Seller Exit Strategies: Latest on the RD MFH Mortgage Maturity (MM) data When you use Data from RD’s Exit Strategy data base to consider potential projects to purchase First - New FY 2017 RD data - MM still bad, but the worst is 10 years later. Second - Key RD process questions that could affect your actions: Why the big difference with the new data? Is this version right? What happens with 30 yr. term, 50 yr. am loans (after 95)? What if “damage settlement” loan matures before RUC’s expire? Will MM projects receive priority for funding - MPR, RA, 515 or 538? Can prepayment prevention tools be used & prioritized to avert MM?

RD MFH Mortgage Maturity (MM) data and consideration of its affect on a portfolio Key owner/operator questions: What and where are my restrictions (project based or property based) Where are my projects with MM? (multiple, single loans or cost items) When to talk to RD about options? (portfolio solutions or one off) Preservation strategies Exit strategies Capital needs and resource availability

Mortgage Maturity and Exit strategies Key preservation challenges Mortgage Maturity and Exit strategies For owners ready to go – no tenant obligation is a good thing – Loan balance reaching zero also good – No RA might be a problem or opportunity. For tenants, mission based owners, purchasers, rural communities and advocates – No tenant subsidy or protections is a big worry. Key question: What does it take to keep it or get it into the hands of an owner who is mission based?

Key Exit/Preservation Issues to consider: How close to maturity is the loan? Is the owner market or mission based? Is the property in a poor, good or great market? Is the property in poor, good or great condition? How much RA available – do rents relate to the market? What are the restrictions on the property? How long will it take to process a transfer? What is the availability of State funding? What is the availability of RD funding? Do you need and will RD use available servicing options? Do tenant protections encourage or discourage leaving the program? Does RA encourage or discourage leaving the program?

Additional key owner exit issues that may be considered: Do I want to stay in the business? Do I have a purchaser wanting to take it to market? How quickly can I get cashed out? What is my sale or offer price meet my expectations? Will the transaction satisfy my limited partners? What are the risks working with a inexperienced purchaser? Do I care what happens to tenants? What is the tax consequences of selling? Do I care what happens to project management? Does the town/county/state care what happens? What are my legal responsibilities to honor possible restrictions