Broker Procedures

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                       780 94 Ave N. ● St. Petersburg, FL 33702 ● 727-497-4650


                                       Broker Procedures

I have received and read the Meridian Asset Services Procedure Manual.

I agree to adhere to all of the terms and conditions listed for the following services:

REO Sales and Marketing

I am forwarding the following documentation along with this acknowledgment:

   Current copy of the Declaration page from my Errors & Omissions or Professional
    Liability Insurance Policy
   Current copy of my state real estate license
   Resume
   W-9
   List of Zip Codes that I service within a reasonable proximity to my office
   E-mail address
   Meridian website: www.masreo.com *referenced documents are found on our website

I understand that failure to adhere to the terms and conditions listed in the Broker Procedures
may result in termination of my services or hold me or my company liable for damages.
Meridian reserves the right to cancel services at any time for any reason.



Signature                                                           Date


Print Name                                                          Email Address



                            Completed forms may be E-mailed or faxed:
                                    Meridian Asset Services
                                  NewAgentForms@MASREO.com
                                       Fax: 727-683-9563




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                                  REO Sales & Marketing
                                              Timeline
As a Meridian agent you are acting as a representative of our company. Agent performance will
be closely monitored for professionalism, ethical practices and adherence to expected REO
property management and disposition time-frames. Agent selection is based upon performance
and cooperation in working with affiliates.
TASK                                                             AGENT           Calculated From
Initiate Property                                              Business
Referral acceptance                                          1 day
Complete occupancy status report                             1 day
Secure Home                                                  1 day
Insurance checklist                                         2 days
Property cleanup                                            2 days
Enter listing in MLS                                        5 days
Occupied = Negotiate Cash-for-Keys *                         1 day
HOA form to MAS                                             5 days

Broker Price Opinion (BPO) from vacancy                     5 Days

Second opinion BPO from vacancy                             5 days

Send Executed List Agreement (from receipt of values)       3 days

Submit Offers                                               2 days

Review Offers                                               2 days

Offer Accepted                                             Same Day

Overnight Original Contract to Meridian                     5 Days

Fax copy of contract to attorney for review                 5 Days
(If applicable)

Execute Contract                                            3 days

Monthly Status Report                                      Every 30
                                                            Days




                                Verification of Occupancy

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The Real Estate Agent must communicate the occupancy status (complete online task and
communicate by e-mail) to Meridian within 24 HOURS after the property assignment regardless
of weekends or holidays.

       Suggested Methods to Determine Occupancy


                      Visit The Premises
                       Agent should leave their business card on the front door if it
                       appears there is no one home.


                      Contact The Local Utility Company
                       Inquire if the utilities have been disconnected. If they are
                       connected, the name on the account should be acquired.


                      Contact U.S. Postal Service
                       Verify if change of address has been initiated.


                      Visit Neighboring Properties
                       Visit the neighbors on both sides of the property to inquire
                       about any activity at the property.


                      Contact the HOA (if applicable)
                       Fax or e-mail the “Agent Property Tax and HOA Information Form” to
                       Meridian Asset Services immediately. The form is located on our
                       website, www.masreo.com.


                      Property Registration
                       Within three days of property assignment, the Agent is responsible for
                       registering properties with local municipalities following specifically
                       mandated guidelines* for vacant, non owner occupied and occupied
                       properties.
                       The agent should confirm with the local housing authority any procedural
                       requirements and specifically required forms for the area before
                       submission, this will expedite the process.
                       *Property registration guidelines are located on our website at
                       www.masreo.com.




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                              Vacant Property Procedures
To prepare the vacant property for marketing, please ensure the following steps are completed.

               Vacancy Notification
                Notify Meridian of the vacancy status within 24 HOURS..
        
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                Coordinate agent access for 2         BPO
                Meridian will order a second opinion BPO upon notification of vacancy. The BPO
                source company’s agent will contact you for access to the property. In the event
                you have not been contacted within three days, it is your responsibility to notify
                Meridian.
               Contact Your Asset Manager Regarding Personal Property on the Premises
                In the event personal property is found on the premises, do not re-key or remove
                items. Contact your Meridian asset manager immediately for further
                instructions.
               Secure The Premises
                All locks must be re-keyed by a licensed, bonded locksmith, and the premises
                secured within 48 HOURS of vacancy.
               Have the Property Winterized (As applicable)
               Detailed MAS winterization guidelines and checklist are found on our website at
               www.masreo.com. In general for northern cold weather states, winterization
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               should be completed no later than September 30 and southern states no later
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               than November 30 . Completing winterization by these deadlines is critical. If
               you have questions regarding our winterization instructions or are unable to
               access them via our website, contact your asset manager immediately.

               Coordinate the Removal Of Debris
                All debris (excluding personal property) found at the property should be removed
                by a licensed, bonded contractor and invoices forwarded to Meridian for
                reimbursement. If debris removal bids exceed $500.00, prior approval must be
                obtained from Meridian. “Before” and “after” photos of debris removal are
                required. Work must be completed by a licensed and bonded contractor or
                expenses will not be reimbursed.
               Complete the Broker’s Price Opinion (BPO)
                Complete the Broker’s Price Opinion (BPO) online through the REOTrans
                website within five (5) days of vacancy. Please include a minimum of 30
                photos detailing the interior and exterior of the subject property, and one photo of
                each comparable. Digital photos may be uploaded via the REOTrans website. If
                you are unable to provide digital photos, hard –copy photos should be mounted
                onto paper and labeled prior to sending.
              Complete the “Initial Condition Inspection” form
                This form is located on our website: www.masreo.com
              Order Bids and Inspections
                One complete contractor’s bid for repair is required on all files. Depending on
                whether the property is a repair candidate, we may also require a roof, pest, and
                HVAC inspection and additional rehab bids. Check with your asset manager to
                determine what bids are required.

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                             Occupied Property Procedures
A timely eviction is critical in saving money and valuable marketing time. It is important that you
open dialog with the occupants to understand their needs and concerns and convey the specifics
to your asset manager.

           Complete a Drive-By BPO

            If the property is occupied, a drive-by BPO, which includes exterior photos of subject
            and street scenes, must be emailed to your asset manager within 24 hours of
            determining occupancy.

           Obtain Occupant Information
            Open dialogue with the occupant(s) to obtain the following information:

              1. Names of all Occupant(s)

              2. The time-frame Occupant(s) plan to vacate the premises


           Coordinate Cash-For-Keys When Possible
            (Detailed procedures are outlined on the next page)

             Inform the occupant that Meridian has initiated an eviction preceding, which
            will continue until property is vacant. Discuss relocation assistance and point out that,
            should a cash for keys agreement be reached, the eviction action will continue until
            the actual cash for keys settlement at the time the property is vacated.


Marketing An Occupied Property
In some instances Meridian may consider selling occupied properties. If you feel that your current
assignment might be a good candidate to market occupied, discuss the situation with your asset
manager and get their prior approval. If we are considering marketing occupied, always request
permission from the occupants to view the interior. Offer a $100.00 incentive for their cooperation
in allowing you to inspect the property and complete your BPO. Inform the occupants that a
second broker price opinion will be ordered as well.




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                                  Cash-For-Keys Procedures
To encourage occupants to vacate, a “relocation assistance” cash-for-keys offer must be
extended within 3 days of determining the property is occupied. Meridian authorizes an initial
negotiation amount up to $500.00 per unit, providing the occupant(s) agree to vacate the
premises within fifteen days of your initial contact.

1.      Have the Occupant(s) Sign the “Cash For Keys Release Agreement”
        Meridian’s “Cash For keys Release Agreement” must be completed and executed by you
        and the occupant(s).

2.      Request Cash-For-Keys Check Issuance
        Once the “Cash For Keys Release Agreement” is signed by the occupant(s), please e-
        mail or fax the signed agreement immediately to your asset manager. Meridian will
        generate a check made payable to the occupant, and send it by overnight delivery to you.


        Day of – Cash For Keys (CFK) Requirements

        In order for the occupant(s) to receive the cash for keys relocation assistance check, the
        following minimum requirements must be met the day the property is to be vacated: The
        check should only be released to the occupant(s) after you have confirmed the following
        conditions are satisfied.

           General Property Condition
            The property must be in “broom cleaned” condition upon vacancy, and all personal
            property and trash should be removed. Exterior trash and debris must be removed
            and the lawn mowed as well (weather permitting).

           Fixtures and Appliances
            All attached fixtures and installed appliances will remain as installed. All permanent
            landscaping features (items not “potted”) must also be left unharmed.

           Release of Keys
            All keys, garage door openers, community keys, gate openers and cards, must be
            given to the Meridian agent.

        If the above conditions have been met, the cash for keys acknowledgement must be
        signed by both you and the occupant(s) before the occupant(s) are given the check.

3.      Photograph the Interior/Exterior of The Property
        Photograph the interior and exterior of the property once the cash for keys settlement
        with the occupant(s) is complete and the premises have been vacated.
4.      Rekey the Property

        A Locksmith should accompany you to the property on the day of the scheduled cash for
        keys. Upon delivery of the cash for keys check, ensure all locks are re-keyed and the
        property is secured.




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Broker Guidelines and Responsibilities

Property Expenses – All expenses should be submitted within 15 days from
date of service.

1. Expenses within approved limits as outlined in the table below are pre-authorized and agents
   do not need to request further authorization.

                                Pre - Authorized Expense Limits
Expense limits are pre-approved for the following initial services:

        Re-key locks                                       Up to $150
        Re-secure (board up windows, etc.)                 Up to $500
        Trash out cleanup, etc                             Up to $500
        Yard care                                          Up to $250
        Emergency maintenance                              Up to $500


2. Expenses for services may not be combined with any other service. Each expense limit applies
   only to the service it is designated for.

3. Reimbursement requests for these expenses may be submitted by following the standard
   reimbursement request procedure.

4. "Before" and "After" photos are required on all properties where a trash out and/or repairs have
   been performed regardless of cost. Reimbursement will not be issued without photos.

5. Agents will need to tender payment to any third-party vendors who perform these services
   before requesting reimbursement.

6. Expenses exceeding the limits will require additional bids and/or approval. The number of bids
   is dependent on the estimated amount of the expense.

  Estimated Expense
      Amount                     # of Bids
  Under $1,000                       1
  $1,001 - $10,000                   2
  $10,001 and over                   3

Utilities
Please contact your MAS Asset Manager to verify which utilities should be turned on. Unless it
poses a risk, electric should always be turned on. The utilities that are activated should be
transferred to your name. Utilities should be terminated as of the closing date of property.

The “Vendor Reimbursement” Form should be submitted monthly for the expenses incurred;
please see the “Submitting Bills” section of this document for further details.

Winterization
At the onset of winter weather, all properties should be winterized following Meridian winterization
guideline unless otherwise directed. Any problems detected in the plumbing system should be
made known to asset manager immediately; failure to comply could result in the broker being



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held responsible for any damage. Winterization guidelines and checklist are attached to our
website at www.masreo.com.

Agent and Guidelines for

BPO

The BPO should be completed on the REOTrans website and all of the sections must be
completed with detailed information or the BPO will be considered incomplete. Please note the
following:

    o   The prior sales price of the subject, along with the approximate rental income the
        property will produce should be completed.
    o   Comments on the Sales and Listing comparisons MUST be completed. If three
        comparisons are not available, then the reason for the lack of comparisons should be
        noted.
    o   All comments sections on the neighborhood should be completed or marked “N/A”
    o   MAS requires that the agent give his/her recommendation of the repairs that should be
        completed, along with his/her best estimate of the cost of those repairs. Do not
        steer the repair amounts to justify selling the property on an “As-Is” basis.
    o   MAS requires that bids are obtained at the time the BPO is ordered unless the Asset
        Manager agrees to a bid and inspection exception. In all other circumstances repair
        bids and inspections should be obtained.
    o   The comment section regarding anticipated sales problems must be completed.
    o   ALL of the comments sections MUST be completed.

Please submit a minimum of 30 photos that give MAS a clear vision of the condition of the
property. You should include photos of each room, all appliances, roof, and any damage to the
property. The photos must be of the interior and exterior of the property, along with appropriate
examples of street scenes which may affect the value. In addition, you must also submit photos
of the comparable properties that you have included in your BPO – both Listed and Sold.

Initial Cleanup/Preparing the Property for Sale

Once bids have been approved for the Trash Out or initial clean up of the property, agent should
immediately authorize the contractor of the approved bid. The work should be completed
according to MAS instructions and as bid by the contractor. Expense amounts for the Trash Out
should conform to MAS Authorized Expenses (please see prior section). The contractor’s
responsibility is to submit both before and after photos of the work. Invoices will not be
approved for payment without before and after photos.

No property will be listed by MAS until photos are submitted to indicate the property has been
prepared for sale as directed by your Asset Manager.

Exterior

All exterior trash and debris is removed, lawns are mowed, always rake; blow clippings off drive
and porch, edge driveway and walkways.

(continued)




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Interior

Initial sale clean

1.    Vacuum
2.    Clean flooring
3.    Install air fresheners in strategic areas throughout the home
4.    Toilets, tubs and showers should be cleaned.
5.    All appliances should be cleaned inside and out. Replace drip pans at range.
6.    Wipe down all counter tops, clean out all cabinets and drawers.
7.    Replace missing light bulbs. All lighting fixtures should be operational.
8.    Professional carpet cleaning and re-stretching as required may be performed with approval.
9.    Flyers, newspapers, advertising materials and mail should be routinely removed.
10.   Broker advertising and flyers should not include references to “REO” or “Bank Owned
      Property” or “Foreclosure”

Property must be inspected weekly by the agent. A light cleaning and “refresh” of the property
should be completed every 30 days:

      1.   Vacuum floors and window sills; remove all dead bugs, cobwebs…
      2.   Clean flooring.
      3.   Clean toilets.
      4.   Wipe down countertops.
      5.   Install new air fresheners.

Listing the Property for Sale

Prior to listing the property for sale, the following actions must have been completed:

              Property value reconciled
              Sales strategy set
              Property repaired and/or readied for sale

Please note that MAS will list the property before authorized repairs have been completed.

The Broker should ensure a sign is posted in the yard or front window as appropriate. In addition,
a lock box should be installed to facilitate access to the property by cooperating brokers,
contractors, real estate agents and MAS representatives. A complete listing should be entered in
the MLS; the listing must be entered within one business day of the notification of the listing, or
the listing may be assigned to another Broker. Once the property is listed, a copy of the MLS
print out should be emailed or ML link sent to the Asset Manager.

Repairs

MAS advocates repairing properties. Repairing provides the following benefits to our clients:

           1) Provides the client with a positive return on its repair investment,
           2) Assists in marketing the property in a shorter timeframe,
           3) Reduces the risk of liability due to safety issues

MAS will require that the repairs bring the property to the standards required by FHA/VA or
Market Condition, as applicable.



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Brokers should obtain bids from licensed and insured contractors only. A copy of the license and
insurance information should be submitted with each bid. Please submit the number of bids
required depending on the dollar amount of work. Meridian has developed repair specifications
for all properties; please review these specifications prior to obtaining any bids for these items.

Property preservation, repair bid forms, inspection request forms and repair specifications can be
found on the MAS website at www.masreo.com.

Once a bid has been approved, the agent is required to monitor and manage the repair process.
The agent should keep in regular contact with the contractor to determine the progress of the
repairs and the expected completion date. The agent will inspect the contractor’s progress
weekly and E-mail a progress report to the asset manager.

Once the repairs are completed, the agent should go to the property and take photos of the
completed work, independent of the contractor. If there is any work that is not done properly, the
agent should document the deficiency with photos and submit photos these photos along with an
explanation of the deficiency the Asset Manager. Until these deficiencies have been corrected,
the contractor shall not be paid for his work.

At the time the Broker has signed off on the work, the Broker must request a complete Lien
Release from the contractor. This Lien Release must be in recordable form and for the amount of
the work contracted. If more than one contractor worked on the property, a Lien Release should
be obtained from each contractor requesting payment. No payment will be tendered until the Lien
Release has been received by MAS. “Conditional Waiver” and ”Final Waiver” lien release forms
are located on the MAS website at www.masreo.com.

Submitting Bills

Each Broker must submit monthly expenses incurred in managing each property on behalf of
MAS. Please refer to the Agent and Broker Manual available on from our MAS website at
www.masreo.com for detailed procedures on this process.




Periodic Inspection during the Listing Period

At least every 30 days, the Broker should submit a monthly Inspection report including photos.

The photo(s) should show that the yard is being well-maintained and that the property is being
actively marketed by evidence of the marketing sign either in the yard or in the window. If the
property is a condo, the photo(s) should be of the lockbox and the marketing sign.

Offers

MAS will accept an unlimited number of offers from potential buyers of the property. When an
agent receives an offer, they must submit it to MAS within one business day via the REOTrans
website.

The Asset Manager will counter all offers within 24 hours; offers that are being negotiated should
be accompanied by some type of bank qualification letter. A minimum deposit of $500 is required
for all assets valued at less than $50,000; a $1,000 deposit is required for all assets greater than
$50,000.


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The “Multiple Offer disclosure” form must be utilized in instances where more than one party is
presenting an offer or if additional offers are presented during “active” offer negotiations. All
parties will be notified of “multiple” offers, negotiations will cease and “Multiple Offer Disclosure”
forms presented to all parties. The Asset manager will establish a time for all parties to present
their “highest and best” offer. If final offers are below full list price and terms, the Seller has the
right to continue negotiations. Unaccepted offers will be considered “backup” offers and Buyers
will be notified if an accepted offer fails. The “ Multiple Offer Disclosure” form may be found on
our website at www.masreo.com.

Accepted Offers

After full execution, a clear copy of the following documents should be faxed or emailed to the
Asset Manager:

           Purchase contract
           MAS Addendum, signed by the Buyer, Listing Broker and Selling Broker
           Lead Based Paint Addendum, signed by the Buyer, Listing Broker and Selling Broker
           Copy of the Earnest Money check
           Buyer’s verification of funds or proof of financing

Receipt by MAS of this documentation must occur within two business days of acceptance of the
offer. Within one business day of receipt of a complete contract, the Asset Manager shall have
the contract executed and returned, along with the closing instructions, to both the Broker and the
closing agent.

Closing

Upon receipt of the executed contract, the Broker should make contact with the local Closing
Office to insure the closing can occur as scheduled. During the contract period, the Broker shall
check at least weekly with the Closer and the Selling Broker to insure the transaction is
progressing. The Broker should notify the Asset Manager immediately after the inspection date
and the finance date that the Buyer has not noticed the Seller of any issues. The Broker shall
also immediately inform the Asset Manager of any potential problems that could delay the
closing. The Broker shall also continue to make Periodic Inspections of the property and submit
the reports to MAS.

At least three business days prior to closing, the Broker should submit the Hold Back form to the
Asset Manager. This form must include all bills incurred to date along with an estimate of final
utility bills that have not yet been received. Please see the Submitting Bills section of this
document for further details.

The Broker shall review the HUD-1 statement prepared by the Closing entity to ensure accuracy
prior to the HUD-1 being submitted to MAS for signature. The Broker shall attend the closing to
ensure that the transaction closes and funds in a timely manner.

Within 30 days of the Closing, the Broker must submit to MAS final utility bills, together with a
copy of evidence that the Broker has paid for the utility bills. Any bills not received by MAS within
30 days of closing, shall not be reimbursed to Broker.




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