1. Tax Cert Sales Define Phase Tollgate Green Belt Candidate: Audrey Hopkins Project Manager: Tom Steinker Date: March 1, 2012

2. Lean Six Sigma Green Belt Training 2 Agenda Produce a Project Charter Document High level process Conduct VoC Next Steps

3. Lean Six Sigma Green Belt Training 3 Project Charter: Bank Loan Process Project C I A MD Business Case:Project Goal Statement: The Bank may lose lien position on properties for secured Home Equity accounts whose tax certificate is bought at auction. We were at risk of losing $13 million in property values last year in one HOST system alone. The total value of taxes and associated expenses incurred was $4.2 million. In the last month we lost $221,567.58 in account balances. Additionally, there are OCC foreclosure procedures impacted by this process. Goal 1: Reduce the number of times the bank incurs a property loss by 80% from a average of 5/month to 1/month. Financial Impact: Estimated annualized lost value of account balances based on year to date is 2.65 million. Benefit Category: Cost Avoidance. Problem Statement:Project Timeline: If the property owner does not redeem the property by paying the back taxes, fees, assessments and penalties owed before expiration of the redemption period, and the investor chooses to proceed with foreclosure action, the property will be sold at auction for the amount of tax liability or some minimum value as placed by the Taxing Authority. In 2011, the bank paid out 1.1 million dollars in taxes and fees for 148 accounts in one HOST system (FDR) alone. Define 2/2/12– 2/29/12 Measure 3/1/12- 4/1/12 Analyze 4/1/12- 4/15/12 Improve 4/16/12- 5/1/12 Control 5/1/12- 5/15/12 Project Risk Assessment: Identified Risks: Possible causes outside of department and influence; multiple geographic locations; and lack of data. Risk Mitigation Plan: Include stakeholders in the project; use SMEs from multiple geographic locations; and we have already started to collect data. Project Scope:Team Roles: Current Scope: Limited only to loss by tax sale notice Secured home equity accounts serviced in Brecksville. Out of Scope: First Mortgage (Miamisburg) Project Sponsor – Steve Cory, SVP, Executive Sponsor, Tom Steinker, VP Default Management, Working Sponsor Process Owner – Kathy Prorock, Manager Real Estate Green Belt – Audrey Hopkins Mentor – Janet Malecki Core Team Members – Emily Kinzig, Vahn Knight Subject Matter Experts (SMEs) – Pat Wickham, Mary Lucyk, Rhonda Phelps Stakeholders – Steve Cory, EVP Lending Services, Adam Vidmar, Finance PM, Default Management

4. Lean Six Sigma Green Belt Training 4 Project Risk Assessment - Bank Loan Process Areas of highest risk involve “possible causes outside of department and influence”, “multiple geographic locations”, and lack of data. Mitigation for “out of department” causes is to include both up and downstream stakeholders in the project. Mitigation for risk associated with multiple geographic locations is to have one representative from representative location assigned to the project as subject matter experts. Mitigation for lack of data is to establish ongoing data collection mechanism which will continue through Control C I A MD

5. Lean Six Sigma Green Belt Training 5 SupplierInputProcessOutputCustomer Tax Lien Investor (usually through attorney) Branch Office Loan Centers County US Post Office Legal Notice (US mail, Branch office) Equity Analysis Equity analysis decision Customer Letter Satisfy taxes and/or fees on behalf of customer Bank Loan Borrower County C I A MD We are at risk from external Third Parties because part of the process resides outside our control SIPOC - Bank Loan Process Final Decision Perform equity analysis Contact the Borrower Research validity of cost and fees Receive summons & complaint or sales notice County arranges for sale Borrower goes delinquent on taxes

6. Lean Six Sigma Green Belt Training 6 CUSTOMERVOICE DATAPRIORITYCTQSPECIFICATION Default Management I want to reduce amount of times we lose property YSecure lien positionNo more than 1 missing notice/month impact Default Management I want to avoid third parties buying the taxes YReceive notification prior to sale Real Estate Foreclosure Team I want to receive notice of sale on time XTimely notificationHave at least 1 week’s notice before the sale Real Estate Foreclosure Team I want minimal FTE impact Not Critical To Project Staffing level0 new hires C I A MD Voice of the Customer CTQs - Bank Loan Process Reduce the number of times the bank incurs a property loss

7. Lean Six Sigma Green Belt Training 7 Next Steps Measure Phase Create detailed current state process Conduct Measurement Systems Analysis Determine Baseline (Y)