1. Presenting F1 Strategy: Charting Your Business DNA Tuesday, November 17, 2009

2. Content Of This DocumentContentExecutive SummaryObjectiveUnderstanding Strategys Weak PointsTo introduce F1 Strategy, aOur Approachbusiness advisory boutiqueTop-Down Approach focused on helping companiessuccessfully execute on theirRendering Strategies Actionablestrategies.Bottom-Up ApproachThe practice leverages cause-Implementum effect metrics and in-depthanalytics to chart the DNA of aIn-Depth Analyticsbusiness.80% Solutions Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 2 3. Executive Summary Business Advisory Boutique With Unique Hands-On Approach Enabling Fast Quantifiable Results F1 Strategy OverviewGenerates feasible Strategic solutions creatingthinking strategic advantage combinedand marketablewith added valuepragmatism Accelerates design of solutions through iterations and pilots Partnership withLeverage of Partnership with Leverage of clients to execute on FASTproprietaryclients to execute on FASTproprietary a hypothesis-drivenQUANTIFIABLE framework involving a hypothesis-driven QUANTIFIABLEframework involvingand iterativeRESULTS different levels of the and iterativeRESULTS different levels of the approach organization approachorganization Ensures successfultransition from Sustainablestrategy formulationSustainable implementation to strategy executionGenerates implementation throughsustainable through proprietarymomentum andproprietarysoftwareensures clientsoftware implementsimplementsownership Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 3 4. Understanding Strategys Weak Points Business Ideas Fail Not Because Of A Lack Of Good Strategies But Due To Poor Execution Why Do Strategies Fail?Typical Questions: How do we intend to create value for theshareholder? Major reasons behind strategy failure*: How do we execute our strategy? How are we going to make money? Incorrect implementation of a correctly How are we going to help our clients (Value designed strategyProposition)? Latent resistance by the organizations Should we continue with all our offerings? employees and partners How do we hold people accountable (for Incorrect diagnosis of strategic success and failures)? requirements Do we have he right vendor partnerships? Incorrect strategy designed for a correct What is our exposure to market risks? set of strategic requirementsFacts: Culture eats strategy for lunch You cannot manage what you do not measure A Business DNA Map will provide the link betweenstrategy formulation and strategy execution You have more information about your businessthan ever before. But are you using it to outthinkyour rivals? If not, youre failing to exploit a potentcompetitive tool** * Leo Hopf, Carlson School Of Management ** Competing on Analytics, Davenport-Harris, Harvard Business School Press 2007 Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009Page 4 5. Our Approach F1 Strategys Approach Breaks The Status Quo And Moves Beyond Mere Advice Proprietary Process And Implements Top-Down Approach F1 Strategy ImplementsF1 Strategy partners with Proprietary software suite senior management towith historical as well asStrategic Objectives identify key pain-pointsF1 Strategy simulation views to help and opportunities cause-effectmonitor and project framework links business performance DNA Map strategyusing the following formulation toperspectives: Financial, strategyExternal, Internal and execution ResourcesData Center Key Metrics Bottom-Up ApproachIn-Depth AnalyticsF1 Strategy coordinates Decision-making repertoire with subject matter leveraged by F1 Strategys experts (SMEs) to define problem solving process. and consolidate information Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 5 6. Top-Down Approach Partner With Clients To Identify Competencies And Capabilities Competency PyramidCustomer Shareholder Those critical core competencies that, in combination, deliver Platform(s) and sustain undisputed market leadership CoreCapabilities and functions that have a direct and Competencies significant impact on competitiveness Capabilities and functions that are important toEnabling Capabilities competitive advantage in an indirect or enabling wayCapabilities and functions that are basic and currentlySupporting Capabilitiesnecessary to the operation of a company Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009Page 6 7. Top-Down ApproachHelp Clients Translate Their Mission Into DesiredOutcomes Using A Proven MethodologyConverting Intangible Assets Into Tangible Outcomes Partner with client, conductMissionPartner with client, conduct Why we exist observations, perform initialobservations, perform initial assessment (e.g., SWOT)Valuesassessment (e.g., SWOT) and develop hypothesesWhats Important to Usand develop hypothesesVision What We Want to BeStrategyOur Game Plan Business DNA MapTranslate the Strategy Business DNA MetricsMeasure and FocusTargets and InitiativesWhat We Need To DoPersonal ObjectivesWhat I Need To Do OUTCOMESSource: Robert Kaplan and David Norton Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009Page 7 8. Top-Down Approach Implementing Strategies Depend On Understanding The Cause-Effect Between Strategic Objectives Sample Business DNA Map Financial-- 40%Optimize MarketIncrease Business Increase Profitability Presence VolumeClient-- 25% Manage PriceProvide exceptional Improve ClientCompetitiveness Customer ServicePerformanceInternal-- 20%Reduce Cost to Manage SalesImplement criticalAchieve superior Risk Produce Performancetechnology projects and Quality RatingResources-- 15%Manage Vendor Reduce Turnover performance Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009Page 8 9. Rendering Strategies Actionable A Business DNA Map Is Translated Into Objectives, Key Performance Indicators And Action Items From Business DNA Map To Actionable MetricsFinancial -- 40% Optimize MarketIncrease Business Increase Profitability Presence VolumeWell defined metrics are used to Clientvalidate or readdress strategic -- 25%Manage PriceCompetitiveness Provide exceptionalCustomer Service Improve ClientPerformanceobjectives. They will helpmanagers understand cause- Internaleffect correlations. -- 20% Reduce Cost to Manage SalesImplement criticalAchieve superior Risk Produce Performancetechnology projects and Quality Rating Resources -- 15% Manage Vendor Reduce Turnover performance BizCase ObjectiveMeasure Weight Target Metric Actuals FinancialF1 Increase Profitability Net Income20% -- 40%F2 Optimize Market Presence BizCase Share of Market 10% F3 Increase Business Volume Total Sale Volume 10% Client C1 Manage Price Competitiveness Competitive Score 10% -- 25%C2 Provide exceptional Customer Service Client Satisfaction Score5% C3 Improve Client Performance Client Average Score10%Objectives and themes in a Business DNA Map are used toInternal -- 20%I1I2I3 Reduce Cost to Produce Manage Sales Performance Implement critical technology projectsCost Per Unit (CPU)$/units per Account ExecutiveIT Score 5% 5% 5%build an actionable codecard I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-monthcumulative "Good" rating 5% used to clearly communicate ResourcesR1 Reduce Turnover% Turnover 5% strategic expectations down to-- 15%R2 Manage Vendor performanceVendor Performance Score10%the individual levels. Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009Page 9 10. Bottom-Up Approach Business DNA Metrics Are Quickly Built Using Available Client Systems To Standardize The Use Of Data Building Blocks Of Business DNA CodesClient DataClient DataCentralized DataCentralized Data Analytical ReportingAnalytical ReportingBusiness DNA Codes Business DNA Codes BizCaseObjectiveMeasure Weight Target Metric ActualsCapacity ModelFinancial F1 Increase ProfitabilityNet Income 20%-- 40%F2 Optimize Market PresenceBizCase Share of Market10%InformationF3 Increase Business VolumeTotal Sale Volume10% Client PerformanceClient-- 25%C1 Manage Price CompetitivenessCompetitive Score10% Activity Based CostingC2 Provide exceptional Customer ServiceClient Satisfaction Score5% C3 Improve Client PerformanceClient Average Score 10% ForecastingInternal-- 20%I1 Reduce Cost to ProduceI2 Manage Sales PerformanceI3 Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score5%5%5% CompensationI4 Achieve superior Risk and Quality RatingPercent of BU's with 12-month5% cumulative "Good" rating Resources R1 Reduce Turnover % Turnover 5%-- 15% BizCaseR2 Manage Vendor performance Vendor Performance Score 10% SingleObjectiveMeasure WeightTarget Metric ActualsFinancialF1 Increase ProfitabilityNet Income20%-- 40% F2 Optimize Market PresenceBizCase Share of Market 10%Source F3 Increase Business VolumeTotal Sale Volume 10% Customer Client C1 Manage Price CompetitivenessCompetitive Score 10%Of-- 25% C2 Provide exceptional Customer ServiceClient Satisfaction Score5%CostComplaintsC3 Improve Client PerformanceClient Average Score10% TruthInternal-- 20% I1 Reduce Cost to Produce I2 Manage Sales Performance I3 Implement critical technology projectsCost Per Unit (CPU)$/units per Account ExecutiveIT Score 5% 5% 5%I4 Achieve superior Risk and Quality RatingPercent of BU's with 12-month5%cumulative "Good" rating ResourcesR1 Reduce Turnover % Turnover 5% Databases-- 15% R2 Manage Vendor performanceBizCaseVendor Performance Score10%ObjectiveMeasureWeight Target Metric ActualsFinancial F1 Increase ProfitabilityNet Income 20%-- 40% Daily download F2 Optimize Market Presence F3 Increase Business Volume BizCase Share of MarketTotal Sale Volume10% 10%uses agreed uponClient-- 25%C1 Manage Price Competitiveness C2 Provide exceptional Customer Service Competitive ScoreClient Satisfaction Score10% 5%definitions toC3 Improve Client PerformanceClient Average Score 10% compile data into atargetInternal-- 20%I1 Reduce Cost to ProduceI2 Manage Sales PerformanceI3 Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score5%5%5% I4 Achieve superior Risk and Quality RatingPercent of BU's with 12-month5% cumulative "Good" rating central data mart Resources-- 15%R1 Reduce Turnover R2 Manage Vendor performance % TurnoverVendor Performance Score5% 10%currentTurn QualityTime (# of issues) Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009Page 10 11. Bottom-Up Approach Data Is Mined Without Introducing Complex And Expensive Systems Or Disrupting Business Flow Bottom-Up Approach To Single Source of Data Client Data Client DataCentralized Data Centralized DataAnalytical ReportingAnalytical ReportingBusiness DNA Codes Business DNA Codes Single Resources NeededSourceOf Truth Depending on final solution (e.g., SQL, Oracle), an assessment of technical resources will be neededYes Can we get the data Noconsistently withPrototype 1 to 2 FTEs will be needed to prototype theminimum effort?single source of truth, using MS Access for example Yes No Test and recommend Is the data correct? data fixes 1 to 2 FTEs will be needed to test the dataYes No Work with IT to StartDoes the data identify data needsneeded exist? and build databaseMini-projects to be launched depending on recommendations and data needs Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009Page 11 12. Bottom-Up ApproachInformation Is Organized To Allow In-Depth AnalysesWhile Supporting And Not Paralyzing Decision-MakingThree Levels Of InformationClient DataClient DataCentralized DataCentralized DataAnalytical Reporting Analytical ReportingBusiness DNA CodesBusiness DNA Codes High level overview of All products Conforming JumboAlt-AWeek starting01/28 02/0402/1102/18 02/2501/2802/04 02/1102/18 02/2501/2802/0402/1102/1802/25 01/2802/0402/1102/1802/25RankWholesale 32 1 1 1 3 2 11 1 32 1 114 333 3Correspondent 43 3 2 1 4 3 32 1 43 3 215 444 4Retail43 2 2 1 4 3 22 1 43 2 215 444 4 Diff from 1st Wholesale (0.180) (0.140)0.0000.000 0.000(0.180) (0.140)0.000 0.0000.000(0.180)(0.140) 0.0000.0000.000 (0.180) (0.140) 0.0000.0000.000Correspondent (0.240) (0.200) (0.190)(0.140)0.000(0.240) (0.200) (0.190) (0.140) 0.000(0.240)(0.200)(0.190) (0.140)0.000 (0.240) (0.200) (0.190) (0.140) 0.000Retail(0.215) (0.197) (0.165)(0.165)0.000(0.215) (0.197) (0.165) (0.165) 0.000(0.215)(0.197)(0.165) (0.165)0.000 (0.215) (0.197) (0.165) (0.165) 0.000 Executive business to compare channelDiff from 3rd Wholesale (0.040) (0.030)0.0320.041 0.065(0.040) (0.030)0.032 0.0410.065(0.040)(0.030) 0.0320.0410.065 (0.040) (0.030) 0.0320.0410.065Correspondent (0.151) (0.110) (0.096)(0.040)0.057(0.151) (0.110) (0.096) (0.040) 0.057(0.151)(0.110)(0.096) (0.040)0.057 (0.151) (0.110) (0.096) (0.040) 0.057Retail(0.151) (0.110) (0.096)(0.040)0.057(0.151) (0.110) (0.096) (0.040) 0.057(0.151)(0.110)(0.096) (0.040)0.057 (0.151) (0.110) (0.096) (0.040) 0.057 Price Wholesale (1.011) (1.012) (1.095)(1.122)(1.212)(1.011) (1.012) (1.095) (1.122) (1.212)(1.011)(1.012)(1.095) (1.122) (1.212)(1.011) (1.012) (1.095) (1.122) (1.212)Correspondent (1.011) (1.012) (1.075)(1.120)(1.212)(1.011) (1.012) (1.075) (1.120) (1.212)(1.011)(1.012)(1.075) (1.120) (1.212)(1.011) (1.012) (1.075) (1.120) (1.212)Retail(1.011) (1.012) (1.095)(1.122)(1.212)(1.011) (1.012) (1.095) (1.122) (1.212)(1.011)(1.012)(1.095) (1.122) (1.212)(1.011) (1.012) (1.095) (1.122) (1.212) performance in theOver the last three weeks all threeOn February 14th base price in theJumbo's pricing has been especially Alt-A market size has remained Decision-Makingchannel competitive positions in the Wholesale channel was improvedstrong in the ARM market, which small and its pricing has been leftmarketpalce have improved from anby 12.5 bps.explains a 75/25 ARM/Fixedstable.average of 2 or 3 to 1 or 2. breakdown. This change was motivated byAt this point without better productThe improvement can be mainlyfindind that the price elasticity was All channels have seen market features pricing changes would beattributed to a considerably sufficient to make higher overall share increase, though, the marketineffective.improved base price for therevenue by increasing volume. remains small. marketplace, against eachConforming Fixed program. Jumbo pricing has also beenimproved. The current low volumesin the market, however, are likely topersist and keeping Jumbo no morethan 7% of the overall product mix. other and over time Conforming 30-yr Price (6%) comparisons on 2/14/2008 Non-peer groupPeer groupHFWLendersN. Califor niaS. Califo rnia Bellevue Dallas 20 2020 20 94%94% 94%94%Peer Percentile 15 1515 1510 1010 10Conforming 30-yr Price (6%) comparisons on 2/14/2008Non-peer group 5555Peer group 0000 HFW -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750-0.800-0.950-1.100-1.250-1.400-1.550-1.700-1.850-2.000-2.150-2.300-2.450-2.600-2.750-0.800-0.950-1.100-1.250-1.400-1.550-1.700-1.850-2.000-2.150-2.300-2.450-2.600-2.750-0.800-0.950-1.100-1.250-1.400-1.550-1.700-1.850-2.000-2.150-2.300-2.450-2.600-2.750Pric eLenders N. CaliforniaS. CaliforniaBellevue Dallas Provid20 Provid , -1.875 Provid20, -1.875 20 Provid , -2.250 20, -1.875 94%94% 94% 94% HFW , -1.666HFW , -1.666 Peer Percentile HFW , -1.791 HFW , -2.026 TBW, -1.565 TBW , -1.565 TBW, -1.605 Chase , -1.95115 15 US , -1.579 15TBW, -1.89015 US Bank , -1.529US , -1.529Flag, -1.508Flag , -1.508 Citi , -1.562CW , -1.875CW, -1.500 10 WAMU , -1.50010 Flag , -1.508 10NatCity, -1.87510WAMU, -1.500 Vertice, -1.405 Vertice , -1.505US Bank , -1.754 Vertice , -1.405CW, -1.375 CW, -1.500 Flag , -1.723 55 NatCity , -1.500 5 5NatCity , -1.375 NatCity , -1.375 Mortg IT, -1.629 C iti , -1.312Citi, -1.312 WAMU, -1.500Horizon , -1.625Information aggregated butHSBC , -1.312 0 HSBC , -1.312 0 HSBC , -1.4000WF , -1.614 0-0.800-0.950-1.100-1.250-1.400-1.550-1.700-1.850-2.000-2.150-2.300-2.450-2.600-2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750-0.800-0.950-1.100-1.250-1.400-1.550-1.700-1.850-2.000-2.150-2.300-2.450-2.600-2.750Mortg, -1.143 WF , -1.349BOA , -1.533Managerial Monitoring Mortg IT, -1.143 Aurora , -1.125 Pric e Aurora, -1.125 BOA , -1.323H SBC, -1.500 WF, -1.078 Chase , -1.106Mortg , -1.293WAMU, -1.500 BOA , -1.023WF , -1.078H orizon , -1.250Provid Citi, -1.437Provid Provid Provid, -1.875 , -1.875 , -2.250H orizon , -1.000 HFWBOA , -1.023 , -1.875 , -1.666 HFW Aurora, -1.125, -1.666 HFWVertice , -1.355, -1.791HFW , -2.026Wachovia , -0.984Horizon , -1.000Chase, -1.066 TBW Aurora , -1.125 , -1.605 TBW , -1.565 TBW , -1.565 , -1.059Chase , -1.951 Chase , -0.836 U S BankW acho, -0.984, -1.529USWacho, -1.529US Wachovi , , -1.059 -1.579 Branch TBW , -1.890DateFlag, -1.508 Flag, -1.508 Citi, -1.562CW , -1.875CW , -1.500WAMUBranch , -1.500 N. CA FlagS.Vertice CAWA, -1.508 AZ-1.505 TXFLAL NatCity NC NY , -1.754 MA, -1.875 NJ02/0102/04 02/0502/0602/07 02/0702/10 WAMU , -1.500 For t Lauderdale Vertice, -1.405,US BankDetroitChar lotteCW, -1.500 New Jersey Vertice, -1.405CW , -1.375 Flag, -1.723 20NatCity 20, -1.375Rank NatCity Conf 30-1.375Fixed 20 , Yr32 NatCity1 20 1 -1.500 1,1 1Mortg IT 1 1 , -1.629 1 1Conf 30 Yr Fixed211 22 1 1 94%94%Citi , -1.31294% WAMU, -1.50094% Horizon CitiHSBC , -1.312 , -1.312 H SBCConf , -1.312 Fixed 15 Yr 43HSBC3 ,3-1.4003 3 3WF 33 ,, -1.614 2 -1.625 1Conf 15 Yr Fixed212 22 2 2 151515 WF15 , -1.349Mortg IT , -1.143 Mortg , -1.143 Govt 30 Yr Fixed4 3BOA 3 33 3 3BOA33 -1.533 2 ,1Govt 30 Yr Fixed122 23 2 2 Aurora, -1.125Aurora, -1.125 , -1.323 HSBC , -1.500granular enough to inform and 10 WF 10, -1.078Chase10 -1.106 Jumbo 30 Yr Fixed, 43Mortg3 10,-1.250-1.29333 3 3 WAMU3 3 , -1.50021Jumbo2 Yr Fixed 3011 22 2 2 BOA, -1.023WF, -1.078 H orizon , C iti , -1.437 5 Conf 5/1 Arm43 3 , 5 3 3 3 3 33 21Conf 5/1 Arm 33 5 43 4 5Horizon, -1.000BOA, -1.023Aurora-1.125 Vertice , -1.355 55 Wachovia, -0.984 Horizon , -1.000Chase , -1.066Aurora , -1.125Govt 3/1 Arm 4 33 , -1.059 33 3 3 3 , -1.059 321Govt 3/1 Arm 35 4 42 2 4and Simulation Chase , -0.836 Wacho, -0.984Wacho Wachovi 0000Jumbo 5/1 Arm4322222 2 2 21 Jumbo2 Arm 2 5/11 21 1 2 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750-0.800-0.950-1.100-1.250-1.400-1.550-1.700-1.850-2.000-2.150-2.300-2.450-2.600-2.750-0.800-0.950-1.100-1.250-1.400-1.550-1.700-1.850-2.000-2.150-2.300-2.450-2.600-2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 Detroit Fort LauderdaleCharlotteNew Jer sey 20 Diff from 1st20Conf 30 Yr Fixed (0.180)20(0.140)200.0000.0000.000 0.0000.0000.0000.0000.000 0.000(0.140)(0.100) (0.060)(0.020) (0.068) (0.116) (0.164) Provid, -2.000 Provid94%, -2.250Provid 94% , -2.125Provid 94% , -2.12594%HFW , -1.761 HFW, -1.941 Conf 15 Yr FixedHFW(0.180) (0.140) (0.100) (0.060) (0.020) (0.068) (0.116) , -1.831HFW, -1.851(0.164) (0.212) (0.260)(0.308)(0.140)(0.100) (0.060)(0.020) (0.068) (0.116) (0.164)CW , -1.62515 TBW , -1.89015 TBW, -1.66515 CW , -1.75015TBW , -1.605 CW , -1.750Govt 30 Yr Fixed , (0.180) (0.140) (0.100) (0.060) (0.020) (0.068) (0.116)Vertice-1.655 NatCity, -1.750 (0.164) (0.212) (0.260)(0.308)(0.140)(0.100) (0.060)(0.020) (0.068) (0.116) (0.164) , -1.605Citi, -1.687US Bank , -1.654Vertice US Bank , -1.554 10 US Bank , -1.654 10 Jumbo 30 Yr Fixed , -1.625CW (0.180) (0.140)10 (0.100) (0.060) (0.020) , -1.665TBWUS Bank (0.068) (0.116) , -1.579 10 (0.164) (0.212) (0.260)(0.308)(0.140)(0.100) (0.060)(0.020) (0.068) (0.116) (0.164)NatCity , -1.5 Flag , -1.623 Flag , -1.523 Citi, -1.562W AMU , -1.5005Vertice, -1.6055 W F Conf 5/1 Arm , -1.519(0.180) (0.140) 5 (0.100) (0.060) (0.020) -1.558 Flag , (0.068) (0.116)5 (0.164) (0.212) (0.260)(0.308)(0.140)(0.100) (0.060)(0.020) (0.068) (0.068) (0.068)validate decision-making Flag, -1.473 WF, -1.513WAMU Govt 3/1 Arm, -1.500Vertice (0.180) (0.140) (0.100) (0.060) (0.020)-1.535, -1.555(0.068) (0.068) (0.068) (0.068) (0.068)(0.068)(0.140)(0.100) (0.060)(0.020) (0.068) (0.068) (0.068)WF, -1.459 WAMU, -1.500HSBC , -1.400 WF , 00 Mortg IT Chase , -1.321 HSBC , -1.488 Jumbo 5/1 Arm-1.389(0.180) (0.140) 0 (0.100) (0.060) (0.020)-1.521, Chase , (0.068) (0.068)0(0.068) (0.068) (0.068)(0.068)(0.140)(0.100) (0.060)(0.020) (0.068) (0.062) (0.055)-0.800-0.950-1.100-1.250-1.400-1.550-1.700-1.850-2.000-2.150-2.300-2.450-2.600-2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 HSBC, -1.250C hase , -1.456 C hase , -1.321HSBC , -1.500BOA , -1.223Mortg IT , -1.419Citi , -1.312 W AMU , -1.500Citi , -1.187NatCity , -1.375Horizon , -1.250Horizon, -1.250 Aurora , -1.125Horizon , -1.250 Diff from 3rd Conf 30 Yr Fixed BOA , -1.223 (0.040) (0.030) 0.032BOA 0.0320.032 , -1.223 0.032 0.032 0.0320.032 0.041 0.065 0.0650.065 0.065 0.0650.065 0.065 0.065 , -1.093ProvidBOA , -1.223 -2.000, ProvidAurora , -1.125 , -2.250 ProvidAurora, -1.125, -2.125 Provid Mortg ITW achovia, -1.009 HFW achoviaW ,, -1.761 -1.209Conf 15 Yr Fixed, -1.941HFW W achovia , -1.059 (0.151) (0.110) (0.096) (0.096) -1.034 HFWWachovia(0.096) (0.096) (0.096) , , -1.831HFW (0.096) (0.096) , -1.851-2.125 , (0.040) 0.0570.0570.057 0.057 0.0570.057 0.057 0.057 ,-1.125 , -1.625 TBWHorizon CW Aurora TBW, -1.605 CW Govt 30 Yr Fixed-1.890(0.262) (0.190) (0.223) IT (0.223) , -1.655NatCity , , -1.750 TBW Vertice Mortg , -1.665 (0.223) (0.223) (0.223) CWNatCity (0.223) , -1.750(0.223) , (0.121) 0.048 -1.750 0.0480.048 0.048 0.0480.048 0.048 0.048, -1.605 Citi , -1.687US Bank , -1.654 TBW Vertice US Bank , -1.554US Bank Jumbo 30 Yr , -1.654 Fixed(0.373) (0.270) (0.350) (0.350) -1.625 CW, (0.350) (0.350) (0.350) US Bank (0.350) (0.350), -1.665 (0.202) 0.040 , -1.5790.0400.040 0.040 0.0400.040 0.040 0.040 NatCity , -1.5 Flag, -1.623Flag , -1.523C iti, -1.562 WAMU, -1.500VerticeConf 5/1 -1.605 , Arm (0.484) (0.350) (0.478) (0.478) (0.478) (0.478) (0.478) WF , -1.519Flag(0.478) (0.478) (0.283) 0.031 , -1.5580.0310.031 0.031 0.0310.031 0.031 0.031Flag, -1.473 WFGovt 3/1 Arm, -1.513(0.595) (0.430) (0.605) (0.605) (0.605) (0.605) (0.605) WAMU , -1.500 Vertice (0.605) (0.605) (0.364) 0.022 , -1.5550.0220.022 0.022 0.0220.022 0.022 0.022WF , -1.459 WAMU, -1.500 HSBC , -1.400WF, -1.535Chase , -1.321H SBCJumbo , -1.4885/1 Arm(0.151) (0.110) IT (0.096) (0.096) (0.096) (0.096) (0.096)Mortg , -1.389 Chase (0.096) (0.096) (0.040) 0.057, -1.521 0.0570.057 0.057 0.0570.057 0.057 0.057HSBC, -1.250Chase , -1.456Chase , -1.321 HSBC , -1.500 BOA , -1.223Mortg IT, -1.419Citi , -1.312 WAMU , -1.500 Citi , -1.187NatCity, -1.375 Horizon , -1.250 H orizon, -1.250 Aurora , -1.125 Price Horizon Conf , -1.250 Fixed30 Yr(1.011) (1.012) (1.095) , -1.223BOA(1.095) (1.095) (1.095) (1.095)BOA (1.095) ,(1.095) -1.223 (1.122)(1.212)(1.212)(1.212) (1.212)(1.212) (1.212) (1.012) (1.212) , -1.093 BOA, -1.223Mortg IT Wachovia, -1.009 WachoviaConf15 Yr Fixed, -1.209 (1.011) (1.012) (1.095),,-1.059Aurora Wachovia -1.125 (1.095) (1.095) (1.095) (1.095)Aurora Wachovia (1.095), -1.125(1.095) , -1.034 (1.122)(1.212)(1.112)(1.105) (1.012)(1.212) (1.212) (1.213) (1.212)Horizon Aurora Govt -1.125 Fixed,30 Yr(1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) NatCity Mortg IT (1.095) (1.095) (1.122)(1.212)(1.012)(0.998) (0.812)(1.212) (1.212) (1.414) (1.212) Jumbo 30 Yr Fixed(1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.122)(1.212)(0.912)(0.891) (0.612)(1.212) (1.212) (1.615) (1.212)Conf 5/1 Arm(1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.122)(1.212)(0.812)(0.784) (0.412)(1.212) (1.212) (1.816) (1.212)Govt 3/1 Arm(1.011) (1.012) (1.075) (1.075) (1.075) (1.075) (1.075) (1.075) (1.075) (1.120)(1.212)(0.712)(0.677) (0.212)(1.212) (1.212) (2.017) (1.212)Jumbo 5/1 Arm (1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.122)(1.212)(1.212)(1.212) (1.212)(1.212) (1.212) (1.212) (1.212)Conforming comparisonDiff from best 0.000 - 0.125 -0.250-0.375 -0.500Difference from the bestRank 1.0002.0003.000 4.0005.000Date 02/20/2008CMChase ManhattanBranch 8101CTCi tiAmmortization FixedCWCountrywideOccupancy OO I InterfirstIONTBTB W Di ff fro m b est0. 000 -0.125 -0.250 -0. 375 -0.500 Loan amountConforming comparison 200,000 WMWAMURank1. 000 2.0003.0004. 0005.000 Escrow (All) Difference f rom th e bestWFWel ls Fargo CM Chase Manhat tanRate 6.125% Branch 810 1CT Cit iPurpose(All) FICO 700CW CountrywideLTV Price difference80%RankBest competitor Price VolumeIInterfirstAvg. from bestAmmortization Fixe d LTV LTV LTV LTV LTV TB TBWOccu pancyOO WM WAMU95.01-100 95.01-100 95.01-10095.01-100 95.01-100IONWF Wel ls Fargo 55.1-5060.1-6565.1-70 70.1-75 75.1-8080.1-85 85.1-9090.1-9555.1-5060.1-65 65.1-7070.1-75 75.1-8080.1-8585.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-7575.1-80 80.1-8585.1-90 90.1-9555.1-50 60.1-65 65.1-70 70.1-75 75.1-8080.1-8585.1-9090.1-9555.1-50 60.1-6565.1-70 70.1-7575.1-8080.1-85 85.1-9090.1-95Loan a moun t 200 ,0 00