1. What the hecm? RMS Agent Development
5 Star Conference // Dallas, TX
September 15, 2015

2. REO Management Solutions
REO Management Solutions (REOMS) is a wholly-owned subsidiary of Reverse Mortgage Solutions, Inc. (RMS) that specializes in asset management and liquidating bank-owned properties on behalf of investors.
Walters Investment Corporation
Sister companies with :
Ditech/Greentree, Everbank, MA Systems
RMS specializes in:
liquidating reverse mortgage/HECM REOs
maximizing return of HUD insurance process
diminishing investor exposure to loss
Q4 2014
For Mortgage Professionals Only

3. Home Equity Conversion Mortgage
HECM
Home Equity Conversion Mortgage
Industry term is a Reverse Mortgage
Q4 2014
For Mortgage Professionals Only

4. HECM Product Overview
Tool to allow seniors the opportunity to remain in their homes and to supplement income.
Borrower Requirements
You must:
Be 62 years of age or older
Own the property outright or paid-down a considerable amount
Occupy the property as your principal residence
Not be delinquent on any federal debt
Participate in a consumer information session given by a HUD- approved HECM counselor
Property Requirements
Meet all FHA property standards and flood requirements:
Single family home or 2-4 unit home with one unit occupied by the borrower
HUD-approved condominium project
Manufactured home that meets FHA requirements
Financial Requirements
Income, assets, monthly living expenses, and credit history will be verified.
Timely payment of real estate taxes, hazard and flood insurance premiums will be verified
Q4 2014
For Mortgage Professionals Only

5. HECM Product Overview But what does this mean to for me as an agent….
Future Inventory
Q4 2014
For Mortgage Professionals Only

6. FY ,372 FY ,642 FY ,091 FY ,822 FY ,131 FY ,106 FY ,692 FY ,154 FY ,558 FY ,351 FY ,131 FY ,829 FY ,097 FY ,049
FY ,781 FY ,640 FY ,982 FY ,896 FY ,208 FY ,596 FY ,165 FY ,365 FY ,964 FY ,019 FY FY loans Total = 906, Source: HUD
How many are out there?
Q4 2014

7. HECM Product Overview
All reverse mortgages by nature are designed to default.
You are giving seniors the ability to stay in their homes with no obligation to pay off the debt.
But inevitably default happens…
Death of borrowers
Tax and Insurance
Failure to repair property as a condition of the loan
Occupancy
Q4 2014
For Mortgage Professionals Only

8. HECM Product Overview Default- now what?
Borrower or borrower’s heir can redeem the loan.
6 month timeframe with 2 optional 90 day extensions
- House can sit for a year before going to FC. Some of these sit for even longer as we wait for the courts to process the legal steps
Short sales and DILs are an option for the estate.
Q4 2014
For Mortgage Professionals Only

9. HECM Product Overview
Key Points for HUD marketing requirements following Foreclosure
Insured loan back to the original investor.
Must sell at the current valid FHA appraised value.
* approval to 95% may be granted by HUD as a condition
Sold “as is” no utilities no repairs unless for health and safety or require by local laws.
All valid preservation expenses and curative expenses will be reimbursed to the investor as long as they incurred during the insured period.
Q4 2014
For Mortgage Professionals Only

10. HECM Product Overview
Preservation rules ML Exb B – Schedule of allowances
$2500 from noncompliance and/or default
Most of the time this money has been spent.
The process to get more money is called a It’s an over-allowable request for more money.
Probably biggest frustration from an agent’s point of view. Not much visibility to the process. Must be submitted by the servicer and coordinated back through local preservation.
Q4 2014
For Mortgage Professionals Only

11. HECM Product Overview Occupied Assets 6 types Former Borrower
Non Borrowing spouse
Tenants
Heirs
Unauthorized Occupants- Squatters
Personal Property
HUD does not offer Cash For Keys- non-reimbursable investor expense
Q4 2014
For Mortgage Professionals Only

12. Marketable Title Established
The marketable title date (MT) is determined by the most recent of the following three dates:
Vacant date
Foreclosure Deed recorded date
Expiration of Redemption, Ratification or Confirmation
*including IRS redemption rights
6 month clock starts upon latest event
Q4 2014
For Mortgage Professionals Only

13. HECM Product Overview
Investor has 6 months to sell the asset during the insured period.
***Commonly called pre180.
-This is called a sales based claim if sold during pre180
At the end of the expiration of marketable title the investor must settle up with HUD to the value of their current appraisal and now the property it investor owned. True REO.
***Commonly called post180.
-This is called an appraisal based claim if sold during post180
Property must be sold at the valid FHA appraisal. Only good for 120 days. To file the claim one must have an appraisal dated within 15 days of the expiration of MT.
Q4 2014
For Mortgage Professionals Only

14. Additional Key Points to know
Older homes in nature
Investor friendly sales
~70% are not FHA financeable
Significant deferred maintenance
Double edged sword to repair
Always have BPO done and repair considerations ready for appraisers.
Bad values leave you stuck on the market.
Q4 2014

15. Government Regulations & Investor Guidelines
Department
Regulation/Guideline
Eviction & Redemption
24 CFR (3) ML
State Eviction Laws
Protecting Tenants at Foreclosure Act
HECM REO Sales
24 CFR (4)
Sales & Appraisal Based Claims
24 CFR & 129
Property Preservation
ML and related FAQs
Q4 2014
For Mortgage Professionals Only

16. What does the future at RMS look like?

17. RMS CLIENT MATRIX (8188) ENT Federal Credit Union
(7022) Random Properties Acquisition, Corp. III
(8115) Random Properties Acquisition-HECM
(7087) Transcendent Investments Management
(7056) Wells-Riverview
(7067) Wells-Riverview
(7058) Wells-Riverview
(7020) World Alliance Financial Group
Total commission is 6% of sale price, of which 1% is to be paid to RMS.
There is no minimum commission offered.
Client will consider a sales price of 95% of the appraised value

18. RMS CLIENT MATRIX (cont.)
(7271) RMS-RBS-Greenwich
(7299) RMS-Owned
(7394) RMS-Goldman
(7416) RMS-FNMA Repurchase
(7418) RMS-GNMA
Total commission is 6% to be equally split between LA/SA.
Minimum Commission of $2,000 applies if the total commission payout is < or = $2,000.
The $2,000 minimum commission is to be equally divided between LA/SA.
1% referral fee does not apply.
Client will consider a sales price of 95% of the appraised value

19. RMS CLIENT MATRIX (cont.)
(7392) RMS-MECA 2010 Trust
Total commission is 6% of sale price, of which 1% is to be paid to RMS
Client will consider a sales price of 95% of the appraised value
(7945) US Bank N.A. as Trustee for MECA
Total commission is 6%.
1% referral fee does not apply.
Minimum commission is granted on a case by case basis, and determined by the client.

20. RMS CLIENT MATRIX (cont.)
(7091) BAML
(8619) Bank of America, N.A
(8797) BAML 002
(113234) BAML 2 REO Transfer
Total commission is 6% of sales price of which 1% is to be paid to RMS.
Minimum Commission of $2,000 applies if the total commission payout is < or = $2,000.
The $2,000 minimum commission is to be equally divided between LA/SA.
Client will consider a sales price of 95% of the appraised value
Transfer assets are boarded 1x month and may be assigned to previous listing agent.

21. RMS CLIENT MATRIX (cont.)
(8763) RMS-BOA-UNIS
Total commission is 6% of sales price of which 1% is to be paid to RMS.
Minimum Commission of $2,000 applies if the total commission payout is < or = $2,000.
The $2,000 minimum commission is to be equally divided between LA/SA.
List Price will be determined by the BPO/Appraised value
Agents may be required to provide bids for repairs and debris removal
Marketable Title does not apply

22. RMS CLIENT MATRIX (cont.)
(8285) Seattle Bank
(9067) RML Trust
(9069) RMS Trust
Total commission is 6% of sales price.
1% referral fee does not apply.
Client will consider a sales price of 95% of the appraised value

23. RMS CLIENT MATRIX (cont.)
(8289) Reverse Mortgage Loan Trust
(8583) GTE Federal Credit Union
(9069) RMS Trust
Total commission is 6% of sales price of which 1% is to be paid to RMS.
Minimum Commission of $2,000 applies if the total commission payout is < or = $2,000.
The $2,000 minimum commission is to be equally divided between LA/SA.
Client will consider a sales price of 95% of the appraised value

24. RMS CLIENT MATRIX (cont.)
(8237) Chetco Federal Credit Union
(28393) American National Bank
( ) Black Reef Trust – HECM
( ) Black Reef Trust – Proprietary
(109921) TRM
TRM – Proprietary *Properties not yet boarded
Total commission is 6% of sales price of which 1% is to be paid to RMS.
Client will consider a sales price of 95% of the appraised value

25. RMS CLIENT MATRIX (cont.)
(8187) Urban Financial of America, LLC
Total commission is 6% of sales price of which 1% is to be paid to RMS.
Minimum Commission of $2,000 applies if the total commission payout is < or = $2,000.
The $2,000 minimum commission is to be equally divided between LA/SA.
Client will consider a sales price of 95% of the appraised value
60 Day property look back
Broker Marketing Questionnaire
Weekly property inspections during vacancy
UFA appraisal review prior to listing
Agent proximity to properties:
- 5 miles Urban
- 15 miles Suburban
- 25 miles Rural

26. RMS CLIENT MATRIX (cont.)
(7488) Fannie Mae
Transfer Timeline:
- New/Redemption/Occupied: Transferred on 9/10/15
- Pre-Marketing &Weekly Post 180: 9/17/15
- Weekly Post 180: 9/24/15
- Listed & Weekly Post 180: 10/1/15
- Pending offer: 10/8/15
Contract Extensions in November will only be extended on a case by case basis.

27. RMS BUSINESS FUNCTIONS/TIMELINES MUST BE MET
Tasking
KPI Metrics of Scheduled Task
Assignment Acceptance or Rejection
24 hours of assigned task
Initial Occupancy
24 hours of assignment
Weekly – on Redemption/Occupied Properties
Monthly – on subsequent tasks
HOA
BPO Tasking
5 days
MSRs Tasking
Monthly
Submit Initial Listing Agreement
24 hours
MLS
Submit Signed Sales Contract
4 days to submit contract
Submit Contract Modifications (Corrections)
2 days
Submit Final Sales Contract to Buyer’s Agent
Submit Sales Contract Extensions/Amendments
Submit Listing Extensions

28. No Offers?
No Help?
GOODBYE!

29. COMPLETING THE BPO
Below is a guide Asset Management utilizes when evaluating the condition of the BPO.

30. ETHICS & PROFESSIONALISM
We expect you to adhere to your local state laws regarding real estate practice.
We expect you to remain professional at all times in your communication with RMS vendors, buyers agents, and buyers.
A few things to consider when handling RMS properties:
- Property MUST be listed in your local MLS for 3 days / 5 days on BOA assets
- Listing Agents are not permitted to purchase Fannie Mae assets
- Not disclosing personal interest in property or the purchasing entity

31. REOCentral Updates RMS Exclusive Right to sell Listing Agreement.
RMS Real Estate Purchase Addendum (REPA) 2016