1. Incentive compensation

2. A Borrower and a Servicer will be eligible for HAFA incentives upon successful completion of the HAFA Short Sale or HAFA Deed-in-Lieu if an SSA or DIL Agreement, as applicable, was executed by the Borrower and received by the Servicer on or before December 31, 2012 and complies with all the requirements of this chapter.

3. Incentive compensation The amount of any contribution paid by a mortgage insurer or other provider of credit enhancement shall not be considered in determining whether the Mortgage was paid in full and whether the Servicer is eligible for such incentive compensation. For a HAFA Short Sale or HAFA Deed-in-Lieu, incentives will be paid as explained in the following slides.

4. Borrower relocation incentive Following the closing of a HAFA Short Sale or HAFA Deed-in-Lieu in accordance with the requirements of this chapter, the Borrower shall be entitled to an incentive payment of $3,000 to assist with relocation expenses. For a HAFA Short Sale, the Servicer must instruct the settlement agent to pay the Borrower from sale proceeds at the same time that all other payments, including the payoff to the Servicer, are disbursed by the settlement agent.

5. Borrower relocation incentive The amount paid to the Borrower must appear on the HUD-1 Settlement Statement as $3,000 in line 403 (Cash to Seller) with a note to indicate "HAFA Relocation Assistance" and the closing agent must adjust line 504 (Payoff to first mortgage loan) to reflect a reduction for the same amount.HUD-1 Settlement Statement In all cases, the cash to the Borrower (i.e., Seller) shown on line 603 must be exactly $3,000.

6. Borrower relocation incentive The Servicer must advance the amount of the Borrower relocation incentive to Freddie Mac by including it with the payoff remittance. The Servicer will be reimbursed for the full amount of the Borrower relocation incentive via Fannie Mae's payment process, in its capacity as program administrator for the United States Department of the Treasury ("Program Administrator"), after the Servicer has reported the HAFA Short Sale transaction to the Program Administrator.

7. Borrower relocation incentive For a HAFA Deed-in-Lieu, the Servicer must mail a check for the relocation incentive to the Borrower within five Business Days from the date of the Borrower's execution of the deed conveying title to the Mortgaged Premises or the Borrower's vacancy and delivery of keys to the Servicer or the Servicer's agent, whichever is later, in accordance with the DIL Agreement. The Servicer will be reimbursed for the full amount of the relocation incentive via the Program Administrator's payment process after the Servicer has reported the transfer of title to the Mortgaged Premises to the Program Administrator.

8. Servicer Incentive Freddie Mac will pay the Servicer the amount of $2,200 to cover administrative and processing costs for each HAFA Short Sale completed in accordance with this chapter. Freddie Mac will pay the Servicer the amount of $1,500 to cover administrative and processing costs for each HAFA Deed-in-Lieu completed in accordance with this chapter.

9. Servicer Incentive The Servicer incentive fees will be paid via the Program Administrator's payment process after the Servicer reports the completed HAFA transaction to the Program Administrator as described in reporting requirements