Emax has been retained to provide financial advisory services to Ginnie Mae on its Capital Markets Securitized Transactions program. Emax directives include the modification of Ginnie Mae program tools for procedural efficiency, and an analysis of new and proposed products. Background analysis will include review with participants of previously issued transactions in order to go forward on a best practices basis. Further, Emax will make recommendations to limit exposure in the context of issuances particularly subject to market volatility. The firm's opinions on new and existing programs will encompass pricing relationships, recommendations regarding program augmentation, and will serve to advise the agency on relevant capital markets developments. The assignment will also include investor education initiatives.

Emax was retained by Ernst & Young, LLP to evaluate and provide recommendations to the U.S. Department of Agriculture Rural Development Agency (“USDA RD”) regarding the monitoring of its guaranteed loan portfolio and its universe of individual lenders.  The USDA is a major credit agency of the Federal Government with approximately $19.7 billion in loan guarantees.

The USDA RD loan guarantee program is wide-ranging, providing loans or loan guarantees for single and multi-family housing, community facilities, rural business, water and waste, and electric power. The experience of Emax with various Federal agencies in developing and implementing solutions to complex risk and asset management, accounting, internal control, servicing, and compliance issues has provided valuable insight into this undertaking. 

Emax professionals conducted a broad analysis of oversight and audit requirements, required by other governmental and quasi-governmental agencies, regulators, and statutory provisions. With the catalog of requirements in hand, the team assessed existing, proposed and newly developed methodologies in the formulation of a best-practices monitoring system to meet the USDA RD’s objectives.

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Emax Financial & Real Estate Advisory Services, LLC, through an affiliate, was contracted by the U.S. Department of Housing and Urban Development (HUD) as Program Financial Advisor to assist the Federal Housing Administration ("FHA") in managing its Asset Sales Program and to advise FHA on the disposition of HUD-held single family and multifamily mortgage notes. Emax professionals assisted FHA in: (i) planning for the overall Asset Sales Program and initiatives; (ii) determining the impact of proposed sales on the budget and operations for ten out years and, (iii) providing oversight on the following these specific sales initiatives of approximately $2.4 Billion in unpaid principal balance:

• $487 Million Single Family Loan Sale 2000-1 (SFLS 2000-1)/September 2000
• $760 Million Multifamily & Healthcare Loan Sale 2000-1 (MFLS 2000-1)/January 2001
• $502 Million Multifamily & Healthcare Loan Sale 2002-1(MHLS 2002-1)/July 2002
• $400 Million Single Family Joint Venture 2002-1 (SFJV 2002)/October 2002
• $250 Million Multifamily & Healthcare Loan Sale 2002-2 (MHLS 2002-2)/December 2002
• $153 Million Multifamily & Healthcare Loan Sale 2003-1 (MHLS 2003-1)/September 2003
• $439 Million Single Family Joint Venture 2003-1 (SFJV 2003)/September 2003
• $254 Million Multifamily & Healthcare Loan Sale 2004-1 (MHLS 2004-1)/March 2004
• $435 Million Single Family Joint Venture 2004-1 (SFJV 2004)/June 2004
• $201 Million Multifamily & Healthcare Loan Sale 2004-2 (MHLS 2004-2)/September 2004

Oversight included: (i) establishing and monitoring quality control; (ii) testing bid evaluation models and market value models and, (iii) solving problems to ensure deadlines were met and proceeds were maximized. These sales were highly successful generating over $300 million in savings for the Federal Government. Among its numerous tasks, Emax Financial & Real Estate Advisory Services, LLC assisted FHA in developing asset sale credit subsidy models and presenting their results to the Office of Management and Budget ("OMB") to calculate the credit subsidy effect of each asset sale. The contract was renewed in 2003.
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Emax has been engaged on behalf of the Office of Secretary of Defense / Office of Housing & Competitive Sourcing (H&CS), as a prime contractor to assist in the program oversight and management of the Department of Defense’s (DoD) Military Housing Privatization Initiative (MHPI) program. In lieu of the traditional military construction program, the MHPI program is designed to attract the private sector to redevelop, own, finance, operate, and maintain military housing for up to 50 years. Under this program, the DoD has privatized more than 111,000 family housing units, which were previously owned, operated, and maintained by DoD.  This program leverages Federal dollars by transferring ownership responsibilities to the private sector, and to-date it has generated nearly $14 billion in private capital to renovate and rebuild quality housing for U.S. military families. 

Emax Financial & Real Estate Advisory Services, LLC provides the following services to OSD / H&CS:

• Real estate and financial advisory support services,
• Ad-hoc queries and analyses,
• Budget scoring support,
• Support in preparing briefings to OMB, GAO, and Congress,
• Policy development support, and
• Program management and oversight support.

Emax has been engaged as a subcontractor to Ernst & Young, LP to serve as the project manager to the Air Force Center for Environmental Excellence (AFCEE) in support of the United States Air Force’s Military Housing Privatization Initiatives (MHPI).  MHPI allows the Air Force to work with the private sector to raise capital and provide industry expertise to match or exceed housing market standards. The Emax team orchestrates the process around the competitive selection of a private-sector developer to plan, design, develop, finance, own and operate the rental housing for a period of up to 50 years.

Emax professionals have been retained to support these undertakings at Hickam Air Force Base in Honolulu, Hawaii; Tinker Air Force Base in Oklahoma City, Oklahoma; and Dover Air Force Base in Dover, Delaware. The Hickam Phase II project involves the conveyance of approximately 1,303 homes with an end-state objective of 1,118 privatized housing units.  The Dover Air Force Base project involved government conveyance of 1,190 existing housing units with an end-state objective of 980 units. The Tinker project involved 858 units.

Emax professionals assist the AF in identifying and developing project requirements, preparing Requests for Proposal (“RFP”) to solicit prospective developers, holding Industry Forums for potential bidders, community members, and local community groups and evaluating proposals from potential developers and recommending the best value offer. Following the Air Force selection of the optimal bidder, Emax provides technical and administrative support as necessary to assist the Air Force in negotiating the final terms of the transaction.
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Emax was hired by the U.S. Department of Education to provide ongoing services for various task orders to Federal Student Aid Financial Partners Services. The Emax has already been involved in four separate engagements for which it assumes responsibility to develop methodologies to value businesses, real estate and other assets; provide recommendations on the valuations of such assets; assist in the development of settlement proposals regarding those assets; order and analyze third party reports to assist in the analysis such as appraisals, environmental reports and engineering reports; research and review settlement proposals on the disposition of Federal assets; and collect, verify and analyze data from several loan servicing companies. Emax has assisted FP in valuing real estate, businesses and other assets across United States, including assets in the States of Colorado, South Dakota, Massachusetts and Rhode Island. With its unique valuation methodology, Emax has created an in-depth system for determining realistic values of the different assets for which FP has requested assistance.
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An affiliate of Emax was contracted by the Department of Veterans Affairs as the Project Coordinator for the advisory team to complete the VA VISN 4 EUL Projects. The Emax affiliate was selected to integrate financial, technical, legal and accounting services during all phases of the transaction. The Department’s enhanced-use leasing authority will enable private sector developers to construct five cogeneration energy plants on the campuses of five separate Department medical centers in order to replace aging equipment thereby reducing energy costs. Through the creative financial structure developed by the Emax affiliate, the successful financing, development and operation of these plants will represent an effective collaboration between the public and private sectors to ensure the reliable delivery of low cost power to these critical operations, while maintaining conformity with recent OMB guidance.

The Emax affiliate has been involved in all aspects of the projects including: designing an optimal financial structure; analyzing various Expressions of Interest received from potential investment bankers and recommending the inclusion of the highest ranked in the RFP for developers and the development of the Developer RFP which includes form commercial documents so that the transaction terms are not negotiated post the award.

Once the developers’ proposals have been submitted, the EMAX affiliate supports the analysis of the proposal, providing recommendations to the Department and working with the Department, the Developers and investment bankers to close the transactions.
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Emax Financial & Real Estate Advisory Services, LLC, through an affiliate, was contracted by the U.S. Department of Veterans Affairs as Program Financial Advisor in connection with five “enhanced-use” trusts established by the for the purpose of financing co-generation facilities and office building space for medical resources. The review assessed the refinancing implications of: trust structures through multiple projects, the establishment of a conduit, the creation of a public offering through a shelf registration, and privately placed debt.
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Emax Financial & Real Estate Advisory Services, LLC represented Northpark Mall Partnership from 1991 to 2004 and was responsible for numerous financial advisory and placement agent services. Northpark Mall Partnership owns Northpark Mall, a 990,000 square foot regional Mall in Joplin, Missouri. In 1991, Emax arranged for a replacement letter of credit from Sumitomo Trust and Banking Co., Ltd. for the tax exempt bonds that originally financed an expansion of the mall. In 1993, Emax obtained a wrap letter of credit from Sumitomo Bank following a downgrading of Sumitomo Trust and Banking Co.'s credit rating.

In 1996, following Sumitomo Trust and Banking Co., Ltd.'s letter of credit expiration, Emax restructured the tax-exempt bonds, originally variable rate bonds, to three series of fixed-rate bonds. One series of bonds was distributed to certain partners withdrawing from the partnership as redemption of their partnership interest. In 1997, another series was privately placed to an institutional investor. Emax additionally refinanced a John Hancock loan secured by a portion of the mall. In February of 2004, Emax assisted in the complex defeasing of all outstanding tax exempt debt into a conventional $42 million loan.
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Emax's relationship with JPMorgan Chase dates back to 1993. Emax represented Texas Commerce Bank, now known as JPMorgan Chase, from 1993-1996 on the workout of four defaulted multifamily revenue bond issues. This workout was originally part of an assignment to negotiate settlement agreements for nine trustees having fiduciary responsibility for sixteen defaulted multifamily housing revenue bond issues that were credit enhanced by Mutual Benefit Life alternative workout strategies and determines the optimal approach for dealing with each asset, which may include the redevelopment and sale of the properties.
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Emax, through an affiliate, was subcontracted by the U.S. Small Business Administration in connection with the revival of a variety of loan sale programs. The engagement involved conducting an independent verification and validation of various credit program budget subsidy models used by the SBA to calculate its credit subsidy estimates, or estimates of various loan programs.
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