>> LADIES AND GENTLEMEN, THANK YOU FOR STANDING BY. WELCOME TO THE WEBINAR. I WOULD LIKE TO INTRODUCE YOU TO YOUR HOST.

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1 >> PLEASE STAND BY. >> LADIES AND GENTLEMEN, THANK YOU FOR STANDING BY. WELCOME TO THE WEBINAR. I WOULD LIKE TO INTRODUCE YOU TO YOUR HOST. >> THANKS FOR JOINING US TODAY. I WOULD LIKE TO GO OVER A COUPLE OF HOUSEKEEPING TIPS. FIRST, HOPEFULLY YOU HAVE ALREADY FIGURED THIS OUT, BUT THE AUDIO SHOULD BE COMING IN TO RESTORE -- THROUGH YOUR COMPUTER SPEAKERS. THERE IS NO CALL IN NUMBER. IF YOU HAVE ANY TECHNICAL OR AUDIO ISSUES, CLICK ON THE SUPPORTING DOCUMENT BUTTON AND THERE IS A DOCUMENT THERE FOR YOUR REVIEW. THAT SHOULD BE ABLE TO ASSIST YOU A GOOD TIP TO NOTE IS TO HIT A "REFRESH." IF YOU FIND THAT THE SLIDES ARE FREEZING, OR THE AUDIO HAS CUT OUT MOMENTARILY, THEN GO AHEAD AND CLICK REFRESH AND THAT SHOULD FIX IT. SOME IMPORTANT THINGS TO KNOW, THERE IS A QUESTION AND ANSWER FORMAT AVAILABLE THROUGHOUT THE WEBINAR. WE HAVE TWO STAFF UNDERWRITERS THAT WILL BE HERE TO ANSWER QUESTIONS. TO UTILIZE THAT, JUST CLICK ON THE "ASKS A QUESTION" AND THEN TYPE IN YOUR QUESTION. THERE WILL BE A POP-UP BOX AND YOU CAN JUST SEARCHED THROUGH TO FIND YOUR OWN QUESTION. IT CAN BE DIFFICULT TO KEEP UP WITH THE TEXT BOX AND LISTEN AND FIND YOUR OWN QUESTION. WE WILL PUT TOGETHER A DOCUMENT BASED ON THE QUESTIONS THAT WE RECEIVED TODAY. IF YOU CANNOT FIND THE ANSWER TO YOUR QUESTION TODAY, HOPEFULLY IT WILL BE ON THE DOCUMENT. THERE ALSO BE A USER'S COPY OF THIS POWER POINT PRESENTATION, AND A.PDF VERSION, AND A TECHNICAL ASSISTANCE DOCUMENT. AND WE DO HAVE CLOSED CAPTIONING AVAILABLE DURING THIS WHAT ARE -- WEBINAR. YOU CAN CLICK ON THE CLOSED CAPTIONED BUTTON AND THAT WILL TAKE YOU TO ANOTHER WEBSITE WHERE YOU CAN HAVE THAT WHERE IT WILL NOT BE TAKING UP THE WHOLE SCREEN. WE WILL BE USING POP UPS TO PUSH OUT SOME WEBSITE ARE TO YOU AND I BELIEVE, FOR THE POLL QUESTIONS, THEY ALSO COME UP AS POPS. IF YOU KNOW THAT YOU HAVE A POP- UP WALKER, YOU NEED TO MAKE SURE THAT IS TURNED OFF. -- A POP-UP BLOCKER, YOU NEED TO MAKE SURE THAT IS TURNED OFF. I WILL GIVE YOU A MOMENT TO DO THAT SO THAT YOU CAN HAVE THE FULL EXPERIENCE OF THE WEBINAR. LET'S GO AHEAD AND TEST IT OUT. I WILL DO A POLL QUESTION HERE. CAN EVERYONE SEE AND HEAR THE PRESENTATION OK? GO AHEAD AND ANSWER WHETHER OR NOT YOU CAN. OKAY, GREAT. AND IT LOOKS LIKE MOST OF YOU CAN. IT LOOKS LIKE A COUPLE OF PEOPLE ARE HAVING PROBLEMS WITH THEIR SLIDES NOT ADVANCING. REMEMBER, GO AHEAD AND CLICK THE "REFRESH" ON YOUR BROWSER SCREEN AND THAT SHOULD FIX THE PROBLEM. AND AS I MENTIONED BEFORE, AND AS IT WAS IN YOUR E- MAIL, THIS WEBINAR WILL BE ARCHIVED. IF YOU WANT TO SEE THIS AGAIN YOU CAN GO TO YOUR COLLEAGUES, AND I WILL PUSH IT OUT TO YOU AS WELL. A POP OUT -- A POP-UP SHOULD BE VISIBLE TO YOU RIGHT NOW. THIS ONE SHOULD BE UP IN ABOUT FIVE DAYS. JET BACK AT THIS WEBSITE IN ABOUT FIVE DAYS AND HATRED BE THERE -- CHECK BACK AT THIS WEBSITE IN ABOUT FIVE DAYS AND THE DOCUMENT SHOULD BE THERE. I ALSO WANT TO LET YOU KNOW ABOUT AN UPCOMING WEBINAR THAT WE HAVE ON

2 NOVEMBER 29. IT IS A LITTLE WAYS AWAY, BUT YOU CAN MARKET ON YOUR CALENDAR. WILL BE DOING A "BUILD ON YOUR OWN WEBINAR OWN -- "BUILD ON YOUR OWN LAND" WEBINAR. WHAT JURISDICTION ARE YOU UNDER? ATLANTA, DENVER, PHILADELPHIA, OR SANTA ANA? IT LOOKS LIKE WE HAVE OVER HALF IN DENVER, AND THEN SPLIT PRETTY EVENLY WITH THE OTHERS. AND FINALLY, WE ARE ALWAYS TRYING TO MAKE SURE THAT WE CATER TO THE INDUSTRY'S NEEDS. WE WOULD LIKE TO KNOW WHICH OF THESE WEBINARS YOU FIND MOST BENEFICIAL. JUST A COUPLE MORE SECONDS FOR YOU TO ANSWER THAT. IT IS AN IMPORTANT QUESTION FOR US. ALL RIGHT, IT GOES LIKE -- IT LOOKS LIKE A RED FLAGS HAS THE MOST NUMBER OF VOTES, FOLLOWED BY TOTAL SCORE CARD. WE WILL KEEP THAT IN MIND FOR FUTURE WEBINARS. AT THIS TIME, I WILL GO AHEAD AND TRANSFER THIS OVER TO DAN LEWIS -- JAN LEWIS. >> A GOOD MORNING. I WOULD LIKE TO WELCOME YOU TO THE WEBINAR, WHICH IS BEING SLAUGHTERED BY THE DENVER HOME OWNERSHIP CENTER. -- BEING SPONSORED BY THE DENVER HOME OWNERSHIP CENTER. FIRST, I WOULD LIKE TO GO OVER WHERE YOU CAN GET MORE INFORMATION. OUR FREQUENTLY ASKED QUESTIONS, THERE IS THE WEBSITE. I WILL NOT READ IT TO YOU BECAUSE YOU ALL HAVE ACCESS TO PRINT THIS OUT. AND THIS FREQUENTLY ASKED QUESTIONS SITE CONTAINS ALMOST 1300 QUESTIONS AND ANSWERS ABOUT FHA PROGRAMS, UNDERWRITING, AND PROCESSING. YOU CAN SEARCH BY KEYWORD OR CATEGORY. THIS IS A REMINDER TO YOU TO SIGN UP TO RECEIVE AS A J UPDATES -- FHA UPDATES. THIS WAS FORMERLY CALLED THE LIST SERVE. THERE IS A NEW WEBSITE TO SIGN UP FOR THIS. IT IS LISTED HERE. OR YOU CAN SEND A REQUEST BY E- MAIL TO ANSWERS@HUD.GOV. THIS WILL NOTIFY YOU OF ANY UPCOMING MORTGAGEE LETTERS OR TRAINING OR ANY OTHER ITEMS THAT ARE NOTED TO BE IMPORTANT FOR THE LENDERS. THE RESOURCE CENTER IS YOUR FIRST CHOICE FOR GETTING YOUR QUESTIONS ANSWERED, AND THIS IS THE PHONE NUMBER AND ADDRESS. PLEASE NOTE THAT THE ADDRESS SHOULD BE ANSWERS@HUD.GUV. IF THE RESOURCE CENTER CANNOT ANSWER YOUR QUESTIONS, THEY WILL FORWARD IT ON TO THOSE WHO CAN. THE HUD.GOV SITE IS WHERE YOU CAN FIND PROGRAM CHANGES. I BELIEVE ELIZABETH IS SENDING THEM OUT TO YOU, SO WHEN IT POPS UP ON YOUR SCREEN YOU CAN BOOKMARK IT. AND ALSO THE HUDCLIPS WEBSITE, WHICH IS LISTED UNDERNEATH HUD.GOV, WHICH IS WHERE YOU WILL FIND MORTGAGEE LETTERS AND FHA NOTICES. THE FIRST THING I WANT TO DO IS GO OVER THE HUT COMMERCIAL FOR THE ENERGY EFFICIENT COMMERCIALS. HUD IS PROMOTING THIS. THERE IS A PROGRAM A AVAILABLE FOR ENERGY- EFFICIENT MORTGAGES. IT ALLOWS HOMEOWNERS TO IMPROVE THE ENERGY EFFICIENCY OF THEIR HOME BY FINANCING THE COSTS OF THEIR IMPROVEMENTS. THIS SLIDE TELLS YOU WHO IS ELIGIBLE AND HOW YOU NEED TO APPLY. THE NEXT SLIDE WILL TELL YOU WHERE YOU CAN FIND MORE INFORMATION. THERE IS AN EEM WEBINAR. THAT HAS BEEN ARCHIVED. ELIZABETH WILL GIVE YOU THE SITE TO WHERE YOU CAN GO TO THIS AND YOU CAN REGISTER. YOU'RE NOT REALLY REGISTER RING, BUT YOU HAVE TO COMPLETE THE SCREEN BEFORE YOU GO IN TO THE SITE. YOU ARE NOT REGISTERING FOR A NEW CLASS. YOU ARE JUST ACCESS IN THE ARCHIVE TO WEBINARS. THESE LETTERS TO THE REFERRED TO THE ENERGY-EFFICIENT MORTGAGES ARE THERE. NOW WE CAN START OUR REO PRESENTATION. I

3 WANT TO START OUT WITH SIMPLE QUESTIONS TO TEST YOUR KNOWLEDGE ON WHAT YOU KNOW ABOUT OUR EO -- REO SO FAR. MY FIRST QUESTION IS A NEW CASE -- MY FIRST QUESTION IS, IF A NEW CASE REQUIRED ON A HUD PURCHASE? AND AGAIN, THE CHOICES ARE JUST, YES OR NO. OK, I'M NOT GOING TO GIVE YOU THE ANSWERS, BECAUSE WE ARE GOING TO TEST YOUR KNOWLEDGE AGAIN AT THE END OF THE WEBINAR. MY NEXT POLL QUESTION -- WHAT IS THE VALIDITY TIME FRAME FOR AN REO APPRAISAL? YOUR CHOICES ARE, 90 DAYS, 120 DAYS, 180 DAYS. MY NEXT QUESTION -- THE UTILITIES ARE NOT REQUIRED TO BE IN WORKING ORDER PRIOR TO CLOSING. YOUR SELECTION IS TRUE OR FALSE. NEXT QUESTION -- DOES HUDDY PROVIDE A HOME WARRANTY FOR THE -- DOES HUD PROVIDE A HOME WARRANTY FOR THE REO PROPERTIES? YOUR ANSWER IS YES OR NO. AND MY LAST QUESTION FOR THIS PORTION OF -- IF THE PURCHASE PRICE IS GREATER THAN THE APPRAISED BY YOU, THE DIFFERENCE CAN BE ROLLED INTO THE LOAN AMOUNT. -- IF THE PURCHASE PRICE IS GREATER THAN THE APPRAISED OF VALUE, THE DIFFERENCE CAN BE ROLLED INTO THE LOAN AMOUNT. YOUR ANSWERS ARE TRUE OR FALSE. OK, WE ARE READY TO MOVE ON. FIRST, WE WILL COVER SOME MORTGAGEE LETTERS THAT PERTAIN TO THE REO PROGRAM. THE MOST RECENT MORTGAGEE LETTER IS THIS COVERS THE GUIDANCE REGARDING THE FINANCING OF HOME BUYER TRANSACTION COSTS FOR HOME BUYERS UNDER A SPECIALLY AUTHORIZED SALES INCENTIVE REQUIRING ONLY $100 FOR THE DOWN PAYMENT. IT REFERS TO INSTANCES WHERE THE UPFRONT MAY BE FINANCED OR WHEN IT NEEDS TO BE PAID IN CASH. MORE TO DO BETTER COVERS LEAD BASED PAINT WITH REGARD TO HUD REO PROPERTIES. AND MORTGAGEE LETTER , F.A. J. APPROVED LENDERS AND LOAN SERVICERS, FHA HAS CENTRALIZED AND STREAMLINES THE MORTGAGE COMPLIES PROCESS UNDER ONE CONTRACTOR. PLEASE REVIEW THIS MORTGAGEE LETTER, FOR MORE INFORMATION ON THE M &M 3. IF YOU HAVE QUESTIONS, PLEASE CONTACT THE REO DIVISION AT CONTACT FHA. WHEN AN APPRAISAL IS REQUIRED, IT IS VALID FOR 120 DAYS. HOWEVER, IF AN APPRAISAL IS THE ORIGINAL APPRAISAL AND HAS NOT BEEN UPDATED, A 30-DAY EXTENSION TIME FRAME IS PERMITTED FOR LOAN CLOSING. AL-AWLAKI IN SHOURD IF IT DOES NOT CLOSE WITHIN 150 DAYS OF THE APPRAISAL -- A LOAN IS NOT INSURED IF IT DOES NOT CLOSE WITHIN 150 DAYS OF THE APPRAISAL DATE. THE NEXT MORTGAGES LETTER COVERS EVALUATION OF PROPERTIES. AND IN COVERS THOSE IN CONJUNCTION WITH A HUD OWNED PROPERTY. WHAT IS A HUDDY, REAL-ESTATE OWNED PARK -- WHAT IS A HUDDY- REAL ESTATE OWNED PROPERTY? THIS IS AN AGENCY THAT SELLS TO A HALT AFTER DEFAULT FORECLOSURE. WHEN A BUYER DEFAULTS ON THE LOAN, IT GOES TOO HIGH TO PAY THE REMAINING PRINCIPAL BALANCE ON HOLLEN. AND IN TURN, THE LENDER ADISDEEDS THE PROPERTY FOR DISPOSITION. NEXT WE ARE GOING TO COVER SOME OF THE REO CONTACTS. THE FIRST ONE IS THE ASSET MANAGER, COMMONLY REFERRED TO ANNOUNCE -- AS AN AM. THEY ARE YOUR CONTACT WITH EVERY HUD SALE. THEY ARE THE CONTACT FOR ALL OF THE BIDS THROUGH THE WEBSITE. THEY WILL ALSO SOLICIT THE EXISTING BROKER FOR THE PROPERTY. CONTACT THE ASSET MANAGER IF THE CONTRACT NEEDS TO BE AMENDED OR IF IT IS INCOMPLETE. NOW I WILL GIVE YOU ANOTHER POLL QUESTION. IF THE CONTRACT IS NOT A SIGN OR FULLY COMPLETED, WHO DO YOU NEED TO CONTACT? YOUR TAURUSES ARE THE HUD-REO -- YOUR CHOICES ARE THE HUD-REO, THE ASSET MANAGER, OR THE FIELD AGENT. IT LOOKS

4 LIKE YOU GUYS WERE LISTENING. IT IS THE ASSET MANAGER. OUR NEXT POINT OF CONTACT IS THE FIELD SERVICE MANAGER. HE IS COMMONLY CALLED FSM AND THESE ARE CONTRACTS THAT PROVIDE MAINTENANCE AND PRESERVATION SERVICES TO THE HUD-REO PROPERTY. IT CONSISTS OF INITIAL CLEANOUTS, INSPECTIONS, SECURING PROPERTIES, AND ROUTINE MAINTENANCE AND REPAIRS. THIS IS THE HUD-REO WEBSITE, THE HUD HOME STORE, AND THIS IS DESCRIBED IN MORTGAGEE LETTER THE HUD HOME STORE WEBSITE IS THE ONE STOP SHOP FOR HUD AND REO PROGRAMS. THIS WEBSITE ALSO PROVIDES THE NAME OF THE ASSET MANAGER AND A FIELD SERVICE MANAGER FOR THE PROPERTY. IT IS ONE WEBSITE FOR THE ENTIRE COUNTRY THAT ALLOWS PURCHASERS TO REVIEW PROPERTIES AND SEE WHAT BROKERS SEE. I SAID MANAGERS WILL BE ABLE TO LIST PROPERTIES ON A DAILY BASIS RATHER THAN ONCE A WEEK. -- ASSET MANAGERS WILL BE ABLE TO LIST PROPERTIES ON A DAILY BASIS RATHER THAN ONCE A WEEK. INCLUDES SOME HELPFUL RESOURCES AND SOME F.A.Q'S REGARDING HUD- REO AND YOU WILL ALSO FIND A LINK FOR CLIENTS TO FIND AN APPROVED REAL ESTATE BROKER AND HUD NEWS. WE HAVE ANOTHER POLL QUESTION FOR YOU. WHO IS RESPONSIBLE FOR PLACING THE BID AT A HOME AT THE WEBSITE? YOUR CHOICES ARE, THE BUYER, THE ASSET MANAGER, THE FIELD SERVICE MANAGER, OR THE REGISTERED REAL ESTATE BROKERAGE. AND IT LOOKS LIKE MOST OF YOU GOT THAT. IT IS THE REGISTERED REAL ESTATE BROKERAGE. NEXT I WILL SHOW YOU A TERRITORIAL MOUTH THAT BREAKS OUT WEDGE -- WHICH HAS JURISDICTION OVER WHICH STATES. I HOPE YOU CAN SEE THIS MAP. THIS BREAKS UP THE U.S. INTO FOUR SECTIONS. EACH COLOR OR A VARIATION OF COLOR BELONGS TO ONE HOMEOWNERSHIP CENTER. IF YOUR PRINTOUT IS IN COLOR, YOU CAN SEE THAT THE SANTA ANA HAWKE HAS THE WESTERN STATES THAT ARE IN YELLOW. THE DENVER HAWKE HAS ALL OF THE BLUE STATES. ATLANTA HAWK HAS THE PINK AND RED STATES. AND THE PHILADELPHIA HAWKE HAS THE GREEN STATES. THE COLOR VARIATIONS DIVIDE EACH SECTION ACCORDING TO SPECIFIC ASSET MANAGERS AND FIELD SERVICE MANAGERS, AS SHOWN ON THE NEXT SLIDE, WHICH IS A LIST OF ALL OF THE ASSET MANAGERS AND FIELD SERVICE MANAGERS. THIS LISTING SHOWS THE ICET MANAGERS AND THE FIELD SERVICE MANAGERS AND THE COLOR CODE CORRESPONDING TO THE MAP THAT WE JUST LOOKED AT, SO THAT YOU KNOW WHICH CONTACT COVERS WHICH AREAS. WE ARE GOING TO REVIEW SOME INFORMATION ABOUT THE CASE NUMBERS. NEW CASE NUMBERS ARE NEEDED FOR ALL WEBINAR -- ALL REO PROPERTIES. CASE NUMBERS WILL BE AUTOMATICALLY CANCELED IF NO ACTIVITY FROM SIX MONTHS OF THE LAST AUCTION DATE. AGAIN KAMAL LOANS REQUIRE A NEW CASE NUMBER TO BE ASSIGNED. YOU CANNOT USE THE ORIGINAL CASE NUMBER. MAKE SURE YOU INDICATE IN FHA CONNECTION THAT IS AN REO AND ENTER YES TO PREVIOUSLY SOLD REO AND PUT THAT IN AS THE CASE NUMBER. THIS WILL PREVENT THE ASSIGNING AND LOGGING TO AN APPRAISER. IT WILL ALSO MEAN THAT CERTAIN WILLS WILL NOT APPLY -- CERTAIN RULES WILL NOT APPLY AND IT WILL PREVENT ERRORS IN THE PROCESS. YOU WILL USUALLY BE MISSING THE LAST DIGIT IN THE CASE NUMBER. THE SYSTEM WILL TAKE AN "X"FOR EXAMPLE, X. CALL THE APPROPRIATE HAWK IF THE SYSTEM INDICATES THAT THE PREVIOUS CASE MEMBER DOES NOT EXIST. THE HAWKS WILL HAVE TO PRINCE DE -- REINSTATE THE PREVIOUS NUMBER. THIS NEXT SLIDE IS A SCREEN SHOT OF WHAT FHA CONNECTION LOOKS LIKE IN THE CASE

5 NUMBER ASSIGNMENT SCREEN. UNDER PROCESS TINTYPES, WHICH IS THE OVAL AT THE TOP OF THIS SLIDE, THERE ARE TWO CHOICES. REAL-ESTATE OWNED WITH APPRAISAL -- THIS IS WHEN THE CURRENT APPRAISAL BY WAS APPLIED BY THE ASSET MANAGER HAS EXPIRED AND THE LENDER NEEDS TO ORDER ANOTHER APPRAISAL. OR YOUR SECOND CHOICE, REAL ESTATE OWNED WITHOUT APPRAISALS. THIS IS WHEN THERE IS A CURRENT APPRAISAL COMPLETED FOR HUD AND THIS IS THE APPRAISAL BEING USED. AND YOU NEED TO SELECT THE CORRECT PROCESSING TYPE. NEXT TO THE TYPE OF CASE, WHICH IS THE LARGE OVAL ON THE SLY, SELECT FORWARD PURCHASE AND ALSO MARK PS FOR PREVIOUSLY SOLD AS RPO ASREO. IN THE NEXT SELECTION YOU WILL INPUT THE PREVIOUS CASE NUMBER, AND THIS IS INDICATED AT THE BOTTOM OF THE OVAL ON -- THE LARGE OVAL ON THIS SLIDE. NEXT WE WILL COVER SOME OF THE DIFFERENT REO SALES TYPES. PROPERTIES ARE MARKETED AND SOLD BASED ON THE CONDITION OF THE PROPERTY EXISTING AT THE TIME OF THE LISTING. EACH PROPERTY WILL BE OFFERED FOR SALE USING ONE OF THE FOLLOWING THREE APPROACHES. AT FIRST IS INSURABLE. PROPERTIES MARKETED AS IN CHERVIL ARE THOSE THAT MEET MINIMUM -- AS INSURABLE ARE THOSE THAT MEET MINIMUM REQUIREMENTS AT THE TIME OF APPRAISAL AND ARE IN "AS IT IS CLOSE QUOTE CONDITION WITH NO REPAIRS -- ARE IN AN AS-IS A CONDITION WITH NO REPAIRS NECESSARY. INSURABLE WITH REPAIR ESCROW IS A PROPER THE REQUIRES NO MORE THAN $5,000 FOR REPAIRS AND IS ELIGIBLE TO BE MARKET FOR SALE IN ITS AS-IS CONDITION WITH FHA MORTGAGE INSURANCE AVAILABLE, PROVIDED THE PURCHASERS ESTABLISH A CACHE ESCARRA TO ENSURE THE COMPETITION OF THE REQUIRED REPAIRS AT -- COMPLETION OF THE REQUIRED REPAIRS. PURCHASERS ARE PERMITTED TO INCLUDE IN THEIR MORTGAGE AN AMOUNT EQUAL TO 110% OF THE ESTIMATED COST OF THE REPAIRS. PROPERTIES THAT ARE NOT INSURABLE OUR PROPERTIES OFFERED FOR SALE IN THAT CONDITION AND THE COST OF REPAIRS IDENTIFIED BY THE APPRAISER TO MEET REQUIREMENTS ARE ESTIMATED TO EXCEED $5,000. SOME OF THESE PROPERTIES MAY QUALIFY ONLY FOR SECTION 203K FINANCING OR STREAMLINE "K." REFERRED TO MORTGAGEE LETTER FOR MORE SPECIFICS. I HAVE ANOTHER POLL QUESTION FOR YOU. WHAT ARE THE MAXIMUM AMOUNT OF REPAIRS ALLOWED FOR THE PROGRAM? IN YOUR SELECTIONS ARE, $2,000, $3,000, $4,000, OR $5,000. AND THE ANSWER TO THAT QUESTION, WHICH MOST OF YOU GOT WAS $5,000. NEXT, WE WILL BRIEFLY COVER REPAIRS. THE REPAIR ESCROW. FOR REPAIR AS CROWS, MAKE SURE YOU ARE IN COMPLIANCE WITH THE CHAPTER 5 OF THE FOR ESCARRA PROCEDURES -- ESCROW PROCEDURES AND MAKE SURE YOU ARE FOLLOWING MORTGAGEE LETTER AND , 4 IN SHOURD SALES WITH REPAIR ESCROWS. THE FUNDS MUST BE USED FOR THE REPAIRS SPECIFIED IN THE PROPER LISTING. ANY LEFTOVER FUNDS SHOULD BE APPLIED TOWARD THE PRINCIPLE. THE HUD REFORM MORTGAGEES ASSURANCE OF COMPLETION MUST BE USED TO DOCUMENT THE REPAIR ESCROW AND A LIST OF THE REPAIRS AND INCLUDED IN THE CASE BINDER. LENDERS MUST ENSURE ALL REPAIRS ARE SATISFACTORILY COMPLETED BEFORE DISPERSING THE ESCROW FUNDS AND COMPLETE THE ESCROW CLOSED OUT INFORMATION IN THE FHA CONNECTION. FOR HUD 92051, COMPLIANCE INSPECTION REPORT, OR FANNIE MAE'S 1004D MUST BE COMPLETED AFTER THE COMPLETION OF REPAIRS. AND YOU CAN REVIEW MORTGAGEE LETTER FOR THE USE OF FANNIE MAE'S FORM. LENDERS ARE NOT ALLOWED TO TAKE

6 THE INSPECTION FEE FROM THE ESCROW. THERE IS A $200 ADMINISTRATIVE /INSPECTION FEE AVAILABLE TO THE LENDER ON REPAIR ESCROWS TO COVER THE COST TO PAY FOR THE FINAL INSPECTION FEE. THE LENDER MUST REQUEST THE FEED FROM HUD AT CLOSING AND IT IS SEPARATE FROM LINE 5 CLOSING COSTS ON THE SALES CONTRACT PIPA -- A SALES CONTRACT. NOW WE ARE GOING TO COVER SOME CALCULATIONS FOR REO PROPERTIES AND I WILL TURN OVER THE PRESENTATION TO GINGER NICHOLAS. >> THANK YOU. GOOD MORNING, EVERYBODY. I WILL START GOING OVER SOME MAXIMUM MORTGAGE DECORATIONS FOR THE REO PROPERTIES. THE MAXIMUM MORTGAGE CALCULATION IS THE SAME AS THE STANDARD FOR THE APPRAISED VALUE OR THE PURCHASE PRICE. UNLESS A SPECIFIC DISCOUNT ARE GIVEN A, SUCH AS THE $100 DOWN PAYMENT. CLOSING COSTS AND PREPAID MAY NOT INCLUDE THE LOAN AMOUNT, UNLESS IT IS IN THE OF THE ORIGINAL LOAN AMOUNT. IN 203B REPAIRS, YOU MAY INCLUDE UP TO 110% OF THE MORTGAGE ABOUT YOU WITH A MAXIMUM ALLOWABLE OF $5,000. IT MUST BE STATED ON THE HUD- REO CONTRACT. IF THEY ARE NOT LISTED, THEN THEY ARE NOT VALID. WITH REGARD TO MORTGAGE YOUR LETTER , HERE IS A SAMPLE POPULATION FOR A HUD-REO WITH A $100 DOWN PAYMENT INCENTIVE. THIS CALCULATION SHOWS WHERE THE ESCROW AMOUNT CAN BE INCLUDED, BUT THE COST OF PREPAIDS CANNOT BE. YOU'LL ALSO NOTICE THAT IN THIS EXAMPLE, THE BAR WERE ALSO NEED TO BRING IN THE MIP. THE LOAN HAS EXCEEDED ITS MAXIMUM AMOUNT OF VALUE, BUT ONLY BY THE REPAIR ESCROW. YOU CAN REFER TO MORTGAGEE LETTER FOR THE AMOUNT OF THE ESCROW THAT IS INVOLVED. THIS IS A SAMPLE CALCULATION FOR A STANDARD HUD-REO PURCHASE WITHOUT THE $100 DOWN AND SALES INCENTIVES. IN THIS CALCULATION YOU CAN -- YOU WILL NOTICE THAT THE ESCROW AMOUNT CAN BE INCLUDED, BUT THE CLOSING COSTS AND PREPAIDS CANNOT BE ROLLED INTO THE CALCULATION. THE AS PARAMOUNT IS ADDED TO THE BASE LOAN AMOUNT PRIOR TO THE CALCULATING OF THE UFMIP AND THE MAXIMUM AMOUNT IS 110%. IT CAN BE FINANCED TO THE TOTAL LOAN AMOUNT. HERE IS AN EXAMPLE OF A STANDARD $100 DOWN PAYMENT CALCULATION WITHOUT THE REPAIR ESCROW. YOU WILL NOTE THAT IN MORTGAGEE LETTER , BUT OUR WORK IS ABLE TO FINANCE THE UP FRONT MIP BECAUSE THE MAXIMUM ALLOWED IS BASED ON THE APPRAISED ABOUT YOU, WHICH IN THIS SCENARIO IS HIGHER THAN THE PURCHASE PRICE. HERE IS A SAMPLE CALCULATION TO SHOW THE DIFFERENCE BETWEEN THE $100 DOWN PAYMENT INCENTIVE AND THE 3.5% DOWN PAYMENT. THE MAXIMUM BE A HOMEOWNER CAN RECEIVE IS 94,900, BECAUSE THE APPRAISED VALUE IS THE SAME AS THE PURCHASE PRICE. THE BAR WERE WILL BE -- WILL NEED TO BRING IN THE TOTAL OF THE UPFRONT MIP, THE $100 DOWN PAYMENT, AND THE CLOSING COSTS AND PREPAID. AND IN THE STANDARD 3.5% DOWN PAYMENT AMAPOLA THE TOTAL LOAN -- THE TOTAL LOAN AMOUNT IS FINANCED. ADDING THE TOTAL OF $3,320 DOWN PAYMENT FOR A TOTAL OF $5,700 REQUIRED AT SETTLEMENT. BASED ON THESE TWO SIMPLE COMPARISONS, EVEN THOUGH THE BAR WORK IS -- BORROWER IS REQUIRED TO BRING IN THE STANDARD MIP, THE BAR WERE STILL NEEDS TO BRING IN THE REQUIRED AMOUNT FOR THE PROGRAM. WE WILL LOOK AT APPRAISAL. PRIOR TO MARKETING THE HUD-REO PROPERTY, THE ASSET MANAGER WILL ORDER AN AS-IS APPRAISAL TO DETERMINE THE LIST PRICE TO MAKE -- TO BE THE FHA MINIMUM PROPERTY STANDARDS. THE UTILITIES

7 SHOULD BE ON AT THE TIME THE APPRAISAL IS CONDUCTED, UNLESS THERE ARE EXTENUATING CIRCUMSTANCES. IN THE EVENT THAT THEY ARE NOT, THE APPRAISER SHOULD NOTE THAT THE UTILITIES WERE NOT ON AND HE IS UNABLE TO VERIFY THEIR FUNCTIONALITY. IT IS THE LENDERS RESPONSIBILITY TO PROVIDE THE PROPERTY FUNCTIONING REPORT. YOU WILL NEED TO CALL THE ASSET MANAGER TO RECEIVE A COPY OF THE APPRAISAL. THERE IS NO CHARGE FOR THE APPRAISAL. PLEASE REFER TO MORTGAGE YOUR LETTER TO THOUSAND-27 AND TO DETERMINE WHEN TO ORDER AN APPRAISAL. MORTGAGEE LETTER , , AND COVER APPRAISAL UPDATE. THE APPRAISAL OF DATA MUST BE COMPLETED PRIOR TO THE 120 DAY EXPIRATION DATE OF THE ORIGINAL APPRAISAL REPORT. AS MENTIONED EARLIER, IF THE ORIGINAL APPRAISAL HAS NOT BEEN UPDATED, A 30-DAY EXTENSION TIMEFRAME IS PERMITTED FOR LOAN CLOSING. A LOAN WILL NOT BE ENSURED IF IT DOES NOT CLOSE WITHIN 150 DAYS OF THE APPRAISAL EFFECTIVE DATE. IF AN APPRAISAL IS ORDER DUE TO THE EXPIRATION OF THE ORIGINAL APPRAISAL OR MATERIAL DEFICIENCIES, THE LENDER MUST ORDER THE APPRAISAL AND THE BORROWER IS THEN ALLOWED TO PAY THE FEE. HOWEVER, A NEW APPRAISAL CANNOT BE ORDERED TO SUPPORT THE VALUE OF AN OVERBID ON THE PROPERTY. 50 BORROWER OVERBID ON THE LIST PRICE, THE BARACK -- BORROWER MUST PAY THE DIFFERENCE. IT MUST BE RECORDED ACCURATELY, THE NEW APPRAISAL, SO THAT IT CAN BE LOGGED. APPRAISAL LOGGING IS NOT REQUIRED FOR THE ORIGINAL APPRAISAL THAT WAS COMPLETED FOR HUD. BUT A NEW APPRAISAL IS ORDER, IT MUST BE LOGGED IN THE FHA CONNECTION. THE PROCESSING SITE CAN BE CHANGED TO UPDATE THE EXISTING CASE NUMBER IN THE ASSIGNMENT OF THE FHA CONNECTION. IT PROPERTY INSPECTION REPORT WILL BE PROVIDED, HOWEVER, AN INDIVIDUAL INSPECTION IS ALSO RECOMMENDED AND ENCOURAGED BY THE FHA. IF AN INDIVIDUAL HOME INSPECTION IS COMPLETED AND REVIEWED BY THE LENDER, THAN THE LENDER MUST REVIEW ANY -- DISCUSS ANY DISCREPANCIES WITH THE ASSET MANAGER. THE ASSET MANAGER IS THEN RESPONSIBLE TO ANY MODIFICATION OF THE CONTRACT. THE NEXT FEW SLIDES WILL COVER THE SALES CONTRACT REQUIREMENTS. THE SALES CONTRACT MUST BE SIGNED BY THE ASSET MANAGER ON HUD REFORM IF THE SALES CONTRACT HAS NOT BEEN SIGNED BY THE ASSET MANAGERS, LENDERS SHOULD NOT ACCEPTED AS A VALID CONTRACT. THE CONTRACT WILL SPECIFY THE SALES PRICE, THE FINANCING TERMS, THE AMOUNT OF THE CLOSING COSTS THEHUD WILL PAY AT SETTLEMENT, THE REAL ESTATE COMMISSION PAID, THE CLOSING DATE, AND ANY DISCOUNT ON THE SALES PRICE THAT WILL BE PROVIDED AT SETTLEMENT. IN ORDER TO QUALIFY FOR FHA- INJURED FINANCING, THE FIRST BLOCK ONLINE FOR OF THE SALES CONTRACT, AS WELL AS THE APPLICABLE FHA PROGRAM BLOCKED 203B, 203B WHICH REPAIR ESCROW, 203K MUST BE CHECKED. THE AMOUNT ON LINE FIVE OF THE SALES CONTRACT REPRESENT ACTUAL BAR WORK, FINANCING, AND CLOSING COSTS TO BE PAID ON BEHALF OF HUD. ONLY THE ACTUAL AMOUNT AT CLOSING COSTS WILL BE PAID BY HUD AT SETTLEMENT. THE BAR WERE BORROWER WERE WILL NOT BE CREDITED -- THE BORROWER WILL NOT BE CREDITED FOR ANY PREPAYMENTS. THE ONLY EXCEPTION TO THIS POLICY IS THE GOOD NEIGHBOR NEXT DOOR PROGRAM. THE DISCLOSURE FOR YOUR PROTECTION GET A HOME INSPECTION IS REQUIRED AND MUST BE INCLUDED IN THE CASE BINDER. HERE IS A SAMPLE COPY OF A HUD- REO CONTRACT. IT MUST BE COMPLETED

8 ON THIS FORM TO BE CONSIDERED AN ACTUAL HUD-REO PROPERTY. AND HERE IS A COPY OF THE $100 DOWN PAYMENT INCENTIVE OF THE ADDENDUM. THIS MUST BE COMPLETED AND FULLY EXECUTED BY THE ASSET MANAGER AND ATTACHED TO THE HUD -- REO CONTRACT FOR IT TO BE CONSIDERED VALID. INVESTORS ARE ELIGIBLE FOR FHA FINANCING UNDER SECTION 2 03B ONLY. INVESTORS ARE NOT ELIGIBLE FOR 203K FINANCING. THE MAXIMUM ALLOWABLE IS 75% FOR ONE UNIT PROPERTIES, 85% FOR TWO, THREE, AND 4-EUNA PROPERTIES. -- FOUR-UNIT PROPERTY. AND NOW I WILL TURN IT OVER TO CHRISTINA CAN IN TO COVER THE GOOD NEIGHBOR NEXT DOOR PROGRAM. -- CHRISTINA CHANNING TO COVER THE GOOD NEIGHBOR NEXT DOOR PROGRAM. >> THANKS, ETTINGER. GOOD MORNING, EVERYBODY. WE ARE GOING TO COVER THE GOOD NEIGHBOR NEXT DOOR PROGRAM NEXT. UNDER THIS PROGRAM, HUD OFFERS CERTAIN PROPERTIES IN REVITALIZATION AREAS AT A 50% DISCOUNT TO FULL-TIME ELIGIBLE TEACHERS, LAW ENFORCEMENT OFFICERS, FIREFIGHTERS, AND EMT'S TO MEET OTHER REQUIREMENTS OF THE PROGRAM. THE PURPOSE OF THE PROGRAM IS TO STRENGTHEN COMMUNITIES BY ENCOURAGING PROFESSIONAL PARTICIPANTS TO LIVE IN THE COMMUNITY WHERE THEY WORK. HUD FORM 9549 A-E IS AN EMPLOYMENT VERIFICATION FORM. IT MUST BE FULLY EXECUTED AS AN ADDITIONAL ADDENDUM TO THE CONTRACT. THESE CAN BE FOUND ON HUD CLIPS. YOU CAN SEARCH FOR THEM BY SEARCHING FOR HUD FORM QUALIFYING HOMES ARE RESTRICTED TO SPECIFICALLY DESIGNATED THE OF SINGLE-FAMILY HOMES, TOWN HALLS, OR CONDOMINIUMS THAT ARE LOCATED WITHIN THE REVITALIZATION AREAS. IN ADDITION, THE HALL MUST BE HUD ACQUIRED AND CANNOT BE FOR ANY OTHER PURPOSE, SUCH AS V.A. FORECLOSURE HOMES. THEY ARE SOLD AS-IS WITH NO WARRANTY. REVITALIZATION AREAS ARE HUD DESIGNATED GEOGRAPHIC AREAS AS AUTHORIZED BY CONGRESS TO PROVIDE A REVITALIZATION TO EXPAND HOMEOWNERSHIP PROPER TO TEASE. THE CRITERIA FOR THE DESIGNATED AREAS RELATE TO HOUSEHOLD INCOME, HOME OWNERSHIP RATE, AND FHA INSURED MORTGAGE FORECLOSURE ACTIVITY. ELIGIBLE PROPERTIES ARE LISTED IN FALL EXCLUSIVELY OVER THE INTERNET BY REAL-ESTATE BROKER PARTICIPATING IN HUD PROGRAMS. PROPERTIES ARE EXPERTIZE BY HUD'S ASSET MANAGERS AT OUR SPECIALLY MARKED AS ELIGIBLE FOR THE PROGRAM. GENERAL FOGH -- QUALIFICATIONS FOR THE GOOD NEIGHBOR PROGRAM ARE, THEY MUST BE EMPLOYED FULL TIME, AND THEY MUST ALSO CERTIFY THAT THEIR GOOD FAITH INTENTION IS TO REMAIN EMPLOYED IN A FULL- TIME POSITION FOR ONE YEAR FROM PURCHASE. HE OR SHE SHOULD NOT ATTEMPT TO PARTICIPATE IN THE GOOD NEIGHBOR NEXT DOOR PROGRAM IF THEY KNOW IN ADVANCE THAT THEY WILL NOT BE EMPLOYED FOR AT LEAST ONE YEAR. ERNEST MONEY WILL BE REQUIRED WITHIN 48 HOURS OF A SUCCESSFUL BRIDGEPOINT AND SALES -- A SUCCESSFUL BID AND SALES CONTRACT HAS BEEN EXECUTED. THE BUYER MUST CERTIFY THAT HE OR SHE WILL BE LIVING IN THE HOME AS A PRIMARY RESIDENCE AT THAT TIME OF PURCHASE AND EACH YEAR AFTER THAT. IN ADDITION, THE BAIR AND HIS OR HER SPOUSE MUST NOT HAVE OWNED A RESIDENTIAL PROPERTY UNDER THE GOOD NEIGHBOR NEXT DOOR PROGRAM OR UNDER THE PREVIOUS OFFICER NEXT DOOR OR TEACHER NEXT FOUR PROGRAMS. NOW WE WILL GO TO A FULL QUESTION. WHAT IS THE REQUIRED OCCUPANCY FOR THE GOOD NEIGHBOR NEXT DOOR PROGRAM? OK, THE ANSWER IS, 36 MONTHS. MORE GENERAL QUALIFICATIONS. THE BUYER MUST AGREE TO

9 OWN AND TO LIVE IN THE HOME AS HIS OR HER SALT -- SEOUL RESIDENTS FOR THREE YEARS AFTER MOVING IN. THE BUYER HAS 30, 90, OR 180 DAYS TO MOVE INTO THE HOME THAT THEY HAVE PURCHASED, DEPENDING ON HUD'S DETERMINATION OF THE REPAIRS NEEDED, IF ANY. THE BUYER IS RELEASED FROM ALL OBLIGATIONS UNDER THIS PROGRAM AT THE END OF THE 36TH MONTH FOLLOWING THE START DATE. THE BUYER IS ALSO ELIGIBLE TO KEEP ALL OF A PROFIT FROM THE SALE OF A HOME LAST THE FIRST MORTGAGE BALANCE SO LONG AS THE 36 MONTHS OCCUPANCY TIME FRAME HAS BEEN MET. ANNUAL CERTIFICATIONS ARE REQUIRED FOR THE THREE-YEAR MARKET -- OCCUPANCY TRADE. HUD CAN CONDUCT CHECKS TO MAKE SURE THAT IT IS THE SOLE RESIDENT AT ANY TIME DURING THAT THREE YEARS BORROWER -- THAT THREE YEARS. IF NEED BORROWER LEAVES HIS EMPLOYMENT FOR ANY REASON DURING THE MANDATORY THREE-YEAR RESIDENT THE TIME FRAME, HE MUST CONTINUE TO LIVE UP A HOME FOR THE FULL 36 MONTHS. HUD FORM 9549 A MUST BE COMPLETED AS AN ADDITIONAL ADDENDUM EVERY YEAR FOR THREE YEARS WITH THE ANNUAL CERTIFICATION. LAW ENFORCEMENT OFFICERS MUST BE EMPLOYED FULL-TIME BY LAW EMPLOYMENT -- LAW ENFORCEMENT AGENCY. THE OFFICE MUST BE SWORN TO UPHOLD AND MAKE ARRESTS FOR VIOLATIONS OF FEDERAL, STATE, TRIBAL, COUNTY, TOWNSHIP OR MUNICIPAL LAW. HE OR SHE MUST SERVE THE AREA WHERE THE HOME IS LOCATED. TEACHERS MUST BE EMPLOYED FULL- TIME BY PUBLIC SCHOOLS, PRIVATE SCHOOL, OR FEDERAL, STATE, COUNTY, OR MUNICIPAL EDUCATION AGENCY AS A STATE CERTIFIED CLASSROOM TEACHER OR ADMINISTRATOR IN GRADE PRE-K THROUGH 12. THE PUBLIC OR PRIVATE SCHOOL WHERE THE TEACHER IS EMPLOYED MUST BE IN THE NORMAL COURSE OF BUSINESS AND SERVE THE STUDENTS FROM THE AREA WHERE THE HOME IS LOCATED. PLEASE REFER TO THE PREVIOUS THE REFERENCE WEBSITE FOR THE FORMS REQUIRED FOR THE VERIFICATION OF EMPLOYMENT. FIREFIGHTERS AND EMT'S MUST BE EMPLOYED FULL-TIME BY THE FEDERAL GOVERNMENT, STATE GOVERNMENT, A UNIT OF GENERAL LOCAL GOVERNMENT, OR AN INDIAN TRIBAL GOVERNMENT. THEY CANNOT BE A VOLUNTEER OR PART- TIME. THEY ALSO CANNOT BE PRIVATE EMERGENCY RESPONDERS OR CONTRACTORS. NOW WE WILL HAVE ANOTHER POLL QUESTION. WHICH OF THE FOLLOWING DOES NOT QUALIFY FOR THE GOOD NEIGHBOR NEXT DOOR PROGRAM? YOUR OPTIONS ARE, POLICE OFFICER, TEACHER, EMT VOLUNTEER, OR FIREFIGHTER. WE HAD 100% ON THAT ONE. THE CORRECT ANSWER IS EMT VOLUNTEER. THE BORROWER MUST BE A FULL-TIME EMPLOYEE AND NOT A VOLUNTEER. NOW WE WILL BRIEFLY COVER EARNEST MONEY. ERNEST MONEY IS REQUIRED FOR EVERY HUD SALE AND A BROKER IS REQUIRED TO HAVE THE ARTIST MONEY IN HAND BEFORE SUBMITTING AN ELECTRONIC DATA. -- THE EARNEST MONEY IN HAND BEFORE SUBMITTING AN ELECTRONIC DATA -- BID. AN ADDENDUM OF ACCEPTABLE REFUND IS GIVEN TO THE BORROWER UPON EXECUTION OF THE CONTRACT. EARNEST MONEY IS NO LESS THAN $500 AND NO MORE THAN $2,000. CONTRACT EXTENSIONS ARE AVAILABLE FOR A FEE. THE ASSET MANAGER MUST BE CONTACTED WITH QUESTIONS. NEXT WILL COVER THE GOOD NEIGHBOR NEXT DOOR CALCULATIONS. THE GOOD NEIGHBOR NEXT DOOR PROGRAM ALLOWS ELIGIBLE TO BID ON -- ELIGIBLE BORROWER TO BID ON PROPERTIES. FOR EXAMPLE, IF A HUD IS LISTED FOR $100,000, A QUALIFIED APPLICANT CAN BUY IT FOR $50,000. IF THE HOME OF THE BUYER WANTS TO PURCHASE NEEDS REPAIRS, THEY MAY USE THE 203K PROGRAM AND THE STREAMLINED "K" MORTGAGE PROGRAMS. THIS SLIDE SHOWS A TEBOW

10 CALCULATION, WHICH IS ALSO IN MORTGAGEE LETTER TO THOUSAND THIS SLIDE SHOWS SAMPLE CALCULATIONS, WHICH ARE ALSO IN MORTGAGEE LETTER WE WILL LEAVE THAT UP FOR YOU. NEXT WE ARE GOING TO COVER THE GOOD NEIGHBOR NEXT DOOR SUPPORT AND A SECOND MORTGAGE. WHEN BUYERS CLOSE ON THEIR HOME, THEY SIGN A SECOND NOTE AND MORTGAGE, WHICH WILL BE FILED RIGHT AFTER THE FIRST PAIR DEPENDING ON THE CIRCUMSTANCES, HUD COULD DEMAND REPAYMENT OF THE DISCOUNT AMOUNT IN FOLBAUM OR ON A PRO RATED BASIS. THIS MEANS THAT THE BORROWER WHO WOULD HAVE TO REPAY 136, OF THE DISCOUNT HE RECEIVED FOR EACH MONTH THAT HE DIDN'T OCCUPY THE HOME. -- 1/36 OF THE DISCOUNT HE RECEIVED FOR EACH MONTH THAT HE DID NOT OCCUPY THE HOME. CRIMINAL PROSECUTION AND CONVICTION FOR FRAUD AND ABUSE RELATING TO A GOOD NEIGHBOR NEXT DOOR PROGRAMS COULD RESULT IN A FINE AS MUCH AS $250,000 AND/OR TWO YEARS IN FEDERAL PRISON FOR ANY INDIVIDUAL WHO KNOWINGLY COMMITTED FRAUD AS PART OF THE TRANSACTION. THE HONOR OF A PROPERTY WHO BOUGHT THE PROPERTY THROUGH THE PROGRAM AND IS STILL UNDER THE OCCUPANCY TIME FRAME MAY BE ABLE TO REFINANCE THE FIRST MORTGAGE. A REQUEST WILL NEED TO BE SENT TO HUD FOR APPROVAL, TO SUBORDINATE ITS SECOND MORTGAGE TO THE NEW FIRST MORTGAGE. HUD WILL AGREE TO SUBORDINATE IF ALL APPLICABLE AND RESTRICTIONS ARE MET. QUESTIONS ABOUT REFINANCING AND SUBORDINATION CAN BE DIRECTED TO THE HUD CONTRACTOR, DEVAL, LLC. CONTACT INFORMATION WILL BE SHOWN IN ONE OF THE FOLLOWING SLIDES. IF A BORROWER PROPERTY USING ONE OF THE PROGRAMS NEED TO SELL THE PROPERTY BEFORE THE EXPIRATION OF THE THREE YEARS -- THIS IS ONLY ALLOWED FOR JOBBER INDICATION OR FAMILY COMPOSITION CHANGES, OR REFINANCE -- AND PAY OFF OR SUBORDINATION OF YOUR SECOND MORTGAGE MAY ALSO BE REQUESTED FROM DEVAL. THIS CONCLUDES THE PRESENTATION AND NOW WE WILL HAVE A FEW POLL QUESTIONS AND WE WILL GIVE THE ANSWERS THIS TIME. THE FIRST QUESTION, IS A NEW CASE NUMBER REQUIRED ON A HUD- REO PURCHASE? THE SECOND QUESTION -- OK, IT LOOKS LIKE WE HAVE EVER WON SUBMIT ON THE FIRST QUESTION. THE ANSWER IS YES. YOU ALWAYS MUST HAVE A PREVIOUS CASE MEMBER TO ORDER THE NEW ONE. THE SECOND POLL QUESTION IS, WHAT IS THE VALIDITY TIMEFRAME FOR AND REO APPRAISAL REPORT? OK, THE ANSWER IS "B," ALTHOUGH THE LENDER MAY BE ABLE TO EXTEND FOR ADDITIONAL 30 DAYS. THE THIRD POLL QUESTION IS, THE UTILITIES ARE NOT REQUIRED TO BE ON AND IN WORKER IN ORDER PRIOR TO CLOSING. IS THAT TRUE OR FALSE? THE ANSWER IS FALSE. THEY SHOULD BE VERIFIED AS WORKING ARE THE APPRAISER OR BY A REPUTABLE FIRM IF THE APPRAISER IS UNABLE TO VERIFY. THE NEXT POLL QUESTION, DOES HUD PROVIDE A HOME WARRANTY FOR THE HUD-REO PROPERTY? YES OR NO? MOST EVERYONE GOT THAT RIGHT. THE ANSWER IS, NO, ALL HUD-REO HOMES ARE SOLD AS IS. AND THE LAST POLL QUESTION, IF THE PURCHASE PRICE IS GREATER THAN THE APPRAISED VALUE, THE DIFFERENCE CAN BE ROLLED INTO THE LOAN. TRUE OR FALSE? IN ANSWER IS FALSE, THE BORROWER MUST PAY THE DIFFERENCE. THE LAST FEW SLIDES WILL GIVE YOU SOME RESOURCES AND ALL THE MORTGAGEE LETTERS BE COVERED IN THE PRESENTATION. AS I TALKED ABOUT BEFORE, THIS IS THE ADDRESS AND CONTACT INFORMATION IT IF YOU'RE IN NEED OF REQUESTING A SUBORDINATION AGREEMENT OR OPPOSITION TO REFINANCE ON THE GOOD NEIGHBORHOOD NEXT DOOR PROGRAM. THESE ARE SOME HELPFUL WEB SITES. ON

11 BEHALF OF THE DENVER HOME OWNERSHIP CENTER, PROCESSING AND UNDERWRITING DIVISION, THANK YOU FOR PARTICIPATING IN TODAY'S REO WIDENER PRESENTATION. YOU WILL BE RECEIVING AN FROM US THIS AFTERNOON WITH A LIVING TO A SURVEY. PLEASE TAKE TIME TO FILL OUT A SHORT SURVEY SO THAT WE CAN IMPROVE OUR FOR THE FUTURE. -- OUR WEBINARS FOR THE FUTURE. AND LASTLY, OUR DISCLAIMER. >> WE WILL STAY ON MAYBE 10 MORE MINUTES TO ANSWER ANY LAST- MINUTE QUESTIONS THAT YOU MAY HAVE. GO AHEAD AND SUBMIT THOSE QUESTIONED IF YOU HAVE THEM.