Citi REO Strategy & Community Relations September 15, 2009

Office of Homeownership Preservation | Copyright © 2009 Citigroup Inc. 2 Background  Industry wide, REO Departments are responsible for marketing and managing a company’s Real Estate Owned (REO) inventory effectively. They work to protect the company from legal and reputational risk, and mitigate losses by disposing of the properties expediently, and for as close to market value as possible  Generally, a portion of the REO inventory is serviced for third party investors per Pool and Servicing Agreements  Servicers can sometimes rationalize a donation or a substantial discount by documenting any cost savings from a disposition of the asset. For example, by transferring an asset to a non-profit partner or a municipality, there may be savings on commission, taxes, or property maintenance and preservation  Servicers can receive CRA consideration for the difference between the property’s fair market value and the sales price  Many non profits and municipalities interested in developing an REO acquisition program need technical assistance and financial support to build capacity to implement a program  Neighborhood Stabilization Program (NSP-HERA) funds can be used for acquisition and rehabilitation of REO’s, land banking, demolition and redevelopment of blighted structures, and establishment of financing mechanisms for purchase and redevelopment of REO’s  The Industry- government, nonprofits and servicers, continue to partner to find solutions to stabilize communities and diminish the impact of foreclosure

Office of Homeownership Preservation | Copyright © 2009 Citigroup Inc. 3 Citi REO Program Highlights Citi has a long history, and continues to support organizations and initiatives focusing on Community Stabilization and Preservation like Habitat for Humanity and National Community Stabilization Trust Citi was one of the original participants in the National Community Stabilization Trust (NCST), an alliance of Neighbor Works America, Enterprise, LISC, NUL, NCLR and the Housing Partnership Network. The First Look Program is designed to provide partners with the opportunity to consider an asset, prior to it being listed via typical mean, with negligible impact to current operations. It is also designed to be implemented in an open and transparent manner to promote quick and efficient transactions and comply with the housing bill. Implementation schedule:  Pilot in December in Minneapolis and St. Paul  Now deployed in several metropolitan areas across the nation  Over 100 properties offered through NCST to nonprofits and municipalities June 2009 – 3 properties donated in Detroit to U-Snap Bac

Office of Homeownership Preservation | Copyright © 2009 Citigroup Inc. 4 Balance between Business and Community Needs Citi REO Department and Community Relations continue to:  Evaluate and adopt best business practices, products and services  Collaborate with non-profits and government entities  Supplement business activities with grants and contributions to support programs and build capacity  Provide technical assistance and support

Office of Homeownership Preservation | Copyright © 2009 Citigroup Inc. 5 Citi REO Process for Partners  Non-profit or Government entity contacts Citi for information on property (properties located on website):   Citi refers inquiry to the National Community Stabilization Trust (if NCST is operating in region of inquiry)  NCST facilitates the transfer of the property to the organization using NCST First Look program.  If inquiry is from a region where NCST is not in operation yet, Citi and the assigned listing agent will manage the transaction.  The agency will be asked to contact the listing agent, view property and make offer through the listing agent. Citi or designated outsource vendor is responsible for contract negotiations.

Office of Homeownership Preservation | Copyright © 2009 Citigroup Inc. 6 Citi REO - Resources To view properties available for sale, please visit our website at :  The site includes the list price and the name and phone number of the listing agent or outsource company who can arrange to show the home. Toll Free Number will direct you to the responsible party at Citi for:  Non-Profits or Government entity interested in purchasing REO properties or program development  For Profit investors wanting to purchase properties in bulk  Security, Property Preservation Issues or Code Violation concerns  Vendor or Broker approval

Office of Homeownership Preservation | Copyright © 2009 Citigroup Inc. End Notes Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through its two operating units, Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Additional information may be found at or Copyright © Citigroup All Rights Reserved Citi and arc design is a registered service mark of Citigroup Inc.