1. 1 IT Services | Business Solutions WWW.TCS.COM Copyright © 2013 Tata Consultancy Services Limited TCS CONFIDENTIAL Module IV: Invoice Clearing and Property Preservation

2. 2 IT Services | Business Solutions WWW.TCS.COM Table of Contents  Vendors  Invoice Cycle & Clearing  Property Preservation  Property Inspections  Disaster Reporting

3. 3 IT Services | Business Solutions WWW.TCS.COM Module IV: Vendors  What is Vendor Relations all about? Vendor Relations (VR) is a Accounts Payable department which acts as an intermediate between Loan Originator and Attorneys/3rd Party Vendors who provide services once the loan defaults. VR process approves or rejects the invoices sent by the vendors & attorneys who have delivered their services for all the default servicing activities like foreclosure, Bankruptcy, Property Preservation, Real estate owned (Reo), Title curative.

4. 4 IT Services | Business Solutions WWW.TCS.COM Module IV: Vendors  The accounts payable process involves reviewing an enormous amount of detail to ensure that only legitimate and accurate amounts are entered in the accounting system.  The accuracy and completeness of a company's financial statements are dependent on the accounts payable process.  A well-run accounts payable process will include: Timely processing of accurate and legitimate vendor invoices. Accurate recording in the appropriate general ledger accounts.

5. 5 IT Services | Business Solutions WWW.TCS.COM Module IV: Vendors  Who are Vendors: Realtor, contractors Anyone, to whom the Bank Originator owes a payment Attorneys Appraisers Utility Companies Counties

6. 6 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Invoicing Cycle. The Invoicing Cycle is as follows:  Input – Invoices are submitted to the loan originator (this request would be in various forms like email request, through web-based invoicing systems etc.  Process – Verifying the invoices & approving amounts as per guidelines laid down by the Bank.  Output – Approve/Reject/Adjust invoices.

7. 7 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Invoicing Cycle - (Continued…) How long does it take for an invoice to be paid?  Accounts Payable makes every attempt to pay invoices and requests for payment within three to five business days after the invoice/request has been received. If an invoice/request needs to be paid sooner, Accounts Payable needs to be informed of the date when the payment is needed to ensure the payment will be ready.

8. 8 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Internal Controls. Accounts payable need to have internal controls like regular audit and Quality Assurance checks in order to avoid:  Prevent paying an inaccurate invoice.  Prevent duplicate payment.  Determining which charges are recoverable or non-recoverable from the customers.  Be certain that all vendor invoices are properly accounted for and paid in a timely manner.

9. 9 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Challenges faced in the Accounts Payable Process. In today’s business climate, business transactions can be thought of as ‘conversations,’ where information is exchanged as documents, email messages, instant messages, and fax transmissions. Effectively communicating with your customers, partners, and suppliers through any combination of these can be a significant challenge. Therefore, it should be no surprise that companies around the globe struggle to solve this problem without increasing their labor costs.

10. 10 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Challenges faced in the Accounts Payable Process - (Continued…) In the midst of cost constraints and regulatory compliance pressures, accounts payable departments are striving to improve and extend the services they provide for their own organization, increase efficiency, and enhance business relationships.

11. 11 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments (To review and approve invoices billed by Foreclosure) Attorney invoices: Attorneys bills invoice for providing default servicing activities like:  Foreclosure - Attorneys render their service of representing Mortgage Default hearing in Courts on behalf of Lending Institutions. During a Foreclosure proceeding the Attorney is entitled to charge various Fee and Cost until the property is sold or retained by the Lending Institution in case of no sale.

12. 12 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Attorney invoices: (Important Fee/Cost Incurred during Foreclosure) Authorized Attorney Fee:  This is the legal fees which the attorney bills for handling the entire foreclosure process. There is a maximum cap limit for fees which the attorney cannot exceed. The allowable fees are different for each state and for each loan type (i.e. FHLMC, FNMA, FHA & VA). (Fee - $500 to $ 3000)

13. 13 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Mediation fees:  Mediation is a process by which a neutral third party (mediator) assists the homeowner and lender in reaching mutually agreeable resolution to a mortgage foreclosure action. Attorney bills for representing the lender during the various mediation sessions that take place. (Fee - $350 to $ 1400 per mediation session).

14. 14 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Sale cancellation / Postponement fees:  If a scheduled sale is cancelled due to any reason like borrower filing for bankruptcy, loss mitigation activity etc. attorney can charge for sale cancellation fee. (Fee - $250 per sale cancellation / postponement).

15. 15 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Title Search Charges:  Attorney order’s for a title search to confirm the lender’s lien position and whether there are any other liens on the property. (Fee - $100 to $500). Title Search Charges:  A title policy is also known as title insurance. Title policy is prepared after foreclosure sale. (Fee - $500 to $1500).

16. 16 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Title Commitment:  A title commitment is given to buyers prior to closing to inform the buyer regarding title to the property. The buyer is allowed to review the commitment and talk to an attorney or the Title company or their agent if they have any questions on any of the information on the commitment. (Fee - $100 to $500).

17. 17 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Court Cost:  As judicial foreclosure requires court’s intervention there are various court administrative cost involved like complain filing fee, clerks fee, document recording fee, courtroom service fee, court summons etc. (Fee - $100 to $2000).

18. 18 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Assignment Recording Cost:  An assignment for mortgage is a document which indicates that a mortgage has been transferred from the original lender or borrower to a third party. In many instances, after closing the lender transfers your loan to a specialized loan “servicer” who handles the collection of your monthly payments. The Assignment Fee covers the cost of recording this transfer at the local recording office. (Fee - $50 to $100).

19. 19 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Lost Note Affidavit fee:  If the original promissory note or lending document is lost, stolen or destroyed the lender’s attorney has to prepare an Affidavit of the Lost Note. The affidavit allows to outline the entire agreement from the original note, so that the lender’s interest in the property is protected. (Fee - $50 to $100).

20. 20 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Process Server:  We may have a process server who notifies all parties in person of interest of legal action in accordance with appropriate legal standards. (Fee - $100 to $500).

21. 21 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Sheriff’s Deposit:  In order to schedule a sale we need to deposit an amount with the county which is usually 10 percent of the appraised value of the property. When the actual auction takes place whatever cost was incurred towards sale of the property is deducted from the deposited amount and the balance is refunded back to the loan servicer. (Amount charged – 10 percent of the Market Value of the property).

22. 22 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Sheriff’s Commission:  The auction of the foreclosed property takes place under the supervision of the sheriff who charges commission for his services. (Fee - $200 to $600).

23. 23 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Publication Cost:  When the foreclosure sale is scheduled we need to advertise or publish notice of a foreclosure sale. (Fee - $400 to $1500).

24. 24 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Sale Cost:  When the foreclosure sale is schedule various sale related cost are incurred like Auctioneer’s fee, issuing Notice of sale, Order of sale, recording notice of sale with the county, posting and advertising cost, county administrative cost for conduction the sale. (Fee - $150 to $2000).

25. 25 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Unpaid Taxes/ Current Taxes:  Any unpaid taxes, current taxes have to be paid first in order to proceed with the foreclosure sale. Unpaid taxes may create a county’s lien on the property.

26. 26 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Recorded Deed:  When the property is sold the deed has to be recorded in name of the new property owner. (Fee - $50 to $100).

27. 27 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Bankruptcy: A legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor. All of the debtor's assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt. This effort is initiated by Attorneys on behalf of the Lending Institution.

28. 28 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (To review and approve invoices billed by Bankruptcy) Motion for Relief Fees:  A legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor. All of the debtor's assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt. (Fee - $150 to $550).

29. 29 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Proof of Claim:  The lender files for a Proof of Claim. Proof of claim is a written statement that notifies the bankruptcy court, the debtor, the trustee, and other interested parties that a creditor wishes to assert its right to receive a distribution (pay out) from the bankruptcy estate. (Fee - $150 to $500).

30. 30 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Objection to Claim\Confirmation:  An objection to confirmation is filed by the lender if they want a change in the plan of the debtor who has filed for Bankruptcy. (Fee - $150 to $300).

31. 31 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Title Curative:  Attorney order’s for a title search to confirm the lender’s lien position and whether there are any other liens on the property.  If there are any issues relating to the title attorney bills for the work done to cure defects, errors, omissions, or irregularities in title. (Fee Charged by Attorney - $300 to $1000).

32. 32 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Litigation:  Attorney bills for fees or costs which were incurred at the time of Mediation, Contested or Litigation issues, non jury trial, motion to vacate judgment etc. Hourly Fees:  The attorney provides estimated hours required to contest the case in order to protect the lenders interest. The lender approves the hourly rate and the attorney bills as per the amount approved by the lender.

33. 33 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Deed In Lieu: Attorney bills for handling Deed in lieu referrals in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.

34. 34 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Review and approve invoices billed by Deed In Lieu - Foreclosure) Authorized Attorney Fees:  Attorney charges authorized fees for handling the entire DIL process. (Fee - $350 to $400). Recording Fees:  As title of the property is transferred from borrower name to the lender name deed recording charged are incurred. (Fee - $100 to $200). Transfer Tax:  A transfer tax is a tax on the passing of title to property from one person (or entity) to another (Cost as per County).

35. 35 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments - (Continued…) Eviction:  Attorney also handles the Eviction process. It is a court-supervised procedure used to remove from a property those who are currently in possession of it. Authorized Attorney Fees:  Attorney charges authorized fees for handling the entire Eviction process. (Fee - $350 to $500).

36. 36 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Loss Mitigation: Loss mitigation is a division within a bank that mitigates the loss of the bank that handles the process of negotiation between a homeowner and the homeowner's lender. Loss mitigation works to negotiate mortgage terms for the homeowner that will prevent foreclosure. (Cost involved are mostly related to title work and are billed by the Title company Vendors $ 60 to $350).

37. 37 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  REO Realtor Vendors: The nature of billing for REO Realtor vendors is the same as Property Preservation vendors. REO realtor department also makes utility payments for electricity, gas and water/ sewer charges as the property is now owned by the lender. Property preservation vendor maintain the property before foreclosure sale whereas REO Realtor vendor maintain the property after foreclosure sale.

38. 38 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Types of payments Payment made to REO Realtor Vendors:  The purpose of REO Realtor Vendors is to protect and preserve properties that were not sold during the foreclosure sale.  Real estate owned (REO) properties, also known as foreclosures, are homes or properties that are bank-owned.  During a foreclosure sale if the property is not sold it is taken over by the bank and REO Realtor dept. preserves and maintains the property till is sold.

39. 39 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Securing - (Charges Applicable) Services may include an initial secure of the property, re-keying locks, securing doors, installing slide bolts, locks, barrel bolts, deadbolts and padlocks, installing security doors with padlocks, and/or boarding garage doors or windows. (Charges - $50 to $1500).

40. 40 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Securing - (Charges Applicable) Securing in-ground and above-ground pools, spas, Jacuzzis, and hot tubs:  Services may include securing, covering, draining, disassembling, chlorinating and/or boarding. (Fee - $50 to $1500).

41. 41 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Charges Applicable – Types of cost incurred on Property Preservation Lawn Care Charges:  Vendors bill for periodically cutting the grass and trimming shrubs. Lawn are is usually done bi-weekly. (Fee - $50 to $500).

42. 42 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Charges Applicable – Types of cost incurred on Winterization Snow Removal Charges:  Snow removal may include removing snow from the entry walk, porch and/or driveway. (Fee - $50 to $200).

43. 43 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Charges Applicable – Types of cost incurred on Winterization Winterize/De-winterize Charges:  Services provided by vendors may include draining, plumbing and heating systems, maintaining water services to houses where a community water service is involved, and/or turning off water supply to the property, and may include the use of air pressure and/or adding anti-freeze to prevent freeze-ups. (Fee - $100 to $2000).

44. 44 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Charges Applicable – Types of cost incurred on Damaged Properties Extermination and Pest Control Service Charges:  Services may include removal of vermin or other animals, termite inspection and/or treatment. (Fee - $100 to $2000).

45. 45 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Charges Applicable – Types of cost incurred on Code Violations Cleaning Charges:  Vendor need to ensure that properties are kept clean in order to address any Health and/or Safety issues. Services may include, but not be limited to, general cleaning, and cleaning refrigerators, stand alone freezers and toilets. (Fee - $100 to $1000).

46. 46 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Charges Applicable – Types of cost incurred on Code Violations Debris Removal/Personal Property Removal/Vehicle Removal Charges:  If the property is vacant and/or abandoned we may have contractors remove debris. Services may include but are not limited to the removal of hazardous or non-hazardous material, trash or personal property left behind (including non- functioning appliances, abandoned vehicles or personal property). (Fee - $100 to $1500).

47. 47 IT Services | Business Solutions WWW.TCS.COM Module IV: Invoice Cycle & Clearing  Charges Applicable – Types of cost incurred on Code Violations Mold Remediation or Treatment Charges:  Services may be provided to treat or remediate mold or mold related damage in an attempt to prevent further damage and/or deterioration of the property. Molds, fungus, mildew, and similar organisms ("Mold Conditions") may exist in the Property. (Based on a bid by the contractor).

48. 48 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Preservation  Property Preservation Property preservation involves the securing, protecting, and preparing of properties for sale that have undergone foreclosure, default, or are in bank-owned status. The financial hardships that cause these unfortunate situations leave prior homeowners unhappy about losing their homes. As a result, many of these homes are left in poor and sometimes unmarketable conditions.

49. 49 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Preservation  Property Preservation - (Continued…) Also to ensure that once the borrower defaults on the mortgage payments, the inspection, protection, and preservation of mortgage properties from waste, neglect, vacancy, or abandonment by the borrower, through natural disaster, vandalism, code violations or other hazards that may materially affect the property value or the rights and interests of the investor/insurer(s) are taken care of.

50. 50 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Preservation  Property Preservation - Responsibilities Secure homes, such as changing locks, pool maintenance, addressing damaged or dangerous conditions and winterize homes, if necessary. Conduct monthly inspections to ensure it is maintained in accordance with local standards. Complete maintenance work, such as mowing, removal of hazardous debris, and making repairs to prevent housing code and other violations. Monitoring vacant property reports.

51. 51 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Preservation  Property Preservation - Responsibilities are classified but are not limited to: Bidding, ordering, tracking, and invoicing property maintenance and identifying properties affected by disasters & which are eligible for individual assistance. Complete property registrations as required by local ordinances and resolves any violations, fines or fees. Evaluating and resolving demolition notices received from local cities or counties where the property is located. Investigating, communicating, and resolving hazard losses.

52. 52 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Inspections  Property Preservation As a first line of defense, timely and accurate property inspections provide critical information about the condition and occupancy status of a property so that steps can be taken to secure and protect it. Through early detection when issues and damages occur, properties sustain fewer and less severe damages, saving money and protecting their condition and value.

53. 53 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Inspections  Property Preservation - Interior Inspections Following a determination that a property has been abandoned, a visual “exterior only” inspection may not reveal any emergency repairs or environmental/fire hazards, which, if not addressed at once, may pose damage to the property. Early detection of problems is critical to minimize loss in the event the property is acquired by the holder and possibly conveyed to VA. Therefore, subsequent inspection reports on abandoned properties must include completion of interior inspections.

54. 54 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Inspections  Property Preservation - Exterior Inspections Inspectors visit defaulted properties to verify the occupancy status, determine the exterior condition of the property, and inform the servicer of any adverse conditions. Most importantly, inspectors verify and report on whether the property appears to be occupied or vacant.

55. 55 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Inspections  Property Preservation - Exterior Inspections The absence of personal property, the lack of yard maintenance, and changes to the owner’s mailing address may indicate that a property has been abandoned. They also provide a detailed description of the exterior condition of the property and report issues such as exterior damage, unsecured doors or windows and tall grass. Inspectors also will note the presence of “For Sale” signs, citations and notices.

56. 56 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Inspections  Broker Check Inspections: When properties are for sale, inspectors report on the effectiveness of the broker’s efforts to market the property. They will report on the presence of a “For Sale” sign, whether the property has a proper lock box combination, and the overall cleanliness and condition of the interior and exterior of the property. The presence of a “for sale” sign at a vacant property usually means it has not been abandoned but remains under the care of the owner or the owner’s real estate agent.

57. 57 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Inspections  Good Neighbor Door Hangers: The Good Neighbor Door Hanger program was developed to engage neighbors of vacant properties to keep watch on the property and report any issues that arise. Property maintenance companies put door hangers at neighboring properties, notifying them that the property is under their care and providing a point of contact to report an emergency or any issues they may observe. The program has been successful to identify thousands of issues and address them quickly. It has received praise from city officials, neighbors and clients.

58. 58 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Inspections  FEMA Inspections: After natural disasters hit, exterior visual inspections are performed to assess property damages. These inspections are performed on all types of properties – occupied or vacant, current loans or delinquent. Safeguard offers three types of FEMA inspections.  Standard Property Inspection  Standard FEMA Inspection  Extended FEMA Questionnaire

59. 59 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Inspections  FEMA Inspections - (Continued…) Standard Property Inspection:  A visual, exterior inspection. Inspectors do not enter the property. Standard FEMA Inspection:  Inspectors seek information specific to the natural disaster. Flood lines, damages and property accessibility are some of the conditions addressed. Inspectors also attempt to determine the borrower’s intent to repair or rebuild the residence.

60. 60 IT Services | Business Solutions WWW.TCS.COM Module IV: Property Inspections  FEMA Inspections - (Continued…) Extended FEMA Questionnaire:  In addition to the information gained in the standard FEMA inspection, inspectors also provide general observations about the property and surrounding neighborhood. Mold and repairs to the dwelling will be reported to the client, as will the condition and status of neighboring homes.

61. 61 IT Services | Business Solutions WWW.TCS.COM Module IV: Disaster Reporting  Disaster Reporting: A disaster is a natural or man-made (or technological) hazard resulting in an event of substantial extent causing significant physical damage or destruction, loss of life, or drastic change to the environment. A disaster can be extensively defined as any tragic event stemming from events such as earthquakes, floods, catastrophic accidents, fires, or explosions. It is a phenomenon that can cause damage to life and property and destroy the economic, social and cultural life of people.

62. 62 IT Services | Business Solutions WWW.TCS.COM Module IV: Disaster Reporting  Disaster Reporting - (Continued…) Below mentioned are some natural disasters:  Earthquakes.  Floods.  Tornados.  Volcanic Eruptions.

63. 63 IT Services | Business Solutions WWW.TCS.COM Module IV: Disaster Reporting  Disaster Reporting - (Continued…) The Federal Emergency Management Agency (FEMA) is an agency of the United States Department of Homeland Security that plays a major role in disaster reporting. The agency's primary purpose is to coordinate the response to a disaster that has occurred in the United States and that overwhelms the resources of local and state authorities. The governor of the state in which the disaster occurs must declare a state of emergency and formally request from the president that FEMA and the federal government respond to the disaster.

64. 64 IT Services | Business Solutions WWW.TCS.COM Module IV: Disaster Reporting  Disaster Reporting - (Continued…) President determines when a disaster needs to be declared. Process could take hours or weeks depending on the type and scope of the disaster. Disaster Relief Assistance is available to borrowers who reside in a ZIP Code in a county that has been defined by the Federal Emergency Management (FEMA) as a natural disaster area, at the individual level. Provide assistance to borrowers impacted as a result of a disaster with approved aid designated as Individual Assistance.

65. 65 IT Services | Business Solutions WWW.TCS.COM Module IV: Disaster Reporting  Disaster Reporting - (Continued…) Individual assistance is money or direct assistance provided by the U.S. Government or FEMA to individuals, families, and business in an area whose property has been damaged or destroyed and whose losses are not covered by insurance. It is meant to help individuals with critical expenses that can not be covered in other ways and is not intended to restore damaged property to its original condition before the disaster.

66. 66 IT Services | Business Solutions WWW.TCS.COM Module IV: Disaster Reporting  Disaster Reporting - (Continued…) The Treasury's Federally Declared Disaster Forbearance program addresses the needs of borrowers affected by a Federally Declared Disaster (FDD). This program allows the borrower to participate in a forbearance plan during which their monthly mortgage payment is reduced. The disaster area must be eligible for individual assistance as designated by the FEMA. The initial forbearance period is for 3 months, at the end of which the borrower may receive additional 3 month forbearance, if the disaster area is indicated by the FEMA incident period as continuing or the end date is beyond the end of the initial 3 month forbearance.

67. 67 IT Services | Business Solutions WWW.TCS.COM Module IV: Disaster Reporting  Disaster Reporting - Functions performed by the Investors Homeowners who are victims of natural disasters are not only faced with the task of rebuilding or repairing their properties, but also with extraordinary expenses related to the alternative living accommodations and possible unemployment as the result of damage to their workplace. Because a natural disaster can result in widespread destruction and disorder, extraordinary actions are sometimes required. In such cases, there can be no hard-and-fast rules - instead compassion, flexibility, and common sense must be used to determine how a policy should best be applied.

68. 68 IT Services | Business Solutions WWW.TCS.COM Module IV: Disaster Reporting  Disaster Reporting - Functions performed by the Investors - Fannie Mae Counsel borrower regarding relief options. Evaluate damage. Assess when borrower was adequately insured, claim is filed and settled promptly. Consider waiving late payment charges if borrower has incurred loss of income or increased expenses due to disaster. Do not report delinquency to credit bureau when hardship is attributed to disaster.

69. 69 IT Services | Business Solutions WWW.TCS.COM Module IV: Disaster Reporting  Disaster Reporting - Functions performed by the Investors - Freddie Mac Counsel borrower regarding relief options. Ascertain which mortgages are affected by the disaster. Determine the extent of damage to the property. Secure Abandoned Properties. Facilitate Insurance Claim process and monitor progress of repairs. Determine appropriate response regarding payment plans. Report loans 30 days past due that have been impacted by a disaster designated as individual assistance.

70. 70 IT Services | Business Solutions WWW.TCS.COM Module IV: Disaster Reporting  Disaster Reporting - (Continued…) Federal Housing Administration (FHA) Housing and Urban Development (HUD).  When the President declares a disaster, the special program, servicing and underwriting provisions are automatically in effect and will remain in effect for one year.  Mitigate hardships faced by borrowers in areas affected by a declared disaster.  Allow borrower time to obtain hazard insurance benefits that are available.  Reduce the impact of the disaster on claims submitted for FHA insurance benefits.

71. 71 IT Services | Business Solutions WWW.TCS.COM Agenda  TCS Connected Marketing Solutions  Case Studies  User based Design and Development Process  Responsive Web Design  Discussions Thank you