CREMAC Business Deck

CREMACCREMAC

ADVISORY & SERVICINGADVISORY & SERVICINGOverviewOverviewOverviewOverview

OVERVIEWOVERVIEWOVERVIEWOVERVIEW

CREMAC was founded in 1995 to purchase and manage distressed assets in the mortgage, real estate and mortgage backed securities sectors.

The company was reconstructed in 2007 in anticipation of market

alterations. Today, the company has emerged as a mortgage dynasty, a

vertically integrated group of focused entities each dedicated to specific vertically integrated group of focused entities, each dedicated to specific

aspects of the mortgage, real estate and securities industry.

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OVERVIEW (cont.)OVERVIEW (cont.)

Over the past 15 years, the companies developed the unique technical and Over the past 15 years, the companies developed the unique technical and ti l ti t ff ti l d it d b th i l ti l ti t ff ti l d it d b th i l

( )( )

practical expertise to effectively underwrite and manage both commercial practical expertise to effectively underwrite and manage both commercial and residential mortgage loans, real estate and fixed income securities. and residential mortgage loans, real estate and fixed income securities.

Today the reconstructed companies are:Today the reconstructed companies are:y py p

CREMAC C it l P tCREMAC Capital PartnersPrincipal Transaction/Finance (Investment Manager)

CREMAC Asset ManagementRegistered Investment Advisor (Advisor)

CAM Loan Servicing Risk Management Group (RMG)CAM Loan ServicingCommercial Mortgage Loan Servicer (Servicer)

g p ( )Residential CRM & Due Diligence(Residential Oversight)

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Corporate StructureCorporate StructureCorporate StructureCorporate Structure

The CREMAC Companies specialize in providing customized services tailored to the specific needs of our clients: p

Services:National Loan Servicing & Asset Management Platform

Services:Registered Investment Advisor

Services:Principal Transaction

•Commercial Whole

Services:•Residential Due Diligence

•Covenant compliance•Commercial Mortgage Loan Special Servicing •Default/Foreclosure management services•Asset Management •Real Estate Disposition Services

Institutional Services•Institutional Asset Management•Specific Strategy Investment advisory •Reg-D 144 A RELP Offerings•CRE Portfolio

•Commercial Whole Loan Acquisitions

• Co-investment & Participation Program

•Commercial Mortgage Lending

•Residential Credit Risk Management

•Residential Servicer Oversight

•Residential Whole Loan OversightServices

•Commercial Loan File Underwriting and Acquisition Due Diligence•Commercial Real Estate ValuationCollectionsTier 1Tier 2

•CRE Portfolio Management & Risk Assessment (Pursuant to joint agency guidance & ALLL policy statement) •Portfolio Valuation •Liquidation Agent (Securities UCC sales)

•CREMAC Real Estate Investment Fund I (Multi-Family acquisitions)

Loan Oversight

•Put-Back Review forensic analysis

Tier 2•In/out bound call center services•Strategic Call Campaigns using Optimizer software•Dedicated In bound staff (warm transfers)

(Securities UCC sales)•Loan Sale Advisory

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CREMAC Asset ManagementCREMAC Asset Management

Financial Institution Financial Institution S i S i Services Services

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Financial Institution Financial Institution Portfolio Valuation ServicePortfolio Valuation Service

Commercial Real Estate concentrations have been rising Commercial Real Estate concentrations have been rising over the past several years and have reached levels that over the past several years and have reached levels that could create safety and soundness concerns for could create safety and soundness concerns for i tit ti d i b th t i d ti tit ti d i b th t i d t

CREMAC Asset Management

institutions, driven by the recent economic downturn.institutions, driven by the recent economic downturn.

CREMAC Asset Management’s advisory services focus on CREMAC Asset Management’s advisory services focus on the client’s portfolio objectives. CREMAC Asset the client’s portfolio objectives. CREMAC Asset Management designs a strategy that enables its clients Management designs a strategy that enables its clients g

advisory services utilizes an accurate, flexible and cost-effective portfolio analysis platform. Our platform is continually updated so that the scope and depth of its capabilities remain

h d

g g gyg g gyto maintain a strong investment underwriting and to maintain a strong investment underwriting and review process while identifying risk posed by CRE review process while identifying risk posed by CRE investment concentrations.investment concentrations.

Services offered by CREMAC Asset Management are Services offered by CREMAC Asset Management are unmatched. Services offered by CREMAC Asset Management are Services offered by CREMAC Asset Management are customized for each client to meet their specific goals customized for each client to meet their specific goals and objectives. and objectives.

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Financial Institution Financial Institution

Develop CRE FrameworkDevelop CRE Framework Assess risk concentrationsAssess risk concentrations

CRE ServicesCRE Services

Review board and management oversightReview board and management oversight Portfolio management strategiesPortfolio management strategies Assess effectiveness of management information systemsAssess effectiveness of management information systems Market analysis and stressMarket analysis and stress--testingtesting Underwriting and credit risk reviewUnderwriting and credit risk review

S i i htS i i ht i i t t t ti t d it l i t i i t t t ti t d it l i t Supervisory oversightSupervisory oversight--assessing investment concentration management and capital requirement assessing investment concentration management and capital requirement adequacyadequacy

Development of an effective loan review system including a sound credit grading systemDevelopment of an effective loan review system including a sound credit grading system Develop a wellDevelop a well--documented, consistent loan portfolio analysis considering all significant factors documented, consistent loan portfolio analysis considering all significant factors

effecting collectability.effecting collectability. Develop a ready network of legal, appraisal, real estate brokerage and property management Develop a ready network of legal, appraisal, real estate brokerage and property management

fffirms. firms. Develop policies and procedures for the estimation of allowance for Loan Losses Develop policies and procedures for the estimation of allowance for Loan Losses Data capturing & reporting systemData capturing & reporting system Whole loan pricing & credit loss modelingWhole loan pricing & credit loss modeling

Historical loss rates, recent industry trend Loss rates & migration analysisHistorical loss rates, recent industry trend Loss rates & migration analysis Quantitative factors & changes in value of underlying collateralQuantitative factors & changes in value of underlying collateral Changes in national, regional and local economic and business conditionsChanges in national, regional and local economic and business conditions PV expected future cash flow (PV expected future cash flow (discounted at loans effective interest ratediscounted at loans effective interest rate))

Independent audit and validation of Allocated Loan and Lease Loss (“ALLL”) MethodologyIndependent audit and validation of Allocated Loan and Lease Loss (“ALLL”) Methodology Ratio analysis (identify divergent trends)Ratio analysis (identify divergent trends) Impairment measurement methodology consistent with FAS 114 evaluated individually and FAS 5 as a groupImpairment measurement methodology consistent with FAS 114 evaluated individually and FAS 5 as a group

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Financial Institution Financial Institution

Our loan review system provides a utility independent of the lending function. It provides an Our loan review system provides a utility independent of the lending function. It provides an

CRE Loan Review SystemCRE Loan Review System

y p y p g py p y p g peffective internal reporting process geared toward maintaining the integrity of the loan classification effective internal reporting process geared toward maintaining the integrity of the loan classification or credit grading process and coordinates the gathering of information necessary to assess the or credit grading process and coordinates the gathering of information necessary to assess the appropriateness of the “ALLL”. The results of our loan review process provide an objective and appropriateness of the “ALLL”. The results of our loan review process provide an objective and timely assessment of the overall quality of the loan portfolio. The systems objectives are: timely assessment of the overall quality of the loan portfolio. The systems objectives are:

Properly identify loans with potential credit riskProperly identify loans with potential credit risk Appropriately grade or adversely classify loansAppropriately grade or adversely classify loans Identify loans with wellIdentify loans with well--defined credit weaknesses that jeopardize defined credit weaknesses that jeopardize

repayment so that timely action can be taken and minimize credit lossrepayment so that timely action can be taken and minimize credit lossIdentify relevant trends that affect the collectability of the portfolioIdentify relevant trends that affect the collectability of the portfolio Identify relevant trends that affect the collectability of the portfolioIdentify relevant trends that affect the collectability of the portfolio

Isolate segments of the portfolio that are potential problem areasIsolate segments of the portfolio that are potential problem areas Assess the adequacy of and adherence to internal credit policies and loan Assess the adequacy of and adherence to internal credit policies and loan

administration procedures administration procedures Monitor compliance with relevant laws and regulationsMonitor compliance with relevant laws and regulationsMonitor compliance with relevant laws and regulationsMonitor compliance with relevant laws and regulations LoanLoan--monitoring procedures and risk assessmentmonitoring procedures and risk assessment

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Financial InstitutionFinancial InstitutionLoan Risk Assessment and MonitoringLoan Risk Assessment and Monitoring

FDIC & OCC guidance reinforces the importance of sound risk assessment practices and on going CREloan monitoring. The guidance reiterates the importance of robust information management systems,stress testing and accurate market analysis.T d ’ i l l t t b i i i di i i h d ti h fl d

Loan Risk Assessment and MonitoringLoan Risk Assessment and Monitoring

Today’s commercial real estate borrower is experiencing diminished operating cash flows anddepreciated collateral values. Not withstanding their deteriorating financial conditions, many of theseborrowers are still credit-worthy and have the desire and willingness to repay their debts. Inperforming an economic analysis of borrower, guarantor and collateral property, our systems aredesigned to identify the most appropriate course of action for the best interest of both lender andborrower.

Borrower Analysis

Analysis of borrower financial condition, including review of payment history and borrower financial capacity

Review of cash flow generated from the collateral property as well as the business operations

Analysis of current market conditions and the potential impact

GuarantorAnalysis

Analysis of Financial

Analysis of current market conditions and the potential impact to borrower cash flow and ability to make timely payments

Analysis of guarantor financial condition and willingness to provide support if necessary

Analysis

C ll t l

Documents Verify that Guaranty document language is sufficient to repayment of indebtedness during the remaining loan term

Review of any collateral valuations to verify that assumptions and conclusions are reasonableCollateral

Analysis

and conclusions are reasonable

Utilize CAM Loan Servicing’s broker network to provide collateral valuations (BOVs) and to support workout activity 99

Financial Institution Financial Institution Bond Portfolio ManagementBond Portfolio Management

GNMA PORTFOLIO-A Fund Performance-Risk-Tracking

Fund Bench.GNMA PORTFOLIO‐ABAIF OEF ASSET BACKED US

Mean Return 1Y Weekly 6.16 7.73Total Return 3M 0.18 - -Total Return 6M 2.84 - -Total Return 1Y 5.89 - -Total Return Ytd 5.56 - -Perf 2008 8.36 2.48

1311

1188.4

1065.8

Perf 2007 6.68 5.82Perf 2006 3.81 4.35Perf 2005 2.14 - -Perf 2004 3.46 - -Perf 2003 2.72 - -

943.2

820.6

698

10‐Jun‐0910‐Nov‐99 10‐Oct‐01 10‐Sep‐03 10‐Aug‐05 11‐Jul‐07

1.46% 3.17% 0.48%

2.94%6 83%

4.24%4.23% Asset AllocationSector Allocation

10 Jun 0910 Nov 99 10 Oct 01 10 Sep 03 10 Aug 05 11 Jul 07

6.83%

Agency Collat CMO

Agency Collat PAC CMO

FGLMC Collateral

FNMA Collateral

GNMA Collateral

23.79%

71.96%

Government

Money Market

Mortgage

1010

57.09%

GNMA Collateral

GNMA2 Collateral

Sovereign

71.96% o tgage

Financial Institution Financial Institution InvestorInvestor Reporting/Collateral SummaryReporting/Collateral Summary

Property Type: Multifamily Lien Type: Senior Sponsor: John DoeProperty Sub‐Type: Apartment Building Loan Origination Date: 4/30/2006 Borrower: JD Investments# of Units: 57 Loan Aqcusition Date: 4/30/2006 Loan Assumable: YesCity, State: New York, NY Acquisition/Refinance: Acquisition Carve Out Guarantor: john Doe

XYZ FUND, INC. CRMAC Asset Management Collateral Summary

PROPERTY and Borrower INFORMATION

XXXXX XX STREET BROOKLYN, NY

CREMAC Asset Management recognizes that lending is the principle business activity for most commercial banks. The Loan Portfolio is typically the largest asset and revenue source, but also the greatest source of risk.

L tf li t i th b hi h i k y, S a e , qu s o / e a e q a e Ou ua a o j

Year Built, Renovated: 1935 Lock Box: No Cash Mgmt/Sweep: No/No

Original Loan Curr Loan Current Int Origination Maturity Orig OrigNote Holder Balance Balance Rate Date Date Appraisal $ LTV Index MarginSenior ABC BANK 6,500,000 6,250,000 6.22% 4/30/2006 5/1/2036 9,900,000 65.66% 1 Year T Bill 2.30%

Actual Actual Actual Issuer U/W Per Unit No. Of Avg. In Place Adjusted %Property Statistics 2006 2007 2008 NCF Unit Type Units SF Rent Market Rent Occupied

O 85 0% 86 5% 89 0% 85 0% 1 B d 38 900 1275 1365 84%

Loan Information

Property Operations

Loan portfolio management is the process by which risks inherent in the credit process are managed and controlled. Identifying credit risk issues before they become problems is fundamental to banks’ safety and soundness.

CREMAC’s proprietary loan portfolio management system focuses on the identification and management of risk among


XXXXX XX STREET BROOKLYN NY

Occupancy 85.0% 86.5% 89.0% 85.0% 1 Bedroom 38 900 1275 1365 84%2 Bedroom 15 950 1800 1925 100%

Base Rent $998 $1,008 $1,018 $998 $18 3 Bedroom 4 1050 2350 2450 100%Other Income $45 $45 44 $45 $0.80 Total/Avg 57 967 1,808 1,913 89.33%Vacancy Loss $41 $37 21.20 41.00 $0.72Total Revenue $1,002 $1,016 $1,041 $1,002 $17.58RE Taxes and insurance $185 $183 179.5 $185 $3.24Operating Expenses $192 $190 186.6 $192 $3.37NOI $625 $642 $675 $625 $10.97Capital Expenditures $3 $3 $3.3 3.35 $0.06NCF $622 $639 $672 $622 $10.91

Property NarrativeThe property has seen a significant revitalization over the past few years. The local submarket contains 40M households as of 2008, with an average household income of $39M compared to $64M for the nation. Contractual rents to the property, which average $1,808 per unit per month are set to be 5.4% below market rents. CREMAC's analysis indicates market rents to be approximatly $1,365 for 1 bedroom apartments, $1,925 for 2 bedroom aprtments and $2,450 for 3 bedroom apartments based on broker rental listings for comparable apartments in market rate buildings. The Properties' general

focuses on the identification and management of risk among groups of loans, and highlights elements that are of greater risk on an individual loan basis.

Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Period Beginning 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018Period Ending 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018RevenueBase Rent $1,038,564.00 $1,059,335.28 $1,080,521.99 $1,102,132.43 $1,124,175.07 $1,146,658.58 $1,169,591.75 $1,192,983.58 $1,216,843.25 $1,241,180.12Parking Income $40,970.00 $41,994.25 $43,044.11 $44,120.21 $45,223.21 $46,353.79 $47,512.64 $48,700.46 $49,917.97 $51,165.92Laundry & Vending $3,615.00 $3,705.38 $3,798.01 $3,892.96 $3,990.28 $4,090.04 $4,192.29 $4,297.10 $4,404.53 $4,514.64




Appraised Value/Per Unit/ Date $8,000,000 $140,351 4/21/2008CREMAC Value/Per Uit/Date $7,250,000 $127,193 4/25/2008

on broker rental listings for comparable apartments in market rate buildings. The Properties general partners report a net worth of $1.1B and $80MM liquidity as of 6/30/2009, which will be the the recourse carveout guarantor of the loan.

Laundry & Vending $3,615.00 $3,705.38 $3,798.01 $3,892.96 $3,990.28 $4,090.04 $4,192.29 $4,297.10 $4,404.53 $4,514.64Other Income $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Vacancy Loss $37,409.83 $33,152.26 $28,684.39 $23,998.89 $19,088.20 $13,944.53 $8,559.85 $2,925.89 $0.00 $0.00

Effective Gross Income $1,045,739.17 $1,071,882.65 $1,098,679.71 $1,126,146.70 $1,154,300.37 $1,183,157.88 $1,212,736.83 $1,243,055.25 $1,274,131.63 $1,305,984.92

Operating Expense

Real Estate Taxes $180,348.21 $184,856.92 $189,478.34 $194,215.30 $199,070.68 $204,047.45 $209,148.64 $214,377.35 $219,736.79 $225,230.20Property Insurance $38,271.14 $39,227.92 $40,208.62 $41,213.83 $42,244.18 $43,300.28 $44,382.79 $45,492.36 $46,629.67 $47,795.41Utilities $90,450.00 $93,163.50 $95,958.41 $98,837.16 $101,802.27 $104,856.34 $108,002.03 $111,242.09 $114,579.35 $118,016.73Repairs and Maintenance $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Janitorial $15,062.50 $15,439.06 $15,825.04 $16,220.67 $16,626.18 $17,041.84 $17,467.88 $17,904.58 $18,352.19 $18,811.00Management Fees $22 671 86 $23 238 66 $23 819 63 $24 415 12 $25 025 49 $25 651 13 $26 292 41 $26 949 72 $27 623 46 $28 314 05Management Fees $22,671.86 $23,238.66 $23,819.63 $24,415.12 $25,025.49 $25,651.13 $26,292.41 $26,949.72 $27,623.46 $28,314.05Payroll & Benefits $20,083.33 $20,585.42 $21,100.05 $21,627.55 $22,168.24 $22,722.45 $23,290.51 $23,872.77 $24,469.59 $25,081.33Advertising & Marketing $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Professional Fees $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00General & Administrative $1,004.17 $1,029.27 $1,055.00 $1,081.38 $1,108.41 $1,136.12 $1,164.53 $1,193.64 $1,223.48 $1,254.07Other Expenses $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Ground Rent $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Tenant Improvements $2,535.52 $2,598.91 $2,663.88 $2,730.48 $2,798.74 $2,868.71 $2,940.43 $3,013.94 $3,089.29 $3,166.52Capital Reserves $1,205.00 $1,235.13 $1,266.00 $1,297.65 $1,330.09 $1,363.35 $1,397.43 $1,432.37 $1,468.18 $1,504.88Total Expenses $371,631.74 $381,374.78 $391,374.97 $401,639.13 $412,174.30 $422,987.67 $434,086.64 $445,478.82 $457,172.00 $469,174.20

Net Income $674,107.43 $690,507.86 $707,304.74 $724,507.57 $742,126.07 $760,170.21 $778,650.19 $797,576.43 $816,959.63 $836,810.73

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Loan Principal Payments $107,646.55 $114,536.38 $121,867.20 $129,667.24 $137,966.50 $146,796.92 $156,192.54 $166,189.50 $176,826.35 $188,143.99Loan Interest Payments $385,715.57 $378,825.74 $371,494.92 $363,694.88 $355,395.62 $346,565.20 $337,169.58 $327,172.62 $316,535.77 $305,218.13Prepayment Penalties $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Asset Managers Fee $62,500.00 $62,500.00 $62,500.00 $62,500.00 $62,500.00 $62,500.00 $62,500.00 $62,500.00 $62,500.00 $62,500.00

Net Cash Flow $118,245.31 $134,645.74 $151,442.62 $168,645.45 $186,263.95 $204,308.09 $222,788.07 $241,714.31 $261,097.51 $280,948.61

Financial Institution Financial Institution Collateral ValuationCollateral Valuation SummarySummary

CASH FLOW SUMMARY

Investment Year Year 1 Year 2 Year 3 Year 4 Year 5Dates 2008 2009 2010 2011 2012Cash Out (6,401,410) (1,282,601) (11,193) 0 0Cash In 0 8,997,937 84,069 0 0

Residential Loans Valuation SummaryXYZ FUND, INC. CRMAC Asset Management Collateral Summary

Net Cash Flows (6,401,410) 7,715,336 72,876 0 0Cumulative Cash Flows (6,401,410) 1,313,926 1,386,802 0 0

Peak Negative Cash Flow (6,401,410)Peak Negative Cash Month 5

INVESTMENT SUMMARY% of Orig. % of CREMAC % of Liq.

% of UPB Value Curr. Value ValueUPB 15,071,347.99 100.0% 81.11% 140.96% 165.95%Loan Count 49.00Average UPB 307,578.53

C ll t l V l


Most of the developments that improve loan portfolios’ liquidity have implications for price/value risk. Traditionally, most bank portfolios are “Held-to-Maturity” and

ti d t i i b k l Collateral ValueOrigination BPO Value 18,581,600.00 123.29%Updated Tape Value 18,581,600.00 123.29% 100.00%HPD-Adjusted Value 10,692,000.00 70.94% 57.54%CREMAC Current Value 10,692,000.00 70.94% 57.54%

Liquidation Value (NPL) 9,082,005.46 60.26% 48.88% 84.94%Liquidation Value (PL) 0.00 0.00% 0.00% 0.00%Total Liquidation Value 9,082,005.46 60.26% 48.88% 84.94%

CREMAC Price (5,707,519.48) -37.87000% -30.72% -53.38% -62.84%

Cash FlowsLiquidation Expenses (NPL) (1 987 684 12) -13 19%

Property Name XYZ For the Year Ending March 2010 2011 2012 2013 2014 2015 2016Poperty Address XYZ Boulevard

Effective Gross Income: $1,045,739 $1,071,883 $1,098,680 $1,126,147 $1,154,300 $0 $0Number of units 57Sqaure Feet: 45,600.00 Operating Expenses: $367,182.72 $376,814.54 $386,700.72 $396,848.03 $407,263.42 $0.00 $0.00Price: $8,447,694.34Price Per Unit: $148,205.16 NOI: $678,556.44 $695,068.11 $711,978.99 $729,298.67 $747,036.96 $0.00 $0.00Price Per SF: $3.25Cap Rate: 8 00% NOI Percent Increase N/A 2 43% 2 43% 2 43% 2 43% 0 00% 0 00%

Multi Family Valuation Summary accounting doctrine requires book value accounting treatment.

However as banks deleverage and develop more active portfolio management practices loan portfolios will become increasingly sensitive to price risk As assets are placed Liquidation Expenses (NPL) (1,987,684.12) 13.19%

Liquidation Value (NPL) 9,082,005.46 60.26%Carrying & Liquidation Costs (PL) 0.00 0.00%Principal & Interest Proceeds (PL) 0.00 0.00%Liquidation Value (PL) 0.00 0.00%Liquidation Sales Discount (PL) 0.00 0.00% Net Liquidation Proceeds 7,094,321.34 47.07%

Profit 1,386,801.86 9.20%IRR 25.00% 0.00%

Profit Margin % of: Margin % MonthCREMAC PRICE (5,707,519.48) 24.30% Peak Negative 5Peak Negative Cash Flow (6,401,410.24) 21.66% Break Even 14Total Cash Out (7 695 203 61) 18 02% Last Loan Liquidation 28

Cap Rate: 8.00% NOI Percent Increase N/A 2.43% 2.43% 2.43% 2.43% 0.00% 0.00%

Leverage: 70% $5,913,386 Capital Exp From Reserves: $1,205.00 $1,235.13 $1,266.00 $1,297.65 $1,330.09 $0.00 $0.00Interest Rate: 5.50% $322,407 Net Capital Expenses: $1,205.00 $1,235.13 $1,266.00 $1,297.65 $1,330.09 $0.00 $0.00Amortization: 25Constant / Annual debt Service: 7.37% $435,760.32 Asset Management Fee: $84,477 $84,477 $84,477 $84,477 $84,477 $0 $0

Equity 30% $2,534,308.30 Cash Flow Before Debt Servi $594,080 $610,591 $627,502 $644,822 $662,560 $0 $0

Interest Debt Service $322,407 $316,013 $309,258 $302,123 $294,584 $0 $0Return Analysis Cash on Cash ROE IRR Total Return

1 year 6 25% 10 72% 0 00% 6 25% Net Income $271 672 $294 578 $318 244 $342 699 $367 976 $0 $0

sensitive to price risk. As assets are placed in a “Held-for- Sale” account, they must be re-priced at the lower of cost or market.

CREMAC Asset Management is the premier industry choice for third-party mortgage asset services and comprehensive mortgage Total Cash Out (7,695,203.61) 18.02% Last Loan Liquidation 281 year 6.25% 10.72% 0.00% 6.25% Net Income $271,672 $294,578 $318,244 $342,699 $367,976 $0 $0

2 Year 6.90% 11.62% 0.00% 13.15%3 Year 7.57% 12.56% 0.00% 20.71% Principal Debt Service $113,353 $119,747 $126,502 $133,638 $141,176 $0 $0

4 year 8.25% 13.52% 0.00% 28.96% Cash Flow After Debt Service $158,319 $174,831 $191,742 $209,061 $226,800 $0 $05 year 8.95% 14.52% 16.18% 199.73%6 Year 0.00% 0.00% 0.00% 0.00% Net Refinance Proceeds: $0 $0 $0 $0 $0 $0 $0

7 Year 0.00% 0.00% 0.00% 0.00% Sale Proceeds $0 $0 $0 $0 $4,100,911 $0 $0

Cash Flow From Deal $158,319 $174,831 $191,742 $209,061 $226,800 $0 $0

Equity Split / PromoteEquity Partner

Asset Manager Promote

Equity Investment ($2 584 994) $0 Loan Origination fees $0 00 $0 00 $0 00 $0 00 $0 00 $0 00 $0 00

asset services and comprehensive mortgage analytics. Our services provide clients with industry standard solutions for the valuation and risk management services.

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Equity Investment ($2,584,994) $0 Loan Origination fees $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Cash Distribution $4,756,741 $285,261 Prepayment Penalties $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

$2,171,746 $285,261 Principal Reduction: $113,353 $119,747 $126,502 $133,638 $141,176 $0 $0Loan Balance $5,798,023 $5,678,276 $5,551,774 $5,418,136 $5,276,960 $0 $0Residual Sale Proceeds $0 $0 $0 $0 $0 $9,379,881 $0

Total Net Cash Flow $158,319 $174,831 $191,742 $209,061 $4,327,710 $0 $0Cumulative Net Cash Flow $158,319 $333,150 $524,892 $733,953 $5,061,664 $0 $0

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Economic AnalysisEconomic Analysis•• Borrower Financial AnalysisBorrower Financial Analysis•• Guarantor AnalysisGuarantor Analysis•• Collateral Financial AnalysisCollateral Financial Analysis

Loan AbstractingLoan Abstractinggg Covenant ComplianceCovenant Compliance Commercial Real Estate Valuations (BOV)Commercial Real Estate Valuations (BOV) Commercial Loan File Underwriting Commercial Loan File Underwriting Acquisition Pre & PostAcquisition Pre & Post--Boarding Due DiligenceBoarding Due Diligence System to System Integration System to System Integration

C ll C t & C ll ti S iC ll C t & C ll ti S i Call Center & Collection ServicesCall Center & Collection Services Inspection/Site VisitsInspection/Site Visits Construction CompletionConstruction Completion Develop Workout Strategies Develop Workout Strategies Monitor Progress of Workout PlansMonitor Progress of Workout Plans Foreclosure ManagementForeclosure Management Foreclosure ManagementForeclosure Management Develop and Implement Vendor Management ProceduresDevelop and Implement Vendor Management Procedures Provide External Audit Support Provide External Audit Support

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CAM Loan ServicingCAM Loan ServicingCollections Collections Call CenterCall Center

Primary Functions:Primary Functions:Customer ServiceCustomer Service

InIn Bound Call Team: Answer Incoming callsBound Call Team: Answer Incoming calls

Collections Collections –– Call CenterCall Center

InIn--Bound Call Team: Answer Incoming callsBound Call Team: Answer Incoming calls Manual Support Team: Research, correspondence, loan covenant compliance, collect Manual Support Team: Research, correspondence, loan covenant compliance, collect

financial datafinancial data

Collection processes are automated using various forms of technology to maximize Collection processes are automated using various forms of technology to maximize Collection processes are automated using various forms of technology to maximize Collection processes are automated using various forms of technology to maximize call penetration. CAM maximizes collection efforts by establishing specific criteria for call penetration. CAM maximizes collection efforts by establishing specific criteria for processing based on delinquency trends and individual account needs. Additional processing based on delinquency trends and individual account needs. Additional clientclient--specific processes can be added, such as manual outspecific processes can be added, such as manual out--bound calls and warm bound calls and warm transfers to clients’ staff.transfers to clients’ staff.

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CAM Loan ServicingCAM Loan ServicingProperty Valuation ServiceProperty Valuation Service

CAM’s Commercial Broker Network and BOV ServiceCAM’s Commercial Broker Network and BOV ServiceRecognizing that a large number of CRE offerings consist of collateral located in Recognizing that a large number of CRE offerings consist of collateral located in

d d i k hi h d l d b h l d d i k hi h d l d b h l

Property Valuation ServiceProperty Valuation Service

secondary and tertiary markets which are not adequately covered by the large secondary and tertiary markets which are not adequately covered by the large national brokerage firms, CAM developed a national network of CCIM designated national brokerage firms, CAM developed a national network of CCIM designated brokers in order to provide local market intelligence. Our network consists of over brokers in order to provide local market intelligence. Our network consists of over 1,350 CRE brokers covering over 15,000 zip codes. CAM has pre1,350 CRE brokers covering over 15,000 zip codes. CAM has pre--qualified and qualified and trained each broker to ensure that the highest quality value reports are obtainedtrained each broker to ensure that the highest quality value reports are obtained. . Each Broker’s Opinion of Value runs through CAM’s quality control process to ensure Each Broker’s Opinion of Value runs through CAM’s quality control process to ensure a clear, concise accurate overview of the subject property and market location. CAM a clear, concise accurate overview of the subject property and market location. CAM realizes the importance of accuracy and knowledge when bidding distressed assets in realizes the importance of accuracy and knowledge when bidding distressed assets in a competitive environmenta competitive environment. .

P t D i ti P t Marketability (N b f

Valuation (C t/ t ti l

Broker’s Opinion of Value(BOV)

Property Description and Photos

Property Condition

(Number of listings/sales in area,

potential resale issues, etc.)

(Current/potential income, cap rate, as-

is and repaired values, etc.)

Li ti S l C f C t T ListingComparables

(including photos)

SalesComparables

(including photos)

Copy of County Tax Record

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CAM Loan ServicingCAM Loan ServicingCRE Broker CoverageCRE Broker CoverageCRE Broker CoverageCRE Broker Coverage

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CREMAC Contact ListCREMAC Contact ListCREMAC Contact ListCREMAC Contact List

Advisory Services

C t t

Loan Servicing

C t t

Property Valuation

C t t

Principal Transactions

C t tContact:Muriel Brunken718-222-4500 [email protected]

Contact:Colleen [email protected]

Contact:Sherry [email protected]

Contact:Michael Yanniello718-222-4500 [email protected]

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CREMAC Business Deck

Documents

Transcript of CREMAC Business Deck