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Chart 1 Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) Less than 2x “Truth in Lending” $79,996.

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Presentation on theme: "Chart 1 Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) Less than 2x “Truth in Lending” $79,996."— Presentation transcript:

1 Chart 1 Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) Less than 2x “Truth in Lending” $79,996 Finance Charge Total Payback=$126,070.16

2 Chart 1a Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) More than 2x “Truth in Lending” $105,651 Finance Charge Total Payback=$151,725.00

3 Chart 1b Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) More than 3.5x “Truth in Lending” $163, Finance Charge Total Payback=$210, $201,134

4 Chart 1c Differences in only rate % Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) For Amount Financed of $46, “Truth in Lending” $79,996Finance Charge $105,651 Finance Charge $163, Finance Charge Total of Payments 8.375% = $126, % = $151, % = $210,056.83

5 Interest Rate and Finance Charge Comparison “TILDS vs. Actual” Amount Financed for 30 years “Truth in Lending Disclosure Statement” vs. “Actual” “Difference of 2.812% and $40, in TILDS Finance Charge” Chart 2 July 14, 2000, July 26, 2000 and January 14, 2004 $41,494.95, $46, and $55, $132,492.05, $163, and $173, (Includes fees, force placed insurance and misc…)

6 Interest Rate Comparison “Good Faith vs. Actual” $46, Amount Financed for 30 years “Good Faith Estimate” vs. “Actual” “Bait and Switch” - almost doubled the interest rate (difference of 7.336%) in cash finance charge difference over the life of the loan $173, $79,996= $93, and monthly charge difference $ $350.00= $259.00” Chart 2a “Teaser Rate” “Bait and Switch” “Approximately Double 8% to16%

7 Finance Charge Comparison “Faith vs. Actual” $46, Amount Financed for 30 years “Good Faith Estimate” vs. “Truth in Lending Disclosure Statement” “8.375%, % and % Difference of Good Faith to TILDS $83, and Good Faith to Actual $94,656.64” Chart 2b Approximately $100,000 difference in Finance Charge “Teaser Rate” “Bait and Switch”

8 Monthly Payment Comparison “Faith vs. Actual” $46, Amount Financed for 30 years “Good Faith Estimate” vs. “Truth in Lending Statement” “8.375%, % and % monthly charge Difference of Good Faith to TILDS $ and Good Faith to Actual $ $613.00= $265.00” Chart 2c

9 Chart 2a Chart 3 – Dates range 7/14/00 to 12/5/03 Payments Made (29) Payments of $350mo.Good FaithPayments of …TILDS 1. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $350.00=14. $ $ $ $10, $550.59= $15,734.00

10 Chart 2a Chart 3a - Dates range 7/14/00 to 12/5/03 Total Misc., Fees & Insurance Fees, Misc. Posting and Insurance Flood/Home 1. $ (Good Faith) 14. $ (Misc. Posting) 2. $14.84 (Misc. Posting) 15. $ (Misc. Posting) 3. $ (Flood Ins.) 16. $ (Homeowners Ins pmt) 4. $ (Homeowners Ins pmt) 17. $ (Misc. Posting) 5. $47.20 (Misc. Posting) 18. $ (Flood Ins.) 6. $54.89 (Misc. Posting) 19. $0.01 (Late Charge.adj) 7. $ (Misc. Posting) 20. $ (Homeowners Ins pmt) 8. $45.02 (Misc. Posting) 21. $1, (county tax) 9. $ (Flood Ins.) 23. $ (Flood Ins.) 10. $ (Homeowners Ins pmt) 24. $ (Homeowners Ins pmt) 11. $ (Misc. Posting) 25. $ (county tax) 12. $ (Misc. Posting) = $9, $72.21 (Escrow Shortage pmt) Total of Interest Insurance, Misc. and Fees $24,593.78

11 Chart 3b - Payoff after 29 payments = $45,808 Total of 29 payment $24,859.94

12 Chart 3c - Simple Payoff after 29 payments $45,808 with $42,000 applied to the note (with no reversal of fees $10,669.97) Payoff with reversal of fees: $45, , Reversal of fees +$2, ( in the black) Payoff with no reversal of fees: $45, ,000 -$3,808 new principal balance Reversal of fees, force place insurance, misc…: Total $6, Fees, Misc. Posting and Insurance Flood/Home 1. $ (Good Faith) 13. $72.21 (Escrow Shortage pmt) 2. $14.84 (Misc. Posting) 14. $ (Misc. Posting) 3. $ (Flood Ins.) 15. $ (Misc. Posting) 4. $ (Homeowners Ins pmt) 16. $ (Homeowners Ins pmt) 5. $47.20 (Misc. Posting) 17. $ (Misc. Posting) 6. $54.89 (Misc. Posting) 18. $ (Flood Ins.) 7. $ (Misc. Posting) 19. $0.01 (Late Charge.adj) 8. $45.02 (Misc. Posting) 20. $ (Homeowners Ins pmt) 9. $ (Flood Ins.) 21. $ (Flood Ins.) 10. $ (Homeowners Ins pmt) 22. $ (Homeowners Ins pmt) 11. $ (Misc. Posting) = $6, $ (Misc. Posting)

13 Chart 4 – Present Value of Damages Due to Displacement and Loss of Use Option 1 (insurance view) – $20 per day – Amount of time June 5, 2003-April 5, 2011 (2,225 days)=$64,500 – Interest rate 8.375% – Financed for 30 years – Hardship for living in a burnt home (Range of 80,000 to 150,000) – Refund of $2, Total = $183, $333, Option 2 (central view) – Rent $750 per month – Amount of time June 5, 2003-April 5, 2011 (106 Months) = $79,500 – Interest rate 10.5% – Financed for 30 years – Hardship for living in a burnt home (Range of 80,000 to 150,000) – Refund of $2, Total = $269, $419, Option 3 (predatory) – Rent $950 per month includes utilities – Amount of time June 5, 2003-April 5, 2011 (106 Months) = $100,700 – Interest rate % – Financed for 30 years – Hardship for living in a burnt home (Range of 80,000 to 150,000) – Refund of $2, Total = $494, $644,242.00

14 Chart 5 - Overview Countrywide Financial 2007

15 Chart 5a – Countrywide Home Loans as a % of Countrywide Financial Countrywide Financial Businesses at a Glance Mortgage Banking – Countrywide Home Loans (CHL) Consumer Markets Division (CMD) Full Spectrum Leading Division (FSLD) Wholesale Division (WLD) Correspondent Lending Division (CLD) – Servicing Countrywide Home Loans Countrywide Servicing LP – Closing Services LandSafe

16 Chart 5a – Countrywide Home Loans as a % of Countrywide Financial Countrywide Financial Businesses at a Glance Other Businesses (Banking, Insurance, Capital Markets, Global Operations) Banking – Countrywide Bank (FSB) – Countrywide Warehouse Lending (CWL) Insurance – Balboa Reinsurance – Balboa Insurance Group – Countrywide Insurance Services

17 Chart 5a – Countrywide Home Loans as a % of Countrywide Financial Countrywide Financial Businesses at a Glance Other Businesses (Banking, Insurance, Capital Markets, Global Operations) Capital Markets – Countrywide Securities Corporation (CSC) –Countrywide Commercial Real Estate Finance (CRF) –Countrywide Asset Management (CAM) –Countrywide Servicing Exchange (CSE) Global Operations – CFC International, India Services – Countrywide International Technology Holdings, Ltd.


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