MAHMA Dan Burke Director, Multifamily Midwest Region Detroit, Michigan May 3, 2016

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 2 MFH’s historic organizational model did not efficiently and effectively serve customers and stakeholders  MFH had a uniquely complex field model– 17 field regions and 54 locations – leading to inconsistent operations and customer service, while inhibiting risk management.  Before MFT, MFH experienced over a 4x workload imbalance across hubs in Production, and 3x in Asset Management, leading to long queues and slower processing times in some markets while staff remain underutilized in others.  MFH’s generalist model that lacked the efficiency of role specialization. Stakeholders received service from multiple points of contact.

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 3 Multifamily for Tomorrow (MFT) has four components Workload sharing Underwriter model and risk-based processing in Production Account Executive and Troubled Specialist model in Asset Management Streamlined organizational structures in HQ and field

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 4 From...To… The Underwriter model adopts industry best practices to focus on the highest risk applications, and avoid handoffs and re-work  Highly variable customer service, with multiple contact points through the application process  Consistent point of contact with end-to-end knowledge of the application throughout the review process  “One size fits all” processing (applications segmented by program) –Equal time dedicated and same approach used for low-risk and high-risk applications –Applications randomly assigned to staff teams, without regard for level of expertise/experience  Risk-based processing (applications segmented by risk and complexity) –Time and approach for processing varies by application risk/complexity –Highest risk/most complex applications assigned to most experienced staff –Simpler/less risky deals require less review and often a single UW  Multiple owner underwriting approach, with several hand-offs and duplication/ re-work between various disciplines  Underwriting model, with a single application owner who pulls in technical expertise/assistance and reviewers as needed 2 2

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 5 From...To…  PMs struggle to manage breadth and complexity of their portfolios –>120 distinct asset management activities –Insured, assisted,and mixed-finance assets –Wide spectrum of performance (troubled, potentially troubled, not troubled)  Inconsistent roles across Hubs  Specialized, consistent roles will enhance effectiveness, efficiency and risk management –Account Executives conduct basic servicing of non-troubled assets –Senior Account Executives conduct servicing of more complex non- troubled and/or potentially troubled assets –Troubled Asset Specialists focus on remediating troubled assets High variability in workload distribution, ranging from 25 to 100+ assets per PM  Consistent, smooth distribution of assets across Account Executives and Troubled Asset Specialists PMs still conduct low-value work, which detracts from time spent on critical tasks  Low-value work eliminated to allow focus on complex or troubled assets  Select asset management activities shifted to lenders and/or PBCAs The Account Executive model will deliver better risk management and clearer, more manageable roles 3 3

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 6 From...To… Streamlined HQ and field organizational structures will enable and support the “way we work” changes  Fragmented, unwieldy organization structure –Unmanageable spans of control at HQ, with 17 Hubs and 6 programmatic HQ functions reporting to DAS –Thin, inconsistent spans of control in the field (e.g., 1 manager over 2 staff), creating unnecessary layers and stifling employee engagement  Streamlined organization structure –5-region model improves HQ/field alignment, communication, and aligns with federal regions –More robust field spans of control improves field autonomy and empowerment  Inconsistent, sub-scale operations across 17 Hubs and 54 locations  New structure encourages consistent program delivery while ensuring all locations have sufficient workload to operate at scale ▪ Asset Management employees may choose to remain in existing offices nationwide based on the Congressionally-approved plan. ▪ Future hiring for MFH will be targeted towards the new Regional Center and Satellite offices. ▪ Asset Management employees may choose to remain in existing offices nationwide based on the Congressionally-approved plan. ▪ Future hiring for MFH will be targeted towards the new Regional Center and Satellite offices. 4 4

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 7 77 The new Multifamily Headquarters model has four primary offices Merit staffing promotions Oversees policy supporting Multifamily’s mortgage insurance programs. This office is formerly known as the Office of Asset Development. Oversees quality oversight and risk management of Multifamily assets. This office incorporates the former offices of Asset Management, Housing Assistance and Grants Administration, Housing Assistance Contract Administration Oversight, and the Lender Quality and Monitoring Division. Supports recapitalization and preservation for complex affordable housing programs such as 236, 202 Direct Loan, and the Rental Assistance Demonstration. This office was formerly known as the Office of Affordable Housing Preservation (OAHP). This is a new office that provides dedicated support to Multifamily's field offices while facilitating improved human capital, performance management, and procurement activities across the organization

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 8 Each Region will have 1 Regional Center and 1 or 2 Satellite offices. Asset Management staff have the option to remain in existing locations Northeast ▪ New York ▪ Boston ▪ Baltimore ▪ Buffalo ▪ Charleston ▪ Hartford ▪ Manchester ▪ Newark ▪ New York ▪ Philadelphia ▪ Pittsburgh ▪ Providence ▪ Richmond ▪ Washington Southeast ▪ Atlanta ▪ Jacksonville ▪ Birmingham ▪ Columbia ▪ Greensboro ▪ Jackson ▪ Knoxville ▪ Louisville ▪ Miami ▪ Nashville ▪ San Juan Midwest ▪ Chicago ▪ Minneapolis ▪ Detroit ▪ Cleveland ▪ Columbus ▪ Indianapolis ▪ Milwaukee Southwest ▪ Fort Worth ▪ Kansas City ▪ Albuquerque ▪ Des Moines ▪ Houston ▪ Little Rock ▪ New Orleans ▪ Oklahoma City ▪ Omaha ▪ San Antonio ▪ St. Louis ▪ Tulsa West ▪ San Francisco ▪ Denver ▪ Anchorage ▪ Boise ▪ Honolulu ▪ Las Vegas ▪ Los Angeles ▪ Phoenix ▪ Portland Regional Center: Satellite Office(s): Asset Management: Wave/ Region: 12345

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 9 Through MFT, we are moving to 5 streamlined Regions I 6 I

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 10 Midwest Region Leadership Dan Burke Director, Multifamily Midwest Region Paul Woxland Director, Minneapolis Asset Management Division/ Satellite Office Coordinator Ryan LaFollette Operations Officer Debbie Gray Director, Chicago Asset Management Division Mary Anderson Director, Production Division Barbara Chiapella Director, Detroit Asset Management Division/ Satellite Office Coordinator

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 11 Midwest Region Production Mary Anderson Director, Production Division Scott Greuel Chicago Underwriting Branch Chief Christopher Nielson Detroit Underwriting Branch Chief John Schneider Chicago Technical Specialist Branch Chief Eric Golicz Detroit/ Minneapolis Technical Specialist Branch Chief Stephen Ott Chicago Underwriting Branch Chief Ray Stiles Minneapolis Underwriting Branch Chief

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 12 Midwest Region Asset Management (1 of 2) Raynold Richardson Director, Production Division Edward Peal Account Executive Branch Chief Gail Burks Account Executive Branch Chief Sylvia Davis Asset Resolution Specialist Branch Chief Gwendolyn Thomas Account Executive Branch Chief Debbie Gray Director, Chicago Asset Management Division Gerald Smith Asset Resolution Specialist Branch Chief Paul Woxland Director, Minneapolis Asset Management Division Joseph Thibedeau Account Executive Branch Chief Laura Simpson Asset Resolution Specialist Branch Chief Elterro Carroll Account Executive Branch Chief

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 13 Midwest Region Asset Management (2 of 2) Mark Dominick Account Executive Branch Chief Randolph Wilson Account Executive Branch Chief Sharon Seaborn Account Executive Branch Chief Susie Sapilewski Asset Resolution Specialist Branch Chief Joshua Osborne Account Executive Branch Chief Barbara Chiapella Director, Detroit Asset Management Division John Schuster Account Executive Branch Chief

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 14 Key HUD Multifamily Policy Updates *Section 8 Renewal Guide *Multifamily Accelerated Processing Underwriting Guide *Section 225 Enforcement Provisions *Section 8bb Transfer of Budget Authority *Energy Portfolio Manager 1414

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* Create a Portfolio Manager® Account 15 portfolio-manager

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* Login & Add Building Information 16

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* Enter Utility Bills **For each monthly utility bills, the following is needed: Start Date, End Date, Use (kWh, therms, kGal), Cost ($) 17

*PRE-DECISIONAL, PROPRIETARY AND CONFIDENTIAL* 18 Midwest Region Mailboxes and Website We encourage all routine servicing requests and correspondence which has been traditionally mailed be submitted via ed to: Chicago (Chicago and Indianapolis) (Servicing (Grant (Monthly Accounting Detroit (Detroit and Ohio) (Servicing (Grant (Monthly Accounting Minneapolis (Minneapolis and Wisconsin) (Servicing (Grant (Monthly Accounting Please visit the Midwest website at: