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List Price And Agent Feedback On The Weekly Calls

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As RMS has indicated many times, based on our observations and more importantly on the review of assets during our weekly calls with Altisource, RMS continues to believe on many of these assets, the condition or location of the property is the primary driver behind not only the large reduction in list price, but ultimately a sales price well below the initial list price, all of which contribute to extended days on market and increased carrying costs incurred by the trust. This is an ongoing issue observed with Altisource and discussed on the weekly calls.

List price continues to be the biggest concern and is a frequent topic during our weekly target assets and RMS raises these issues on an asset-level basis, reviewing activity, property condition, agent feedback and offers (or lack thereof).

RMS continues to review assets where we believe the list price set by Altisource is high relative to our opinion of market value. On listed assets with DOM of more than 60 days and no offers, RMS and Altisource discuss the list price and agent feedback to understand why offers have not been received. RMS targets these assets for review every 2 weeks.
Another recent observation is a continued increase in the number of assets in “pending contracts” that fall out because the “buyer” fails to return the purchase agreement. RMS continued to observe this in January 2016. We believe this relates to the process by which Altisource sells REO assets (on the HUBZU website), where

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