Wingspan Portfolio Advisors Default Servicing Solutions

1. Wingspan Portfolio Advisors Default Servicing Solutions

2. Contents • Executive Summary • Market Context • Competitive Advantage • The Wingspan Difference • Profiles of Management Team

3. Executive Summary • A new default servicing specialist focused on creating and maintaining long-term paying relationships with highly delinquent borrowers by rebuilding their financial strength through strategies tailored to each borrower’s unique situation • Battle-tested and proven senior management team with a successful track record building start-ups • Unparalleled understanding of the servicing industry, servicer characteristics, best practices, and performance drivers • A unique strategic alliance with DRI Default Management, the industry-leading default technology provider, enables unsurpassed technological solutions • A founding partner of the Coalition for Mortgage Industry Solutions • Performance focused and analytics driven

4. Contents • Executive Summary • Market Context • Competitive Advantage • The Wingspan Difference • Profiles of Management Team

5. Servicers Need a Wingman “The wingman is absolutely indispensable. It's another set of eyes protecting you. That the defensive part. Offensively, it gives you a lot more firepower.”-Lt. Col. Francis S. "Gabby" Gabreski, USAF, 28 victories in WWII and 6.5 MiGs over Korea. Expected state of the World Current state of the World • Credit losses remain contained • Existing staff and strategies maintain losses at an acceptable level • Credit losses growing industry-wide • Additional staff and new strategies are required • Poor loan resolution performance no longer offset by home price appreciation • Unprecedented volume of defaults • More delinquent loans than servicers can work • Some loan types requires unique strategies and skills • Insufficient internal capacity to maximize the value of every loan type • Servicers require specialists to supplement their core capacity Wingspan complements servicer strengths

6. Case Study Second Mortgages Require Unique Strategies • Second mortgage originations were at all-time highs. • Now, nonperforming second mortgages are exploding in volume. • Source, National Mortgage News. • There are very few servicers with the skills and tools necessary to cure nonperforming second mortgages. • The ultimate value of a nonperforming second mortgage does not principally depend on collateral value but on the borrower’s psychology.

7. Contents • Executive Summary • Market Context • Competitive Advantage • The Wingspan Difference • Profiles of Management Team

8. Experience • Strategies guided by a deep understanding of best practices, servicing technology, and servicers’ operational practices • Servicer practices are frequently not apparent to third parties but if known beforehand increase performance lift, for example: • Portfolios from servicers with collateral-focused late stage workout processes will benefit from Wingspan’s reperformance-focused workflow • Portfolios from servicers with strict NPV-based workout approval criteria will benefit from Wingspan’s Behavioral Outcome Decisioning • Portfolios from servicers that overlook second lien workout opportunities will benefit from Wingspan’s specialized recovery processes • Experience working with many servicers highlights hidden areas of risk or opportunity

9. Traditional Strategies Reduce Cost but Increase Loss Strategy Potential Shortcoming Implications/Impact Dialer-based calling 80% of skips are still in their homes  Loss Frequency Scoring Don’t call delinquent borrowers  Loss Frequency Strict workout qualification Reject viable opportunities  Loss Frequency Foreclosure outsourcing Miss reperforming opportunities  Loss Severity Leave money on the table  Loss Severity Limited third party data NPV-based decisioning Ignores borrower psychology  Total Loss Under-incented staff Under-served borrowers  Total Loss

10. Investor-Focused Strategies Reduce Net Loss Typical Special Servicer Advanced Special Servicer    Dialer-Driven Outbound Calls    Legal Network Management    Timeline-Based Event Tracking   Scoring-Based Contact Strategy   NPV-Based Workout Decisioning  Proactive Information Management  Reperformance-Focused Workflow  Fully-incentivized Workout Group Behavioral Outcome Decisioning 

11. Contents • Executive Summary • Market Context • Competitive Advantage • The Wingspan Difference • Profiles of Management Team

12. The Wingspan Difference Proactive Information Management Focus on Reperformance • Fully automated data gathering prior to borrower contact • Advanced analytics consider the factors that affect each loan and determine servicing strategy • Incentives targeted to maximize reperforming loans • Logical consequences of noncooperation encourage continued payments Fully Staffed/Fully Incentivized Behavioral Outcome-Based Decisioning • Loans with greatest opportunity concentrated with highest skill positions • Aligned incentives ensure servicing intensity • Psychological equity creates leverage • Informed listening establishes trust • Legal remedies initiated only to return borrower to negotiating table

13. Maximum Results through Superior Information Management Wingspan’s loan resolution logic evaluates the factors influencing each loan and identifies those loan resolution strategies best suited for a given borrower’s situation When Wingspan initiates contact with the borrower, we are prepared with an in-depth understanding of the borrower’s circumstances and the recovery potential of the loan Wingspan’s advanced analytics determine the servicing strategy for each loan

14. Focus on Reperformance Like Traditional Servicing Only Backwards Logical Consequences of Non-Cooperation • Strong incentives to return to reperforming • Focused on cure - not collateral • Designed to motivate resumed negotiations • Workout efforts continue throughout Loan Resolution Reperforming Performing After 3 Payments < 30 Days Delinquent Bankruptcy BK Reperforming BK Performing Borrower Resumes Cooperation Borrower Non-Cooperation Legal Strategies/Logical Consequences Foreclosure Suit on Note BK Relief

15. Properly Aligned Incentives Create Powerful Lift • Wingspan is both fully staffed and fully productive • Borrowers receive dedicated attention from specialists who are ready and eager to talk to them • Wingspan’s reperformance-focused workflow concentrates servicing intensive assets with the highest skilled individuals • Loan Resolution Specialists earn more than 50% of their incentive income from returning loans to a paying status • Outbound call volume is moderated to ensure sufficient time is spent with each borrower • The reperforming workflow transfers loans that resume monthly payments to reperforming specialists who maintain payments until contractually current • Larger work queues • Lower compensation potential • Contractually current loans transfer to performing collections • Sole focus is maintaining payments • Still larger work queues

16. Behavioral Outcome Decisioning • Leaving room for flexibility in an inherently rules-based process • Relying solely on Net Present Value based decisioning: • Overlooks how the borrower’s feelings affect workout success • Neglects to consider the probability a non-qualifying workout will succeed • We also listen and learn: • Forms bond between the parties • Establishes mutual respect • Establishes our authority • Command of the facts through superior information management • Unambiguous willingness to help reinforced by incentive alignment • We recognize that borrowers frequently respond to non-monetary considerations that we call psychological equity: • Borrowers always think the house is worth more • Appreciate the social cost of losing the house • Recognize the inability to replace right away • Most borrowers do not wish to lose their home and will eventually reach out for help if someone is there Panic Points: Using our legal rights, data, and psychology to overcome borrower denial, motivate borrower cooperation, and maximize recoveries in the shortest possible time.

17. The Power of Informed Workflow • DRI seamlessly integrates vendor and third party data into Wingspan’s proprietary workflow and decisioning processes • Clients and vendors may access their relevant information and reporting in real time through DRI’s .Net interface • Wingspan’s workflow intelligently automates vendor referrals, performance instructions, and product ordering

18. Active Servicer Management Wingspan Also Creates Lift Through The Proactive Oversight of Third Party Servicers • Develop Action Plans • Reporting and performance analysis identifies underperforming or high-risk loans or processes • Work with the servicers to remediate • Ensure adequate resources are available • Frequent contact ensures follow-through • Continuing Follow-up and Onsite Reviews • Ensure servicing intensity and loan resolution strategies meet best practices and preferred strategies • Validate data provided by the servicer • Monitor servicing liquidations, advances, charge-offs • Implement Changes and Best Practices • Recommend outsourcing solutions where warranted • Implement servicer performance incentives where advantageous

19. Active Servicer Management • Wingspan has the tools and the experience necessary to manage third party servicer performance and to identify areas where proactive intervention will improve performance • The ability to create servicing “lift” drives improved investment returns, uncovers hidden opportunities, and sharpens future bids Improved Performance Acquire Ensure Follow-Through Price Active Servicer Management Pricing Analytics Score Card Select Portfolios Develop Action Plans ID Performance Exceptions Analyze Performance

20. Contents • Executive Summary • Market Context • Competitive Advantage • The Wingspan Difference • Profiles of Management Team

21. Steven Horne, President • Recently completed the reorganization of Fannie Mae’s National Servicing Organization. • Developed new servicer scorecard, risk-targeted strategies, and performance incentives. • Formerly a partner with Sherman Financial Group • Led the creation of 3 successful business lines: • Delinquent second mortgage purchasing and servicing • Chapter 13 credit card purchasing and servicing • Mexican unsecured consumer lending and servicing • Developed innovative loan resolution strategies, systems solutions, and workflow. • Earlier Positions • MSV - developed start-up into a leading provider of outsourcing services for Freddie Mac. • Ocwen Financial - Director of Default Servicing during Ocwen’s period of most rapid growth. • RTC - Lead attorney for asset teams that recovered over $5 billion from portfolios of complex commercial loans, participations, securities, and real estate. • Frank, Bernstein, Conaway & Goldman – Successfully defended high profile financial institutions in complex securities fraud and lender liability suits. Cases featured twice in Forbes. • JD from George Washington and BAs in Economics and English from Emory.

22. Catherine Castle, Analytics • Currently an AVP with Option One responsible for developing and executing secondary market strategies for Option One’s mortgage assets including sub-prime, Alt-A, and scratch and dent • Develop models to optimize secondary market execution • Coordinate secondary market transactions with investment banks, GSEs, and other counterparties • Previously, as Vice President of Business Analysis for Resurgent Capital Services, served as the principal architect of Resurgent’s automated placement and recall strategy used to manage the recovery strategy for approximately 14 million unsecured consumer accounts. Instrumental in developing Resurgent’s: • Price modeling, • Collateral valuation modeling,and • Business process reengineering • Earlier positions: • VP for Market Research and Analysis with Homegold, Inc. • AVP for Fleet Mortgage Group focused on portfolio valuation and hedging strategies • M.S. in Applied Mathematics from the University of South Carolina • Motorola-certified six sigma black belt.

23. Suzanne Singer, Business Development • Most recently, Ms. Singer was a Director in the Institutional Client segment at GMAC-RFC, working with large subprime mortgage companies, banks, and mortgage bankers. • Before rejoining GMAC-RFC, Ms. Singer was the National Sales Executive for Option One Mortgage Corp., where she identified, developed, and managed all sub-servicing relationships. • Ms. Singer began her career at GMAC-RFC in the Distressed Mortgage Services Group, where she sourced the acquisition of non-performing assets and REO through customized programs that met the clients’ needs and provided solutions to most effectively manage their balance sheets. • Previously, Ms. Singer was a Manager in the Servicer Division at Freddie Mac where she developed, implemented, and managed Freddie Mac’s Helping Hand Outsource program where she managed key servicer relationships and established policies, procedures, and controls for the program. Prior to Freddie Mac, Ms. Singer was a senior consultant in the real estate services practice at Laventhol & Horwath. • Ms. Singer has a bachelor of arts in economics from The College of William & Mary.

24. Georgia Moses, Operations • Twenty-five years of overall servicing experience including conforming and non-conforming loans; management of investor and mortgage portfolio accounting; origination and servicing quality control; and strategic servicing initiatives (e.g. servicing system conversions and major portfolio transfers). Additional experience in the area of risk management and acquisitions due diligence focusing on default servicing functions. Previously worked with MacAndrews and Forbes Holdings Group and served as Senior Operations Manager of Millenium Mortgage. • Most recently, Ms. Moses spent ten years with Fannie Mae as a Servicing Consultant and as Business Manager of the National Servicing Organization. In that capacity reviewed new servicers for Fannie Mae approval, worked with servicers to identify operational and process issues. Developed remediation plans and directed the implementation of required process improvements. Supported servicers training needs. • Masters of Business Administration, Accounting – University of Rochester, Rochester, NY • Certified six sigma black belt

25. For More Information Steven Horne, President Wingspan Portfolio Advisors, LLC 214-789-0943 steve@wingspanadvisors.com