Funds Management Policy

As funds are received daily on mortgage payments and according to sound and established national mortgage banking policies and procedures, they are immediately/same day deposited into FDIC insured non-operational bank accounts in our corporate name, then payments posted immediately/same day to each borrower's loan. Thus, payments are easily seen next business day via our on-line mortgage review website screens for your and your borrowers' convenience.

Additionally, at our primary bank, in addition to the normal $250,000 FDIC insurance coverage, we have secured additional coverage in the form of bank-pledged U.S. Treasury Bills, past the FDIC $250,000 normal insurance, to an additional $250,000 to cover current-month principal payments.

Additionally, any escrow amounts above this total $500,000 coverage amount, that are not immediately needed to meet monthly escrow needs are moved to other local FDIC insured banks. These extra funds, again, as a normal national mortgage banking practice, are deposited in amounts up to $250,000 at each bank in guaranteed certificates of deposits in our corporate name earning competitive interest rates, as a vital means to keep your affiliate's loan servicing fees to a minimum and offset normal servicing expenses with this interest income.

Additionally, although protected by FDIC insurance, quarterly reports (mainly: www.bankrate.com) are still reviewed for each bank we utilize to determine their soundness and viability. As such, we do not participate in "cross-bank" and/or "investment house" purchases of certificates of deposits above a bank's FDIC insurance $250,000 level, since we are not familiar with these other banks located out of our city and/or state, plus it would be considerably awkward operationally to do so.

Should you, your staff, and/or auditors ever have a question on our above funds management policies, please contact me, personally, anytime.

As always, thank you very much for your business and, most especially, referral of other affilites.

Best of wishes,

Terry

J. Terry Ryan, President
Multi Financial Services Co., Inc. &
Trakker Loan Servicing Software
2580 Care Drive, Suite #2
P.O. Box 13241
Tallahassee, FL 32317
PH: 1-800-326-4112
FAX: 850-656-3655
Web: Multi-Financial: www.multi-fin.com
Trakker: www.thetrakker.com