PROPERTY PRESERVATION SESSION

1. PROPERTY PRESERVATION SESSION February 16, 2006

2. Panelists Caroline Reaves, First American National Default Outsourcing, Moderator Laurie Maggiano, HUD Leslie Bromer, HUD Sherilee Massier, Wells Fargo Joe Morrison, M&T Mortgage Robert Klein, Safeguard Properties Paul Magaha, First American Field Services Allan Martin, MCS NOW

3. Second Bids • Hazards • Items over $2,500 • Requests without justification • Second bids on smaller items

4. M&M Responses • Timeliness • Documentation

5. Code Enforcement on Current Loans Servicers need direction on how to handle code violations or eminent domain notices on current loans.

6. Extensions • How and when should an extension be approved? • What documentation needs to be detailed on the extension form? • Reasonable diligence

7. Roof Repairs vs. Tarping • Can a property be conveyed with a tarp? • If a tarp is denied, will an extension be granted to complete repairs? • Multiple bids requests for roof repairs

8. P&P Work Performed During Bankruptcy • What are the expectations for completing preservation work during bankruptcy? • If work is not done when counsel recommends that work not be done or when trustees don’t allow work to be done, will this be considered Mortgagee Neglect?

9. MORATORIUMS • What actions are servicers taking during moratorium periods? • Are hazard insurance claims increasing? • Significant increase in conveyances. Are the M&M’s prepared to handle this?

10. Inspection Data Fields • Inspection data fields have not been updated since 1984. • Recommended additions

11. Convey As-Is Checklist • Prior to request to convey a property, a checklist is being sent to servicers to complete prior to conveyance.

12. CONVEYANCES • History requests prior to conveyance • Work completed after conveyance • Some M&M’s are requiring that servicers must have their approval PRIOR to conveyance.

13. HUD Offsets and Demands • HUD Offsets • Demand Letters • Non-Performance Letters