MULTIFAMILY CLOSING & SERVICING Midwest Lenders 15th Annual Conference - Chicago 8:30-10:30 a.m. Friday, September 7th, 2018

Tiffany Baymiller - Moderator & Panelist FHA Closing Manager at PGIM Real Estate Finance 6+ Years Experience (FHA) MBA FHA Closing Committee Member 20+ Years Experience (Closing Role) Prior Life - Director of a National Commercial Title Insurance Division Small Business Owner of a Title Insurance Agency

Matt Towey - Panelist Attorney-Advisor, Office of Regional Counsel (Chicago, IL) Legal Honors Program (2009) Clients: Multifamily, Residential Care Facilities, Community Planning & Development and Recapitalization Previous Law Firm Practice (Applegate & Thorne- Thomsen) Returned to HUD in 2015

Patrick Reardon - Panelist Associate at Vorys, Sater, Seymour & Pease LLP Commercial Real Estate Focus – Multifamily Housing Represents Lenders and Owners (Financing Transactions for Multifamily, Senior Housing, Fannie Mae and USDA) Specializes in LIHTC and Tax-Exempt Bond Transactions

John Schneider - Panelist Technical Support Branch Chief – US Department of HUD (Chicago, IL) Supervises Three Appraisers, Four Construction Analysts and One Closing Coordinator 24 Years with HUD (Milwaukee & Chicago Offices) Certified General Appraiser Licensed by the State of Wisconsin SRA Designation from the Appraisal Institute (Society of Real Estate Appraiser) since 1983.

Tommy Nance - Panelist Director, Asset Management PGIM Real Estate Finance Manages a Team of 11 Real Estate Professionals FHA Portfolio (Hospitals, Multifamily and Healthcare) Construction Portfolio (General Account, FHA, Fannie Mae and Freddie Mac) Vice Chair of MBA’s FHA Servicer’s Subcommittee

Closing & Servicing Discussion Agenda Legal Process, Best Practices Closing Process, Best Practices & HOT Topics Secret Box Servicing Process, Best Practices & HOT Topics Q&A with Panelists

Legal Process & Best Practices

Legal Beginning of the Transaction Process What happens during … Beginning of the Transaction Process HUD Firm Commitment Issuance Transmitting Instructions Loan Package Comments Closings

Closing Process, Best Practices & HOT Topics

Closing Beginning of the Transaction Process How to handle … Beginning of the Transaction Process HUD Firm Commitment Issuance Amendments Repairs & Construction Documents Helpful Hints for Successful Closings

Closing For initial and final closing checklists and instructions on post-closing document distribution, please visit HUD’s website at: https://www.hud.gov/states/shared/working /r5/production Helpful Hints for a Successful Closing: Point out timing issues upfront Utilize HUD Website Response Timing Checklist Loan Amount Criteria Wage Determinations Thank Your Peers!!

HOT Topics Rate Lock & Initial Submission Subordinations/SNDA 221(d)(4) – Timing Issues Heavy 223(f)’s LIHTC & Bond Documents Deferred Developer Fee/Surplus Cash Note Regulatory Agreement HUD’s Streamline Process & Communicating with Other HUD Offices

Secret Box

Servicing Process, Best Practices & HOT Topics

Servicing Key Differences Between 223(f) and 221(d)(4) Let’s talk about … Key Differences Between 223(f) and 221(d)(4) Servicing a Construction Loan HUD Construction Inspectors Draw Meetings Common Issues Tax Credit Complexities Final Endorsements TPAs

HOT Topics Delegated Authority for Repair Escrows Construction Inspectors

Servicing KEY HUD (Midwest) INFORMATION: Reserve for replacement requests are sent to the following mailbox:  chi.incoming@hud.gov Non-critical repair escrow advance requests are sent to the following mailbox: midwest.ncescrow@hud.gov   Contact information for HUD’s contract inspection firm: Quinton Richardson, Project Lead    Etegra   1121 Olivette Executive Parkway, Suite 100   Olivette, MO 63132  o: 314-219-4485  | m: 314-261-8879   www.etegra.com  

Questions & Answers with Panelists

Thank you!