Aloha Darryl,

Here’s a summary of the mortgage program I developed. It’s called the RADHA Mortgage: Real estate Association for Depreciating Housing Assets.

In short, a mortgage product specifically tailored for over-inflated real estate assets in a depreciating housing market. 

Used by Credit Unions on East Cost

Credit Unions from the East Coast have been using this program since 2008. Happy to connect you with them and to confirm the benefits first hand as outlined below and stated in the letter from them – also included here and/or the email. 

The RADHA Mortgage has already been vetted by the Credit Unions accountants, lawyers as well as their member banks as a retail product. 

Share the list of benefits with your contact and see if they would be interested to get more information.

In short:

Home Owners:

• 50% to 70% lower monthly payments for owners and downpayments for buyers. Banks:

• 50% to 100% less cost to banks to write-down over-inflated properties. • Recapitalized against 20% of their holdings value

• Convert real estate liabilities into performing assets.

Yours sincerely,

Raghu Giuffre

Contents

Homeowner Benefits ...................................................................................................................................2 Bank Benefits................................................................................................................................................3 Market Benefits............................................................................................................................................4

1

Homeowner Benefits 

1) 25% to 70% Lower Monthly for Owner

- It reduces monthly mortgage payments starting at 20% to 30% (depending upon the original interest rate of their present mortgage). 

A) The average reduction is 50% and can be as low as 70% below their present monthly mortgage payment – when necessary. 

a) We recommend this 70% reduction for today’s US market. Details of advantages covered in next book: Leverage Debt Reduction. 

- Ex: If your mortgage payment was $2,500 a month, it would now drop to just $1,250. We recommend that today’s market should drop those monthlies down to just $800. 

2) 50% to 80% Smaller Downpayments for Buyers

3) 50% to 80% Savings for Owners Writing-off over inflated home – or when forced to sell (at a loss).

2

Bank Benefits 

1) 20% to 100% Savings for Banks on their Write-offs 

- Reduces how much banks need to spend writing down on over-inflated properties. A) Savings start at 20% but averages between 50% to 70%. 

B) 100% savings has been the case with the credit unions using this mortgage. 

2) 15% to 80% Recapitalization

- Banks are recapitalized with 15% to 35% against the total value of their distressed mortgage holdings. 

- Infusion of capital will do wonders for banks dealing with ‘Mark to Market’ write downs of over inflated properties.

3) 6% to 9% Interest Rates for Banks 

- Low - LOW - monthly payments for owners allows banks to also charge higher interest rates over those of the market average and still cost 50% less over today’s mortgage payments. 

4) Converts Distressed Properties into Performing Assets 

- Most every residential property can now be reset as a high performing real estate asset in having both the most affordable monthly mortgage for buyers - fastest resale - and highest interest rates for banks.

5) Removes (all toxic) liabilities from banks holdings in 1 to 5 years - We can clear (most all) Toxic Assets off a banks books by year 5 – generally by year 1. - Greater a banks pool of Toxic Assets, greater the appeal and the deal we can negotiate from banks. 

- Same for entire nations. We can contract with Spain, California, or even China, etc. 

6) Saves Banks from Bankruptcy

- Infusion of capital will do wonders for banks dealing with ‘Mark to Market’ write downs. The cash requirements for these write-downs were the primary cause of bank failures in 2007. This provides banks with capital infusion required to make their write downs.

3

Market Benefits 

1) Set Pricing Floor for Market

- The biggest problem with market melt downs is that investors is the risk how much lower housing prices will fall and so too, their corresponding bonds and securities. Same again for home buyers. RADHA provides this ‘floor price’ to these asset and values. 

- RADHA offers this base line both retroactively and - proactively. In other words, RADHA sets the price of the market in both the market fall as well as setting the prices for the next half decade as well – details upon request. 

2) Stabilize Market

- RADHA mortgage can solve most any real estate bubble crash. 

- China’s $30 trillion real estate bubble would cut that bubble 50% at a cost of just 5% to banks and gov’t. Same for the USA.

4

Letter from CU Using RADHA 

1) Benefits Set Pricing Floor for Market

‘As a financial institution, we find the following benefits from this model: - It covnverts a high-risk asset into a safe, performing and income generating loan. - It avoids a high-risk asset into a safe, performing and income generating loan. - It can be a source of recapitalization by selling first mortgage loan and making it an attractive option for potential investors. 

- …

5