WORKING SMARTER

THROUGH RESTRUCTURINGAND BEYOND

WORKING SMARTER1If you see a light at the end of the tunnel, its the light of an oncoming train.--Robert Lowell2Now we know.

3HUD RESTRUCTURINGGoals of restructuring:

Create sustainable streamlined infrastructure.

Deliver more consistent service to industry.

4Now What?Very simple.change how WE do business or reap the consequences. What consequences?Delivery time will only worsen during period of implementation.Fail to retain quality borrowers who have come to the program due lack of alternate financing in recent years.

5Whats The Slight Edge?Written by Jeff OlsonImpact of doing little things consistently; andImpact of not doing little things consistentlySlow down to go fast. If you didnt have time to do it right the first time, when will you have time to do it a second time?Creates a ripple effect for better or worse.

6FIRST A RIPPLE, THEN A WAVE

7RESULTS OF HABITS

Source: The Slight Edge, Jeff Olson8What are you willing to do?OriginatorsUnderwriters, Analysts, & ProcessorsMarket AnalystsAppraisersEnvironmental FirmsAEC FirmsClosersLenders CounselBorrowers Counsel

9What will we ask HUD to do?

Whats Working and Whats Not?

Suggestions & issues to be discussed with HUD establish parking lot of issues to address with HUD.

10What will we ask HUD to do?Intake process Make sure all disciplines receive their information.

Review process let the lender know if further reviews are on-going as comments are received.

Work with us to expedite review periods what can we do to help. Extension fees are costly.

Work with us on when closing packages can be submitted. Holding up until RL Amendment approved causes costly extension fees.

Be reasonable and/or help us understand why so many sets of closing documents are required in some offices. 11What will HUD ask us to do?Heres a start from Jacksonville.Narrative - include comments from Concept Meeting.Application on CD break it up do not include on one CDSubmit Wheelbarrow on CDDeficiency Responses 1 Original package & 4 Copies mailed. Submitting Deficiency Responses via Email is not recommended.Reserves Appraiser to explain differences in market vs. project.12What will HUD ask us to do contd

NOI use market NOI for 2264 to support Criterion 3. Difference in project NOI, address in narrative & use that amount for Criterion 5.Suggested Application Format - Jacksonville has suggested formats for application submission - expedite distribution.Flood Zones If in a flood zone, submit the flood plain elevations.Onsite Contacts Include name, phone # & email of onsite contact in narrative.132013 SMAC COMMUNITY COVENANTGoal of this session is to get us talking.

- what needs to change- What are we willing to do

Continuing dialogue of how we create a positive Ripple Effect.14Sheet1

DaysCompounded1$0.012$0.023$0.044$0.085$0.166$0.327$0.648$1.289$2.5610$5.1211$10.2412$20.4813$40.9614$81.9215$163.8416$327.6817$655.3618$1,310.7219$2,621.4420$5,242.8821$10,485.7622$20,971.5223$41,943.0424$83,886.0825$167,772.1626$335,544.3227$671,088.6428$1,342,177.2829$2,684,354.5630$5,368,709.1231$10,737,418.24Source: The Slight Edge, Jeff Olson

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