Hallmark American Group, Inc., (.HAG.) headquartered in Holly Lake Ranch, Texas, is a commercial finance enterprise specializing in commercial loans for companies and individuals. It is the mission of Hallmark American Group to make this experience efficient and successful to each of those we serve and to make gathering the information we need to send to our institutional lender network professional and complete.

The loan package is underwritten to the highest quality to be sent to local community banks to review and fund. When needed we help the bank in finding participating banks, and coordinate and drive all parties through loan closing. Hallmark actively reinforces the lead bank in the servicing function, particularly during project construction and stabilization. Aligned with the lending community, HAG prudently serves both sides of the transaction table.

Owned and managed by a former banker, Hallmark American Group is lender oriented and transaction driven. After a transaction is thoroughly underwritten, experienced bankers at HAG work closely with local banks and a "relationship" (lead) bank is selected. On many projects, a participant lending group must also be assembled in order to fund the loan request. If so, HAG works closely with the relationship bank to find the participants. Once a Lender (or Lending group) has approved the credit, HAG stays front-and-center in the loan closing process. After loan closing, HAG servicing procedures make certain that construction dollars are allocated correctly and used appropriately. The servicing collaboration between HAG and the Lender(s) lasts through project construction and stabilization. This assistance becomes especially significant when issues arise that need extra attention and/or additional participant coordination.

To our borrowers, Hallmark American Group is a finance ally. Loan underwriters work closely with borrowers during (i) application processing, (ii) loan underwriting, (iii) loan funding and (iv) project construction. Developers of multiple projects find that HAG is a consistent, convenient and efficient funding source.

For our lending partners, the immediate access to additional HAG lending participants allows them to seek loans larger than their particular lending limit. HAG is also an extremely safe, reliable, and efficient asset generator. Many financial institutions are unable to generate enough good assets to accommodate growth and profit objectives. Whether they lack the staff, the lending capacity, or the basic opportunity, Hallmark American Group can provide high quality earning assets that offset the deficiency. Loans are "pre-assembled" by Hallmark American Group, containing all of the information vital for an accurate decision. Asset gathering is extremely efficient. A local "relationship" bank that knows the borrower provides ongoing loan servicing. Well-known national providers who coordinate their efforts through the Hallmark American Group Dallas office provide professional services such as property and environmental appraisal, engineering review, and construction supervision.

HOW BUSINESS IS TRANSACTED

Like any lending institution, commercial lending opportunities arise from a variety of sources: personal relationships, brokers, and referrals from other institutions supply the borrowing prospects. Once introduced, Dale Esmond typically begins the underwriting process, providing an initial review of the project to be financed. Dale's 40-plus years of banking experience provide a credible filter to segregate "bankable" transactions from those he concludes are of lesser quality.

When the decision is made to proceed, a "Term Sheet" is sent to the borrowers detailing all terms and conditions of the loan. When the terms are agreed to (as evidenced by signatures), a complete underwriting package is assembled. The borrower must supply acceptable financial statements, tax returns and project pro formas. Appraisals and environmental reports are ordered.

Concurrent with the later stages of underwriting, a Hallmark American Group representative will begin the search for the "relationship" or lead bank. Because this bank will service the transaction and establish a relationship with the borrowing client, it is vital that the right partner be chosen. An offering book is prepared and sent to selected Lenders. The offering book contains all information essential for an informed credit decision. The goal of Hallmark American Group is to underwrite, structure and recommend transactions to financial institutions. It is not the intent to do the underwriting for the prospective participant. It is anticipated and expected that all prospective Lenders will do their own due diligence. If a participation group is needed to fund a transaction, participants are selected with the help of the relationship bank.

Once the debt is placed, HAG coordinates the loan closing. All loans are closed at and funds are dispersed through Title Companies. Approximately one week after closing, all lending participants receive the complete set of closing documents. Participants are expected to review all documents prior to funding.

Procedures are designed to mitigate construction loan risk. No more frequently than once per month, the contractor's request for funds (Form G702), keys the notification of our inspecting engineer. Once the inspector views the project and reviews and approves the request, HAG assesses the progress and the inspector's report. Along with the G702, HAG prepares a monthly construction report detailing the current draw and draw totals to date. These reports are all sent along with a pro-rata draw request to the Lender(s). The Lender(s) review the information and fund the draw request. Procedures continue through project completion.