Effects Of Rms On Our Daily Weekly Calls

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As RMS has indicated before, based on our observations and more importantly on the review of assets during our weekly calls with Altisource, RMS believes on many of these assets, the condition or location of the property is a primary driver behind not only the large reduction in list price, but ultimately a sales price that will be well below the initial list price, all of which contribute to extended days on market and an increase in carrying costs incurred by the Trust. We believe a contributor to this relates to the Altisource process where the listing agent is not always local to the property and may not have not personally visited the asset to assess the condition and the location, has not driven by the comps and generally may not be familiar with the intricacies of different neighborhoods in the area. Lastly, while RMS believes it is important when listing REOs to list above the identified asset value, it is equally important to recognize when a list price is too high and to make appropriate and timely adjustments to avoid additional days on market and days in REO. Doing modest reductions, which is an Altisource philosophy, when indicators (e.g., low offers, lack of offers, no showings) reflect a larger adjustment is needed increases REO timelines and carrying costs. List price continues to be a frequent topic during our weekly target assets and RMS raises these issues on an asset-level basis, reviewing activity, property condition, feedback and offers (or lack

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