FHA MULTIFAMILY LENDING REDEFINED

WHY HUD

WHY CONSIDER HUD?

■ Long-term fixed rate up to 35-40 years■ Self amortizing, no balloon■ Low interest rate independent of location, leverage or property type■ 80% LTV cash-out, 85% LTV with no cash-out, up to 90% LTV for affordable housing■ Non-recourse■ Fully assumable■ Customizable 10-year step-down prepayment penalty (No yield maintenance)

HOW IS A HUD LOAN DIFFERENT?

HUD FANNIE MAE / FREDDIE MAC

CMBS Banks / OTHER

Asset-classes - Market-rate multifamily- Affordable multifamily- Healthcare (ALF, SNF)

- Market-rate multifamily- Affordable multifamily

- Market-rate multifamily- Retail- Office- Hotel- Industrial- Self storage

All Commercial

Purpose - Acquisition- Refinance- New Construction- Substantial Rehab

- Acquisition- Refinance

- Acquisition- Refinance

- Acquisition- Refinance- New Construction- Substantial Rehab

Term 35-40 years 5-10 years 5-10 years 2-10 years

Non-Recourse Yes Yes Yes Varies

Fixed vs. Floating Fixed Fixed or Floating Fixed Fixed or Floating

LTV / LTC 85%-90% 75-80% 70-75% <70%

Prepayment* Customized, No lockout10,9,8,7,6,5,4,3,2,1%

1-2 yr lockoutYield maintenance

2 yr lockoutdefeasance

Flexible prepay structures

Servicer Greystone Greystone 3rd Party 3rd Party

Target loan size $5-$100 Million $1 Million + $5 Million + $5 Million +

Execution 4-6 months 2-3 months 45-60 days 1-3 months

* Shorter pre-payment structures are available for slightly higher interest rate

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WHEN TO CONSIDER HUD

WHEN TO CONSIDER A HUD LOAN

Long-term hold horizon (5 yrs+)

Seeking highest possible leverage

May not qualify for bank/agency loansdue to net worth or liquidity requirements

Seeking construction financing without taking on conversion risk or recourse

Property location that does not havestrong banking or other lending options

Seeking cash out via refinancing

Especially Affordable Housing propertieswith market rents substantially higher than restricted rents

X Short-term holders and "capital recyclers"

X Merchant builders

X Quick timing to close (<3 months)without Bridge financing

X Trophy properties (e.g. High-rise in Manhattan)

MULTIFAMILY HUD PROGRAMS

TYPE OF FINANCING HUD PROGRAM NOTES

Acquisition or refinance- Market-rate- Affordable

223(f) ■ Cash out allowed■ Minimum 3 yrs operating history■ 6-month avg. occupancy > 85%■ Repairs cannot exceed $15k per unit times local cost factor

New construction or substantial rehab

221(d)(4) ■ Fixed interest rate for 40 yrs + construction period■ Construction cannot commence until HUD loan approval■ Davis Bacon wages required■ Some commercial income allowed■ Max loan amount per unit constraint

Refinancing of existing HUD loan

223(a)(7) ■ Quick execution (6-12 weeks)■ Ability to lower interest rate in a declining rate environment■ Loan term and PPP is reset to original ■ Loan amount can be increased back to original to cover

Prepayment Penalty or repairs

Interest rate reduction on existing HUD loan

IRR ■ Quick execution (4-8 weeks)■ Can be executed only by the existing Servicer■ Prepayment Penalty will be reset to original■ Low transaction costs (~$8k in legal costs)

THE GREYSTONE FHA ADVANTAGE

THE GREYSTONE FHA ADVANTAGENavigating the FHA application process isn’t always easy. But when working with Greystone, it is.

A long, strenuous process – that’s the FHA experience of yesterday. Greystone welcomes you to the FHA of today. Our combination of experience, expertise, innovation, transparency and white glove service will transform the way you see FHA loans. Here are eight ways we make the FHA loan experience a breeze.

EXPERIENCEWith nearly 30 years working with HUD, we have closed thousands of deals that have spanned $5 - $105 million in size. That’s because we don’t shy away from deals that seem more complicated than others. We have been successful because we work tirelessly to get you the financing you need.

EXPERTISEGovernment mandated guidelines and requirements can be tricky to understand. But not when you have professionals dedicated to understanding the details and nuances of the latest changes and updates. We also provide our clients with ongoing guidance for all post-closing topics, including repair schedules and draws.

TRANSPARENCYThe HUD process can sometimes feel like a black box - not knowing the status of a loan, who is working on what, or what the next steps may be. At Greystone, we make every effort to provide clarity and transparency around the HUD process every step of the way.

Our app allows you to track your loan progress in real time. We highlight which documents you need to submit and which you’ve already uploaded for your loan application. You can even assign tasks to your attorney or accountant to upload legal or financial information on the property. 100% transparency. No surprises.

INNOVATIONIn every industry, technology has accelerated processes – commercial lending is no different. We have developed an app that guides you through every step of the loan application process, making it easier than ever before.

Our proprietary technology not only gives our clients a transparent view of the loan process, where there’s never any question about the status of an application or what documents are needed to get your loan closed.

WHITE GLOVE SERVICEWorried you don’t know which documents you need to submit? We can help. We’ll send one of our own FHA professionals to your office to help you sort and gather everything you need. We even complete a majority of HUD forms on your behalf. Our goal is to make the HUD process as easy as possible for you.

SPEEDWhat was once a long, exhausting process has now been transformed. The combination of our expertise, technology and streamlined processes can get the deal done in about half the time. We have preferred vendor relationships, which allow for a quick turnaround on all third party reports.

CERTAINTY OF EXECUTIONWe are problem solvers. No matter the size or complexity of the deal, we can get you the financing you need to meet your goals. Setting realistic expectations with no surprises is our guarantee.

BRIDGING THE GAPWe provide bridge and mezzanine financing options while we help you secure a permanent FHA loan.

OUR MULTIFAMILY LOAN PROCESS

OUR MULTIFAMILY LOAN PROCESS

Refinance or Acquisition Financing — 223(f)4-6 Months

Pre-engagement

Prepare for Concept Meeting

Prepare Firm Application

HUD Reviewand Approval Closing

Varies 30 days 30 days 30-60 days 5-30 days

■ Sizing ■ Kick-off call ■ Collect documents

■ Engage legal counsel for Closing

■ Rate-lock

■ Engagement letter

■ Order PCNA and Appraisal

■ Complete underwriting

■ Begin Closing process

■ Submit closing documentation

■ Collect documents

■ Sign and complete HUD forms

■ Receive Firm Commitment from HUD

■ Close

■ Prepare Concept Package

■ Prepare Firm Application

■ HUD Concept Meeting

OUR MULTIFAMILY CONSTRUCTION LOAN PROCESS

New Construction — 221(d)(4)6-12 Months

Varies 30 days 30 days 30-60 days 30-60 days 30-60 days 30-45 days

■ Sizing ■ Kick-off call ■ Collect documents

■ Finalize plans and construction budget

■ Collect documents

■ Engage legal counsel for Closing

■ Rate-lock

■ Engagement letter

■ Order Market Study

■ Order Appraisal and Phase I

■ Collect documents

■ Complete underwriting

■ Begin Closing process

■ Submit Closingdocumentation

■ Prepare Concept Package

■ Complete underwriting

■ PrepareFirm Application

■ Sign and complete HUD forms

■ Receive FirmCommitment from HUD

■ Close

■ HUD ConceptMeeting

■ Prepare Pre- Application

■ Receiveinvitation to submit Firm Application

■ Prepare Firm Application

Pre-engagement

Prepare for Concept Meeting

Prepare Pre- Application

HUD Pre-AppReview

Prepare Firm Application

HUD Reviewand Approval Closing

GREYSTONE FHA DEALS

$19.2MFHA

REPRESENTATIVE GREYSTONE FHA DEALS

RADNOR TOWERSNashville, TN

LAKE CASTLETON APARTMENTSIndianapolis, IN

HICKORY POINT AT BRENTWOODNashville, TN

BELMERE LUXURY APARTMENTSHouma, LA

KITTERMAN WOODSPort St. Lucie, FL

RENAISSANCE AT CANYON SPRINGSSan Antonio, TX

$34.6MFHA

$22.5MFHA

$24.3MFHA

$32.5MFHA

$38.8MFHA

NEW CONSTRUCTION LOANS CLOSED IN UNDER 6 MONTHSBRIDGE TO FHA LENDING

HUD WAIVER NEGOTIATIONS

MAXIMIZE CASH-OUTGUIDE FIRST TIME HUD BORROWERS

SHORTER HUD APPLICATION PROCESS - "STRAIGHT TO FIRM APPROVAL"

PRE-APPLICATION WAIVER FOR NEW CONSTRUCTION

GREYSTONE

7,000Greystone Employees

GREYSTONE

For nearly 30 years, real estate lending has been our core business. We bring expertise, knowledge and creativity to the loan process. We have continuously expanded our capabilities to become a full-service multifamily housing lender. We have worked with HUD since 1988. Our relationship with HUD has expanded from not only structuring workouts for FHA insured multifamily and healthcare loans but also becoming the leading national FHA multifamily lender, originating the highest volume of loans combined over the last 5 years.

Volume of Loans Over Last 20 Years

Presence in

34States

$ B1 4 9 .

24Greystone Offices

Loans Closed in All

50States + Puerto Rico

2016 ORIGINATION: $7.1 BILLION

■ Fannie Mae

■ Freddie Mac

■ FHA

■ Portfolio Lending

■ CMBS

■ Other24%

37%24%

7%

2%

6%

GREYSTONE HISTORY

Greystone opens Servicing division and becomes an approved HUD mortgagee

Greystone starts investing in mortgages on its own balance sheet

Greystone becomes a Fannie Mae DUS® lender

Greystone acquires 15 healthcare facilities and soon after starts its own healthcare management company

Greystone is recognized as a Top 10 Fannie Mae DUS® lender and becomes a Top 10 FHA lender

Stephen Rosenberg starts Greystone

1989 1992 1996 2000 20031988

Greystone is the 6th largest Fannie Mae DUS® lender and 4th largest FHA multifamily loan originator

Approved by Freddie Mac to originate and service Target Affordable Housing (TAH) loans

Greystone ranks as the Top FHA multifamily loan originator

2007 2011 2012 2013 20162004

Servicing portfolio reaches $6 Billion and originations exceed $1 Billion annually

Greystone becomes a Top 5 FHA lender and establishes a bridge loan program

$3.5 billion in total originations

Re-launch of CMBS Operations

Approved as a National Senior Housing Seller/Servicer by Freddie Mac

$7.1 Billion in loan origination, $21 Billion in loan servicing

Launches $300 million CLO (Expected issue date of Q1 2017)

Full conversion to Electronic Health Records in health facilities

Greystone & Co., Inc.152 West 57th Street60th FloorNew York, NY 10019855.527.4381information@greyco.com

Copyright ©2017 Greystone & Co., Inc. All Rights Reserved.References to the term “Greystone,” “we,” “us,” and “our” refer to Greystone & Co., Inc. and/or its affiliated companies, as applicable. Loan products are offered through Greystone Funding Corporation, Greystone Servicing Corporation, Inc. and/or other Greystone affiliated companies. 0317