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<TITLE>Magna.Net Wrapping a deal</TITLE>
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<H1>Procedure For Entering Wraps
</h1>
<P><CENTER><EM>as of April 29, 2004</EM></CENTER>
</P>
<P><STRONG>Definition:</STRONG></P>
<P> A wrap is the process of adding a second unit/week to an existing contract.</P>
<P> <STRONG>Prior Contract</STRONG>: The original contract written, prior to adding a second unit/week.</P>
<P> <STRONG>Wrap</STRONG>: A contract after the addition of a second unit/week.</P>
<P><STRONG>Background:</STRONG></P>
<P> Prior to a contract being wrapped, the contract must be in good standing, i.e.; it must be
full down, have a status of "<STRONG><EM>N</EM></STRONG><EM></EM>" or "<STRONG><EM>F</EM></STRONG>
" and no additional down payment monies can be due.</P>
<P> All Owner information in the <STRONG>Prior Contract</STRONG> should be verified as accurate. A
significant portion of the Owner information will be transferred from the <STRONG>Prior Contract</STRONG> to the
<STRONG>Wrap</STRONG>.</P>
<P> Special attention must be paid to the phone number on the original contract and the phone
number on the new survey. If an Owner's phone number has changed between when the original
contract was written and when the tour associated with <STRONG>Wrap</STRONG> occurs, the phone number on the
original contract should be changed, and an entry made in notes, to reflect the newest
information.</P>
<img src="wrap-01.jpg" border=0>
<P> No determination as to mortgage or Owner Association delinquencies will be rendered in
performing the <STRONG>Wrap</STRONG>. It is the responsibility of the Contracts office to notify the appropriate
entities. </P>
<P> The following environmental variables must be set prior to executing the wrap program:</P>
<P> ADD=YES</P>
<P> WRAP_ADD=YES</P>
<P> A <STRONG>Wrap</STRONG> requires that a new, second survey (<STRONG>Wrap Surve</STRONG>y) be entered or exists. The use
of the survey associated with the <STRONG>Prior Contract</STRONG> is NOT recommended as it will distort
historical sales statistics. Performing a <STRONG>Wrap</STRONG> will require that the <STRONG>Wrap Survey</STRONG> have a manifest
date. With the exception of Market Source, Solicitor(s), and Sales People, all information found
in the <STRONG>Wrap Survey</STRONG> MUST correspond to the <STRONG>Prior Contract</STRONG>.</P>
<P> NOTE: Upon completion of the <STRONG>Wrap</STRONG>, the Owner will have Two (2) contracts in good
standing. The wrap executable will NOT automatically change the status of the <STRONG>Prior Contract</STRONG>
to A "<STRONG><EM>U</EM></STRONG>". The status change on the <STRONG>Prior Contract</STRONG> should not occur until the <STRONG>Wrap</STRONG> is out of
rescission.</P>
<P><STRONG>Procedure</STRONG></P>
<img src="mkwrap-02.jpg" alt="Initial screen" border=0>
<P> Execute the Wrap executable from your menu:</P>
<P> </P>
<P> The screen will prompt for a contract number. Enter the contract number of the
<STRONG>Prior Contract</STRONG>. The screen will prompt you to load the information from the <STRONG>Prior
Contract</STRONG>. Move the cursor to the "<STRONG><EM>Yes</EM></STRONG><EM></EM>" box and hit "<STRONG><EM>Enter</EM></STRONG>".</P>
<img src="mkwrap-03.jpg" border=0>
<P> The screen in divided into five (5) sections and must be processed in the order in
which it appears on the screen:</P>
<P> 1. <STRONG><U>Contract Information</U></STRONG><U></U></P>
<img src="mkwrap-03-01.jpg" border="0">
<P>No additional information is entered in this section and is provided purely
for information purposes only. The data reflects the values from the <STRONG>Prior
Contract</STRONG>. Note that the <STRONG>Prior Contract</STRONG> number shows as a negative, with a "-"
in front of the number to indicate that this is a new sale.</P>
<P> 2. <STRONG><U>Marketing</U></STRONG><U></U></P>
<img src="mkwrap-03-02.jpg" border="0">
<P>Enter the new survey here. The Office and Market Source will
automatically populate from the survey. If the phone number on the survey does
not match the phone number showing on the <STRONG>Prior Contract</STRONG>, an error message
will display.</P>
<P> 3. <STRONG><U>Inventory</U></STRONG><U></U></P>
<img src="mkwrap-03-03.jpg" border="0">
<P> This section is divided into two (2) areas, the <STRONG>Wrap</STRONG> Inventory (second
unit/week) displays on the first line, while the <STRONG>Prior Contract</STRONG> unit/week displays
on the second line. Enter the <STRONG>Wrap</STRONG> unit and the <STRONG>Wrap</STRONG> week in the appropriate
spaces. The Phase, Project, and Price fields will automatically populate from the
inventory information. Note that the Price showing is the List Price associated
with the <STRONG>Wrap</STRONG> unit/week. The information is provided as a guideline to establish
a minimum value.</P>
<P> 4. <STRONG><U>Finance & Dates</U></STRONG><U></U></P>
<img src="mkwrap-03-04.jpg" align="left" border="0">
<P> <STRONG><U>Money</U></STRONG><U></U></P>
<P> <STRONG>Sales Price</STRONG>: Default to the sum of the price on the <STRONG>Prior Contract</STRONG> plus
the List Price of the Second unit/week. This amount may be over-ridden to reflect
the pricing of the <STRONG>Wrap</STRONG>.</P>
<P> <STRONG>Term</STRONG>: Enter the term, in months, of the length of financing provided by
the developer.</P>
<P> <STRONG>APR</STRONG>: Enter the Annual Percentage Rate (APR) of the interest rate being
charged the borrower by the Developer. Example, 16.9.</P>
<P> <STRONG>Upgrade Volume</STRONG>: This is a calculated value, and is the difference
between the Price of the <STRONG>Wrap</STRONG> and the Price of the <STRONG>Prior Contract</STRONG>. It is NOT a
user editable field.</P>
<P><STRONG>Procedure (Continued)</STRONG></P>
<P> <STRONG>Equity</STRONG>: Enter the amount of equity, if any, being transferred from the
<STRONG>Prior Contract</STRONG>. This field is used to determine the mortgage amount of the
<STRONG>Wrap</STRONG>.</P>
<P> <STRONG>Amt Received</STRONG>: Enter the amount received at the point of sale, exclusive
of any additional down payments which may or may not be due. After this field is
entered, the Financed amount field will calculate automatically.</P>
<P> <STRONG>Method</STRONG>: Enter the method, VS, MC, AX, CA, CQ, which is being used
to receive the down payment at the point of sale.</P>
<P> <STRONG>Add'l Payments</STRONG>: Enter the amount, if any, of the additional down
payment due. Entering a number in this field will cause the Financed field to
automatically recalculate.</P>
<P> <STRONG>On</STRONG>: If additional down payment monies are due, enter the date they are to
be processed.</P>
<P> <STRONG>Ccost</STRONG>: Enter the amount of closing costs, regardless of whether paid by
Seller or Buyer.</P>
<P> <STRONG>Paid by</STRONG>: Enter a "<STRONG><EM>B</EM></STRONG>" for Buyer or and "<STRONG><EM>S</EM></STRONG>" for Seller to reflect which
party is paying the closing costs.</P>
<P> <STRONG>Exch Co</STRONG>: Enter the amount of Exchange Company Membership ONLY if
not part of the Closing Costs (above) and ONLY if not paid for by Seller.</P>
<P> <STRONG>Dates</STRONG></P>
<P> <STRONG>1st Payment</STRONG>: Enter, if the Financed field is not 0.00, the date that the 1st
mortgage payment will be due, usually 30-45 days in the future.</P>
<P> <STRONG>Written</STRONG>: Date the <STRONG>Wrap</STRONG> was written. Self-explanatory. Not editable</P>
<P> <STRONG>**FullDown</STRONG>: Date the <STRONG>Wrap</STRONG> became Full Down. Self-explanatory. Not
editable.</P>
<P> <STRONG>Est</STRONG>: Established Date. Date the last status change occurred. Self-explanatory. Not editable.</P>
<P> <STRONG>Occupancy</STRONG>: Date when the <STRONG>Wrap</STRONG> Owner may occupy or use the
unit/week. This must be a date in the future.</P>
<P><STRONG>Procedure (Continued)</STRONG></P>
<P> 5. Sales People & Deeder Information</P>
<img src="mkwrap-03-05.jpg" border="0">
<P> SP: Enter Salesperson's number.</P>
<P> TO: Enter TO's number.</P>
<P> SP3: If necessary, enter SP3 type, "<STRONG><EM>F</EM></STRONG><EM></EM>" or "<STRONG><EM>B</EM></STRONG><EM></EM>", followed by their number.</P>
<P> SP4: If necessary, enter SP4 type, "<STRONG><EM>F</EM></STRONG><EM></EM>" or "<STRONG><EM>B</EM></STRONG><EM></EM>", followed by their number.</P>
<P> F2 to save.</P>
<P> All of the information entered may be edited from the Contract edit screen.</P>
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