1. The Implementation of the National Mortgage Settlement Elizabeth M. Lynch Staff Attorney MFY Legal Services, Inc. June 28, 2013 24 th Annual Fair Lending Conference – Fair Housing in an Era of Foreclosure and Abandonment Levin College of Urban Affairs, Cleveland State University

2. I. Second Mortgage Shell Game

3. National Relief Benefits to Date: March 1, 2012 – March 31, 2013 Type of ReliefNumber of Borrowers Served Percentage of Borrowers Number of People Receiving Relief Under NMS 607,015-- Number of People Receiving 1st Lien Modification 66,14010.9% Number of People Receiving 2nd Lien Extinguishment 196,73032.4% Number of People Receiving a Short Sale174,80228.8% Data obtained from Office of the Mortgage Settlement Oversight, available at https://www.mortgageoversight.com/reports/

4. New York Relief Benefits to Date: March 1, 2012 – March 31, 2013 Type of ReliefNumber of Borrowers Served Percentage of Borrowers Number of People Receiving Relief Under NMS 19,601-- Number of People Receiving 1st Lien Modification 2,91714.9% Number of People Receiving 2nd Lien Extinguishment 11,08656.6% Number of People Receiving a Short Sale2,21211.3% Data obtained from Office of the Mortgage Settlement Oversight, available at https://www.mortgageoversight.com/reports/

5. Ohio Relief Benefits to Date: March 1, 2012 – March 31, 2013 Type of ReliefNumber of Borrowers Served Percentage of Borrowers Number of People Receiving Relief Under NMS 9,593-- Number of People Receiving 1st Lien Modification 98010.2% Number of People Receiving 2nd Lien Extinguishment 2,52526.3% Number of People Receiving a Short Sale1,77718.5% Data obtained from Office of the Mortgage Settlement Oversight, available at https://www.mortgageoversight.com/reports/

6. California Relief Benefits to Date: March 1, 2012 – March 31, 2013 Type of ReliefNumber of Borrowers Served Percentage of Borrowers Number of People Receiving Relief Under NMS 177,164-- Number of People Receiving 1st Lien Modification 21,95312.4% Number of People Receiving 2nd Lien Extinguishment 49,57728.0% Number of People Receiving a Short Sale61,74634.9% Data obtained from Office of the Mortgage Settlement Oversight, available at https://www.mortgageoversight.com/reports/

7. Florida Relief Benefits to Date: March 1, 2012 – March 31, 2013 Type of ReliefNumber of Borrowers Served Percentage of Borrowers Number of People Receiving Relief Under NMS 111,913-- Number of People Receiving 1st Lien Modification 10,4009.3% Number of People Receiving 2nd Lien Extinguishment 46,07441.2% Number of People Receiving a Short Sale30,27527.1% Data obtained from Office of the Mortgage Settlement Oversight, available at https://www.mortgageoversight.com/reports/

8. Where’s the Relief? STATEPercentage of Homeowners Nationally That Received First Lien Permanent Modifications (As of March 31, 2013) New York4.4% Ohio1.6% California33.2% Florida15.7% First Lien Permanent Modifications Saves Homes. But Are All States Receiving A Proportional Number of First Lien Modifications?

9. II. Fair Housing Implications Of The National Mortgage Settlement

10. Credit Under the Settlement Type of LoanLoan to Value Ratio Credit for Every $1 Forgiven Portfolio Loan (loans kept on the books) </= 175%$1.00 LTV > 175%$0.50 (for only the portion of principal forgiven over 175%) Service for Others Loan (loans sold off – securitized) GSE loans do NOT participate in principal forgiveness) </= 175%$0.40 LTV > 175%$0.40 (settlement makes no distinction) First Lien Mortgage Modifications

11. Type of ReliefCredit for Every $1 Forgiven Second Lien Writedown Performing Second Lien (0-90 days delinquent) $0.90 Seriously Delinquent Second Lien (91-179 days delinquent) $0.50 Non-performing Second Lien (180 or more days delinquent) $0.10 Short Sale/Deficiency Forgiveness Deficiency Forgiveness on First Lien Portfolio Loans $0.45 Deficiency Forgiveness on First Lien Portfolio Loans for Service for Others Loans $0.20 Credit Under the Settlement Second Lien Extinguishments & Short Sales

12. Thank You! Elizabeth M. Lynch, Staff Attorney, MFY Legal Services, Inc. elynch@mfy.org (212) 417-3779