by Fannie Mae - California Real Estate Fraud Report

Transcription

Case 3:13-cv-02781-L Document 25 Filed 01/28/14
Page 1 of 114 PageID 250
IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
FEDERAL NATIONAL MORTGAGE §
ASSOCIATION
§
§
Plaintiff/Counter-Defendant, §
§
v.
§ CIVIL ACTION NO. 3:13-cv-2781-L
§
§
K.O. REALTY, INC. d/b/a
§
K.O. REAL ESTATE
§
§
Defendant/Counter-Plaintiff. §
K.O. Realty, Inc.’s First Amended Answer and Counterclaim
Defendant K.O. Realty, Inc. d/b/a K. O. Real Estate (“K.O.” or “Defendant”) files
its First Amended Answer and Counterclaim and states:
ANSWER
PARTIES
1.
K.O. admits the allegations in paragraph 1.
2.
JURISDICTION AND VENUE
3.
4.
K.O. denies that a substantial part of the events or omissions establishing this
claim occurred in Dallas, but admits venue is proper in this district due to the provision
in the Master Listing Agreement (“MLA”) between K.O. and Fannie Mae as alleged in
paragraph 4.
FACTUAL BACKGROUND
K.O. Realty, Inc.’s First Amended Answer and Counterclaims --- Page 1
5.
6.
7.
8.
K.O. denies the May 1, 2011 MLA is the last MLA agreement it executed with
Fannie Mae. Otherwise, K.O. admits the allegations in paragraph 8.
9.
10.
K.O. admits that the MLA gives Fannie Mae the right to terminate the MLA, but
denies that Fannie Mae properly terminated the MLA.
11.
K.O. admits that Fannie Mae sent a termination notice that specified an effective
date of June 6, 2013, but denies it was sent to K.O. or that the notice terminated the
May 1, 2011 MLA between K.O. and Fannie Mae.
12.
K.O. admits the first three sentences of paragraph 12, but denies remainder of
the allegations in paragraph 12.
Cause of Action
Declaratory Relief
13.
No responsive averment is required to paragraph 13.
14.
K.O. admits that a dispute exists whether Fannie Mae lawfully and properly
terminated the May 1, 2011 MLA without cause. K.O. denies the remainder of the
allegations in paragraph 14.
15.
K.O. denies Fannie Mae is entitled to the declaratory relief sought in paragraph
15.
Amended Counterclaims
Factual Background
Fannie Mae uses contract brokers such as K.O. to sell REO properties under
Master Listing Agreements.
16.
K.O. was originally engaged by Fannie Mae in December 2005 under a MLA to
serve as a Real Estate Broker in the Denver area managing and selling Fannie Mae’s
inventory of real estate owned (“REO”) assets accumulated because of foreclosures
and defaults.
17.
Before any broker becomes a vendor for Fannie Mae, the Broker must first
satisfy certain minimum requirements. These requirements are on Fannie Mae’s
Supplier Registration page on its website. A copy of the Supplier Registration page is
attached as Exhibit 1. For example, a prospective vendor must have been in business
for at least one year and must be able to demonstrate revenue for this period. In
addition, the prospective vendor must have and maintain a minimum of three W-2
employees.
18.
If a company meets these minimum requirements and wants to become a Fannie
Mae vendor it must register and establish a supplier profile in ProcureOne. The
instructions for potential REO brokers in how to do so are set forth in Fannie Mae’s
Supplier Registration Real Estate Broker-Agent Quick Reference Guide. A copy is
attached as Exhibit 2. A prospective vendor’s registration will be accepted in the
system only if there is no duplicate already registered. (Ex. 2, p. 6). This prohibits
Fannie Mae from having multiple vendors registered from the same company.
19.
As noted, K.O. registered with Fannie Mae and entered into a MLA with Fannie
Mae in 2005. Karen Frisone, K.O.’s owner, was the Responsible Broker on these
transactions. Over the years, Fannie Mae periodically required K.O. to execute a new
form of the MLA. K.O. also has both its SBA (Small Business Administration) and
WBENC (Woman Owned Business) certifications. These certifications were important
for K.O. to maintain, as they helped Fannie Mae meet the diversity requirements set
forth by HERA (Housing and Economic Relief Act). Fannie Mae often asked their
Vendors to become certified if they were eligible, so Fannie Mae could continue to meet
those requirements.
20.
Under the MLA, Fannie Mae also offers to list properties with a broker for sale.
When Fannie Mae does so, Fannie Mae issues a Listing Supplement to the company
identifying the broker individually, and identifying the property sale price and terms.
The MLA supplement grants the individual broker the sole right and authority to sell a
property during the time set forth in the Listing Supplement (or any extension to it)
unless the Listing Supplement or the MLA is terminated early under Section 7 of the
MLA.
21.
When Fannie Mae assigns a property to a broker, the property is identified by an
asset number. Each asset number begins with a letter that identifies the Fannie Mae
office that assigned the asset. For example, properties assigned from Dallas began
with a “D”, properties assigned from Chicago began with a “C”, and properties assigned
from Los Angeles (Irvine) began with an “L.”
22.
Once a property has been assigned to a broker, the broker must visit the
property weekly, provide relocation assistance to the occupants, execute sheriff
assisted evictions, prepare repair scopes, work with general contractors to prepare
properties for sale, conduct and supervise necessary maintenance on the home and
property, and pay outstanding liens and utilities. The broker is responsible for giving an
opinion of an appropriate price, negotiating offers and coordinating property closings.
The broker is reimbursed for out of pocket costs incurred in these tasks and paid a
commission as compensation for these services.
23.
Fannie Mae typically makes assignments to brokers based on the location of the
broker’s office to the location of the REO properties. By assigning brokers inventory
geographically convenient to the brokers, Fannie Mae insures its brokers are available
to provide quick and efficient service to the properties in case of an emergency.
24.
During the time K.O. worked with Fannie Mae, brokers had to maintain and
preserve Fannie Mae’s assets while the assets were prepared for and listed for sale.
Fannie Mae’s mission statement was “Neighborhood Stabilization” for a period of time.
A broker such as K.O. was trained by Fannie Mae to act quickly to rehabilitate and
maintain any property after it was assigned to the broker.
25.
Throughout her tenure, Ms. Frisone and K.O. were among Fannie Mae's top
selling contract brokers and regularly received praise for their work. On May 1, 2011,
K.O. executed a new MLA with Fannie Mae. A copy of the MLA is attached as Exhibit 3.
From May 2011 through September 2012, K.O. worked with the REO Disposition
Department in Fannie Mae’s Dallas office.
K.O. discovered Brokers using fake offices and fraudulently obtaining vendor
numbers from Fannie Mae.
26.
In August 2011, two Fannie Mae sales representatives, Karen Vines and Lauren
Purcell, visited the Denver area with their newly assigned sales manager, Chris
Cordina, who replaced Chris Kocks. Typically, when sales representatives visited their
territories, the sales representatives met with all of the approved REO brokers in
interactive sales and training meetings, and, as a group, they all caravanned and
toured listings together. However, that did not occur on this visit. This time, the Fannie
Mae sales representatives, along with their new sales manager Chris Cordina, spent the
two days touring exclusively with a Colorado REO broker, The Powers Team. No other
approved REO brokers were included on the tours.
27.
After being in town for a few days and touring exclusively with the Powers Team,
the Fannie Mae Sales representatives invited the other approved REO brokers to meet
them for a happy hour at the Ship’s Tavern, a bar in the exclusive Brown Palace Hotel &
Spa where they were staying. When Ms. Frisone arrived at the happy hour, it was clear
that the Fannie Mae sales representatives and members of The Powers Team had
been there for quite some time. They were ensconced at a table and did not really
interact with the rest of the REO brokers. After a period of time, Ms. Purcell and Ms.
Vines mingled with the other REO brokers, but Mr. Cordina never left the table where he
sat talking with members of The Powers Team.
28.
Starting shortly after that August 2011 visit, a man named Ross Sheahan was
added to the Fannie Mae REO broker distribution list, and received REO property
assignments in the Highland’s Ranch Douglas County area.
29.
One year later, around August 2012, two Fannie Mae REO brokers told Ms.
Frisone about a strange situation involving The Powers Team. Typically, at that time in
the market, all of the long tenured, top selling brokers such as K.O. had 20-30
properties assigned
However, The Powers Team, a/k/a Colorado Realty Source, had
over 100 listings. The Powers Team was a fairly new team in comparison to the others.
It was odd that The Powers Team would get so many assignments without having had
the benefit of Fannie Mae’s extensive training the longer tenured Brokers had received.
For example, in addition to the discontinued interactive training previously received
during the sales rep territory visits, in November 2008, Fannie Mae required all vendors
nationwide to attend mandatory training at the Hilton Anatole in Dallas in anticipation of
the flood of default inventory. The Powers Team had not participated in that training.
Yet, K.O. learned that newly hired Ross Sheahan and Joe Powers, both on the same
team, had four times the inventory as other historically top producing broker teams. The
members of The Powers Team are white males.
30.
Fannie Mae rules prohibit having multiple MLA’s with the same brokerage office.
As noted, Fannie Mae’s ProcureOne system will not allow a potential vendor to register
if there is a duplicate supplier already. (Ex. 2, p. 6). Thus, Mr. Sheahan could not be
added as a Fannie Mae Broker unless he had an office separate from that of Joe
Power’s office. Mr. Sheahan would need to be in his own brokerage office to obtain an
independent second vendor number, and receive REO asset assignments.
Furthermore, Mr. Sheahan’s office would need to have been in business for over one
year and to have at least three W-2 employees on his company’s payroll to legitimately
quality as a Fannie Mae vendor (Exhibit 1).
31.
Ms. Frisone learned that Mr. Sheahan worked with Mr. Powers. Because she
was always told that having two brokers in one office violated Fannie Mae’s regulations,
Ms. Frisone investigated this issue. As a member of The Powers Team, Mr. Sheahan
would not have had a company in business for over one year or three W-2 employees.
32.
Per the Colorado Division of Real Estate, Mr. Powers and Mr. Sheahan were
both members of Colorado Realty Source at 1225 Logan Street, Denver CO 80203. A
copy of the Colorado Division of Real Estate listing is attached as Exhibit 4. However,
in Fannie Mae’s HomePath.com listing, Joe Powers listed his company named as
Colorado Realty Sources, not “Source.” A copy of a Homepath.com listing with this
information is attached as Exhibit 5. In the Multiple Listing Service (“MLS”), Mr.
Sheahan’s address was also listed as 1225 Logan Street, Denver, Colorado, 80203. A
copy of the MLS listing showing this address is attached as Exhibit 6. The Logan Street
address is in Northern Denver.
33.
However, in Fannie Mae’s HomePath website, Mr. Sheahan listed his office
address as 280 Plaza Drive, Highlands Ranch, CO 80126. Copies of the Fannie Mae
Homepath.com listings of Ross Sheahan’s office address as 280 Plaza Drive, Highlands
Ranch, Colorado 80126 are attached as Exhibit 7. This address is in Southern Denver
and includes an area not normally assigned to a broker in Northern Denver (such as
The Powers Team or K.O.). Ms. Frisone drove to the 280 Plaza Drive address listed as
Mr. Sheahan’s office and discovered that no building exists at that address. Because
there was no building at 280 Plaza Drive, Highlands Ranch, Colorado, Ms. Frisone
investigated further. There is a building at 200 Plaza Drive. Ms. Frisone went into that
building and found it contained executive suites. Ms. Frisone asked for Mr. Sheahan.
The receptionist had never heard of him and told Ms. Frisone she may have been
mistaken. Then, the office manager, overhearing that conversation, stepped in and
stated that Mr. Sheahan was part of the Joe Powers Team up north, and they rented an
executive suite there, but that Mr. Sheahan never actually worked at that address. The
Manager explained they have a number of nonresident Brokers who simply used that
location for mail purposes only, and they do not actually work at that location.
This is
common for traditional REALTORS® who provide services to the public, and work
primarily from home. It is not practical or possible for a volume REO property
management and sales operation, as Fannie Mae was aware when it established its
vendor procurement policies.
34.
Ms. Frisone also realized there was a conflict between how the properties were
listed between Fannie Mae’s Homepath.com website and the Denver MLS site. One
property in Exhibit 7 is 10079 Silvercliff Lane, Littleton, Colorado 80125. In Fannie
Mae’s Homepath.com website listing, Ross Sheahan of Colorado Realty Source, 280
Plaza Drive, Highlands Ranch, Colorado is shown as the listing broker. However, in the
Denver MLS, the same property had the listing agent of “The Powers Team.” A copy of
the Denver MLS is attached as Exhibit 8. According to the Denver MLS records, Mr.
Sheahan has never listed a Fannie Mae REO property.
Instead, 100% of Mr.
Sheahan’s Fannie Mae listings were listed as “The Powers Team” at the 1225 Logan St
address. They were only identified as Ross Sheahan’s listings in Fannie Mae’s
HomePath.com website.
35.
Ms. Frisone realized this fake office scheme allowed Mr. Sheahan and The
Powers Team to fraudulently induce Fannie Mae to issue a vendor identification
number for Mr. Sheahan in contravention of Fannie Mae’s procurement policies. This
allowed The Powers Team to obtain substantially more inventory than what was
normally assigned to any individual REO team. It also resulted in The Powers Team
getting property assignments in the southern sector of Denver’s suburbs, much farther
away from the proximity in which The Powers Team would normally receive
assignments from their north office location.
36.
Because of the volume of properties assigned to Mr. Powers and Mr. Sheahan
combined, Ms. Frisone was concerned that The Powers Team could not properly
preserve and maintain the Fannie Mae assets assigned to it given the size of its official
office roster. Because of the bricks and mortar nature of the industry, and the physical
hands on property management requirements meticulously outlined in the Fannie Mae
REO Broker Guidelines, management of a volume REO practice requires proper staff.
Given what she knew about the size of The Powers Team staff, compared to the
number of assets assigned to them at that time, Ms. Frisone did not believe that The
Powers Team had the resources to properly service and maintain the Fannie Mae
assets as required by the MLA between a broker and Fannie Mae.
37.
The fact that brokers were using false statements and fake office addresses to
fraudulent obtain vendor identification numbers from Fannie Mae was a subject of
concern to many brokers. On August 22-23, 2012, Ms. Frisone attended a Freddie Mac
Regional training meeting in St. Paul, Minnesota. While Ms. Frisone was at the
meeting, the topic of brokers using fake offices to obtain additional vendor numbers was
the subject of widespread discussion among the attending brokers, many of whom (like
K.O.) had relationships with Fannie Mae in addition to Freddie Mac.
38.
In doing some additional research, Ms. Frisone discovered that Mr. Sheahan and
The Powers Team were not the only vendors who used fake offices to get established
as vendors for Fannie Mae. Ms. Frisone discovered many other examples of this
occurring in other parts of the country.
39.
Because numerous Fannie Mae documents (such as the MLA, REO Sales
Guidelines, Supplier Services Rules and Expectations and the Fannie Mae Code of
Conduct) all require Ms. Frisone to report suspected fraud, Ms. Frisone knew she
needed to report this use of fake offices to fraudulently induce vendor relationships, the
circumvention of Fannie Mae policies, and the harm to Fannie Mae’s assets. By using a
fake office address and fake business name to fraudulently obtain his own vendor
number, Mr. Sheahan fraudulently induced Fannie Mae to set him up as a vendor. He
was then able submit claims to Fannie Mae and obtain payment through this fraudulent
scheme. Because Fannie Mae is a government sponsored enterprise chartered by
Congress and under the conservatorship of the Federal Housing Finance Agency
(“FHFA”), this fraudulent inducement scheme caused false claims to be submitted to the
government.
40.
Because of her long relationship with Fannie Mae, Ms. Frisone fully knew of
Fannie Mae’s obligations to make complete and accurate reports to the federal
government about its business practices in order to receive Treasury funding.
As required by Fannie Mae, Ms. Frisone reported the fraudulent activity she
discovered to Chris Cordina of Fannie Mae’s Dallas office. K.O. was immediately
retaliated against by Fannie Mae after this meeting.
41.
Ms. Frisone contacted Chris Cordina, her Sales Manager at the time, on August
31, 2012 to schedule a meeting with him while she was attending the Five Star
Conference in Dallas. However, Fannie Mae’s Dallas office knew of Ms. Frisone’s
concerns about this fraudulent inducement even before Ms. Frisone met with Mr.
Cordina. After Ms. Frisone returned from the mid-August Freddie Mac training session,
Ms. Frisone had a telephone conference with Greg Wood, a Fannie Mae Sales
representative from whom she regularly received property assignments.
Mr. Wood
asked Ms. Frisone if she had attended the recent Regional Freddie Mac training in
Minnesota. When she said yes, Mr. Wood asked her if she was the person running
around talking about the fake offices. This odd conversation reaffirmed to Ms. Frisone
she needed to report this activity to a senior level as soon as possible.
42.
When attending the Five Star Conference in Dallas, TX the following month Ms.
Frisone was randomly seated at table during a 5-Star FORCE event with Bill Cullinan, a
Fannie Mae employee who had been K.O.’s Sales Manager from 2007 through 2011.
Ms. Frisone asked Mr. Cullinan a hypothetical question about whether two brokers from
the same office could have separate vendor ID numbers, and if brokers could be set up
as approved Fannie Mae brokers by using fake office addresses. Mr. Cullinan was
shocked and said that if Ms. Frisone knew of such a situation, she needed to tell
someone. When Ms. Frisone told Mr. Cullinan she had a meeting scheduled with Mr.
Cordina to do just that, he replied, “Good.”
43.
On September 6, 2012, Ms. Frisone met privately with Mr. Cordina to discuss the
fraudulent inducement of vendor numbers by fake offices and other false statements.
During that meeting, Ms. Frisone alerted Mr. Cordina that The Powers Team had two
brokers in the same office. She asked why The Powers Team had two vendor
identification numbers in one office location despite Fannie Mae policies to the contrary,
and pointed out the second office address was a non-existent office address where no
building actually existed. Ms. Frisone questioned why The Powers Team had four
times as many properties as any other Denver broker. When Ms. Frisone showed Mr.
Cordina a copy of the Colorado Division of Real Estate listing that showed Mr. Powers
and Mr. Sheahan worked in the same firm (Exhibit 4), he refused to look at it and
physically pushed the documents back at her. Ms. Frisone provided examples to Mr.
Cordina that the physical condition of the Fannie Mae Assets was suffering and many
were being misrepresented in the MLS (Multiple Listing Service).
44.
In doing so, Ms. Frisone was reporting fraud and a violation of Fannie Mae’s
policies to Mr. Cordina, as the MLA and other Fannie Mae policies required she do. Ms.
Frisone was explaining Mr. Sheahan’s separate vendor number was fraudulently
induced through the fraudulent use of a fake office address and a fake company name
(which closely resembled the correct company name). This resulted in his obtaining a
vendor number fraudulently and being allowed to fraudulently submit claims to Fannie
Mae for payment. Because she knew preservation of assets was a key Fannie Mae
concern, Ms. Frisone tried to explain to Mr. Cordina how this fraudulent activity harmed
Fannie Mae’s assets, increased holding costs and caused lost equity.
45.
Shockingly, Mr. Cordina refused to engage in the discussion and abruptly cut Ms
Frisone off as she tried to explain the fraudulent activity. He was not interested in
hearing about the fake offices and fraudulent inducement of vendor numbers, the
fraudulent circumvention of Fannie Mae guidelines, or the harm to Fannie Mae assets.
Instead, he shouted at Ms. Frisone they were “not going to talk about Joe Powers. Not
now. Not ever.” Mr. Cordina became quite angry and stood up and paced around the
room. He even waved his arms and shook his finger at Ms. Frisone, telling her she
needed to worry about herself and that he would not discuss another broker with her.
When Ms. Frisone pointed to the Fannie Mae Code of Conduct that required her to
report the fake offices, fraudulent circumvention of Fannie Mae’s vendor policies and
the preferential treatment given to The Powers Team, Mr. Cordina told her that if she
brought the issue up again, she would be fired. When he threatened to fire Ms. Frisone,
she responded, “For what, reporting fraud? Aren’t there laws against that?” Ms.
Frisone, who had the Employee Code of Conduct with her in the meeting, pointed out
the anti-retaliation policy to Mr. Cordina and asked how she could be fired for making
such a report. Ms. Frisone noted that K.O. had a spotless record with Fannie Mae and
had never been reprimanded for poor performance or anything else. Mr. Cordina then
referred to an alleged incident with sales representative Karen Vines. When Ms.
Frisone told Mr. Cordina she knew of no incident with Karen Vines and suggested they
telephone Ms. Vines together at that moment to find out what Mr. Cordina was talking
about, Mr. Cordina immediately backed down.
46.
Mr. Cordina then stated he would be happy to discuss any other concerns Ms.
Frisone had, as long as they did not involve The Powers Team. Ms Frisone told Mr.
Cordina of the incident where a former evicted homeowner of property 128 Karlann St.
took up a campsite residence on the vacant lot next door, and harassed all potential
buyers who came to view the property. Ms Frisone had filed a complaint for Fannie
Mae with the local Sheriff and cooperated with local law enforcement to have the former
owner removed for “illegal camping”. The occupant could not be removed by the
Sherriff until 30 days from the complaint had passed. On the 26th day, after getting a call
from a concerned Buyer’s Agent about the threats made to her client, Ms. Frisone
informed her sales representative, Hani Kelly, that the public may be in imminent
danger and K.O. should stop showing the property for four more days until the
disgruntled evicted former homeowner could be legally removed. Ms Kelly immediately
reassigned the property to Joe Powers, and told Ms. Frisone that Mr. Powers would not
be afraid to market the property. The Sheriff was upset and dismayed that Ms. Frisone
could no longer be a witness in his “illegal camping” charges. The case against the
evicted homeowner was dismissed.
Mr. Cordina stated that Ms. Kelly told him of the
incident, and he approved the reassignment of the asset. Mr. Cordina then ended the
meeting.
47.
Ms. Frisone was dismayed by Mr. Cordina’s reaction to her report of the use of
fake offices and false statements to fraudulently induce Fannie Mae to enter into vendor
relationships and how this resulted in false claims being submitted to Fannie Mae. She
was dismayed that Mr. Cordina would not even review the documents she had gathered
to prove a fake office was being used by Mr. Sheahan to fraudulently induce Fannie
Mae into setting him up as a vendor, that a false business name was used that closely
resembled the correct business name, and that Mr. Sheahan was a broker with The
Powers Team who should not have been granted a separate vendor number by Fannie
Mae. Ms. Frisone was dismayed that Mr. Cordina was not interested in learning how
The Powers Team was being given preferential treatment through this fraudulent
scheme to the detriment of Fannie Mae and other brokers. Ms. Frisone was dismayed
Mr. Cordina ignored the safety of the public where the Karlann property was concerned.
In hindsight, after Ms. Frisone recalled how Mr. Cordina socialized only with The
Powers Team during his August 2011 Denver visit, his conduct made more sense.
48.
Ms. Frisone was convinced that K.O.’s long relationship with Fannie Mae had
come to an end and that Mr. Cordina would make good on his threat to fire K.O.
because she made this report of fraud. When Ms. Frisone left the meeting, she was
visibly distraught. Several other conference attendees saw her and asked her how the
meeting went. She told those brokers she believed K.O. would be fired because of the
information she had given Mr. Cordina. She then called her office and told them that
the meeting did not go well, and that she believed she would be fired as a result.
49.
Ms. Frisone’s worst fears proved true. The retaliation against K.O. began
immediately. In the few weeks following her conversations with Mr. Wood and Mr.
Cordina, K.O.’s property assignments declined dramatically. K.O. believes that the
property assignment declined because Mr. Cordina made good on his threat.
Fannie Mae’s retaliation against K.O. continued and even escalated when
oversight of K.O. was transferred to Fannie Mae’s Irvine office. K.O.’s property
assignments fell dramatically.
50.
A few weeks later, Fannie Mae ostensibly transferred oversight of the Colorado
brokers from the Dallas, Texas office to the Irvine, California office and the phase-out of
K.O. began in earnest. Ms. Frisone’s new sales representatives were Kelvin Zelaya,
Kenneth Chow and Linda “Candy” Tompkins. The new Sales Manager was Eileen
Conrad. Although the files being assigned to the Colorado brokers were supposed to
be coming from the California office, the files continued to have a “D” designation
(meaning the Dallas office) instead of an “L” designation for the Los Angeles (Irvine)
office. It is questionable whether the file assignments were truly originating from the
Irvine office. For the first time ever, the sales representatives would not disclose which
zip codes they were responsible for, which made it difficult to ask questions about
territories.
51.
When this transfer occurred, Fannie Mae’s Dallas office retaliated against K.O.
by disparaging Ms. Frisone and K.O. to the Irvine sales representatives to insure that
K.O. got no new property assignments. Shortly after the introductory conference call,
Mr. Zelaya phoned Ms. Frisone and told her that the “Dallas people had nothing good to
say” about Ms. Frisone and that she “was trouble.” He asked her why she thought they
would say that. Ms. Frisone, hoping for a fresh start with the Irvine office, urged Mr.
Zelaya to look at her history of performance so he would understand she was a top
performer. Mr. Zelaya confirmed he had reviewed her file and was impressed with her
numbers and that the Irvine office would give her the benefit of the doubt, in spite of the
warnings from the Dallas Fannie Mae employees.
52.
Despite this promise, the number of property assignments that K.O. received was
just a small fraction of the available inventory the first month and then next to nothing
moving forward. While inventories for all brokers were lower than in the past, The
Powers Team, including Ross Sheahan with his fake office and fraudulently obtained
vendor number, continued to receive an inexplicably high volume of assignments,
allowing the submission of false claims to Fannie Mae.
53.
While frustrated by the lack of assignments, Ms. Frisone thought it best to take a
wait and see approach to see if her inventory volume would increase. During the next
six months (September 2012 to March 2013), Ms. Frisone made no complaints to
anyone at Fannie Mae. However, K.O. received a very low volume of assignments,
particularly as compared to other brokers, including The Powers Team. After six
months of patiently waiting, Ms. Frisone finally had to conclude that Mr. Cordina had
made good on his threat and that K.O. had been effectively fired from the moment Ms.
Frisone had told Mr. Cordina about the fake offices and the fraudulent circumvention of
Fannie Mae policies. As she was selling off her existing inventory, and it was not being
replenished with any new inventory, Ms. Frisone knew it would only be a matter of time
before she had no inventory left at all.
Ms. Frisone reported the fake offices, fraudulently obtained vendor numbers and
other issues to multiple Fannie Mae employees in the Irvine office. None took
K.O.’s claims seriously. One asked Ms. Frisone for a bribe. And, Fannie Mae
continued to retaliate against K.O.
54.
Because she was frustrated by the continued decline in the K.O. assignments,
Ms. Frisone finally raised the fraudulent office situation and the fraudulent circumvention
of Fannie Mae policies with both Mr. Zelaya and Ms. Tompkins. When Ms. Frisone
mentioned it to Mr. Zelaya, he ignored her. Because she had been threatened by Mr.
Cordina with termination if she ever mentioned the fake offices again, when discussing
the fake offices and fraudulent inducement of vendor numbers through this fraudulent
circumvention of Fannie Mae policies with the Irvine office, Ms. Frisone tried to explain
how this harmed the preservation of Fannie Mae assets. When Ms. Frisone mentioned
the net effect of this broker’s fraudulently obtaining a vendor number and how Fannie
Mae assets were being neglected, Mr. Zelaya told Ms. Frisone that asset preservation
issues no longer mattered.
55.
In October 2012, Ms. Frisone suspected (but had no proof) that certain Fannie
Mae employees were soliciting and receiving kickbacks from brokers and vendors. For
example, Ms. Tompkins had directed brokers to use a particular general contractor,
Clearwater Contracting, to prepare repairs on properties even though the MLA makes
the broker responsible for the supervision of maintenance and repairs on REO assets.
Brokers generally selected their own contractors from a list of approved vendors.
Clearwater Contracting opened an office in Denver only after the Irvine Fannie Mae
office assumed oversight of Colorado brokers. After Ms. Frisone told Lisa Hay,
Clearwater’s owner, about the decline in her assigned properties, Ms. Hay told Ms.
Frisone to go to California because Ms. Tompkins loved big expensive dinners and that
if Ms. Frisone treated Ms. Tompkins right, Ms. Tompkins would treat Ms. Frisone right.
56.
On March 1, 2013, Ms. Frisone traveled to Santa Ana, California to attend a Five
Star FORCE meeting. While she was in town, she asked to meet with all of the sales
representatives, but Ms. Tompkins was the only one who agreed to meet her. Ms.
Tompkins met Ms. Frisone for lunch. During this lunch, Ms. Frisone also mentioned the
fake office situation and how two brokers in the same office had fraudulently obtained a
second vendor number, which allowed them both to receive property assignments and
thus submit claims for payment to Fannie Mae in contravention of Fannie Mae’s policies
and regulations. Echoing Mr. Cordina’s threat, Ms. Tompkins urgently told Ms. Frisone
to never bring this up again or she would be fired. Ms. Tompkins made that statement
several times. When Ms. Frisone asked why Fannie Mae would fire her for something
like that and why Fannie Mae would not want to know about it, Ms. Tompkins firmly
stated Ms. Frisone should never bring it up again if Ms. Frisone wanted to keep her job.
When Ms. Tompkins made this threat, Ms. Frisone notified several of her office staff and
other friends of this threat, including Tiffany Baublitz, Nicolette Neuman, Diane
Wermager, Kristin Hayes, Don Delisa, and other Brokers and GCs still employed by
Fannie Mae.
57.
Despite Fannie Mae’s clear guidelines that required Ms. Frisone and Ms.
Tompkins to each pay for their portion of the meal, Ms. Tompkins asked Ms. Frisone to
pay for the entire lunch and additionally suggested that Ms. Frisone give her $100 in
cash. Ms. Frisone was shocked because she thought that Ms. Tompkins was seeking a
bribe. Ms. Frisone did not give Ms. Tompkins the additional $100.
58.
On March 15, 2013, Ms. Frisone reported the fraudulent conduct she had
observed to the Sales Manager, Eileen Conrad, via telephone. During the
approximately one hour long telephone call, Ms. Frisone told Ms. Conrad about how
Kelvin Zelaya often tried to get additional cash funds from buyers, outside of the HUD
documents. Ms. Frisone also mentioned the fraudulent inducement of vendor numbers
through the fake offices she discovered, the resulting steering of work to The Powers
Team, including Mr. Sheahan, the fraudulent circumvention of Fannie Mae’s policies
that allowed two brokers from the same firm to fraudulently get two vendor numbers and
to fraudulently submit claims to Fannie Mae, the steering of contract work to Clearwater
and Ms. Tompkins’ actions that appeared to be a request for a bribe or kickback.
59.
The call started with Ms. Frisone complaining about how Mr. Zelaya refused to
sign an amendment while the buyer sat at the closing table for over three hours
because Mr. Zelaya wanted to collect an additional $500. The closing documents were
already locked in at the title company so the price and terms could not be changed.
However, Mr. Zelaya kept telling Ms. Frisone to “be creative, think outside of the box”
When Mr. Zelaya had Ms. Frisone on the phone, he told her that “These are investors,
surely they can figure out a way to give me the extra $500.” Ms. Frisone immediately
documented this extortionary request in an email. Mr. Zelaya then quickly tried to deny
making such a request.
60.
Because this had been escalated to Ms. Conrad via email, Ms. Conrad requested
that Ms. Frisone call her. When Ms. Frisone reached Ms. Conrad, Ms. Frisone told her
everything. Referring to the fake office issue and how that resulted in two brokers from
the same office each getting a vendor number, Ms. Conrad dismissed it by saying, “I’ll
look into it.” When Ms. Frisone told her of the Candy Tompkins incident and request for
$100, Ms. Conrad stated, “Perhaps you misunderstood.” Ms. Frisone though this
reaction was odd, especially since Ms. Conrad made no further inquiries about Ms.
Frisone’s allegations, and was quick to change the subject. Ms. Frisone noted she had
received proportionally far fewer property assignments since she reported the fraudulent
inducement of vendor numbers through the use of fake offices to Mr. Cordina in Dallas
in September 2012. Ms. Frisone also told Ms. Conrad that the properties assigned to
the vendor with the fake office were not being properly maintained and that Fannie
Mae’s assets were being harmed, resulting in longer holding costs and lost equity to the
federally chartered GSE.
61.
Ms. Conrad said she would look into the matter. Later that same day, Mr. Zelaya
and Ms. Tompkins each gave K.O. two property assignments, which would be the last
properties ever assigned to K.O. by Fannie Mae. K.O. completely serviced and
rehabilitated those four properties, but was never paid for that work as all four were
assigned to different brokers when they were ready for sale.
62.
As it became clear through the lack of property assignments that K.O. continued
to be retaliated against for the complaints of fraud, Ms. Frisone became more vocal in
her protests. On April 20, 2013, Ms. Frisone emailed to Ms. Conrad and the Irvine
Sales Representatives pointing out there was no shortage of REO assets in her area,
as shown by the County records and MLS statistics, and the number of assets assigned
to The Powers Team. She asked for an explanation of Fannie Mae’s refusal to assign
any properties to K.O. This enraged Ms. Conrad, who quickly scheduled a conference
call with Ms. Frisone and the Irvine sales representatives for April 23rd. In that call, Ms.
Conrad berated Ms. Frisone for being unprofessional and then hung up on her.
63.
After the April 23, 2013 conference call, Ms. Frisone called Fannie Mae’s
Compliance and Ethics Hotline. Ms. Frisone reported the abusive and disrespectful
behavior of Ms. Conrad and Mr. Zelaya, the fake offices which resulted in two brokers
from the same office each receiving a vendor number (the effect of which is that they
can fraudulently submit false claims to Fannie Mae for payment), the decline in the
maintenance and preservation of Fannie Mae properties, and the apparent complicity of
Fannie Mae employees in a scheme to circumvent Fannie Mae rules and to defraud
Fannie Mae. Ms. Frisone also reported that Fannie Mae’s management had stopped
caring about asset preservation and was now assigning properties to brokers who did
not conform to Fannie Mae standards and who did not fulfill their contractual obligations.
Each month, in the broker conference calls, Ms. Conrad and her sales team scolded
brokers for failing to follow Fannie Mae guidelines and making mistakes. Although K.O.
and its team did not make mistakes and consistently followed the Fannie Mae
guidelines to the letter, K.O. still received no new assignments. Ms. Frisone reported
that Ms. Conrad, Mr. Zelaya, Mr. Chow, and Ms. Tompkins constantly reassured her
there was nothing wrong with K.O.’s performance, and that the asset distribution was
done by zip code and there were simply no properties in K.O.’s zip code. Ms. Frisone
explained that the statistical data did not support that excuse and even sent in a
spreadsheet to support her argument. Ms. Frisone explained she believed K.O. was
being retaliated against because of Ms. Frisone’s meeting in Dallas with Mr. Cordina in
September 2012 in which she first reported the fraudulent inducement of vendor
relationships.
64.
Fearing she had permanently damaged K.O.’s standing with Fannie Mae, Ms.
Frisone emailed to Ms. Conrad on April 28, 2013 sincerely apologizing for her earlier
comments and indicating additional research now indicated to Ms. Frisone there were
fewer assets to be assigned by Fannie Mae to brokers. However, when Ms. Frisone
sent that email, she did so in a desperate attempt to repair her relationship with the
Irvine sales team as they were responsible for her livelihood and the livelihood of the
thirteen employees in K.O.’s office. Ms. Frisone’s research had not actually convinced
her that fraud was not occurring at Fannie Mae. Ms. Frisone was not convinced that
Fannie Mae did not have inventory in her zip code as the statistics supported her. Ms.
Frisone was not convinced Fannie Mae was not utilizing or favoring brokers with fake
offices in circumvention of Fannie Mae’s policies and procedures. However, Ms.
Frisone was afraid that K.O. would be formally terminated as Fannie Mae employees
had previously threatened.
65.
Ms. Frisone’s apology was apparently not accepted as the Irvine office continued
to refuse to assign new properties to K.O. In fact, K.O. never received another Vendor
Newsletter after April 22, 2013.
Fannie Mae gave K.O. false and pretextual reasons for Fannie Mae’s continued
refusal to give K.O. new property assignments, but allowed her to service
properties that would soon be reassigned.
66.
During the times she had asked for explanations for the lack of assignments, Ms.
Frisone was given a variety of shifting explanations for the reason that K.O.’s inventory
was down, including that inventory was down across the board or that Fannie Mae was
downsizing vendors and giving preference to HERA certified vendors. These
explanations were false and a pretext for the retaliation. Shortly after Ms. Frisone was
given the explanation that inventory was down and there was nothing new to be
assigned, the Irvine sales team announced in a conference call they were “flooded” with
new inventory. None of it was assigned to K.O.
67.
Ms. Conrad also told Robbie McClure that only the HERA certified Brokers would
be retained when he inquired about inventory. To the extent that Ms. Conrad noted
preference was given to HERA certified vendors, K.O. was one of the very few Fannie
Mae vendors with the HERA certification. Yet K.O. received no new property
assignments.
Ms. Frisone escalated her complaints of fraudulent activity to Brandon Lawler,
the Sales Director of Fannie Mae’s Irvine office in May 2013.
68.
On May 22, 2013, Ms. Frisone participated in a mandatory conference call for
brokers. During that call, Brandon Lawler, the Sales Director of Fannie Mae’s Irvine,
California office, stated Fannie Mae was an ethical company that followed the letter of
the law and he assured the call participants his door was always open to anyone who
suspected misconduct. The following week, on May 27th, 2013, an article about
kickbacks at Fannie Mae was published in the Los Angeles Times.
69.
Shortly after this mandatory broker call, Ms. Frisone called Mr. Lawler and
reported all of her grievances, including the unfair asset distribution, the neglect of the
assets, the fraudulent inducement of vendor numbers through the use of fake offices
and other false statements which resulted in payments to vendors who had obtained
their vendor numbers through fraud, the failure to preserve assets, and the apparent
complicity of Fannie Mae employees in a scheme to circumvent Fannie Mae rules and
to defraud the company. Before Ms. Frisone could advise Mr. Lawler of the attempts to
solicit a bribe, Mr. Lawler cut her off. Mr. Lawler quickly dismissed Ms. Frisone stating
he was headed out of town for the Memorial Day weekend, and that he would look into
her complaints when he returned.
70.
Completely unknown to Ms. Frisone at this time, the Irvine office was in the midst
of an investigation regarding sales representatives’ solicitations of bribes and kickbacks
from brokers. Given the Irvine office was in the midst of a corruption investigation by the
FBI and the FHFA OIG, it seems like the natural result of Ms. Frisone’s complaints is
that Fannie Mae would take her reports of fraud seriously and investigate her claims.
Sadly, this did not occur. Instead, Fannie Mae tried to eliminate Ms. Frisone as a
possible witness to the federal investigation.
71.
When Mr. Lawler had not responded to her questions by June 3, 2013, Ms.
Frisone sent Mr. Lawler an email following up on the conversation and asking again if
her dismissal from the Fannie Mae network was in retaliation for her speaking up about
some issues. Mr. Lawler did not respond to Ms. Frisone’s email.
Fannie Mae finally attempted to fire K.O. in retaliation for its complaints of fraud.
Fannie Mae’s termination is not legally effective because Fannie Mae’s notice of
termination terminates a non-existent agreement. Fannie Mae actually renewed
its MLA with K.O.
72.
Instead, Fannie Mae sent the letter attached as Exhibit 9 to Ms. Frisone on June
5, 2013. Ms. Frisone received this letter on June 6, 2013.
73.
This letter is undated and does not identify the drafter of the letter. Although the
letter is signed, the signature is not legible. The letter refers to the “Fannie Mae Listing
Agreement between Karen Frisone and Fannie Mae dated May 1, 2011.” The letter
then states that “pursuant to Section 7 of the above referenced Fannie Mae Master
Listing Agreement, Fannie Mae is terminating” the MLA. The effective date of
termination was June 6, 2013. However, no such MLA exists.
74.
This undated letter did not terminate the MLA between K.O. and Fannie Mae.
75.
Not only did Fannie Mae not properly terminate K.O.’s MLA, Fannie Mae entered
into a new MLA with K.O. On January 22, 2013 and February 5, 2013, Fannie Mae
communicated to its brokers a new MLA was required. A copy of the February 5, 2013
email is attached as Exhibit 10. Fannie Mae asked each Broker to execute the new
MLA using HomePath.com, which K.O. did on February 6, 2013. Fannie Mae executed
the new MLA with K.O. on July 11, 2013.
76.
On July 16, 2013, Fannie Mae notified K.O. that the fully executed agreement
was posted online. A copy of the July 16, 2013 email is attached as Exhibit 11. The
new MLA was signed by John Liszka, Vice President of REO Sales and was posted to
Fannie Mae’s HomePath website, where it is still accessible to this day. When Fannie
Mae uploaded this file, it contained four pages. The signature box on the third page of
the uploaded file is blank. However, the signature box on the fourth page was fully
completed. A copy of the signature pages of K.O.’s executed current MLA are attached
as Exhibit 12. Presumably, before Mr. Liszka, a Fannie Mae Vice President, signed
this MLA, Mr. Liszka would have reviewed K.O.’s vendor file to determine if K.O. was a
vendor in good standing. If K.O.’s vendor file reflected that K.O. was not in good
standing or that K.O. had been terminated as a vendor over a month before, it seems
likely that Mr. Liszka would not have signed the new MLA for Fannie Mae on July 11,
2013.
Fannie Mae’s retaliation against K.O. took many forms, which includes filing this
lawsuit the day after K.O. notified Fannie Mae of claims against it. Fannie Mae
damaged K.O. in a variety of ways.
77.
Throughout the spring and summer of 2013, both before and after Fannie Mae’s
ineffective attempt to terminate the MLA with K.O, Ms. Frisone was reporting fraud
through various channels at Fannie Mae. K.O. continued to be subjected to retaliation.
K.O. received no new property assignments. Fannie Mae attempted (ineffectually) to
terminate the MLA with K.O. Fannie Mae delayed in executing the new MLA with K.O.
Properties previously assigned to K.O. were reassigned to other Denver brokers despite
the Listing Supplement having not expired and Fannie Mae had not effectively
terminated the MLA with K.O.
78.
Frequently , Ms. Frisone was not told by Fannie Mae of the property
reassignment. Instead, Ms. Frisone learned of some reassignments when she was
contacted by the new broker and asked to assist on the listing. This continued through
May 2013.
79.
On the few properties still assigned to K.O., Fannie Mae improperly interfered
with K.O.’s ability to fulfill its contractual duties by getting those properties rehabilitated
and to market quickly.
80.
K.O. has contractual responsibilities to assess the properties and arrange for
necessary repairs so the properties could be listed and sold quickly . The MLA advised
brokers time is of the essence in performing the duties required by the MLA. However,
Fannie Mae thwarted K.O.’s ability to timely and properly perform its contractual duties
by delaying and refusing to respond to K.O.’s repair requests. Frequently , K.O. had to
make four requests for routine repair approvals. K.O. requested approvals for the
repairs on April 1, 2013 and was still waiting on the approvals as of May 15, 2013. This
prevented K.O. from timely listing and selling the properties and impaired K.O.’s ability
to earn the commission that would compensate K.O. for the work it put in assessing the
properties and getting the properties ready to be listed for sale. Meanwhile, K.O.
continued to maintain the properties.
81.
After June 6, 2013, Fannie Mae retaliated against K.O. by removing all properties
then assigned to K.O. even though Fannie Mae had not properly terminated K.O.’s MLA
and the Listing Supplements on those properties had not yet expired.
82.
Even though K.O. was not properly terminated, Fannie Mae treated K.O. as
terminated. Ms. Frisone, not a lawyer, also incorrectly believed that K.O. had been
terminated.
83.
K.O., under the terms of the MLA, attempted to recoup the expenses and time
spent preparing the few remaining Fannie Mae properties for market. K.O. timely
submitted a request for repayment of expenses and a management fee for the listings
removed from K.O. K.O. requested management fees for assets D13051M, D130719,
D13074P, D130517, D130502, D130511, D120VBX, and D120C4S. Despite K.O.’s
timely submission of the request for management fees, Fannie Mae denied K.O.’s
request on July 15, 2013.
84.
On June 6, 2013, after Fannie Mae’s ineffective attempt to terminate K.O., Ms.
Frisone’s suspicions about Fannie Mae employees were confirmed.
Ms. Frisone
learned that Armando Granillo, a sales representative in the Irvine office, had been
arrested in March 2013 for demanding kickbacks from a real estate broker for providing
listings to that broker. One week after Fannie Mae attempted to terminate K.O., Fannie
Mae fired James Tiegen, the Vice President who oversaw the Irvine office and other
regional offices. A former Fannie Mae employee, Cecilia Carter, also allegedly fired for
reporting kickbacks and fraud, and who also has similar pending litigation, has
described the practice of soliciting kickbacks at Fannie Mae as widespread. Armando
Granillo, the former Fannie Mae employee arrested for demanding kickbacks, said it
was a natural part of business at Fannie Mae. These matters were reported in
newspaper articles published by the Los Angeles Times.
85.
After Fannie Mae learned of the corruption in its California office, Fannie Mae
modified its procedures for assigning properties to REO brokers. Fannie Mae no longer
allowed sales representatives to assign properties to brokers. Instead, property
assignment was moved back to Fannie Mae’s Dallas office and began to be handled by
the Vendor Operations department on a rotational basis. Even though Fannie Mae had
not tried to terminate K.O. when this change in procedure took place, K.O. never
received a property assignment from the Vendor Operations department . Thus, K.O.
had already been effectively fired. Otherwise, K.O. should have been in the rotation to
receive assignments beginning May 1, 2013.
86.
After Fannie Mae’s attempted termination of K.O., K.O. retained counsel. On
July 16, 2013, K.O.’s counsel notified Fannie Mae that K.O. had potential claims against
Fannie Mae, including claims under the False Claims Act. Fannie Mae sued K.O. the
very next day.
Declaratory Judgment
87.
K.O. incorporates the allegations set forth in the previous paragraphs as if
restated herein.
88.
A dispute exists concerning whether Fannie Mae properly terminated the May 1,
2011 MLA between K.O. and Fannie Mae. The termination letter sent by Fannie Mae
terminated only a MLA agreement between Karen Frisone and Fannie Mae dated May
1, 2011. No such agreement exists.
89.
K.O. requests a declaration from this court that Fannie Mae did not properly
terminate the May 1, 2011 MLA between K.O. and Fannie Mae.
90.
K.O. also requests a declaration from this Court that Fannie Mae has entered
into a new MLA with K.O, a copy of which is attached as Exhibit 12, on July 11, 2013
and that the July 11, 2013 MLA is currently in effect.
91.
Under Tex. Civ. Prac. & Rem. Code § 37.007, K.O. seeks a jury trial on this
declaratory judgment claim.
92.
Under Tex. Civ. Prac. & Rem. Code § 37.009, K.O. seeks its costs and
reasonable and necessary attorney’s fees incurred in pursuit of this claim.
False Claims Act Retaliation
93.
restated herein.
94.
Fannie Mae is a government sponsored enterprise chartered by Congress and is
currently under the conservatorship of the Federal Housing Finance Agency. (Plaintiff’s
Original Complaint, ¶ 1, Dkt. 1 and Plaintiff’s Certificate of Interested Persons, Dkt. 2).
Fannie Mae is subject to the anti-retaliation provisions in the False Claim Act, 31 U.S.C.
§ 3730(h).
95.
The False Claims Act discourages fraud against the federal government by
imposing liability on any person who knowingly presents or caused to be presented a
false or fraudulent claim for payment or approval or who knowingly makes, uses, or
causes to be made or used, a false record or statement to get a false or fraudulent
claim paid or approved by the government. 31 U.S.C. § 2729(a). Claims, for purposes
of the False Claims Act, include any request for money that (i) is presented to an officer,
employee, or agent of the United States; or (ii) is made to a contractor, grantee, or other
recipient, if the money or property is to be spent or used on the Government’s behalf or
to advance a Government program or interest, and if the Unites States Government (I)
provides or has provided any portion of the money or property requested or demanded;
or (II) will reimburse such contractor, grantee, or other recipient for any portion of the
money or property which is requested or demanded. 31 U.S.C. § 3729(b)(2).
96.
According to a memo quoted by the Los Angeles Times (article attached as
Exhibit 13), Fannie Mae’s Chief Compliance Officer Nancy Jardini advised employees
that Fannie Mae defines “fraud as an intentional act or omission that affects, or could
affect, Fannie Mae, and that is done for the purpose of securing any improper gain or
benefit for Fannie Mae or anyone else.”
97.
The False Claims Act prohibits retaliation against those who report violations of
the False Claims Act. The anti-retaliation portion of the False Claims Act states:
Any employee, contractor, or agent shall be entitled to all relief necessary
to make that employee, contractor, or agent whole, if that employee,
contractor or agent is discharged, demoted, suspended, threatened,
harassed, or in any other manner discriminated against in the terms and
conditions of employment because of lawful acts done by the employee,
contractor, or agent or associated others in furtherance of an action under
this section or other efforts to stop 1 or more violations of this subchapter.
31 U.S.C. § 3730(h).
98.
K.O. engaged in activity protected under the False Claims Act. Fannie Mae
knew that K.O. had engaged in activity protected under the False Claims Act and
retaliated against K.O. because of lawful acts done by K.O. for K.O. and others in
furtherance of a False Claims action
99.
There is no requirement that K.O. actually file a False Claims Act lawsuit to
pursue a retaliation claim as the 2009 amendments to 31 U.S.C. §3730(h) made it clear
that protected activity includes efforts to stop False Claims Act violations, besides acts
in furtherance of a qui tam lawsuit. Investigating or complaining about fraud, including
through internal reporting, is a step in furtherance of uncovering fraud and is protected
by the False Claims Act.
Internal complaints, investigations, or inquiries that concern
false or fraudulent claims submitted to the government are protected activity under the
False Claims Act.
100.
K.O.’s activity is protected activity for purposes of the False Claims Act anti-
retaliation provision when K.O., acting through Ms. Frisone, notified Fannie Mae she
was concerned about possible fraud and false claims against the government. K.O.,
acting through Ms. Frisone, was not required to use any magic language or words such
as “illegal” or “unlawful” to place Fannie Mae on notice of the protected activity.
101.
K.O. is a contractor of Fannie Mae. Ms. Frisone, the owner of K.O. and an
employee of K.O., served as the managing broker of all Listing Supplements assigned
by Fannie Mae to K.O. As such, Ms. Frisone is also an agent of Fannie Mae under §
3730(h). The provisions of 31 U.S.C. § 3730(h) specifically provide coverage for
contractors or agents.
102.
As previously set forth in detail, K.O., acting through Ms. Frisone, reported to
numerous Fannie Mae employees that brokers were fraudulently obtaining vendor
identification numbers by using false records and false statements. In particular, Ms.
Frisone reported that at least one broker obtained a vendor identification number in
contravention of Fannie Mae polices through the use of a fake office address and
fraudulent business name. This is a report of fraudulent inducement of a contract which
led to false claims being paid. Ms. Frisone also engaged in protected activity by
reporting the fraudulent circumvention of Fannie Mae policies, the attempt to solicit
bribes, the attempts to steer contractual repair work to favored contractors, and the
apparent complicity of Fannie Mae employees in these schemes to circumvent Fannie
Mae rules and to defraud the company.
103.
When Ms. Frisone reported the fake office scheme, she reported this scheme
fraudulently allowed two brokers from the same office to obtain vendor identification
numbers and falsely and fraudulently submit claims for payment as if they operated two
different businesses. Because Fannie Mae is in conservatorship and funded by the
Treasury, the claims for payment resulting from this fraudulently induced vendor
relationship are false claims within the scope of the broad definition of “claims” in the
False Claims Act. Courts have repeatedly held False Claims Act liability attaches to all
payments made under a contract procured by fraud. See United States ex rel. Longhi v.
Lithium Power Tech., Inc., 575 F.3d 458, 467-68 (5th Cir. 2009). FCA liability can attach
even when the defendant does not submit a technically false claim for payment, but
when the claim for payment results from a contract procured on the basis of false
statements or fraud. Id. See also United States ex rel. Porter v. HCA Health Services
of Oklahoma, Inc., 2011 WL 4590791, *5 (N.D. Tex. 2011); United States ex rel. Long v.
GSD&M Idea City, LLC, 2013 WL 214590, *6 (N.D. Tex. 2013).
104.
When Ms. Frisone reported the request for a bribe made to her by Ms. Tompkins,
she was reporting activity that would have resulted in additional assignments to K.O. (or
another broker) because of fraud and that would have led to payments to K.O. (or
another broker) because of fraud if the demand for a bribe was accepted. This too
would be a false claim and is fraudulent activity, as Fannie Mae’s own Chief
Compliance Officer defines fraud.
105.
K.O, through Ms. Frisone, made these False Claims Act protected reports to
numerous Fannie Mae employees including Chris Cordina, Kelvin Zelaya, Linda
Tompkins, Eileen Conrad, Brandon Lawler and the Fannie Mae Compliance and Ethics
Hotline. Ms. Frisone’s reports began in September 2012 and continued through 2013.
All of these employees had the authority and ability to affect property assignments to
K.O. K.O. believes these employees caused the reduction and ultimate cessation of
property assignments to K.O. because of her reports of this fraudulent inducement of
vendor relationships and other fraudulent activity.
106.
After the ineffective attempt to terminate K.O., Ms. Frisone also reported to the
Fannie Mae Board of Directors that Fannie Mae had terminated K.O. 1 in retaliation for
her reports of fraudulent activity that included the fraudulent inducement of vendor
numbers through false statements and fake broker offices (which led to the false claims
submitted under that fraudulent scheme), Fannie Mae employee complicity in violating
1
As noted, because Ms. Frisone is not a lawyer, Ms. Frisone did not understand that Fannie Mae’s effort
to terminate her was not effective. Thus, Ms. Frisone operated under the mistaken belief that the MLA
with K.O. had been terminated for a period of time.
Fannie Mae rules and regulations, solicitation of bribes, and efforts to steer contract
repair work to favored contractors in violation of Fannie Mae rules and regulations.
107.
After K.O. and Ms. Frisone engaged in this protected activity and after numerous
Fannie Mae employees knew of the protected activity, Fannie Mae retaliated against
K.O. in a variety of ways. The retaliation began in September 2012 and continues to this
day.
108.
This retaliation began immediately after Ms. Frisone met with Mr. Cordina in
September 2012 and reported the fraudulent activity and fake offices that allowed a
broker to falsely submit claims to the government. The retaliation took the form of the
Dallas office’s refusal to give K.O. additional property assignments although K.O. was a
top performing broker in good standing. As Sales Manager, Mr. Cordina had the
authority to influence and impact the REO assignments to K.O.
109.
The retaliation included disparaging K.O. to the Irvine office when the Colorado
brokers were ostensibly transferred to the Irvine sales representatives.
110.
The retaliation continued as the Irvine office continued to phase K.O. out from
new property assignments. This resulted, in whole or in part, from the disparaging
comments made to the Irvine office by the Dallas office.
111.
The retaliation continued as Fannie Mae’s Vendor Operations department
refused to assign files to K.O. after property assignments were transferred to that
department because of the corruption in Fannie Mae’s California office. Once the
property assignments were to be made on a rotation schedule, K.O. should have been
placed in rotation to receive assignments. It was not.
112.
Fannie Mae retaliated against K.O. before June 6, 2013 by reassigning K.O.’s
property listings to other brokers despite the Listing Supplement having not expired and
the MLA between Fannie Mae and K.O. had not been terminated.
113.
Fannie Mae retaliated against K.O. by failing to timely approve property repair
requests for properties then assigned to K.O. This prevented K.O. from timely bringing
the properties to market and selling the properties. This prevented K.O. from receiving
the commissions that would compensate K.O. for the work it performed in assessing the
properties and rehabilitating the properties to get them ready to be listed and sold.
114.
Fannie Mae retaliated against K.O. with its ineffectual attempt to terminate the
MLA between K.O. and Fannie Mae.
115.
While Fannie Mae’s attempt was not effective (because the termination letter
terminated a non-existent MLA between Karen Frisone and Fannie Mae) and while
Fannie Mae eventually executed a new MLA with K.O., Fannie Mae continues to refuse
to give K.O. any property assignments to this day. Fannie Mae continues to retaliate
against K.O. on an ongoing basis each day it refuses to assign any properties to K.O.
116.
Fannie Mae retaliated against K.O. after June 6, 2013 by improperly reassigning
all Listing Supplements K.O. had in effect as of June 6, 2013 to other brokers despite
the Listing Supplements having not expired and the MLA had not properly been
terminated.
117.
Fannie Mae retaliated against K.O. by failing and refusing to pay K.O. a
management fee for the property listings it improperly removed from K.O.
118.
Fannie Mae retaliated against K.O. by suing K.O. the day after Fannie Mae
received a letter from K.O.’s counsel advising Fannie Mae that K.O. had legal claims
against it under the False Claims Act and requesting Fannie Mae preserve all evidence
relating to those claims.
119.
If Fannie Mae attempts to terminate the MLA currently in effect between K.O. and
Fannie Mae, that termination will be an additional act of retaliation.
120.
K.O. has been damaged by Fannie Mae’s retaliation. K.O. seeks to recover all
relief available to her under 31 U.S.C. § 3730(h), including reinstatement, monetary
damages, pre-judgment and post-judgment interest, reasonable and necessary
attorney’s fees, expenses and costs.
Breach of Contract
121.
restated herein.
122.
A valid contract exists between K.O. and Fannie Mae. The current valid contract
is the July 11, 2013 MLA. However, prior to the July 11, 2013 MLA, the relationship
between K.O. and Fannie Mae was governed by the May 1, 2011 MLA. The MLA
incorporated Fannie Mae’s REO Sales Guide into the MLA. (MLA, ¶ 4(A)). K.O.’s
breach of contract claim relates to the May 1, 2011 MLA (Exhibit 3).
123.
K.O. is a proper party to sue for breach of the May 1, 2011 MLA.
124.
K.O., as a Fannie Mae broker, had contractual duties to perform each time K.O.
received a Listing Supplement from Fannie Mae. Those duties including completing
property occupancy checks, issuing brokerage price opinions, and certain property
management and various repair and maintenance services, all as set forth in the REO
Sales Guide. (Ex. 3, MLA ¶ 4(A)). Per the MLA, time is of the essence and the broker
must perform all services promptly. (Ex. 3, MLA ¶ 4(G)(2)). Per Fannie Mae’s REO
Sales Guide, which is incorporated into and part of the MLA, Fannie Mae endeavors to
review and approve repairs within one to five days of receiving a broker’s repair bid
package submission.
125.
As a party to this contract, Fannie Mae had a duty to comply with the terms of the
contract.
126.
In the Spring of 2013, Fannie Mae assigned several properties to K.O. K.O.
performed its contractual duties by inspecting the properties for occupancy and
determining the reasonable repairs that would be required to bring the properties to a
satisfactory condition for listing.
127.
K.O. performed these inspections, prepared repair scopes, and supervised the
contractors’ repairs. K.O. regularly visited and inspected the properties assigned to it as
required. These actions required significant investments of time by K.O.’s employees.
Under the MLA, K.O. gets paid for this type of time investment once the property is sold
and K.O. receives its sales commission.
128.
In March and April 2013, K.O. submitted numerous repair approval requests to
Fannie Mae for the properties still assigned to K.O. Fannie Mae unreasonably refused
to respond to the repair requests. K.O. submitted additional requests to have the
repairs approved. For many properties, K.O. had to submit as many as four requests
over a six week period of time to approve the property repairs. Fannie Mae refused to
respond to these requests despite its contractual commitment to approve repair
requests within one to five days of receipt from the broker.
129.
Because Fannie Mae would not approve the repair requests, K.O. could not
finalize the property repairs and then list and sell the properties. This prevented K.O.
from earning the sales commission on the property listing that would compensate K.O.
for the work K.O. put into rehabilitating the properties.
130.
Fannie Mae materially breached its duties and obligations under the MLA to
timely respond to and approve K.O.’s properly submitted request for repairs.
131.
When this was occurring, , Fannie Mae had effectively terminated K.O. in
retaliation for K.O.’s protected activity.
Fannie Mae knew it would soon formally
terminate K.O. (as evidenced by its failure to send K.O. any vendor newsletters after
April 22, 2013) and wanted to prevent K.O from receiving a sales commission on these
properties. Because Fannie Mae had not yet formally terminated K.O. and because the
Listing Supplements had not expired, Fannie Mae could not lawfully avoid paying K.O. a
sales commission if the properties were sold. So, Fannie Mae did the only thing it could
to prevent K.O. from earning a commission, which was to refuse to approve the properly
submitted repair requests and to prevent the properties from being able to go to market.
132.
Fannie Mae’s material breach of its obligations under the MLA and incorporated
REO Sales Guide caused K.O. damage. This material breach prevented K.O. from
earning a sales commission because it prevented K.O. from listing and selling the
properties before Fannie Mae wrongfully removed the properties from K.O. K.O. was
damaged by this material breach. K.O. employees expended significant amounts of
time in evaluating and rehabilitating the properties without the opportunity to be
compensated for this work.
133.
K.O. seeks to recover the damages it has suffered because of Fannie Mae’s
material breach of contract, including its reasonable and necessary attorney’s fees
under Tex. Civ. Prac. & Rem. Code § 38.001 et. seq.
Quantum Meriut
134.
restated herein.
135.
K.O. asserts a claim for quantum meriut. Recovery under quantum meriut is
permitted despite the existence of an express contract that covers the subject matter of
the claim when a plaintiff has partially performed an express contract, but because of
the defendant’s breach, the plaintiff is prevented from completing the contract. Truly v.
Austin, 744 S.W.2d 934, 936 (Tex. 1988). See also Balfour Beatty Rail, Inc. v. Kansas
City Southern Railway Co., 2012 WL 3100833, *9 (N.D. Tex. 2012). This scenario
applies here.
136.
K.O. provided valuable services to Fannie Mae regarding the properties assigned
to K.O. during the spring of 2013. K.O. regularly inspected the properties assigned to it,
determined the repairs that were necessary to bring the properties to an appropriate
listing condition, and got the repairs completed so that K.O. could list the properties for
sale. However, Fannie Mae breached the contract by refusing to timely approve repair
requests and to allow K.O. to finalize these properties for listing and ultimate sale. This
breach prohibited K.O. from earning a sales commission by listing and selling the
properties.
137.
Fannie Mae accepted these services from K.O. Fannie Mae had reasonable
notice that K.O. expected to be compensated for the services provided to Fannie Mae
by K.O.
138.
Fannie Mae failed and refused to compensate K.O. for the services K.O.
provided to Fannie Mae.
139.
K.O. seeks to recover the damages suffered because of Fannie Mae’s refusal to
compensate K.O. for the services provided to it.
Jury Requested
140.
K.O. seeks a jury trial on the claims asserted in this lawsuit.
Prayer
141.
Wherefore, Defendant K.O. Realty, Inc. requests this Court deny Fannie Mae’s
request for declaratory judgment, award K.O. the declaratory judgment sought in the
counterclaim, find for K.O. on the additional claims asserted, award K.O. damages as
requested and award such other and further relief to which K.O. is justly entitled.
Respectfully submitted,
By:
/s/ Karen K. Fitzgerald
Karen K. Fitzgerald
State Bar No. 11656750
Karen@klbf.com
KLEIMAN LAWRENCE BASKIND FITZGERALD LLP
8350 N. Central Expressway, Suite 650
Dallas, Texas 75206
Telephone: (214) 265-7400
Facsimile: (214) 265-7411
CERTIFICATE OF SERVICE
This certifies that on January 28, 2014, I electronically transmitted the foregoing
document to the Clerk of the Court using the ECF system, which will transmit a Notice
of Electronic Filing to the following counsel for Plaintiff and Defendant, ECF Registrants:
Kenneth Carroll
Angelina LaPenotiere
Carrington Coleman Sloman & Blumenthal
901 Main Street, Suite 5500
Dallas TX 75202
/s/Karen K. Fitzgerald
Exhibit 1
Supplier
I Fannie Mae
CaseRegistration
3:13-cv-02781-L
Document 25 Filed 01/28/14
Page
1of1
Page 43 of 114 PageID
292
Supplier Registration
Fannie Mae maintains an internal database of suppliers that is used for a variety of purposes, including identifying potential suppliers
and registering new suppliers. All suppliers interested in doing business with Fannie Mae must follow the registration process below
using Microsoft Internet Explorer (Windows version 6.0 with SP2 or higher). Please note that servicers reporting HERA-related
information should use the "All other suppliers" link in steps 2 or 3 below.
Step 1: Meet qualifications
Confirm that your company provides goods or services that Fannie Mae purchases (PDF). You will be required to indicate the
applicable commodities offered by your company within the registration form. Commodities may change over time.
Meet minimum supplier qualifications.
Your company must have been in business for at least one year, and be able to demonstrate revenue for this period (you may
not obtain more than 70 percent of your revenue from Fannie Mae).
Your company must have a professional place of business outside of Fannie Mae, and be able to provide that business
address to Fannie Mae.
Your company must be able to provide a completed W-9 form to Fannie Mae.
Your company must be able to provide a certificate of insurance evidencing the insurance coverage appropriate for the level
and type of business to be conducted with Fannie Mae.
Your company must have and maintain a minimum of three W-2 employees.
Qualify as a diverse supplier, as appropriate.
• See Meeting Fannie Mae's Diversity Requirements.
Step 2: Gather the required registration data
Dur data requests vary by supplier type. Please select the link below that best describes your supplier type to determine what data
we will request of you and that you need to have on hand to register.
REO Real Estate Brokers required registration data.
REO Appraiser reqtiired registration data.
REO Repair Contractors required registration data.
A.ttomeys (including law firms for the Retained Attorney Network: RAN) required registration data.
All other suppliers (also for use by servicers reporting HERA-related infonnation).
Step 3: Complete the registration fonn
Important note: You must complete the entire registration form in one session. An extended period of inactivity can time out the
website. The registration system will not allow you to make interim saves to your input prior to submission.
If you fail to complete the registration form prope~y. or fail to upload requested documents, your registration will be rejected.
Please select the link below that best describes your supplier type for online registration.
REO Real Estate Brokers registration.
REO Appraisers registration.
REO Repair Contractors registration.
Attorneys (including law firms for the Retained Attorney Network: RAN) registration.
All other suppliers (also for use by servicers reporting HERA-related infonnation).
Please be sure to review your input for accuracy and completeness prior to selecting the Submit button at the bottom of the
registration form. Once you have submitted your registration form, you will receive an e~mail within one business day confirming
the receipt of your registration. Please submit only one registration form.
Registration and/or meeting our minimum supplier qualifications does not guarantee that your company will be selected
to do business with Fannie Mae.
If you require technical assistance with the registration process please contact us.
http://www.fanniemae.com/portal/about-us/suppliers/supplier-registration.html
6/16/2013
Exhibit 2
·-
:::s -
II-
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eaistering as a
roker or
gent
•!• Registering in ProcureOne enables Fannie Mae to contact you when there are relevant
sourcing events in your area. However, it is necessary for you to register within
ProcureOne even if you have an established relationship with Fannie Mae.
•!• There are two steps to registering:
·:· Create account
·:· Log into account and provide additional supplier information
•!• Brokers and Real Estate Agents each have their own Supplier Type. Brokers and Real
Estate Agents should each register under the appropriate type, using their own
information and maintaining their own record.
•!• Before registering, Real Estate Agents need to know their Broker license number
·:· On the Credentials tab of the profile, Real Estate Agents and Broker will have to input
the BROKER License ID# (license number). This will associate Real Estate Agents
to a Broker, and Brokers with their Real Estate Agents within the system.
egistering with
@
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Navigate in you r browser to .:". .:=~:i::_::..:_i::::....:_::::._::_=.:..:.-=-c::-.:..;;~,,,..:..=.:..:...
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and Real Estate Professionals,
alf in one nc;it box.
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Select "Agent" if you are a real
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the office managing broker
:~· ,:~-""'
@Please do not forget your password
for the Contact Information section
as this will be your login password.
e
Once you have completed the form,
click the Registration request button
at the bottom right of the screen.
.
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"Once you submit your registration request, you will see the following.
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You should receive an email telling you that your registration request was
successfully submitted. If you receive an email stating that the request was
rejected, please contact
and they will assist
you.
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Registrations are accepted into the
system if there are no duplicate
suppliers already registered. In this
case, the use of the word· accepted
means that your profile has been
established in our system, but does
not imply that your company has
been accepted or approved to do
business with Fannie Mae.
If your registration was accepted into
the system, you may now login to the
ProcureOne system. Go to
...... .... _..____
- ........... ........... and
enter your email address as your
login id and enter your password from
the registration in the password field
then click the Login Button.
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@On the following page, you will be asked to Accept Terms and Conditions.
Click on the "I accept terms and conditions" checkbox and then click the
Validate Button.
rciu hav~ ~o accept terms and c.u-~:.:on.s in crdtr to cer.\;fl(,11!.
Ug;•t: 1,1.s.e cf the FrocureCr.e .?;;?lic...,hon is nitiect to the 9en1;r"! terms "-mi ccnd.t\.cns :.-cl f~h in fi!Miemae.ecm Le';lal
D!:r..\c~l1re. u~e "nd ptcttcho11 b·1 r.,~,ni.e M"e cf the e¢~fide11t;a1 infcona!icri you ~bmit to throvoh :roccre01'!-e are subject !o ~
ror.fi4ent~err.1 proYts.ion-s ar'ld ether »mttcn a¢reemt:nt5 fn p!l!ce bcl1\eer. ih-e '(WI' ccmp~r:y and fanr.ie H~e, a-; ap-pl1ublt:.
Non·~<!!Mi... Mu
Plea~ r,~e fr~~ th~ PtcOJreCne ap~i.i:atrcn "!Id refated d;,ta !tc hcst.e-= by a th:rd ~rt'; $erv~s ~roYi~er: ai::f..:u,h Fanr.Je M~~ tla!i
:irov•ded JllJ eommereia:!y re~:se-n~ble eifor._s to V<'1!1dMe t.-..e:. inferm.~1ie-n :secu~ cer;tre!s, rcsilier,cy, i'lr.d t~t: opera:~r:s e( the third P.!lrty
servi-:.<!. prc·•ider in ccM~ction with f'(OCuti:OM, and cc--r.si~ert v..ith tl"e fanr.iem.ie.cem tennr; ar,d c.cnd;t1or.$, FAUNIE MAE M,!XES NO
R£F~SWTAiICfiS OF;: WAi\RJ:.tmes Of ;.NY Krno WiiATSCfVEi\. FOR, ;.:m DlSQ.AiHS ;.Jrr EXFRESS OR. IMPUfD WAR;v.JrrtfS
REL.!.TEO TO SUC."i ThlR;O PARTY WEB SITE Cit FOR ;,J(f ?qQDlJCTS OP. SERV1CES MENTIONED Ott Cffi:R.t:O IN 1Hl=l.D ?,!.~TY WES
SHES WCLUDlNG, WITHOUT UHti!\TIOfl, WM~RANTJES Cf HE::tCHAHTA.5{UiY; SUtTA91UTY, NCN·!NFP.ltiGEMWT, O;\. FITNESS roR
;.NY PARTICl.iU~ PU;t~SE.
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You are now logged into the
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To update your supplier profile,
click on Company Info and then
My Company Information.
Action Plans list
Performance Evaluations
Action Items
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You're done!
Now, if Fannie Mae is sourcing new real estate agents in your
area, we'll invite you to apply and provide you a deadline for
supplying your application to us.
by Fannie Mae
Exhibit 3
Case 3:13-cv-02781-L Document 1-1 Filed 07/17/13
Page 3 of 33 PagelD 8
Contract Number: _ _ _ _ _ __
FANNIE MAE MASTER LISTING AGREEMENT
Cover Page
This Fannie Mae Master Listing Agreement (the "Agreement"} is entered into by and between Fannie Mae, a federally
chartered corporation ("Fannie Mae" or "Seller"), and the party identified below as "Brokerage Firm" ("Brokerage Firm"
or "Broker"). Capitalized terms that are used in this Agreement, but not defined contextually, will have the meanings
ascribed to them in Section 25 {Definitions}.
Effective Date of Agreement: May 1, 2011
TRAX/VENDORID:TR137415X
Brokerage Firm lnfonnation
K.O. Realty, Inc dba K.O. Real Estate
Name of Individual signing on behalf of Entity: Karen 0. Frisone
Name of t:ntJty:
Brokerage Firm is a (check one}:
Title:
Managing Broker - Owner
Address:
0035 Wadsworth Pkwy S1E 1000 Westrl'J/l~tor. co 80021
0 Sole Proprietorship
Iii Corporation
0 Limited Liability Company
Telephone: 303-422-3888
D General Partnership
Fax:
303-422-4544
0
Email:
karenfrisone@korealestate.com
0
Brokerage Finn should receive legal notices under this Agreement
(check one):
Bl Yes 0 No
Limited Partnership
Other (Descnbe_ _ _ _ _ _ _ _ _ _ _ ____,
State in which Brokerage Firm's Business Entity was formed:
C,c. !or~tA.o
Brokerage Firm's Federal Tax ID Number:
f; 1-1 i...f '7 53 11
Assigned Day-to-Day Contact Information (ONLY If different from
Individual signing on behalf of Brokerage Finn)
Office Managing Broker's Information (ONLY If different from lndi·
vldual signing on behalf of Brokerage Firm)
Name:
Ttt/o:
Namo:
Title:
Address:
Address:
Telephone:
Telephone:
Fax:
Fax:
Emal/:
Email:
Assigned Contact should receive legal notices under this Agreement
{check one): D Yes II No
Office Managing Broker should receive legal notices under this Agreement (check one): 0 Yes Ii! No
Broker of Record Information (ONLY If different from Individual
signing on behalf of Brokerage Finn)
Fannie Mae's Point of Contact:
Name:
Title:
Name:
Address:
Addross:
Vendor Desk
Title:
Telephone:
Telephone:
13150 Worldga!e Drive
5H-6W/01 (082)
Herndon, VA 20170
972-658-7860
Fax:
Fax:
240-699-4021
Email:
Email:
Aoreement Notifications@lfanniemac.com
Broker of Record should receive legal notices under this Agreement
(check one): 0 Yes II No
(SIGNATURE PAGE FOLLOWS]
-2
Confidential
Case 3:13-cv-02781-L Document 25 Filed 01/28/14 Page 57 of 114 PageID 306
Case 3:13-cv-02781-L Document 1-1 Filed 07/17/13 Page 4 of 33 PagelD 9
Signature Page
By the signatures of their duly authorized representatives below, both parties acknowledge the value and sufficiency of
the consideration for entering into this Agreement and agree to be bound by its terms.
FANNIE MAE
3900 Wisconsin Avenue, N.W.
c
20016-2899
gnatory: Tiffany Davis-Fletcher
Title: Vice
Date:
r
nt. REO Sales
April 21. 2011
BROKERAGE FIRM:K.O. Realty, Inc. dba K.O. Real Estate
-3
Confidential
Case3:13-cv-02781-L
3:13-cv-02781-L Document
Document 25
1-1 Filed
Filed 01/28/14
07/17/13
Case
Page 558ofof33114
PagelD
10 307
PageID
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fhi~AQEet?m,~n}iW~m~r¢d W:ito bY\f?J19:.:be.me.:i~rr:Bre>~r ~n.d F:ianni~ M?.e.;- .~§. ~¢!i~r.. '.of~aqh qfthe.·:Pr.9pe.rt!es lgemtlifie~..
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ihi$ A$'~ee.h'i$.i'ifis ~ff~qt\v~· ·as oft!]e. <rate inoicated as:tfi~ "Effective Date" ofrttie Gov.er l?age.of this A~reement or,
\n ~h~ ev~nt'~t!~t·.h.9
as '()(ttie latest
(ttfe "Effective
. .Ci.~~~
. \$ sb lrtdihate~i
.
.. date bn:r:rj'an:y·.. td:execute~this A!freem~ht
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Se.ctron :7 (T~r.mihc.lt\l:iri).
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PropertyAsslgamentt ~nd, pqiJe.ctlv~ly .. tn~''RtopertyAssighmentsri))hr.htjgh F9t'in,~e, M~e~:s·M~¢:t
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11
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Whi<:;n suc;h':$et:Vi:c.?~s io~l\.ld.e, b.!i!t?.rEt nqt1imit~ctJ9, th~ c:qrnp[e!Jo.n qf PTPPeflY or;:.<;qpa.J'.u~y ol}e.ql5'~.
th~ . t!?s.uc:mge o( prq~er pric(f <::1p:l11ton,s.,.pnd ~e.rtain prppertY mari9g~medt ;:i.n:ct r.!3p~ir s.eP.ti~es., ~s
d@$crlb..eo fn. the 8$9 .sa(~:s. ·$.~H~f~. A .GPPY.
'th~ Ri:;O' &E!J~s $\.Ii~~· is 19o?~e~f ~t
httpsdlww.,,\1,,efanniemae;comisffnsthpi:eofoctffreosalesgd.pdf (qr. ·~:yg¢¢~.s9J filt f~plf:i,q~m~iit .• sjte
rn~d~ e!y.~l!~~lei tQ *O~eifJ)Y E,a,nnl~ Ma.e<;lftEiitM ~ffMtlv~IJ'(J~¢~,. ti'.!~ RE(~ :$f;llEi$.·'Gti.i.~fei~ ifi¢pr-
of
p9rntei.~tbereinpyJf)i$.c refereinqe~
B·. Rr0'1iei'tf Li$tir\9$•
F~h'tii~ MM ·m~y:cl.ffi:WtoUsf:'Prof)'~rti~:s:with Brbkerft.W sale, ftomtirhetotlrn;e; :inits sole:'tlls'¢re~
'i~t*J~tlJA~Z~f~~rt'=~~i!:1~~:~~;~.te:::.t~·rH ~~i=~~~~h~
iii!~~wite'3~i:~k~~~~!'~'~rattl~ii1~~~;'.
Th~, t}¢iing::-S.up!).l.ements.h~l.Lo§ . effe¢t1Ve
by Bro!xer. ·
·
frcnn ~D:9 ~fter th$· 9.~~~ (Jrr Whiolt it h$.$ p~·en aec:~Pt~d
-4
.Col}fid(!nti~l
CaseCase
3:13-cv-02781-L
Document
1-1 Filed
Page 6Page
of 33 59PagelD
3:13-cv-02781-L
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Filed 01/28/14
of 11411PageID 308
Each 1iistir:ig<S1Jpptement-z.that: nas\ been·accep,t~d PM l:)rok~ri$·. ir'ltjQ"rp~'t€1l~dti~t£.?in .witm~;.'r,e.f~f;. ·
en~~., E~~tm·' Pro~erty i~S:n\ifl~g:'io· ~\;ij:!tt·a •. 4\sti!'l9. s.JP.pf~#l~h~\~·i;(~f~f:fijitt6.:·frt:if$ifr ~~:·a:·tPropeffi!
,Elsfifi!(i;''
.
..
.
.
.
~i~:r.-~f~i~~)~i:-~6u1~~·~1.$it1~c:~~~~·Jf~~~fu~~CTh~:·.~~~fu~~~~~k~!~{~~:i~di~~~i~:!:
s~pplemenfaloo_c,ut:netitS.
F>:aek~gi:t
·,·'.
.
·
'.
C; . .oe1~9'atibn'of·,Authority'.from are>Ret'f9· ·.Li$~iog ·Aseht.§.'t~. •. A¢:ceiit:~.topemrA'$,$:19:hnreni~
ar,d.Prol?etty Li~ti'riQs e>n B.eti~tfqff3toRet, · ·· · · ··· · · ·
· ····· · ·· · . ·. · · · ·. · ·
Br9.Ker..m~y· ielentjfy ·1i1$tlrt9,·AMl'.lts• who ~t~ w,qd<ing 90 Brokei:'.$;. ~:ehaW~o. n~gotii;it~·~nq• ~rraog~
.$1Jt~~~j, .~~~;·~~~~~fti~9~~WQ?r:¥¢.r~_~r~~~l~~~.· ~~¥h~ ~~il~~{~j . ~i~~.~····~~~Q~~:6;
1
FMiJJ~M~e.:, S~9,ker. cl'ckn9Wl¢qge~' ~.h:d, ag.l'e~s th!:it(;)U SQGI'\ Li$t!ng. Ag~J'it~ c:jre:C1\;lthor~ed to: (}}
cipL~n ·~~··· ~.~11~,11·w1t~ t('!sp;#ct to ;th~ ~ci::~p·t~ri9~ qt Prqp.~ify /\s,~i~pment§··Slr"l~f PropeirtY- L\sti119~.
u:o9~ts:µ1:>:se.¢tiofls.JA> ancl {!.~} a~9y,~; ~nd {2') ~¢t<;>.n it.s peh~lfvvlt.h re$R~¢t t¢ t.he ml:ln,f;l9e,rnent9f
~lji::~ ~~slsrit11enti:; .~t\d. ·us~.1n~$;th'~qygfi J~e :§!;! l~l 'pro.~es~: e.c;1_ch. Pi'.9f¥e.rtY A~.s.i~nrri¢nt:~n~Fr9i:i,~rty
Li~ti.n9' ac.¢~p1Ei<;l bY $ny sacli LJs~rri·g· ,1\9.~n~ sh~dl p£3 deemed tc> hciVe b¢.en ·a¢.cept~d by, atoK~r
heteunt!et
f\ll/s1,1cn UstliJ9 f\g~~ts· sh1=10. h~ve el~ptrofiic ;;iG.~ess thr0.qgh F~nni¢ f\11C1.e'.s Prqperty Assignment
§Ys.~ern tq ~II. r~cor<;ls. p,er.t~in'Jf19 to .tt:ie Property Assig.nmen~ and Properfy IJstiligs tttat havi;:
be,enta.!PAAPt'?.i:i b,y·~ Li~tingAgent or1 Bsqkers.tieihalf. Acc.esst<:l•s9ch r(;lcqrds.m.ay'not b~ c:wali'f;\Ple:t9.~fP~~rth,r9ughJhe Prppel'tyA~sig11m~n.t Sy$tem dl!etqsystem constraint$ . Accordingly, lt
i~ 1:3rok~r$ ~ole: (,espof\sibjfity 'o en~u.r.e,lnatBroker i~ fl!llY informed by It.ts Lis~ing. Ager.tts,pfall of
the.Ir apti:vlt!~~. rel<;i~Vla ip .t~e. Fannie M.e:te' ·ace<>µnt and t9 .<;nst.ffe. that the 'effqrts Qf f3rok~r arid
eaGb·9J i,t~, Lis~\l)g Agemt~ ere. ~t,Jlly 99on:l.in?tec:J.
o. Exclusiv'fty,
Fanni~ Ma:e emplC)ys Broker as its exclusive: ;;ig,$nt for th.e sale bf tne Properti~s identified· fnthe
Listing Supplement$, sui:>ject tcdhe r~ht ofreservation of any prior broker.
·
e. t,,l~tii'.tg P~riot:t
'$toker haslhe £lgnt to se.11 a Prqp9rty dur:ing tne listing period set forth ih the appliCc;!ble Listing
Suppl\:!me11tpr any s4_b5eq1;Je11t e.xfe11~ion thereof; unless the Listing Supplement or th~ A.greem~mtJs·terminated ei:arly pursu~ot to S.~ction 7 (TermJnatiqn; Expirc:ition).
Th:e initial i.istin:g: period.set forth in a U~tlng Suppietnent tnc;iy be: extended by Fannie Mae in its
sole dfscretton tor any period of time'
F~
Price.
Ef,l,ch PtC>p¢.fty Will l:l~ offered fqr$$1~·?tthe pric~ li.~ted in th¢·appli¢able·Lisfing Sl,lpp!ement, pn
teitn$ ancl.cpndit19ns1hatare s~tisfadory to Fannie Ma~.
·
G~ P~d<:mn~nce.
(1)
Btol<ert:Responsibilities· Concerning Property
faHan. of. B,roker's: tespq'd${blljfi!;Js unQer· the
Listings~
In furtherance of; and not in limi-
RIEQ $ales .Gl!ic:fe, B'l'oker cqyep.$nt~ ·~no
~9r~e~to pe,norrn,th~ ·seiVl~~in Mcor~~n¢e With the fon9wlng r~·1qµirements~
(ci). Listing· the Btooert~t; Elrok~r agr~es t9:u~ei c!9Ei;~i!!~l$il:c,;,e. t<;><f!\'.lq <:li b\J.y~r f()r-~~Ph ~tqp
~~Y\. it1.9JYdlng: (i} 1l~tirlt1 P.r9tlett,y ~i'~h a11. o(h.e.r .br~~¢f:~ gri::fJ qosp.to.~~r~~~ p.a:S,i~((m q~J.ng
the· mo~t ~P.'p(opdat~: ml!lt!pl~ lis~iffg s~Mce av1:1if$l;?I$ ·~(l;'li3:to~~'r'.(geter(Qi,r\'$d Will). ~f¢r
~h~ to' the:· RI;® S~1e·s'· GUide)) ·and (Iii). cqop:~rc\tihg Willi olli~tpto~E?rS,, Ft;lrl,ni¢i M?$: e~.,
pre$sly au\ftorlzes BrQket to sign a multiple listing &gre~ment: Fatirire. NI~~ $h,alf nt>tbe
.obliggte{f for ;any
adoitl~iial
~greements. Brok~r $.hall
(PJ .Representations
commissions' $rising gut of
cq~ijr¢kr;:r
'()f
be $ql~ly responsible for $t.1ch qplig~tii;m~.
to Third Parties .. Bro~er
~gfe¢s
not'to
ma.ke
·
a@
rtiis(~pfoseht~tiO:ns O:r ofoi$.~ibhs (lon®rHing a Pr<:'.ip.erfy oHts GQn~erit$.
~·5
Confidential
multiple listihg
or~t
·
or writ1¢1i
Case3:13-cv-02781-L
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07/17/13 Page
of of
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~~~~~~'~iiit:i~~!~l§iii~Fi
Jt ..rn.Jt , :. :.Y 'PPP.l99PI@,;- .aw: to h~IQ·;~af0e$.lcm111m~y;; .$rqkeE '$.lial! !'f~P.Q~1tdbei.e.~me.$t
-~~:~1Jb.;~,rt:~:;~~i;:·~~\~~~q~~Qrr::~i'ii~1~. ~~1~~:r!I:.~: M9.$l$. pJn~cno.o$.'a.$ i~
!!~~i1:~1if:~rt~~i$t:Ii~:i~l!~tti~
Puf'.c!l~!?!;'
Adqendurn, an ''\Qffer'1) •. Broker: shall inform Fannie .Mae of'an. 0ffer . witlliri
2
0
J~~rjf:fi;~ ~u.~~::~a~~<l~!~t~ ~~~~P~~~;,U! r~~~.PwfJ~~i~~~re:rn!1:·6~~:;Purc.h.a~.~Agre¢ro~nt·J~rPu.rcH~$e:·Aqq¢nQl:l,ttrQnF~nnre JYlg~~s.l?ehglf.
t~))tleaith.and S'at~tv, Jfrok¢f ~gree.~
··
·
to .t~ke prµdenbaGtion In an :e.rnerg.ency· .to prciteqt
;eg9h P,tpReftY afl'P ,r1citify. §ei(i;lrlmm~qlc;if~JY ·pfitw e.rnergrn~y,. :i~.ro,k~r a9fe:e.~ t.9 fc;i~e1;:if1
'?.PP(9F/fiatl} Pt~pe.vtkms'~o:!Rl1$.!Jf~·Jh~ 11.~al,tb. an!;i §,~f~fy'.C)f ~rok~n Br:9k~r-Pe~s9nn¢J a.nd
Ven~~rs. atoker m1.1?.t YWr J@?.SQD~bl~:;J!:!:~grol".nL!n. ~~aiih~l·wlJh··~DY l~§.\.l~§' ft:r~t<giv~;
G~8~~
fpr g?.n_c,~rns ln,¢.lygJi:lg ri~~.s .re.f?t~o;' tQ Ph.V:sI~r c;l~roagej9 t!1e; R'rqp13.rly, primi11ci.I
a.n.q;··envirqnrne,11\al .<::9.ncem~; .incilµ,gl:119Alfscc)t9ratiqp a,o.Q..Pali~ro9µ,~,•;§l:il'.Jst~1J.~es;
$r9ker 111µstnot en(e:r:-the·Prop~rj.y iferci~er ~~i!eves·-th~td9ing ::;g.v/.lil Pose•a ~ealt~ qr
~~fefy i'i$k.
·
a,~~yity
(i}Acces$. B.efo:re dostng Md fundJng.:.occurs; atoker:shail not ~llCiW'<il b!JY~r prpoteriti~I
oliyersit0occupy o.t·aece'ss·tlie. Prop~rtyfor putp:oses:of dccup:an·cy, r.epafring·ot aitering
'.fh~
P(ope,tty: ·- ,
.
.
.
.· .
.
.
.
(g)Recotds,. BroRerJman maintain accurate ah:a complete· re¢otds w\th respectto.' each
P.i0'perfy incitudirig ·any expehs~e's .paid ana in-cqme r(;oeived a<::cordirig to recqgolze!;I
·Cotrifuereial aocot..inti~g practices·; AH sµclt recotcfs shalLbe subje.ctto: atidit, as:prqvld~d
in section 2.1 (Ra.cord Retention; Audit Rlghts).betow.
·
(!J) Elwironmentat and Safety Hazards. If 6r<J.1:<.er is awa,re .or b~9.QITI§$: aw.are that a
PrCip~my is afte·ctecf'by ~n ,enyfronf'l1ental or: safety hazatd on the Property ore [)ec_omes
~ware· that tbe µse of such Property has b.~en !h .,YioJatl!:m otenvlronm$ntal orpupllc
health laWsj B.roRer shall ·immediately infqrrn F'i:lnnle: M<!e,
(2)
Tfme !Softhe Esseni;;e, Time. is"ofthe essehce;. AllServltes~shatl be performed-promptly,
rn . -a6c<ifrdan¢e with the sch'edute and seNioe tevet commitments ·set torth in the. RED
s~r$$· G.ui.d.~-
(p)
· · · ·. ·. · ·
· ··
· ·· · -·
·
·
;Qualifieations and Re~ovai off3roker PersonneLamf \:/endors;
f.a;nnJe M~~ r~$~rv&~s the
r!ghftPre:vi~wlhe qv~!i.fic.~tloo$ ~f anql t9 p~9.1Jl6.If/tb.~1;1s.e qf P?n;w:w ~o4.nrrn~; lo.clu~[ng
Brol<er personn¢f .i;lnd VeMor,s;Jo-,c.of:iJ'.l~.ctiqn w.ith:"th~, prQYisi<;Jn:qf S.ervic;.~s. he.r~.\.mq~r.
.Fanrtiedvlae resefyesthe:rr~~t t9 t~c..t;ul.t~ the. .imroe4i~t~. t~rnp.v~Ht9m tM:.F~nnfo M.s.E:! ~~7
·count··.of, petsons.and."firms·;.1ncludirig:.6roketPe.r.s:o.ntT¢Lan'd:V~nPQf$1.·.s!~i1e;c;;te.d . by.$.r,Q'.ker
t0: ·penorffi setvrces hereuitd.er-:•. Brokermay r.emo:v.er Btoket l?.ersorwtef 'and Vendors f(sm
the F~hhi~ Mae accounfotf its· .own' initiative in accorda'nce~·witnBrcikel"s policies and
~fq$~~lif$'5.;· ·Qot :sti'$il pfP:vitil.~:tp(€fmpf n~troe .to: Failii\e Mae: an:a· any Asset-Management
Prdviaef witfi\vhibh sfot<er IS .a.ss8el'ated .orany.':such acti6rL Broker-:stl'all prom~fly: pre-
vid~ ·~:;.irn~iifi~~··(~~,~~em'~n(~~ii$'~9J9.w t<i>. {;~fin!,~®~~,. trp~o :r.~glii~~~; .~rp~e.r s~~ll provlq~ to F~nr:ifg M~e. i;i• cppy of ·the. .c.gntta9(s \11~~ e~qtse,r. ~nt~r~ i.lito ·WI.th V~M9rs,' in ¢oft,.
nection with this Agteement ·
·
· ··
· ·
·
(4)
S.uptilemental. D.bctirrtents: PacRage, A Supplemental Documents Packa.9e Will :b~ .de11v.-.
er~~:t<i'8fok~r tn 66nnectiori''witfi tht$ Ag-re~meht ·Broker must Mrtiplywith the perform,,
"•6.
C9pfld~ntial
Case3:13-cv-02781-L
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-1~f~t~~~~i1[~~1i1l~~ili~
·and,other·$taoo~td$ and p:r.o_cedlit?$~~$foblish:~cl!~y F~mtl~·Mae:from·fifoe tti'firne:
U;S,. Reseorces; Broker rnust p·eiform ttie:.servlces;.. using reso:urce$·.(lncluditig; but not
.Jirfiife9 k>; etj\ji~\jierjt, '.facilitij;!sdfotl petsqhnel) physi¢ally tbcated Withil"(the· United"-States
:!.~~ %~t~~~Clo/~?i:~~t~t;i;WitfJi6 ·~·. territo:r.t ofthe IJ~!te<:rst~t~s..J(l ·'tt1~ territPfy wnere
.Quailty:bontrol Measures., Fannie: Mae res,erv.es the riglitto rnoniterand evaluate the pro"
·. tes~Hoh~l .ctiodudt··and ·p:eiform~otedf:'8r~~$~.·P~r$Qnn~l1 .• ioqJµ~ln$.:.~4.t·n.dii'in;lri~ct:~l'~; U~t~
ing Agents.. Broker.Personnel must patticip~te·in p:erJi:i:dii; stat.!Js• review and.;.i;tv.:cillfy. ~on'
trol'm~etintrs as' may' .betequested by· Failnie Ma~, ftom ·tim~'to, time~ Ihe'failare:ot 9ny
·BfokE!f:PetSqhri$1 to (a) obs~rve besfihdtistry ·praetices with respect-to his, or-Mr profes~
·~iP.!1?I:con(IJ)cf, Cb.l pef:fotm the :$eMoi;is in atlchrdance With thEiiterms· otthisAgteement;
df (~) p~dliiiMt~ f6·. P.~no~.ic'~taltis review$ 'an'd qµalify'. cor.)ttat nieetin~fs'UJltin· re<:t;uest'win
9on.~dJ1Jt~ fl:le b:asis JP:r tbe :termlr.r~ti9h l>fJtli¢ A9r¢em¢nt,'ofa.riy Prqp$rty A~$r9oment or
1
9
·=~4P,!~e;~t~h~~~.~t.%~~1~:~ref9 ·~~ ·~~~:i~a;~~i¥!.1 ~~~1~~Ji~?·~~~fij~~1ritw~e13n(!
Mae, aroker Is s9iely rE?~pon$il;>le fur tlie
Broker Personnel Ui'fder this Agreem~nt
profe~$f9nc.i.1 ppndl!pf aQcl p,erform~n.c;e qf'~ll
Pi:oviding. S.erviees In Association with an AMR.In theLevent tha.tBroker provides
0
Ser~
8
~~B~tt::~~·~:!}Jn~s:rJ~~t~~~+~i!~b~\~~~~ri ~~~~~~t::~~e~·e ~~~;,,~h~~c~~ml
A.!>\S.~1 'r•i'.fqnagementfirovic;ledrom ti{n~ .t9titoe; provi~ea.
~fotbetw.~en4ir;~9tl9n. prQyic:t~ci
howev$.f, Jn tn~ eve,bt of'~ ¢Q'.n-
to.· ~'roker ~Y th~ As.s~fM~n,pge.rii~.o( .Ptqyltj.~{qotj.Cl{i:e.p1i9n prpyi.ded to SrPker by Fannfo."Mae.. f:ltoker ~npllcgmply witht~e P.ireGtiqn prnvid~9 b.Y
Fahriie Ma et
·
.H; c.on~texance.
F~Ji:Oi.¢~ M~$ ~tjan ret,am ownership '.01\eacli and ;evefy f?.ft>p.e.rty: for which ~~r:\iic~.s' a;r~ prQYi~ed
.~$r~tif:ld.ef· ·until<tne Property is legally conveyed. to:.·,a thir<t ·. party·thro.ugfu.,Jhe .as~et !ili~pq:siUqn
p,ro¢~$s:-a~·s~rit,>ea'ifrtniS· Ag.re.emeht.i3taker·s~,alt noeac8ofre·any ownersMtror other intereslclh
J1hy'of th~· Frr'opetties as a coFiseqpence of~nterih~ irit!:rthis A9_tee:rne.nt
·
·.1·; N:Q ¢gfilmjtO,\!lnft~.A~~iglfQt i;;(~t Pt9p~rtJ~~·~·
.~~~i~~:J~!~~~he,6~~;.;,:sn§!l pe,ppn~Jr:µ~q 9~.-i~ ¢.C!ii1!1lltrn~f1t~y Far.nXe Ma~ tr; ~-s~i9P. '~r !.ist
.J, Notification ofcorpor:ate fivent$.
8.~P.~~r Wiii ptqyid.e ?t lea'?t thirty {'3(jyaays pri'Qr V,id~~n netieetb Fa·nnle Mae·plany of the·folloWil19
$9rt>.pra1~ elf~nf~,·ir (i} n~rn~, cti~o~e; (ii) cfi:aliQe· in address or otlier,cantact inf1:m:n~ti<:m·tor17,~p},.p~f
.tic;;~ •.9~neral. iii<iilihg. or. payment pu r;poses; (ii!} change fn Assigne,d Dciy~to,.D?.Y .· Con~$9t ·~~e.ntifi:ed
art' dq\/ef P.a~et(iv) chang'e iri bffit:e Maiia.9.iii9. Brdket· .identified~ o.n. Cover P'age;: (y.) chci,nge In
.. 7.
Conf\d~ntial
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07/17/13 Page
ofof
33114
PagelD
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s> <rommi\;siOn.s.:'alld. Fee:s.,,..
A,:; R~l~i.f $~·~~ ;c.f.t_a~ri:~h
t;~q.rit~,1\1.1;~,~~~r~~~it~ P~Y-.~tr9g~f,~;:.~9mtf#~~J~~r:'!J;l.ttFt~~~¢~t:·!~~~@:-Ptgpgff~ _
q~J!69·-~~~:~.~-}•fgffh
tn:e Pto-:eri·- ··s:so1a·to a tf ·: er on the:tei:ms
in lbe. t.istih - :su · -Jement if· durt · the listr ·:' f?:El:T :
·~:~4D~~~t~:~,¥J1~1~~,$~~~11rt;t~ . . ••f~:~~&t~~1~~~1w~ttm~1
P'l
~i~~i.ng §iJppleroentc.1-~:·:~he qg"'qg§~W9 t;irok~r §}'.{lit; F~1:3$ c;f).at9E?.P
maX1:ffic:1J$. m~Y .~e:qffS,§f;~g~lnst.':f3i:9.15-~f.~ ~#?.D!rm~s-$.iq\1i
· ·
f~.iinl!a M~!?f9r mark$tfhg
· · ·
·
·
c.o.rnmisslo:ps; tes~r,;oftset~.'f}UI be p:ai.~ tih\~ P.,~r Ptp!f~~y-':bap.($':fr9J!1Jh~ prqi:;~~9~9f-:tn~s;aL~ i;)t
·the'. Ptop~M;Y at s~ttl$fil$nt-: Ani ~u.ctt:fea. ~halL~epa~CI if~1t9. bnly:if: (f\>.::~ yCJlid·ana·~rit,o/rG!?~bte
glosin~f of tl.ie' :Sl;!I~ of tl'i~ Ptop~,liY .occurs_ i:i.n.o;tnJ? .~a.I~ ii>/ftm.d:e9: and<(,S) then:;ornmis$Jb.n ii~ r~:::fle'cted. on th¢H:U0.::.1: settteml!lntstateme.nffor:lhe.Prpper±y:
.·B~ Alternativtf Oispositio.n.Sate-s .channel.
·tf'Fanli'le:Mae·,eiectsto sen:a_ Ptopei:w.:mrougtr i:lrt Altem:f:ltiVe ~!S.PP:$iti~m·$.~ie.s: ¢.h.anneJ. ·tn.eJ,Jst:ihg supplement putstiant·to.:whichti}e: Prqp~·rty·was otiglnaliy listed Wlll/e\th.er b:~"te.t1TJio~tE?d ~l'ld
:a neWListing$Uppl.emer:tf l~sue:ci.:o.F tne.ex1$tfng. l,,i~ting ·$.i,lppl¢rnen,t:wlll. b¢';:jf(len~~d fq :refi~ot:the
changt:Hn cd.nn~faion• With th~'Alt~rnative O.lsp-Oslfion: $ale.· Wthe Pr.9PertY w!R pe: ~01~ oy .erqi\er
thro.utjh'.Audiont the Auction suppter:nentwtn ~ppfy.
·
Fahnie\Mae:agrees to p-ay Brokera cqmrt)issioti Jo th~ y_a$.~ gf.Al.lctlqn~; Qr- pq~li¢ gbt\ty, $a!e.s; or
.a mari~~;ementJe.e· in- ·.the' case· ofpqol sates,. a.s:;,sf3Hofth ih thee: ;:3ppli9.$9li~ (-i~tiMQ S1;1ppl?m~mtor
Auction: Supplement If~ dutlnQ the listlnS. penod1 tlte (?r()p.ert,Y Js sqlo t9 a. _b1,1y;~r o~ tM,e ter,m~
state.a :in tnis-A9reemeht:.or oh a:ny- otller: tern:is aq~ep~ett: in writin~ ~Y Fa:.nnJe, Ma.~~ Srt;>ker shall
iiotbe .entitled to a rommis.sion ·p,ursua.ntlo sobs.et;tiorr(A)~P.Qve,
·
Co~operating_ brokers··rnustbe qttere.9 a c9r:nmW-~fon c>r ma.11a.g~mentJee1.:asJbe .qa.s~-ma.Y;~e.
equal to or gr~atedban .tb:e @rtir.i.t1nt.spe~ifieq i~ the a.pplig9Al,~ Listing $µppl~m~rit :;is· tile
co-;,c;>f?etatfog pr.~kef. split Fees obaJ'9~d: t?y F;;inole M~e l~wmafk~tirig m?te,r~ts rna.Y 9e. of:t's¢t
as,.aW1st a'rokefs :ccimrnI$.$ion.
·.
Commfssions.'of'man·a~;¢ment1¢.e.s:, a~ the ~se~matbe;>i~ss ~ffsets·,. '#Ill be,p~id'!:i..n ~- p~r ~'top;~·
that is
ertx basis tram the' ptoceeds·:ofth~.S.~!~;:oHhe pr:operty:~tt~rJhe;s~t'? h~~J;lq$~Q',
i~ fvnpe..~
an.i:!
thEH:teed 'tecoreed,Ahy ·such fee:sh8fl)i~-p~id if at1d qql.Y:if; '.(A}Jfvalid agq enfQr~~~I~ cilo$il:lQ_Pf
th'e\sate: <.if: lne, Prop,erW;:09C,:~t~1 tli~,'saret~:J(j:n.ded a~.rfirt¢ ~~edJ$ i:e:¢P.r9~0.; ~na. >{.6.} tri.~ c;ornQ1i~f
sieii"ls:: reffected on ttrei:':HU,0.,1 settlements:taternent. :pr in the O~$~: ot?I p,q:o(;s_~le<EJ Nl~i?~etJ:'$.et:'
tt~menrstatement~_fdrth'e; Property~
··
.g~ :~tP:if i.~i_(in~,;~f '<i?-l:!-i:l§ra.1~ppli¢afii.lit¥.;
.~~:;~~~~~li~~=~a~;rl~~~~,:::~~~;t.~E~~~~~j~~@~i~l~~~~t1~ni~m?Wj#~~~1~;f~~~
0),1.JJ\tP:I~ 1.l~tl\J9
c;99p¢q~.~lYE.!: 11s~1n:g ~gn~~rp.~nJ. 9f pJ~~f:'NI~~:; Tti~: ne,t:c;ornm1~sr0ry ;(fue· a.roker
!jff
!5-f!P.JI P.E? ~~\~(IJ\il1~4:Mcor9If!s:t9:~ffY'<=lP.P.l!A~~J~ hM ci!f tM' toca!'MuJUi?t¢ tistin~:'S>ewlee~: Real Es'fate
8oard1 ..other·sfmilar
. ' .·.···:.·,:·
,., ·.·. ·.· . ,••, • . . .locafageriiy,.6f:by
... •,, . "·· ... l()dal
...· cu$tom
•' ·:·· .
··~·
<:·~····
~-.-
Qnc:IE!r nq ~kc.urn~tan¢es ·shall. 'BrQ~~r be(~nUtl~tl to ¢0Uet:ta-. referrarfee or other- remuneration of
any 'kin~ frQnJ ·ar\y trifr8 'p~ftY; fr{¢itudlhg 1 ~u~. ~di limit~d:to, Si;i'bctihtractors;'ahd Vendors, ot'to re;.
-'.8:
Confi(ie,ntial
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6~e-~.·r.r~~n~·1·~e.~:· ··r9~i"i$r~:~er:n~;r~t~tibt:1 !D.fan¥"1{iotfith~a:~y/Fatrnh~ffv'fae:,:f!mp1ay.e·e·~0.t1e0nttact<fryin
.. Or.le.$ QF1.w1tb
.• ,9r.e:e..tne.nt.
~iti~!;~:r6~~i~::~:J·,::1k:~i~~1~~~r~itt,:~rl:~~~~~r~ra~~~~1m~~:~:~m~~=~t~~:~:=~:&:~,:~·
~r~~~::9t~r~;r.:~:t:1~~?~~~1:!1~1:.~,~::;:~~~-~;~;;
. ..
§Od
ptfie.r
1n<::t.1rretl.b.y
1n:connectton
-~-~ §i-ta?.<!'1l~.,<qgmin1~lr~tn1~t~X.PeDs.e.€!
·~II
o.v.e.rn~.~d.
~r~ker
¥:f.~~!~::~1~ili~~~;~~:-:~~~t.~t:~:.i1:t:ti~~~~1~~f.~;l.r.&~~:1~~~=1i~:~~q~,~~:t;~~t~I\
~~t$r:iJ ~ti.c:!tHn~y ·eire. re~$11>na.bJe: arni l;Jof;µfuoot€JJ:f:~n:9. lhJ~C:e:$sary; e.uthofized in~·:advahce:.by
·'
RliAnni.~ t\ii:~E;i~
·
o~.vendor·~service.s·~
F:ee.s·anite~petises·for·Vendor.SeMces':shaiLbe p~id)bY, Fannie. Mae;direttiyto·the' Vendor· in· ac;...
c'drdanc:e;.:with the terms: ahd'.'cotiditron·s :ser f©rth' in theconttact:then in effeetoetwet:m tneVenaar·
ah'd Fannie:Mae~Unless the REO'Sales'GtliCJe/e)l'.ptessly'petmitstBfokert6 P'$¥$uch f~~~$lid~X'.'
P,eases:on Fannie·.MaeH:~':oe1:1a1ran'fftcrsubseC1uent\Y·se'ek reimburs·ementtherefor;,"inwni!ih q~se
fannie Ma~ wiltre1mbuts.e. Brokerfor the Vefid6r·Serviees pursuant to :s.ection .a (Administrative
Mattersyhefow,
·
·
6•. Administrative Matters -
fl.• E)(peo§'e· Retffi~l;!r$e:ment Fotn;la~
({1\t§J!(6\1~111(i\tiiffiil~
1f Bn*~r xs,:,9~9901\:!\~Q, w,1tf1J1.n A,N.IP,,J>y. tij~ AMP ()0. ;~r<:>k.~r~ i:\efil':llf~:(~) tn,a.t ;;ir~,n9t.s.Yi;?rn1.t~e-~t<:>n
tJ1¢.' ¢9rt.~QUQroi.~;Jp) th;:!t .?r~ .h~t$.4tirnitt~q w!ttlin Jhe; t!ril$ fta.mes gr in ther!Ji<;if.l.ller $p,e¢ifi~.Q 'in
0
0
·
~ ei~:~~i:.~~ii0rh~ ~k.~. ~~.1.!~1nr.~~:~iR:~,t~~fi~a~,,~~~~~~~i+:e.~~~~~~~¥~~p~f~;~~=
9~iv~~Jli
¢poftec.tton. Wi~f:i ff<:1L1qul~ht q)9Jri1S:1 pJ9iJiqf;1i;I. Mwever, .tha.t:th~ r~f\.!M sh(J.11 notqqh.~t\Me
lfq(,Jiqa.~t';id, cl;~n';la:g,$~J9rlti$ ¢I~i(tj~;
·
a~.-lnvQi~~~·SYJ:>.roiij¢~•·tbr0,ygJ:aA~c,oyot§ !?·11y!:lbl~.
This S!!ctlcin apptifis onfy in tire ev~ntfhat at1 fhvott.e ls:generateddor/?es or e:f<pe/1ses o:i.~tside:oi
the ordinary course .ot buslhess1 . the: f~es ·.or expe.nses..at~: not fJEi:yi16ie ~t seWer:nent ·.or, (btough
the ·eXP$i1$~.f~lm.6tif$lJ.ment proo_'fj$S:d$*¢(ibe'd [!J t~e REO s~.,~~ ' Gu.icfe cmd. Fannie M~e. h~s
aqr'?:ed fn Wri~fng In aqvanc~- t9PC1YQr reftrrb:Ur$'$.'.l3rO'kErtfQt$4.C'IJ fees or.e~p'!7,n.sf!S. In th:atcas~;
Efro.l<.er mu~( ·Rrpviqe the lhv$1ce. for ,suqh tees ·an:g ~xp.eo:§es by ern~U to ~c+
coun}s.,..payi:i~le.@tari~i~m~;~..cc>,m•. QrJo hatc:l qqp,y fotro '~.o lhE¥. f0U9wi[:19 m;;1f!in9 ~qtjr~,~~! Ac~
0
co.Upht f>ay~bJ~·; 2H~2Wl()4;. _ 3:SQO Wi~cQnsin. ·Av~hu~. N.yy.,. W~~hib~toq.. D.O -~0(:!16'"~892. (()r
such.other ·ad.dt¢s$ as• f\'a.noi.e. M$~ advl~e~ ~r9ki:lr'. ih vuJting), With $h al¢9tr!imlc <ln;dJ.qr p<Jp~r
copy· ¢fthe frwoib'$ to t~e: Fanlii~. .Ma~ poln~ .of¢p~~~9f· fq( o:gtk:.e,~ pQf.~~s~s; .qr- a$·:q(n,e.iW,l~:ci:~m
tect$.a. by sucfr point ofcontact E;acfi: involce:.S.hpH identifShfhe '¢dhtt~ct Numb~r pf:tnis· Agre¢,.
~C~~~:~;t~~<l~':~~'1r~~
~~~~:~=~~::~~~-~~\~~ ;::~~i; ~!.. 4~~ji~;~~,:b~itr~3!G4in::~~~~.
ir:iforrnation' am:,t such Qfh~r frif~r:rrrai!o.n ~f.;· req\,IE},St~d:. lw F~nnle M91? ti:) r~ollit~te ihV\)[¢ing ano
pi;jyr:n~nt
lnvo.t~es.th~t .arer p~y;:tf:il~Jhto.qgll:·ih~~ F'.a.nr:lieJJi~~,~~oo:urif~ pay~bie;.deparirnent··~,h<:lil'be•• pay~ble
by .Fannie: lVla~ {orfy;;ftve (~$) d.~ys-aff~r fann!~ Ma~!~· r¢.ceipf·ott!Jif\nvoie>~; Fanni:e Ma:~·sha~lnot
be. required to pay· fon:h·arg~sthat are not..bflled' within nhtety (~Ql clays: after the reqtiired biliihg
date. ·
·
·
· · ·. · ·
·
At F?nllie
Ma~'s ()pti'Oyt_inyoi¢e•ti~~/riients 1 snat1·1:iemade; by:check
($'uct1 as ~n AcH oteoit)Jo Btt:iker's banKadcount
~,9
Confidential
.
or b~telectrohic·.rands'transfer·
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~·.}~~rrmf;),ttfa:~:ot.eril· . .-
..l\11;:amounts'due•iartaet:tnis;:.A~(eementsna11 oefp~~ble'lhU~s1 m.-011ar&
1)6
·.p.J~e~~~~.,~
~cii'i:~l~ijf:~~:?,~J:~~~(·~WMJ~tj'#~-p~y -~(E!pµJ~d.· ·9mQqr.i(§; JJ.nlfJ$S,~rnd. 1rntfh~µcJ\ tjisp..uJe·J$•:re;:
e.,_s:tmofis..
·fii!!i~;J~fi::i!w~!~i:~Hi~iJi~~i~'l'1i~i~~T\~~
f;. r!{~'f.4.Q#.~;
0
1r;.~rd:~~~i~~:n~:rs;~~~~*~~-r~.-~~b~:~f~~·~~-~~e~~~;r~a.
~i~:~:
~~{~~~a!hr~*!;l~~~··i~tW¢re: P:9f'.aCcf:!pt!3·q
aroker Will.
iS$Ufj:•a t¢fUn<ftl';)
:M.<l.e.by
py·Fanni~.-Mae;
lmmC'ldiat~!y
F~rtflie
ry:ie<;1ps:';f!ccepff.il:d~ to "f.90.nj~ %~€:!;;.Pt9vi~ed, lfth~ l?§Yrn~n~·'«~;;;.:rnA<:\.~ .PY §fe~tr<:'.lrilcfJl!.ndS;·. tra_n~~
fer; . at9~er:· 1;1µthotize.i:>. F~nn.f$' . MC1e, :to iniJl~te ~n :el\;i,e.>tr:Qni¢'. qi;ipitt~grn~f.t:ir ffPro a.r;glq~($' i'!c:Gountto
¢9rr.~ot tl;le
errp11:
1r Broker is in. breach oftlii$ Agteeme1'.it1~ Fannie MM m~y withnold an~. disputed r:>aYrnent that
Would :oth'erwise:: be due Broker'tleteuhderunilf:suehhrea¢h has been cured.
. .·
ii~W~lf~~tlfl~~~!l~~t~'~!t~!ii~~~
~•· Pi>.n:ipJ~ti9Q'·~n~Ac~.~pt~n,~,~ ·o:f$~rvh:;~~.
Notwithstaf)dln~ranytblrrg to. the: co.r,itrary cdnta:frwfd in this Agreement t6~
S.ervfo~$ .shctll be per"
formed and ~o.mp1e-te:d fo Fannie Ma~;i:f rea~one~J.e::sC{fi$fi:1dtton; Fannie Mi:te shalfhave the.·rlgtit
to ·reJect, deficieht .S$1'.Vice.s and shaft not t:>e ci~lig~tet\I to. pay fqr rej!3oted . $.er\iices. until tnt:l
grounds~ fat re?jectlon· .have beetr.ternedied to.· Fannie Mae~s:r-eaS'.Qhctbl~ ·S:atis{1:1¢tion-.
Fa.Onie. Mae'.s payi'iieht'fdr Services prior to. Brokers cohipletibh .ofthe Ser'Jice~' ot- Fannie 'Mae:'s
i:f¢ceptant:e ofthe;Service·swilr notdiminish sr.oker'$~obligations nereundetand will nc>tcon.stitute.
a Waiver ofFahhie Mae~1s: tights ottetn'ediesher.eu.nder. ·
1. Tel'aji[taJit)[l; E~til~aUqi:l .A·. T£.lrrnit.t~.~iQ.IJ qfA:gre~m~n.t.
Fannie M.a~ ~or· aroker· may' term.i,nat~. ti:le f\\1jre~h:lt:lntc;it·f)nY time IJVi.th 9r without 0?,4l3~ upon
·Written noti'.G~.to. the other party; effe.ctiV.e on ttie date speCified in .such notice or: immediateiyff oo
date is; specified:
·
$-: "i:'~trnft'i~-t.~§~':~t E.#P,it, arn~holL~ti~tj Suppl~ ii:i¢tit or Pr· operty listirtij{hn~licatio' ns·Of
I:t:~t\.$f~r·t(> Alt¢iri~~lvt}J:>.is'p0'$Jtiott·s~1l'is
cffahne1.
~fljj!i~~ill@l;i~iit~!ilfl~t~~
r:anf't,~· NltA~r ffi<ilY .~§rrnJQ~~f?; .~P¥ q[. -~II. 9t.t,h;~ ;~'t'?'P~~. ;~~~IQhW.~fi1$.~ . ~:rw 91"_, M:qf J.11~ H~!.i.Q$
p.µpp\e!W';,r:i,9, .!il.f ~:t:!Y pf.?11 ~f·t,ije. P:rc9.PW:t¥ !;.l$~1JJ~~ J~~!J!lfi~-~ .i.n th~· L,l~t"~g .§~P~,1~.n.:i.l:lni~; ci,t ~,ny
tim~
with grw1mp,1;1t @~µ~ie ·tfp:c:tn Wti!t~JJJ19V~¢J9 .~t9)<~r, $ffect!V~ of! .the i:i~t~. sp$cif!¢~. in. i>µcti
119tl9i;~q.r imm~~li~t5lJv .ifno cia~~ l$·:~p~9ifi~d~
·the aVokfance of'dpµb,t ff Fanni~ M?,~ .¢\~ct~ t<;>. tr~r1;;;fier- a PrQP.t:i.ity ts> an AltE!m~fJv~
Disposition Sales' Channel ·f(;)r $ale ·:at. Auqtion; th~ US,tjhg $i,ippI~memt lh: ~ff~ct PD t,171~ dateqf
transfer shall be terminated .end a n~w Lis(ing $1;1pQl~ment r$fjiectlng ·the cornml~sion or fee
Fqr
• I.Q
¢<mfi(.l¢i:i~i<1-l
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<bral<erto;wn1ch:t.h.~~Pr0p:e~~ ·LLst1t.}9 h~s;Q'.~!;!.11?~s.~l~r1!!id ...,~t:itn¢.~(!Jsc.~~t1g1:n;;f:th1;.Jtsilt1·g ·~r.oR~r,
ir··flfitinl!?·· M~fi,;e1~~fa~to<transtefaRrqJ:ieffy to::ati ~ltemati!leHalsp:osittons:tsaLe·s<©.hanri'eL.fotsa1e
.f~Js~~%t~}t:t¥~~l~·-~~~r~i:.i-~:r~~~~i~:in~~~~~~=~~t~~.::~g~:~eg~e~~ntJ~~::c::~j~:,~cl:~::
sup.ptetnerifto r~fle·cf:cth~i~J\'an,9;e in mg:tetatiV.~ rights.::and\ti,blJS;atlh!;fs
·ot the'· p~rties~ rn ttlis 'ease;: ·tne am'e_nde;d:. Listing :~.qpP,leii;telit Will tetmin~i~ :or eX,pire :b.Y: ·th~
<ame:rraeo :te'rms ·~na_ 13,fokei wili 'c~.ntlntre.Ab ptovldi:¥. Ser'.\ilt:e.s..Jrorn a.nd.' after- th\:l':ttansf¢r tn
;act:«irdaF.fce;witn the·REO sal~s Gulde,
:g~··~l}.l,i.g.~(gtn~.· l;fp:q(l T~~@ilj~~i9~3)_f fi)(p.i(at!tj'1"
·(j)'
AQr.eernent W~~n'lhe·Agr~-~m~!1.fi.s't¢fmlh~t~C\ . ·~tgk¢.f'Will,!.lti)ii$qif;1t~lY'.~
(~) ·c:ea·se-(afi;a:ctivJtles.with respe:ctfo·· fhe·aff~~e_d Property,;
(Pl Wittiih five HH 'day$ oft~rmin~tibn return to Fannie Mae; OJ-all a.oc;ume.ntatlorf:ancl
t~:9,~r~s .t:~1~~iii~ft9 tii~ A~_reement;. incluah'W i: but not limited. lb, work in prowe:ss;, .~fi)
f~rfnie fyl~$, P,r9>\1el}y; :an.d (iii); ·materials Mntairting or embodying Fannie M.ae
c.onfioentialTnfotifil=itioh orMateri~us~ ·and
·
· ·
:~if1¢hdm~nno the ustin:~
" _•.., · ...... ·
·~-. ..
' . '"
•. .
·· . . - - .·.: ·..
·-' .. -.
.- -
' .
-.-- .. .1
.
.
iilif!~t~~i,~ill~JftjiJfl{~i~~
(2)
Pteµerty; Assignments: usting S.upplements. Wh.¢1}. ?. Prtir~.rly A~slgnrn~n~ ...• ·~ LJ$ti~g
$\:iPJ:!l~me.nJ.9ra pc;tf:tlq.:ri~r Prop~r\y lJ~~!ng lqe.nt!fi~q ib a; ~Mitif:r$upp!$tj1'enfe~plre~ o.r
ts·te~m!rip'ted,. erokerwill, llnl~~;_s .c:hh~P..vi~e P:ir$Qt~q
py F~nol~ Ma~, lmrii~dia(eiy:
-
(a)· cease all·ac(ivities:wlth re$pect tqfh~:ettec.ted Properfy;
(Ii) Witflift ftve {5) days of expirau0n or terrriinati.on tetorn .t~; :fpnhiSi Mp~; (i} ;_all
aoql)rn$,ht$tion. an~. r<%cotds relatih~ tt::rth'e:affected. Property; ihclucling, but not li(l)it¢~tto,
W.~iW fti pt99Jeefs;; ·(ii)' FMriie MM
properfYi :and ~iii) materials eonta!hiQQ or 'embodyin~
lnformatton or Material$; and
·
1
(f?l ~t F~n.ni¢ £v1~e ,s: clir~:G~!Q.n. h<?fiffth¢:V~rj(l9f{~):~:~\5igreq t9 t~e,affe~~ed Prs.P.erty mat:
(!) the 11~.ting .h?~. P§~ti 't~rQ:!Jn~!~'~ ~!'.I.cl tJ:t?t a,lf Y¢hpor Sefyl~e~ W!th re§pe¢t fo ·the
.firop,e.Fty flJ4§t ~i;$e; .~r (ii}· 1t1~~ '!;i~; P:rpp~rfy A$~.i_ijn.ttJerip~j. i;>;r(jp.~(ty List_lr(~ lias'J:leeri
-~~rrn1ri;;i,g9; .t.l1,1J.-.tfj~t tti¢ VtiMgtC§l Will nevefff(el¢$.S. ~.ontlfiy.e·to perform the Vendor
~~\~~~~~~~~l:=~ti.e.9£-tq·tn~~tfe.¢\e'd. ptqpei}IE~~:iii' cfonNnc~ron·witfr Farlnre Matitnr 'Fannie
f9nni~ IYI~e 99hfiqefiti~J
:n~:~~=a=t~·i!;~t;i~~~1~1~,£~~3'~~i~1n1i
~!;i~:!~;~i::~j~£~~~f?!ii~~;a
as: the
ges,ign~~(§:};
.
case may he~
Th$ paiJ:l~:s·wiJI ccfntinue tQ be. ootitrd QY those sections of this
Vendors',
expi~S!tion
orterrniO.ation.
·
D..Eff~c;f,pf Termin~*'~n:k; f~}.Cp.iri\tibn.
-fl
¢~nfj.g~rt~ia.l
Agr~ement th.~t s1.uviv.~
·
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~T~;:~~~~:;i~~m,l:~~t~,,~
.•
.;......,,O,'!e.J·
f@.'"f1JI
~~8~~~§~
Ill ~ll'..
pr.rp.r:tc:i:
}h_~ e,~p1r:at19n)Jf.
terrninabory _elate as
·t.~i~~~~?J~;.:~~~f~frig~~li~::;~~~~s~~~~-~;~;i:~:;~~~i:~~~~~~=~ta~!6.E!~
.-.~li!t(l§!:f:,prt9.rt!?.Jh(;?;'~~PJtation'QFJ~rni1ngtio:r1·c;tt;\te.; irtthe:ca$~9.f Prcffj,efl.Y. Ust4ngs;
!~~5~~if~;!,::;:S?;,~!i!?~l~I:11~~~~
!l~i!~~~~i~i!!li!\ftSJ~57=ail
. Pro.tectimn"l.J.f'.am:L¢n1y;Jf:1'(;;l:):wltfii!'Jifl\i~ (~J-:d~y;S·ottlte;~xpiratiorFet.t~rmihatioti·.a.;it\3:
·:·i<et
tnii\ty @'.iX dq~§ o.t4hei exr.irr~t(c;>h or·terrrilh.ation 8at~~'J3toker Ptote:ction:ls not available in
C@R"iie¢~Qfi. wilg _a: s.~_ie··th~t,o:cq~r~::s~ibse(lJ:J~r:it to ·a termrhati:Ori. :with Ca.use:. dt ih' ¢orinectioh
with ~n/Alteto~tive,. Di§p·os.iti9.n $a!J·~,
.edmmis·sion,. Raym.etits 1.:.1jjorrTerminattortWitff.Gause, ··1itthe;e'!i:enfsf the ·t~_ftdihi;iti9.i1 ·.with
cause oftfief'.A~Jeernenfi"·a Ustfns sugp1ehl~nt; ar a·:pi;irti<;:µ1a.rPfq~efft¥ llisithg;
Brot<~f'.yjjH
not be entitled to receive.'any.':tiitnffii?sions Wit!t r~sp.$c~ to ahy Pfopeffii ijiff.e'9tf¥.d
bf'~u¢ti
5I:~S:~5!-11illft.=~~:!li!Vl~~~r~~~~
ii!ii,~ll~~tS~!1ttlii1tt~~~il
P<ilrtial terminations~ Tryer ~etrri(hci.tron J>f fb.i;: ~9x~em~nt ~Jl<iil~ lE.!rrnln.?.t~ .:91\ P~op~fty
A.~~ignm~nfa- ~ric:f Ll§Jfqg §:4ppler:nen~~ 'Ip ~f(~qt qn tb,e· f~q:riln~f!l'.>nJ1!ciJe •. ~tok~r. w.IJi
iajiJleoi?t~ty~ ¢E?a§$ ?ill .~¢t1Yi~i¢s _h£;iJ~µnd.~r. u.ol~~~ t~~' ng~p~ pr9yid~!,>. t.o~t s.P~c.iijc
·rrtip~rty ·.A~§l9tirn~ri!~1 .hi~t,itjg .9!:1.PPlemi;itit~, :c.>r i;>.tqp_~t;ty P!,>lln9($-) <:1r~- notaff~Gt~q. Jn
walcti q?~e ~II $~r¥1¢~s· rgl?.i;tlng .t!ir -~µgh µn;afft=,9.t~tf prqp~rty A§~i9orn~rit~. Li§ting
$qppi~m~nt~' or pr9p,~.rtY (i~HtJg(~} $.h~it ~-e perforrne;q µntH P9mPJ~te~:_ Th~ Agrg~ment
Vi.ii.I r~m8.Jn in ~ff¢Pt yntU ~hir$~!Vi(3~s r~l;:\tJilg tq $.!J.<?b 1:1ni;lffe9t§d·Prqp~ryy P~~flJ~.s', -~l$.(ib1;1
.§YPP,\~JTI.ent$.. 9C P"t<:JP§ti.Y Li,~ting.(~) a,r~ GQ11Jplei~:q i,r;i. lij.G99Icf?.n~~ W~'h ·~h~ :tt;.Fljl~ cp,pd
··~i~q~~~rj_tj~f i~i:tt~r:~fi~-~hf ~x~t~i~N~e~lr~~W~1~~-~i ~~~J6:t~~~ i;r<il:C~f!:~~
J\~§igtif;rj~ht, Li?~in.9 J;~µp,p1¢rn~ot
or
Ptop.~r\Y
li§!ih9
:$.g~I!
n.qt ?tfect
~f:~:~:tj~'.~ri~i8.gd~ii~~:&~f%~d~[0~~itt-~{f~~:o~~ith ·r~·~peqtJ9
th~
P.flrt.ie_9'
Anv qtt}~r Rro.r.ew
~- ·¢<mtidE;!_nti.~Oty :~n~f PrQ\~.etiQ,r1 ·pf·R~c9i:-4.~ -
A. conilt1e:ntia116tormatib.th
1ni f'.i?tfy (the ''Receiving Ratty:fobtains. actess'to eonfi'dehtiar 1nf6tm~ti$r((Qefine.~t~$10W) ()f the
Cith~rtr~Hf·.(the~nisdosih'g'Paffl'~r11:rce¢nrl'eetion With:ttiis':AgJe~m~ht;.:tli'e R~¢efvin9>P~frfY. ~~J:tee\S:
(~). 'f.iot'to dfre¢tly: ol"ihdfreetiy: disclose the 0onfidential··rnfo'rrfiatic;>n to·any thfr~ paf\twi\h(fot th~
bisel0sing P~rtY's prior ~ritfen cansent(an'GI l~:J.'.tb>us-e tne:0onfiaenua1· lfiformatio-n· only as rea~
sonablY neesss~r:ffo·:pertarm its 6bli~:J.atibtis undetthis AQ.,reement; ·
- l~
Ccmfid.~ntlf\l
·
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~~~:~t~h~r~~ii~rli~:~~:i~~:::.;~i~~~i~~~~d~~~if&~~Cfitl;t1~~:h~J~gg~ci~h~¢R~~~K·· . ·.·~~=:
tron).(eo11e:cuvell}f, ".N.Pf'.!); ·ari't:io (iVJllie·Materi~ds:,(d~finet'.f· oeloYl)i wniClt~fo tl1~'¢9i:lff~~.nli~l.·tpfP,t;Ma;.
tion,of P:annieMaei
·
· ·
·
~':ii~~~,~~t1i1~\~;~fi1~itti~iliit!
·t.he:G.!fir'ifi~en~i~1.·111fc>:itl'i~tit;m;
··
J'h~ ~7~11/!o~. P~ttY stf?ll iJ~~ ?id,~cist the· saJ:oe .df?.gr:~e cir car¢ to< RroJect .~b·e: p.onfi~~nti~f In..
fo_f11.1~t19n gf:ttie· P~scJQ?ir.g ·P?ffi'<frgm; uqC14Mlori;z.§d· di~~lqsur~or $c;cess· "1atthe, ~e.ceJving :Party
µ§¢sJ9 ·prp~eqt its .own Gorjfig~n.lja(.lh~<:m:nE.l(l9n; ..~lit: l'.lcit ie.s$ than. reas\J..naole <3~m~. The :Re~e·iving
F.?~r.w..~hC!il.iinro~qi~t¢fy· 11gtifYth~ R1~%J9sJng . P~rfy o.f -~.QY~P!Y~J.qr .~ysp~~t~d 1¢~$· ot .!Ji:i~titnorizec:i
qs_~ •.9i$qlQ~ur~ 9f'or acc~s!1? l9 tll~:Q.i§¢lcisil19 ParlY:'~ Cqn,fio'7mJi~I JnfQrrna~io.n pf wnicn It 1?¢'~mes
aWqf~ ~n.d icits~ all .st~P?' r,~aAom~qtr (~C!IJ~s~\1 ~Y ihe Oi~.c!q~lng P~rty to lhnit $tep or otherwJ§e
P\.~Y~.nt s.t1GhJ9ss gr 1.mqt;tfl;lpr\z~.d: l!S.~ • .c;fisqlos,ure or ~¢eess.~
·
·
..
l~forrnaffon. of the r;i1~ci6sing. Party shcill not he cohsidered Confidential lnformatloil if m. (i) was
ptevJousiyrlghttully kopwn by the':.Receivihg, Pauy fre.e onmy obligi:ltion to. keep itcohfideritfat~ (Ii)
ls:orbet:ontes p.tiblic{y known throQgh nthvfongfUJ act of the R~ceiVfng Patt}'; (iii) is.inaependently
developed by .tM Rec¢ivll'lg P~!W Without reference· to the confidential Information oflhe Disctos'"
:fr1g Palfy.;or (iv). is .sQbje¢t to (Jisqlosure. p.ursucihtto· a subp~ena, judicial or governmental teqµite,.
~ent; .of order., provided thatthe. R¢¢eiv(ng Party· has g'i\1en the· rilsclosing . Party· sufficiei)tprior, no~
.ti~ :ofs~c.b slJbp.0.ena, r.eqµirernenf1 :or¢tder, fo permit:the b.isciosih~ Party a teasonaf:)1e·J;ipportu.nlwJo obj~ctto tf}e: ~IJt>poepa_,. nact_yitement. or drder. andJo al]ow the Oisciosihg Party the :opportunlty'tc:rs¢eJ«~a prote<Jtive. ord.er .or ·(ltheF9P~ropdate. remedy.
To:ttte extentttiat Bt.oker ha·s; ac·cessto FartnieLMae's records:(JnclUding but not limited te r.ecords
containihg confidential tnfoi'niati6n), stoker a:grees'to· maintaih,'and·to ensure tliatthe Broker Per;.
soMel $ni:lNendors maintain, appi:optiate.me·asures to ensu.rerthe·securify,. confidentiality and integrify. of such records, fnctuding measures ·to protect against the unauthorized use,. access, destruction, loss or alteration of such.records• Fannie Mae retains·th.e right to review audits; te5t te,.
suits or other equivalent evaluations related to these measures and.to conduct corresporidirig: se"'
curity testiilQ to .the extent necessary.
·
·
lh furth_$ranc,e1 .and tiotin limitc:itibn.; pfthe foregoing, the parties agr~e· to the specif!c oblfgations
·arid reS,ttiotiohs$et fer(h in sub.secti6i1$'(8)throi.igh (D) below,
·
Et.8!s{('~~view Pr<>cess; fQfQrm~tjo.ri, S¢c.ur:i~y1 $tructqre a'1ci Facilities.
Risk Review Process, E3rciJ<E::r:
aokriowledges thi;it Fannie Mae requ,ires C.ompantes wi.th
wpichJt cqndi,lcts ~u~ln~s. ta perlod'iqally participate in :a 'prq6e~s that requires. s.uc:;h ¢qmPaDies tqte~ponct toihqdrrres atu:lprpYidE! ihkfrm~ti'on tP ~~sist F~nrii~ Mae in deterr:nln(ng
a)'1d: evah,1$tihg the risks -'C!S,~oc{ateQ with doing bttshless Wi~h $UCh cornpanle·s (the "Risk
Review Process~}; . $roker agrees to p~rll~i(>C',\te in til~·. R'ii?k Review 'Pr9ces.~ filld lo
pr6mpfly tal<~ ~ctl.ofl'~\'J. r~me~y· ahy adverse tin~:lfng$ o.r·vuln~r~bmtiei>Itj.~nfi~~~ ~Y fCl,uni!3
Mae Ciurrng the Risk R¢view·Proc~ss tcr Fanole Mie'$r~a$onai:>.te satii:;f~cti~n. ·
(2)
lrirOtmaUon. Secuttty Standards· arid Piticedllres .. 1.11 th¢
E?V~.(\fthat B.r~ker N;1$ ~¢,~s~. t9
w:~d~~~~r~~~ ~rr:J~·~f~~~~~:ztth~i(:~·i~~lo~:tif~r1~lhif~~~e~M:~i·~H~,R~tt~i~1
0
Whlcfl'iUs h~C.~$~ary tti ·tr~.r1$f~r io otdet.tO f00y pertorm the ~etv\c~s.
E}tok~r wlll
impletnent,ati'd f11airjtajn pclici~s, pr'bc~q1;1-r~~'.and.:J>rog,r~l'.ns~o rnaoi;ig~:~W,9;tem.,
privacy;.'OefWork ani;t data~.ecui'iW·; to incfude vutr;ier~billfy/p~tch mMag.ern$n.t. anti~vi.hJs
scannihQ, man:;igl:lment ofPf\y;siCal complitir19 as-sets-and coiiffgtiration of network security
hardware (collectively, "Risk<Management Policies~)Brqker~s
Risk Management Policies wm be subjectto Famire Mae's review .and approval
ancrwm c;onforrn, af ~ minimum; with the: ~tahdal'ds set forth· in the d¢Jcument titled. "lnfot;.
matloh Seeurity
Requirements for ·Small 8usihessesri inctUded Within the Supplemental
~13
Confidential
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~.·,.~~!~T1G-t~~~t~:16~~~Wigfet-t~~~~Et.,treRJ~·~yM:Jpi$.r~ret~
:~:F,;:t~~~~~;~~~:·'~~~:~~~r.t
,J;l.. Le1.1 .§S. ...... " .... $!\ ana.9em:en .Q 1c1es Y, ,means .0 m. .e.
"#... •
,
.
. .•...
~ ..
'.fil~rl~:~:~~~~~,~~;~:~~~a~~At~:-i~~~~-m;1;:~i~~~:~:;i~;~:~r~~k'·f~9 ::!~~~~
an
1
m~~pet1Jf~rit~%l:~cµri;y:-bl$$'.~.$.*:r.ti~.Qt:Js,regµired; .. at0.R§tt'!VUI gtqn:Jptf¥·:pl:)taintlis,~asse·s$:ic
m~nt if), ~.form· U'i~f;J~i~ppr,iJy~p l:)y·:F9rttii~:Ma¢.; P.l'.c:Mq~/fannre
MaE:l::Witt.r;l;l eopy;drCsum:,,
m~l'.Y' 9f11te .(:l;:;~es:sroeptt ·~!\a;r.~meef.y . fir'!Y: adver$~ :firJ.~ing$~ or wlher~hilities· fnatwere.
n9~eq;:\n.the;~s.S:es.sJn~r:ftto ·Faoni~:M~Ei.!~:.re.as:onaoie·safisra¢.tion.
eto.~er:wm pu?yit'(e,:~µ~hii~f~mr~ttq1t•an9; repgJis: re9~rdihg.ittJ~·oP.~ratfOnar·r.isk$:t~f~tlh.9 to.
f;lrnker1l:l··Hl).'¢.'qf t$:i;;hnoJO,gy,JrrG9JJQ~gil.¢n W'itl:t• t\:lis .t';gr~¢itient, ·anit perloi:lic ¢,ertificatfotts·
r~~afdJ.n~. ~t~~f.lf$.1?meJl~~~~wfthi!hi.$\~9B?e¢tl9rt~flh~ Agr¢emen(,a.s· mav/he.·re.ason·ai0,.ly re.qy~stecffrorrdrme tqto:11e:J>Y. fannr.e Ma~;
(:$)
A0C~s~, ~tp~~psh~!I n9.~-P~Wiif~n,~mplq¥e:e(sl,·tq ~aye•a(lc~~s;tq}he,~p:rei;nfs~s.,retows
or. ·:cJ,~t?t. wqi,c,tfi~ :n.qJ rel~te:d to tl\e: w.erk. p,erfotrned in 9ot)he.cliqn With tlii~ Agre.~m~.nt; ins
qlyqfog, puf.not. Jtniite:~ftq, C?G.ges$Jq any· .offe1nni.e' M~e1 s physlbrai or :~fodr:b.rtiP: -fl'te$, qr
s¢r~~n v,l~w.s: Wiffii,o)a.rt ¢le.$troriiKifill?j. o.tl.ier 1&~ur.tfios.e·fites C(l.rJ<:l .scre~n vl¢ws·•fb~t'~re;·diL
reritly rel.ated:·to·a.. ~.s.e;that:has:been-assi~med to th.e·~roker b.y F:annfo MaeancfJimited to
~ucfi'fl!es and .·screen·vieW.s·as;a(e··.neces~ao/.]6r the. Br.oket'fo,carcy. ootlhe:·.seditees' con~
·\empJ.~t~d yndet'for~. A~i~em.~.rif fl.rgRer sh~lf 0Pt:~1j~w .~nY Broke( P¢r,sp~ry~lor Ve'indb.rs
t<? enga_ge tn·the .corigu9t:qf:tlw P.~r::i~ing ~ffair$ offann!~ M~e t:irits affil.i~tes;.wl:lefl. S!JCh
Btqker· Persgrme~ qr }l.¢nqor:si {a.) hA.Ve'Reein ponyicted {;lf .£:\ crime or h?.ve. t;t9r.eec:(tq qr~n- ·
~er¢.d
liit9 a pr¢triat (jive~ion.9r~ir:nilarpro.g~m.in9.01Jnec.~iQn with: (i}ia,<:fisnonesfactor:a
b~eaq~ of. trust, as !:;tip.ul~~e<i IJQQE1:.r Se9.~i<m f~ of' the Fe.deral Qeposit li:lst;i~n~e Act;
1~fU.S,8. 18Z9(a);;$ndt9r OD afekmy; qr (b) J.Jse illegal drugs.
C; Pri\;a~y.
Broker ack(1owl~dg~s. lnat Fannie Mae is or may be sllb.jec\ tO l)nited :§t~tes:fei:f eri2\, $.t9t~Jm9tqr
iritematiOnal laws, direotiV.es and r~guJ~tion~ (GQllec~hrelY, the. ":Privacy Laws~) 9.ovemingJhe pii-'
vacy,. confidenti~Hty ~ proq;ls$ihg a.n.cJ. mqv~rn~nt of NPI ·provi~e~
m~clS. ~c::c::e;;sible;-t9 Br,9ker ~Y
Fannie Mae or pfner third parttes In conngctfo:m. with this Agreement,
or
~rol<er shall perform lhe 9~1V'C~S f6rwhich it Is .re.spbllsible Lind.er \h.i!S· A9reetn$nt ai'lt;l'Br9kers
other obligation$ unqer this. ,tl\9'r~ern~nthi a> mannet that compiles with til,I appilcfi!bl~ J'.rii/aey Lc;i\,Ns
rel~~il19 to th~ C01!~d,ion; hs.~.J PfPC$~$.ih.9, stora~.e; prot~ction; dls.closute, ah(:! de.stti;io~ib,ri·<?t NP!
~nd with'. an 'Fannie Mae cl'ata p'tot~cfioti Ein<tl privi;i:qy ·p.91!cies provi(;fed llY Fanni~ M$e lb Wt9~er
:from:ttme fo Hille.
· ·
· · ·
·
· ··· ·
·
·Bro~er wllr ,n9t takf:l ciny ;:i¢ti0,n thatput? f~nnrf?· M9e fil br'e~qh of. its., 9PH9.ations lln.qer the PriVC1cy
Laws ~nd no.ttiin_g 'in thl$·Agre~rhe.h~' wlll QE,!:·~eemeel tq pr/?vi;int Fcinnle Ma.e from tCIW'19i tn~ s~eP.s it
reaS.on~bty· deems
neaess$ry fo· comply with th¢ Pdvaqy Leiws .
Brqker is. prohibite.d frqrn disg!O.~ill'~h :~ireitly c:>rinolrecttY •. intentionally or negiig~ntly, to any;affili~te
or jbirtj . garty,·,a.ny NPl.t1nles$: (~)'FaQnie 'N!l:le give.s. $.f'.ieciftc c~nsent prior totne. disqlos\ite'.ofthe
informatio~; (Ji>) the clt§ctosur~:IS'.~f?.!¥¢iffcally. eoritem,plated J?X this. Ag.ree.ment; ot (a) the:dlscl6sure
is reqµir'ed io order tofully P.¢ifotmthe· Services under the Agreement.
Broker r~p~$s¢.nts arid Warrants that Bfoker has arid Will ·colitinue to. ~have adegu?te adh1ini§trative,
technical; ang ptiysicarsafE)guards: (a) to· ensure the security an.d cohfid~ntialify of Fannie Mae
NPt:·. (tfl to ,Protecfagainsrany :aatk:iP,ated ·tlireats or haz.ards to the securify or integnw of. Fahhie
rvta.e. 't':IPI; and. (i:';) to .(>tc:>teot cig'airi~f lm~uth$rized acquisition ()f; access tq qr: Qse of Fannie Mae
NPlwbich could result ih,a "bteac.n~·as thatterm ls.deffh.ed u.nder applicable Privacy LawS.1 or$ub~
stantla.1 harm tp Fe;nriie Mi;!¢;· ;~i'IY; FantJi~ Mae E1mptoyee. <D.r cu~tomet, qr any. Jpdiviciua.) ab9.yt
wh:omF.ann'ie Ma:e has or c~ile¢ts.'finan:<il~l:$Od Qth~r in'fonr1ati9:n.. F~i:inl¢! Mat;!' shall hav..e·,ffif? Jight
tp req~E;)st and r~ceive ann.u.ai ¢etilfibati9ns: fr©rn 13.rol<er regarding Brokers ~©mplianc~, Willi the
Piivac¥ tawsand:Fannie:Mae -polieles:
If Fi:lnnie
M~e
teasQhably bemw~s
lh'<?~ :the
proytsioris of tliis Section may have·: ~e~n
br¢acf!~d.
lhen, sUbj~ct fo Brol<et's. teason_ajpi$ ~e¢9.f.ify teWl¢tiMs a:na: upo.n rE;'la,~onabie n9tiqe,. F'amlie, Ma:e
ao4 l(S. repres$nt~t(ves wlll haV~,a~c~~s fo Broker Per~onriel; books1 files and affairs retatin!;no the
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Th:iii:a~;r:k~:~rQ":tr\i=:::-:::mr~a:~tia~~i~r:~~iti
.o. ·01nies\•.and;Re~pons:ilii1itie's\tttttte':oase'6f'a~8:tea~h.
F~n}1t~..~~~h~h~JI n?.v@>Jfl~ ~pl~ ti~:cyt ;!<l :<J;f?..8iif1 wh¥..\1i€'.t:it v.tlJl'ipv.~$tl~~te tti~dqcJd~rl qlqn~. !9.~.~ther with ~rgk~f.•·'?r all:qw:Srq~~r tp l~§p 'tt'le,anv~st1~~t1P;p., Srn~~r w1U·qq~B~~~te vqth~<jill ~i:)nnf~
M~~;r~.qµ~$ts fqr 1nfqrmc;i,t1on'~Q~t~?.s~g;~J<;t,~r9k~rf$ pre.mis.~.§~ ?.s':f.EESP~Bt~;th.l(..Fanrn~M~~;.Qgnfi•
tlMtiPtl lhforml:ltign, incllJ.(f\119 ~!I ~pp(!'.Q~J:>J~ fe.¢hriPlb.9}fv.ih~r,evgr .loq?.te.~t :srol$er will· ·als9·.~oppe.r
"ate wl±fr.~Qv.~rnn:tent~gen¢ii3s·.~nd..l!;iW;§nfqfq~.rr:t~nt.gr:(fifie.~i;i.s;mp,y Pe•·re.qtiire.~.,
If Fannie: Mae;tleter.mir:res 'in Its sqfa,cfi~cretibh"that affeeted.:'ind tvi'duats~.must.·b.e·.notlf!ed.ot the~ inciw
:~~n!,.~8r0Rerwiilp~y·ipr·a1i:~x.peh~.~s.Jefat$otofrt1~ ·rnvestig~tfon.o.t"tfue.ln~ident: tfae···qo!>.t«ofthe~o?,
cqs.ts.·, inqli:tc;lii1g Fl:!.nnie
Mae'.s· out ofp:ocket l~galexpenses. •.·~r.idJ;my. fin¢s impps.e.o .by: any g(.)vernrn.erit<Igen.c;;y; .Broker will cooperate With Fannie Mae to limit·;. sto,p:, prevent; o.rtemediate any loss'·ot ·rnJsuse of
Faniiiec·Ma~Go'nfidentiallhfotmatron.i·rhcluain~ but n·ot: limited to:. NPI.
···
•t1Jic~t1.ons, .the'., o.os.Lof credit mo.11it0Mog $~tvlc.e~.. ~no: (;)th~~· re:m:edi~tion
....
•
.~
<
•
~v,
'.,
:
•,
'
•:
~.~ ~wn~i'.~fiip 9ll\.'l~t~t,1~1s--
Wi!h ·th~ ~><9.eptil)r:vc;if~tqke.(s.tr9ge. n.arne.; iqg9.;o.rpthertra.t1~111?fkS.; ~ll !nfE:ill;eiaj:1;1p{ ptpp.e.rty Ri.9hJs ln?ridtQ.Jf!~. M.ate"'
ti~ls:crel:lt€ld;,¢on:c~(ve.:d,
retj)J.ced t(;fpf?q{iqe; 'qr UXed'fr~ a:tanglple. me.dil,m1:of:e1q:1r~ssion., whlqne.ve.r C>.~Qur:s..:fJf$t lJOQ~r
µ\is A:~ree,IJ1~f:)ti sh;;iil \/~$t ih Fannie.M.ae; &rol<e.r bereP,yJrr.evocably· ~s.~1gns:·:~9 F~nn,i.e.· fyjf,l~ :~ny .~n,~;;~ii 1.n:te.ilectl!~!
t'rope.rty ~ights,that 6h'!.kerrn~y hElve;Jn··grJoany;§µ~h Mei.te.ri~ls, C1n9 ifre.vq~b,Jy·w;:iive.s <:!ll.ni:9ral..ri9htsin, andClfl
oth$ririteife¢tual Property)~!ghtsJQ;!a.l)suc;h ~a.te~E1Js..
.
. .
..
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.
"ln:tellectual l?.tapertY. Rights" rr.learts;~dtcopyrights'; patents; tt:i;lci:emq;rks;:ser'Vr~ m~rks·; ttC1d~<s;e¢g~fs; !TlO(al Tights
ahd •other propnetafy arid ii:\tellettual property flgHtsPfwh:atev.ernature.
·
~MatE!rialsn' m¢a·n:s ~lLdo¢1;1m-ents, reports~ ~Mli$e.s; ~.~t~ cprnpil~fo:ms; (ie.iiver?ol~~ a..ni:J: ~tn~r m?teri~i~,gene.ra.t~t!.
g~thet~d, collected, or ·d~VelpJ?e,q l:>Y. ~roker tri gonn@d.tlog with: (~) J~e· i9:entifiqf,lt\i;m anq .evaJU,a~ion pf (h.e Pr:qp.ertie$; (l'.!}the·manag~m~nt:orthe· Propertf~s; (tfthe me'.!fk~tii1g .pflh~ Prpp~r:tl¢..§; (C!J t~e 9.i§pqsiUorr.pfil)e p'r,qpedi~s;
includln9. but noflii:l'\if~d. to; r§lp.air pid.s,. 0G8!-1P.a.l].GY $.tatqs ~~pqi't~. 13,_r,i;ik,er Pfi~~ PP.if:lfqns,. gppr~l~ls:C!i;igft;:fed.i~
reports entered by l~r~k.er and Ven9Qr:$'.irit~:0th.e.
Prop~rty.A.s;;Jgl'lrnE:lnt ~Yst~rnand theG.9.ntent.(d.~~n~cl tnthEl. Aµqi"
titin Suppiement}d.i;!Y~lpped·.in~onne,d(qn wi~tran :Awctk~n;ancHeJatl 9iher S¢f'!l9~s proV.i~e9by B.te>.k~t. .?fidVendors p.ursua:nttcfth.ls Asre1:m1ertt.
tO. Wafi'?hti~s-
~MiilliitlilfJ.I~\~~~~~!~~\~~~~~
A. 0.<>-rpo..r~'~$~~tv~; . uc~rn;;,og~.
Stdkerrep.re~erl(s; warr:ant$·an!i1::99y~rra.l'\t$ k> ~~nni~'.Ma.e:
(i)if Broket i!NinientiW, that:it is; a:o.uly organiilel:{, vafldly exi$tlng and ih:gooq .$fandlng un~¢.rthe
.1~wshnne.stateJnwfiich1us:.otQ.~hi't:eBi
'
·
·
..
·
··
U!Xlt~'. e~ecqt!9ri, d.~liv\3ry and petformanee.·or:thisA9:reement (~J: itBroker is ar.i entity; h~vE?,·been
·~d.th~d~~~ ~y ?ll ,nec~~§~ry ~f:p.~r~Je::~eti()O; (9l t:1od1qtViolEite:tti~terms otany. law; re~.ulatio,n;, ·or
~O.t;trt ord.~r io Which l,\li'p~ef fs.$(1pj¢ct\ or ·ll:le t~(rns.pf'.any rnate'i'ial agreemenFor statutdry restric~
ilP.n tq.V;ih(c.h BJQ.~~,r of~fiy qt it~)'1$$.~~,&1re s4~1¢otf ~hd \c} ate nofslioject'~o the· consent'or-:ap-
prov~J·pf•~ny.Jhlr9
p,pJtY;
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'.~~lJ.~~i!~~~~~N:J:~~t;~y.~il~:'?!1~l:~[h~}ng':.gfufl9~tl9J1:pf;:~.r~k\;!ft!;!.rifQ.r,g~~~t~·{1Q§l11~tti¥r9~~.r:Jn;~~-
:ttfit~t~~fi!'d~tld)~!tf~?~~M~fti\~:,.~,il.!~~~i~;ia~~
' 1. 100 esJ:) ·.9,00 · Y$
an.· UJ~ · o f-'.anrue.. .ae;t:ie.om reques\j
iil~!l!Jiii!iJi!llf!}l~i1tl611£il11!1
':~~~1~~iff:~~~e~dri$'$W~Rir~~P~~l~~~~9~#ft$~~fllD~i~~W~~ij~~:f.·gqvemrrler:l~! ?~~ti.oo w..~iG.n
the p~r~<:>..ttw!ip·,e.z:eqµt~.$ thi$.A;grgemeflfi;itild ~H.rel~te.d;dpclJrne11ts.,qo behalf gfB.roker rep-,e,~
•§eot~'.~w<;1 wcirrfl:n~s t<? Fi!rmte M~<;i f~~tp~ipr ~h~ fa a it~ly 9µ~~qf!ze.~. c:l9e.nf9f £3~ok.er: with:.tne
requi.§ite PPw.e.ranct.a:1:1tlJprity·~q.·piri.i;t~r9kert9·,tme· ti:ll!n§• qf-lhi$. Agre..emelit
s •. Pertorman·c'th
.1trJ5·ertormlng jts ooil~atri:liis',und.er·tb1s>AQteem¢nt,·wl~h"°'uNlmftln~ any ·dtfierwarranw hereunder,
,Bfbker'tepresents,•. warrants :an.ct:c0venant'S. to R~hhiEFMae;
·· ·
qualified,
•(i). all Work'wilt. be peiforttied In a .pr:ofessl:onatf:l.nd:worl<manllke. manner with the·reasoni;ibl.e care
fllarwdU:ld be·take'ri bY
competent and:experienc:.ed;asset: managers:
(ji)
all •Work Will. be· performed· iJ'.l t'icqotdai'.i:<;ie.Witl:i the•·stallcl?rds:,~efforth)nJbi~ t\gre,~men.t,,ipciuq•
iri:g, .but notdirrntea:fo1Jhe REO'Sale-s:Guide; thetAuctiot1 Supplement {lh;1.ppilcatiie) and'~ita()plica61e ihtlustry standards:arid: practices;
{iii) Br.oke.t
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•has the requ[sJte per$O!lnel•. e,ompetitiv!'l $lilf!riqes; ~n9 f!n~o:<l:!~\ .~lld. pby¢i~I reto .ptbvide. ah(!,lq ·t'ut1y.·.pecto.rm the$ervl$e.~ under'tfils Agreement:ancl
~sburce!:Fnecessary
{iv) Bro~erwill imrnedlatelY ngtlfy F~nnle Ma~ in tne eve.nHhat 13rql5.er·o.r an.Y Ve.nc;tqr uti.lized PY
8.roker is.. subje~tto. c,lny f~gCll·rJ9:tkm1 or re.gµ!a,tocy cigenPY. prqf~sS.i9nctl. .~wer,~ight panel, qr ~t~te
·1h;:e.nsJng .P:o;a~d lr:west19at1pn, tf\!3tresutis in ci,• o.e.Gi~\qn. on:J\~piptfn~ry ctC.tipnth~t n:iaY: il'l:lpact the
.ability·uf $'teker or Veni:lor .to p!:!rform $..'ervic,e.s h~re.unge.r:
\iVith r¢;;p~e.<t to.·.'.;;gbpatt(!i}1 i~1 th~.· e.:t~n.! tn~(Jo,~re)~. a. CQI;lflipt p.~twE:i~n th~ p.ect,ormaqi::e. s~c;in
.c;tarqs §let fqrt.~ i11 theJ{E\) $.~JeE; G'.t.iid.e1 th~ A1,1Gtiof1.:S1Jpp,l~men,t:{lf ~ppli9§tilEi.) an9. t.he.sJ;;in~~rtjs
~set rorth. lnofhis.
S.ept{or:i:. ·~he nfghe.r $tanqar<l of pertolJlJcaD<::e·py sr.okE.lr, as rnas_pn~l;>ly qet~m:nine.c;I
·
~by P~rinie' Mae; wiil .be. cippli$a~le.
Ct Emptc1.y:(!~ Q1,1aiiticatio:ns.
Broker represents and wattants~to Fannie Mae that. an ..Bto~et .Pe.ts9n!'.(¢l. SuJi1.yQntr,aotp~; and
ven..aors,.s$le{;)ted o.y: Brokerto pettbrm s.ervr.ce.s net.eunaercshaff be:qualined.i with '$\Jlta.Pfe:t.t<:iin..
·ilig;· !3:kp~ri~~~e"~iid:s~ill, anti $hall have :a11 righUM:ind licehses, neces.iaw·to fulfill their obll@attons
Y'~.~_¢f t~,\§,, P,:g·r~~(ri~ti~~ · ·
· ·.·
··
.
[)., ~,yl>'.c<>.o.ir~¢l~#§.
~i~~=~ i~:~~sJe~~&~n:ith~~:~:~c=::r.m(~. M9e wit~ te~p.e,ctl9 ~~ch. sµ.p_q~rl!ra¢t9r ~tf9~9~~ ~.y
(i) theSub:contract~thas,~i( iie¢ns,e$ n~:er;~~:a.,~J9· c;arry ,pn It$. b.1,1s.lhe.s:s.:'a:s. .n.o~ ~¢ing ~o.nciJµgtF}o
·ciiic:J Will pfoVlC!e·,a ®py of all sueh .license~:to ·Fannie Mae upon request;
(ii) lhe s.u.pgof.\tra,.~tqr is ih$OretJ.:ih a:e¢otoanceH1vith the r¢quirernen\s set.forth in this A!!J.feement;
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·;fi:i!t~~~f~!~!!ffJ1feiriti1iaf
~the·;Fannie Mae.website).; 0and•h·as4nfof:meoAhe:'.£UbGortftaetoi"·of11t$foe@aliens. eiriaer'.'tbts·::Agree!-.
.· ..·
-meht:d~~na
·
··
rf8;t '(!tllt~;uiif,!,1iJ~lli\il!i~L\il
-.·~~. Q~Vlf~i.~~-~
Stoker repre.~:entsaodwar$ntS.··tt). [$nrit~{M~~:th.~t:
(I), ifWill nqt: permit any entities :t)t. ihdivitli:ii:il"s thatcareLaffiliateo with it or·any. Broker :Pef.sonhet
:tfiroq$11 fariiillal tetatiohships~/eqµify o.wnets nip~ debt or cr:eoiF$,:tran~eroents; ··p:artnership_~. or any
·0th6'fmeans. thatJTiay present-a conflicttof'intetesuo:penorm;Serv.iC-eifor redeiV$ compensation
t>f· ~ny kind· irt cbtineetioh with this• A9reemenrwitliout f.ttnnie Mae'.~texptes.s,, ptibr\- wfitten con-
·sent;·
·
.·.
· ·.
·
i~ittiiiii~i~t1;;s111~~1tt1tr~J{1i1~
.
~o> it.~h'CJti. a,¢t~a1·i;iJ!tii:n~$: s.oi.E:llx .(9r'the ·e~m~flfaoJ F9n.l).1~.M9.e. F11JQ;fl.9W1ins.t~,oaiog;a,nY';a.p~O~al)},e
~ti:iteJ~w... $h~JLnqtrepre$$nl, b<;>tn .Fi:irmil? Mi;J~.i ~$.'. ~,~!!~!\ ';lQQ· ;:ippt.~ntJ§!l .R'-!Yer:J1JP9n11.~c;tJqri
·th~.·$arn~,re.al' .es.tat~.Jransa~tipn;· .Q.Y~i ~enpy ·i~pr9h\p1~e.g 1Jng~_r .~i§ i}gr.§~merit
F~
witn
c:oftiputer Information.
B'ro.k~(feptesent~f,and Warrahts,tMfifshall hotinttoduce ihto any Fanrti.e Mae cdmpliter·system,
?M'cqmp:(Jt~r §ofiware.;..cbdeor maiwar.e Uiatihcluctes hatmfultit undisdbsed eiei:nents: ··
or
(i} i11teri:<iff;i~ftq disr:µp,t dJ~-~RI.¢,. r-~t@; .IJtnerwis~ lmpe~$ .th~ operE!tihri of~ny Fannie Mae ·data.,
·~a~ei ~cl.f~ar~.~ppUca.tip·ri, eti®rnri4~~r system (~:uc;n_a~·cofoputer "vifus~s" of"worms!i)t
(ii}:thaf cilSabl~s; 9r ·bnpi?lirs. the ope.r<:l~.on of1 ~ny Fg1;1nl~: Mae 9?t~_i?.a.~~' ~9fl,w.<i!re ~t>;p!i~c1~i9r1, or
c6h)puters.yst~rn b.a~El.d'.00 ffie; pi:l,$sage Of time, 'the 'lev.etof U~Cjg~; or O.t.h.er prce~o!pterrnihe~ triS.t'."
0
ric(s·uctra~ta
$elf..:f1~Jpdevice.'');. Of
•.
;
a(:cess:aqy .F,ann,ie. Mae' daJ?b~s~-. sqfu'.'are ap~iica!ipni, pr cornPu.t~r
S:ystem tb:c·ausedisaolementet im'P.aifment ($uch asa ~trap door;·" ·"access sod.e: o.r ~back.doc>f!).
(iii) that errables· Btoker'tei
G., Wi.frr;~ttW 9t•f'J'(>nHnrriii9em'~nt
~tol\erwarrant$ ~!'l9 agre.esJO.?t.
(i) no1.1e of lh.e' services: yiol~te Qrfil:any :w~y iQfrir19e 'l!P.Qn.Jl;l~ Ji9ht$:·qf .o.ther pCjrtJes; lrn~lµd,lhg
p.roprieiary and n:on;.d\soi.Q.sure rights, or lnt~n~:ctY<?.J PrqP:~.rty: Bi91i~s'i
(ii): there· c:fre: no. existinth p:enaing; oti ~o= stoker!~ b~.st kI1o~ledge; thrR!a.tenei:t ol~Jms tegarding
vid..latioti· ot'infrih~emennwany suctfti.9.hts: related to thei.Setvic.es} .anq
··
0
!~~~W~Hlltli~:li!~!~~gi~~:t::~~~~:~ij::!~'~:~:~:
{1. fo§µraM~'"""·
IJ.uting the TE)rm of tb'is AQt!aei:nent (~ti~. tq lh~:' ~*ter.i! fh~t:a.ny iQ$µr~oq~, is, q9rci~cf9ri ? pl~im~: rna..g~ ~§l§i~.Aor
such peffoci there~ttet'fhafcl~itti~may !:>~ fegi:illy xn9Q¢.·withTe~p.~Qt t9 qgGµr:r:~nq~~-9.U.r!n~Jn.~ T~rrn) ~il~titr.~n.Y
¢ventptior to .oommenc¢mentof S:erv'ice.s .under ~bi.s. Agr.~ron~nt; B,r(?.~~rW.iUD9)~~;~n4:mgfn.t$ip i.r';I fptqe1 ~t :{3r,ol.<$1rs
·expense:; no tess'tna'rtthe typ_e~ a119~·~mt>ul'.l~$.Qf.ip?qi~.r!~e ~.9v.er~g~,<;t§~qr~P.-~~J;in ·tl;J,~ fRPf}i:i? ,Mpe lo§ui'al1c~ R¢'"
qtiirements:nocument;·~ c;:¢py !'.if whicfrls fo9Iqi:t13din tfie;~foppJ~rnent~i 0.ocJJtn!;}~ts i:fa.Gk?.9~.
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lmf~t~:~!~ifi!l~11~~!t1\~:i5ti:tl!i~~~~
:~~i~~~:~=~~~~i~:~{~~w~::~~~~~~:.1r1:~~1~~~n~9i1~:~=!~ ~r~%a.~C:.~~i~ed~i1~::c&rq~!~;~~~·~;~!~i~~~~e~~::
1
lfc.~tJ.mY time a-J:qK;~r ~!F:~.ny $.µQcontragt()rf9,Ji#':~9J:WQcµr~<o,r;. m~intal11jh~ te.qulterg~ fns,µr:f.inc~,<Ranhie ·M~l'e',,. at its
()P.tfQn,. mi:tYJ>r:QGQfe $Q§h:·ir1$.!.,t:ran<re cm·.pehaff)'.jf!lfrokerar:td Bt.oker .wiihreimbuf.se Fannie Mae for the cost ofsuch
0
i6$!.ir:f.iDl::e/~~~n.:d¢maoii,
Jh'e:Jninimum limit~r ofcoverage. des.Crioea in this sectieih ·~ita1fie Fatini~· M~e: thl:ii:iti;ihce: RE;i.quJt¢m~tit$. inclu1,1e,-g in
1
~~~:~~:~~i~:;:~~e~~~~~~~~~-~~~~J~:~a~~7:!i1:~~~:~r:~:~1~: !1~~:::~!i~~~a~i:%r~~if~~~l~~~~~·6{4~~~~~
1~.Jtj'd~illh"ft¥· . ., .
Btq~e.r$h<?Jt i.o.4~rnnlrY•. ~q(c;l l)c:i.rmle§~i ?OP P:~fe.n~ F\a.n.nie M~e. ''~ 9ffiii~te.l?'; C:IQd fh¢ir ri:ispe..!;l.t(v.e:pfftq~r$, .•afrE;Gtor~i
.R\!~~9mE;l~.!· -~.9~P}?;1~pg· e.rn£;1lP.Ye.~:~·?.99Jn§t<i'!l. CE!~Jmi?; l!?PHi!l~$., GG.~ts •. gamag~~. J4.q$m~n\~. ·$ µJt§, aqtio,n~,. Jgsses
C1rt~;e.~Pe.h$¢§,, i.(l~l'-1rttng te~$.9fl(;:\pl~.a,ftQ.ri.leY.s'f~e,s:.§n1:r.<li9s.ts.·.9f~q!t.·a.~isjng.·9..tJ.t.•<.ff;9r·re.st1ltin9•ft9m·~oy.•thit~·-l~arty
~1r~\ilf!~l~i1;:1!~l~1~1;~~i~~~~~~t~r~~iri~
ypd:~r: tt\1s· A\9te~rn~.tit; {q))in.y ii:)jurie.s.t9 P.e.[:§PO~:On¢\4gifl,g :~~9tti) :o,r: 0.?rnf:i9.es· to, pf9p~rty:.®..ll~l:.<f b.Y tll~·negligeot
pr wllJfyJ :~¢\!:l or.pml~s.io11s qf 13rok~r pr Its $1;1b9qotta.-¢tors (~i:<ce.ptt¢ tll~: ~Xt~nt t~al s.1;J.9fo in,j1;1Fle.5•.<).r #~mC:Ig¢s .<;1re
oe.11;,15.e.q by ~11?•. n~~Hge.nl:(e orwnif.y[ misgqn~µct.Pf FC!{\Fiie:.Mi;.1~.or:c;my cl.f ft$ -~.rnplqxee$};' (e)..a:ny 1 Qnan~*:il ~rr~ng~
rn~nt~
i_nyQl\'.ing
t.h.~ P~Ym~nt
Qf GC>0.1Pe.t1s~ti1:>n, co111mis$iP.B$; PfQ!(e,ipge. ft:f,~s·, Pr 0.t.h.er G~~rg~.s.q_f ~ny. kf(l.d. tq :any
sitbyf pr*er$, ~~.§.9t~; .p.r~n<1~fl?:; frwr.µpJn.g 99C?P.er~,1Qg~ b,~9k.§~9.( 1~,·9.9:nn~Qtiqn wttb4qf:? Sf;!l~·~9f. a Pf,9.B~tlY :for w.tj!~fl
E3rPke.r .ha_$ .eam~tj :qgrop.ensaJ1qp
1JnQ~r,to1s
Ag\e.eme.nt; mfa1J.µ.re. tc;i mfonn G.QOP,enatmg b.reKe.rs· 9f,tl)9·te.rins of-tt\IS
!ll\~t!\~l~i~:~JiifijJ~~t~ti~!ti~~i~!ifi~~f!~\~~~!~
1:~. Liroit~_liq!_l
pfLi1:li?Oity .(~·~$ .S:V:1;;,Nr sf•bl.k.~ii,H~R. PAR"fY,JT~ :9FfH.~f?R~i pjg1=ct9R~.;. r;Mf:'LOY:E§S,1 A<ssNts:.oR_AEFtLIA;TEs
BE, .LIAB~~ TO THE PTriEB PARTY VVJTHJ~E"9f?g(:l;+ TO THl'S-AGRg~ME:N'f; PR FOR.AN¥ ACTOR OMISSION
q~cll~BlNf?~ iN .coN.fi!i;<>T:l9.tfwttlfi rH1.~: AG.$~it~i:cNt·•. f'QR. ~qs:r.P[{¢>,f irs~ L.Q.ss oF s,crs1Ntiss oRANY
bf;HER l.NOJBEQT, iNCib~N.tAL.• do.N~setl'UENTIAL:•. SPSCIAL. QR PlJNYflVE~ O'AMAG.ES,,QFANY ,NATURE.OR
14. Taxes' -
Fa:nni~ Ma~ her,et>y ,re,~rese,nt~, tn~t uhq('r §~cti~n 30~~~~f4J 9tthe FE!tjeiral N$.~iE>f\C1! MPft.9as~ f.1.s~9¢c~at~n q~~~~r
Apt, 1.2 lL$.Q; §t7'23~(c){2) . Fr,mnie Mf.\¢ is. eX$m'Pt'ftotn au s~ate, t:irra t~oalt~xe~. ~xcef>t cer.t~l~ tf;l)Ses. gn ,re~I
pror>¢rty.
fatitii~· Mae. snaii not.:~e
F~nnie'Maefof ~ny
si.lcn iaxes.
r.espons16re: for ~-ny .s.t1ch tax¢s paid on its· b(2)1ia1r•.Br9ker shall not bill or ch?t9e
·
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!!;~~~
~,.1~lfil
:,~;;!~t:~!fi~~~is,~;r:,!:;1!1
p.;,. , . "'
..:J ·
L .... .. )k ..........) Ll P~Y..P.J; ~~~§::(r~9fi!FQJ!?. - · Jswu1,1n§q19ti9n);·pnq::~o:)- .
r t!?!X~s; rnclud1n.g
:~~lftlt~~~~tf{ialit~r~~~:i~~;~r~1~~~~i!t~i:::,i1rat:.e
16 •.. P..l:phib.itt~n.;~m p:q_bHMtrr'""'
~~~~i~~~i~~~i~~ii~~~~lillflli~flt
arinoUri:eemenl intended sole!y fot iriternal'distfib'ution by Broker:tq Broker' P'et$9h@lJbfqe_ilitafe tn'e p:t()yl$ion cff
.se·l'vices neteundet
·-
··
·. · ·
·· · · ·
· · -. ·
16.. •Noil'~Solicitation·,.,.
our1n~Hh~ Term-ottni$!V're~m:e\if BtokefWillhot. Withddt the< riof written
consenl 0f FannieMa.e :solldfarf-em-
i~:~lfi!i~!:£~!i1!!~~~,Ai~l!~~~~~!llr!~~l~~il:;t~~
11..
§µll.A(>:n!r~ctp_r~ -
~tok~r ~Mli nq~:~Wplpy any ;$.IJP¢On~raqto.r-'Jn ¢on11a9ti9n ~lttJ, tt:ii~ A9.r~e.i;n,enfwifu,p1.A Fa.rinie M~:efs prior written
c~Ji~ent1 ,except{;:;i) .S,.ub.contt.~<:rto~:whq. ~I~ etT)P.IQye,(:;l by Bro~~r to:,c9mpJ~te ,sRec~q~proper;ty m~in,tenance er re•
pa:i'r a.~.s.ig11rnehts,:tti9t.·.c;1r~:t.cpnt~.rnp1ate,d bY.'llJ~, Rt;b ;s.al~.$-:Guioe.;C!nd 'for'yvbit:;h- the·t~EQ. Sales- Gti.ide expr.es;sly·.or
ii:tipJit;itly,~onternpJrJte~dbeMse),>y Sr.ok~r qflhird pr;irty•:s_ervice· providers; (bl S4b:contracto.rs:.wryq:.a:re selected f~om
Fannie. M_9e~apptoved· ve:n!Jor lists; cmd (c} $yp_contra:qtots :w.hq ar,e• -s.eie:¢tsd 'i!J ·a.cc;:ot9anc.e.wJth~a'ppiicEible s_¢tec.tit:1n criteria·:.or -~rtUdelln!?'$tn~tmay P.~ provio~d.py F~l'inie M9e to BroRer'frortrfitn¢ lo.titrle o.r, if sel~ctton criteria ·or
9.t..Jictelines..ar.e~ n_qtpr9vlc;ted, :1n a.Gtorct~ncewlth, indl:lstry b~st prnu::~i§es~
Fannie Mae: resew.es tile rt~hno direct Btoker.td'tepiac·e a S'Ubcontractor at any time.With .o-r withdutcause.
!l~l:1~~:1=Li~\t!Fili~!~ms:"~t!!~i!!i!1~i:fl~Xii
with enfotcirl9. Faffliie' Mae~s fiQhts undei'thisA9reem¢nt a!;J,ainst Bfokef's. .supc0ntt~ct9r~
Brok~r sn?lrii'l~ll,ld~ Jh·:tb~ ferrns.qfea¢hgf its_ ~gree,ipe_n,ts wii!:l $4t).~pJ')tfac#)t$:? ·ra,(:!l:IJrem~fjt that:Jh,e s:µo.C911trcig-
!~~~~l~~iga:~i~T:Ct~~t~i~i~~S!!S~~~ii!fll1Jt~i;$;rf~l~
11t
lnde.p:end:ent Gonir.acfor.; FG·M-""'
A.,lnd~(jend~tit conb':tctor~
!ki!~ill~~rr:!iWJ!~i~\~ih\1~~~~H~t\lil~ll~~i
will ee,
remain
emptoyees er
the $'er\iiCfis, Broker Persofrnel
'artd:'\vm
a.trail times;
indepe·naent
contraeters of Btot<er·(ot sub:conttactot~ as-the.:aasevmay befaha shall r1dtba:aeemed:t<ibe .em~
plqyees'·of ·Fannie MaeJor any· p.urp:ose{wliatsoev.er: Ar:f.betWeerr Fanrlie Mae and Brokeri Stoker
snalt be- solely tesponsiole f6r"tnE:1;. safety, anti supervision.:of Btoker's·.and, suocontractbrs' em-
ploYe¢\S anq pciymEinfof wa9,e~i- sala-ries:<;fr\d 9ttte:r.i;lrn9.liht~' du~ ~'oen·e·rnpk>yees in conriectron
witff tri~ A~re~m~nt an~ snau ·oe respo:nsibte tor an faxe·s, re-pods and othet &b119'ations respect.,
in§:'eri'.iptoY~es requited oy ·iaw:
·
·
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)j<,,R~M..
il~l:.in~ti1iyl!t51!.~t·~d•.~.~.!i.~tirt ih g~!.d~.:fi~l~1 .lt~f.!.~
.. ·
. o .. e"'~e..1:.1•• u~ .on1:.1
e.
1011
e... ('l.urp.os~ se ... 1.0 . . erem
-snaltb'e:rt~fsticn j:!rililcipatantrl!l~ent'te1atl6n:st1rµ.
1:~~ q,§.ffll!Ha.Jt~~;Wftll'h*W§.
an ; . . or .a ..o. m.r.p_ur:po.ses, luere
·.··
, ·
·
-
~a;rm!i~1g11~~~,,~~~1~1r~i~~!il11::!~~~,,~ii~~
~.eq, a.m~
theffa.milY M1?.9,i¢~f1 i;~9vg./\G~; E{rq~e.r$h~.11 a.1$.PJ®iDPIY. wi\h.·911:~).<~qqt)y~,grcl.§:~·'a.r:iq t~9.IJ!~tt0n$ r.el~fiog
~i~IS~~1i,~il~~iif~~il~~lii~i!?~~
G9.l)D§Qt!OffW.itb·§l1Y' §IJ,Gt:t?<;;tg9J.gr $1,!!'ilP.ecti;CI ·v1pl~t101fl~.
20.'.Requirements·.f0.r.·EquaJ.E01ploymJ~r.ii . Qp,pPl11Joity~an·if
HERA lo:Qlur:>iPnti~la'""
As a :m~tetii;iL¢ohditipn· ofthis·Agtee.riient~ BtoRercomtnits to practice th:e'.p:nnc.ipies.of~.quai e!Iipib,Y.m~ntoppo,rtu,.
hify ~hd 1101J:-disqiimrn~tloh·in ·.a'il its' busfi'iess activities; Btok~nagtee:s;.tti. te:quite> each:eflts./sdb:Gonfra.c~ot$. that
pf9vi~~rse:i:VJc~s.· of gdods·tq
t~l:!!tfari'd
Fan'nie: Mae'k>' 'similatly cO"mmitto.. praetfoe·tf:le. principles ·:ot ;eq1H:1LemplC>Wnent'opporM
··
·
·
· ·
n'¢!psa1s·qrlrninatt9n iita:n their bUsihessactlV.ities.
~~i~st~~~~::~1~~1~~r1r:ia~wt!lt~1:;i'a~t1.1:1~~~w.~:1!:~+%%!f~
Wltti .
anq
1
fiijrJtlif1%\Mi~
~i~1ir!~~r~~!~J;"~~i::::~i:1:S:~~Er~i~:E
rEiquested;
'ti:~~. w.()m~Jl_, inqiviq~taJ$
q\s?pjllti~$ ... itO.~ rjli_hodl}i~.
women;.:
cUsa~led-:tiWhed btlsifresses at all
lev.els; ih
$faty$;j¢pqit~i as
art th!:l nµmt>ef of minorities; wome~. andindividuats .with disabiliti:es utilized
~.Y ~r§~~r" M~ 8f9.~i3i{s:S.o~9of.itra~tors.; ~ht! any oth~::rr informatiorr.Fannie Mae,tequests· forp.urpos¢s:(>f c,o~P!Yln~
~ith fi,E:f.{A ~(§iii£! otJ'i~f d,iv~rS.i.ty ani:l ifiolii$foh requireritents .. The HERA Obli~,ations doc1:ImenLihc.lude.g i~ the
$.1Jppler.tjefit~I. ooeuro~nts Pat;t<~g~ ¢6iita.ii'ls
Brokers failure' timety·to· comply ,witn these
H.·~BA~f~J~t~~ q~U9.~tJ9il$.sf.l'an p1fdeemet;1 to
bre~bht>fthis Agreement
···
· ·
t'.iWh$d
z1.
HERA;
-telatea'obl!gatidns.,
be:aliiaterial
R.~qgrd ~~~~ntl~n;<A~ditRr9il(~
'""
A. Rec.or.ct. Retentl¢n.
FPt;~,period of'nt:>t less •than seven {7};}tears afterthEFexpfration ottefmln~tion ·9f:itii~)\~re.e.m~.nt
13rot<~t-~n~ll maintai'rt., and snaU·reqiJfreits Sut>t.ot,itrac.tors·~anC! \Zend:orsJq.m~ltit.~ln; atno ~doi,.
li~~~~itf~'~i~iii~~;~~~
due tophy.slc~ald~roa-g~;· powerfilllµr~ .. orpby$J¢~l 9ref~Q.tf9.ni~:Gqr:i~~miMtf~n.; ~md.:,_s.hi;itt m~:in~~ir;i
1
·j~~w::~!;,~r~~~:ci:-:··1~~~rtr§~ ~J~k~~a~~(:r~~~r:~r~·~~~riJ~~-w:~~~::Q!:~~j:1~,_~:~ir~~;~~
techn¢i¢.gy to a¢.e~s~ ~nys1.1~frd9e1.1m.~nt§ prreqpfd~ o.n- Br<:ike.rs sY.st~m§··;:.1~· r:~11oi~ M~€li.1h. l\$
.soie. discretion:, d~terrnines hr necess.aey orc¢n~enient.:~n~:sh~ll usi It~ ~~~.t~tt9.rf$ t9 ·.9.~taln f~r
Fannie: Ma¢ a' sfmilar ·1icen$Ef with r§sp:t;¢ttq•tht? SubJ::GiDt(a~tqr~t.an9V~n9P.r~·''t~r;:;nn!?IP9Y, if~5-µi.h
a llcense. is necessary to eriabl~ P.~nnle Mae fo ~xer:clse 1ii5.: dghtto a¢.Gess .!?Yeh c!p.cyment'?. or
reeords.
·
··
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~$.:,,~y~:i~.'gjg)J~~-
iii~{i~f~~ffii~~lr~f~~~~]~~ll~~
22. rnjutWtW~ R:efi~f ..,.,
1
5
r:r 1~¥b.~:::s;.~/!~~~1~a~:j~·oc~c-~!~irtt:~:~~(~~~~v:
. w~~~n~§ !lh~}~:rIJ:ij!~t#~.~i~.~~¢~dfa°ctiftJt}~fa
~
..)q (i)Jb.ei:pa.rfy
(ii)·;ff no
¢.P~.~· gfBtQk.~r
iq§!l),iff~!'l: lw. r:lro~.eL~l:i:Jhe n~gipr~nt·.Qf 1,~ga.t ngtic~s:.pnJh~ g9v:erF~gje,pf
17a.lfy h~s 9e.en ig~ptifi.eq ~s.·the r€l¢ipJ~ntef legal n9ti9~s Q.n ltle· G.9Y:er P?ge; the ~~f:tY ]qe[ltiy"tLPJJlh~ Coyer Pf}ge
~~sJne ''Srqt<er of' f§:ec::or~h" or (q) in ~ltherqa.5e, such. either p,oirit'qf <;:pntaof de$ign;at¢d ib wrltirig PY ~·\fiee:_PresJq~nt
or rnore $~niotoffic:e.r:qf tM. p~cty,, Ali su_qh qommy.ni~aUon$, Mo>n9tlces,sh~U be, itl writing, ,a.ddres.secl. to the. parti.es.
ahh.e ;actd,resse~ ~et forth on fbe. 9~v~r P$,9Sl, 9r,t~eJat~;?tk,n.l:l:w.n yali9·· addres9·,~ifthia.11.~ni~$• ard.•oSh51Jf be gPn:sid"'
er~d. re~yetj:; (13,}Wh~n per$.Ol'.Yally:i;feliw~~~d;
WM~n 'c:l,el.i\f~red f),Y::QQQ1[1)\;lf9(aJo,ve.m\gnt:qQl,ffi~t'With yerifi.cat(Q,TI
rnJ
r~~IS\ipt;(c;)·when$.e.ttt PY C.Qn.firme<\if$.~s_irnil~; or;~~) thre.e (~tdaW>
·fied mc!U,
re:turn receipt f.eqi:H3$lett
.
.
after t:\avlhg:ii:>.ee.n senf.P~o.stag~prepa_fol,:Vfape.rti~
-
'
. ·-
. ·.
NPtwjf~.~~.a,pq.i.hQ th~_ pr~qedl!lfl .Paf.C!Qr.apb! not!9es',PUrn.@11t:t9;.~e.qtfQf1 4.(J) (N9Vtlc~ti9!J pf ·_~'R_rp9ra.~ed$v~n~s ), :§>gc·
and .R~rn9vat<:lf~ro&er:'Per:~.Qfl!).el .~11d Yenoqr\5J•..$e,~tio,ri 1Q_(~)(iy) (VV:;i,rr:a.pti.e,sJ·~pg Se~
sbaUbg R.19.C!e ~lep.tro_nii;a.lly \{ia ~rn.a.il ,1;1s fCJ.ll0W:s: T~) (h t{'.l_g qaS,e. 9fFa.n!1i!=! Mae. lq
.Agreement Notlficatrons@tannlemae;c:mm; .·(i:il'lrrt!\~ ca,~~: o.f $r9ker,, t9· tb.e . E;JtDai.l·<f~dr.e'ss. ~t,0.viqeo:fqr· t\;e t~(;Elipt
tlPnA(~)(?) (Q!J.alifl¢atto11
tioo 1-7 ($µJ;i,q~:mtr~ct9rsJ
effie.gal nqti¢e.s <>.n ;(h.e <:::.ove.r P:~ge;;:or (~)in
~liqe. Pteslcle.nt:onnor.e s~nforoffiG~r
ei.to¢r ease.. to:s~c.:h
9rt&e pj:i#y fqr§>uc_h P-Lll'Pcils~.
otne.r .e.me!JI a'1Cii:.es$ a$' rna.Y 11.~;q~si.gnatea. RY ?
· ·
·
·
·
·
-
1
·· ·
l~~~~!ri~:~~°:~i~~n~ ~e~~:~~~~a~t~~~:~:~lg~t.i~i~~~ef1M°:J~:=~!vn~;#~~$:a.r~i~~w-~~B~k~J9~~.1~ei~~~-!.
<>late.Q.
24.
Miscellaneous ~
A.
Gomplete:AgJeement.
~~!-~fli!~fi~iflti~~il!~;~i{~~
~i N~l !iliPJ!$.~ \lY~iY.~r.
&o;:{~ilt;1re:-tp,po.ntest ·a P.reaoh qla-te.rrn. prcr.fl§l9n. qr 9laYs~:QHh!$.Agre1?merit§hail!J~:cJe.~:m1ed
~9.wail(~ or e,~01,J:se. ~.ue,h i>re:ash\. qn.i~~w:st;1c;:h:vv§iY.~r .Qf ~qmse.nf.sn~f(tje./ln.'wriitjn9. apd ~.~ec,~.t¢.tj.
t>y a.·9\J.ly. ~J!~hori?eq repr~r:;e.ntiilt\v1:f·.Qf~l;l~ w?.Niqg pi;ifiy. finy cqnser.it_qy ?,ny 'g§1f:tY t~; 9r WgJV~r
qf; a Pf~i;i9h by th:<? e,th¢r, w_fi¢.tber ~~pre~.$ qr ftoP.li¢~ •.~hall n~t.99n$~i(qt~ cpnsenH(;)_. w~tverpf, qr
ex~us~for any ot~er dlffer~ntorr:;lff:>§.e.qi.113.nt &rnaoh.
-Zl
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E, A!?$Jg.imJ~lit~
B.t&ket:may not ass@"I its~rJghts or obligations underthis Agteemenftoiany paityWithociftnetpfior
written C-Giti;$ent of' Fannie f0a1:i, Withctl:tt limrting the:g$neralitY .of tlieifoteg!:;;ing', BrokeY shall not·
assign.,.co:,!ist; .pr tef~r'1:1n:y r?tap:erty U$tirtg to :any in:dividtial outsideJ'.iMts·'6wrcot9anizatiorfwithoutthe.ptior wrltten:consentofFEi:r:itHe. Mae;
··
··
~:~;1~t~?trt~r-:as'$iQh
its ti9.~ts or OblJ!;i?tioM onasr·tn.1~ Agreernenftq: ~ily p~l'fy WithoU' the
~J~~~~~~~,~~:?~h~f$~ih91.n9'.oP.'9ii ~nd•.$h~l1. ih)Jrelo,tl)~ p¢h¢ft~9f:the.·stiC.¢$$S.ors:~nq:pE)nnlt
F; ttifr~(P~rly ~~11~(iqii[lrie~.
tile 1?attles do n·ot int.end the.: benefits ofthis:.Agre:etnenttct.Jhute to any·tmira party, and nothing
contained. herein shall be :constr\Jed.as creating any tight,. claim or causeh:>faction 'in· favor of :any
s.uch third pafW, c1~aihstelthet ofthe parties h~rett( · · "
(?, Op~nt,frp~l1$.•
T~is.f\9£6:~ITT-~ntm;;w be,.ex~puJe~ i'.l1aPY rwml,)~rof:qpJi,n\~rp<;1~ •. e9c;h qf\yhicfl ~h~R!:>-~·~cf~~rw~ci
t<Y Q.e, i:t.t)_ 9'19 inaJ af:\9
~~L Pf Y;'!li91i \?.1.~e.n>t9get1J~r ~?n~titM~e· .~ ~ln9!.7; ag flq.?rl\!'!Fit.
rt r~qt11?$t~d. PY
fe:i.nm¢ Mae., E~.rP.k~r wrl! prov.1q~ wnµen:or elec.trgrne C?rt1{1qc.it!Qn C>f 1t,~ c,;om.plran.qe w.rtli the Jenn~
PHhi~i\9.rt?.~ment:
·
·
H•. ~QV~rnJn~ La.w:;,.Mforney_s? ··F~~s;.
This :AgteemEH'.lt:: aM petformail'oo here:.uMer tshall 'be gcWetlled by tnE;::JaWs ;of the State of
Tex~~' ·Any ·'.f3.nd. ail. alsf>Jat~~ ~~tW¢·e:rdne parties t~:~.rcsnoot~h-~::~ett1~.d t~y. tnqt!;{al :·asrt?~ment
$hall. b.e. resolved :sol¢1Y ~nq\.e~olUstve.ly in tfie,-courts to.c;~ted: Withif.rtne·.County:.ofOallas, Te#as.
ao.th P:i:idi$s,consent-.t0.:tlie j~risdfofkm a-nd venue df·su.C.fi courts· and irrevo.csoiywaive.any.objec~.
tloos.lfiereto'.
·
··
·
·
lh My ..1m9,~n9n; $.tt>ltr~~ioh; or other proc;:e,e9ro:9.·oy'Whig~ ·or;~ part:y eit.her S,ee!{s tq $ilfe>'r¢;¢
i.ts
l'i9 ht~ µnaer ttli$ A9fe:~meill' cwnethe·r 10 :e-ootrael;:tart1,··ot: bot~};or se~ks.~ aecrar~tion ofany· ri~Ns·
ofobijgatfohs'. iJl)cier tfHs A~]'r¢~hi$r:l'f; the<p~rtie~ ~hi'.111 !):e.;;ir th~if' own' att<:;tne.~ f8~$\'~.n'Q c'Q.st$ and
expet'tse~ :in:curtea a'nti :iY.le 'parties tt~teby waiv~·afiy; right or cl$ih1 f©t lhe alN,~r<:t of',st~tytol;y
a:ttt>rneys' ·f6e:s, .includi@ but not Hmitetr th. awards pursuant to- chaptets<37 or:3s of tile Texas
Civil Priictic.e,&: RE~medies Gede.
·
·
!
l ..Survhtat
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~~!,ii\t~ll~if!;Milii!l~ii~,.~~iii1:11:~,~~~~'Aifeyi
·.~.:¢.:~pn~;ln··J~~t~re.oG~,!;>.··~o~.·a.~.a.a1Qg~~.·
Afi section heading~: ih this Agreemen'.t ~re tor :corjveriienpe or .reference
te.ntl.ed to.defin.e'.of lirmt·the;scope;6f'any' proV.isiori of this.AQ,i'eemerit
onif and are. not in~
b.~. ~qn~~rM1,q9~
Ndtw'i~h~t~n§flogJh..e, gen~rn1J··~Jes.·pfq0,r1~trµ~tl9.n •. J?9f\J F~npJ~·M~~· f,lr!c! ~rPk~l!·a.g,k.noW.l~~gr;:Jl!l~t
hp,th\P'~rtrE,iS,• w~re: given f;!JJ ·~qµl?,I c:>PPPrtYJlify tg negptjaJe.i.~oe forms.!'i9nd c:qn,diti911S''.conta(ne~ :1r1
;friis·Agteement;•qhd ·a:gree>tha.H6~·1~·e:nilfy 9fth,¢: ·~ra.fie.r of thi~. Agre.em:enfis ·oot r,~iev1;3ot'tt:Lany
lnt~rpretatl6rt.of the,tefrhs·aad •oondltlons.~6lthis.A~re:eme't::it
·-·
2?h ee'f{-niti~f1¢'
~~~:~J~~W·r~~e~i~~~1W:~~r:i:~ii~~~1~~l~~?::(n~$t3r~t~~l-tr1~%~~ii~ri~~g;~~~~~.tn·ar:ar.e ihp9fP9~t~P·. PY tM~
('~9.reem~ntn.:_rn~:a,p.§WiE;t 98¥.E.ff P.a.9~. th~. '%rn~fll~e.:.fag~ts},J~e GE!QeJ?I t~rrnl'l ~i:iq ¢Pi;i.~i~!qns, tt\~ RJi9·§~1g$
P.uid~ •. the. $µpplem$:nta,I Qoc;:u.rnt:ll'l.t?; th(? L1stmg §1;Jppl_eme11ts: ancl all pthe.r qqqµme.nts: 1r:u=.:qrpqr<:1te.d. 1.nt~ tfle
~gr:ee.me.nfpy
ret!:mm.c::e ..
!'Alternative Dispbs~itloh .SalEi'' means the sale of.:a Property· through ·amAlt(;:)mativi:r'olspositlon Sales. Channel,
•ii\tternamn~ Dlso:ositioit'sates cnanrrel''. trt~~ns ~n AliPtiqh; }i ~001 ,~atei, a Pul;>li¢'Entity-·S?IE!\ otothfiir form of disp°'"
~i'tk~ri' 4~Ui.eq .~Y f~rn.1~ 10?.:~ ~.$-an:~l~etfi~itlv\3 tcf'~tet~u sate; ih each 6~sEf·as the conte;<trequires.
·
4
"AssetManagementProvldet'' gr AMP~ me~ns a§s~t dt?ri~9e.)i'l¢.r.l:~ ptqv!det.
~Allctionn' means atre:Ventthaf WUi:he marketeg and r:n_anµg£;cf~y ·~rok~r·p["\ ,a.I} $1.ectrQnivi ·1;m1ln~ pl.<ltfor,r;n·.~nd/Qf in
t:f phy$icar yen9? secµre:cl' qyBrdi<~~. ·wnefe (a.)· p,~t-~JjJi~t ;p\ir9b1;1.~.ers;. w.llt be..off'e~eo·.~n oppPrtun\fy. ·tb: (i) vi~w ct~t<?
regar,Qltjg th~ ,Pr(jp,erti~s li$tec! ';l(itl.1 B.r.9ker; i:iM. (ii) to· §µQl1'.lit b.ltj§• to pgrq~;;i§~<~he· P~Qp,E}rtf~§' #Vting ''? pr~
t?sfabil:$he,d P.iqtjlng ,pgriod, an·~ {b.) Efrots@rwllt ta:~!ilt?te:a )?ia.le tq ''1e::higfl€l~f~\q~~r (p_ro.yiq¢(j tli~Hhei: big· s4!,)mfttE39
~ytoe hl~h!;lsttikfdef¢quals or·exfa~eds therese.rveprioe .e$t~.blish.ed, PY f9r;iri\!3 Mae).
''Auction supplement~ means the'dp:cument titled. ''Aucflqp supp1~me.0:t•· rn.ciucled in the. Sµp~1$meot\ll D(;)J~LlmE:!nfs
P:ackag:e1.a's 'rnodit(ed ana .amenae·.d from tirrie to time. The Auctlon·Stlppienlenhls. i;ippiicai5ie onlY ,to Brokers: pr¢~
· ·.
Vfdi~~'AtfotlorHetatea.set\ifce~fondeftlils A~re.ement
·
·
tj~ft(t~t~l:~~I~W~~:~~~~tJ~~~.:~~g::/~~i:,~t~,1i~ttt:~f~~~b1;:~•:Ie:~~~~!~~~:0~~~.aiuons;·set forth
~~i~:ri~~r~~;~~:ar:.:OO~i6r~i~~~~~ah;~~~:~~Y:&~:\tJk~fp~rl~~~~aJ~i~~~~:t~5:·~k.l;~~J~tlYfr:~~,il~\~~~:m
rn~n~·g~.rne.rit,9.4tie;:rtp,:~. M~n?9!hg· ~f¢;)(~r,
i.isroker· Personnel~ ll):e~1w:th19 6t9Ker.,-~l:le.th~r 9.~ n<-?~ -?l.!9h p;::ir:ty Is a,n<inoi.v.idµ~l\pr s:i p,y~l.n~~· ~ntity;, ~o~ (h.(:3, l?m~
pl¢~¢es,.ln'd~peo.d·~n.t GPriltl'lPfonrand. $ub9qntr:~9tors 9ffJr9!<e.r,.
•ea~~~·; ll'1¢~hs (p)'makln~:lai~e representations ofth.e:P[ci'p~tty; (,b) fail~r.e to m~\ntah1:tn.~ Pr~p,~~X '1,~ r.~q:~lt~-d ~Y
t!i$ REO Sales-GUiae~. (6:) failure tp s\,ibmit ff:3pcirts r:e.9~fdirtg tM:Prpperty f1$ raquired; l:ly th~ REO $ale$: $._uJi:fe~. (g)
t~llute to sut:>mif offers re'gatdirfg the ProP:~rtY,ln ·~ ·timeJYJJi~nn~r; (~), ?:ot~njr qfoi's.$l!'.Dn$, wl1fsfr f,lr~: v:~f~n' th~:f?;est
ititerest,~f·sellet, as·:ct.etetrhine'd.by F<;\nnt~.,M~e',I~. its~p.ied.}$¢retlon;''(f:}'f?iiure<to,;oorr,ip.)y..wlth'·th.e REP·:,$al~~~;G.µi,tj_e,
~riyof'the SiipplemenfaL Docurrtents; trtp;luded within1he:$up:plement~I bocurnents P~ckgg?,,,Qre\ny 9thg;irt~rm$ <:if
.. 2:3
C~u1fid'~Q~ial
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:~·,g~~~·:!!~!!!~r=~r;!~~?!~:l:!~!f!::::f~!!
;;E:~~eti\te,:.[)i:lteif m-eans:tt1e:aate,thisCA'~·~e~rrt'ent•b~'CQmes·,effe~tiv.e;:Jfi~:Eff~¢~i.V~~q:~t~rf$ i~~tjiIV~~f.i() ~g¢.tL~tt~\
;ij[RJl3Jil\Jillli'li~lilt~tflllllllfif4'~f~~-•-·~~t~l~~~1~t~~tt~:iiS:t1
~ai?:i=~i!~~h~:~:~~ ~~:.r::n:t ~W;~~~~ ~;t=:~tt~t1; ·~~~
0
~tvt~rr~9ih9/8r0ke~~;;r:ne·ans·?n· if1divith.1a'i';Who is:i'.esp:C;)rtsible'fbr'~xercis1h~ th@;rigrts::c;;onfertect:on the.Brqkef:r:sµper~
vtsrrrs, the pertormanceJa'nd.activlties\ofthtfBrokefR'ersortnetc:rrfd'gener:a11y conttollir@·and oond,11¢tin~r.tt:ieiBt6KEir!s
teal ~state\bU,$jne·ss'. the Managing Broker and. the stoker :o.f Retard may;: outare •riot requited 't\D+be; tfie;<sartr~
ihdtvJctuaL.Jtdlffeteat. tn:e Brok~f'bf'Recota m~y:cdel~at~rits 'iilana~_ementdlitiesm:va Mana91il~ srok~rv ·
·
~~~:r~~~~l:~i~ttZ~2~~~P.~~1~~';$.,· tf\ird·p~®·;µti1J~g"9 '.l?.y·tn.e E3.t().~~'ft.9"Rt9Yi9e';·pr~~·¢tW.'rna.!~t¢n~M~:9rr~R~l.r
1
~tj~~~~~lri~ri~#~~~~~l':~~~;~~sJ~M°9.·t~-~~[~r~~~:~~i~~~-:t~~-~~ ~~~~f~3"11i~ ~:a~~:R.~dli~v:~~J~¢lr~~fu~iill!f~
5
i¢'~,•. E:lffi)i'~i.~~' 9~~i~~h~~~: Pt ~~-~igfie~$-~ Ptjl51ic,Ehtify. $,i;l.JI?,
¢.otm~~ @1Jzifi9~P~.l'.ttJc flfnd.~,
r'n!"IY· 9JM.Jngluqe-..i:;,9Je~tq.:-.P~riaJn fQr prnfit antj nQn p,ront
maw
ifPurchasekcldendom'' rn~an~ R~nni~. Maeis form Qfre.al:~state,.pgrdha$e. a:dct~nciurn. a$ th.e"J~arne
be'.tt10dJ:..
fi~d. ,amen.#~<;i.: §'µppt~m~nt~~. qr~f;~tate.d:.by F!:!nn\$ Mae. frorntfrn.e fo tlrne.;sa cropy of· the Purchase Addendum is
c:iffa¢\1~1:ttolhe. Rl:t9$.?l:t?.~.:$.uJd~:
·
··
~Porchase:Agreement~· rrreans a stat\dard real estatevpurchase agreement fbrm lorthe"area in' whicn a. Property is
tbcatect · · · ·
·
·
·
"Retail. sares Channer~ rne@$Jlle. t$!$its~ffes .tn·~_rjogrl!tuiz$.'q t>Y' Fa.hri'i~r&t~.e, t9· rn~n:~9¢"·ao~tdf~.P.9~~ 9f PtoR~rti~$
d.ifoctt , tlitdfr9·n Broker Cir· ifE:ffoRer>is·assodated witttan AMi::c ttiroU 'h Brokef.in ass.bdatian with ah AMP. Retail
$~1~s·f;iaµ~~ a,W s~r~s ri{jtfo*rket~ffttfrdt19h ttf~ Ai!~r.1t~ti\l~ wi~pri~~i!i~tt s~l~§·'dti~-~ri~( ..... ·· . .. · . . . · . . . . .. .. .
~REO
Sales. .• Guide~ means lhe 8.1'.;0 Sa.le$ ~u.i9e .m.!:!.9e . av~i.lapt.e . . ~o, S.r\'.>.ker .CJ.t
iltfos:ilwww:efanriiemae:comisf/ns/hpreoibdfkeosalesadmdf {qr ~.l.l~~~~~Pr. qrrepl~c;~me!J~§it~); .?J,;s th,i:i :~§me IT!C!Y
~F!, mqtjifi'e;i;f; ~m~o:g~p:, $YPP.i.eme.p~e.~f. or (e§~atei:i l,ty f'<;InnJe. M.;;i~ ft<b.rnt.lrne t0. time. ~od 'any ~-~oif!c;m\'ll rE?l?ffe.9
gqiQ!:!P9e~pr T~qliir.t;)Jii~l:it~ prql{Jd~~ ·vi? v~r:b~r.. ~ie§fr9nl~. Qf V:/ri\te11lc,¢i:r~~PPJ1~$r.i{.)~.
i5SAMs~ ,gte~ns·the: Fann le.. Mp.e nefy.t,Qr~ of Property l\19intenanG.eJ/~noor~_ In the atc>.~er's $ervlC~f ~f,ea thafare. Litilfted by Bro.keir to p.rov.ide ptopertyma'intenanceorrepalr $eJYi~l3'With-respecH9 the P~opertle.s.
"SeiV.fc~s" rii'eans tasks. performe·ct ·or· to be performed by' Btoket under this A.9feement\~ inbludin~tthe pro.pert¥ manag_ement( listil'iQ, matketin~ and othetrelated.·seMces·.desctib'ect in the: RE.O Sales., Guide, ahdtne ·Vendot·Serv.ices.
~S.lgnatureJfage~i me90l3
th!? p~ge·iMtl.S, ~~e.cu{~tj]~y
P~1Jl!'li~M13.e/<:1n9
E3.r9.ker ~glf)g}o~fe th~ir lht~riH() a.C,C.~R~· gflo
~:e,· 't.?9µJa.c:f J?rlhE:Je.ri;n.s ~11Ci. r;,o,~~ition~ 0,f ~h.ls;A9rnt?.me.r.it: foe1;Sigri9tt.1.re;P~ge.·m~Y ,qqnsi~~ph1;t\.\!fip1~ P<:!9.es if. e,isg"
cttle.P QYJM p~r::fies ip qqµot,(3,rpaft$;
~:~u_bconttactots':
means patties tnat contract:ditecll~'With Broket·ana·partfes,that contract With' Broker's sul:lcon,.
tfa<:;tb'r.s·'to p:€ffotm SeNi&es rot which Broker is responsible unae'r this Agteement1 incliidiilg, out'iiot limit$d· t0,
vehds'rs~
·
·
,
··
,
·
·
!':Supptemenfai Documenti: m~an;§>J;l< qqc;rume,nLin<::it/9.~.d, in the;S!J.PP.lemi;;n.\~} P9czl'lmer1t\; f?,?9RC:19a·
:iso9t11em~ntat:oa.E:·umetit~,pacRa9e';.rneans-the•¢911ec~ion·of.:$,ui:?ple,men.tat.:P.O.¢uniei1t~distribtitEl.d.:~y Eannie-.Ma~
to. B.rokei"iit cor(riecti:Oh :With t~is: A$re¢rrterit1 including, b;tif rtot Urnited'lo; tl'.\'E~HFai'li'iie Mae lh'sUran€:e Reiquiretnefl15"
document~ the 1'Ho.ttsing:and Eeorit>mfo Recovery, AC:t.Bf2Q08 tD.bligp.Uons:"; docume:n~. and the- '-ilnftJrmaboti .Security
~~quir~rnen~s fof SmaU Busfnesses" documerifahd;_sdlelx ih the ca;se;of Brokers: erovtdin~ AUC.tiorHelated SerVic¢s;. ttte "Fal'ihieMae:Security Pto:cedures atfd Rulesof:Sehavior for: Auction Veridors"odcument al'l.d the "Aucli.dn SuppletTielit''; as the same: may be mt>difiet:t amended, supplemented, or .restated by· Fannie Maedrom time·to
time. ·
·
·
·
·
-.24
C~mfi.dl!lntial
·
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1
"Y~~~or::~¥Wi.~~s· ·:rti~~g$~\~gi:9@.w,1~~~i,fi?~:~t~;<t~.1~9~i~'f1 p,y;.~~W.R¢r'W'V~np~t~r~.·.~gtffi~.9,tJgrf,Wltb.:nJt~:~li\S.tMm~fil11-
<ts
·con Menfoil
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1
.i~i!~iiii~;~~~lf~\;;~~ii~i~ii~
·1:~ .Generatlns'urance. R~quire'm~nts
i!dk~;i~Ifilf~~Sfiiif!!!!~fl~!~~t~~~
.~~:&a~~iw:~~:rrtti:~!~~J~i~.~~m~.!~~~~~tt1~~ll=l~1J1~;
t!i.)
13uslness·,Aut0. Liatiflity -'-fn(MlfPrml!Y Qn.:iftte,d
{g)
Utnbreita/Excess. Uabilltv-' lnt~n#.t;mf:'lllY 9miftf3.cl
.2, Supplementa1.·and (fontHHonaUnsurance. R~:guiremelits
•• •
•
-··
~
"
•
-
'
·-
·:
•
<
Fito.fesskmal liability/Errors.and '€>missions "'"¢.ov$tlfig. lf9pilitY qlJ~to e,rroi~ qr 9.tni§~!9~s.:.ip;lfye
p:erf9rm.ance: <;)f' Servfces ll..nd.er th~ Agreeroe..ht ~ith tlrnitl> ~f n9t 1$s~ th~fl ~i;O:QJl;.QP.'Q ·P;~r
oqcurreni::e~
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'.2-. rtf2RA".1n ¢1us.ive-Ttram:Compnsition. If: vendor" nas not 'Certified ·as; a HEHAdtic.lusive
V.eni:l:6r; Jr i.s·r~qUitect to. rep-OtHnformation on·its utilization of minorities;. Womeni.and ihdiViduals
wiffl oisa6ilitiekln'tM compdsition'of'VendofPerson rt el.
'
·
·3,
Frequ~ncY,;and Reportin~/Fotmat
8;
·Sti'pplier, Reglstraiibn; PtofiieK: Wtfiin 3:0 days/ofany chaoge':O.f·p'imer.~hlp, V.~ndqr
wilt . . µpdate'. .its . prci.file to .teJi$Gl ·s.ucH
owQ~tshfp:
· ·httD'!lifahntema:e.f'tlctkfo le-ss. corn/favendof.lvencl:otdesktopilogir{ ·
tt
¢h~.oges
~'t
'·
teapi 6ompositi'6n Reportrn9:,god f.ormat: f:a.nnie M;;1r?; will ·s.P.e¢lfy :th~ reRqrfing
~~~a~;;~e:~:hl~~~~ma~tj~~i~~~@ft~~:filf;b~~:m~J;~~~e.;~e~,~g!a~~~
anri\1¢1; Q'r s~mi~ann.u~I P..a.,si~, qr·~s <!¢t~n:riinl39 [)y F~o.n:i~'M?e; V~nqqr ~gn:~es
lo: submit.cits. te$rn cpmpos(tion report within fifte.en (1$) J),u$iness' d;:i.ys·of $Q~n
.re.qu.est.
··
·
·
·4. Addi~iol)~i aep·p-rtiog. In adgitipn {pjh1;rr.epqct)ng, r('3.gufrement~ §~tf.qrtfr .~§py~; Yend@r t11<;lY
b~e t¢quited. fo t:epoi;l ~ep:ar~lely t!l)· F:annie !yla~.data O,.n tlje .Qwner.s~ip ~talps:qf ~uPP.liEf;rs 4tiJi?:ed
by· VEittdot to provtde·ttle $:ervl¢e$lo Fannie Ma,e . ·Fa.nriie:M~e'will spe.¢if.y _t,he. rnP.O.ttfng;-.forrnat
afro freqµe.ncy:pf:·sUQh aPaitl:o.n«i.I rePPrting ~~s:iu!re.men.\~. !f~e-qvel?teP; Ven~:9ry.;HJ no~!fy fi;innl,e
Mae of th~' methPcl~ PY Whf90 \JE:n~qr J.$. cplJectfi)g. $:\JR~ a.(:l:qltiqn~l rePr;>rifng .~~t~: ff!i)f:ll S!J.l';)pll~Js
emga;g:~d'b¥ Venctor to" Perform $~rv~9e~;t.Q;-..F~nnielMa.e.
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Applic!lbil"ify•.'filodiijc9p~t~~~~·9Ql~~W1~$ WU! 1.1~.:aj.'ipti$q:sge'c)D¢#Jly ·t9··th~\''(°3'oi:.fnselin~· .fncerltiv:e
e:<:rntracr· 'ptoj¢ct
Prnre,qµb'*~~'
Atr~ot~ri~i~tvenqatS-MVST~comptete·ttte
d1.ie:diligence.qµestibnnaiti:r:as provided'btFahnle Mae.
ge:qµ!r:~~".Pt~t.tl~.~;s
A ·small bti'siii~ss cShQuld implement all of t_he: praetices.Jh:~t NI.ST -i:i~sc:ribes.· as: ~a.~~cilyte,iy
'n¢(;~ssafy~ and .as.-\'hi§hly rEfoommeodetit The.s.6 are ootlin¢q ln-se·¢tr~m· 2.;ar:id a,,pf the.: N!SI
pQl)llGatioh. These and ~hy bth'e(Fcir"ihfe. MMtequir~~ practi~~S''a'(EFshown iQ. Tabi¢ { b~ElJbw.
R~f~r¢nP'~'S are provided lo .NISTIR 762:t and.· 1s.0118c :z7oo2.. Any adQIHonat'. :petlihent
ffjf9rM*iqf\Jet~ting to these. practicesHs pfoviaeia' irftli'e:nextsection.
·
Tal)f~
1
1
lntqrm<?~i~fl ~~91.!l!W P&l.'i9Y
2
3
protection
§2A:
Use·:afirewa11 tor your lnterhe.t·oonnection
~2J2
Use softWare. fir.ewalls' on each;:compu~r$yst~m (~~
provided :oy the operating system; or· .a third~pa.:rt.y ~2i3
product) ·
·· ··
Regularly. patch .operating, syst~rn$ ?nd; prc.>dtJ.Pttvlfy §2-A
tools . . ·
··
- ·
·
4
5.
6
7
8
9
p.rpyiQ~ ~ri.t}NJr1Js art~ anti~spY,'.ware
5
10.4..1
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sack1:1plh1PPrt~nt~uslri~~!?d.fl~allttfwrna.{ign
§2~P
¢ontt.ol PhY~l<,i.ql ~cpg~~·tq: ·9pmP.~~~r~ ;:trl:i;I: oej.WQ,fk ~2(6
§1Q&
~~~:~ ~~.~iJ.r~ Vlf\i:~le.~§ a;q9,~$~ pc;>rnt$ :~h~ §2:~?
§WtA~a
qompcin,~nt~;
§1'1 . A~e
Pr6\4(le se.cµtit.Y ltaihihg fet:an empr<iyees
~2-~8
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;$peclfi~, adciitr~ryal traini.ng for efm~it w.e.P
links\ po.p;;:up. · wJita.ows, r:ernova!Qi~- meQla, §~ -~d.. ~,gj
ontirie/ · Bi.1slness;
web
browsiQg, ~~~.; ~~~· <.tP:.
d-oWnlaading
softWare,
and
socfal a;T, aao
¢f1Sineerin~:.
4
Case 3:13-cv-02781-L
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§~ -7{j.:3) ·t~2
f'l!ll ciisk~ncryp~ion
E~man enccyption···rer·.sensftiVetiriforrnation·
~~f.ef' t(> ti'\~ N,1$T pup.lfq~fion {~,hgn ref~re11¢ei:; a~e· avatlapl~j {or q¢~i!s c;incl.. imp1e.ment11.ti<m
~~Ni:s~~ ..tf '.lity qf' ttii$ i.~ <::.()n~rfi(.{ic~~d in tn1; foHowtng s~¢tlq11, foJ!qw: the a!ivl~~ prov1,fed' ·in this
{!gcµl:ii~f)t (¢•,g;, ?~setc.Hspos~J}:
,Xc(,(J_iiitm;:!1 ~l'.e~cripjive C,?ui(f~ric~
Tne·: intortn~~iori below is prcMg~q tq more ft.11(y:e.ld¢idate:spe.1Jil~g$·ortn~ ~f<;>terri~ntloned r~qµited
pra¢tice5'. Wf\(3re no aaditibiil';ll.~~tail$are provided, reff;lrto Nl~Tl.R 7$21 fprfortneqp..!iaprise.
tnfqti:ft*ioJi $ectuify Policy
Am ltif¢frrj9tioosepµrity'poucy.·i~Jl;\e cd.tn~r5t~ne.of ~fl lnfi:)rro9'i~I) ~E!¢t.1dfy. p.roi;rrarn\ P.r.9vjC1i~!:J.\fle·
pver~ll o~j¢~tiV~6;1 scope, ..~od jftipoifanqe·. ofsecuriJy a_s att,.en~.b.lin"S rne0n~nfarn ft;{f itjfqriri.at\qn
~h~tin9, Tnis,p"OllBY riiµst. D.e (l_ev$foJ~eq 1 ~epr9vedJW.~e-~f,9f: rt;i~1t~9.~to~nt1 ;a,,l;icl. p1JP,!f$~¢.q tiiIJd
cornrn~o~c~t~~ . to an. emplC>.Yei:ls a1Jd re1esrl3.nl e,~terhC!I p·arti¢s> An ht.iportian~ coinpP~etW of P
security ~waren.e$s .trainih9 pfogt~rn is ih'f6rfriihg ernpl~yee~ about yow ihforroa~oil .s~c4tify
po!i¢y . and their res;ponsii:)ilities with respect to th~t. pglicy.. In. addition. to olltiiiliryg the
organization'$ security progF.;l;Tl', ilie policy should clear!Y indicate senior· mana~einentis
commitmentfo ihfottnation security,. ongoing risk assesstttenfand regular, periodic revie'N ofthe
poliq itself.
··
Passwot<f Policy
Jhedhformatfon: security poltCy-shol!lcl include Qr reference; a passw:orcl policy tnat.teqµires the
~-~
.
.
.
.
.
f) · A mldimum passWoto . fen9.th.dfeighfcharacters·
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The USE! of cornpleXcp~ssword~; utilitii:lgthree ontieJollbWIOg:'fbur 9~tegor\es. of¢har~eters:
a) Upp.etcase letters
P.) L<;>w~rC,flse letter$
c) Numbers
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5
Case 3:13-cv-02781-L
PagelD
37 334
Case
Document1-1
25 Filed
Filed 07/17/13
01/28/14 Page
Page3285ofof33114
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Case 3:13-cv-02781-L
38 335
Case
Document1-1
25 Filed
Filed 07/17/13
01/28/14 Page
PageID
7
Exhibit 4
License
Management
Case
3:13-cv-02781-L Document 25 Filed 01/28/14
Page I of I
337
Colorado The omcial state Web Portal
Division of Real Estate
Colorado Division of Real Estate
Online E-Services for Public Access and Licensee Services
Employee for :D J LLC
Trade Name
COLORADO REALTY SOURCE
Address
1225 LOGAN ST
DENVER CO 80203 US
Total Employees
RI
Back
Last Name
First Name
BANDA
DAVID
DUN RUD
THOMAS
9
License
Number
Status
EA40019806
Active
D
FA100026622
Active
Active
Middle
Name
Suffix
FOGEL
DARREN
MORRIS
EA40025787
GIEFER
JOHN
ALAN
FA100030968
Active
KIRSCHNER
DAVID
M
EA40042418
Active
POWERS
JOE
p
ER40031036
Active
POWERS
JOHN
JOSEPH
FA1313475
Active
SHEAHAN
ROSS
FA100029031
Active
ZAVERAL
JULIE
FA100032153
Active
OROURKE
I
Privacy Statement
I Disclaimer
Federal Home Page
11 State Home Page 11 Department Home Page
E-Mail the Division of Real Estate
1560 Broadway, Ste. 925
Technical Assistance:
E-mail Information Technology Section
Denver, CO 80202
(303) 894-2166 or (303) 894-2185 - Phone
{303) 894-2683 - Fax
Copyright 2006 PSI. ALL RIGHTS RESERVED. Version 1.0
Relay Colorado
(TTY (English & Spanish), Voice, VCO, ASCII, STS Assistance Numbers)
Copyright 2000-2012 PSI. ALL RIGHTS RESERVED.Version 1.4.37.645
http://eservices.psiexams.com/licensee/viewEmployee.do
8/30/2012
Exhibit 5
5533
Abilene
St, Denver, CO 80239
- HomePath.com
Case
3:13-cv-02781-L
Document
25 Filed 01/28/14
Home
Pagel
339of 2
.com
5533 Abilene St, Denver, Colorado 80239
$159,900
UNDER CONTRACT
3 Beds, 2 Baths I 2,665 sq. ft. I Single-Family
REO ID: D120SKG
MLS ID: 1242183
Solid Montbello brick ranch with a great layout, two family rooms
with enclosed patio, large basement. 2 bathrooms, attached 1 car
garage, and large fenced back yard. Excellent opportunity in a
great neighborhood. Homepath property eligible for financing.
purchase for as little as 5% down. Subject to 15 day first look
period, and investor 3 month 120% deed restriction.
Property Features
HomePath· HomePatlr
Ir.Dr>.£U:g>?
re:1cvatio11
r:::ortgur:i.·
Contact Information
Property Details
Joe Powers
Price: $159,900
Bedrooms: 3
Bathrooms: 2
Full Baths: 2
Phone: (720) 975-9705
Living Area Size: 2,665
Lot Size: 0.16 acres
Email agent
Style: Ranch
Heating Type: Forced Air
COLORADO REALTY SOURCES
Year Built: 1970
Parking Spaces: 1
1225 LOGAN STREET
Denver, CO 80203
Property Tax Roll Details
Map
School District:
Denver 1
Junior High School:
Rachel B. Noel
Senior High School:
Montbello
County Tax Roll Details
Lot Size:
6,969
Last Sale Date:
10/29/2012
Last Sale Price:
$159,758
Taxable Value:
$106.700
Total Sqft.:
2,665
Year Built:
.,.,
Falcon Park
.::..;
1970
©
si¥leet
201~\Mi&soft Cor@ation
"""""""""" ·.c.O
View larger map
"
100 m :
© 2013 Nokia
"
Rent Info
Low Rent
Median Rent
$940/mo
$1,295/mo
http://www.homepath.com/listing?listingid=40345 l 53
112112014
5533
Abilene
St, Denver, CO 80239
- HomePath.com
Case
3:13-cv-02781-L
Document
25 Filed 01/28/14
High Rent
$1.800/rno
Avg. $/Sqft/
$0.83
Page
2of2
340
Avg. Sqft.
1.483
See more
Rent estimates based on 38 comparable rental listings in a 1.0 mi radius
Copyright 2009-2012 Ren!Range LLC
http://www.homepath.com/listing?listingid=40345 l 53
1/21/2014
Exhibit 6
Broker
Information
Case
3:13-cv-02781-L Document 25 Filed 01/28/14
Page342
1 of l
?
h~lp
Portal
My Listings
Searches
My Work
Broker Information
First: ROSS
Last: SHEAHAN
Direct Phone: 720-975-9708
Tools
KAREN FRISONE Home
Account
Sign out
Office----------------MB DENVER COLORADO REALTY
1225 LOGAN ST
DENVER, co
80203
Mobile Phone: 720-425-1786
Designations:
Email: ROSS@COLORADOREALTYSOURCE.COM
[edit]
Photo·-----·----------·
URL: WWW.COLORADOREALTYSOURCE.COM
The value of informution. The power of
insight.~
6455 S. Yosemite St., Suit.:- 500
Greenwood Village, CO 80111
P 303.SS0.9576 • F 303.850.9637
·:;: 2006~2012 Metroli..;t, Inc. All rights reserved.
Metrolist:'.'; and PrimeAccess~3:· are registered trademarks of Metrolist, Inc.
Terms of Use
I Privacy
Policy
http://newmls.metrolist.com/maintenance/broker.aspx?&bid=70033&rurl=%2fsearch%2fb;..
I Fair Housing
8/30/2012
Exhibit 7
7422Case
S Quail
Cir Apt 1615, Littleton,
CO 80127
HomePath.com
3:13-cv-02781-L
Document
25 -Filed
01/28/14
1 of 2
Page344
•'!'.I
by Fannie Mae
.com
7422 S Quail Cir Apt 1615, Littleton, Colorado 80127
$139,900
ACTIVE
2 Beds, 2 Baths 11,035 sq. ft. I Condo/Co-op
REO ID: D120ZV7
MLS ID: 1228373
Spacious ground level 2 bedroom 2 bath condo in newer
community with great arnentities.nice clean quiet complex .. This
one won't last! Homepath property eligible for financing. purchase
for as little as 3% down.
How to make an offer
Property Features
HomeFath' Homerath'
rr..or..g~
Ie!lav.atlo:l
1r.ong:ige
Contact Information
Property Details
Ross Sheahan
Price: $139,900
Phone: (720) 975-9708
Bedrooms: 2
Email agent
Bathrooms: 2
Full Baths: 2
280 PLAZA DRIVE
Living Area Size: 1,035
Highlands Ranch. CO 80126
Style: Ranch
Map
HOA: Yes
HOA Fees: $155
Year Built: 2001
Tenant Occupied: Yes
School District:
Jefferson R-1
Elementary School:
Ute Meadows
Junior High School:
Deer Creek
Senior High School:
Chatfield
Subdivision:
Fallingwater
Rent Info
http://www.homepath.com/listing?listingid=40115524
9/26/2013
7422Case
S Quail
Cir Apt 1615, Littleton,
CO 80127
HomePath.com
3:13-cv-02781-L
Document
25 -Filed
01/28/14
Last Sale Date:
12/14/2007
Last Sale Price:
$93,959
Page345
2of2
Low Rent
$950/mo
Median Rent
High Rent
Taxable Value:
$109,110
$1.095/mo
$1,255/mo
Total Sqft.:
1,035
Avg. Sqft.
Avg. $/Sqft/
Year Built:
2001
1,100
$1.03
See more
Rent estimates based on 47 comparable rental listings in a 1.0 mi radius
Copyright 2009-2012 RentRange LLC
9/26/2013
10079 Silvercliff Ln, Littleton, CO 80125 - HomePath.com
Home
by Filnnie
Mae
Page 1 of 1
346
.com
10079 Silvercliff Ln, Littleton, Colorado 80125
$260,100
JUST LISTED
4 Beds, 3 Baths j 3,734 sq. ft. I Single-Family
REO ID: D1305NB
MLS ID: 1196093
MOVE IN READY. STUNNING LAYOUT AND NATURAL LIGHT
SPLIT LEVEL STYLE HOME WITH 4 BEDROOMS. 3
BATHROOMS. 2 CAR GARAGE, A PARTIALLY FINISHED
BASEMENT, AND MUCH MORE! WON'T LAST. Homepath
property eligible for financing. purchase for as little as 3% down.
Subject to 15 day first look period. and investor 3 month 120%
deed restriction.
How to make an offer
Property Features
IS{FirstLcok- Homefuth'
11 days left ~';g;t~~;j;,"'
Property Details
Contact Information
ROSS SHEAHAN
Price: $260, 100
Bedrooms: 4
Bathrooms: 3
Full Baths: 3
Phone: (720) 975-9708
Basement: Yes
Living Area Size: 3.734
Email agent
Lot Size: 5227 sf
Roof: Composition Shingle
Utilities: Gas
280 PLAZA DRIVE
Parking: Garage - Attached
Sewer Type: Public
Highlands Ranch. CO 80126
Year Built: 1993
Parking Spaces: 2
Map
N
Property Tax:
S2,465
School District:
Douglas RE-1
Tax Year:
2011
Elementary School:
Roxborough Prifintenned.
Junior High School:
Ranch View
Senior High School:
Thunderridge
Subdivision:
Executive Homes At
Roxborough
'.u.
j,;
~
ro
~
"'
0.:
i;,.
Lot Size:
5,619
Taxable Value:
$191.406
Total Sqft.:
3,734
Year Built:
1993
'O
~
,a~
\ .. ~
"'t:
sqo,~.et
100m
~!!{ 2013 Microsoft Corpo'ra!on
i&l 2013 Nokia
View larger map
611212013
Exhibit 8
10079 SILVERCLIFF Ln
Littleton, CO 80125
County:
Neighborhood:
Douglas
Roxborough Park
MLS#:
List Date:
Sold Date:
Under Contract Date:
CDOM:
Concession Amount:
Status Conditions:
Has HOA:
INV Blackout Ends:
Title Company:
Financial Terms:
Earnest$:
Seller Type:
Legal Desc:
1196093
06/07/13
10/22/13
09/05/13
384
$0
None Known
No/$0
025593
Selling Broker ID:
MODERN REAL ESTATE
Selling Office:
Sold Term:
FHA
Concessions:
None
Broker Closing Comments
Buyer Broker Paid By:
Total Beds:
Total Baths:
Full Baths:
3/4 Baths:
Half Baths:
1/4 Baths:
Rough-in:
PSF Above Grade:
PSF Total:
PSF Finished:
Upper Sqft:
Main Sqft:
Lower Sqft:
Above Grade:
Basement Sqft:
Total Sqft:
Finished Sqft:
Other Finished SqFt:
Date Measured:
Measurement From:
4
No
Appliances:
Flooring:
Interior Features:
Laundry Availability:
Fireplaces:
Exclusions:
Site Type:
Status:
Sold
List Price:
$246,800
Sold Price:
$246,900
Accepting Offers:
Tax ID:
Taxes:
$2,465
Cash, Conventional, FHA, VA,
$2601, ASSURED TITLE AGENCY
Bank/GSE
LOT 18 BLK 2 EXECUTIVE HOMES AT ROXBOROUGH VILLAGE 3 0.127 AM/L
Type:
Detached Single Family
Architecture:
Year Built:
1993
Anticipate Yr Complete:
Heat Fuel:
Gas
Heat Type:
Forced Air
Cooling:
Other HVAC:
HVAC Detail:
Construction:
Frame
Exterior:
Roofing:
Composition Shingles
Sold Information
3
1,867
1,867
3,734
1,867
Bsmt Type:
Subfloor:
Bsmt Finished:
% Fully Finished:
06/07 /2013 Bsmt Ceiling Height:
County Records
Style:
2 Story
Builder Name:
Model:
Construct Details:
$132.24
$66.12
$132.24
School District:
Elementary:
Jr High/Middle:
Sr High:
Douglas RE-1
Roxborough Pri/Int
Ranch View
Thunderridge
Full
Yes
none
Walk Score: 60~-I:
Faces:
Zoning:
POU
Lot Size:
Acres:
Incorporated:
Primary Access:
Site Features:
Exterior Features:
Views:
Distance To:
Bus
Light Rail
Other
Water Sources:
Sewer:
Rights:
Parking & Vei1icle Information
Total Spaces:
2
Amps Available:
~
~
Garage (Attached)
2
Well Type:
Well Depth:
Issued Permit #'s:
Multiple HOA's:
No
HOA/Mgmt Name:
Contact#:
Website:
HOA Type:
Fee:
$0
HOA Includes:
Covenants:
Partial Owner Type:
Owner Type:
Features:
Dimensions
Permitted Well Uses:
Water Tap Fee:
HOA/Mgmt Comoany 2
HOA/Mgmt Company 3
Available Week(s):
Remarks:
Public Remarks
MOVE IN READY, STUNNING LAYOUT AND NATURAL LIGHT SPLIT LEVEL STYLE HOME WITH 4 BEDROOMS, 3 BATHROOMS, 2 CAR GARAGE, A
PARTIALLY FINISHED BASEMENT, AND MUCH MORE! WON'T LAST. Homepath property eligible for financing, purchase for as little as 30/o down.
Subject to 15 day first look period, and investor 3 month 120°/o deed restriction.
Broker Remarks
Highest and Best due 8/27 /13 @11AM MST***ALL offers must be submitted on www.homepath.com you must download occupancy cert and
addendum from MLS doc box prior to submitting it on the site. You must also insert the below verbiage to the additional provisions section of
the state contract to buy /sell or the seller will not consider the offer: Must add the following language to the state contract under additional
provisions." 1) Pursuant to Section 28 of the Real Estate Purchase Addendum, this document is subject to all terms and conditions set forth in
the Real Estate Purchase Addendum. 2) Purchaser to pay $150@closing for rekey. 3)Sold strictly as is any pre closing repairs shall be added
to the purchase price or escrowed by buyers lender 4)No Garage Remotes or Mail keys will be provided. Call Kelly for Homepath financing info
303 907 1289 or email kfogel@castlecooke.com
Directions
C 470 TO S WADSWORTH BLVD LEFT ON WATERTON RD RIGHT ON N RAMPART RANGE RD RIGHT ON VILLAGE CIRE W RIGHT ON TELLURIDE PL LEFT
ON WESTSIDE CIR STRAIGHT ONTO SILVERCLIFF LN TO PROPERTY.
Listing Ag ent/Offlce
Name:
The Powers Team
Office Name:
MB DENVER COLORADO REALTY
Office Phone:
720-975-9700
Email:
theteam@coloradorealtysource.com
Phone:
720-975-9711
Mobile:
Agent Fax:
Office Fax:
720-975-9701
Co-Listing Agent/Office
Name:
Office Name:
Office Phone:
Email:
Phone:
Mobile:
Buyers Agency:
Transaction Broker:
Variable Comm:
Listing Contract:
Additional Info:
Possession:
Submitted Prospect:
Limited Service:
Expiration Date:
Showing Phone: 303-573-7469
Showing Email:
Showing Notes:
Broker-Only Report. Not intended for public display.
3.00
3.00
No
Exclusive Right
BUYER TO VERIFY ALL INFORMATION
No
No
Exhibit 9
Page102
2 ofof2 114
PagelD
43 351
Case
3:13-cv-02781-LDocument
Document251-3Filed
Filed
07/17/13 Page
Case
3:13-cv-02781-L
01/28/14
PageID
Ii~ FannieMae
lnlerna1ion11l Pi11za II
14221 D11llas P;ukway, Suite 1000
Dallas, TX 752.54·2911)
Karen Frisone
K.O. Real Estate
9035 Wadsworth Parkway
Suite 1000
Westminster, CO 80021
RE: Fannie Mae Master Listing Agreement between Karen Frisone and Fannie Mae dated
May 1, 2011
Dear Karen Frisone:
This letter constitutes notice that pursuant to Section 7 of the above referenced Fannie
Mae Master Listing Agreement, Fannie Mae is terminating the Master Listing Agreement
effective as of May l, 2011.
This letter further serves as notice that on the effective date of temiination, June 6, 2013,
Karen Frisone must cease all activities on affected Properties and, within five (5) days of
termination, pursuant to Section 7C of the agreement, return all work in progress to
Fannie Mae. Pursuant to Section 704 of the agreement, Property Listings in Offer
Accepted status are not affected by the termination of the agreement and all Services
relating to the Properties in Offer Accepted status shall be performed until completed in
accordance with the terms and conditions of the agreement or until the Property Listings
are terminated.
Exhibit 10
Karen Frisone
From:
Sent:
To:
Subject:
HomePath.com Account Information <noreply@homepath.com>
Tuesday, February 05, 2013 3:31 PM
Fannie Mae MLA Renewal
HomePath~com
URGENT UPDATE: Fannie Mae identified an error in the MLA submission process we undertook last month.
BROKERS NEED TO PLEASE FOLLOW THE SAME PROCESS AGAIN and sign the new cover page and
signature page in step 5 {below). We sincerely apologize for our error and any extra burden it may cause
you. There is no change to the actual MLA other than details on the cover page and signature page.
Dear Karen 0. Frisone,
Fannie Mae has updated the Master Listing Agreement (MLA) used for its broker network. To facilitate efficient and
timely execution of the new MLA, Fannie Mae has implemented a new electronic process utilizing Home Path.com.
Please click here to access your existing HomePath account and follow the basic steps outlined below to complete
the new MLA renewal process:
1. Once logged in to your HomePath 'Account' section, click on the 'Master Listing Agreement' Tab.
2. In 'Step 1' of the online process, you can 'Download' the Fannie Mae MLA (in PDF version) for your review.
Once you have downloaded the MLA you may choose to logout of your account in order to spend the
necessary time to review all the terms within.
3. Once you've read the MLA and are ready to agree to all the terms, you may log back in to your HomePath
account (note account info above), click on the 'MLA' tab and click 'Continue' to proceed to 'Step 2' in the
online process.
4. In 'Step 2' you will need to verify your primary contact information.
5. In 'Step 3' you will be required to download the Fannie Mae MLA signature pages, complete all the relevant
fields, sign, scan, and 'Upload' the signature pages to complete the process.
Executing the new MLA using HomePath.com must be completed before February 15, 2013.
Questions?
Please direct any questions regarding the MLA document to your business legal representative.
For any technical issues with using the online system on HomePath.com for execution of the MLA only, contact 1866-218-4446.
For all other questions, please contact vendor desk@fanniemae.com.
1
Exhibit 11
Karen Frisone
From:
Sent:
To:
Subject:
Vendor Desk <vendor_desk@fanniemae.com>
Tuesday, July 16, 2013 12:03 PM
Fannie Mae: Action Required - Counter Signature Information
To view this email as a web page, go here.
Thank you for completing the recent online MLA renewal process using HomePath.com. This message is to
inform you that we have appended the signed Fannie Mae signature page to your MLA document for your
records.
Click HERE for the FM Counter Signature Job Aid
For any issues relating to HomePath.com access or MLA document download, call 1-866-218-4446. Please
contact Vendor Desk for all other issues.
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Please do not reply to this
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Exhibit 12
Cover Page
This Fannie Mae Master Listing Agreement (the "Agreement") is entered into by and between Fannie Mae, a federally
chartered corporation ("Fannie Mae" or "Seller"), and the party identified below as "Brokerage Firm" ("Brokerage Firm"
or "Broker'). Capitalized terms that are used in this Agreement, but not defined contextually, will have the meanings
ascribed to them in Section 25 (Definitions).
Effective Date of Agreement:
TRAX/VENDORID: TR137415X
Brokerage Firm Information
/{a(, " O. fr- /f;;f)IJ ~
Name of Entity: K.O. Realty, Inc dba K.O. Real Estate
Name of Individual signing on behalf of Entity:
.
Title:
Address:
.
f
Brokerage Firm is a (Check one):
KAREN O.
.a»
¥
Managing Broker - Owner
FRIQ"9~e Pro~rietorship
9035 Wadsworth Pky STE 1000 Westminster CO 80021
Fax:
422-3888
303-422-4544
Email:
Telephone:(303)
12]'corporat1on
D Limited Liability Company
D General Partnership
D Limited Partnership
D Other (Describe"------------~
Brokerage Firm should receive legal notices under this Agreement
(check one):
State in which Brokerage Firm's Business Entity was formed:
CO
[Z]Yes 0No
Brokerage Firm's Federal Tax ID Number.
84-2465317
Assigned Point of Contact Information (ONLY if dlf-ferent from
Office Managing Broker's Information (ONLY If different from
individual signing on behalf of Broker-age Finn)
Individual signing on behalf of Brokerage Firm)
Name:
Name:
Title:
Tille:
Address:
Address"·
Telephone:
Telephone:
Fax:
Fax:
Email:
Email:
Assigned Contact should receive legal notices under this
Office Managing Broker should receive legal notices under this
Agreement (check one): Oves 0No
Agreement (check one): 0Yes 0No
Broker of Record Information (ONLY If different from
Fannie Mae's Point of Contact:
individual signing on behalf of Brokerage Firm)
Vendor Desk
Name:
Name:
Title:
Title:
Address:
Address:
13150 Worldgate Drive
5H-6W/01 (OB2)
Herndon, VA 20170
Email:
Aareemenl Notificatioos@fanoiemae.com
Telephone:
Fax:
Email:
Broker of Record should receive legal notices under this Agreement
(check one): Dves 0No
[SIGNATURE PAGES FOLLOW]
2
cun11demial - Feb .5, 2013
Signature Page (1 of 2)
BROKERAGE FIRM: K.O. Realty, Inc dba K.O. Real Estate
~
Signatureby:
·"
Name of Authorized Signatory:_K_a_re_n_O_F_ris_o_n_e_ _ _ _ __
Title: Managing Broker - Owner
Date: 02/06/2013
3
CunJidcntinl - Feb 5, 2013
Signature Page (2 of 2)
FANNIE MAE
3900 Wisconsin Avenue, N.W.
Washington, DC 20016-2899
Signature by: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Name of Authorized Signatory: _ _ _ _ _ _ _ _ _ _ __
Title _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Date:.~-------------------~
Vendor ID:
4
Cu11fiuc11thtl - Fc;b 5, ZOJJ
FANNIE MAE MASTER llSTING AGREEMENT
Sl9m1:turo Paga (2
or 2)
By th<t ~gn.alures oif th<tir duly .aullioriled representat.Mls befow. oom parties ackn-ovA~dge- the va&u<t and s.ufficleney of
the co-ns.idoratiOn for entering in'o this Agreement and a.gre<!i to be bound by its termi>.
FANNIE MAE
3900 WisC()nsln AVM!J@, N.W.
WaShEngt<:m. DC 20016-2399
Slgn:iMe by~ _ __.,....~....,............- - - - - - - - - - Name of .A!iA~GiSigrn.:i
Tilfc: Vie-cPr $' n
0
Date: July 11, 2013
Vendor ID: TR137415X
Exhibit 13
Fannie
Mae
exec fired amid kickback
scandal
Case
3:13-cv-02781-L
Document
25- latimes.com
Filed 01/28/14
Page 362
1 of2
latimes.com/business/la-fi-fannie-mae-fired-20130614,0, 1501562.story
latimes.com
Fannie Mae exec fired amid kickback scandal
James Tiegen, who oversaw Irvine and other regional offices, was not suspected of
criminal behavior, according to two people familiar with his departure.
By E. Scott Reckard, Los Angeles Times
6:18 PM PDT, June 13, 2013
Fannie Mae has fired the executive who headed its Irvine office amid a federal investigation
into alleged kickbacks from real estate brokers.
advertisement
One former employee of the home-finance giant has been indicted on charges of soliciting illegal
payments from a broker, and another former worker has alleged that such conduct was common at the
office. Federal investigators are trying to determine whether the alleged corruption extended to other
employees, according to two people with knowledge of the probe.
James Tiegen, a vice president who oversaw Irvine and other regional offices where foreclosed
properties are sold, was not suspected of criminal behavior, according to two people familiar with his
departure. The people were not authorized to comment publicly and spoke on condition of anonymity;
one said Tiegen was fired for "performance issues."
The Times attempted to contact Tiegen, who lives in Coto de Caza, by phone and electronic messages
starting last week but could not reach him. His phone line at the Irvine office was disconnected, and
employees there said they had no forwarding address for him.
Fannie Mae officials said they aren't allowed to comment on personnel and legal matters. But the
taxpayer-owned company, which was bailed out during the financial crisis, said in a statement that it
does not tolerate wrongdoing, and has "controls and procedures in place in order to combat fraud."
"When we determine that our controls can be strengthened further, we implement changes," the
statement said. "For example, we have changed our property assignment process so that our sales
associates will not make assignments to brokers, reducing the potential for conflicts of interest."
The procedural overhaul is intended to curtail the likelihood of kickback demands by having a Fannie
Mae squad in Dallas assign listings of foreclosed properties to the brokers, who earn commissions by
selling them.
The assignments previously had been handled by foreclosure specialists in the regional offices,
including more than 50 who worked in the high-rise near John Wayne Airport where Tiegen had
overseen operations. The specialists will continue managing foreclosed properties and approving sales
but will no longer assign listings.
One former specialist, Armando Granillo of Huntington Beach, was arrested March 5 in an early-
http://www.latimes.com/business/la-fi-fannie-mae-fired-20130614,0,2827425,print.story
9/25/2013
Fannie
Mae
exec fired amid kickback
scandal
Case
3:13-cv-02781-L
Document
25- latimes.com
Filed 01/28/14
Page 363
2of2
morning sting near MacArthur Park in Los Angeles.
Court documents said he was clutching $11,200 in cash as he stood in a Starbucks parking lot - money
he allegedly had demanded in return for providing foreclosure listings to a broker, who alerted federal
authorities. Granillo has pleaded not guilty and is free on bail pending trial, scheduled for August.
An affidavit filed in federal court said Granillo had told the broker that kicking back a slice of
commissions on foreclosed properties was "a natural part of business" at Fannie Mae.
Another former foreclosure specialist in Irvine, Cecelia Carter, also described the kickbacks as
widespread.
Carter alleged in a lawsuit last month that she was fired for trying to expose the involvement of several
employees, including Granillo, in such schemes. One of her attorneys, Peter Whelan of Washington,
said Fannie Mae had not yet replied to the suit.
The investigation continues, headed by the U.S. attorney in Los Angeles, working with agents from the
inspector general of the Federal Housing Finance Agency, according to two sources who requested
anonymity because they were not authorized to speak publicly about the investigation.
The accusations, reported two weeks ago by The Times, touched off a flurry of concerned memos to the
staff from Fannie Mae officials, including Chief Executive Timothy J. Mayopoulos and Brandon
Lawler, director of foreclosure sales in Dallas, according to Fannie Mae employees and lawyers familiar
with the case.
One memo obtained by The Times, from Fannie Mae Chief Compliance Officer Nancy Jardini, warned
employees that the company "defines fraud as an intentional act or omission that affects, or could affect,
Fannie Mae, and that is done for the purpose of securing any improper gain or benefit for Fannie Mae or
anyone else."
Carter said Fannie Mae officials altered findings to make themselves look better in reports that
ultimately were passed up to Congress. She said she began alerting Tiegen to kickbacks as far back as
2009, and that she identified Granillo as involved in 2011.
An internal Fannie Mae investigation said it could find no evidence to support her allegations.
scott.reckard((iJJat imes. com
Copyright© 2013, Los Angeles Times
http://www.latimes.com/business/la-fi-fannie-mae-fired-20130614,0,2827425,print.story
9/25/2013

by Fannie Mae - California Real Estate Fraud Report

Transcription

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