1. Risk Mitigation in an Unstable Market Risk Mitigation in an Unstable Market Moderator: Carol Cocca Vertice, a division of Wachovia Securities Speakers: Jacqueline (Jackie) Barend Vertice, a division of Wachovia Securities Vanessa H. Widener, Esq. Anderson, McPharlin & Conners LLP

2. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Review industry practices and explore innovative ideas on issuing and responding to repurchases, negotiating indemnifications and recovering losses or expenses through independent research, contract underwriting remedies, renegotiating contracts and/or filing claims. The session helps you define how well you know contracts, customers and partners; how well you are using the information; and how well you communicate the information to your organization.

3. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Roadmap to Recovery

4. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Know your partners Understand your contracts Recovery options Recovery plan

5. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Ask Yourself How well do you know your business partners and your contracts? What kind of audits are at your disposal? –QA audits –Forensic audits – fraud investigation –EPD audits –Delegated audits Do you know what kind of recovery you can pursue? –MI remedy –Investor repurchase –Outside sources Mortgage Brokers/Correspondent Lenders Appraisers Title Insurer/Escrow/Notary Closing Protection Letter

6. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa The Importance of Audits Effective audits put you on the road to recovery.  What loans to audit?  What to audit for?  What to do with the audit?

7. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Identify Partners and Sources of Recovery  Contractual Underwriting/ Mortgage Insurance  Mortgage Brokers / Correspondent Lenders  Appraisers  Closing Agents  Title Insurers  Escrow / Notary

8. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa  What do your contracts say?  What is included and excluded? Contract Underwriting Agreements

9. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Mortgage Brokers / Correspondent Lenders  What do your contracts say?  Contractual duties and obligations for the benefit of the lender and its assignees (secondary market purchasers).

10. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Repurchase and Indemnity Issues  Standard contracts require repurchase and/or indemnity following breach of representations and warranties.

11. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Appraiser APPRAISERS  Objective flaws  Subjective flaws  Who is the intended user?

12. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Closing Agent  Closing protection letters generally state: [Title Insurer]... agrees to reimburse you [the lender] for actual loss incurred by you in connection with such closings... when such loss arises out of: 1.Failure of... Issuing Agent... to comply with [the lender's] written closing instructions to the extent that they relate to (a) the status of the title to said interest in land or the validity, enforceability and priority of the lien of said mortgage on said interest in land... or (b) the obtaining of any other document specifically required by [the lender], but not to the extent that said instructions require a determination of the validity, enforceability or effectiveness of such other document, or (c) the collection and payment of funds due you, or 2. Fraud or dishonesty of said Issuing Agent... in handling your funds or documents in connection with such closings.

13. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Title Insurance Escrow Notary Bond

14. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Settlement Solutions  Payment plans  Stipulated judgments  Doing business again & renewing relationships

15. MBA’s Quality Assurance Conference 2008 La Costa Resort and Spa Jacqueline (Jackie) Barend MI Operations Manager, Risk Management Vertice, a division of Wachovia Securities Phone: 858-909-1261 Mail Stop: CA6853 jacqueline.barend@wachovia.com Carol Cocca Vertice, a division of Wachovia Securities Phone: 858-909-1302 Mail Stop: CA6853 carol.cocca@wachovia.com Vanessa Widener, Esq. Anderson, McPharlin & Conners LLP 444 S. Flower Street, 31st Floor Los Angeles, CA 90071 - Phone: 213-688-0080 vhw@amclaw.comQuestions?