Mela Capital Group Underwriting, Quality Control Review, and Third Party Originator Platform

1. Mela Capital Group Quality Control Underwriting Platform

2. Table of Contents Company overview Principles Opportunity Services Technology Staffing Reporting Pricing

3. Company Overview Mela Capital Group, founded April 2005 Principles have over 40 years of underwriting, loss mitigation and quality control management Forensic fraud and financial auditing Credit risk auditing Servicing pool pre-purchase decisioning Third party underwriting reviews Securities fraud QC underwriting audits Bulk investor credit risk and loss mitigation audits Mortgage fraud forensic investigations Expert witness testimony Law enforcement training Training, expert public speaker

4. Principles Cindi Dixon, CEO 23 years executive leadership in mortgage underwriting and risk management 20 years of Agency & Wall Street mortgage backed securities firms Underwritten/audited over $8 billion in mortgage loans 20 years underwriting management, policy development Published author, expert speaker, law enforcement trainer Nationally renown mortgage fraud expert

5. Principles Scott Ramshaw, Mgt IT Security Karl Dixon, IT Operations Manger 20+ years experience in web based applications development and creating automated cost saving custom solutions. Security Specialist responsible for supplying security updates for confidential products and internal corporate security. Developed SQL based Intranet/CRM, Linux product development and product line consolidation. Created a bandwidth monitoring system to monitor over 5000 secure servers and manage team of System Administrators. Manage all aspects of the WAN/LAN, including security, network performance, software installation, service/server hardening, server/workstation deployment, firewalls and phone systems. Maintain system backups, network administration, tool development, user support, File, Print, and Terminal servers. Build new systems and design to customer specifications and implement new network setups. Work with clients to implement and design changes to improve efficiently and profitability of operation.

6. Opportunity FNMA Loan Quality Initiative The Case for Quality Control effective July 1, 2010 A tenet for business An element of sustainable homeownership Key to eliminating loan defects and improving loan quality A gauge for competency and effectiveness Reduction of repurchase risk

7. Opportunity Key Dates Announcement SEL-2010-03 released March 29, 2010 Policy effective July 1, 2010 Expectations of FNMA Lender Partners Ownership of loan quality Establishment of goals, metrics, and targets Lender standards vs. Fannie Mae minimums

8. Third Party Originator Requirements Part A, Doing Business with Fannie Mae Subpart A3, Getting Started with Fannie Mae Requirements are now more specific and detailed Lender must satisfy itself that a third-party originator can produce quality mortgages Lender’s written QC procedures must include copies of the TPO’s QC procedures for compliance with lender standards

9. Third Party Originator Requirements

10. Third Party Originator Requirements Part D, Ensuring Quality Control (QC) Subpart D1, Lender QC Process Excerpt from D1-1-02

11. Services The Case for Quality Control Prefunding QC Review Process Prefunding QC is now detailed in its own Selling Guide section It is a mandatory requirement Lender has flexibility in applying prefunding QC Excerpt from D1-2-01

12. Services Discretionary Mortgage Selections Now mandatory Above random requirements but no specific minimums Criteria outlined, but not limited to the list provided Excerpt from D1-3-02

13. Services Reverification of Social Security Number (SSN) SSN validation mandated in Announcement SEL-2010-01 Lender must include SSN reverification in QC plan Excerpt from D1-3-03 Use of IRS Form 4506-T in the Lender’s QC Plan 4506-T requirements updated in Ann. 09-19 Lender must include 4506-T provisions in QC plan See “Note” - Lender may use same docs in post-closing QC process Excerpt from D1-3-03

14. Services Verification of Owner-Occupancy This is a new requirement The methodology is up to the lender Excerpt from D1-3-03 Reverification of Borrower’s Traditional Credit History It now includes both loans underwritten manually and through Desktop Underwriter® (DU®) or other automated underwriting systemsExcerpt from D1-3-03 Reverification of Borrower Income, Employment, and Asset Information Allows verbal reverification of employment and income with written documentation of conversation Recognizes limitations of asset verifications but outlines requirement for documentation of attempt Excerpt from D1-3-03

15. Services QC Review of Red Flag and Alert Messages This is a new requirement The lender’s QC process must include a review of any red flag messages Excerpt from D1-3-04 Verification of Data Integrity for DU

16. Services Review of DU Underwriting Recommendations For Approve/Elig. and Expanded Approval/Elig.: qualifying income must be reverified recognized challenges with reverifying assets RWC IV portion is a new addition (previously omitted) Reflects new policy from Ann. SEL-2010-01 Excerpts from D1-3-06 Home Valuation Code of Conduct (HVCC) HVCC requirements detailed in Announcement 09-01 Lender must include HVCC provisions in QC plan Excerpt from D1-3-05

17. Services Audit Review of the QC Process Lender must audit the QC function Like QC findings, audit findings are to be provided to Senior Management Senior Management is accountable for timely resolution of audit findings Excerpt from D1-3-08

18. Mela Capital Group We offer a full service platform meet all of your needs: Quality Control Auditing, Third Party Origination oversight, Internal and Agency reporting, Quality Control planning, Issue resolution, and Staff training

19. Technology State of the art integrated server platform Multi level stand-alone building Backup UPS (N+1) and diesel generator (N+1) power systems Highly secure, redundant IT infrastructure of our data centers protect your servers and web presence, and ensures you are running online, all of the time NOC monitored network 24x7x365 SAS 70 Type I security certified for Managed Hosting Independent and in-depth audit of control objectives and control activities, including controls over information technology and related processes. Microsoft® Gold Certified Partner, Red Hat® Advanced Hosting Partner, SafeHarbor® certified, and a proud member of the Green Grid. Guaranteed around-the-clock power, back it all up with our 100% Power SLA and 100% Network Uptime SLA Data center is locked off and guarded and only accessed by authorized hosting personnel via military-grade pass card access and biometric finger scan units

20. Technology Data management for distance teams is secured via Adobe® LiveCycle® Rights Management ES2 Product Specifications and security features include: LiveCycleLaunchpad ES2 interface to identify files for protection. Create and set a policy that limits users' access and privileges. All actions taken on the document are recorded for audit and compliance purposes. Proactively protect confidential data or other sensitive information from being leaked outside the organization. Restrict confidential information internally to only certain individuals. Enable more secure collaboration to improve supply chain communication. Improve compliance with industry regulations or standards.

21. Staffing MCG has a paperless, Green platform that allows us to hire the most experienced talent nationwide All personnel background checked through Accurint/Lexis Nexis for state and federal clearance All auditors pass rigorous underwriting and quality control evaluations for certification Remote security fingerprints assigned and monitored Adobe® LiveCycle® Rights Management ES2 15 years average experience risk management underwriting Recertified annually

22. Reporting New FNMA requirements Reports must cover QC reviews Format up to lender specifications Still required if QC outsourced Excerpt from D1-3-08 Reporting customized to meet client needs Random or statistical sampling can be performed by our analytics team through independent software programs Secure systems interface can be created to work ‘virtually’ through our customers platforms

24. Lender must have procedures to address response and resolution to identified defects

26. Why Mela Capital Group ? MCG wants to be your Quality Control partner! With over 40 years of quality control and underwriting leadership in policy development and enforcement, and over $8billion in loans audited, our experience is your business! We work with you to provide ongoing feedback, enhance underwriting processes, and provide trainings as guidelines and markets change. At MCG , protecting your quality and reputation are our business!

27. Contact us! Mela Capital Group Cindi Dixon, President Direct: 954.675.2319 Toll Free: 866.382.7566 E-fax: 877-633-7992 Info@melacapitalgroup.com www.MelaCapitalGroup.com Contact us to discuss your needs!