1. I NCENTIVE COMPENSATION

2. A Borrower and a Servicer will be eligible for HAFA incentives upon successful completion of the HAFA Short Sale or HAFA Deed-in-Lieu

3. I NCENTIVE COMPENSATION Contribution paid by a mortgage insurer shall not be considered in determining whether the Mortgage was paid in full and whether the Servicer is eligible For a HAFA Short Sale or HAFA Deed-in-Lieu, incentives will be paid as explained in the following slides.

4. B ORROWER RELOCATION INCENTIVE The Borrower shall be entitled to an incentive payment of $3,000 to assist with relocation expenses. For a HAFA Short Sale, the Servicer must instruct the settlement agent to pay the Borrower from sale proceeds at the same time of other payments

5. B ORROWER RELOCATION INCENTIVE The amount paid to the Borrower must appear on the HUD1 as $3,000 with a note to indicate "HAFA Relocation Assistance" In all cases, the cash to the Borrower (i.e., Seller) shown must be exactly $3,000.

6. B ORROWER RELOCATION INCENTIVE The Servicer must advance the amount of the Borrower relocation incentive to Freddie Mac. The Servicer will be reimbursed for the full amount of the Borrower relocation incentive via Fannie Mae's payment process.

7. B ORROWER RELOCATION INCENTIVE For a HAFA Deed-in-Lieu, the Servicer must mail a check for the relocation incentive to the Borrower The Servicer will be reimbursed for the full amount of the relocation incentive

8. S ERVICER I NCENTIVE Freddie Mac will pay the Servicer the amount of $2,200 to cover administrative and processing costs Freddie Mac will pay the Servicer the amount of $1,500 to cover administrative and processing costs

9. S ERVICER I NCENTIVE The Servicer incentive fees will be paid via the Program Administrator's payment process.