ADELAIDE MORTGAGE SOLUTIONS
Asset Management Value Proposition Bank Partner Discussion  |  April 2026

AMS as Asset Manager

Adelaide Mortgage Solutions serves as the single point of accountability between the Bank Partner and all sub-servicers — delivering unified oversight, reporting, and default management without holding servicing rights.

Servicing Rights
Bank Partner Owned
AMS Compensation
Fixed Strip on UPB
AMS Role
Asset Manager
How the model works
01

Loan purchase

Bank Partner purchases loan from Walton Funding LLC; title transfers via MERS or recorded assignment

02

AMS oversight begins

AMS engages approved sub-servicer and assumes full asset management responsibility

03

Performance monitoring

AMS monitors sub-servicer KPIs and directs collections and loss mitigation strategy

04

Unified reporting

Bank Partner receives one consolidated monthly report covering the full portfolio

Core capabilities
Oversight

Sub-servicer management

  • Approved panel with defined eligibility criteria
  • Licensing and regulatory compliance verification
  • Ongoing performance scorecards
  • Corrective action plan authority
  • Termination and replacement management
Transparency

Portfolio reporting

  • Consolidated monthly asset management report
  • Loan-level delinquency and performance data
  • Loss mitigation activity and pipeline
  • Charge-off and recovery summary
  • Remittance reconciliation
Resolution

Default & loss mitigation

  • Directs sub-servicer loss mitigation strategy
  • Approves modifications and workout decisions
  • Reviews charge-off recommendations
  • Oversees REO and collateral liquidation
  • Coordinates regulatory and legal escalations
Bank partner protections
Control

Oversight & audit rights

  • Direct audit rights over AMS and sub-servicers
  • Termination rights over AMS as Asset Manager
  • AMS termination triggers strip forfeiture
  • Full transparency into sub-servicer agreements and performance data
Continuity

Servicing continuity

  • AMS owns all sub-servicer transition activity
  • RESPA transfer notice compliance managed by AMS
  • Single point of contact through any transition event
  • AMS bears primary responsibility for transition coordination
Why the AMS model works
One relationshipBank Partner manages AMS, not a roster of sub-servicers
No servicing rights conflictBank Partner owns the MSR; AMS holds no ownership interest
Aligned incentivesFixed strip tied to UPB — AMS incentivized by portfolio performance
Risk insulationSub-servicer operational risk absorbed and managed by AMS

Walton Funding LLC  |  DBA Adelaide Mortgage Solutions  |  NMLS #1198715  |  9961 E Co Hwy 30A Suite 7, Inlet Beach, FL 32461

Confidential — For Discussion Purposes Only