Impact of TARP on Mortgage Companies

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Impact of TARP on Mortgage Companies
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TARP IMPACT TO LENDERS

• TARP some of the fastest legislation known to
  lenders
• Government Expectations
• Compliance with any and all requests
• Lenders Technology
• Systems may not be dynamic
• Customization may be expensive
• Timeframes may not be realistic

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Borrower Relief Programs

• HASP Home Affordability and Stability Program
• Announced March 4, 2009
• Lenders Could Start Doing Products Immediately
• Refinance
• Higher LTVs Allowed
• May Not Need MI
• Credit Score Buckets Adjusted
• Modifications Waterfall Process
• Rate Reduction
• Extension of Maturity
• Principal Forbearance

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Borrower Relief Programs

• Issues
• DU Programming Adjustments Not Immediate
• NPV Tool Not Available Until Mid to Late April
• Documents Not Available Until Early April
• Systems Changes Not Immediate
• 152 Data Fields Required Just for Reporting
• Overall Reporting Requirements
• FNMA and FHLMC Servicers Must Participate
• Lenders with Bank Held Portfolios Have the Option
  to Participate
• Still Some Questions Outstanding
• CUSTOMER ARE CALLING!!!