1. HotNeutral HotNeutralWingspan ™ New Powerful Solutions include: Wingspan Specialized Default Servicing Wingspan Reperformance-Focused Workflow Sbiem™ | Shared Built In Equity Mortgage™ QBieSam™ | Quarantined Built In Equity Shared Appreciation Mods™ Opt In Settlements™ Opt In Safe Harbors™ Litigation Free Zone™ HotNeutral™ / Wingspan™ JV

2. This presentation was developed by: HotNeutral ™ HotNeutral ™ Litigation & Risk Mitigation for Lenders and Servicers and Wingspan Portfolio Advisors, LLC In cooperation with our exclusive legal network:

3. Market Context Traditional servicers are overwhelmed by the volume of defaults Credit losses are growing industry-wide Traditional default servicing practices are structured to minimize servicing cost and are biased toward foreclosure Public sentiment demands an increased focus on reperforming outcomes Servicers that don’t deliver better results face ever-increasing legal, regulatory and political liability Additional capacity and new strategies are required to improve servicer performance, reduce loss, and decrease risk

4. Better Solutions Exist 1. For target populations of high risk loans we define solutions for your portfolio that effectively reduce both future liability and current liability through the adoption of recommended best practices. 2. Our reperformance-focused strategies maximize the number of borrowers staying in their homes while responding visibly and convincingly to the political realities presented by current economic circumstances. 3. Furthermore, as a neutral third party, we can coordinate the activities of the many players involved in any delinquency while establishing safe harbors and "litigation free zones" to protect you from risk. 4. We would also be happy to talk to you about how these services may be viewed by the rating agencies and opportunities that may exist to improve your servicing and secondary market performance going forward.

5. Target High Risk Loans Bankruptcy Foreclosure Loan Resolution Subordinate Liens Owned Risk

6. Identify Risk Profile and Mitigating Solutions Review processes to identify legal risks Develop targeted solutions to eliminate risk Ensure that the proper procedures are defined, implemented, and followed Coordinate the activities of your staff and all third party participants involved in default servicing Monitor and follow-up to tune processes and ensure compliance Benefits include reduced legal, regulatory, and reputational risk as well as reduced credit losses

7. Case Study: Bankruptcy Servicing Case law and conversations with judges and trustees show a growing lack of tolerance for servicer bankruptcy practices Servicers are facing increased sanctions and civil liability for Bankruptcy servicing practices including: – Failure to show lack of adequate protection prior to filing for relief – Failure to review plan to identify objectionable terms – Failure to manage unique issues pertaining to second liens – Failure to provide notice of post-petition fees and costs assessed during the bankruptcy – Failure to track accurately pre and post-petition payments – Failure to analyze properly scrow balances after filing – Improper recovery of escrow shortages – Impermissible workouts while under bankruptcy protection – Failure to respond to workout requests from the borrower in bankruptcy – Impermissible reaffirmations

8. Litigation Free Zones Implementing best practices can not only eliminate sources of future liability but also reduce liability for alleged infractions already committed by establishing your good faith Many bankruptcy departments lack the skill, capacity, and technology necessary to implement a best practice based approach Utilizing our services establishes your intentions to improve, makes available our subject matter expertise and technology, and reduces your exposure to allegations of impropriety

9. Safe Harbors - Beyond Best Practices In addition to our advisory services, as a neutral third party we can coordinate the activities of the many players involved in any delinquency while eliminating actual or alleged conflicts and operating in “safe harbors” to protect you from risk: – Special Servicing – Credit Counseling – Legal Our “total default solution” replaces foreclosure referral with default referral We coordinate the simultaneous services provided by credit counseling agencies, default recovery servicers, law firms, and mortgage insurance companies in an impartial and borrower-centered approach At all times you remain the servicer of record

10. 10 Educates Borrower Understands the Borrower’s Financial Picture Creates a Budget Provides Unbiased Advice and Guidance Intense Borrower Outreach Avoids Foreclosure, Reduces Net Credit Loss Reduces Risk Coordinates Third Party Services and MIs Allowed Time for Workouts Coordinates with the Recovery Servicer Incentivized for Workout Success Credit CounselingRecovery ServicingLegal Services Our Total Default Solution

11. Less Risk, Net Reduction in Credit Loss Most of the cost of the Total Default Solution strategy is covered by existing fee reimbursements, fair share contributions, and workout incentive compensation plans Additional costs for recovery servicing more than offset by reduced credit losses and reduced risk: – Modest flat fee per month – Success fee

12. Added Value Going Forward In addition to our solutions for your present challenges, we would be happy to work with you to enhance future performance: – Providing for our defined default solutions at the time of loan origination – Expanded default insurance solutions may improve your secondary market execution. Our products and services may be viewed very favorably by rating agencies and secondary market investors

13. For more information please visit us at: www.HotNeutralWingspan.com