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Collateralized Mortgage Obligation – CASH OUT / BUY OPTION

The below CMO (Collateralized Mortgage Obligation) Purchase Option have been presented to Investment Dynamics as of 8-1-12. Please note. A Clients entry into any PPP (Private Placement Programs), Non-Recourse Funding Programs or their participation in a Sale of CMO are subject to many factors including, but not limited to, quality of the CMO presented, Client acceptability, program availability (these programs tend to fill up quickly), etc. We will do our best to keep our clients informed as to the current available options and present new options as they become confirmed and available. Please use this as a reasonably accurate guide as to what is currently being offered.

Part 1

Purchase of a CMO
(If Client owns a CMO please proceed to “Cash Out/Buy” Option)

The purchase procedures are as follows:
1) Client provides:
~ Copy of passport at 200% its original size, at least 600dpi and in color
~ Proof of Funds. Acceptable POFs are;
a) Brokerage/Bank statement less than 30 days old.
OR
b) A letter from the Brokerage/Bank, on their letterhead, stating the asset is in the Clients account and is free of liens and encumbrances. This letter must be signed and dated by the banker/broker with the bankers coordinates and contact information.
~ Authorization to verify and Authenticate the POF
~ Short Client Information Sheet
~If the Client desires he/she can complete the securities required KYC (Know Your Client) Package. This includes all required documents in one place. This will eliminate some double work but is not necessary to get started.
2) A due-diligence, as required by The Department of Homeland Security and Banking Regulations (Know Your Client), will be completed by the Securities Firm. This process can be completed in two business days unless the Client is not a US Citizen in which case the due-diligence process can take up to 5 business days.
3) Once the due-diligence process is completed the Client will be submitted to Securities Broker for the purchase of the desired CMO. Additional documents will be required to submit to the Securities Broker (A fully completed KYC Package will need to be completed and presented to the Securities Broker)
4) Securities Broker completes its internal due-diligence and a conference is scheduled between Securities Broker and the Client. This will take place within 24 to 48 hours after the Securities Broker receives requested documents (the KYC).
5) If all is agreed during the conference, the Securities Broker will request an account be opened in the Clients name.
6) Client will be sent the Securities Account Documents for review, signatures and return.
7) Account is opened in Clients name
8) CMO is secured as per agreement and lodged in the Clients account.
9) Client now owns a Collateralized Mortgage Obligation and can expect his monthly statements and coupons (interest payments).

Part 2

“Cash Out/Buy” Option

This program is currently accepting new submissions as of 8-1-12.
Example is for a 1Billion Face Value CMO (Collateralized Mortgage Obligation).
CMOs must have an acceptable Commercial Rating.
ISBA CMOs are acceptable on a review basis.

Required:

Client provides first 3 pages of Bloomberg screen (color) evidencing the CMO they wish to utilize.
Client provides Prospectus for the CMO.
Client provides account statement evidencing ownership of the CMO free and clear of liens and encumbrances.
Client provides ”CIS” (Client Information Sheet) also known as KYC Package.
Client provides copy of passport at 200% of original size, at least 600 dpi, and in color.

Procedure:

~Client provides required information/documents.
~Client is processed for compliance with Intake Manager
~After document review and the due diligence on the Client is completed (approximately 48-72 hours), Client will receive Fee Agreement for review, acceptance and return.
~Client is now entered into compliance review with the end Buyer. A second due diligence, as required by Federal Banking Regulations and Homeland Securities, Know Your Client, is completed within 48 hours. If the Client is not US Citizen compliance can take up to 5 business days.
~Once client compliance is completed by End Buyer, the Client will be issued a contract for review. Additionally, a conversation with the CMO End Buyer (Managing Director) will take place within 24-48 hours.
~A discussion regarding returns and timelines will take between the CMO Owner and the Managing Director.
~If timelines and returns are acceptable to the CMO Owner, then contracts are executed and CMO is committed.

A brief description is outlined below:

~Once Client completes and returns all documents, a review is completed and acceptance is confirmed in less than 24 hours. If documents are submitted on Friday, review and acceptance could be delayed until the following Monday.
~ CMO is moved to the agreed upon brokerage firm. Fidelity or Ameritrade.
~ CMO is moved by any acceptable transfer protocol between Owner and End Buyer.
~ A 3 (three) day settling of CMO is required.
~ Proceeds are transferred to Attorneys Escrow Account.
~ Verification of CMO and Proceed transfer between Owner and End Buyer
~ Client can verify funds transfer
~ Contract terms are executed.
~ Payment is made to Client’s designated account within 30-90 days of the CMO settling and before the contract expires.

Returns:

A 1Billion Dollar Face Value CMO is purchased at 300% of the current owners purchase invoice. This is a Purchase Program and not a Private Placement Program nor a Monetization Program.

The following example is for a 1 Billion Dollar Face Value CMO which the Owner paid $700K;
Current Owners purchase invoice is $700,000.00
Gross to Owner is $2,100,000.00
10% Broker/Intermediary Fees equal $210,000.00
$2,100,000.00 – $210,000.00 = $1,890,000.00
Net to Client is $1,890,000.00
ROI (Return on Investment) in 30-90days is 170% Plus the return of the original investment of $700,000.00

All Client funds will be sent directly to a designated paymaster. For Details please write to: ceo@hindmarshfinance.com

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