MORTGAGE RELIEF OFFERED TO BORROWERS

BY THE NATIONAL MORTGAGE SETTLEMENT

Issue		Exhibit: ¶ or pg	Description
Basic Program Eligibility
What are the program start & end dates		CJ-14-15	April 4, 2012, to October 3, 2015; March 1, 2012, is the “start date” for the 12 months of 25% bonus credits
Is eligibility for relief restricted to certain mortgage origination dates?		CJ Ex D: 9	No restriction, except for refinancing (must be prior to 1-1-09)
Which servicers are covered by the settlement?		CJ	Ally Financial, Inc., GMAC Mortgage, LLC*, Residential Capital, LLC* [* filed Chapter 11 bankruptcy 5-14-12] Bank of America Corporation; Bank of America, NA; BAC Home Loans Servicing, LP f/k/a Countrywide Home Loans Servicing, LP; Countrywide Financial Corporation; Countrywide Mortgage Ventures, LLC; and Countrywide Bank, FSB Citigroup Inc., Citibank, NA, and CitiMortgage, Inc. JPMorgan Chase & Company and JPMorgan Chase Bank, NA Wells Fargo & Co and Wells Fargo Bank, NA
Are Fannie Mae and Freddie Mac (GSE) loans serviced by the above servicers eligible for benefits under the settlement?		-	No! Fannie Mae and Freddie Mac are in a conservatorship and the conservator, the Federal Housing Finance Agency (FHFA), has denied them the right to participate in the settlement.
Are HUD, FHA, and VA loans serviced by the above servicers eligible for benefits under the settlement?		CJ	Yes, the federal government is a party to the settlement.
Do “second liens” referred to throughout the settlement include more junior liens?		-	Unknown
Is there a standard application form for benefits under the settlement?		-	No
What is the application process?		-	There is no specified application process.
Servicing Standards – these protections only apply to owner-occupied principal residences
Truthful affidavits, factual assertions in pleadings, bankruptcy proofs of claim, declarations, sworn statements		Ex A- I.A.1-3	Servicer shall ensure that factual assertions filed by/on behalf of servicer are supported by competent and reliable evidence; servicer shall ensure it has reviewed competent and reliable evidence to substantiate borrower’s default and foreclosure right
Personal knowledge: affidavits, sworn statements declarations		Ex A- I.A.1-3	Affiant must have personally reviewed servicer’s books and records (in accordance with state and federal evidentiary law)
Hand signatures (except for permitted electronic signatures)		Ex A- I.A.11	Signed by hand signature of affiant except for permitted electronic signatures. Not stamped or other electronic or mechanical signatures.
Dated signatures		Ex A- I.A.13	Affiants shall date their signatures
File accurate bankruptcy proofs of claim (POCs)		Ex A- I.A.15	Servicer shall not file POC containing materially inaccurate information and must amend inaccurate POCs within 30 days of notice of inaccuracy
Not rely on robosigned documents filed in bankruptcy or judicial foreclosure cases		Ex A- I.A.16	Servicer may not rely on defective documents already filed in a case; shall replace defective documents; and provide written notice to the borrower or borrower’s counsel.
Required notification in judicial foreclosures (post-judgment, pre-sale) where robosigned documents may have been used		Ex A- I.A.17	Must notify borrower or borrower’s counsel prior to proceeding with foreclosure sale or eviction.
Timely post loan payments for non-bankruptcy borrowers		Ex A- I.B.2	If interest is calculated on daily accrual or interest method, post within two days of receipt, and apply per loan documents; accept trial modification payments; accept cure payments; accept and apply at least two non-conforming payments.
In active Chapter 13 bankruptcy cases, properly account for loan pmts received.		Ex A- I.B.11	Apply payments according to plan; treat as cured; and provide payment reconciliation at end of case
Good faith attempt to locate lost note		Ex A- I.C.4	Servicer shall comply with applicable law in an attempt to establish ownership of the note and the right to enforce.
Servicer shall not intentionally destroy or dispose of original notes.		Ex A- I.C.5	(that are still in force.)
Attach relevant documents to bankruptcy Proofs of Claim (POCs)		Ex A- I.D.1.a	If note has been lost or destroyed, a lost note affidavit shall be submitted.
Include statement “setting forth the basis for asserting that the applicable party has the right to foreclose” with bankruptcy POC		Ex A- I.D.1.e	Yes
Bankruptcy POC shall be signed		Ex A- I.D.1.f	Either hand signed or by appropriate electronic signature by responsible personal after reasonable investigation stating the information set forth in the POC is true and correct
Include statement “setting forth the basis for asserting that the applicable party has the right to foreclose” with bankruptcy Motions for Relief from Stay (MRS)		Ex A- I.D.2.b	If not already filed with POC
File “MRS Affidavit” in bankruptcy cases		Ex A- I.D.2.c	Setting forth details of loan default, and terms of any trial period or permanent loan modification plan pending at the time of MRS filing, or whether the debtor is being evaluated for a loss mitigation option.
Servicer’s foreclosure and bankruptcy counsel and foreclosure trustees shall have access to servicer’s books and records		Ex A- II.A.4	Necessary to prepare pleadings and documents submitted in foreclosure and bankruptcy proceedings
Provide servicer contact for loss mitigation questions to servicer’s foreclosure and bankruptcy counsel.		Ex A- II.B.3	Yes
Reiterates FRBP re POCs, charges, etc.		Ex A- III.B.1	Yes
Servicing Fee Restrictions
Servicing fees must be reasonable, authorized, and disclosed.		Ex A- VI. A & B	Yes
Late fees restricted		Ex A- VI.B.4	No additional late fees if payment is full payment with exception of prior late fees; no late fees during evaluation of complete loan mod application, trial period payments, short sale offer application
Third party fees restricted: property preservation, inspection, and valuation fees		Ex A- VI.C.1	No preservation fees during loss mitigation application or performance unless necessary; no inspection fees beyond GSE/HUD guidelines unless needed; no valuation fees more frequent than 12 mos unless requested by borrower or needed
Servicer mark-up on third party default or foreclosure-related services		Ex A- VI.C.5	Prohibited
Servicer’s attorney’s preparation fees or charges re bankruptcy POC or MRS document withdrawn or denied		Ex A-VI.D.1	If withdrawn, denied, or amended due to substantial misstatement by servicer of amount due, servicer’s fees are not collectible.
Late fees due to Chapter 13 bankruptcy conduit plans		Ex A-VI.D.2	No late fees charged if debtor’s payments to the Chapter 13 trustee are on time.
Force-Placed Insurance
Force-placed insurance restrictions		Ex A- VII	If federally related mortgage, warning letter to borrower is required; general reasonableness
General Loss Mitigation Bankruptcy Protections: “These requirements are intended to apply to both government-sponsored and proprietary loss mitigation programs and shall apply to subservicers performing loss mitigation services on Servicer’s behalf.”
Discrimination not permitted against bankruptcy debtors		Ex A – IV.L.1	“Servicer may not deny any loss mitigation option to eligible borrowers on the basis that the borrower is a debtor in bankruptcy so long as borrower and any trustee cooperates in obtaining any appropriate approvals or consents.”
Trial period plans shall be extended as necessary to obtain bankruptcy court approval.		Ex A- IV.L.2	“Servicer shall, to the extent reasonable, extend trial period loan modification plans as necessary to accommodate delays in obtaining bankruptcy court approvals or receiving full remittance of debtor’s trial period payments that have been made to a chapter 13 trustee. In the event of a trial period extension, the debtor must make a trial period payment for each month of the trial period, including any extension month.”
Servicer will not obstruct borrower’s Chapter 13 bankruptcy case due to a trial or permanent modification		Ex A- IV.L.3	“When the debtor is in compliance with a trial period or permanent loan modification plan, Servicer will not object to confirmation of the debtor’s chapter 13 plan, move to dismiss the pending bankruptcy case, or file a MRS solely on the basis that the debtor paid only the amounts due under the trial period or permanent loan modification plan, as opposed to the non-modified mortgage payments.”
General Loss Mitigation: “These requirements are intended to apply to both government-sponsored and proprietary loss mitigation programs and shall apply to subservicers performing loss mitigation services on Servicer’s behalf.”
Servicer shall solicit non-bankruptcy borrowers re loss mitigation options		Ex A- IV.A.1	Prior to foreclosure, servicers must solicit eligible borrowers for loss mitigation evaluation – but not required for bankruptcy borrowers
Servicer shall offer loan modification rather than initiate foreclosure		Ex A- IV.A.2	if NPV is positive regarding the modification and it meets investor requirements
Dual track* restricted: if substantially complete loan mod package is received when loan is <= 120 days delinquent * “dual track” is when the servicer both (1) evaluates a loan modification application, and (2) also moves ahead with the foreclosure sale process		Ex A- IV.B.1	“If loan has not already been referred to foreclosure,” if less than 120 days delinquent, the servicer shall not refer for foreclosure until: a) servicer determines (after automatic review) that borrower is not eligible for loan mod; or b) borrower does not accept offered “foreclosure prevention alternative” within 14 days of evaluation notice
Dual track restricted: if after referred for foreclosure, a solicited borrower (a bankruptcy borrower not required to be solicited) may become eligible for foreclosure protection		Ex A- IV.B.2	if servicer received complete application form within 30 days of the solicitation letter, etc., [multiple possibilities here]
Dual track restricted: foreclosure sale or request for court order is delayed if loan modification is offered to borrower		Ex A- IV.B.4	Foreclosure sale or court sale order is delayed to earlier of: 14 days after offer, or date borrower declines offer
Dual track restricted: referral for foreclosure is delayed further if borrower accepts loan mod alternative		Ex A- IV.B.2	until breach of trial period plan.
Dual track restricted: no foreclosure sale if borrower complies with loan mod, has an approved short sale or deed-in-lieu		Ex A- IV.B.11	Yes
Servicer shall promptly notify borrower in writing of new foreclosure sale date		Ex A- IV.B.12	if the foreclosure sale is continued (rather than cancelled) to provide time to evaluate loss mitigation options.
Single Point of Contact (SPOC)		Ex A- IV.C.	Yes, servicer shall establish a SPOC for each potentially-eligible first lien mortgage borrower.
Single Point of Contact (SPOC) for bankruptcy debtors are to be specially trained in bankruptcy issues		Ex A- IV.C.2.a & C.9	Yes, and servicers are to establish a toll-free number staffed by bankruptcy-trained persons to answer questions from Chapter 13 trustees.
Loan Modification Timeline		Ex A- IV.F	Within # days Event By 3 business days Written acknowledgment of document [S] 5 business days Notify borrower of known deficiencies [S] 30 days To supply missing documents [B] 30 days Decide disposition of loan mod appl [S] 10 days Notify borrower if appl is denied [S] - Usually, if 1^st denial, 2nd evaluation* [S] 30 days Borrower may contest denial [B] 45 days Send 2^nd lien mod info, after 1^st lien mod [S] 90 days Signed documents good after receipt - 45 days Send fully executed loan mod copy to [S] borrower * called “independent review” but can be done by another employee
Transferring servicing rights should not terminate a loan modification		Ex A- IV.M	Yes
Disposition of Cash to Already Foreclosed Borrowers
Possible cash compensation to already foreclosed borrowers, if foreclosure sales during 1-1-08 to 12-31-11		Ex C	Servicer provides borrower data to State Administrators, who contact eligible borrowers and distribute funds (retaining costs of administration). Nationwide total for all servicers is $1,489,813,925
Consumer Relief for Borrowers Not Yet Foreclosed
All types of “Consumer Relief” available include:		Ex D	Loan modifications (firsts and seconds), relocation assistance (“cash for keys”), short sales, deficiency waivers, forbearance for unemployed borrowers, anti-blight provisions, servicemember benefits
Only owner-occupant borrowers eligible?		Ex D- 2	No, up to 15% of first lien credits can be for non-owner-occupied and non-conforming loans.
Other eligibility requirements		Ex D- 2	Pre-modification = 100+% LTV; 30 days delinquent or imminent risk of default due to borrower’s financial situation
Dual track restrictions (foreclosure & modification analysis at same time)		Ex A- 17	Dual track prohibition only if loan is not more than 120 days delinquent
Right of appeal if loan modification is denied?		Ex A- 27	Yes
Back-end DTI requirements		Ex D- 3 & 5	Targeting 25-31% including junior liens; DTI requirements for 1^st liens waived if 180+ days delinquent, if 20% write-down & resulting LTV <= 120%
Back-end LTV ratios, calculated according to HAMP-PRA		Ex D- 3	Targeting <= 120% LTV
Principal writedowns offered for 1^st liens?		Ex D- 2	Reduce by at least 10% to achieve target of 31% DTI & 120% LTV
Principal writedowns for delinquent 2nd liens – no 1^st modification or different 1^st lien servicer		Ex D- 5	Reduce principal to 100% LTV
If servicer owns 2^nd, 1^st lien is reducing principal, is write-down of 2^nd lien required?		Ex D- 5	Yes, if 2^nd lien => $5,000 UPB & monthly payments => $100/mo
Short sale assistance		Ex D- 6	8% of UPB, => $2,000 and <= $8,500 if unrelated lienholder; required to extinguish own 2^nd lien if 1^st lien LTV => 100%
First Lien Mortgage Modifications: general provisions		Ex D- 2	85+% of first lien credits are to be for owner-occupied loans within the conforming-GSE limits; 30 days delinquent/ imminent default; pre-modification LTV > 100%; post-modification target (first lien) DTI of 31% and post-modification LTV <= 120%; reduce monthly principal + interest payment by 10+%; if LTV > 120% @ 31% DTI, must reduce to 120% and < 25% DTI without negative NPV.
For loans in servicer’s own portfolio: if borrower is granted first lien immediate principal forgiveness modification		Ex D1- 1	Credits: 100% for LTV <= 175%; 50% for portion forgiven > 175% LTV Credit Cap/Min: Min = 30%, up to 2.5% reduction in minimum for excess refinancing credits
For loans in servicer’s own portfolio: if borrower is granted first lien principal forgiveness modification earned over up to three years		Ex D1- 2	Credits: 85% for LTV <= 175%; 45% for portion forgiven > 175% LTV Credit Cap/Min: None
For loans in servicer’s own portfolio: if borrower is granted first lien principal forbearance modification		Ex D1- 1	Credits: 40% Credit Cap/Min: Max 12.5%
For loans serviced for other investors: if borrower is granted first lien immediate principal forgiveness modification		Ex D1- 2	Credits: 45% Credit Cap/Min: None
For loans serviced for other investors: if borrower is granted first lien principal forgiveness modification earned over three years		Ex D1- 2	Credits: 40% for LTV <= 175%; 20% for portion forgiven > 175% LTV Credit Cap/Min: None
Second lien Modifications NMS credits + HAMP-PRA credits, if 2^nd is eligible for HAMP-2MP (1^st mod)		Ex D- 4 & 2	Credit Minimum: 60% for 1^st and 2^nd lien modifications (primarily principal write-downs); and the 60% can be reduced by up to 10% of excess refinancing credits, if any.
0-90 days delinquent 2^nd liens: write-down of principal		Ex D1- 2	Credits:90% Credit Cap/Min: None
91-179 days delinquent 2^nd liens: write-down of principal		Ex D1- 3	Credits:50% Credit Cap/Min: None
180+ days delinquent 2^nd liens: write-down of principal		Ex D1- 3	Credits: 10% Credit Cap/Min: None
Cash for Keys – “Enhanced Borrower Transitional Funds” – payment by servicer		Ex D1- 3	Credits: 100% for amount over $1,500 Credit Cap/Min: 5% [combined]
Cash for Keys – “Enhanced Borrower Transitional Funds” – payment by non-GSE investor		Ex D1- 3	Credits: 45% Credit Cap/Min: 5% [combined]
Short sale/deed-in-lieu: payment to unrelated 2^nd lien holder to release lien		Ex D1- 3	Credits: 100% Credit Cap/Min: None
Short sale/deed-in-lieu: deficiency forgiveness & lien release on 1^st lien in servicer’s portfolio		Ex D1- 3	Credits: 45% Credit Cap/Min: None
Short sale/deed-in-lieu: deficiency forgiveness & lien release on 1^st lien by investor		Ex D1- 3	Credits: 20% Credit Cap/Min: None
Short sale/deed-in-lieu: deficiency forgiveness & lien release on 2^nd lien in servicer’s portfolio 0-90 days delinquent		Ex D1- 3-4	Credits: 90% Credit Cap/Min: None
Short sale/deed-in-lieu: deficiency forgiveness & lien release on 2^nd lien in servicer’s portfolio 91-179 days delinquent		Ex D1- 4	Credits: 50% Credit Cap/Min: None
Short sale/deed-in-lieu: deficiency forgiveness & lien release on 2^nd lien in servicer’s portfolio 180+ days delinquent		Ex D1- 4	Credits: 10% Credit Cap/Min: None
Deficiency waivers on 1^st and 2^nd liens, requires enforceable deficiency		Ex D1- 4	Credits: 10% Credit Cap/Min: 10%
Unemployed homeowner assistance: forgiveness of arrearages		Ex D1- 4	Credits: 100% Credit Cap/Min: None
Unemployed homeowner assistance: forbearance of arrearages		Ex D1- 4	Credits: 5% Credit Cap/Min: None
BOA/CFC (Bank of America/Countrywide) “Settlement Loan Modification Program” (BOA-SLMP) (Exhibit I)
Value of 1^st lien forgiveness required in addition to the nationwide commitment; otherwise, to the extent not met will pay the balance of the cash to FHA at 3 years		Ex I	$850,000,000
BOA-SLMP		Ex I	Eligibility: borrower: economic hardship, 60+ days delinquent as of 1-31-12, DTI >= 25%; was owner-occupant @ origination; no default on prior HAMP-type modification; BOA/CFC is “not prohibited or prevented by law or by contract either from soliciting or from providing principal modification” property: underwater re first liens mortgages: first liens, serviced by BOA/CFC and part of CW securitization or BOA portfolio (permitted to be modified) Process: BOA must solicit some borrowers, other qualifying borrowers may apply on their own Required documents for application: credit report; if employed, most recent paystub; if self-employed, completed P&L template & verbal confirmation; if alimony/child support, order/agreement, most recent bank statement/deposit slip/canceled check as evidence; if SS/ disability/pension/ public assistance, award letter/most recent bank statement (if non-taxable, they need 4506T??); if rental income, signed letter from borrower, most recent bank statement/deposit slip/canceled check; if unemployment benefits, benefit letter supporting 12-mo continuance, 2 most recent bank statements/deposit slips/canceled checks/or 4506T. Modification waterfalls: i. Capitalize delinquent interest and late fees; ii. Forgive principal to achieve 25% DTI, not requiring LTV below 100%; iii. After step ii if DTI > 31%, reduce interest down to 2% to achieve 31% DTI, calculating interest steps as in HAMP; iv. After step iii if DTI > 31%, forbear principal to achieve 31% DTI; v. Limit forbearance and forgiveness to not result in less than 70% LTV; vi. NPV must be positive, reverse the above steps in order to achieve positive NPV. Key factors driving the NPV results are value of the property and gross income of borrower.
Credits against $850,000,000 cash payment (see above)		Ex I- 3	Per Ex D, but credits begin only after “Consumer Relief” minimum (30%) is reached, subject to reduction of 2.5% for possible excess refinancing credits
Ally/GMAC Mortgage/Residential Capital “ResCap Settlement Loan Modification Programs” (ResCap-SLMP) (Exhibit I)
Commitment of additional funds for Consumer Relief		Ex I	$200,000,000
ResCap-SLMP Rate Reduction Refinancing Program (RRRP)		Ex I- 2	Eligible borrowers: not delinquent, and delinquent no more than 30 days within the last 12 months Eligible loans: originated prior to 1-1-09; current interest >= 5.25%; LTV> 100% or LTV> 80% if FICO score < 660 Modification: reduce interest rate to 3.9% (PMMSR as of 3-1-2012; minimum relief $100/month; no future interest rate increases, changes in term, or additional costs to borrower
ResCap-SLMP Principal Reduction Modification Program (PRMP) for current borrowers – Underwater with Credit Degradation		Ex I- 3-4	Eligible borrowers: current borrowers; not more than 30 days delinquent twice within the last 12 months; not more than 60 days delinquent once within the last 12 months; and FICO < 675 or FICO has reduced more than 10% since loan origination Eligible loans: originated prior to 1-1-09; LTV>100%; cannot be an interest-only loan Modification waterfalls: a HAMP-PRA or a proprietary PRA modification, as follows: i. no underwriting based on income is necessary ii. reduce principal down to LTV 100% or lower; minimum principal reduction of 10%
ResCap-SLMP Principal Reduction Modification Program (PRMP) – Payment Shock Relief		Ex I- 4	Eligible borrowers: current borrowers Eligible loans: originated prior to 1-1-09; LTV>100%; must be an interest-only loan or other high-risk product that will reset, resulting in a payment shock to the borrower (in imminent risk of default) Modification: convert to fully amortizing fixed rate mortgage, reduce principal to <+ 100% LTV, achieve monthly payment no higher than current payment by reducing principal
ResCap-SLMP Principal Reduction Modification Program (PRMP) – Principal Reduction for Delinquent Borrowers		Ex I- 4-5	Eligible borrowers: borrower at least 30 days delinquent or at “imminent risk of default” Eligible loans: LTV > 100% Modification: Subject to borrower “underwriting based on HAMP guidelines,” modification will include: i. reduce principal to between 85% and 105% LTV ii. if adjustable rate, convert to fixed rate interest iii. monthly payment reduction >= 30% iv. monthly payment reduction to achieve <= 31% DTI
ResCap-SLMP Principal Reduction Modification Program (PRMP) – Second Lien Reduction Program		Ex I- 5	Eligible borrowers: 1^st lien was modified under “Consumer Relief” program, or borrower is 30+ days delinquent on 2^nd lien (regardless of whether 1^st was modified or is delinquent) Eligible loans: CLTV > 115% Modification waterfalls: i. reduce borrower’s CLTV to <= 115% ii. reduce monthly payment on remaining 2^nd lien according to HAMP-2MP methodology, by reducing principal, interest rate, then term extension
Borrowers who are eligible for both RRRP and PRMP		Ex I- 6	Proactively solicit for RRRP; evaluate for PRMP only if borrower indicates the RRRP payment is not sustainable
Solicitation of eligible borrowers		Ex I- 6-10	Detailed solicitation requirements, similar to HAMP “right party contact” requirements. Minimum duration of solicitation period is 3 months. There does not seem to be an exclusion of bankruptcy debtors from the right to be solicited.
Deferment of foreclosure sales		Ex I- 2	“From [March 1, 2012] until completion of the Solicitation Requirements or proper denial of the borrower for relief under this agreement, whichever is earlier, the ResCap Parties will defer any foreclosure sales on any Eligible Borrower.”
Refinancing Benefits for Current Borrowers
Refinancing offered?		Ex D- 9	Eligible if all: originated before 1-1-09, current LTV > 100%, and current interest rate => 5.25% appx Not eligible if any: FHA/VA loan; loan in foreclosure w/in 24 months; manufactured homes; or no bankruptcy within 24 months
Bonus credits for additional refinancing beyond the commitment		Ex D- 9.f	25% bonus credit applied to 1^st lien principal reduction commitment; 75% bonus credit applied to 2^nd lien principal reduction commitment; subject to stated limits.
Anti-Blight Provisions
Community blight measures		Ex A- VIII.A	Servicer to work with local programs to implement anti-blight measures, including discount sale or donation of low-value REO properties for demolition or salvage; if servicer is not going to foreclose on property, release lien to borrower and notify local governments
Forgiveness for borrower re property on which servicer elects not to foreclose		Ex D1- 4	Credits: 50% Credit Cap/Min: 12% [combined]
Servicer demolition cash costs		Ex D1- 5	Credits: 100% Credit Cap/Min: 12% [combined]
Donated REO properties		Ex D1- 5	Credits: 100% Credit Cap/Min: 12% [combined]
Protections for Military Personnel – Ex A. §V.
Timing, Incentives, Payments for Nationwide Commitments
Start date for activities entitled to credits		Ex D- 10.a	March 1, 2012
25% incentive credit for activities within first 12 months		Ex D- 10.b	1^st and 2^nd lien principal reductions; refinancing credits
Target of 75% completion of “Consumer Relief” credits within two years of March 1, 2012 (February 28, 2014)		Ex D- 10.c	Test #1 for later penalties.
Target of 100% completion of “Consumer Relief” credits within three years of March 1, 2012 (February 28, 2015)		Ex D- 10.d	Test #2. If only test #2 is unmet, servicer pays 125% of unmet three-year commitment amount. If servicer fails to meet both tests #1 and #2, servicer pays 140% of unmet three-year commitment. If the servicer has to pay penalties for state Side Agreements, the servicer can claim a credit against the nationwide penalty for any state penalties.
State Side Agreements also may include penalties for the servicers		-	See the Side Agreements.
CONTACT INFORMATION
Joseph A. Smith, Jr., Monitor & President Office of Mortgage Settlement Oversight 301 Fayetteville St., Suite 1801 Raleigh NC 27601 919-825-4748 website: mortgageoversight.com				Fannie Mae mortgage look-up: 1-800-7FANNIE (8am-8pm EST) www.fanniemae.com/loanlookup
Katherine Porter, Professor of Law, UC Irvine California Monitor, A Program of the Attorney General 401 E. Peltason Drive, Suite 1000 Irvine, CA 92697-8000 email: CAMonitor@doj.ca.gov				Freddie Mac mortgage look-up: 1-800-FREDDIE (8am-8pm EST) www.freddiemac.com/mymortgage
GLOSSARY
CJ	Consent Judgment – the basic document
CLTV	Combined loan-to-value ratio – includes junior liens, as well as first liens (see LTV below)
Conforming	Refers to mortgage balances that conform with (do not exceed) the highest GSE (Fannie/Freddie) loan limit for the local geographic area of the property. Some areas are designated high cost areas and have higher loan limits.
DTI	Debt-to-income ratio. Front-end DTI is the borrower’s DTI (based on borrower’s gross monthly income) before the modification occurs and only takes into account current monthly payments on the first lien (not on junior liens). Back-end DTI is the borrower’s projected DTI (based on borrower’s gross monthly income) after the proposed modification occurs and takes into account all liens on the home.
Dual track	The process of the servicer simultaneously: (1) evaluating a loan modification application and (2) also moving ahead with the foreclosure sale process.
Forbearance	Retaining the full balance of the mortgage, but deferring a non-interest bearing balloon of a portion of the balance to the end of the amortized period. A “balloon payment.”
Forgiveness	Writing down or wiping out a portion of the mortgage balance.
FRBP	Federal Rules of Bankruptcy Procedure
GSE	Government sponsored entity, includes Fannie Mae, Freddie Mac & regional Federal Home Loan Banks
HAMP	Home Affordable Modification Program
HAMP-2MP	Home Affordable Modification Program – 2^nd lien modification program
HAMP-PRA	Home Affordable Modification Program – Principal Reduction Alternative (enhanced incentives for principal write-down
LTV	Loan-to-value ratio – generally is measured only by the amount of the first lien
MRS	Bankruptcy Motion for Relief from the automatic Stay
NPV	Net present value – mathematical test to determine if a proposed modification would, over time, be financially better for the investor than a present foreclosure sale
Non-conforming	Refers to mortgage balances that do not comply with (exceed) the highest GSE (Fannie/Freddie) maximum loan for the local geographic area of the property. Some areas are designated high cost areas and have higher maximums than other areas.
PMMSR	Freddie Mac “Primary Mortgage Market Survey” rate of interest on first mortgages
POC	Bankruptcy proof of claim
PRA	Principal Reduction Alternative
SPOC	Single Point of Contact
UPB	Unpaid principal balance