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Three-Step Process for Qualifying to Bid on Structured Transactions (FDIC)

Understanding the qualification process to bid on structured transactions is vital for prospective bidders. The process involves three steps: completing necessary documents such as the Pre-Qualification Request Form and the Purchaser Eligibility Certification, along with demonstrating financial strength and operational expertise. Bidders must also outline their team structure, providing details about funding capabilities, asset management experience, and portfolio management plans. Adhering to the qualifications timeline ensures that bidders are prepared and informed for submission deadlines and professional evaluations.

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Three-Step Process for Qualifying to Bid on Structured Transactions (FDIC)

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  1. Qualifying to Bid

  2. A Three Step Process Qualifying to Bid Pre-Qualification Bidder Qualification Transaction Qualification Pre- Transaction On-going Transaction Specific Transaction Specific

  3. Pre-Qualification Process Step 1 • To be determined to be pre-qualified, prospective bidders must successfully complete 3 documents - Pre-Qualification Request Form FDIC Qualified! Purchaser Eligibility Certification Bidder Contact Information Form

  4. Prospective bidders may be required to meet additional criteria to receive further information on a specific Structured Transaction. Transaction specific qualification is required when a specific sale is in process. For each Transaction: Structured Transaction Qualification Request Form. Purchaser Eligibility Certification. Structured Transaction Confidentiality Agreement. TransactionSpecificQualificationStep 2

  5. Qualifying to BidStep 3 QUALIFICATIONS S t r e n g t h Cash to Close Financial Strength E x p e r t i s e C a s h Expertise

  6. Provide a diagram and identify your proposed team structure. Lead Bidder. Private Owner. Servicer. Asset Manager. Investor(s) providing >25% of total funding. Include Minority and Women-Owned entities. No changes to the identified team (lead bidder, servicer, asset manager and key investors). Level 1 SectionProposed Acquisition Structure

  7. Bidder Evaluated in 4 areas 1) Financial Background Credit rating. Audited financial statements. Dunn & Bradstreet Reports. 2) Funding Amount and availability to close and fund on-going transaction obligations. Cash and cash equivalents. Bank statements, commitment letters, documentation of callable capital. Other liquidity sources. Level 2 SectionBusiness Matters

  8. Bidder Evaluated in 4 areas (Cont.) 3)Asset Management and Servicing Servicer rating reports. Operational experience of management officials and key employees. Sub-servicer relationships. Experience with default management & loss mitigation. Current servicing portfolio. Disaster recovery plans. Data security. Call center operations including capability to deal effectively with non-English speaking borrowers. Level 2 SectionBusiness Matters(Cont.)

  9. Bidder Evaluated in 4 areas (Cont.) 4)Portfolio Management Plan Asset management planning. Timeliness & schedules. Involvement of small, minority and women owned and local businesses. Overall project strategy. Demonstrating transition, control, direction, and exit. How you will earn value. Operational capacity. Roles & responsibilities, key operations/functions. Servicing issues. Call center operations supporting non-English speaking borrows. Loss mitigation procedures. Disposition and marketing strategy for assets. Level 2 SectionBusiness Matters(Cont.)

  10. Qualification Timeline • Timeline/Events (generally) • 6 Weeks Before Bid Date. • Prospective Bidders Conducting Due Diligence Receive Bidding Instructions from Financial Advisors. • Establishes due date for Bidder Applications. • Provides instructions to submit Applications to a secure FDIC-designated mailbox. • 3 Weeks Before Bid Date. • Bidders submit Bidder Application & Supplemental Documentation. • 5 Days Before Bid Date. • Bidders notified by Financial Advisor on FDIC qualification determination.

  11. Only way to be informed of structured sale announcements. Its EASY. Its – Why Get Pre-Qualified?

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