1. Homeowner Affordability and Stability Program Understanding the Logistics Amy Swaney, CMB Peoples Mortgage Company

3. Understanding the Secondary Market Borrower Brokers Servicing Investor Bankers Wall Street Secondary Market

4. Understanding Securitization The Bank Buys or Originates The Bank Packages into MBS The Secondary Market Buys the MBS and Sells to investors $100 Million Pool of Mortgages $100 Million MBS

5. Understanding Securitization -Then FNMA FHMLC Wall Street Firms Private $100 Million MBS

6. Understanding Securitization - Now FNMA FHMLC Wall Street Firms Private $100 Million MBS

8. 1 -Home Affordable Refinance Understanding the Secondary Market Federal National Mortgage Association (FNMA/Fannie Mae) Federal Home Loan Mortgage Corporation (FHLMC/Freddie Mac) 2 separate entities both currently held in conservatorship by the government

11. How Do You Know? Is your loan owned by Fannie Mae? 1-800-7FANNIE (8 a.m. - 8 p.m. EST) http://www.fanniemae.com/homeaffordable Is your loan owned by Freddie Mac? 1-800-FREDDIE (8am to 8pm EST) www.freddiemac.com/avoidforeclosure

17. Home Affordable Modification Underwriting Underwriting looks to create a 1 st mortgage housing payment of 31% of household income (principal, interest, insurances, taxes, homeowner/condo association fees, and escrow shortages- PITIAS) A new PITIAS amount is established.

18. Home Affordable Modification Underwriting Borrowers must successfully complete a three-month trial payment period, during which they will be required to pay the estimated new monthly payment. Servicers enter into a workout/forbearance plan with the borrower during the trial period, followed by a modification agreement upon successful completion.

20. Home Affordable Modification How Will Lenders Modify? • Use borrower’s monthly household gross income x 31% • Solve for new monthly “affordable” payment using the following sequential steps until the 31 percent PITIAS-to-income ratio is achieved: .

25. 3-Confidence in FNMA/FHLMC Continuing the purchase of up to $600 billion in GSE debt and GSE Mortgage Backed Securities Increase the GSE’s retained portfolio caps from $50 billion to $900 billion

26. Marilyn Ferguson It's not so much that we're afraid of change or so in love with the old ways, but it's that place in between that we fear . . . . It's like being between trapezes. It's Linus when his blanket is in the dryer. There's nothing to hold on to.

27. More Information… To receive updates and get on my email broadcast list text or email me your name, company name, email and phone number Amy Swaney,CMB 480-529-3008 [email_address]