Loss Mitigation Plan Purpose of Plan Overview Standard Process Details Foreclosure Process

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1 Lss Mitigatin Plan Purpse f Plan: T slicit and implement alternatives t freclsures t all brrwers wh are experiencing a financial hardship. Overview GSF Mrtgage Crpratin ( GSF ) utilizes a third-party servicer, Cenlar, fr its servicing. This plan utlines Cenlar's lss mitigatin prgram with versight perfrmed by GSF. Cenlar s Lss Mitigatin Department is structured t manage all GSE (Fannie Mae, Freddie Mac, FHA, VA, USDA (RHS), Asset Treasury HAMP & GNMA) servicing and client /private investr-wned lans in an attempt t cure the delinquency prir t freclsure. Standard Prcess Details Fannie Mae and Freddie Mac brrwers are slicited with a cmplete Lss Mitigatin package between days f delinquency and are slicited again between days f delinquency with a secnd slicitatin letter including a cmplete Lss Mitigatin package. Outside f the scpe f these tw independent slicitatins, all brrwers are referred t a HUD-apprved financial cunseling agency that can identify a brrwer's financial hardship and explain the financial assistance prgrams (i.e. alternatives t freclsure) that may be available t them. The brrwer is als prvided with state and lcal husing assistance prgrams (e.g. Hardest Hit) whenever that infrmatin is available. Once the lss mitigatin prcess has been explained, a lss mitigatin package is sent t the brrwer fr cmpletin and returned t Cenlar fr review. The cmbinatin f hardship, intent (retentin r liquidatin) and financial standing are used t determine the apprpriate freclsure alternative. Lss mitigatin packages are received by Cenlar via mail, fax and . Cenlar can als accept requests fr lss mitigatin via ur custmer facing websites. In additin, lans in an active freclsure status are called t slicit lss mitigatin ptins. Hw ften these lans are called is dependent upn investr guidelines. The calls will cntinue until we make right party cntact and the brrwer states they n lnger want/need assistance, we receive a cmpleted package r 60 days prir t the freclsure sale date in judicial states and 30 days prir t the sale date in nn-judicial states. Freclsure Prcess In all states except Nevada, we are restricted in dual tracking a lan in bth freclsure and lss mitigatin. Once a cmplete package is received in the 49 states, we wuld stp the freclsure actin until a decisin has been rendered in each case. In Nevada, the receipt f a single dcument asking fr assistance stps the freclsure actin fr a perid nt t exceed 30 days. If the brrwer has nt cmpleted his package in that time frame, we will cntinue t review him fr alternatives t freclsure, but they lse all rights under the Nevada Hme Owner Bill f Rights.

2 Freclsure Alternatives Retentin Optins The fllwing are the main freclsure alternatives that can allw a brrwer t retain wnership f the prperty: Repayment Plan - An infrmal r frmal agreement that allws the brrwer t repay the delinquent payments ver a perid f time, depending n investr guidelines. The brrwer must shw enugh surplus t cure the delinquency including the regular mnthly mrtgage payment, in rder t qualify. If the lan is in freclsure, mst investrs/clients, d nt allw a repayment plan. Frbearance - A frmal agreement that allws the brrwer t either suspend r pay reduced payments ver a perid f time, depending n investr guidelines. This type f wrkut is usually as a result f a temprary setback in incme, i.e. unemplyment, medical, natural disaster, etc. Lan Mdificatin - A change t the terms f the mrtgage fr a variable r fixed perid f time, which always includes a capitalizatin f delinquent interest, escrw advances and based n investr rules, sme r all f default related csts incurred. There are varius types f lan mdificatin ptins that include, but are nt limited t, the fllwing: Shrt Term Rate Reductin Mdificatins Permanent Mdificatins (term r rate) Payment Extensin (bumping current due date and extend maturity date) Step Rate Mdificatins Hme Affrdable Mdificatin Prgram - The United States Treasury's lan mdificatin prgram that features a trial payment perid befre a final lan mdificatin is affected. This pertains t lans that were riginated befre January 2009 and the investr must be registered with the US Treasury Department t cnsider this ptin. Streamline Mdificatin - This is a new mdificatin that became a requirement in July 2013 and affrds brrwers, at least 90 days delinquent, an pprtunity t mdify their lan withut the need fr financial dcumentatin. The brrwer must pass a series f pre slicitatin exclusins, but if they pass, we will send ut an unslicited letter ffering them a three mnth trial mdificatin under the same terms as the Standard Fannie Mae r Freddie Mac mdificatin prgrams. If they make all payments timely, a permanent mdificatin will be sent t the brrwer fr executin fllwing the same timeline as the afrementined standard GSE mdificatins. On lan mdificatins, generally, the amunt capitalized is delinquent principal and interest, escrw reserves and certain crprate advances related t freclsure actin fees. Late charges are generally waived. Unless state specified, lan mdificatins are nt recrded with the exceptin f client directin r lan is insured by FHA/VA/USDA (RHS).

3 Liquidatin Optins The fllwing are the freclsure alternatives that allw the brrwer t surrender wnership f the prperty: Pre-freclsure (shrt) sale - Allws the brrwer t sell the prperty withut fully satisfying the ttal utstanding debt. Deed in Lieu f Freclsure - Allws the brrwer t vacate the prperty and vluntarily deed the prperty back t the lender/investr. Generally, the prperty shuld be listed fr 90 days with n viable ffers, title clear and prperty must be vacant and in brm-swept cnditin at the time the deed is sent fr recrding and/r recrded. Functinal Rles and Respnsibilities Openers The Opener has respnsibility fr pening and reviewing the initial lss mitigatin package received frm the brrwer. Lss Mitigatin packages are received by a 3rd party mailrm and imaging facility. The Lss Mitigatin Wrkstatin is activated nce the package is received based n the type f wrkut. All dcumentatin is inventried and lgged int the MSP servicing system. The dcuments are indexed and imaged fr future reference. An acknwledgement letter is sent t the brrwer within tw days f receipt f the package. Required dcuments that were nt prvided in the initial package are fllwed up n with a letter t the brrwer within five business days allwing them 30 days (excluding GSE lans) r up t 14 days prir t a freclsure sale date t send in the required infrmatin detailing the dcuments and/r infrmatin needed. In additin t the abve, the Opener will assign the lan t the Call Center, s the brrwer can be called fr missing dcuments. This prcess cntinues until either the brrwer cmpletes the package, investr/client guidelines permit prir t declining r 14 days prir t a freclsure sale date. If the package is cmplete, the Opener will assign the lan t an Underwriter. If the package is cmplete and the lan is in freclsure, the freclsure prcess will be placed n hld fr 30 days t allw the decisin t be made. If the decisin is an apprval, then further hlds will be extended n the lan based n investr r insurer guidelines. Underwriters The Underwriter reviews all cmpleted packages assigned t them, t ensure that all required dcumentatin is present and up-t-date. Once the Underwriter identifies the investr/insurer/guarantr f the lan, as well as the brrwer's hardship and intent, they will g thrugh the apprpriate wrkut hierarchy in determining the initial freclsure alternative t be underwritten. Als, depending n investr/client guidelines, title is reviewed t ensure first lien status. If there are title impediments, thse wuld have t be cleared prir t issuing an apprval. If the financial status f the brrwer des nt qualify them fr a retentin ptin t be apprved, a liquidatin ptin will be recmmended. The Underwriter has 30 days t cmplete this review frm the receipt f a cmplete package. Upn cmpletin f the review, the brrwer will either receive a letter denying the requested freclsure alternative with the reasn(s) why r the final

4 apprval f the wrkut terms. This ntificatin will be sent via mail and telephne calls will be made fr a perid f up t 45 days r until the brrwer is cntacted r starts perfrming under the trial agreement. On denials, the brrwers wuld be slicited fr liquidatin ptins. Repay Team This team is respnsible fr the setup and mnitring f the terms f all trial mdificatins, frbearances r repayment plans in the MSP system. They als fllw up with the brrwer n late installments, and if nt received by the grace date (which varies by repayment plan/investr) will send ut a breach ntice t the brrwer a nd when applicable, ensure the freclsure is resumed. Clsers Clsers have the respnsibility fr preparing, mailing and fllwing up n the "clsing" dcuments. Brrwers are generally given 30 days t return the executed dcuments. If the dcuments are nt received within 30 days, the brrwer will be disqualified frm the prgram. Once fully executed dcuments are received, the Clser will file the applicable claim within the alltted timeframe pursuant t the investr requirements. The Clsers als ensure that the apprpriate system changes are made fr lan mdificatins and that all balances are cleared via the claims prcess. Shrt Sale Negtiatr These representatives are respnsible fr receiving ffers t purchase the prperty frm buyers and/r realtrs with the primary gal f receiving net sale prceeds as clse t market value, as pssible. Befre an ffer can be apprved, title is reviewed fr secnd lien hlders, wh must agree t release their lien as a cnditin f the sale. Nrmally this requires the Shrt Sale Negtiatr t negtiate a financial cntributin r settlement frm the prceeds f the sale. Als, if the lan has mrtgage insurance (Ml), the Ml cmpany must permit the shrt sale and culd als require a cntributin frm the brrwer as part f allwing the sale t be held. Certain investrs and insurers allw brrwers t enter int a Shrt Sale Prgram giving the brrwer time t list and sell the prperty; thers allw brrwers t ask fr List Price Guidance and are given a set amunt f time t slicit viable ffers n their prperty. Default Reprting All lss mitigatin activity is reprted mnthly t the apprpriate investr based n where the lan is in the lss mitigatin prcess. Exceptin reprts are prduced mnthly by the Default Reprting Department fr review and crrectin. Reprting is cmpleted within the apprpriate investr web-based systems, e.g. HmeSaver Slutins Netwrk, FHLMC Incentive, EDI Reprting, HUD's SFDMS, VA VALERI, etc. In additin, mnthly HAMP reprting t Treasury, via Fannie Mae, in its rle as HAMP prgram administratr, ccurs n r after the 4th day f each mnth. There are n financial penalties assciated with reprting after the prescribed deadline.

5 Technlgy Black Knight Lss Mitigatin Wrkstatin Cases are mnitred thrugh the lss mitigatin wrkstatin based n wrkut type and mnitred based n milestne steps in the prcess. VA Valeri System Cmmunicate directly with the VA regarding the lss mitigatin prcess and decisin making Fannie Mae HSSN Web based applicatin fr lss mitigatin case submissins Freddie Mac WP2 Web based applicatin fr lss mitigatin apprval prcess LPS Prcess Management Web-based slutin prviding a single pint f access fr all parties invlved t manage the delivery f infrmatin The infrmatin is available in real time, streamlining the client/vendr cmmunicatins and allwing fr efficient management f multiple lcatins. Prvides the ability t mnitr every step in the freclsure prcess thrugh industry standard milestnes and the evaluatin f attrney perfrmance MetaSurce (Dcument Imaging Vendr) Autmated Attrney Referral Prcess Referrals are scanned int Dcument Management, which stres dcuments related t the freclsure prcess. Allws a "paperless" envirnment, which reduces security issues. LPS Invice Management Web-based Invicing Platfrm Attrneys lad invices int Invice Management, the system checks the fee cap t the last cmpleted event and reviews fr duplicate r additinal fee apprvals. Als ensures billing is nt ver the allwable investr/insurer guidelines. Department Standards Time t review initial package by Opener: three business days frm receipt Number f fllw up calls fr missing dcumentatin: every three business days Time t perfrm final decisin: 30 business days frm date f cmplete package

6 Time t have final system updates made fr lan mdificatin: 60 business days frm receipt f executed mdificatin frm brrwer Varius internal management and exceptin reprts mnitring the lss mitigatin prcess fr timely cmpletin/remval FOR ALL CALIFORNIA RESIDENTS: Additinal Requirements by GSF GSF shall nt recrd and file unverified dcuments. In the event GSF is the successful bidder at a sheriff s sale f a freclsed prperty, GSF shall prvide all tenants with at least 90 days befre starting evictin prceedings. If the tenant has a fixed-term lease entered int befre transfer f title at the freclsure sale, GSF will hnr the lease unless it is a fraudulent lease.