Broker Agent Guidelines AHMSI

8/4/2019 Broker Agent Guidelines AHMSI

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Power REO Management Services, Inc.

Broker/Agent Guidelines


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Overview of Power REO Management Services, Inc.

Power REO Management Services, Inc. (Power REO), a wholly ownedsubsidiary of American Home Mortgage Servicing, Inc. (AHMSI), acquires RealEstate Owned property (REO) through the foreclosure of mortgage(s), Deed in

Lieu of foreclosure action (DIL), or acquisition(s). Servicing and dispositionfunctions include, but are not limited to:

Property PreservationEvictionMarketingContract NegotiationFinal disposition of the property

Properties are assigned to, and marketed through approved Real EstateBroker/Agents where the REO property is located. Power REO obtains three

independent values to determine the fair market value (FMV) of the property.Marketing strategies are developed to mitigate loss and to achieve the highestfinancial return for the property. The property remains under Power REOsresponsibility until final disposition of the property has occurred.

Power REO is comprised of REO Associates who manage REO acquisition, title,eviction, sales, and closing activities. Asset Managers are directly responsible fordeveloping all marketing strategies, listing and sales efforts with Real EstateBroker/Agents, and managing all other day-to-day matters related to theproperty. REO Pre-Marketers are responsible for specific functions such as overseeing the eviction process, sending REO assignments to Broker/Agents andobtaining two independent values. Closing Coordinators are responsible forfacilitating the sale closing process.

Power REOs expectation is that the Broker/Agent listed on the property directlymanages the property as assigned. The Brokers and Agents are responsible foron-site management (our eyes & ears) at the property and are ultimatelyresponsible for that property. If you are assigned a property Power REO requiresyou, as the assigned Broker or Agent, to manage that property.

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Power REO Broker/Agent Requirements

Registration

Application Link Active

Broker/Agents are required to register to gain access to the DARES BrokerPortal as a Power REO Business Partner at https://re.ahmsi3.com. The Broker isrequired to complete the application in its entirety. There is no fee to apply. Oncethe application is complete and submitted, the system will generate a PartnerCode to the Broker/Agent. The Partner Code is comprised of the stateabbreviation (where your office is located) & a 7-digit number (example: TX-0000000). The password will not be created until the Broker/Agent is assignedhis/her first asset.

Application Link InactiveIn the event that Power REO is not accepting new Brokers/Agents and/or has

disabled the link where Brokers/Agents apply on line, Power REO will reach outto Brokers/Agents in areas where assistance is needed.

After the successful completion of the application, the system will notify theBroker/Agent of the approval status. This does not guarantee that theBroker/Agent will receive referrals. There are multiple levels of approval in thesystem. The Broker/Agent will be fully activated and eligible to receive referralsonce all documentation has been received, reviewed and approved. TheBroker/Agent will be contacted via e-mail from the DARES portal when we havean asset that needs servicing.

The following documentation and training will be required to activate yourprofile:Within 48 hours of receipt referencing the request for documentation, theBroker/Agent must fax to Power REO at (866) 452-3171, the followinginformation:

Verification of current and active Real Estate License Proof of Errors & Omissions (E&O) Insurance (amount required is noted in

the MSLA)

W-9 Default School Required Course Completion

A list of up to 15 zip codes that the Broker/Agent manages. In relationshipto the listing office, zip codes must be no more than:o 5 miles for Urbano 10 miles for Suburbano 20 miles for Rural

Executed Master Servicing Listing Agreement (MSLA):o The Master Servicing Listing Agreement is effective upon receipt by

Power REO of the fully executed Agreement, and will expire each

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year at the close of business on the last day of February, unlessearlier terminated. It is the responsibility of the Broker/Agent torenew the Agreement every year prior to expiration. To renew theAgreement the Broker/Agent must first execute the most currentMSLA from Power REO and fax it to (866) 422-8187. Power REO

reserves the right to request that an original signed Agreement besent to the following address:

Power REOAttn: BPMS Administrator4600 Regent Blvd., Suite 200Irving, TX 75063

The Agreement will not be effective until accepted and executed by Power REO.If the required information is not received within the stated timeframe, PowerREO reserves the right to take action including, but not limited to, canceling any

existing Broker/Agent property assignments.

** As an approved/active Agent/Broker, you are an integral part of the PowerREO team. Please ensure that you enter Emergency Contact Information. Thiswill allow the staff here at Power REO to contact you after normal working hours,if necessary. Additionally, please ensure that your profile information is up to dateto maintain a good working relationship.

Media Relations Policy StatementThe goal of our media relations policy is to ensure that Power REO is providingrelevant, credible and consistent messages to the media over time.

When members of the media request a comment from a Broker/Agentrepresenting Power REO and any of its Business Partners regarding PowerREO, AHMSI, any of their related entities or any of their business, theBroker/Agent must obtain the information listed below and submit it to a PowerREO AVP immediately. Information needed: name of inquiring party / medianame / property address / loan number / any details requested by the media.

The Broker/Agent is not authorized to speak on behalf of Power REO, AHMSI, orany of their related entities.

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Power REO Contact Info(Also located in the Business Partner Portal under Info)

Business Partner Portal: https://re.ahmsi3.com DARES Real Estate Tech Support: [email protected] DARES Billing Questions (related to reimbursements other than utilities &

HOAs): [email protected] Billing Questions (related to utilities & HOAs):

[email protected] BPMS Profile/Account Issues: [email protected] Financing/Preferred Lender: [email protected] Property Preservation: [email protected]

DARESTM Business PortalBusiness will be conducted using the interactive DARESTM (Default AchievingResults and Excellence Solutions TM) Business Portal Workflow System. Thissystem can be accessed at https://re.ahmsi3.com. Power REO will send anotification to the Broker/Agent with the assigned password once access isgrated to DARESTM.

FormsPower REO periodically changes its forms to suit its business needs and may ormay not notify the Broker/ Agent of the change. The Broker/Agent is responsiblefor ensuring that the latest version of each form is used while conducting

business with Power REO.

The forms can be accessed in the DARES Business Partner Portal. Forms foundin the DARES Business Partner Portal including, but not limited to the following:

Non-System Generated Forms/Letters HOA Dues/Assessment Notification

System Generated Forms/Letters Relocation Assistance Letter Relocation Assistance Packet (Agreement, W-9, W-8, Multiple Occupant

Single Check Request Form, Confirmation of Receipt of Funds) Listing Letter RE Purchase Contract Addendum

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Property Condition / Occupancy Status

Vacancy Definition-A property is considered to be vacant (subject to local or state laws, ordinances,and statutes) where there are:

NO personal property on the premises exceeding $300 in value (to bedetermined by our nationwide eviction attorneys); and

NO persons, animals, or vehicles on the premises.

Secured Property Definition-Power REO contracts with a nationwide property preservation company toservice all Power REO properties. All properties are to be secured by thisdesignated company.

A property is considered to be secure when:

All access points are locked and re-keyed. Broken windows/missing doors are replaced or boarded in accordance

with HUD standards and local/state laws, ordinances, & statutes. A Supra-Electronic Key lock box and a standard alpha or numeric lock box

are installed. ~ Two lockboxes will be placed on the property. The Supra-Electronic lockbox is for the Broker/Agent (to be placed on the front door)and the second alpha or numeric lockbox that is required for independentvalue inspection and property preservation access ONLY (to be placed onthe back or side door by our nationwide property preservation vendor). Inthe event a side or back door is not available for the nationwide propertypreservation vendor, the lockbox may be placed on waterspouts or

handrails located on the property.

Securing the PropertyA nationwide property preservation company contracted by Power REO securesall properties. If a property is not secured properly or needs securing, pleasecontact your Pre-Marketer or Asset Manager for assistance.

In the event that it is necessary for the Broker/Agent to secure the property,please do the following: (Please remember this should not be done without priorapproval from the Pre-Marketer.)

Complete and submit the Request Expense Approval through DARES toobtain approval for any maintenance costs stated in the Bid RequirementsSection and costs to secure the property. See the Maximum MaintenanceCosts Section for cost guidelines.

Take a complete set of interior and exterior photos at the time the propertyis secured and submit it to the Pre-Marketer with the BPO throughDARES.

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Occupied Definition A property is considered occupied when there are persons, animals, vehicles, oroccupants personal property valued in excess of $300.

Property Occupied by Persons

If person or persons occupy a property, the Broker/Agent must:

Determine the identity of all persons and obtain the names of those whoare 18 years or older.

Verify occupant type (former owner, tenant, etc) & communicate anyinformation collected to our nationwide eviction attorneys.

Complete the Verify Occupancy Status Checklist task and submit toPower REO through DARES.

See Relocation Assistance Section below

Personal Property

In the event the property is accessed and personal property in excess of $300 isfound, the nationwide property preservation company adheres to the following:

The access point (back or side door) must be rekeyed, leaving the frontdoor as the access point for the occupant(s). (When inside the property,occupants should always be able to exit the property from the front, side, or backdoor as needed.)

Provide a detailed list of each visible item (inside or outside of the home)and its approximate value, including photographs.

Winterize property (if required) Ensure compliance with all state and local laws, and ordinances

concerning the removal of animals, vehicles, and personal property. Do not place a lockbox on the property until our nationwide eviction

attorneys have validated the value of personal property and taken thenecessary steps, working in conjunction with our nationwide propertypreservation vendor, to address the personal property and secure.

Relocation Assistance OptionFirst the Broker/Agent is to validate from the Pre-Marketer if the asset requiresMortgage Insurance (MI) approval for Relocation Assistance before offering thatoption to the occupant. If no MI approval is required, the Broker/Agent isauthorized to make initial relocation assistance offer to the occupant(s) once

relocation assistance information has been provided by the Pre-Marketer. This isan incentive to voluntarily vacate the property within 14 calendar days ofexecuted Relocation Assistance Agreement date. If the Broker/Agent is able tonegotiate relocation assistance with a vacancy within 30 days of the assignment,they will be eligible for a bonus. The DARES Broker Portal provides a form letterthat should be used when offering relocation assistance. The Broker/Agentshould place the Relocation Assistance Offer Letter on their business letterhead.

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Relocation Assistance Exception Conditions If the conditions of the Relocation Assistance Agreement are outside the statedparameters the Broker/Agent must obtain prior approval from the appropriateSales Manager or Power REO leadership before finalizing the RelocationAssistance Agreement with the Occupant(s).

Power REO will continue eviction proceedings until property is vacant, regardlessof whether or not the Broker/Agent has presented a signed RelocationAssistance Agreement.

Attention: As stated in the MSLA (2. E), it is the Broker/Agents responsibility to be incompliance with any law, ordinance, requirement, regulation, rule or order applicable toits business or assets this is inclusive of the ability to offer or not offer relocationassistance.

* Please see Rent Control section for additional information/requirements related toRelocation Assistance.

Relocation Assistance Requirements The Broker/Agent must:

Discuss the relocation assistance option with the occupant(s) of theproperty within 48 hours of receiving the Assignment Letter from PowerREO. (As stated above, MI approval is required, as needed, to proceed.)

Obtain Agreement from the occupant(s) to leave the premises in broom-swept condition by removing all personal property, vehicles, animals andtrash from the interior and exterior of the property.

Obtain the signature of all occupants who are 18 years or older on theRelocation Assistance Agreement if the option is accepted.

Submit the following documents in DARES as a part of the upload tasksand to the Pre-Marketer via e-mail within 24 hours of obtaining theoccupants signatures:

o Signed Relocation Assistance Agreement/Offer Lettero Completed W-9 or W-8 Forms (W-8 ~ if occupant(s) are Non-U.S.

residents or do not have a social security number) If the Broker/Agent is able to negotiate relocation assistance with a

vacancy within 30 days of the assignment, they may be eligible for abonus. The Broker/Agent must submit a W-9 in conjunction with thedocuments listed above to receive bonus payment.

** Please allow 3 - 5 Business Days to generate and provide the RelocationAssistance check(s).

Inability to Contact Occupant The Broker/Agent must make every effort possible to contact the occupant beforemoving on to Eviction. Broker/Agent may leave a door hanger to assist inoccupant contact.

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Relocation Assistance Transaction/Vacate DateOn the date of vacancy, the Broker/Agent must meet with the PropertyPreservation representative (who will bring the check(s)) and the occupant(s) toexecute the following:

Perform a walk-through inspection of the entire property, includingoutside buildings, to ensure that the occupant(s) have met the RelocationAssistance requirements of removing all personal property, animals,vehicles, trash, and that the property is in broom-swept condition prior todelivering the Relocation Assistance check to the Occupant(s).

After the verification that the requirements have been met, obtain thesignature of the Occupant(s) and Agent on the Confirmation of Receipt ofFunds.

Submit a copy of the signed Confirmation of Receipt of Funds throughDARES.

In addition to submitting the Confirmation of Receipt of Funds through DARES;on the date of vacancy, the Broker/Agent must communicate the following:

Successful completion of the Relocation Assistance Transaction Complete updated Occupancy Report

** Notify the Pre-Marketer if the Relocation Assistance Transaction wasunsuccessful.

Eviction

Eviction RequirementsThe eviction proceedings will run concurrently with the Relocation AssistanceOffer to the Occupant(s) of the property. Power REO contracts with a nationwideeviction attorney vendor and the Broker/Agent should work with the evictionattorneys, the property preservation representative, and the Pre-Marketers tocomplete a successful eviction.

During the Eviction ProcessThe Broker/Agent must:

1. Advise the Pre-Marketer of the occupancy status, including any unusualoccurrences or hazards.

2. The Broker/Agent is to perform an inspection within 24 hours of theassignment of the property and complete the occupancy report and toensure no issues exist.

3. Occasionally, an occupant may voluntarily vacate the property within a fewdays of a scheduled lockout date. However, no relocation assistanceincentive is provided. Therefore, a Vacate Agreement would apply. Prior toany such agreement, please contact the Pre-Marketer for approval.

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Reporting Vacant Properties under EvictionThere are often times when an occupant moves out and the property is vacantduring the eviction period. Broker/Agent is required to visit the assigned propertyevery seven days. The Broker/Agent would then report back to the Pre-Marketeron whether the property is still occupied or has become vacant.

If the Broker/Agent finds the property to be vacant, the process is as follows: The Broker/Agent reports to the nationwide property preservation

company that the property is vacant. The nationwide property preservation company conducts a property

inspection to verify occupancy. If personal property is remaining, the nationwide property preservation

company takes photos and creates an inventory list. The nationwideproperty preservation company sends the photos to the nationwideeviction attorneys within 72 hours. The nationwide eviction attorneyprovides a response to the nationwide property preservation company to

either start their initial services or remain in eviction. If no personal property remains or the nationwide eviction attorney gives

the approval to rekey, the nationwide property preservation companyrekeys the property and installs a lockbox on the property.

The assigned Broker/Agent confirms the lockbox is on the property byconducting a property inspection.

The assigned Broker/Agent completes an Updated Occupancy task inDARES (from the left navigation menu).

** The nationwide property preservation company should go to the property atany time when the assigned Broker/Agent reports it vacant, regardless as to

whether it is in eviction status or not. This is to confirm vacancy status and reportaccordingly.

Upon Notification of a LockoutThe following requirements are subject to local/state laws, ordinances andstatutes. The Broker/Agent must:

Be present at lockout Monitor all processes with the Sheriff and/or Eviction Attorney to ensure a

smooth eviction lockout. Have the Eviction Attorneys phone number on hand when at the property.

Ensure that Power REOs preferred national property preservationcompany (or a locksmith) present at the time of lockout to re-key andsecure the property.

Ensure that Power REOs preferred national property preservationcompany has prepared to have a moving crew, truck and dumpsters at theproperty, if required (confirm requirements with the Sheriff prior to thelockout date).

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Ensure that Power REOs preferred national property preservationcompany has located appropriate storage space to store Occupantspersonal belongings if required by local laws. Please check with EvictionAttorney for any details concerning local laws.Note: Power REO will pay for only one month of storage, unless otherwise

stipulated through the eviction proceedings. Remove remaining property contents as directed by local authorities.

Personal PropertyThe following requirements are subject to local/state laws, ordinances andstatutes. The Broker/Agent must:

Notify Pre-Marketer of the following through DARES by completingthe updated Occupancy Status Report indicating vacancy due tolockout.

Coordinate with Power REOs preferred national property

preservation company the quantity and value of any remainingpersonal property, as per local laws or customs.

Coordinate with Power REOs preferred national propertypreservation company that photographs are taken and thatinventory of all personal possessions remaining on the premises isnoted.

Post a notice of abandoned personal property, as per local laws orcustoms, if its value exceeds $300.

Power REOs preferred national property preservation companyshould re-key the rear/side entrance and secure the property.

If the property is located in areas that require winterization and it is

during winterization season, Power REOs preferred nationalproperty preservation company will follow the winterizationrequirements.

Rental PropertiesPlease keep in mind that the following guidelines in reference to RentalProperties ONLY apply to areas where there is a law, ordinance, requirement,rule or order stating that eviction and/or Relocation Assistance is not permitted.

To facilitate the marketing effort, Power REO generally obtains possession of an

occupied property through the eviction process and/or the Relocation Assistanceincentive. However, if a property is occupied with prior paying tenants, or if theproperty is rental in nature, the Broker/Agent and the Pre-Marketer mustdetermine if renting the property should be continued based on one or more ofthe following factors:

Tenant Foreclosure Act (May 2009) Local rent control laws

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Government subsidized programs (such as Section 8) Court mandates The target buyer for the property (i.e. investor) Prevention of vandalism

Management of Rental PropertiesOnce a rental scenario is determined, Power REO management must approvethe continuance or establishment of all rentals. After approval has been granted,it is the Broker/Agents responsibility to report all occupant information, includingany details of the rental agreement, to the nationwide eviction attorney. Thefollowing is only general information for the Broker/Agent. The specifics maychange. Please contact the responsible Power REO Asset Manager for moreinstructions on how to proceed.

Rent receipts are managed by the approved Eviction Attorney. In some instancesa property management company may be engaged, in which case the Asset

Manager will provide further instructions.

Establishing Rental AmountsWhen the court does not mandate the rental amount, but does mandate therental, the Broker/Agent must provide a fair market rental analysis to the AssetManager to establish rental amounts. This analysis should be provided with theBPO report. If a prior paying tenant is occupying the property, the Broker/Agentmust attempt to obtain a copy of the prior rental agreement and/or copies ofreceipts for rents paid then provide this information to our nationwide evictionattorneys for review and management.

Rents & ExpensesWhen the court mandates the rental of a property, the Broker/Agent mustcoordinate that any rents received be sent to the Eviction Attorney on a monthlybasis. The Eviction Attorney and/or Broker/Agent will be responsible forsubmitting the following to the Asset Manager:

Monthly income and expense statement for each unit. Copy of each invoice as backup. All rents collected in the form of cashiers checks or money orders. No

personal checks will be accepted.

In the event that repairs must be done outside of Power REOs preferred nationalproperty preservation company, the Broker/Agent must submit theReimbursement for Advances/Direct Payments to the Outside Vendor throughDARES for reimbursement of expenses incurred on the property. Please followreimbursement guidelines. If the court mandates the property as a rental, rentsare typically sent directly to the Eviction Attorney. Nevertheless, if theBroker/Agent is involved, the Broker/Agent must forward the rent paymentsreceived to the Eviction Attorney.

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Property Preservation

Property Preservation Initial & Recurring Services Include: Securing (All unsecured openings), as needed Secure fence surrounding pool, as needed

Replace damaged, broken, or missing lockboxes as needed(this referencesthe nationwide property preservation companys lockbox, not the lockbox placed onthe property by the Broker/Agent)

One Winterization as seasonally and geographically appropriate One De-Winterization and Re-Winterization (as requested for buyers inspection,

only)

Interior and Exterior Debris Removal (75 cubic yard cap, but does not includecommercial debris or debris from commercial operations)

Removal of up to two (2) vehicles Initial sales clean Monthly maid services

Initial and recurring lawn services (Lawn services include: mowing, weeding,edging, and removal of grass clippings. Brokers/Agents are responsible forwatering the grounds and/or reporting water issues or requesting sprinklersystem installation.)

Initial and recurring snow removals Pool Securing and Recurring pool maintenance Administration and payment of utility services Administration and payment of HOA dues Semi-monthly interior inspection

Turn-Time Expectations:3 Days for Service Completion / 4 Days for Property Information and PhotoUpload to Website

*All other services will be proposed for prior approval before work is authorized.**Any additional debris or securing will be billed separately.

Power REOs preferred national property preservation company will bid onadditional services, as needed, for items that are excluded from the initial &recurring services. Services may include, but are not limited to:

Evictions Repairs / Rehabs Roof tarps Carpet cleaning Carpet removal (unless detached as debris) Basement pumping Mold abatement

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Boarding of secured windows (jurisdictions that require full board ups,regardless.)

Tree Removals Landscaping Replacement More than two vehicles (boats, trailers, tractors, heavy equipment count as

vehicles) Inspections Exterminations Deodorizing Controlled Thaws Demolitions Door replacements Water heater straps and smoke detectors

Administration and payment of utility bills and HOA dues now beinghandled by Power REOs preferred national property preservation

company:

Utilities ~ Gas, Electric, and Water ServicesBrokers/Agents must NOT address utility services. Power REOs preferrednational property preservation company will be responsible for ensuring that theutility services are addressed and payments are submitted. During the process ofsetting up utilities, Power REOs preferred national property preservationcompany may need to request assistance from the Broker/Agent.

In the event that utilities have not been managed in a timely manner, pleasecontact Power REOs preferred national property preservation company to

request that all utilities be addressed.

For properties that are listed in Power REOs preferred national propertypreservation companys name, Power REOs preferred national propertypreservation company will be responsible for turning off utilities at closing. * Theturn-time for closing out utilities is 2-4 days.

** Utility Invoices will be processed by due date. All Final bills and Past Due Billswill be handled within 48 hours.

Utility Reimbursements:

If the utilities were activated or are currently activated in the Broker/Agentsname, all bills/invoices for reimbursement should be submitted directly to PowerREOs preferred national property preservation company.

When requesting reimbursement, be sure to include the following: Invoice Documentation of invoice payment by Broker/Agent Broker/Agents W-9.

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HOA DuesBrokers/Agents will NOT be responsible for payment of HOA Dues. Power REOspreferred national property preservation company will be responsible for paymentof HOA Dues. During the administration and payment, Power REOs preferrednational property preservation company may need to request assistance from the

Broker/Agent.

Send all HOA payment requests/documentation to Power REOs preferrednational property preservation company.

** Brokers/Agents are still required to document the HOA information in DARES.

After-Hours Emergency RepairsIf property damage, that requires immediate attention, is discovered outside ofnormal business hours, the Broker/Agent is required to contact Power REOspreferred national property preservation company via the 24 hour hotline number

provided to report the damages. Please contact your Pre-Marketer or Asset Managerto obtain this phone number.

Fire/Vandalism/TheftThe Broker/Agent must:

Immediately report any fire damage, vandalism, and/or theft to the localpolice/fire department, the Power REO Asset Manager/Pre-Marketer, andPower REOs preferred nationalproperty preservation company (using thedesignated Emergency Hotline).

File a fire or police report to protect future claims against Power REOsinsurance policies.

Promptly submit through DARES a completed Condition of PropertyReport Form to the Power REO Asset Manager or Pre-Marketer andinclude photographs of the reported damage or theft to document the fire,theft, vandalism, water damage and any other loss from damage.

Provide access to the property when contacted by the Insurance Adjustor. Follow-up with the Fire Department and/or Police Department for copies of

final reports and submit all final documentation to DARES.

Temperature SettingThermostats should be set at 60 during winter months and the central airconditioning should be set at 80 during the summer months. Where required,

properties should be winterized only once a year. Winterization schedules arebased on the HUD guidelines & as weather requires.

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Broker Price Opinion (BPO) ReportingThe Broker/Agent must:

Submit a BPO for each assigned property using the BPO form located inDARES. NOTE:BPOs should be updated in DARES every 60 days.

Submit a full BPO within 5 days after the property has become vacant.

Include the following information when submitting the Power REO BPOform in DARES completing it in its entirety:

o Photographs of the subject property: Exterior: Front, rear, and street scene photographs of the

subject property. Interior: All rooms (including kitchen, bathroom, storage,

etc). Damages

Note: It is preferred that the photos of the front, rear, and streetscenes are filed separately in DARES, while all other photos areplaced in a word document to be stored in DARES.

o HOA Informationo Manufactured/Mobile Home confirmation and Vehicle Identification

Number (VIN) if available. Document this information in thecomment section of the form.

o Multiple Listing Service (MLS) printouts of comparable sales andlistings used. NOTE: The listing must be placed in the local MLS asbased upon property location.

o Photographs of comparable sales and listings if not included withthe MLS printout.

o Map identifying the locations of the subject property, comparablesales, and comparable listings.

o Repair bids if applicable.o Any other supporting documentation.

Monthly ReportingMonthly reports must be submitted through DARES and must include relevantproperty and market information so an informed decision can be made about thelist price, general marketing strategy, repairs, or offers.

The Broker/Agent must: Complete inspections every 7 days on the subject property. Complete the Monthly Status Inspection Report in DARES under Routine

Tasks by the 5th day of each month.

The report summary of the previous months marketing activities and currentcondition of the property with using the following four areas for Broker/Agentcomments:

1. General Property Information2. Numeric accounting of sales activity. (This includes, but is not

limited to open house activity and results.)

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3. Feedback, recommendations, and price reduction requests, ifapplicable, from the Broker/Agent for future strategies andmarketing efforts

4. Escrow/Closing Status

Note: Monthly status reports must be completed and submitted until property isclosed.

Mortgage Insurance (MI) / Special InvestorAs a Broker/Agent, you may have an asset assigned to you that could havemortgage insurance coverage and/or special investor guidelines related to themarketing and sale of your asset. Relocation assistance, listings and offers onthese assets may require additional approvals that could extend the listing and/orsales process. The Power REO Asset Manager is responsible for themanagement and approval of all MI or Special Investor requirements.

MarketingThe optimum goal is to sell each REO property at fair market value within 120days. During marketing, the Broker/Agent will list the property and follow thelisting reduction(s) as set forth by the Asset Manager. Then, the REO AssetManager reviews any marketing recommendations from the Broker/Agent todetermine the REO Marketing Strategy. The Broker/Agent will supply an initial60-day marketing BPO. At day 85 of the initial listing, the Broker/Agent will supplya 30-day quick sale value BPO. The Broker/Agent will work with the REO AssetManager to make necessary changes to the sales price, repairs, andmaintenance of the property. Also, during marketing, the Broker/Agent works withthe Asset Manager to negotiate the best price and terms for an offer. (For further

questions regarding Broker Price Opinion or BPO, please see Broker PriceOpinion (BPO) Reporting Section for more information.)

Listing ProcessUpon completion & analysis of the three independent values, Power REO willsend a List Letter to the Broker/Agent through DARES.

The Broker/Agent must: Install a Supra-Electronic Lockbox on the front door of the property.

List the property in the local MLS within 48 hours of receipt of the PowerREO List Letter. Submit a copy of the MLS listing to the Power REO Asset Manager via

DARES within 48 hours of listing the property. Submit any additional photos to MLS that would help to improve

marketability. Conduct Open Houses. Ensure that marketing material is properly displayed.

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Manage mailo Return mail to sender, when applicable.o Ensure mail does not cause clutter.

Auction

Properties pulled for auction must: Have been marketed for 120 Days from original list date (or DOM ~ days

on market) Remain in MLS during the auction

Agent must: Participate/conduct in Open Houses with Auction Company Continue MSR (Monthly Sales Reporting) Provide a 30 day Quick Sale Value BPO on day 85 of markets that will be

utilized for accurate sale

**Broker/Agent has the opportunity to submit offers up to 2 weeks prior to auctiondate.

OffersSubmitting OffersThe Broker/Agent must:

Submit all offers through DARES. Validate the pre-qualification letter obtained from Power REOs preferred

lender. Validation of Proof of Funds (if cash) through Power REOs preferred

lender. Once we have a signed contract, earnest money must be in the form of a

cashiers check, money order, certified funds, or personal check (personalchecks must have funds verified by Escrow Company).

Using Power REOs preferred lender, please follow the below pre-qualification guidelines:

Non-cash offer(s) with the sales price equal to or greater than $40,000:

1. Pre-qualification All buyers must be pre-qualified by Power REOs

preferred lender PRIOR TO the submission of the offer into the DARESSystem and receipt by your assigned Asset Manager. If Power REOspreferred lender is not able to pre-qualify buyer, a supplemental pre-qualification letter must be provided. Power REOs preferred lender willeither provide pre-qualification or provide a validation of other lendersinformation through Prospect Mortgage pre-qualification process.

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2. Documentation - A copy of the prequalification letter from Power REOspreferred lender must be uploaded into DARES under document typePrequal Prospect Mortgage. Any additional prequalification letters shouldbe uploaded under "Prequal Letter".

3. The negotiation of any concessions for any offers must be negotiatedthrough the standard offer process.

Cash offers:

1. No longer require a validation/pre-qualification from Power REOspreferred lender.

2. Validation of funds on Cash offers is still required and must be managedby the broker/agent at time of submission of offer in DARES.

3. The negotiation of any concessions for any offers must be negotiatedthrough the standard offer process.

Selling Realtors must be made aware and must, in turn, make their Buyers awarethat non-cash offers will not be submitted until their Buyers have met therespective conditions above. If conditions are not met, offer response delaysmay occur.

Each Power REO Listing Realtor has been assigned a Loan Officer from PowerREOs preferred lender, and each Loan Officer will provide you with all of theircontact information in order to facilitate this process effectively and efficiently. If

you do not know who your assigned Loan Officer is or do not have their contactinformation, please e-mail [email protected] and they will providethat information to you.

In the event an offer does not receive a pre-qualification letter from Power REOspreferred lender within 48 business hours of submission, an email must be sentto [email protected] and the Asset Manager for response. Anydelays of greater than 72 business hours must be escalated to your Power REOSales Manager and [email protected] for resolution.

If you have any questions or issues making contact with the Loan Officer

assigned to you by Power REOs preferred lender, you may also [email protected] as a secondary contact and they will assist you inresolving them.

Any escalations related to buyers refusing to pre-qualify with Power REOspreferred lender and want their offers to be submitted must be escalated tothe Power REO Sales Manager for review and requires an approval from aPower REO Assistant Vice President prior to submitting offer in DARES.

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Accepted ContractsThe Broker/Agent must:

Submit all accepted contracts and original contracts within 2 businessdays of the buyers acceptance. The accepted contract must includethe following:

Executed Power REO Counteroffer Addendum. Note: Seller Name on contract must always be American Home

Mortgage Servicing, Inc. and NOT show Power REO ManagementServices, Inc.

State purchase contracts If the Buyer is a Corporation, provide Corporate Resolution and

Articles of Organization authorizing signor(s) on the offer. If the Buyer is an LLC, provide Corporate Resolution and Articles of

Organization authorizing signor(s) on the offer. Ensure that the Buyer has made a loan application, if applicable, and

monitor the entire loan process until closing. Follow-up on all contract contingencies to ensure timely closing. Any

contingency and closing extensions and changes to terms of thecontract require prior approval from the Power REO Asset Manager.

Immediately report any unusual problems or delays in loan processing(for example: buyer delays in completing loan application) to a PowerREO Closing Coordinator.

Coordinate the completion of any lender required repairs per thecontract terms through the Power REO Asset Manager. Note:Generally, no contractually related repairs will be completed until theBuyer has obtained loan approval. Do not submit invoices throughClosing Agents.

Submit all exception bids for related repairs in accordance with theexception repair bid policy.

Full disclosure if the Buyer is the same as Buyers Agent. Full disclosure if the Buyer is the Listing Agent or if the Listing Agent is

affiliated with a company or corporation that is submitting an offer.

ClosingOnce a closing date has been scheduled, the Broker/Agent must obtain writtenapproval from the Power REO Closing Coordinator for any requests to extend theclosing. Extensions will be subject to the Asset Managers approval.

Power REO will not pay any bills on the final HUD. For instruction on how tosubmit a reimbursement for an Exception Bid Item, please see ExceptionReimbursement Request Section.

A final walk-through inspection of the property prior to the closing may bepermitted to the Buyer only as a courtesy and must not be a contingency of thesale. Under no circumstances will the Broker/Agent permit the Buyer to walk

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through the property unaccompanied. Additionally, the Broker/Agent must bepresent during any/all inspections. Broker/Agent must contract Power REOspreferred national property preservation vendor to de-winterize for Buyersinspections.

Possession of the property by the buyer will only be authorized after the sale hasbeen closed and deed of conveyance is sent for recording.

Exception Bid Requirement(s)~ Requires Asset Manager Approval

All itemized and comparable bids must be submitted through DARES. Bids must contain a warranty from the contractor that all work performed

will conform to FHA minimum specification on lender required repairswhere applicable.

The number of bids required must follow the repair guidelines outlinedbelow for necessary or recommended repairs and maintenance.

Required # of Bids Total Dollar Amount1 $600.00 - $1500.002 $1501.00 - $5000.003 $5001.00 +

NOTE: All approvals must be submitted for approval through DARES, only if therepairs could not be addressed by Power REOs nationwide propertypreservation vendor.

Contractor DepositIf a Vendor requires a deposit, Power REO may advance funds, provided theAsset Manager or Pre-Marketer has the repair bid and the contractors W-9 onfile.

PhotographsPhotographs of completed work must be uploaded to DARES. See Major RepairsSection below for general instructions.

Major Repairs

In order for Power REO to reimburse for major repairs the below documentationis required to be uploaded to DARES. The following documents must beattached:

Photographs of the completed work. If photos of damage were notsubmitted with the initial BPO package, then before repair photos mustbe provided.

Waiver of Lien and Repair Completion Certificate.

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The Broker/Agent must: E-mail the Power REO Asset Manager notifying that all the required

documents have been uploaded to DARES.

Note: Do not send invoices to Closing/Escrow for payment. Submitinvoices within 30 calendar days of service. For instruction on how tosubmit a reimbursement for an Exception Bid Item, please see ExceptionReimbursement Request Section. (Our nationwide property preservationcompany handles Utility & HOA reimbursement(s).)

Exception Reimbursement RequestIn the event that an exception was made and the Pre-Marketer or Asset Managerapproved for work to be done through DARES, the Broker/Agent must advancemonies for all approved REO property related expenses. If the Broker/Agent is

unable to cover individual expenses greater than $600.00, an exception may bemade and such expenses may be submitted to Power REO to be processed fordirect payment to the Vendor, provided the Vendor is set up in DARES.

The Broker/Agent must:

Request approval for expenses through DARES before startingwork/repairs.

The Broker/Agent will receive a task in DARES to review approval status.

Exception Reimbursement Request RequirementsThe Broker/Agent must submit the following through DARES:

Reimbursement Request for Advances/Direct Payment to Vendorform.

Upload to DARES a copy of the invoice for every service completed(the invoice must include the actual date(s) of service).

Completed W-9 (if not previously submitted to Power REO) Copy of signed checks paid to each Vendor for all services

rendered.

Exception Reimbursement Request ~ Supporting Documentation

For work performed above $600.00, upload the below documentation to DARESunder the Actions tab in Attach Documents or Attach Photographs whicheveris applicable.

Bid(s) approval by Power REO associate for any work completed over$600.00.

After photos for all work completed over $600.00.

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Waiver and Release of Lien Repairs/Rehabilitation CompletionCertification.

** Contact the Power REO Asset Manager in advance for approval of all fees andcosts above the maximum allowances.

Failure to follow instructions and to correctly complete the reimbursementrequest will result in payment delays and may result in non-payment of thereimbursement request. Broker/Agent will receive a task informing them of thereason for non-payment.

Timeline for Submitting Final Bills after Closing SaleA final reimbursement Request for Advances/Direct Payment to Vendor formmust be submitted through DARES within 30 calendar days of the sale of theproperty. Any expenses submitted more than 30 calendar days after REODisposition will not be considered for reimbursement. These will be returned to

the Broker/Agent unpaid.

Please Note: Final reimbursement requests for Utility &/or HOAreimbursement(s), handled by our nationwide property preservation company,are due within 60 calendar days of the REO Disposition. Any expenses submittedmore than 60 calendar days after REO Disposition will not be considered forreimbursement.

Exception Reimbursement Inquiry(This process does not include utility or HOA reimbursement follow-up)Power REO processes reimbursement requests daily and reimburses the

Vendors within 30 calendar days of receipt of the Reimbursement Request forAdvances/Direct Payment to Vendor form (provided that all requireddocumentation is initially provided with the request). For invoices that have notbeen reimbursed within 30 calendar days the Broker/Agent may contact theServicing Accounts Payable department via e-mail at:[email protected].

Note: The Broker/Agent has up to 60 days from the date of submittal to requestresearch of the delay or forfeit payment.

Non-Reimbursable ItemsPOWERS REO considers the following items to be standard operating costs andis not reimbursable. Please do not include these on the Reimbursement Requestfor Advances/Direct Payment to Vendor form:

Photographs (film or processing charges) Property Inspection Fees Credit Reports Long distance telephone charges

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Mileage or travel costs Regular postage Overnight or Express Mail charges Courier Service charges Facsimile charges

Photocopy costs Penalties and Late charges Expenses incurred after the sale closing date or disposition of REO asset Other standard and typical operating costs not mentioned above

Escalation PolicyIn the event that a Broker/Agent is unable to contact the appropriate Pre-Marketer, Asset Manager, or Closer within a reasonable amount of time or hasan issue that needs to be escalated to management, they may use theEscalation Matrix to contact the supervisor for assistance.

Gift ProhibitionA Broker/Agent is prohibited from directly or indirectly providing, or offering toprovide, any gift, gratuity, favor, entertainment, reward, prepaid debit card, giftcard, cash, payment or other item of monetary value (collectively, Gifts) to anyPower REO Associate. Similarly, Power REO Associates are prohibited fromdirectly or indirectly soliciting or accepting any Gifts from a Broker/Agent.

Failure to comply with the Broker/Agent Guidelines that are set forthin this document could result in counseling, asset reduction, and/orthe removal of the Broker/Agent from the Power REO BusinessPartner Management System.