Loss Draft Procedures for Other Servicers First Horizon Palomino by CcX6G7


									                                                                                 Loss Draft Procedures for Other Servicers

                                          First Horizon - Palomino,        Option One Mortgage - National City Mtg. Co. Bank of America - Donna                                            ABNAMRO - Escrow              Wells Fargo Home
        Lenders and Contacts                        Isabel                     Bill Anderson          - Don Lewis                Moffitt                    WAMU - Kathy Pedon               Vice President             Mortgage - Mary Hunt
1) What is your "sign and release"                  $20,000                        $20,000                   $20,000                   $20,000                      $20,000                       $20,000                       $20,000
limit going to be for current
customers for GSEs and your
portfolio loans? Note: This
information is not representative of
Private Investor or Securitization

2) On "monitored" claims, how are      All checks to borrower and           All checks will be made   First disbursement      First $20K or first 1/3 if   Disbursing monitored          They are not moving away       First disbursement
you going to handle the disbursement   contractor. Unless borrower         payable to the borrower    immediate to borrower   borrower requests, all       claims in 1/3 increments.     from the 2004 Fannie           immediate to borrower
schedule? (For example, would the      submits affidavit that he/she is    and a Licensed             with subsequent         other disbursements are      Checks are payable to the     Mae/Freddie Mac                with subsequent
first $20,000 become immediately       acting as own contractor.           contractor in order to     disbursements made      provided after inspections   contractor and the            Guidelines. They will deal     disbursements made
payable to the borrower only; with                                         ensure payment to the      payable to contractor   and disbursed at %           customer only.                with exceptions if they        payable to contractor
subsequent checks payable to both                                          contractor.                and borrower.           complete.                                                  arise but their intention is   and borrower.
the contractor and the borrower?)                                                                                                                                                        to take a very                 Additional
                                                                                                                                                                                         conservative approach.         disbursements based
                                                                                                                                                                                                                        upon property
                                                                                                                                                                                                                        inspections. Typically
                                                                                                                                                                                                                        1/3 disbursements
                                                                                                                                                                                                                        unless there are regional
                                                                                                                                                                                                                        differences in
                                                                                                                                                                                                                        construction costs; or
                                                                                                                                                                                                                        issues related to
                                                                                                                                                                                                                        contractor down
                                                                                                                                                                                                                        payment requirements.

(3) How are you conveying this         Updated disaster procedures         Our loss Draft           Emails, Special           We are utilizing the banks   WAMU has not made any         No change in                   The revised policy has
message to your branches and                                               department resides at    memos and Intranet.       communication networks       modifications to their old    communication as they          been published on
customer service groups?                                                   our vendor. They have                              to get the policy changes    policy. They are waiting to   haven't modified their         various websites and
                                                                           been provided with                                 out.                         see what the impact is        procedures.                    through other internal
                                                                           updated disaster                                                                before they change                                           communications
                                                                           procedures in order to                                                          anything. It is business as                                  channels.
                                                                           provide special handling                                                        usual.
                                                                           of insurance claims
                                                                           relating to these

4) Additional Notes/Comments           We have taken measures to
                                       ensure the second lien and
                                       Heloc loans tied to a FHHLC
                                       first liens are monitored and
                                       have arranged communication
                                       to ensure there will no
                                       duplication in inspection orders.

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