PROPOSAL CONSOLIDATION EXTENSION MODIFICATION (CEM) COST BENEFIT ANALYSIS 3/08

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PROPOSALCONSOLIDATION EXTENSION MODIFICATION
(CEM) COST BENEFIT ANALYSIS 3/08
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INDEX I PROPOSAL INTRODUCTION II
BASICS OF CEM III PROCESS
IV PROCESS FLOW CHART V CEM ONLINE
ANALYSIS CALCULATOR VI CEM COST ANALYSIS
WORKSHEET (INTERNAL) VII CEM COST ANALYSIS
WORKSHEET (EXTERNAL) VIII TEAM BANK OF
AMERICA CONTACT SHEET


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PROPOSAL CONSOLIDATION
EXTENSION MODIFICATION (CEM)
COST BENEFIT ANALYSIS 3/08 The CEM
was developed by New York State to significantly
reduce the cost of mortgage tax in conjunction
with financing real property located within said
state. The CEM applies to first mortgage
financing only. We, at Equity Settlement Services
Inc. are experts in this process. The proposed
process will streamline the New York Refinance
procedure from an ordering and processing
standpoint to ensure that the Bank of America
borrower is being directed with the most cost
effective savings and that the bank itself, is
being represented in the most professional
manner. Any Bank of America refinance in the
state of New York will be directed to Equity
Settlement Services Inc. for a free Cost Benefit
Analysis. This analysis will be conducted by
Equity Settlement Services Inc. to determine if
in fact the CEM process is beneficial from a cost
benefit as well as viable from a compliance
perspective and feasible from the assigning
lender. If these factors prove affirmative for
the Bank of America borrower then the CEM process
will be suggested versus a straight refinance.
There are costs and extended processing time
periods associated with a CEM that need to be
considered.
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BASICS OF CEM -Only in New York
State. -Eligible on first mortgage
refinances. -Reduces mortgage tax liability
(which can be over 2 in certain boroughs of New
York) mortgage tax fluctuates by
county -Only taxed on the new money. New
money is the refinance amount (new loan amount)
minus the unpaid principal balance (of current
loan). -As a rule of thumb The smaller the
new money the more advantageous a CEM would
be. -Two Types of CEMs and Applicable
Considerations -INTERNAL CEM (Bank
of America to Bank of America) No
additional processing time Additional
costs associated with preparation and recording
of the CEM. (see attached worksheet)
-EXTERNAL CEM (Existing lender assigning to Bank
of America) Average additional
processing time of approximately 4 to 6 weeks
depending on cooperation from
existing lender. Additional costs
associated with preparation and recording of CEM
(see attached worksheet) Assignment
fees from existing lenders which vary. This fee
may be a fixed dollar amount of a
percentage of the existing loan amount.
Collateral Attorney (existing lenders
attorney) fees for assignment preparation and
coordination. Over the last 20 years
Equity Settlement Services Inc. has developed
extensive relationships with
virtually all lenders collateral counsel. These
relationships create the most efficient
assigning process for CEMs.
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• 
  PROCESS (see flow chart)
• Step 1- Bank of America New York Loan
  Origination
• -Bank of America will submit New York State
  refinances to Equity Settlement Services Inc.
• Step 2- Equity Settlement Services Cost Benefit
  Analysis
• -Equity Settlement Services Inc. will perform a
  cost benefit analysis to determine if a CEM is
  beneficial from a cost standpoint.
• -Equity Settlement Services will determine
  viability from a compliance perspective.
• Equity Settlement Services will ascertain if an
  assignment is feasible from the existing lender.
• Step 3A- Loan Qualifies as CEM
• -If the loan does fulfill criteria and qualifies
  as a CEM, the file will be processed by Equity
  Settlement Services Inc.
• - Puleo Delisle LLC will act as counsel
  representing Bank of Americas closing in
  accordance with New York State Banking Regulation
  38.7(a) (7).
• Step 3B- Loan Does Not Qualify as CEM
• -If the loan does not fulfill criteria and
  therefore not qualify as a CEM, the file will be
  directed to Home Focus/CRES for
  processing/closing.
• Cost benefit threshold savings figure to be
  determined by Bank of America.

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CEM PROCESS FLOWCHART
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• CEM COST ANALYSIS ORDER FORM
• Email to teambofa_at_equitysettlement.com
• Fax to 631-715-3449
• Phone [phone]
• Loan Amount _______________
• Unpaid Principal Balance _____________
• What bank holds the current mortgage?
  _____________
• Current loan account ? __________________
• Original amount of current mortgage?
  _____________
• County or Zipcode of Property? _____________

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• CEM ONLINE ANALYSIS
• CALCULATOR
• Equity Settlement Services Inc. has implemented a
  CEM Online Analysis Calculator to expedite the
  process in determining if a first mortgage
  refinance is beneficial from a cost perspective
  for your borrower.
• The calculator can be accessed by our website at
  equitysettlement.com
• Or contact us at
• CEMA_at_equitysettlement.com or teambofa_at_equitysettle
  ment.com.

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CEMA Cost Analysis WorksheetInternal SAMPLE




IF STRAIGHT REFI. IF DONE AS CEMA IF DONE AS CEMA IF DONE AS CEMA
Refinance Amount (loan amount) 450,000.00 450,000.00 450,000.00 450,000.00
Unpaid Principal Balance 350,000.00 80,000.00
New Money 100,000.00 370,000.00

Borrowers MORTGAGE TAX DUE at 1.80 less 30 8,070.00 1770.00 8,070.00 6630.00
Average ASSIGNMENT FEE N/A N/A
APPROX CEMA RECORDING FEE 175.00 175.00
APPROX ASSIGMENT RECORDING FEE N/A N/A
DOCUMENT PREP. FEE (IF ANY) 250.00 250.00

TOTAL EXPENDED 8,070.00 2195.00 8,070.00 7,055.00

Projected Approximate Savings Projected Approximate Savings 5,875.00
5 Boroughs NYC 1/2 Family (2.05 MORTGAGE TAX
less 30 - lender pays first .25)
Recommended For CEMA
Not Recommended for CEMA
IF STRAIGHT REFI.
1015.00
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CEMA Cost Analysis WorksheetExternal SAMPLE




IF STRAIGHT REFI. IF DONE AS CEMA IF DONE AS CEMA IF DONE AS CEMA
Refinance Amount (loan amount) 450,000.00 450,000.00 450,000.00 450,000.00
Unpaid Principal Balance 350,000.00 80,000.00
New Money 100,000.00 370,000.00

Borrowers MORTGAGE TAX DUE at 1.80 less 30 8,070.00 1770.00 8,070.00 6630.00
Average ASSIGNMENT FEE 750.00 750.00
APPROX CEMA RECORDING FEE 175.00 175.00
APPROX ASSIGMENT RECORDING FEE 75.00 75.00
DOCUMENT PREP. FEE (IF ANY) 250.00 250.00

TOTAL EXPENDED 8,070.00 3,020.00 8,070.00 7,880.00

Projected Approximate Savings Projected Approximate Savings 5,050.00
5 Boroughs NYC 1/2 Family (2.05 MORTGAGE TAX
less 30 - lender pays first .25)
Recommended For CEMA
Not Recommended for CEMA
IF STRAIGHT REFI.
190.00
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Team Bank of AmericaEquity Settlement Services
Inc.Phone [phone] Fax [phone]Team
Email teambofa_at_equitysettlement.comApplications
only 631-715-3403