Due Diligence EDFS Conference 2011

Perfection..... Perfection is attained in slow degrees; Perfection is attained in slow degrees; it requires the hand of time. Voltaire it requires the hand of time. Voltaire

T he D’s of Due Diligence & Accountability Develop - Procedures Develop - Procedures Discipline - Training Discipline - Training Disclosure – Inquiries to Applicants to borrowers Disclosure – Inquiries to Applicants to borrowers Documentation - Closing Documentation - Closing Detail – Compliance Detail – Compliance Due Diligence - Collections Due Diligence - Collections

DEVELOP - Procedures Designed by staff Designed by staff User friendly User friendly Available Available Updated Updated

DISCIPLINE - Training Current Staff Current Staff New Staff New Staff Support Staff Support Staff Supervisors Supervisors Loan Committee Loan Committee Solicitor Solicitor

Keep the wheels turning!

DISCLOSURE – From Applicant to Borrower Disclose Disclose Disclose again Disclose again One more time, for the record! One more time, for the record! Fact Sheet, Interview, Summary loan application, Assurances, etc., etc., etc.

DOCUMENTATION - Closing Documentation Documentation Instruction letters Instruction letters Your Solicitor Your Solicitor The Borrower’s Attorney The Borrower’s Attorney Cost Cost What works for you? What works for you?

DETAIL - Compliance Document Document Verify Verify Follow up Follow upMonthlyQuarterlyAnnual

DUE DILIGENCE Servicing Servicing A C H A C H Collections Collections 15 – 30 – 45 – 60 Work Out Options?

DILIGENCE - Collections “What we hope ever to do with ease, we must learn first to do with diligence.” we must learn first to do with diligence.” Samuel Johnson

GOOD LUCK! “Diligence is the mother of good luck.” Benjamin Franklin