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US Department of Housing & Urban Development (HUD)

As Financial Advisor, Due Diligence Contractor and Asset Manager, Tradewinds has been assisting the US Department of Housing and Urban Development (HUD) since 1993, to streamline the asset sales process for multifamily properties and since 1995, to sell over $3 Billion in non-performing Mortgages.

The primary mission of the US Department of Housing & Urban Development, is to ensure that affordable housing is available to all Americans, and that Urban areas remain vibrant parts of the American tapestry. A key part of this mission is the underwriting and subsidy of loans to American homeowners and real estate developers who rent to qualified low and moderate income renters. Because of economic conditions and mismanagement, loans go bad, and when they default, HUD is responsible (by Congressional mandate) to step in and take ownership of these bad loans from the banks which underwrote them.

In 1994, the number of bad loans on HUD's books had risen to the point where another national financial crises, similar to the Savings & Loan debacle was immanent and HUD's ability to underwrite and subsidize new loans was in serious jeopardy, unless HUD could move these loans off its books and recover a significant financial return. HUD hired Tradewinds to assist in the development of a comprehensive Asset Management Program to teach its Loan Servicing Specialists in how to work through troubled loan portfolios, and as Financial Advisor in restructuring and pay-offs of troubled Title X HUD loans used in large scale New Town developments.

As an experienced Asset Sales Advisor, Tradewinds was hired in 1995, through a competitive selection to assist in the most critical component of the asset sales program, the reconstruction and information collection of loan documents and conversion of these documents into summary and comprehensive formats that investors could easily use to determine what dollar amount they would be willing to pay HUD to take these trouble loans off HUD's books. For every loan which had missing or incomplete information, an investor would either not bid, or make HUD a very low offer. The objective for Tradewinds was straight forward - Get HUD the most accurate information possible in the shortest time possible.

At the close of the first three loan sales, the results were significant. Tradewinds had assisted HUD in achieving an unmatched 67% of Book Value average price from investors, and over $3.0 Billion in loan sales proceeds. The quality and completeness of the loan data was consistently cited as the reason for the high bid values.