliance with the Fair Debt Collection Act, the Fair Credit Reporting Act, and all other applicable State and federal regulations. Collections Our most important goal is to provide quality service to our members and to work closely with the member in the event payments fall behind. In the event a past due situation arises, we will follow our standard guidelines to attempt to remedy the situation and collect the past due payment. If payment cannot be collected, we will begin the collections process. We begin the collection process if a member is ten days past due. The sooner we are able to engage the member, the better opportunity we have to mitigate further delinquency or have the loan fall within the uncollectable status. Collections Process  A data mailer is sent to member at 10 days past due  A reminder letter is sent to the member at 20 days past due suggesting the payment may have been an oversight. Information regarding financial counseling through our partner, Accel Services. For more information on Accel, we refer you to www.accelservices.org  A right to cure letter is sent to the member at 30 days delinquent  A second collection letter is sent to the member at 31 days past due for all loan types when there is a valid Right to Cure notice on file. This letter informs the member to contact the Credit Union regarding the past due account or collection action may escalate.  E-mail notices are used to help initiate contact with a member who is not responding to paper letters. Queuing Actions 11 to 30 days delinquent (All Loans)  Auto loans are separated from the general queue between 20 to 30 days delinquent for targeted collections  Second mortgages are targeted through work view at 11 days delinquent for targeted collections • 31+ days delinquent (Unsecured) • 31+ days delinquent (Secured) Actions 1 to 60 Days Delinquent (All Loans) • No contact action  Message is left and the account is set out for follow up the following day  If the member is not responding to collection techniques request door knock if necessary  Restrict all account transactions  Restrict credit card and or lines of credit Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 24  Request a credit bureau report (“CBR”)  Perform complete skip work as necessary • Contact action  Verify member by first and last name, verify address, phone number, POE and reason for delinquency  Obtain a promise to pay  If no promise was obtained, document reason for refusal  Educate the member on next steps and consequences  Refer member to Accel for financial counseling services  Explore member’s financial resources  Evaluate member for possible work out agreement or hardship program for members facing financial difficulties 60+ Days Delinquent • Auto Loans o Collection action continues o Review for repossession action if necessary due to no contact or no payment arrangements o Continuous follow-up with repossession agent • Unsecured Loans o Collection action continues o Loan reviewed for charge-off if necessary due to no contact or no payment arrangements o After charge-off, loan is forwarded to a third party collection agency or an attorney for further collections or possible legal action, if the assets are located Quality Control Elevations quality control plan encompasses processes and procedures that not only ensures a quality customer experience, but also ensures we have all of the documents and requirements needed to fulfill our legal and compliance requirements. Through our quality control plan, we verify the existence and accuracy of all documents (legal, credit, property-related) that are required to underwrite, originate, and service the loan. Our plan confirms that we conform to all policies, any terms accepted under this program, and all applicable consumer loan regulations. We undergo multiple rigorous audits on an annual basis: internal audit reporting, external CPA audits, and regulatory reviews by both the State Department of Regulatory Agencies Division of Financial Services and the National Credit Union Administration, our insurer and Federal regulator. Further detail on our quality control plan will be provided if we are awarded this engagement, and made a part of the agreements applicable to the same. Reporting We can provide reports on all loans within the system based on your specific requirements and delivery timeframe. We can provide reports on each of the following:  Loan Performance – any past due loans will be reported in an Excel format on a quarterly basis o Payment History – including delinquencies per loan recording the number of days past due set out in brackets on a monthly basis o Delinquencies – including date of default, amount of default, current principle loan balance due on a monthly basis o Charge Offs – including sale of assets (in the dollar amount), proceeds from sales to recover unpaid loan amount (if applicable) and net lender loss (including current balance and asset sales amount) on a monthly basis  Underwriting criteria for each individual loan with all personal identifying information scrubbed and aggregated provided at regular intervals. Our Credit Union can collect information on almost any Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 25 data set within the process, to address credit quality. Additional data collection can be provided based on your specific requirements.  For residential loans, reporting can include: o Loan Data  Loan application rejected (yes/no)  Loan approved date  Compounding period (number of times/year)  Loan term (number of months)  Fixed interest rate o Underwriting Criteria  Annual income  Middle credit score (FICO)  Debt to income ratio (front end)  Debt to income ratio (back end)  Property valuation (dollar amount or N/A)  Outstanding mortgage debt (dollar amount)  Outstanding home equity line (dollar amount)  Outstanding other debt (dollar amount)  Existing liens on property (dollar amount)  Loan to value ratio  Previous bankruptcy or foreclosure in past seven years We will be pleased to discuss any other reporting requirements upon contract award. We can provide any required data for the program on either a quarterly or monthly basis (or both). Our goal is to provide Fort Collins with all of the information required. We will also work closely with the City to provide data that gives a true picture of the program at each required interval. We can provide spreadsheet templates for your approval before the program goes into production. We understand that the City of Fort Collins reserves the right and may require that additional information be collected at any time. We will be pleased to work with the Municipality to ensure the most efficient transfer and reporting mechanism for this information. Terms and Fees for Program Administration The terms and fees for the program are as follows:  Loans require a $25 administrative fee, which can be financed in the loan amount. Each loan will require a new membership account requiring an opening balance of $25, which will be paid by the borrower.  We will file a UCC-1 financing statement on all business loans and most consumer loans to Larimer County. Fees for this will range from approximately $10 to $25, will be paid by the borrower and may be financed in the loan amount. This statement does not add any material amount of time to the process and requires no action on the part of the borrower.  No other documentation or filing fees will be charged.  No prepayment fees or penalties will be charged. Elevations Credit Union – The Right Partner Through our own dedication to reducing energy usage in our facilities and business processes, Elevations truly lives what we believe. Over the past five years, we have compiled extensive research and performed data analyses to assess the risks and benefits associated with this type of lending. We have gained significant expertise in this type of lending over the five years and have had great success. We have all processes and procedures built out and ready for a quick launch. Our commitment to encourage green investments combined with our corporate mission and goals make Elevations the preferred partner:  Our typical member-profile fits the demographic audience that is a good “fit” for this type of lending Fort Collins Purchasing RFP #8319 Capitalization & Financial Services for Home Efficiency Loan Program (HELP) ©2016 Elevations Credit Union All Rights Reserved 26 activity  We can also provide broader access across the socioeconomic spectrum allowing more borrowers to utilize the program  Our staff has the skills and expertise needed to build a successful program with Fort Collins  We can achieve the specified leverage ratio  Our commitment to sustainability and our extensive network of green contractors and organization make this program a natural extension of our lending services  We can offer the best loan terms Elevations Credit Union is well positioned in the community to take advantage of all of the resources needed to meet the goals and objectives of the program while continuing to make a lasting impression on the communities we serve. The initial consumer/residential loan-pricing table based on credit ratings follows. Rates for new loans may be adjusted in the future at Elevations’ discretion if market interest rates rise or the availability of a loan loss reserve program is unavailable.  None in the last 7 years  None in the last 5 years  None in the last 2 years Unpaid Collection Accounts, Judgments, Tax Liens  No more than $2,500 total  No more than $2,500 total  No more than $2,500 total Debt to Income Ratio (“DTI”) Maximum  Any loan which has a remaining term of less than 6 months may be excluded from the calculation  When revolving accounts do not show a minimum payment, use the greater of 1% or $10  Real Estate taxes and homeowners insurance (if not included in the mortgage payment) must be included in ratio  Additions to the Borrower’s cash flow from energy improvements may be considered at the underwriter’s discretion  ALL qualifying FICO scores: 50%  ALL qualifying FICO scores: 45%  ALL qualifying FICO scores: 36%