Assessment Reporting ServiceScott Swanson, Director – Southeast & Great Lakes

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• Invested millions of dollars in technology.

• Manage and monitor over 500,000 accounts.

Chronos is among the most experienced companies in real estate and mortgage services:

• United States Department of Housing and Urban Development

• United States Department of Treasury

• Largest servicer in the nation for:

• Successfully sold over 40,000 homes over the past 3 years valued at over $3 billion.

Sperlonga is an affiliate of Chronos Solutions, Inc.

• Other platforms are in varying stages of development and we can build custom interfaces for management companies with proprietary systems.

• We are integrated or working with TOPS, VMS, CINC, Caliber, and Condo Manager.

• Sperlonga has created an automated technology that integrates with your association management software.

Fully Integrated & Automated

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• Transmits on-time and late payment statuses each month to Equifax.

• Reporting regulated by Fair Credit Reporting Act (FCRA)

Time Tested & Industry Proven

• Same mechanism used by banks, mortgage lenders, credit card issuers, and the auto industry for decades.

• We report assessments, special assessments, and late fees.

• Flexible and fair reporting for all owners.

• Our technology is dynamic and customizable for each association’s delinquency policy timelines.

• Creating our technology was incredibly difficult because each association has their own unique delinquency policies.

Customizable Reporting

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6 Association Reporting Timeline

• Our reporting follows FCRA timelines which can benefit the homeowner

• The account status that is reported each month is determined by the delinquency policy for each homeowner association.

• Reported as “Delinquent with a balance” if payment is made 31 days or more after the due date

• Reported as “Current with a balance” if payment is made prior to 30 days past the due date

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• Associations rely on methods that occur late in the delinquency lifecycle.

• Current practices are outdated, reactive, and do not leverage technology.

Current Delinquency Practices

Reactive Methods• Demand Letters• Certified Mail• Collection Attorneys • Liens• Litigation• Personal Judgements• Foreclosures

These reactive methods are used when it is too late, and the problem is too big.

These methods are Outdated, incredibly slow, and extremely expensive.

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& Management

Assessment reporting has the ability to:

• Reduce legal costs.

• Improve association cash flow.

• Dramatically reduce delinquencies.

• Improve probability of capital improvement loan approvals.

• Expand individual access to credit.

Benefits Associations, Owners,

• Reduce specific budget line items.

• The HOA assessment is weighed heavily by the credit agencies because it is a revolving credit line.

• Typically after 1 year of current reporting on a revolving trade line, an individual can expect to see a significant point increase to their credit score.

• Higher credit scores can translate to lower rates on car loans, credit card rates, and home mortgage loan rates.

Personal Score Increase

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• On pace for 45.6% annualized reduction to delinquent balances.

Verifiable reductions to Accounts Receivables:

• 160-180 Day past due accounts:

Reporting Analytics

• 180 Day+ past due accounts:

• 30-60 Day past due accounts:

• 90-120 Day past due accounts:

-37%

-87%

-41%

-49%

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• Automated reporting provides protection to the association and individual owner.

• Market crashes are cyclical reoccurrences that are an historical fact of life.

• The most important question is will you have protection in place when it does?

• Protects home values against future market segment downturns and unforeseen crises.

Protect Your Financial Health

Powerful Differentiation Tool

• Our reporting can be offered À la Carte to your associations, allowing boards to customize their service packages.

• Establishing the service is no cost to a management company and when an association wants to take part in the program they simply sign our HOA agreement to activate the service.

• Once an association adopts the service, there is no cost or billing until after reporting begins.

• Our service can be used as a powerful differentiator when on-boarding new accounts and as a client retention tool.

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Specializing in privacy and consumer reporting. Mr. Marquis served as General Counsel of Trans Union LLC for over 24 years. He also served on the Federal Reserve Board's Consumer Advisory Council.

• "There should be no fear that an HOA is operating in the capacity of a collection agency when that HOA is reporting account information to a credit bureau any more than Chase or a landlord or a cell phone company become collection agencies when they report."

Mr. Oscar Marquis, Esq.

• “It is well-settled law that FDCPA applies only to debt collectors, not entities to whom money is owed.”

• “…reporting account information to a credit bureau will allow associations to achieve and maintain the same cash flow management leverage and capabilities that banks and lenders have when they report account information."

• "Adding homeowner assessments to credit reports helps consumers as well as HOA's without adding any significant business or legal risk to the HOA's."

• “…Fair Credit Reporting Act provides immunity from individual consumer lawsuits for reporting information. Only Regulatory agencies can pursue violations.”

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*This is not legal advice. Please consult with your own counsel regarding legal requirements.

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Currently partnered with management companies in every market

Our solution has been adopted and is being deployed with remarkable success by some of the most innovative companies in the industry.

Aegis Community Management Ardent Residential Atlanta Community Services Chambers Management Chesapeake Bay Management Corner Property Management CPi-MGMT Cummings Property Management DANA Properties Danella Realty and Management Co. Exclusive Association Management EZR Management First Community Management Gibson & Associates Golden Valley Property Management GNO Property Management GW & Associates Harrison & Lear Hillcrest Property Management HOA Books HOA Solutions Homeowner Management Services

Management Company Partners Homeowners Association Management Landmarc Real Estate Majerle Management Majestic Condominium Management Maredith Management Meinc Hoam New Concepts Patriot Management PO Solutions Priestley Management Company Property Management Associates PS Property Management Quasar Property Management Quiza Management Redbrick Property Management Signature Property Management Summit Management and Consulting The CAM Team Tidewater Property Management WestGate Properties Worth Ross Management Company

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Before We ProceedLet’s make sure we are a good fit to work together. Help us understand your company a little better…

“Coming together is a beginning; keeping together is progress; working together is success.” ~ Henry Ford

• What is the main motivation of the business?• What are your most pressing issues?• What are your top growth initiatives?

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Next Steps

05 Market Rollout

01 Partnership Agreement

02 Portfolio Analysis

03 Manager Training

04 Equifax Credentialing

Goals and Benchmarks

Proprietary and Confidential, @2016 Sperlonga Data And Analytics Systems LLC. All rights reserved 17

Are you ready to be added to the list of innovators, and change the industry for the better with Sperlonga?

Click the e-mail link at the top of the screen to learn how to establish our service now for your associations…They will thank you!