Confidential. For review only in Wells Fargo approved meetings. Not to be copied, shared or distributed beyond members of the approved meeting.

Wells Fargo Home Mortgage

Joe Ohayon

SVP, Community and Client Relations

Housing Counselors: The Inside Scoop on Working Effectively with Servicers

November 4, 2009

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Industry Loans Outstanding

Confidential. For review only in Wells Fargo approved meetings. Not to be copied, shared or distributed beyond members of the approved meeting.

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Delinquency and Foreclosure ProcessThe delinquency and workout process is not simple or linear. Customers

move in and out of stages over time.

Confidential. For review only in Wells Fargo approved meetings. Not to be copied, shared or distributed beyond members of the approved meeting.

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Not all customers, even if their loan is modified, will be able to continue making payments on time. The key factors that drive re-default are:

Debt-to-income ratios (DTI above 38%/TDTI above 55%)

Post-modification monthly surplus below $300 or less than 10% of income

Post-modification payment increases

Stretched affordability coupled with no equity

As we identify options for our customers, we need to ensure they are sustainable over

the long-term.

Making Home Affordable is just one of the modification options available.

Priority of Actions to Achieve Objectives

HAMP

In-house modification program

Unique case-by-case modifications

Home sale assistance

Quality review for all cases before foreclosure sale

Finding Appropriate Sustainable Options

Confidential. For review only in Wells Fargo approved meetings. Not to be copied, shared or distributed beyond members of the approved meeting.

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For customers delinquent or struggling to keep current on their mortgages

HAMP is a viable option for customers: Whose loan is owned by Fannie Mae, Freddie

Mac, some private investors, as well as our held-for-investment loans.

That have an owner-occupied property. With a mortgage debt-to-income ratio >31%. In addition, we implemented the FHA version

of HAMP in August.

For customers current on their mortgages

HARP is a viable option for customers: Whose loan is owned by Fannie Mae or

Freddie Mac. Whose property values have declined and

whose loan balance currently exceeds the value of their home, up to a loan-to-value of 125%.

Home Affordable Modification Program

Home Affordable Refinance Program

Making Home Affordable

Confidential. For review only in Wells Fargo approved meetings. Not to be copied, shared or distributed beyond members of the approved meeting.

How Can Counselors Help with HAMP?

Assist borrower with accurate completion/submission of financial package

Ensure alignment between verbal income and documented income

Payment reminders during trial period

Not available for all investors

Manage expectations

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Helpful Tips to a Quick Decision

Signed Third Party Authorization

Complete package submission Proof of Income

Tax Returns

Hardship Letter

Bank Statements

Include loan numbers on all pages

Holistic Debt Counseling

Dedicated Housing Counselor Line: 866-480-5004

Patience but Persistent

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You Play an Important Role!!

Let’s keep the dialogue going and continue working together on behalf of homeowners in the communities we serve.

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