Rehab Wallet | Employee Onboarding & Training Manual | General Overview

EMPLOYEE ONBOARDING & TRAINING MANUAL

GENERAL OVERVIEW The basics of Rehab Wallet — standard practices, procedures, and tools that take a loan from start to finish

COMPANY NAME :

ADDRESS :

CONTACT :

REHAB WALLET

295 Seven Farms Dr C-107

Harris Jones

Real Estate Loans, Simplified

Charleston, SC 29492

harris@rehabwallet.com

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REH AB WALLE T • GENERAL OVERVIEW

REAL ESTATE LOANS, SIMPLIFIED

Welcome to Rehab Wallet CONGRATULATIONS Congratulations on your new position! We are excited to have you join our team, and we want to ensure that your transition is straightforward and practical. To make that a reality, we’ve prepared training manuals that will be accessible during your time at Rehab Wallet. These manuals will be updated regularly and will provide you with the tools you need to successfully fulfill your duties.

If you have any questions about the content herein, please reach out to me using the contact information below. I look forward to working with you!

On behalf of our amazing Rehab Wallet team, welcome!

Thanks, Harris Jones

harris@rehabwallet.com (864) 421-5346

EMPLOYEE ONBOARDING & TRAINING MANUAL

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Funding for your real estate investments made easy

Table of Contents GE T TING STARTED . . ................................................. 4 INTRODUCTION................................................................................... 5 MEET THE TEAM................................................................................. 6 SOFTWARE & TOOLS........................................................................... 8

HOW IT WORKS...................................................... 10 RAISING & LENDING FUNDS............................................................ 11

ACQUISITIONS....................................................... 12 BORROWER REQUIREMENTS........................................................... 13 LOAN REQUESTS............................................................................... 14 TERM SHEETS................................................................................... 15

PROCESSING......................................................... 16 CLOSING REQUIREMENTS............................................................... 17 BPO REQUESTS................................................................................. 18 DATA & DOCUMENT TRACKING...................................................... 19

SERVICING .. ........................................................... 20 REHAB DRAWS.................................................................................. 21 MONTHLY PAYMENTS...................................................................... 22 TRACKING ADVANCES & PAYMENTS............................................. 23

DISPOSITIONS....................................................... 24 PAYOFFS............................................................................................. 25 PARTIAL PAYDOWNS & RELEASES................................................. 26 PAYOFF & OVERAGE TRACKING...................................................... 27

COMPLIANCE......................................................... 28 SATISFACTIONS................................................................................ 29 INSURANCE NOTIFICATIONS.......................................................... 30 LOAN MATURITY & EXTENSIONS.................................................... 31

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Section 01 Getting Started

General Overview: Getting Started SECTION 01 INTRODUCTION MEET THE TEAM SOFTWARE & TOOLS

INTRODUCTION

What is Rehab Wallet? Learn how our company started and our philosophy.

MEE T THE TEAM

Get to know the Rehab Wallet partners and team members who make it all happen.

SOF T WARE & TOOLS

Get familiar with the software and tools our team uses on a daily basis.

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Section 01 Getting Started

INTRODUCTION WHAT IS REHAB WALLET? Rehab Wallet is one of the East Coast’s premier private real estate lenders providing small balance loan solutions to residential investors and developers.

Headquartered in South Carolina, Rehab Wallet is led by a management with a combined 40+ years of relevant professional real estate experience. Since inception, the firm has generated attractive returns for its borrowers and investors.

OUR EXPERIENCE & REHAB WALLET'S INVESTMENT PHILOSOPHY Managing Partner, Kelli Garrett spent 10 years as a real estate lender when she realized there was a demand for more money in the industry. Kelli decided to reach out to Danny Randazzo, a managing partner at PassiveInvesting.com. Why? The requests she had for loans exceeded the amount she had to lend.

When Danny brought Kelli’s “problem” to the other managing partners at PassiveInvesting.com, Dan Handford and Brandon Abbott, they were immediately interested in partnering with Kelli to provide the marketplace with a solution. The result was Rehab Wallet.

The PassiveInvesting.com Team, who specializes in apartment syndications, is extremely excited that Rehab Wallet will allow them to provide their over 2,000 passive investors with an array of innovative investment opportunities, both short-term and long-term.

Rehab Wallet’s philosophy is “Funding for your real estate investments made easy” – what does this mean? They understand what their borrowers do every day and try to keep all unnecessary paperwork off their plates. They are real people, who want you to succeed with the main focus being on the loan to value when making decisions. Plus, they offer competitive rates with quick approvals for qualified real estate investors.

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Section 01 Getting Started

MEET THE TEAM PARTNERS Danny Randazzo, Dan Handford, Kelli Garrett, Brandon Abbott (pictured left to right)

Danny Randazzo | investment analysis, planning, and finance Dan Handford | investor relations and communications Kelli Garrett | borrower relations and managing partner Brandon Abbott | asset procurement and management

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Section 01 Getting Started

MEET THE TEAM Angela Dunn Managing Director

Harris Jones Director of Operations

angela@rehabwallet.com

harris@rehabwallet.com

Ana Teixeira Director of Sales

Amanda Myers Director of Compliance

ana@rehabwallet.com

amanda@rehabwallet.com

Stacey Foster Finance Coordinator

Kelly Robinson Operations Manager

stacey@rehabwallet.com

krobinson@rehabwallet.com

Kassidy Mattingly Loan Processor

Kinsley Hall Administrative Associate

kassidy@rehabwallet.com

kinsley@rehabwallet.com

Welcome to the Rehab Wallet team!

We look forward to meeting you.

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Section 01 Getting Started

SOFTWARE & TOOLS MICROSOFT OFFICE 365 For everyday office use, we utilize Microsoft Office 365. For emails and scheduling, we utilize Outlook. For document storage, we utilize SharePoint or Teams. For team meetings and communication, we utilize Teams.

Please contact Harris Jones at harris@rehabwallet.com if you have not been given access to Microsoft Office 365 within one week of your start date.

For training and more information on how to get started using Microsoft, please visit https:// support.microsoft.com/en-us/training.

MICROSOF T OUTLOOK

MICROSOF T TEAMS

MICROSOF T SH AREPOINT

Email & Calendar

Team Communication

Document Storage & Sharing

MORTGAGE AUTOMATOR For all loan-related information, we utilize a software based in Canada called Mortgage Automator. This software tracks all loan data, keeps track of loan-related tasks, and allows us to dynamically create loan documents. There is a whole section of training documents dedicated to Mortgage Automator and the software itself provides support via email and direct chat.

Please contact Harris Jones at harris@rehabwallet.com if you have not been given access to Mortgage Automator within one week of your start date.

For more information about Mortgage Automator, please visit the link below: https://www.mortgageautomator.com.

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Section 01 Getting Started

SOFTWARE & TOOLS FLOOD ZONE DETERMINATION LINKS After our borrowers commit to a loan by signing a term sheet, we utilize the below online tools to get a “preliminary” flood zone determination.

Though these tools are primarily used by our loan processors, you may find it helpful to familiarize yourself with the below sites to better understand how these tools help us make decisions regarding insurance requirements.

There is an entire training document dedicated to this topic in the Processing manual.

FEMA Flood Map Service Center https://msc.fema.gov/portal/search

NOAA's Costal Flood Exposure Map https://coast.noaa.gov/floodexposure/

Flood Factor Risk Analysis https://floodfactor.com/

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Section 02 How It Works

General Overview: How It Works SECTION 02 RAISING & LENDING FUNDS

RAISING & LENDING FUNDS

Find out how PassiveInvesting.com and Rehab Wallet join forces to raise and lend money through our fund.

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Section 02 How It Works

RAISING & LENDING FUNDS PASSIVEINVESTING.COM | RAISING FUNDS PassiveInvesting.com manages a growing portfolio of large, quality apartment communities and self-storage facilities. Accredited investors have the opportunity to invest their money into one or more of these low-risk real estate opportunities, yielding them a return on their investment.

One of PassiveInvesting.com's funds is the Real Estate Debt Fund, otherwise known to our team as PIC FUND I, LLC. This fund has a 6% preferred return for investors, with a 90-day liquidity option and monthly compounding available.

Once passive investors (the "investors") place their money into this fund, it becomes available for Rehab Wallet to lend out to local real estate investors (the "borrowers").

REHAB WALLET | LENDING FUNDS Rehab Wallet is a hard money lender, specializing in fix-and-flip and transactional funding. We offer short-term loans to real estate investors (our "borrowers") for a fee plus interest up to 70% loan-to-value (LTV).

Though we require our borrowers to have experience flipping or purchasing real estate, we are considered an asset-based lender. Our decision to lend on a property is based almost entirely on the collateral itself. Borrower credit and employment have no impact on our decision to make a loan. We still reserve the right to ask for proof of income to make monthly payments.

Our standard terms are 6 months at 12% interest (1% per month). We typically charge a 2% origination fee, along with a small lender fee. Terms are subject to change based on the borrower relationship and other deciding factors.

Rehab Wallet retains 100% of the fees and 50% of the earned interest (the remaining interest gets distributed as a return to the PassiveInvesting.com investors).

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Section 03 Acquisitions

General Overview: Acquisitions SECTION 03 BORROWER REQUIREMENTS LOAN REQUESTS TERM SHEETS

BORROWER REQUIREMENTS

Get familiar with the borrower conditions for making a loan at Rehab Wallet.

LOAN REQUESTS

How does a borrower request a loan and who handles these requests?

TERM SHEE TS

Get familiar with the steps to prepare a term sheet using Mortgage Automator & DocuSign.

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Section 03 Acquisitions

BORROWER REQUIREMENTS While there are sometimes exceptions, we require our borrowers to provide the documents listed below prior to preparing a term sheet: PURCHASE AND/OR ASSIGNMENT CONTRACT A fully executed purchase or assignment agreement must be provided. The borrower must take title in an entity (e.g. LLC, Corporation, Land Trust), and therefore the "buyer" or the "assignee" of the contract must name this entity. This document will also provide some other crucial information, such as the property address and purchase price.

This document will be uploaded in Mortgage Automator under "Required Documents".

TARGET CLOSING DATE The closing date is the date in which the borrower plans to complete the purchase and sale transaction. This information is often included in the purchase or assignment contract and is required to make the lender title request during the processing phase of the loan.

This information will be recorded in Mortgage Automator under "Term Sheet Details".

SETTLEMENT AGENT CONTACT INFORMATION The settlement agent may be an attorney or a title company depending on the state in which they close. This information is often included in the purchase or assignment contract and is required to make the lender title request during the processing phase of the loan.

This information will be recorded in Mortgage Automator under "Custom Fields".

INSURANCE AGENT CONTACT INFORMATION The borrower's insurance agent is required to make the insurance request during the processing phase of the loan.

This information will be recorded in Mortgage Automator under "Custom Fields".

PROJECTED REHAB COSTS, ARV, AND PRELIM SCOPE OF WORK (FIX-AND-FLIPS) If a borrower will be flipping the property, the rehab costs, projected after repair value (ARV), and preliminary scope of work (SOW) will be required. While the scope of work is not absolutely necessary, it does provide additional information to the broker who evaluates the property value.

This information will be recorded in Mortgage Automator under "Term Sheet Details" and "Required Documents".

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Section 03 Acquisitions

LOAN REQUESTS Our borrowers can request a loan directly to the originators and loan officers via email, text, or phone. However, the easiest way for a borrower to request a loan is to visit our website and fill out the "Borrower" form at https://www.rehabwallet.com/borrow/. This form requests all the borrower requirements mentioned on the previous page.

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Section 03 Acquisitions

TERM SHEETS LOAN TYPES When a new loan request comes in the queue, Rehab Wallet vets the borrower and analyzes the property to make sure the deal will be a right fit for us. If there are any red flags regarding the borrower’s experience, property type, location, additional mortgages, or the borrower’s ability to make monthly payments, we then address those issues with the borrower. If everything aligns with our expectations, we then send a term sheet through Mortgage Automator.

To send a term sheet, loan originators and officers must create a new loan. Loans can be one of two types: Standard Loan F ix and Flip 1.Purchase 1.Purchase 2.Refinance/ ETO “equity take out” 2.Refinance / ETO “equity take out” Each type has different fields. Standard loans do not include rehab funds, and refinance loans are for properties that the borrower already owns.

WHAT DOES A TERM SHEET INCLUDE? Our term sheets include the terms of the loan (of course), our closing attendance requirements, a consent form to access and share information, and an introduction to our team and roles during the phase of the loan.

SENDING TERM SHEETS Mortgage Automator includes an integration with DocuSign. Once all the terms of the loan are finalized, we simply locate the term sheet in the "Documents" section of Mortgage Automator, confirm, sign, and send.

An email will go out to each guarantor of the loan for them to commit to and DocuSign the term sheet.

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Section 04 Processing

General Overview: Processing SECTION 04 CLOSING REQUIREMENTS BPO REQUESTS DATA & DOCUMENT TRACKING

CLOSING REQUIREMENTS

The term sheet was signed...now what? Learn what is required to close a loan with Rehab Wallet.

BPO REQUESTS

Understand how Rehab Wallet evaluates their collateral prior to funding.

DATA & DOCUMENT TRACKING

Get familiar with where Mortgage Automator stores all the information pertinent to closing.

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Section 04 Processing

CLOSING REQUIREMENTS While there are sometimes exceptions, we require the borrower and attorney to provide the documents listed below prior to authorizing a transaction: BORROWER & GUARANTOR DOCUMENTS Each borrower on the loan must provide their articles of organization and operating agreement. If the individual requesting the loan is the sole interest holder of the entity and their name is listed on the articles of organization, we will waive the operating agreement requirement.

In addition, any individual with 10%+ interest in the entity must be listed as a guarantor of the loan and provide a valid US driver's license or passport.

BANK & PAYMENT DOCUMENTS The borrower must provide a voided check or other bank document that includes the account information to be used for monthly payments, draws, and/or payoff overages. If the borrower makes monthly payments, the loan processor will also send out an ACH authorization form for the borrower to sign, which allows Rehab Wallet to pull payments automatically via ACH. INSURANCE DOCUMENTS The borrower must provide proof of hazard and liability insurance prior to closing. In addition, if the property is in a hazardous flood zone, we will also require flood insurance. Insurance premiums must be paid in full at closing or prior.

SETTLEMENT AGENT DOCUMENTS The settlement agent must provide lender title insurance, a closing protection letter (CPL), settlement settlement, and wiring instructions prior to closing. The property must be free of any major title issues, and the settlement agent must "balance" — or confirm — our wire amount.

CLOSING PACKAGE Prior to closing, our loan processors prepare and provide the settlement agent with our closing package. We must receive fully executed copies of the closing package, deed/title, and settlement statement prior to authorizing disbursement. After closing, the settlement agent mails us the original documents to keep on file.

These documents will be uploaded in Mortgage Automator under "Required Documents".

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Section 04 Processing

BPO REQUESTS Rehab Wallet must verify the value of the collateral before authorizing a transaction. While most lenders request an appraisal, our closings are typically fast and can't wait weeks on an appraisal.

Instead, we utilize broker price opinions (BPOs). For each market we do business in, we locate a broker and build a long-term BPO partnership with them. For a small fee, they drive by the property, take an exterior photo, run some comps, and provide a value analysis.

For fix-and-flip loans, we provide the broker with the rehab scope of work and they evaluate the after repair value (ARV) of the property. For standard loans, the broker evaluates the current market value of the property. Our loans do not exceed 70% loan-to-value ratio (LTV), up to 75% for a handful of VIP borrowers. If the BPO comes back low, terms are renegotiated with the borrower.

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Section 04 Processing

DATA & DOCUMENT TRACKING CLOSINGS TRACKER To keep our team on the same page with so many moving parts, we maintain a Closings Tracker that houses all the data for upcoming closings and dispositions.

Each row on the "Acquisitions" sheet represents a closing.

You will find the projected closing date, loan amount, settlement agent, wire amount, and other pertinent information for each closing listed on this spreadsheet.

While this may seem cumbersome and challenging to navigate, our team likes the comprehensive view of closings that this tracker provides. Real estate closings change frequently, and this tool allows us to communicate and log updates in a single, central hub.

DOCUMENT RECEIPT & APPROVAL TRACKING Mortgage Automator provides a section for each loan to upload related documents. The borrower requirements and closing requirements mentioned previously are all uploaded to the "Required Documents" section of the loan.

After uploading a document to the proper category, the status of the document can be changed from "Waiting to Review" to: • • • •

Reviewing Changes Required Rejected Accepted

Uploading required documents and marking them appropriately upon receipt is crucial to team collaboration and the successful facilitation of Rehab Wallet's loan closings.

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Section 05 Servicing

General Overview: Servicing SECTION 05 REHAB DRAWS MONTHLY PAYMENTS TRACKING ADVANCES & PAYMENTS

REH AB DRAWS

Learn the draw process once the borrower has closed and completed part of their scope of work.

MONTHLY PAYMENTS

Understand when monthly interest payments are due and how they are collected.

TRACKING ADVANCES & PAYMENTS

Get familiar with where Mortgage Automator stores and displays draws & monthly payments.

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Section 05 Servicing

REHAB DRAWS Once a borrower has completed part (or all) of the scope of work for a fix-and-flip loan, they will request a rehab draw. We ask that they provide: LIST OF COMPLETED WORK The borrower must provide a list of the items completed and the cost for each, in accordance with the scope of work for the project.

EVIDENCE OF COMPLETED WORK Evidence of the work completed or materials purchased must be provided in the form of phtographs, videos, invoices, or receipts.

Rehab Wallet understands that the scope of work may change in the middle of a project. While we will not provide more rehab draws than the loan originally alloted for, we will allow a borrower to alter their scope of work (provided that the new budget still supports the after repair value, or ARV).

We promise a 24-hour draw turnaround time, and most draw requests are processed the same day they are submitted for review. Funds are received via ACH directly into the borrower's account.

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Section 05 Servicing

MONTHLY PAYMENTS While there are some exceptions, most borrowers make a monthly interest payment for each loan they have with Rehab Wallet. Our standard terms include a 12% interest rate, so borrowers pay 1% of the total loan each month in interest.

EXAMPLE:

$100,000 × .12 ÷ 12 = $1,000 (or 1%) Total Loan × Interest Rate ÷ Months in Year = Payment

Payments are made in arrears and are due on the first (1st) calendar day of every month, based on when the borrower closed: CLOSING DATE = NOVEMBER 1st The borrower's first payment would be December 1st, which would cover interest for the entire month of November.

CLOSING DATE = NOVEMBER 15th At closing, the borrower would pay per diem interim interest (November 15 – November 30).

The borrower's first payment would be January 1st, which would cover interest for the entire month of December.

Monthly payments are submitted to Rehab Wallet's bank via a NACHA file exported directly from Mortgage Automator.

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Section 05 Servicing

TRACKING ADVANCES & PAYMENTS TRACKING ADVANCES Our team utilizes two methods of recording and tracking rehab draws (or "advances"). New draws can be added in the "Add an Advance" section of Mortgage Automator. After submission, all advances are listed under "Term Sheet Details".

In addition, our team also records and tracks rehab draws on the closings tracker mentioned previously.

Once a draw is submitted to the borrower's account via ACH, we update the closings tracker accordingly.

The first method provides the total remaining rehab facility, while the second method helps our team project the total number of draws and estimate future draw amounts. Note that four (4) draws are available for free. After the fourth draw, a $100.00 fee applies and is deducted from draw proceeds.

TRACKING PAYMENTS Our team utilizes two methods of recording and tracking monthly payments. Mortgage Automator automatically keeps track of monthly payments, and each month our team marks the payments as "submitted" once they are uploaded to our bank system for processing.

You can view the monthly payments for a specific loan by going to the loan view, clicking "Ledger" in the top right-hand corner, and then filtering by "Borrower Payment".

In addition, our team also records and tracks monthly payments on our Payment Schedule spreadsheet, which is extremely useful when cross-checking the software.

The first method makes payment submission quick and painless, while the second method helps our team get an overall view of the total volume of future payments.

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Section 06 Dispositions

General Overview: Dispositions SECTION 06 PAYOFFS PARTIAL PAYDOWNS & RELEASES PAYOFF & OVERAGE TRACKING

PAYOFFS

When the borrower is ready to sell or refinance, our team steps in and provides a payoff statement.

PARTIAL PAYDOWNS & RELEASES

Learn what happens when a borrower wants to release only part of the loan collateral.

PAYOFF & OVERAGE TRACKING

Get familiar with how we track payoffs and interest overage once payoffs are received.

EMPLOYEE ONBOARDING & TRAINING MANUAL

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Section 06 Dispositions

PAYOFFS When a borrower is ready to sell or refinance, they reach out to us for a payoff statement. Our payoff statements include step-by-step instructions for the settlement agent, a breakdown of the balance due, and our wiring instructions. The total balance due includes: PRINCIPAL BALANCE The loan amount that was advanced to the borrower during the term of the loan. This does not include any rehab draws that were not taken.

DUE & UNPAID INTEREST Each payoff statement is "through" a specific date. This date may not always match the closing date, but is typically 3–5 business days after the scheduled closing date. Any unpaid interest, future monthly payments, and per diem interest "through" that date will be included on the payoff statement.

DUE & UNPAID FEES If a borrower requested an extension during the term of the loan, they were likely charged a fee for that extension. By default, we allow two (2) 3-month extensions for a fee of 1% and 1.5%, respectively. Any past due fees and extension fees are applied to the payoff statement.

OVERAGE WIRE FEE Since settlement agents typically request a payoff statement 3–5 business days after the scheduled closing date, there is often an "overage" on the payoff wire. Rehab Wallet returns this overage to the borrower after payoff is received and charges a small fee for this transaction.

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Section 06 Dispositions

PARTIAL PAYDOWNS & RELEASES Some loans in our portfolio may include more than one property, or "blanket properties". In many cases, our borrower won't pay off the entire loan at once. Instead, the borrowers will request to release one property at a time as they become ready to sell or refinance.

In these cases, we utilize the estimated value of each property (as provided by the BPO) to assign each property a "release value". As properties are released, the loan must not exceed 70% of the total value of the remaining collateral.

Each release value is documented in a "release schedule", which is signed by the borrower and provided to the settlement agent facilitating the payoff transaction. After closing, the settlement agent wires the exact amount listed as a "partial paydown" for each released property.

TRACKING PARTIAL PAYOFFS Our team records partial releases in Mortgage Automator in the "Partial Paydown" section of the loan. Once a paydown is made, the principal balance and monthly interest payments are reduced accordingly.

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Section 06 Dispositions

PAYOFF & OVERAGE TRACKING TRACKING PAYOFFS Our team utilizes two methods of recording and tracking payoffs. In Mortgage Automator, payoff projections are logged and calculated in the "Payoff" section. Once a payoff wire is received and confirmed in Mortgage Automator, the status of the loan changes automatically.

In addition, our team also records and tracks payoffs in the Expected Recycle spreadsheet.

We refer to payoffs as "recycled" because those funds can be put back into queue for another loan.

The first method keeps our records in Mortgage Automator up-to-date, while the second method helps our team project recycled funds for each upcoming acquisition.

TRACKING OVERAGES When a borrower's payoff includes an overage of per diem interest, our team returns the additional funds to the borrower via ACH. All overages are calculated and recorded in the Expected Recycle spreadsheet on the "Disposition Overage" sheet.

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Section 07 Compliance

General Overview: Compliance SECTION 07 SATISFACTIONS INSURANCE NOTIFICATIONS LOAN MATURITY & EXTENSIONS

SATISFACTIONS

Learn how we stay compliant by satisfying the mortgage once payoff is received.

INSURANCE NOTIFICATIONS

Get familiar with the different types of insurance notifications and how we follow up accordingly.

LOAN MATURIT Y & EXTENSIONS

Understand our processes for granting an extension when a loan is approaching maturity.

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Section 07 Compliance

SATISFACTIONS Once a borrower pays off their loan (or releases collateral from the loan), our compliance team works with the settlement agent to get a "mortgage satisfaction" or "partial release". These documents are executed, notarized, and recorded in the county where the property is located.

MORTGAGE SATISFACTION A mortgage satisfaction states that the entire loan has been paid in full and that the lien on the property is hereby released.

PARTIAL RELEASE A partial release states that a portion of the collateral has been released from the mortgage, but the lien is still in full force and effect.

Lenders are required by law to satisfy paid mortgages in a timely manner.

Because our team relies on the settlement agent to draft and record these documents, we have to act quickly and maintain communication with the settlement agent to ensure we stay compliant.

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Section 07 Compliance

INSURANCE NOTIFICATIONS Our borrowers are required to list Rehab Wallet (or PIC FUND I, LLC) as the mortgagee on their hazard, liability, and flood insurance (if applicable). If anything changes or if the policy is new or pending cancellation, we get a notification via mail or email as the mortgagee. Upon receipt, we must parse through and follow up on all the insurance notifications to determine what is relevant and needs our attention.

CANCELLATIONS Insurance cancellations are always a red flag. If the loan has not yet been paid off, our team jumps on these notifications immediately and contacts the borrower to request reinstatement.

FORCE-PLACED INSURANCE Every property in our loan portfolio must have insurance at all times. There are no exceptions. If a policy is pending cancellation and the borrower does not provide proof of insurance in a timeline manner, we reserve the right to initiate force-placed insurance on the property.

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Section 07 Compliance

LOAN MATURITY & EXTENSIONS Our standard loan term is 6 months, with two (2) three-month extensions for a 1% and 1.5% fee, respectively. When one of our loans is approaching maturity, our compliance team reaches out to the borrower and gets an update on: EXIT STRATEGY The exit strategy for a property may change during the term of the loan, and may be dependent on the market, the property condition, or other deciding factors. As a loan approaches maturity, our team likes to "keep tabs" on the borrower's exit strategy.

REHAB PROGRESS (IF APPLICABLE) For fix-and-flips loans, we request an update on the rehab progress. Has the borrower taken all their available draws? Has the borrower taken no draws? Are there any obstacles we aren't aware of, like termite or foundation damage that has delayed progress?

EXPECTED PAYOFF If the borrower does not expect to sell or refinance the property soon, then they will likely need an extension.

If the borrower has an extension available, we notify them of the applicable fees and start the extension process in Morgage Automator under "Extension / Mid-Loan Adjustment".

The borrower must provide proof of insurance through the length of the extension if not already provided.