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November 25, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. Happy Thanksgiving! Window closing to lock in your rates as agencies are shifting to the new 2021 matrix. Rate Desk notes November 25, 2020 • DOW, S&P down, NASDAQ up • Crude $45.80 • UST yields .89 • 223(f) 2.39% • 221(d)(4) 2.99% • Fannie 3.04% • Freddie 3.40% • Window closing to lock your rates • Twilight time of year for funding • Need more housing • No secret sauce • Cut red tape to get more units delivered • Increase incentives to drive up supply

Yield PRO TV presents NAHB Power Hitters. Host Linda Hoffman talks with Greg Pinkalla, Chairman and CEO of Fairfield Residential.

November 18, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. HUD requirements tightening in response to record submissions. Requiring complete applications to speed up processing times. Rate Desk notes November 18, 2020 • Indices down • UST yields .87 • Crude $41.66 • 223(f) 2.39% • 221(d)(4) 2.99% • Fannie 2.94% • Freddie 3.30% • Procedure update for HUD MF lenders in the West requires: o Complete applications o CNA noting Fair Housing Accessibility • 5 days to cure, HUD keeps app fee after the second fail • Priority: affordable housing processing • New construction and tax credits

Yield PRO TV Money Talks host Michael Thomas talks with Bob Hutchins, CEO of Ellavoz Impact Capital.

November 11, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. With historical low FHA rate opportunities, hotel conversion opportunities are providing great per unit returns. Rate Desk notes November 11, 2020 • Dow down, NASDAQ, S&P up • UST yields .98 • Crude $41.45 • 223(f) 2.45% • 221(d)(4) 3.05% • Fannie 2.98% • Freddie 3.07% • Bridge lending active on new construction • Lower occupancy, non‐agency eligible • Conversion opportunities: Hotel/motel to multifamily • $15‐$30K per unit on levered return • Shopping malls? • Historical low FHA rate opportunities

November 4, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. $11.5 billion in HUD lending in 2020 and getting ahead by addressing non-critical repairs in your PCNA before applying for a HUD loan. Rate Desk notes November 4, 2020 • Indices up • UST yields .78 • Crude $39.05 • 223(f) 2.37% • 221(d)(4) 2.97% • Fannie 2.82% • Freddie 3.10% • Top 10 HUD lenders reporting $11.5 billion in firm commitments in 2020 • SE region total $3.3 billion (largest loan type: 223(f)) • Walker and Dunlop starting to quote Secured Overnight Financing Rate (SOFR) • SOFR tracking just below 1-month LIBOR • Physical Capital Needs Assessment (PCNA) completed before applying for HUD loan • Address non-critical repairs in PCNA

September 9, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. With lower home supply and no declines in MF property value, higher demand for workforce housing drives the market. Rate Desk notes September 9, 2020 • Indices up • Crude $38.15 • UST yields .70 • 223(f) 2.17% • 221(d)(4) 2.77% • Fannie 2.75% • Freddie 2.90% • Family friendly amenities • Low home supply • Concentrated amenities in multifamily • No substantial value drop due to COVID‐19 • Some short‐term collection issues • No declines in value • Affordability vs luxury • Higher demand for workforce housing • Luxury units harder to fill

June 3, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. Growth of resort markets with modular solutions and bolstered by new work-from-home normals. Rate Desk notes June 3, 2020 • Indices up on session highs • Crude $36.75 • UST yields .75 • 223(f) 2.51% • 221(d)(4) 3.16% • Fannie 3.15% • Freddie 3.20% • GSEs move toward leaving conservatorship • Bank-like capital levels • Resort markets o Historically cost-prohibitive o Modular solutions for remote and inaccessible areas o Bolstered by new work-from-home normal o Growing with year-round work

Yield PRO TV presents NAHB Power Hitters. Host Linda Hoffman talks with Debra Guerrero, senior vice president of strategic partnerships and government relations for The NRP Group.

October 28, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. ROI with cash‐on‐cash returns and real quantitative metrics to measure social impact of CRE investment. Rate Desk notes October 28, 2020 • Indices down • UST yields .78 • Crude $37.49 • 223(f) 2.28% • 221(d)(4) 2.78% • Fannie 2.90% • Freddie 3.00% • Cash‐on‐cash return least speculative measure of ROI • 8% is the new target • Terminal ROI: 18‐20% • Dividend yield of S&P 500: 1.7% (2x higher than yield on 10YR UST) • OZ fund target: 5.5% preferred distribution with 12% return • Metrics to measure social impact

Yield PRO TV Money Talks host Michael Thomas talks with Winston Crowley, VP Investment Officer for UMB Bank. Sponsor: https://lasalleamro.com/

Yield PRO TV presents NAHB Power Hitters. Host Linda Hoffman talks with Sean Caldwell, executive managing director of development for Mill Creek Residential.

October 21, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. Utilizing FHA loans to subsidize states' low LIHTC supply and making your affordable housing projects pencil. Rate Desk notes October 21, 2020 • Dow down, S&P, NASDAQ up • UST yields .81 • Crude $40.07 • 223(f) 2.26% • 221(d)(4) 2.86% • Fannie 2.75% • Freddie 3.00% • Affordable Housing update: o LIHTC 4% credit short supply with states o Reduced equity o AFR at 3.07% in October o Equity pricing between $0.86-$0.90 per credit for non‐CRA o HUD FHA 221(d)(4) loan proceeds 20‐30% higher o Minimal negative arbitrage costs (.50 during construction) • Market Rate update: o 8% cash‐on‐cash return hard to find o Cap rates have narrowed between 4‐4.50%.

Yield PRO TV Money Talks Host Michael Thomas chats with Evelyn Lim, HUD Regional Administrator for Region 8 and part of HUD’s taskforce responding to COVID. Lim brings the perfect background to the COVID taskforce. Prior to HUD, Lim worked with on the first pandemic strategy in 2006 as part of the Bush Administration. This and other experience led to Lim being called up to help Sec. Carson’s response to the current pandemic. As the pandemic subsides, Lim is easing back into her Region 8 duties. Region 8 is the Rocky Mountain Region covering 6 states: Colorado, Utah, Montana, Wyoming, North Dakota and South Dakota. Lim discusses the agency’s programs through the pandemic and beyond.

October 14, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. Choosing the right type of lending fits your needs and leveraging the HUD energy efficiency mortgage insurance premium (MIP) on new construction. Rate Desk notes October 14, 2020 • Indices down • UST yields .72 • Crude $40.96 • 223(f) 2.23% • 221(d)(4) 2.83% • Fannie 2.84% • Freddie 3.05% • What type of lending fits your needs? • Mission of lending: access to capital • Conventional v. mission-focused lending • HUD launches fully-electronic application submission portal • HUD energy efficiency mortgage insurance premium (MIP) • Statement of Energy Design Intent (SEDI) from plans • Statement of Energy Performance (SEP) 12 months post-closing with usage data • ENERGY STAR certification 12 months post-closing based on SEP • Annual Data Acquisition plan ($500-$1,000)

October 7, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. Leveraging green benchmarks to maximize lending potential and a look at HUD for statutory constrained urban markets. Rate Desk notes October 7, 2020 • Indices up • UST yields .78 • Crude $39.95 • 223(f) 2.29% • 221(d)(4) 2.89% • Fannie 2.85% • Freddie 3.05% • Freddie green quotes saving borrowers 15bps • Use HUD green benchmark standards on new developments • Watch for financial leverage when loan constant exceeds cap rate • HUD viable in urban core where PE equity is less available • Boost loan size with HUD 220 program in urban and mixed-use developments • 15% boost to allowable max of EGI • Statutory constrained urban core markets

NAHB Power Hitters Host Linda Hoffman, speaks with Justin MacDonald, president and CEO of MacDonald Companies.

September 30, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. HUD added online queues to track your HUD loan application, and offsetting land costs with HUD statutory limit constraints. Rate Desk notes September 30, 2020 • Indices up • UST yields .68 • Crude $39.83 • 223(f) 2.16% • 221(d)(4) 2.76% • Fannie 2.69% • Freddie 3.11% • HUD record volume, application queues now online • Track your loan application • Must have ALL application items upon submission • Suburban mixed-use • Outdoor amenities • Land is expensive • HUD statutory limit constraints

September 23, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. With capital sources slowing down on lending, HUD FHA construction financing remains available to keep your construction projects going. Rate Desk notes September 23, 2020 • Indices down • UST yields .67 • Crude $39.58 • 223(f) 2.15% • 221(d)(4) 2.75% • Fannie 2.69% • Freddie 3.11% • MF rents increased by $1 in August • Institutional equity seeks outside major urban core markets • 22 of 30 major markets at negative rent growth • MF permits down 14.2% • HUD FHA construction financing available

Ed Easley is president of LMC Development, a division of Lennar and the country’s fourth largest developer in a tight race for total units delivered. Lennar is a turn-key organization developing, building, acquiring and managing product across the nation. As Easley orchestrates over 31,000 units presently in the pipeline, he has faced it all in proximity to his properties—civil unrest, fires and smoke, pandemic lockdowns, rising supply prices and more. What’s a builder to do in times of tumult? Find out in this episode when NAHB POWER HITTERS Host Linda Hoffman gets to the key issues facing us all as she asks how one of the top developers in the land faces these challenges head on and comes out on the other side. This show is a can’t miss.

NAHB Power Hitters Host Linda Hoffman, speaks with Kevin Kelly, chairman and managing principal of Leon N Weiner & Associates. Kelly’s accomplishments, service and celebrity in housing are great. He is a past chairman of the board of the national association of homebuilders. Kelly is a natural leader in all he does—for his entire life—from inductee into his high school’s hall of fame to president of Saint Anselms student government, to member of Delaware Governor Carney’s transition team and several others. Kelly’s company, LNWA, is privately held with over $55 million in annual revenue, employing over 300 employees. Kelly follows another great leader, Leon Weiner. If housing had a hero, Leon Weiner is ours. As a third-generation builder, Leon was considered the “conscience of the housing industry,” having played a key role in developing housing policy and forging consensus at the national level. Weiner was inducted into NAHB’s hall of fame and his bust, the only of its kind, is displayed in the NAHB lobby today. It would take a great man to fill those shoes, and Kevin Kelly certainly brings the skills. LNWA is active in the affordable housing space. Kelly delivers great insights and boots on the ground information as to what’s happening in the apartment industry, the state of development and what can be done to improve fundamentals for future.

The USDA is all about meat standards, right? Yes—but what a small glimpse of an all-encompassing department. Along with managing America’s food resources—the department offers programs that elevate agriculture, natural resources, rural development, nutrition and health. Relying on the best available knowledge and science, the USDA recommends public policy and effective management processes to elevate life in rural America. Yield PRO TV Money Talks Host Michael Thomas chats with Curt Coccodrilli, state director of rural development in Pennsylvania for the USDA (U.S. Department of Agriculture), and Liz Bell, housing program director in Pennsylvania for the USDA. Coccodrilli and Bell discuss everything from rural America’s opioid crisis to building an entire town through USDA programs.

NAHB POWER HITTERS Host Linda Hoffman chats with Lance Swank, president of The Sterling Group in beautiful Mishawaka, Indiana. The Sterling Group owns and manages over 9,000 apartments across 35 markets in the Midwest and Southeastern United States, as well as over 2 million square feet of storage space. Among many others, Swank was awarded the distinguished honor of NAHB’s Daniel M Grady award for excellence and advocacy in multifamily housing. In this segment, Swank talks about how he assesses value add targets, what might make affordable housing an attractive investment again and his advice to Ben Carson to more closely align affordable housing inventory with need. This is a can’t miss.

September 2, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. Relationships of leverage to risk; probability of loss vs loss given default and which carries more risk. Rate Desk notes September 2, 2020 • Indices up, rally of record closings • Crude $41.35 • UST yields .65 • 223(f) 2.15% • 221(d)(4) 2.75% • Fannie 2.95% • Freddie 2.95% • US passed 100% debt-to-GDP • Is leverage a bad thing? • Relationship of leverage to risk • Probability of loss vs loss given default • HUD FHA leverage provides better cash-on-cash return • Low rate + longer term = lowest loan constant • 11K HUD FHA mortgages—only 6 were 30-days past due • GSEs use interest-only • Which carries more risk? You decide? • Lower leverage does not mean lower risk