Creating Borrower “Rights” to With Respect to Concessionary Loan Modifications

February 7, 2011

Brian D. Boyle

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Source: Lender Processing Services, December 2010 Mortgage Monitor

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Source: Lender Processing Services, December 2010 Mortgage Monitor

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Source: Lender Processing Services, December 2010 Mortgage Monitor

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Source: OCC/OTS Mortgage Metrics Report, Third Quarter 2010

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Source: OCC/OTS Mortgage Metrics Report, Third Quarter 2010

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Source: OCC/OTS Mortgage Metrics Report, Third Quarter 2010

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Housing Expenses Modification Short Sale Foreclosure

Housing cash flows for “typical” underwater borrower

Modified monthly mortgage payment

$10,800 (12 months at $900)

$0 $0

Moving expense $0 $2,000 $2,000

Relocation assistance $0 ($3,000) ($2,500)

Monthly rental payment $0 $7,700 (7 months at

$1,100)

$0

12 month prospective housing expense

$10,800 $6,700 ($500)

Borrower Economics: Foreclosure vs. Alternatives

Contact Me With Questions

Brian D. Boyle

O’Melveny & Myers LLP

1625 Eye Street NW

Washington, DC 20006

202-383-5327

bboyle@omm.com

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