C&D: Downey S&L Assoc, F.A.
"IV. Real Estate Owned Disposition Plan
A. Within forty-five (45) days, the Board shall adopt and submit for OTS review and non-objection a written, comprehensive Real Estate Owned Disposition Plan (REO Plan) that will promote the effective management and prompt disposition of Real Estate Owned by the Association. At a minimum, the REO Plan shall include:
(1) Specific Board strategies with goals and objectives for effectively managing and reducing the Association’s REO;
(2) A risk analysis by vintage of loan origination, aging, and real estate concentration by geography; and
(3) A comprehensive analysis of the Association’s internal operations, staffing requirements, information systems, and policies and procedures, including those related to valuation, in order to determine their adequacy.
B. Within fifteen (15) days of receipt of the OTS’s notice of objection, if any, to any aspect of the REO Plan, the Association shall submit a revised REO Plan to the OTS addressing any such objections of the OTS. Once the REO Plan is submitted pursuant to this Order and all objections from the OTS, if any, have been satisfactorily resolved, the Association may not amend, suspend, or revoke the REO Plan without the prior written non-objection of the OTS. Immediately upon receipt of the OTS’s non-objection to the REO Plan, or in the event no written objection is raised by the Regional Director during the forty-five (45) day notice period, the Association shall implement the REO Plan and ensure that all directors, officers, and employees adhere to it.
C. Management shall prepare quarterly variance reports on the Association’s compliance with the REO Plan within thirty (30) days after the close of the December 31, 2008 calendar quarter, and each calendar quarter thereafter. Such variance reports shall detail actual operating results versus projected results and shall include detailed explanations of any material deviations with a description of the specific corrective actions or measures that have been implemented or are proposed to address the material deviation. The Board shall review each variance report, and shall discuss Management’s and the Association’s compliance with the approved REO Plan. The Board’s review of the variance reports and evaluation of Management and the Association’s compliance with the material elements of the REO Plan shall be thoroughly documented in the Board meeting minutes.
D. The Board shall provide the OTS with a copy of Management’s quarterly variance report and the Board meeting minutes detailing the Board’s review of the variance reports, including the identification of any corrective actions adopted by the Board, and the Board’s evaluation and assessment of Management and the Association’s compliance with the REO Plan within ten (10) days after the date of the Board meeting at which the Board’s review was conducted."