1. Module 4: The RASS & Alt. RASS 49 4-1

2. The RASS 49 4-2

3. RASS Cover Letter RASS Cover Letter Lines 1-3 reiterate items discussed in SSA 49 4-3

4. RASS Cover Letter RASS Cover Letter Line 4: No other agreements or offers not disclosed to servicer 50 4-4

5. Emerging Fraud Trends: Short Payoff Fraud 50 4-5

6. Short Payoff Fraud "Any misrepresentation or deliberate omission of fact that would induce the lender, investor or insurer to agree to the terms of a short payoff that it would not approve had all facts been known." 50 4-6

7. How Short Payoff Fraud Works Seller owes $100,000, property worth $80,000 Facilitator negotiates a $70,000 payoff Facilitator doesn’t disclose existing offer for $95,000 Both sales close simultaneously 51 4-7

8. Where’s the Fraud? Failure to disclose the second offer Lender takes bigger loss 51 4-8

9. Other Agreements or Offers If other offers received servicer should be informed REALTORS® –Be aware –Avoid fraud or appearance of fraud 51 4-9

10. RASS Page 2 RASS Page 2 REALTOR® & Seller Complete Net Sheet $3,000 is pre-populated 52 4-10

11. RASS Page 2 RASS Page 2 Preliminary HUD-1 Complete RASS based on HUD-1 6% or $6,000 Max Sub lien payoff 52 4-11

12. RASS Page 2 (cont’d.) RASS Page 2 (cont’d.) Attach contract, addenda & buyer’s $$$ info Remember required contract language:  Arm’s length  90 day prohibition on re-sale Return within 3 Biz days 53 4-12

13. RASS Page 3 RASS Page 3 Sale Approved!!! 54 4-13

14. RASS Page 4 RASS Page 4 Disapproval of Sale Reasons explained May include counter offer If no counter, determine cause for disapproval and re-submit 55 4-14

15. The Alt. RASS 56 4-15

16. The Alternative RASS Purchase offer received but… Seller has not: –Requested a HAFA short sale –Qualified yet for HAFA –Received SSA Submit contract with Alt. RASS Check servicer’s web site for form or procedure No Alt. RASS 56 4-16

17. Discuss Pros & Cons Discuss Pros & Cons $3,000 Liability release More $$ for sub. liens Time Buyers not waiting ProsCons 56 4-17

18. Submitting the Alt. RASS Check servicer’s web site for package or procedure Submit Alt. RASS & contract Non-GSE loans, servicer must approve, disapprove or counter offer within 30 days of receipt of Alt. RASS & other docs. Fannie Mae, no time frame 56 4-18

19. Alt. RASS Detailed Discussion Alt. RASS Cover Letter Alt. RASS Cover Letter Takes the form of a solicitation by servicer Contact servicer for specific instructions and/or forms 57 4-19

20. Alt. RASS Page 2 Alt. RASS Page 2 Borrower has received an offer and requests a short sale 58 4-20

21. Alt. RASS Pages 2 & 3 Contain same information regarding the Program Terms and Conditions as in the SSA &/or RASS 58-60 4-21

22. Alt. RASS Page 4 Alt. RASS Page 4 Net Sheet, same as RASS Attached document list Check servicer’s web site for complete list of required docs 60 4-22

23. Alt. RASS Pages 5 & 6 Approval & Disapproval pages If disapproved, review reasons and re-submit 61 4-23

24. HAFA General Terms & Conditions Foreclosure sale suspended: –Determining eligibility –Awaiting SSA –During SSA term –Pending closing 61 4-24

25. Payment Forbearance Monthly payment? Can’t exceed 31% of gross income 61 4-25

26. First Mortgage Release Released within 30 days Waive deficiency judgment Can’t require note from borrower 61 #1 4-26

27. Subordinate Liens $6,000 total aggregate for all liens On HUD-1 Liens released 62 4-27

28. Subordinate Liens No future liability for borrower Written release required prior to releasing funds Can’t require $$$ from seller or licensee 62 4-28

29. Borrower Fees No processing fees Servicer pays all Borrower waives reimbursement of impounds and insurance 62 4-29

30. Mortgage Insurance Approval required Insurer must waive rights to collect Fannie & Freddie seek “Delegations of Authority” 62 4-30

31. Incentives – Thru 2012 Borrower: $3,000 –On HUD-1 –Servicer reimbursed Servicer: $1,500 Investor: $2,000 max. to release subordinate liens –$1 for $3 basis 63 4-31

32. Required Signatures Servicer –Actual date Original borrowers Exceptions –Deceased –Divorced –Special cases 64 4-32

33. Reporting Requirements Servicer reports to Fannie Mae –SSA executed or updated –Sale Closes –SSA Terminates 64 4-33

34. Servicer Compliance Freddie Mac is compliance agent Servicer must have staff & resources to implement HAFA 64 Email Questions or Complaints to: ssdil@hmpadmin.com 4-34

35. Problems??? Treasury HAFA –escalations@HMPadmin.comescalations@HMPadmin.com –866-939-4469 Fannie Mae –Resource_center@Fanniemae.comResource_center@Fanniemae.com –800-7FANNIE 800-732-6643 Freddie Mac –BorrowerOutreach@Freddiemac.comBorrowerOutreach@Freddiemac.com –800-FREDDIE800-373-3343 64 4-35