1. Mela Capital Group Mitigating Mortgage Risk LOGO

2. www.MelaCapitalGroup.comMortgage Quality Control Mela Capital GroupExperience. The MCG difference!

3. www.MelaCapitalGroup.com ContentsIndustry Issues Middle Market Needs Auditing Solutions

4. www.MelaCapitalGroup.com Industry Impact Mortgage Providers Changing regulatoryForeclosure crisis environment$130 Billion in Buybacks Dodd Frank Act Fannie Mae enhanced LQIAssignment fraud requirementsSecuritization class action HUD quality controllitigation requirements Repurchase demandsThird Party Originatoroversight Mortgage fraud epidemic

5. www.MelaCapitalGroup.com Industry Impact $170 Billion in BuybacksUnderwriter malpractice Breaches of policy, Operational procedure failure, Insider collusion, Organized fraud, Ineffective underwriting guidelines, and Third party originator risk result in repurchases.Loan Quality accountability will remain in effect long after this crisis is behind us.Securitization fraud subjects institutions handling mortgage loans to requirements of the Federal Fraud Enforcement and Recovery Act

6. www.MelaCapitalGroup.com Industry Impact Assignment Fraud Compliance before, during and after the funding process are critical to the future viability of todays mortgage banker. Comprehensive policies and procedures are not enough to protect your firm. Knowledgeable staff, ongoing oversight and routine loan quality auditing are vital to institutional health and longevity.

7. www.MelaCapitalGroup.com Industry Impact Securitization Class Action Litigation Today exposure to risk is greater than ever before. Risk management must be assessed institutionally from originations through securitizations. Operational procedural deficiencies are the catalyst for the mortgage meltdown. Insider whistle-blowing suits, Mortgage Insurance claims disputes, Shareholder complaints and foreclosure defense firms have reached epidemic proportions. Billions of dollars are being spent annually on loan quality defense as case law is handed down weekly against the industry.

8. www.MelaCapitalGroup.com Industry Impact Third Party Originator oversight The FBI confirms independent industry findings: Over 80% of mortgage fraud is conducted by industry insiders. Agencies and courts are holding Lenders accountable for their affiliate relationships. You cannot afford to be caught off guard by industry insiders colluding to defraud your firm.

9. www.MelaCapitalGroup.com Industry Impact Middle Market futures bright! The needs of middle-market Mortgage Bankers are unique. Unlike their larger counterparts, credit unions and regional banks access to credit quality resources and reserves for legal resources and repurchases may not be as robust. On the other hand, mid-market mortgage providers have more control over policy development and procedural enforcement than larger institutions, and more control often leads to better bottom-line performance.

10. www.MelaCapitalGroup.com Industry Impact 1 2 3Maximum return Secure, expedient Optional auditon your Quality paperless platform cyclesControl investment Repurchase and Agency site auditExpedient loss mitigation preparationturnaround times support Regulatory and*Management Customized quality compliance trainingreporting in plain control processes and supportEnglish

11. www.melacapitalgroup.com MCG Strategy MCG Mortgage Legal Banking Industry MBSDodd Frank ACT Mortgage Safe ACT Regulatory Insurance FFREA Warehouse lenders USPAP Legal Originators SEC Appraisal Title Agents Advisory Realtors Consumer Protection

12. www.MelaCapitalGroup.com The MCG Way Experience Automation OversightMCG auditors are MCG institutes a MCG works with theindustry-leading, layered oversight leading mortgageexperienced, manual process of quality industry technologydue-diligence control checks and innovators tounderwriters who balances by develop andreceive on-going, seasoned mortgage implement the mostadvanced loan industry comprehensive dataquality and fraud management to verification toolsidentification measure procedural available.training. effectiveness.

13. www.melacapitalgroup.com Manage Operational RiskAddress operational issues Loss MitigationOversee policy enforcement ReunderwritingIdentify opportunities Postfunding QCManage risk Prefunding QC

14. www.melacapitalgroup.com Experience $10 billion loans audited UnparalleledManual Quality Control Underwriters Experience + Exceptional Staffing = World Class Quality Industry Regulatory Participation

15. www.melacapitalgroup.com MCG Support Operational Risk AssessmentQC Policy & Procedure development Quality Control Risk Auditing Management Reporting, Management Training

16. www.melacapitalgroup.com MCG Process Fraud Compliance MitigationValuation Loan Income, Assets, File Employment Occupancy Credit

17. www.melacapitalgroup.com MCG Partners KnowledgeMCG

18. www.melacapitalgroup.com MCG Platform Paperless SAS 70/CICA 5970 Redundant compliantdata security

19. www.melacapitalgroup.com Our Clients Banks, Law Law Consumer Credit Unions Firms Enforcement AgenciesFull service suite of Mortgage Insurance Mortgage fraud Consumermortgage risk claims reviews * investigations and financial educationmitigation and quality Mortgage loan level forensic fraud audit * Mortgageassurance products auditing * Forensic training and industry training *and services to meet document support * Expert Legislative actionyour deliverable examination * witness services advisory * Policyrequirements, audit Expert witness including development *standards and reporting and underwriting Expert publicservicing loss testimony * Forensic malpractice, speaker, authormitigation needs. financial valuation, and investigations * Staff compliance * training. Expert public speaker, author

20. www.melacapitalgroup.com Quality Control Services Training Summary reporting QC Auditing Regulatory updates QC Planning Prefunding QC auditing On-site staff training Postfunding QC auditingAgency approved QC Web-based staff trainingPlanning FNMA LQI compliance Agency, HUD, OCC auditThird Party Originator HUD compliance preparationoversight Loan quality sampling Mortgage fraud mitigationPolicy and Procedure trainingdevelopment Repurchase auditingOperational efficiency testing Mortgage fraud auditingLoss mitigation strategy

21. www.melacapitalgroup.com Forensic Auditing HUD Compliance Mortgage Fraud FNMALQI Compliance Litigation Support SEC Violations

22. www.melacapitalgroup.com 360 Quality Assurance Operational Excellence TPO Loan Level Custom AuditOversight QC Training Support

23. Mela Capital Group www.MelaCapitalGroup.com Phone: 866-382-7566 Fax: 866-733-7992Email: info@melacapitalgroup.comExperience. The MCG difference! LOGO