Subject: Re: HELPP follow up
From: "Neil Callahan" <[email-masked]>
To: <[email-masked]>
Cc: "Devon Archer" <[email-masked]>, "Eric Schwerin" <[email-masked]>, "Katie Dodge" <[email-masked]>, "Hunter Biden" <[email-masked]>
Date: Sun, 3 Mar 2013 16:07:37 -0500

Hey Rob,

Both 10am and 2pm work for me tomorrow.

The long and short of it is it's a great idea/structure that this guy Ron
has been working on for a few years.

Risks are that it's never been done before and they relying on an exception
basis vs a general rule change to make it happen.  The GP capitalization is
high, but we could knock that down, but there requires to $2-6m of capital
to just pursue a deal in earnest without any guaranteeing that a deal will
happen.

Upside, if you could do one or more of the mortgage pools and you had a
piece of the GP, you'd make alot of money.  The structure is sound and has
been done before - it's basically buying distressed debt, but the FHA take
a huge haircut to benefit the local municipalities.

We'd want at least a 1/3rd of the GP for all pools.  Question is can we
capitalize the GP?  Get "good" money interested?  Help on policy?

Worst case we find them "good" money to fund the pools as a broker dealer,
but that is down the line and I am not sure how lucrative that would be
since this would be a debt product, so lower placement fees.

Best,

Neil

On Sun, Mar 3, 2013 at 3:31 PM, Rob Walker <[email-masked]>wrote:

> **
> Just got off the phone with Gen Clark. He just told me to tell him/them
> what we need to make this work. He is flying out tomorrow to oklahoma city
> so he won't be in NY, but thinks he can be on a call around 2pm est of that
> works for you guys. Can we all talk early tomorrow abt what, if anything,
> we'd be comfortable with doing....and maybe bring devon and Eric up to
> speed? Does 10am work? Just don't want to string them along too much.
> Sent via BlackBerry by AT&T
> ------------------------------
> *From: * Neil Callahan <[email-masked]>
> *Date: *Sun, 3 Mar 2013 15:11:02 -0500
> *To: *Ronald Meer - BCP<[email-masked]>
> *Cc: *<[email-masked]>; Rob Walker<[email-masked]>;
> Hunter Biden<[email-masked]>; Devon Archer<
> [email-masked]>
> *Subject: *HELPP follow up
>
> Hey Ron,
>
> I hope you are doing well.  Thank you for the detailed overview of the
> HELPP concept and venture this past Thursday.
>
> We do think the strategy can produce significant returns and can be
> expanded to multiple housing pools once the first one gets off the ground
> and executes successfully.  Executing the first pool is the most difficult
> and bears lots of risk and requires an all hands on deck type of approach
> to get it done.  We continue to see counter party risk and the reliance
> upon exceptions being granted on a case by case basis to "sell" the pools
> as being significant challenges to the targeted pool and any subsequent
> pools.
>
> We would be interested in discussing how we could participate in the GP
> (for the targeted pool and subsequent pools).  We could be very helpful in
> securing the initial GP capitalization, attracting investors into the
> housing pools that meet the proper optics, and helping navigate government
> at multiple levels.
>
> Rob mentioned that General Clark was in New York this week.  We could get
> together tomorrow or Tuesday to discuss.  (Monday 11-1pm EST or 2-4pm EST
> or Tuesday anytime before 4pm EST works.)
>
> Let me know if any of these times work or please suggest an alternative.
>
> Best,
>
> Neil
>
> --
> Neil Callahan
> Rosemont Seneca Partners
> 401 Greenwich Street, Suite 300
> New York, NY 10013
> 917-945-9516
>

-- 
Neil Callahan
Rosemont Seneca Partners
917-945-951