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Chart 1 Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) Less than 2x “Truth in Lending” $79,996.

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Presentation on theme: "Chart 1 Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) Less than 2x “Truth in Lending” $79,996."— Presentation transcript:

1 Chart 1 Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) Less than 2x “Truth in Lending” $79,996 Finance Charge Total Payback=$126,070.16

2 Chart 1a Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) More than 2x “Truth in Lending” $105,651 Finance Charge Total Payback=$151,725.00

3 Chart 1b Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) More than 3.5x “Truth in Lending” $163,982.67 Finance Charge Total Payback=$210,056.83 $201,134

4 Chart 1c Differences in only rate % Variables in a Mortgage Loan Interest Rate (%) Years (expressed in months) Amount ($, with closing cost) For Amount Financed of $46,074.16 “Truth in Lending” $79,996Finance Charge $105,651 Finance Charge $163,982.67 Finance Charge Total of Payments 8.375% = $126,070.16 10.5% = $151,725.00 14.350% = $210,056.83

5 Interest Rate and Finance Charge Comparison “TILDS vs. Actual” Amount Financed for 30 years “Truth in Lending Disclosure Statement” vs. “Actual” “Difference of 2.812% and $40,616.56 in TILDS Finance Charge” Chart 2 July 14, 2000, July 26, 2000 and January 14, 2004 $41,494.95, $46,074.16 and $55,199.94 $132,492.05, $163,982.67 and $173,108.61 (Includes fees, force placed insurance and misc…)

6 Interest Rate Comparison “Good Faith vs. Actual” $46,074.16 Amount Financed for 30 years “Good Faith Estimate” vs. “Actual” “Bait and Switch” - almost doubled the interest rate (difference of 7.336%) in cash finance charge difference over the life of the loan $173,108.61-$79,996= $93,112.61 and monthly charge difference $609.00-$350.00= $259.00” Chart 2a “Teaser Rate” “Bait and Switch” “Approximately Double 8% to16%

7 Finance Charge Comparison “Faith vs. Actual” $46,074.16 Amount Financed for 30 years “Good Faith Estimate” vs. “Truth in Lending Disclosure Statement” “8.375%, 14.350% and 15.826% Difference of Good Faith to TILDS $83,986.67 and Good Faith to Actual $94,656.64” Chart 2b Approximately $100,000 difference in Finance Charge “Teaser Rate” “Bait and Switch”

8 Monthly Payment Comparison “Faith vs. Actual” $46,074.16 Amount Financed for 30 years “Good Faith Estimate” vs. “Truth in Lending Statement” “8.375%, 14.350% and 15.826% monthly charge Difference of Good Faith to TILDS $209.00 and Good Faith to Actual $350.00- $613.00= $265.00” Chart 2c

9 Chart 2a Chart 3 – Dates range 7/14/00 to 12/5/03 Payments Made (29) Payments of $350mo.Good FaithPayments of …TILDS 1. $350.0016. $350.001. $472.0115. $526.90 2. $350.0017. $350.002. $526.9016. $526.90 3. $350.0018. $350.003. $526.9017. $550.50 4. $350.0019. $350.004. $526.9018. $645.00 5. $350.0020. $350.005. $526.9019. $992.02 6. $350.0021. $350.006. $526.9020. $837.82 7. $350.0022. $350.007. $526.9021. $609.82 8. $350.0023. $350.008. $526.9022. $527.00 9. $350.0024. $350.009. $526.9023. $527.00 10. $350.0025. $350.0010. $526.9024. $574.19 11. $350.0026. $350.0011. $526.9025. $526.99 12. $350.0027. $350.0012. $526.9026.$550.60 13. $350.0028. $350.0013. $526.9027. $550.59 14. $350.0029. $350.00=14. $526.9028. $526.99 15. $350.00 $10,150.00 29. $550.59= $15,734.00

10 Chart 2a Chart 3a - Dates range 7/14/00 to 12/5/03 Total Misc., Fees & Insurance Fees, Misc. Posting and Insurance Flood/Home 1. $160.05 (Good Faith) 14. $245.20 (Misc. Posting) 2. $14.84 (Misc. Posting) 15. $305.82 (Misc. Posting) 3. $494.01 (Flood Ins.) 16. $411.00 (Homeowners Ins pmt) 4. $638.00 (Homeowners Ins pmt) 17. $609.82 (Misc. Posting) 5. $47.20 (Misc. Posting) 18. $438.00 (Flood Ins.) 6. $54.89 (Misc. Posting) 19. $0.01 (Late Charge.adj) 7. $472.01 (Misc. Posting) 20. $311.00 (Homeowners Ins pmt) 8. $45.02 (Misc. Posting) 21. $1,476.33 (county tax) 9. $493.54 (Flood Ins.) 23. $446.26 (Flood Ins.) 10. $638.00 (Homeowners Ins pmt) 24. $317.22 (Homeowners Ins pmt) 11. $925.59 (Misc. Posting) 25. $264.72 (county tax) 12. $245.20 (Misc. Posting) = $9,125.94 13. $72.21 (Escrow Shortage pmt) Total of Interest Insurance, Misc. and Fees $24,593.78

11 Chart 3b - Payoff after 29 payments = $45,808 Total of 29 payment $24,859.94

12 Chart 3c - Simple Payoff after 29 payments $45,808 with $42,000 applied to the note (with no reversal of fees $10,669.97) Payoff with reversal of fees: $45,808 -42,000. -6276.38 Reversal of fees +$2,468.38 ( in the black) Payoff with no reversal of fees: $45,808 -42,000 -$3,808 new principal balance Reversal of fees, force place insurance, misc…: Total $6,276.38 Fees, Misc. Posting and Insurance Flood/Home 1. $160.05 (Good Faith) 13. $72.21 (Escrow Shortage pmt) 2. $14.84 (Misc. Posting) 14. $245.20 (Misc. Posting) 3. $494.01 (Flood Ins.) 15. $305.82 (Misc. Posting) 4. $638.00 (Homeowners Ins pmt) 16. $411.00 (Homeowners Ins pmt) 5. $47.20 (Misc. Posting) 17. $609.82 (Misc. Posting) 6. $54.89 (Misc. Posting) 18. $438.00 (Flood Ins.) 7. $472.01 (Misc. Posting) 19. $0.01 (Late Charge.adj) 8. $45.02 (Misc. Posting) 20. $311.00 (Homeowners Ins pmt) 9. $493.54 (Flood Ins.) 21. $446.26 (Flood Ins.) 10. $638.00 (Homeowners Ins pmt) 22. $317.22 (Homeowners Ins pmt) 11. $925.59 (Misc. Posting) = $6,276.38 12. $245.20 (Misc. Posting)

13 Chart 4 – Present Value of Damages Due to Displacement and Loss of Use Option 1 (insurance view) – $20 per day – Amount of time June 5, 2003-April 5, 2011 (2,225 days)=$64,500 – Interest rate 8.375% – Financed for 30 years – Hardship for living in a burnt home (Range of 80,000 to 150,000) – Refund of $2,468.38 Total = $183,242.00- $333,242.00 Option 2 (central view) – Rent $750 per month – Amount of time June 5, 2003-April 5, 2011 (106 Months) = $79,500 – Interest rate 10.5% – Financed for 30 years – Hardship for living in a burnt home (Range of 80,000 to 150,000) – Refund of $2,468.38 Total = $269,926.00- $419,926.00 Option 3 (predatory) – Rent $950 per month includes utilities – Amount of time June 5, 2003-April 5, 2011 (106 Months) = $100,700 – Interest rate 15.826% – Financed for 30 years – Hardship for living in a burnt home (Range of 80,000 to 150,000) – Refund of $2,468.38 Total = $494,242.00- $644,242.00

14 Chart 5 - Overview Countrywide Financial 2007

15 Chart 5a – Countrywide Home Loans as a % of Countrywide Financial Countrywide Financial Businesses at a Glance Mortgage Banking – Countrywide Home Loans (CHL) Consumer Markets Division (CMD) Full Spectrum Leading Division (FSLD) Wholesale Division (WLD) Correspondent Lending Division (CLD) – Servicing Countrywide Home Loans Countrywide Servicing LP – Closing Services LandSafe

16 Chart 5a – Countrywide Home Loans as a % of Countrywide Financial Countrywide Financial Businesses at a Glance Other Businesses (Banking, Insurance, Capital Markets, Global Operations) Banking – Countrywide Bank (FSB) – Countrywide Warehouse Lending (CWL) Insurance – Balboa Reinsurance – Balboa Insurance Group – Countrywide Insurance Services

17 Chart 5a – Countrywide Home Loans as a % of Countrywide Financial Countrywide Financial Businesses at a Glance Other Businesses (Banking, Insurance, Capital Markets, Global Operations) Capital Markets – Countrywide Securities Corporation (CSC) –Countrywide Commercial Real Estate Finance (CRF) –Countrywide Asset Management (CAM) –Countrywide Servicing Exchange (CSE) Global Operations – CFC International, India Services – Countrywide International Technology Holdings, Ltd.

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