BOSTON COLLEGE LAW REVIEW

Vol. 48 No. 4 September 2007

Selected Sources for

MORTGAGE FORECLOSURE IN POST-KATRINA NEW ORLEANS

A. Brooke Overby

48 B.C. L. Rev. 851 (2007)

Available online at www.bc.edu/schools/law/lawreviews/bclawreview.html

Sources for 48 B.C. L. Rev. 851

Volume XLVIII September 2007 Number 4

Appearing in footnote 87: Sample Mortgage Document, ¶ 23............. 1

Appearing in footnote 163: Bulletin from Freddie Mac, to All Freddie Mac Sellers and Servicers 4 (May 1, 2006) ......................... 13

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PARISI-I OF ORLEANS ACQUISITION'WLE, LLC $317 N. 140 SERVICE ROAD WEST

Return to: AEGIS FUNDING CORPORATION METAIRIE, LA 70002 ATTENTION: Final Docs P.O. BOX 421129 HOUSTON, TX 77242

[Space Above This Llne Far Recording Data] Loan No: 2000740913 Data ID: 262 Borrower: W O N T JACKSON

MORTGAGE ' MIN: 100014720007409134

DEFINITIONS

Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16.

(A) "Secnrity Instrument" means this document, which is dated November 3, 2004, together with all Riders to this document.

(B) "Borrower" is LAMONT JACKSON , Borrower is the mortgagor under this Security Instrument.

(C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee nnder this Secnrity Instrument. The tax idenamtion number of MERS is 54-1927784. MERS js organized and existing under the laws of Delaware, and has an address and telephone number of P.O. BOX 2026, Flint, MI 48501-2026, teL (888) 679-MEItS.

(D) "Lender" is AEGIS FUNDING CORPORATION: Lender is a Corporation organized and existing 'inder the laws of the State of DELAWARE. Lender's address is 3250 BRIARPmK DRIVE, SUITE 400, HOUSTON, TX 77042-4204. Lender's .tax identification number is 73-0416830.

Q ''Note" means the promissory note signed by ~arrower and dated November 3, 2004. The Note states that Borrower owes Lender NINE'I3;SEVEN THOUSAND SEVEN HUNDRED. and N0/100-----Dollars (US. $ 97,700.00) plus interest. Borrower has promised to pay this debt in regular # . . enoac Payments and to pay the debt in full nat later than December 1, 2034.

.. (+') "Property" means the property that is described below under the heading "Transfer of Rights in the Property,"

(G) "Loan" means the debt evidenced by the:Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest.

(H) "RTders" means all Riders to this Security Instrument that are executed by Borrower. All Riders to this Security Instrument are deemed to be a part df this Security Instrument as if Nly incorporated herein. The following Riders are to be executed by Borrower [check box as applicable]:

rn Adjustable Rate Rider Condominium Rider [? Second H ~ m e s i d e r . -1 [? . Balloon Rider C] Planned Unit Development Rider . .- p 5 . >

1-4 Family Rider Biweekly Payment Rider , .. ir. - -. J O'ther(s) [specify] . . cX zz cn . . : I - --o

Exhib i t A f o r l e g a l d e s c r i p t i o n and m a k i t a l s t a t u s . 'J ..r c -,, - :'-rn .-.4

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LOUISIANA - Single Famlly - Fannls MaeIFreddle Mac UNIFORM INSTRUMENT Modltlsd by Middleberg, Rlddlo I Glann* Form 3019 1/01 (Page 1 of72 Pages)

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Loan No: 2000740913 Data ID: 262

(0 "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions.

(J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization.

(K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers.

Q "Escrow Items" means those items that are described in Section 3

(M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or roceeds paid by any third party other than Insurance proceeds paid under the coverages described in gction 5) for: 6 . ' (i) damage to, or estrumon of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omiss~ons as to, the value and/or condition of the Property.. .

(N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan.

(0) L'Periodic Payment" means the regularly schebuled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. . . (P) (

: '

f Loan No; 2000740913 Data ID: 262

TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a par? of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the 'Troperty." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this S e m y Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument.

BORROFVER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and hypothecate the.Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject .to 'any encumbrances of record.

THIS SECURW INSTRUMENT combin& uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property.

UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges.

Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the' Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other insrmment received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash;@) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer.

Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be dRsignated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or: partial papent if the payment or partial payments are insufficient to bring the Loan current.' knder may accept any payment or partial payment insufficient to bring the Loan current, without waive11 of ally rights hereunder or prejudice to its rights to refuse such payment or partial payments in theyhltiture, but Lender is not obligated to apply such payments at the time such payments are accepted.. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment .to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied fo,the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument.

2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; @) principal due under the 'Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note.

If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lendermay apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can bepaid in full. To the Went that an t excess e e t s after the payment is applied to the full.payment of one or morq Periodic Payments, such excess may be applied to any late charg&due. Voluntary prepayments shall be applied first to:any prepayment charges and then as d e s ~ b e e the, 2 Note. a E ..:-

Any application of payments, insuranc6 proceeds, or Miscellaneous Proceeds to m c i A dui:z under the Note shall not mend or postpope the aue date. or change the amount, of xhe fdl0dioblBC, Payments. 0 4 p c

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I LOUISIANA - s ~ n g ~ o Fernly - Fannle MeoIFreddla Mac UNIFORM INSTRUMENT ~ o d l f l - d by Middleberg, Rlddla & Glanna Form 3019 1/01 (Page 3 of 72 Pages1

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Loan No: 2000740913 Data ID: 262

3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Insmen t as a lien or encumbrance on the Property; @) leasehold payments or ground rents on the Propem. if any; (c) premiums for anv and all insurance required by Lender under Section 5; and .. . . (d) h4oSgage Insuran'ce premiums, if any, or any sums payabie by Bdrrower to Lender in lieu of the pavment of M o I ~ K ~ K ~ Imurance premiums in accordance \pith the provisions of Section 10. These Items &k called "Escrow-Items." At brigination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender' all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for .any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "Covenant and agreement" is used in Section 9. If Borrower is obligarkd to pay Escrow I t e s directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item. Lender mav exercise its rights under Section 9 and Dav such amount and Borrower shall then be obligated under section 9 to reiay to hnder any such Gdunt. Lender may revoke the waiver as to any or alI Escrow Items at any tune by a notice given in accordance with Section 15 and, won such revocation. Borrower shall pay to Lender all Funds, and in such amounts. that are then

A .

riquired under this section 3. Lender may, at any time, collect and hold Funils in an amount (a) sufficient to permit Lender

to apply the Funds at the time specified under RKSPA, and @) not to exceed the maximum amount a lender can require under RESPA Lender shall estimate the amount of Funds due on the basis of w e n t data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance w i t h ~ ~ ~ l i c a b l e Law.

L

The Funds shall' be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose de osits are so insured) E or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the crow Items no later than the time s~ecified under RESPA Lender shall:,not charee Borrower for holdinr! and a ~ ~ l v i n z the

. A , - Funds, annuall! analyzing the escrow account, or +erifyinzthe Escrow Items, d e s s Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable L;tw iequires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interqt or earnings on the Funds. Borrower and Lender &n agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the .Funds as required by RESPA.

If there is a surplus of Funds held in qcroti., as ,defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA If there is a shortage of Funds held in escrow, as defined under RESPA,Lender shall notify. Borrower as required by RESPA, and Borrower shall pay to Lender the amount. necessary to 'make u the shortage in accordance with RESPA, but in no more than 12 monthlypayments. If there.is.a'de&iency of Funds held in escrow, as definedunder RESPA, Lender shall notify Borrower as req9red by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiencyinaccordance with RESPA, but in no more than 12 monthly payments. . .

Upon payment in full of all sums secured by .this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. ' '

4. Charges; Liens. Borrower shall pay ali taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Coinmunity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3.

Borrower shall promptly discharge any lien which has priority over this Security Instrument 'unless Borrower: (a) agrees in writing to the payment Of the obligation secured by the&ien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests theJien in good faith by, or defends against enforcement of the lien in, legal proceedings which Le&r1s 5 2 opinion operate to prevent the enforcement of the lien while those proceeding are p e n d i g buqnly :$; until such proceedings are concluded; or (c) secures from the holder of the lien an 3 r g r e m t ; ; . ~ satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determim th ny -.-:, part of the Property is subjea to a lien whichcan attain priority over this Security Instrum-, ~ i n r b e r i i c may give Borrower a notice identifying the lien. . Within 10 days of the date on which thatqnoUE is :. ,? given, Borrower shall satisfy the lien or take one or more of the actions set forth ab@ irrrhisl Section 4. r. ......!3 ..> :-

Lender may require Borrower to pay a one-time charge for a real estate tax verifica@ aHor ::::: reporting service used by Lender in connection pith this Loan. .- .A- -x . .-

Loan No: 2000740913 Data ID: 262

5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in cohnection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each. time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the pawent of any fees imposed by the Federal Emergency Management Agency in connection with the reyiew of any flood zone determination resulting from an objection by Borrower.

If Borrower fails to maintain q y of the coverages described above, Lender may obtain insurance coverage, at Lender's .option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Pqoperty, or the contents of the Property, against any risk, hazard or liability and might provide greater 61 lesser coverage than was previously in effect. Borrower acknowledges bat rhi COG of the insurance coverage so obtained migh~significantly exceed [he cost of insurance ~ a r Borrower could have obtained. Anv amounts disbursed by Lender under this Section 5 shall become additional debt of Borfower sec&ed by this Security hstrument. These amounts shall bear interest at the Note rate front'the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.

All insurance policies required by Lender' an^ renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee andlor as an additional 106s payee. Lender shall have the right to hold the policies and renewal ceMcates. If Lender re'uires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. % +orrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy.shal1 include a standard mortgage clause and shall'name.I;ender as mortgagee and/or as an additional loss payee.

In the event of loss, Borrower shall give prompt noqce to the insurance carrier and Lender. Lender may make proof of lossif not made promptly .by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair js economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been complered to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds far the repairs and restoration in a single payment or in.a series of progress payments as the work is completed Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.

If Borrower abandons the Prope1ty;Lender may file, negotiate and settle any available insurance claim and related maners. If Borrower does. not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, themlender may negotiate and senle the claim. The 30-day period will begin. when the notice is given. h.either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby' assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed tlie amounts unpaid under the Note or this Security Instrument, and @) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance;poIicies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to e air or restore the Property or to pay amounts unpaid.under the Note or this Security InstrumW, w&eF2; ,? or not then due. E (2,- 73 :.

6. Occupancy.. orr rower shall occupy, est'ablish, and use the Property as Borrowea pr~dcipaE?~ residence within 60 days after the execution of this Security Instrument and shall continUPRo a p f 2 &, the Property as Borrower's principal residence for at least one year after the date of occupg$cy,7des$: c ? Lender otherwise agrees in writing, which consent shall not be unreasonably withheldOor 'Lrme2$..;3 - extenuating circumstances exist which are beyond Borrower's control. ?[) .; ,J. .,..jg

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, LOUISIANA - Slngle Family - Fannie MaeIFreddle Mac UNIFORM INSTRUMENT I '.I! i

Modlfled by Mlddleberg, Rlddlc & Glanna Form 301 9 1/01 (Page 5 of 12 Pages)

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Loan No: 2000740913 Data ID:. 262

7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Pro erty in order to prevent the Property from deteriorating Or decreasing in value due to its condition. &less it is deterrmned pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are aid in connection with damage to, or the taking of, the Property, Borrower shall be responsible i' or repairing Or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress paYInentS..aS the work is compIeted. If the insurance or condemnation proceeds are not suffiiient to ~epai r or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration.

Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause.

8. Borrower's Loan Application. Borrower shall be in default if, during the hean a plication process, Borrower or any persons or entities acting at the direction of Borrower or with Jorrower's lmowledge or consent gave. materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, repr%entations concerning Borrower's occupancy of the Property as Borrower's principal residence.

9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might sig~ficantly affect Lender's interest in the Propeny and/or rights under this Security Instrument .(such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower Has abandoned the Property, then Lender may do and pay for whatever is reasonable or a propriate {O protect Lender's interest in the Property and rights under this Security Instrument, inc ?'. u&ng protecung and/or assessing the value of the Properry, and securing and/or re airing the Property. Lender?, actions can include, but are not limited to: (a) paying any sums secured gy a lien which has priority o"er tgs Security Instrument; (b) appearing in court; and (c) paying attorneys' fees of 25.00% of the s . 9 due under the Note to protect its interest in the Propeq and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property inc1udes;but js' not lipited to, enrering the Properly to make repairs, change locks, replace or board up door3 and winriows, drain water from pipes, eliminate building or other code violations, or dangerous conditions, a,nd have utilities turned on or off. Although Lender may take anion under this Section 9, Lender does not have to do so and .is not under any duty or oblieation to do so. It is agreed that Lender incurs no liability for not taking any or all actions autho&ed under this Section 9:

Any amonnts disbursed by Lender under this siction 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower - . . . . . requesting

.

If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee tirle shall not merge unless Lender agrees to the merger in miting. '

10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of maldng the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent tothe cost to Borrower of the Mortgage Insurance reviously in effect, from an alternate mortgage insurer selected by.Lender. If substantially equivalent 6 ortgage Insurance coverage is not available, Borrower. shall co@ue,tO pay to Lender the amount of the separately designated payments that were due when t h e ' m n s p 3 ~ coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loanis ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss Lender can no longer require loss mewe payments if Mortgage Insurance coverage (in t h r g q ; s for the period that Lender requires) provided by an insurer selected by Lender again beco a~a+Iable;,,~ is obtained, and Lender reqwes separately desigated payments toward the premiums fW M a @ U Insurance. If Lender required Mortgage Insurance as a condition of making the Loan a m B R w d was required to make separately designated payments toward the remiums for ~ o r t ~ a q ~ ~ d n c @ : c Borrower shall ay the premiums required to maintain Mortgage nsurance in effect, or t prmtde h- $ S P non-refundable oss r e se~e , until knder's requirement for Mortgage Insurance ends i@cmnhn+':o with any written agreement between Borrower and. Lender providing for such terminatmn crwmtil:'O terminationis required by Applicable Law. Notmg in this Section 10 affects Borrowe$obl~tio$~~; to pay interest at the rate provided in the Note. ,': , ' - Z .

Mortgage Insurance reimburses Lender (or.any entity that purchases the Note) for cwtalr@ss& .:% it may incur if Borrower does not repay the Loari.as agreed. Borrower is not a party to the Mortgage Insurance.

LOUlSlANA - Single Family - Fannlo MaolFroddle M& UNIFORM INSTRUMENT Modlflod by Middleberg, Rlddls & Glanna Form 3019 1/01 (Page 6 of 72 Pages)

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,, - -- Loan No: 2000740913 I . Data ID: 262 Mortgage insurers evaluate their total risk in al l such insurance in force from time to time, and

may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that afe satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any sonrce of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance remiums).

As a result of these agreements, Lnder, any purchaser of the Note, anather insurer, any reinsurer, any other entity, or any affiliate, of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate Of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further:

(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and ,they will not entitle Borrower to any refund.

@) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insnrance imder the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to 'request and obtain cancellation of the Mortgage Insurance, to have the Mortgage hsurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were un.eacned at the time of such cancellation or termination.

11. Assignment of Miscellaneous Proc&ds; Fprfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. . .

If the Property is damaged, such Miscellaneius proceeds shall be applied to restoration or repair of the Property; if the restoration or repair is 'ecailomically feasible and Lender's security is not lessened. During such repair and restorati0.n period, Lender shall 'have the right to hold such Miscellaneous Proceeds until Lender has had an' opportunity to inspect such Property to ensure the work has been completed to Lender's satisfa'ction, provided that such inspection shall be undertaken promptly. Lender mag pay for the repairs p d restoration in a single disbursement or in a series of progress payments as the work is completed. Upless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would. be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security.Instfument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shal1::be applied in the order provided for in Section 2.

In the event of a total taking, destructian, or loss ih value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured'by. this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. 'j

In the event of a partial taking, destruction, or loss in value of the Propertyin which the fair market value of the Property immediately beforethe partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Bo;rower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided -by (b) the fair market value. of the Property immediately before the partial taking, destructioX? or loss in value. Any balance shall be paid to Bonower.

! In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise. agree in writing, the Miscellaneous Proceeds shall be 1

i applied to the sums secured by this Security Instrument whether or not the sums are then due. I If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the

I Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages,

I Borrower fails to respond to Lender within 30 .&ys after the date the no,tice is given, Lender is ! authorized to collect and apply the Miscellaneous Proceeds either to restoration or r e g athe , . i Property or to the sums secured by this Securitj; InSmunent, whether or not then due. p@mg .: :- . . i Party" means the third party that owes Bonower:Miscellaneous Proceeds or the party 1 Borrower has a right of action in regard to Miscellaneous Proceeds. ! Borrower shall be in default if any action or proceeding, whether civil or

in Lender's judgment,could result in forfeiture df the Property or other i Lender's interest in the Property or rights under this Security Instrument. Borrower can w e s x b a;:;;;:

default and, if acceleration has occurred, reinstate as provided in Section 19, by causing th$&ti~or'.-.: .=I proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of W r o p e r t y ,:.? or other material impairment of Lender's interest in the Property or rights under thaZSeWty : x Instrument. The proceeds of any award or claim.for damages that are anributable to the &airgnt . , .%. of Lender's interest in the Property are hereby assigned and shall be paid to Lender.

All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2..

., .

LOUISIANA - Single Farnlly - Fannle MaeIFreddle Mac UNIFORM INSTRUMENT ModMed by Mlddleberg, Rlddle & Glanna . . . ;. Form 3019 1/01 (Page 7 01 12 Pages)

7

Loan No: 2000740913 Data ID: 262

12. Borrower Not Released; Forbearance By Lender Not a Waiver. Enension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend rime for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy.

13. Joint and Several Liability; Co-signers; Successors and AssignsBound. Borrower covenants and agrees that Borrower's obligations and liability~~hall be joint and several. However, any Borrower who co-signs this Security Instrument but does not .execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the cosigner's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent.

Subject to the proviSions of Section 18, of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to a g e s y @tract .? or it might be silent, but such silence shall not be construed as a prohibition against apemgnt bfkrr. contract. In the event that any provision or clause of this Security Instrument or the Nme capllictsj'..: with Applicable Law, such.confXct shall not affect other provisions of this Security I n s t r @ ~ ~ the; (1 ,' Note which can be given effect without the conflicting provision. ._ i.. ' 7 - cn

As used in this Security Instrument: (a) words bf the masculine gender shall mean d include,.+ corrpanding neuter words or words of Be femiriine gender; (P) words in the singular sh$me&and ;4 include the plural and vice versa; and (c) the wora.!'magU gives sole discretion without a h o b ion . , to take any action. gU.0 . . . - > - ,

' 3 LO ;5 ' , ,

LOUlSlANA - Single.Farnily - Fannle MaelFreddle.Mao UNIFORM INSTRUMENT Modifled by Mlddleberg, Rlddle & Gianna . . Form 3019 1/01 (Page 8 of 12 Pages) .. '

8

Loan No: 2000740913 Data ID: 262

17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument.

18. Transfer of the Property or a ~enefidal Interest in Borrower. As used in this Section 18, "Interest in the Propertybeans any legal or beneficial interest in the Property; including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser.

If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law.

19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such Other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; @) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, attorneys' fees of 25.00% of the sums due under the Note, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this'Security Instrument; and (d) takes such action as Lender may reasonabIy require to assure that Lender's iriterest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument,. shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic FundsTransfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this righr to reinstate shall not apply in the case of acceleration under Section 18.

20. Sale of Note; Change of Loan Serviber; Notice of Grievance. The Note or a partial interest in the Note (together with this S e c y i ~ Ins-ent) can be sold one or more times without prior notice to Borrower. A sale might result in a change in t$e entity '(known as the "Loan Senricer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mongage loan servicing obligations under the Note, this Seairity Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan service^, Borrower will be given written notice of ihe change which will state the name and address of the new Loan Servicer, the address to;which payments should be made and any other information RESPA requires in connenion with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serriced by a Loan Senicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Senricer or be transferred to a successor Loag Senicer and are not ass'wned 6y the Note purchaser unless otherwise provided by the Note purchaser.

Neither Borrower nor Lender may commence,.join, or be joined to any judicial action (as either an individual litigaf~t 01 the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the 0the.r .party has breached any provision of, or any duly owed by reason of, this Security Instrument, 6til such.Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Seaion 15) of such alleged breach and afforded the other party hereto a reasonab1e:period after the giving of such notice to take corrective action. If AppIicable Law provides a time period which must elapse before certain action can be s e n , , -., that time period will be deemed to be reasonable for purposes of this paragraph. $ .. - - . . . , . . i 7

. . .'' .-J . . L" :.::! . . . -* c-1

0 4 ..-C. - -il - (.'-I -. .> --, 0 - :-.a 73

m 3 NO ;::Z

. . 2 : ':: .> 0 E; . -

..

LOUISIANA - Single Family - Fannie Mae/Freddle Mac UNIFORM INSTRUMENT Modified by Middleberg, Riddle & Olanna Form 3019 1/01 (Page 9 of 12 Pages)

9

Loan No: 2000740913 Data ID: 262

21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "hvkonmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, Or removal action, asdefined in Environmental Law; and (d) an '?Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup.

Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that .is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazaxdous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products).

Borrower shall promptly give Lender w@tten notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual howledge, (b) any Environmental Condition, including but not limited to; any spilling, leahg, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects'the value of the Property. If Borrower learns, or is notified by any governmental or regulatory auth~rity, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup.

NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Notice of Default; Right to Cute. Following Borrower's failure to pay principal,

interest, and other fees and charges as provided'in the Note, or following Borrower's breach of any covenant or agreement in this Security Instrhment, Lender at its option may accelerate and require immediate payment in full of all sums secured by ,this Security Instrument without further demand for payment.

23. Foreclosure. FolIowing Lender's acceleration of p?$lent, Lender may commence appropriate , foreclosure proceedings under this Security Insuument under ordinary or executory process, under which Lender may cause the Property to be immediately'seized and sold, with or wirhout a praisaI, in regular P session of court or in vacation, in accordance with Applicable Law. For purposes o foreclosure under executory process procedures, Borrower confessp judhent and acknowledges to be indebted to Lender for all sums secured by this Security Instrument, in principal, interest, costs, expenses, attorneys' fees of 25.00% of the sums due under the Note and,other fees and charges. To the extent permitted by Applicable Law, Borrower waives: (a) the benefit of appraisal as provided in Articles 2332, 2336, 2723 and 2724 of the Louisiana Code of Civil .Proced~e, and all other laws with regard to a praisal upon B judicial sales; (b) the demand and three days: delay as provided in Articles 2639 an 2721 of the I ! Louisiana Code of Civil Procedure; (c) the notice of seizure as provided under Articles 2293 and 2721 of the Louisiana Code of Civil Procedure; (d) the three days' delay provided under Articles 2331 and 2722 of the Louisiana Code of Civil Procedure: and. @)'all other benefits provided under Articles 2331, 1 2722 and 2733 of the Louisiana. Code of Civil Procedure and all other articles not specifically mentioned above. Borrower agrees that any declararion of fact made by an authentic act before a notary public and hvo witnesses by a person declaring such facts to be within his or her knowledge, will constitute authentic evidence of such facts for purposes of foreclosure under Applicable Law and for i , purposes of La. R.S. 9 9:3504(D)(6). I .

24. Cumulative Remedies. Lender shall have such additional default remedies as be available underthen Applicable Law. All of Lender's remedies shall be cumulative, and not&ngg,der. . ;: this Security Instrument shall limit, or restrict.the remedies available to Lender following Befa

25. Keeper. Should the Property be sei2ed as an incident to an action for rec itioh or :;.; enforcement of this Security Instniment by executory process, sequestration, attachment, it men : ;! facias, or otherwise, Borrower agrees that the court issuing such an order shall, if requested 8 Leader, .-.. ;=: ap oint Lender, or any person or entity designated by Lender, as keeper of the Property mprovSed(':;~; in%. R.S. $5 95136, er, seq. Borrower agrees to pay the reasonable fees of such a keeper,&ichJees .:;=

;D shall be secured by this Security Instrument ,as an additional expense. r o f:?? m . >. i j . . 3 NO : : :::z . . .. .- 1 :: 0 --i

LOUISIANA - Single Famlly - Fannle MaelFreddie Mac UNIFORM INSTRUMENT Modlned by Mlddleberg, Riddle & Gianna Form 3019 1/01 (Page 10 of 12 Pages)

10

/Loan No: 2000740913 Data ID: 262

26. Cancellation. This Security hSt~~Inent shall remain in effect until canceled from the public records. Following the full payment and satisfaction of all s'ums secured by the Security Instrument, Borrower may request in writing that Lender provide Borrower with the original paraphed Note marked 'paid in full", or with an appropriate mortgage cancellation certificate, for submission to the Clerk of, Court or Recorder of Mortgages for the Parish of Orleans for the purpose of canceling this Security Instrument. Lender may delay providing Borrower with the canceled Note or with a mortgage cancellation certificate for up to 60 days following Lender's receipt of Borrower's request. Unless Lender agrees to cancel this Security Instrument from the public records, Borrower shall be responsible for doing so. Borrower shall pay all cancellation costs.

27. Waiver of Homestead Righis. B O M O W ~ ~ (and Borrower's spouse to the extent applicable) waive any homestead rights and other exemptions from seizure with respen to the Property as may be provided under Applicable Law. .

28. Savings and Loan Association. 1f' Lender is a savings and loan association or thrift institution, the Note and all sums secured by thisTeciuity Instrument shall have the benefits of La. R.S. g 6330. , t

29. Future Advances. Lender may, but sliall not be required to, make advances to protect the security of this Security Instrument pursuant to Section 9. At no time shall the principal amount of the indebtedness secured by this Security Instrument, including advances made pursuant to Section 9, exceed 150% of the original amount of the indebtedness set forth in the Note.

30. Late Charges. Should Borrower fail to Piy any installment of principal and interest under the Note within 15 days of when due, Borrower agrees to pay Lender a late charge in an amount equal . - to 5.00%. 4 R7hi~ '

31. Marital Status. Borrower's maraai status is: S E ~ %DBN~~Iv~?ATI'ACHED HERETO. 32. ~ddi t iona l Defined Terms. As used'in this Se$mity Insmunent, "Lender" additionally

includes any successors a@ assigns of the Lender first named above, as well as any subsequent holder or holders of the Note, or of any indebtedness secured by this Security Instrument.

As used in this Security Instrument, "Note" additionally includes any substitute note or notes issued in replacement of Note fist described above. It is Borrower's intent that this Security Instrument secure all renewals, extensions, refinancings, and modifications of the Note, to the extent . . provided by La. R.S. § 95390.

As used in this Security Insuument, "Lien" also means a privilege, mortgage, security instrument, assirmment or other encunibrance. "Real ~rooerry".means "immovable ~ r o ~ e r t v " as that term is used ~ - c -&e Guisiana Civil Code. "~ondemha&on'C includes "kxpropriatibn" as-that term is used in Louisiana law.

33. Property Includes Servitudes and component Pirts. The Property subject to this Security Instrument additionally includes se~itudes and.component parts now or hereifter attached to or incorporated into the Property.

34. Full Ownership. Borrower is the full and lawful owner of the Property. If the Security Instrument is on a leasehold interest, and Borrower subsequently acquires ownership of the Property, Borrower's leasehold and ownership interestslin she Property shall not merge unless Lender agrees to the merge in writing.

35. Modification of Section 13 of Qis Security Instrument. Section 13 of this Security Instrument is hereby modified to the following extent.

Each Borrower covenants and agrees .that Borrower's obligations and liabilities under this Security Instrument and under the Note shall be joint, several and solidary with all other Borrowers and with each guarantor of the Note (if applicable). However, to the extent that the Property is community-owned immovable (real) property, and Borrower's spouse co-signs this Security Instrument, but does not co-sign t h ~ Note, Borrower's spouse is co-signing this Security Instrument for purpose oE (a) concurring with the granting of this Security Instrument on the community-owned Pxoperty (to the extent required under Civil Code Article 2347), without obligating the' separate property of Borrower's spouse; (b) waiving any homestead rights to which borrower's spouse may be entitlegun& ;:,;? Applicable Law. Notwithstanding the fact that Borrower's spouse did not co-sign t NOT, ,: 7q . and further notwithstanding the language of Section 13 of this Security In?.FnmF iiZ.7 Borrower's spouse is obligated for payment of the Note and all other sums secureZFby t 1 A !;c3 Security Instrument to the extent of the.spa?se's community property interest, @to t U ) - . extent that the Note is a community obligation. a ::: -i 36. Additional Waivers. Borrower hereby waives production of mortgage, c o n v e y m e w g ; certificates with respect to the Property, and relieves t ad releases the Notary Public be& 'k15

Security Instrument was passed from all responsibility and liability in connection there-. NO :

....,

/*an No: 2000740913 Data ID: 262 *? i.

THUS DONE, AND PASSED, on this 3rd day of November , 2o73 O 4 in the presence of the undersigned Notary Public, and in the presence of the undersigned competent witnesses, who hereinto sign their names, along with Borrower, after being duly sworn and after readrng of the whole.

- r. Wimesses:

~ o t a r y ID/Bar roll # Notaryqualifiedin J e f f e r s o n Parish, Louisiana My commission expires: At My Death

C-TIMA M. PARFZTI NOTARY f 61 897

. . . co&l~ sxpims at my death.

LOUlSlANA - Single Family - Fannie Mae/Freddle Mac UNIFORM INSTRUMENT Modified by Middleberg, Riddle & Qlmna Form 3019 1/01 (Page 72 of 12 Pages)

12

Freddie Mac

Bulletin TO: All Freddie Mac Sellers and Servicers May 1,2006

SUBJECT: Revised Selling and Servicing Requirements for Mortgages Affected by Hurricane Katrina and Hurricane Rita

Freddie Mac continues to work with our Sellers and Servicers to monitor the effects of Hurricane Katrina and Hurricane Rita on Mortgages secured by properties located in "eligible Disaster Areas." Eligible Disaster Areas are those areas comprised of counties or municipalities, including parishes, that have been declared by the President of the United States to be Major Disaster Areas where federal aid in the form of individual assistance is being made available. These areas are named by the Federal Emergency Management Agency (FEMA) on its web site.

With our February 10, 2006, Single-Family Seller/Servicer Guide (Guide) Bulletin, Freddie Mac established a three-zone methodology and assigned a zone number to each countylparish in the eligible Disaster Areas, enabling us to provide more specific Servicing instructions regarding foreclosure and property preservation activities for Mortgages secured by properties in specific countieslparishes. As a reminder, the three zones established by Freddie Mac are:

Zone One-minimal to no damage Zone Tw+moderate damage Zone Three-significant damage

With this Bulletin, we are amending temporary selling and Servicing requirements to: Expand the application of the three-zone methodology to the temporary selling requirements announced in our September 30,2005, Guide Bulletin, for Mortgages secured by properties located in eligible Disaster Areas Move seven counties/parisbes to zones more commensurate with property damage in those areas Require Servicers to use orkout ~ ros~ec to r@II (WP 11) to process short payoffs when 95% 'd off with insurance proceeds Extend previously requirements effective for the period from June 1,2006, thro

The zone designations es ac must be used by Servicers to service Mortgages owned by Freddie Mac and by Sellers to originate Mortgages pursuant to the temporary requirements described in this Bulletin. They should not be used for any other purpose.

SELLING REQUIREMENTS Effective immediately, with this Bulletin we are:

Removing the LTVITLTVIHTLTV ratio limit restrictions announced in our September 30, 2005, Guide Bulletin for all Mortgages secured by properties located in Zone One Removing the special collateral requirements announced in our September 30,2005, Guide Bulletin for properties located in Zone One that are not damaged and announcing that, where applicable, those requirements will not expire on October 3,2006, but will remain in effect until further notice

13

The countiesiparishes and their assigned zone numbers identified on Attachment 1 of this Bulletin are effective immediately for selling requirements.

As previously announced and except as modified in this Bulletin with respect to the special collateral requirements, the temporary selling requirements in our September 30,2005, Guide Bulletin, as amended, apply to Mortgages with:

Note Dates on or after August 30,2005, through October 3,2006, for Mortgages affected by Hurricane Katrina, and Note Dates on or after September 25,2005, through October 3,2006, for Mortgages affected by Hurricane Rita

in any of the following circumstances: The Mortgaged Premises is located within an eligible Disaster Area The Borrower resided within an eligible Disaster Area prior to Hurricane Katrina or Hurricane Rita, but has since relocated The Borrower's employer is located within an eligible Disaster Area and the employer's records have been damaged, destroyed or are inaccessible

All temporary selling requirements previously announced in our September 30,2005, Guide Bulletin as amended in our October 7 and November 8,2005, Guide Bulletins remain in effect, except as amended by this Bulletin.

LTVITLTVIHTLTV ratio limits Freddie Mac's September 30, 2005, Guide Bulletin included LTVITLTVIHTLTV ratio requirements for Mortgages secured by properties located in Hurricane Katrina and Hurricane Rita eligible Disaster Areas. In our October 7,2005, Guide Bulletin, we removed the LTVITLTVIHTLTV ratio limitations for Mortgages secured by properties affected by Hurricane Rita. This Bulletin removes the LTVITLTVIHTLTV ratio limitations for Mortgages secured by properties affected by Hurricane Katrina if the properties are located in countiesiparishes listed in Zone One. The LTVITLTVIHTLTV ratio limitations stipulated in the September 30,2005, Guide Bulletin still apply to Mortgages secured by properties located in countieslparishes in Zone Two and Zone Three.

Collateral requirements Effective immediately, the temporary special collateral requirements announced in Section l(i) of the September 30,2005, Guide Bulletin will only apply to:

Mortgages secured by damaged properties located in Zone One Mortgages secured by properties located in Zone Two and Zone Three, regardless ofthe condition of the property

In addition, Freddie Mac is announcing that these temporary special collateral requirements will remain in effect until further notice. We are making this change because future market conditions remain uncertain in the eligible Disaster Areas.

Other selling requirements Except as set forth in the September 30,2005, Guide Bulletin (and amended by this Bulletin and the October 7 and November 8,2005, Guide Bulletins), all requirements in a Seller's Purchase Documents must be met for a Mortgage to be eligible for sale to Freddie Mac.

The selling requirement provisions of this Bulletin are Discretionary Provisions as defined in Section 12.13 of the Guide and Exhibit 26, Discretionary Provisions.

Page 2 14

SERVICING REQUIREMENTS With this Bulletin, we are announcing that effective for the period from June 1 through August 3 1,2006, for Mortgages secured by properties located in eligible Disaster Areas, we are:

Moving four countieslparishes from Zone Two to Zone One, and three countieslparishes from Zone Three to Zone Two Instructing Servicers to process short payofftransactions through the charge-off path in WP I1 when 95% or more of the debt is being paid off with insurance proceeds Extending our previously announced credit reporting requirements Extending the requirement to obtain prior Freddie Mac approval to resume or initiate foreclosure or eviction proceedings in Zone Two Extending the requirement to obtain prior Freddie Mac approval for lender-initiated property preservation activities in Zone Two and Zone Three other than decisions on accessing an abandoned property for insurance claims Extending the suspension period on foreclosure and eviction proceedings in Zone Three

We are also announcing August 31,2006, as the expiration date for the streamlined loan modification process that we originally announced in our October 7, 2005, Guide Bulletin,

Moving countieslparishes to different zones Freddie Mac continues to evaluate information about the extent of damage in the eligible Disaster Areas. As a result, effective June 1 for Servicing, we are moving seven counties/parishes to zones more commensurate with the property damage in those areas. A revised list of counties/parishes and their assigned zone numbers are identified on Attachment 1 of this Bulletin. The impacted counties/parishes are:

Zone One-minimal to no damage The countieslparishes listed below have been moved from Zone Two to Zone One:

Choctaw County, AL Marengo County, AL Ascension Parish, LA St. Martin Parish, LA

Zone T w e m o d e r a t e damage The countieslparishes listed below have been moved from Zone Three to Zone Two:

Baldwin County, AL Clarke County, AL Washington County, AL

Zone Threcsignificant damage The changes are noted above in Zone Two.

Processing short payoff transactions through the charge-off path in WP 11 To expedite the short payoff approval process, Servicers must use the charge-off path in WP I1 to process short payoffs when 95% or more of the debt is being paid off with insurance proceeds. Using the charge-off path in WP I1 will enable the transaction to he processed and approved more easily and efficiently. Once a transaction is approved, Servicers must release the lien on the property.

In addition to the requirements in this Bulletin, Servicers are reminded that they must comply with the temporary requirements described in our February 10,2006, Guide Bulletin and all other requirements in Guide Sections B65.35, B65.41 and B65.49 through 865.53.

Page 3 15

Credit reporting To provide Servicers with more time to work with affected Borrowers to resolve delinquencies, we are extending the credit reporting requirements announced in our February 10,2006, Guide Bulletin through August 31,2006.

Extending the requirement to obtain prior Freddie Mac approval to resume o r initiate foreclosure or eviction proceedings in Zone Two Servicers must continue to obtain prior Freddie Mac approval on the Form 105, Multipurpose Loan Servicing Transmittal, for resuming or initiating foreclosure or eviction proceedings on properties located in Zone Two.

Obtaining prior Freddie Mac approval for lender-initiated property preservation work in Zone Two and Zone Three Servicers must continue to obtain prior Freddie Mac approval on the Form 105 for commencement of any lender-initiated property preservation work on properties located in Zone Two and Zone Three other than decisions on accessing an abandoned property for insurance claims. For our requirements with respect to re-keying of properties without prior approval, see our February 10,2006, Guide Bulletin.

Extending the suspension period on foreclosure and eviction proceedings in Zone Three Freddie Mac is extending the suspension period on foreclosure and eviction proceedings for Mortgages secured by properties located in Zone Three through August 31,2006. Servicers are reminded that when the suspension period expires they must obtain prior Freddie Mac approval before initiating or resuming foreclosure proceedings on any Mortgage secured by property located in Zone Three.

Streamlined underwriting requirements for loan modifications ends August 31,2006 In our October 7,2005, Guide Bulletin, we announced a temporary streamlined loan modification process for Mortgages secured by properties located in eligible Disaster Areas. We reiterated those requirements in our February 10,2006, Guide Bulletin. As we approach the one-year anniversary of the hurricanes, we are finding that an increasing number of Borrowers are able to provide the information necessary to allow Servicers to evaluate their situation and to determine if a loan modification is a viable workout solution. Therefore, the temporary streamlined loan modification requirements will expire on August 31,2006. Beginning September 1,2006, Servicers must follow existing Guide requirements for submitting and approving workout loan modifications (see Guide Chapter B65).

Individual assessment reminder Servicers are reminded that regardless of the zone designation assigned to the countytparish in which the property securing a Mortgage is located, they should perform an individual assessment of each Mortgage to determine if forbearance in the form of a suspension or reduction of payments should he extended.

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CONCLUSION We continue to appreciate the efforts of our SellerlServicers in providing reliefto Borrowers who have been affected by Hurricane Katrina and Hurricane Rita, as well as the prudent underwriting practices exercised in evaluating the acceptability of Mortgages sold to Freddie Mac. The information provided by our SellerlServicers and others in the industly has been key to our efforts to provide the most effective solutions for Borrowers affected by these disasters.

Both selling and Servicing requirements for Hurricane Katrina and Hurricane Rita are available at ~v,\i\~~w.FreddieMac.comicorporate/abo~~~ho,\i\~ we helpAca~ina.html.

For answers to questions about the requirements contained in this Bulletin, Freddie Mac Seller/Servicers should call their Freddie Mac Account Manager or (800) FREDDIE.

Sincerely,

James J. Cotton Vice President Single-Family Marketing

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