1. HAFA Overview Training- Agenda Overview & Benefits of HAFA 2 HAFA Process 3 HAFA Policies 4 1 2 3 4 What is HAFA? 1 1

2. 2 PART 1: What is HAFA?

3. PRESIDENT’S PLAN Housing Affordability & Stability Plan (HASP)  Housing Affordability Refinance Program (HARP) Low Cost Refinance Up To 125% Of Value  Housing Affordability Modification Program (HAMP) Drop Payment To 31% Of Homeowner Gross Monthly Income  Housing Affordability Foreclosure Alternatives (HAFA) Streamlined Short Sale Program 3 3

4. HAFA PROGRAM Overview of Treasury’s HAFA Program Begins April 5, 2010 To qualify, borrowers must : Have been considered for other foreclosure prevention options Meet HAMP eligibility Do not need to be delinquent Servicer will set monthly mortgage payment during marketing period- not to exceed 31% of the borrowers gross monthly income Servicers receive $1,500 incentive for short sales and deed-in- lieu Borrowers receive $3,000 relocation assistance at closing Borrowers are released from first mortgage lien within 10 business days from the date the servicer receives sale proceeds 4

5. 5 PART 2: HAFA Process

6. HAFA PROCESS 6

7. 7 PART 3: HAFA Policies

8. 8 ● Ensure that the property is accurately priced for listing and marketed effectively ● Work to obtain an offer that is at or near the Fair Market Value ● Work with a borrower to make contact with the Mortgage Servicer ● Help the borrower in submitting all documentation that is needed ● Assist in negotiating the offer with junior lien holders, borrowers, and others involved in the transaction ● Ensure that the sale is an “arms length transaction” ● Work to facilitate and accelerate the closing process HOW TO GET A FREDDIE MAC SHORT SALE OR DEED IN LIEU

9. DEED-IN-LIEU (DIL) ● Must have tried to do a short sale ● Must have had it listed for at least 90 days with no offers ● Must have had it listed with a REALTOR 9

10. NON- HAFA SHORT SALES 10

11. BENEFITS SUMMARY Benefits of HAFA Program ●Eliminate the need for potentially lengthy & expensive foreclosure proceedings ●Preserve conditions and value of the property ●Minimize the time a property is vacant ●Upfront pricing eliminates fake offers and low bids. ●Gives incentives to homeowners to participate. ●Full release of Debt on First Mortgage ●Freeze the foreclosure proceedings and give time to sell ●Pre-approved pricing to listing agent 11