FAQ

What makes Paradigm different? Why is the offering needed?

Competition is the well-spring of innovation!

Paradigm is a pure real estate play! We are a market-driven real estate solutions provider thinly disguised as an outsourcer or aggregator.Validation of our philosophies and how we intend to "change the how" is sometime in the future. Given the excess inventories of the next few years, many competitive alternatives may be justified and we believe that the time is right for a return to real estate basics.

Paradigm does much the of the same things that our competitors and Bank direct clients do—we do it with a more selective group of brokers who have demonstrated long standing service and involvement in the industry OR are newcomers who we have carefully tutored and mentored and have the "fire in the belly" to succeed against all odds. Not all of our brokers are 20 plus year veterans, but all are committed, area market specialists who for the most part, have no other source (s) of income. Moreover, we expect to "turn on its head" the traditional method of finding only Seller's agencies to handle REO listings. The best combination is an experienced Seller's agency with a dynamic Buyer's outreach that sells a high percentage of in-house listings. Nothing succeeds like success. Because we are a real estate driven company, we intend to find ways to mirror the market. In that respect, we expect to be a 7 day a week operation. We expect to handle the business of our clients in a uniform and consistent manner. Virtually any one of our Asset Managers can list a property, counter an offer, reduce a list price, and/or accept a contract regardless of the client and the client rules. Uniformity eliminates confusion. With the utilization of developmental e-technology for document issuance and receipt, we expect to shave 3-5 days from the cumbersome counter-offer process. These are only two enhancements will which assist us in our mission to Accelerate the Speed of REO.

Our answers are largely taken from the market and from our local experts, the thousands of broker-partners who make the largest contribution to any sale.

Why do I have to pay $1,000 to join (if accepted) and re-certification fees?

Having spent a career managing bad loans and selling foreclosures—- at the Client, Outsourcer and Local Broker level we know about the narrow margins remaining after discounted commissions. We also know the long list of responsibilities of local REO brokers.

Paradigm is committed to compensation commensurate with the job. We believe in fair pay and although there is an abundance of work, we know of few REO brokers who are unjustly enriched.

Many broker-partners have experienced the effect of reduced commissions offset by higher volumes. Every broker-partner should carefully assess the net contribution made by each client. Simply stated: some business is just not worth having."

Moreover, as a distributor of business, we know from experience that when we fail to leave "skin in the game" for everyone in the product or service chain, we often lose some of our most competent vendors. Compare our $1,000 subscription fee versus some of the higher referral fees changed by our competitors Do the math! Paradigm leaves substantially more of every commission dollar with the brokers who created the sale. As a Company, we stand against the trend of fee compression which has resulted in some Outsourcers charging a referral fee as much as 1/2 of the listing commission. Moreover, Paradigm does not dictate what our broker-partners are obligated to pay coop agents. That is a matter of broker choice and local custom. Broker-partners who do not enjoy the cooperation of their MLS cooperative sales agents will likely not represent Paradigm and its clients.

Local REO brokers are the best buy a Seller will ever find! We believe that ground level broker-partner support will allow us to provide a higher level of certification and risk avoidance for our clients while not taking away from broker commissions.

What are acceptance requirements? Does anyone with $1,000 get accepted?

No, not every broker will be accepted. First we expect that our network brokers will work with us because our business is profitable for them:our systems, rules, and processes make sense. We collect and require only the amount and quantity of information necessary to manage our business. We expect that our processes make life easier, not more difficult. And we expect that our Client-partners are not the source of undue delay or confusion.

Experience is usually the key to considered for REO work However, we have learned over the years that novices often bring enthusiasm and new ideas which form the lifeblood of a dynamic organization. In that regard we will offer untested REO brokers or agents an opportunity to work with us based on their success and experiences as a residential broker. Broker and agent partners must maintain membership in NAR, state and local boards and the local MLS.

We especially have room at the table for those broker and agent partners who are renowned for their sales achievements. Additionally, broker-partners must provide evidence of Professional Liability Insurance coverage with a minimum of $500,000 ( E & O Insurance), suitable office equipment, technology and cell phone access to conduct business.

A recommendation from one of our existing broker-partners may also be useful. Assignments are delivered in a variety of formats but generally, our desired broker-partner has home and office Internet access and Internet capable mobile technology.

Management is committed to training, coaching and mentoring those broker-partners who find that helpful. Paradigm is committed to serving emerging markets as well as established markets. We expect to partner with both the NAHREP and NAREB to offer enhanced opportunities for their members to learn the REO business (if they are new comers) and to serve their own communities.

While Paradigm has and maintains certain standards, we are not an elitist organization. There are a number of good training and certification programs for those brokers or agents just entering the REO field. And our staff is here to demystify anything that appears confusing or novel.

What constitutes a territory?

We will always have more than one broker-partner in an area. We allow the broker-partner to define his/her own service area. There is no geographical maximum distance of office to property assignment. The essential question is : can and will you reasonably represent the property and the needs of the Seller? Given the cost of gasoline and other deliverables, experienced brokers decline remote assignments (as too far to service). Also, we expect you to access MLS Services that cover the area where the property is located.

Is there a maximum caseload?

No, Paradigm will not artificially limit your case load with us unless service delivery issues arise or as a result of quality control assessment. If you fail to maintain compliance with our requirements, then your caseload may be reduced and even eliminated.Case load is, of course, a function of client assignments to Paradigm. Our Company philosophy is that "everyone deserves a bit at the apple".

Will you automatically re-assign unsold listings at the expiration of 90-120 day listing period?

NO! An emphatic NO! Paradigm is committed to "right pricing" recognizing that overpricing costs everyone time, energy and money. If you are provided a hopelessly over priced listing in spite of your pricing opinion, it will not be taken away simply because it is unsold. Moreover, we provide a report card to clients which addresses this problem. We ask brokers to hold firm on your value if asked to re-evaluate unless you genuinely feel it was overstated or as the result of new information. We do not engineer values simply to solve a variance.We expect your values to be carefully determined and as the result of your own independent work product. We do not want a hint of artificiality or collusion.

In a real estate market as diverse and complicated as that of 2008, we would be surprised if everything always lined up within some neat, rule of thumb. In these cases, we expect our lender-partners to have someone on their staff empowered to make decisions that simply are outside neat, established parameters o to have delegated that responsibility to us.

Will I ever lose a listing?

Yes, unfortunately you will. Assets sometimes go to auction, are repurchased or redeemed. You will lose all of your business for unlawful conduct, failure to honor our service delivery expectations, double-dealing , and/or unethical behavior.

What about funds advanced on behalf of the client?

What a nightmare this has become.

Paradigm will guarantee to reimburse our broker-partners, dollar for dollar, for all expenses either generally or specifically authorized and submitted to us in a timely fashion. We will not hide behind exceptions or red tape. We expect to use Spectrum Field Services for all normal property related mainetance activities except for rekeying the property on vacancy. That will always remain a broker-partner responsbility. To mitigate losses in this area of expense reimbursement we all need to work together to understand and comply with reimbursement requirements. You will never be asked to pay for a service so that you can receive part of the money advanced on behalf of your clients.

What about "gift giving?"

Exemplary service is the gift we value most. Please do not jeopardize your business relationship with us and the integrity of our employee-partners.An occasional gift of chocolates, or a desk accessory, with a value of less than $10 is acceptable. And, at the holidays, a basket of cookies is appreciated by everyone. If you know of an employee of Paradigm who has approved a different gift policy for themselves please let management know.

Will I be working with Brokers?

Yes, any Paradigm employee who might trigger the most restrictive State interpretation of "practicing real estate" is required to have a brokers/agents license in the jurisdiction wherein they work. Please keep us apprised changes in state laws which might affect our business together.

What is the standard response time for the Paradigm staff to a Broker inquiry?

No more than 24 hours. We will have posted an Escalation Chart to that you will always know the next level. Always! Please look at our Agenda of Accountability!

What kind of a working relationship should I expect with Paradigm?

All of us work better with some, poorer with others. Our Enterprise goal is to treat everyone with respect and professionalism. Although we hope to develop a strong relationship with every vendor, we know that sometimes that is not possible.

Paradigm commits to answer your questions in a timely fashion and to explain anything in our procedures that concerns or troubles you. Working collegially toward the best execution for our mutual clients, we expect that small incremental changes along the way will shift and then change the Paradigm for REO.

This all sounds good—how can you guarantee it?

This is the BEST of all questions.

Paradigm cannot guarantee anything more than a well-thought out plan for go-forward REO business. To deliver on our representations, we must cultivate Clients who subscribe to the components of our philosophy recognizing that the BEST EXECUTION COMES FROM THE BEST BROKERS! Given our emphasis on our local broker-partners, we expect that you will be equal to the challenge and manage each asset as if it were your own.

Simply put, we do not aspire to be all things to all Clients. We seek to work with clients, brokers and vendors, all in an extended partnership committed to the best execution.