1. Bellwether Enterprise Real Estate Capital, LLC Lender Asset Management Requirements January 8, 2015

2. COMMERCIAL PROPERTY TYPES Multifamily Manufactured housing (MHP) Office space Industrial, Warehouse and Distribution Facilities Retail space Medical facilities Hotels Parking garages Self-storage facilities 2

3. AGENCY BUSINESS MODELS Freddie Mac vs. Fannie Mae –Freddie Mac delegates limited decision making authority to Servicers Freddie Mac re-underwrites the loans it buys Lender/Servicer has little or no Balance Sheet risk –Fannie Mae delegates a lot of decision making authority to Servicers Fannie Mae relies on Lenders to underwrite loans Lender/Servicer has Balance Sheet risk so Asset and Risk Management are paramount 3

4. SERVICING VS. ASSET MANAGEMENT Servicing tends to be cash management and recordkeeping focused. Asset Management tends to be Loan, Borrower, Key Principal and Property (collateral) focused. 4

5. LOAN PRODUCTS & FEATURES Fannie Mae Loan Products: Permanent loans Bond Credit Enhancements Forward Commitments (Unfunded) Other Loan Products: Interim/Bridge loans Mezzanine loans Representative Features (All Products): Loan size up to $200 million 1 st, 2 nd & 3 rd Lien Status Terms of three to 30+ years Fixed & Variable Rates Amortization up to 30 years Non-recourse Assumable Equity & joint venture structures 5

6. ASSET MANAGEMENT FUNCTIONS It all starts with the Mortgage Loan Documents! Make sure you read and understand your loan documents. Relying on counsel to inform you of what you are signing up for leaves many business issues subject to misinterpretation. Example 1: Replacement Reserve reimbursements are governed by Article 13 in the Multifamily Loan and Security Agreement. Example 2: Property insurance requirements. 6

7. ASSET MANAGEMENT FUNCTIONS Financial Reporting (Property, Guarantor, Principal) Borrower / Guarantor / Principal Reviews Reserve Administration –Repair/Rehab –Replacement –Operating –Achievement Physical Inspections Insurance Coverage Compliance Insurance Casualty Losses Commercial Lease Approvals 7

8. ASSET MANAGEMENT FUNCTIONS Post-Closing Transactions –Property Transfers, including Name Changes –Borrower Transfers (GP, KP, ILP, Other Principals) –Year 15 Related Transfers –Partial Collateral Releases –Easements –Condemnations –Management Changes –Changes in Use of Property –Property Zoning/Transfer of Development Rights –Condo Conversions –Mineral Rights/Subsurface Oil/Gas Leases 8

9. ASSET MANAGEMENT FUNCTIONS LIHTC Compliance Special Servicing (Delinquency Management, Default Management, Watchlist/Loan Rating, Workouts, Litigation) Ad Hoc Requests Investor Reporting 9

10. ASSET MANAGEMENT FUNCTIONS QUESTIONS? 10