HOW TO SUCCEED IN TIMES OF

1. HOW TO SUCCEED IN TIMES OF risk

2. missing Know what you’re

3. Know what you’re missing 1 Do I understand the credit and collateral risk drivers and composition of my portfolios? Can I properly assess the value and risk potential of distressed loans? What happens to my capital position if my Balance Sheet composition or broader market deteriorates even further? Do I have the capability to estimate loss reserves adequately? Am I comfortable answering all of the regulators questions? 2 3 4 5

4. missing Know what you’re PrimaticsFinancial’s Evolv Risk platform has the tools to answer your key risk questions—so you can make business decisions that lead beyond survival, to success.

5. answers Know you need

6. answers Know you need Evolv Risk is ideal for: banks mortgage insurers securities investors hedge funds and private equity firms

7. answers Know you need Use Evolv Risk to: balance the risk and rewards for valuing acquired and existing consumer and commercial loans determine securities investors alternative pricing determine risk management and segmentation strategies for best execution purposes

8. questions Ask the hard

9. questions Ask the hard 1 How do I generate cash flows on a toxic portfolio? Evolv Risk is integrated with complex credit, prepayment and roll rate models using monte-carlo simulations and recent performance for cash flow generation and model based valuation.

10. questions Ask the hard 2 How is the performance of the portfolio affected over time? Evolv Risk creates comparative and trending reports that provide deeper insights you need. The continuous assessment of your expectations of performance to actual is critical for success.

11. questions Ask the hard 3 How can I identify toxic loans for modifications? Evolv Risk uses models that identify loans on the verge of delinquency and default, giving you an opportunity to modify them and reduce chances of foreclosure or decline in ROI.

12. questions Ask the hard 4 How did the portfolio get where it is? Evolv Risk conducts thorough portfolio inspection, providing a comprehensive view of causes and effects. 5 How prepared is my organization for the portfolio risk? Evolv Risk can run a variety of execution scenarios to approximate both losses and associated capital requirements.

13. questions Ask the hard 6 What would happen if HPI falls drastically, etc.? Evolv Risk performs scenario analysis to stress your assumptions, giving you an informed look into the future.

14. need Get information you use In a format you can

15. need Get information you use In a format you can Meet the Challenges of Distressed Portfolios Evolv Risk: • Is market tested with a variety of distressed consumer portfolios. • Processes complex cashflow schedules, including support for negative amortizing products with payment recasts.

16. need Get information you use In a format you can Meet the Challenges of Distressed Portfolios Evolv Risk: • Utilizes three home price indices: Case-Shiller, OFHEO and National Association of Realtors. • Incorporates credit, prepayment and loss curve models. • Applies custom index-rate forecasts.

17. need Get information you use In a format you can Meet the Challenges of Distressed Portfolios Evolv Risk: • Supports a broad range of loan products, including fixed-rate, hybrid ARM, interest-only, option ARM, balloon, construction, and home equity line of credit. • Is integrated with proprietary and user based roll rate models for enhanced risk assessment and reporting

18. need Get information you use In a format you can Generate Customized Analysis and Reports Evolv Risk: • Enables you to define scenarios and models, adjust HPI and rate forecasts, navigate cash flows, and inspect loan-level scenario outcome. • Generates web-based displays of information, with dynamic drill-down capabilities.

19. need Get information you use In a format you can Generate Customized Analysis and Reports Evolv Risk: • Provides dashboard snapshots of results for management review. • Easily integrates with data repositories and export capabilities.

20. issues Target key process

21. issues Target key process Now you can quickly and decisively target the key issues your organization faces around credit and interest rate risk for both residential and commercial loan portfolios.

22. issues Target key process The Evolv Risk Solution: Proprietary Loan Data Import Rule Engine Challenges Managing complex data rules to transform source system data into model-ready data can be an arduous and frustrating task. Maintenance of rules often requires complex system enhancements. Managing audit and controls around data is inefficient and impractical.

23. issues Target key process Your Advantages The Excel-style interface easily transforms source data into model-ready data. Embedded validation rules are maintained by the user, with no system enhancement required. Complete audit and controls work with original and transformed source data.

24. issues Target key process • The Evolv Risk Solution: • Loan Risk Model Rule Engine, Cloud Computing, open interface architecture Challenges Inflexible platforms do not allow you to plug in custom programmatic or non-programmatic models. Internal limitations, such as hardware cost or maintenance, constrain performance.

25. issues Target key process Your Advantages Built-in support for non-programmatic models lets you define your own models in an Excel-type interface, and even upload programmatic models directly into the system. An on-demand computing environment means you pay hardware costs only for usage. The cost-effective approach is also highly secure. Your data is processed and destroyed, never stored.

26. issues Target key process • The Evolv Risk Solution: • Loan Analytics and Reporting Tool Challenges Reports are canned and not ad-hoc. It can be difficult to drill down into problem areas for more detail.

27. issues Target key process Your Advantages Embedded OLAP (online analytical processing) functionality delivers vital flexibility. Drill-down capabilities provide the level of insight you need.

28. works Use what

29. works Use what 1 Get Lowest Level Data Asset Detail Deal Info Tranche Info Historical Payment Information

30. works Use what 2 Determine Market Assumptions Interest Rate Projections HPI Projections (National, State or MSA Level) Foreclosure Timelines Organize Assumptions into Scenarios (Likely vs. Toxic)

31. works Use what 3 Generate Future Cashflows Scheduled Cash Flows Unscheduled Prepayments Defaults / Recoveries Deterministic vs. Stochastic Scenarios Roll Rate migration matrices

32. works Use what 4 Generate Risk Metrics / Intrinsic Value Conditional Default Rates (CDR) Loss Severity Rates (LSR) Loss Coverage Multiple Unrealized Loss %

33. works Use what 5 Roll Up Metrics to Holding Level CDR / LSR at the Tranche Level Account for Credit Protection

34. works Use what 6 Perform Stress Test / Drill-down Analysis Results Across Vintage, Products, MSA, FICO, Issuer, etc. Run Detailed Analytics on Specific Sub-Set Loan Level Cash Flows and Fair Value

36. confidence Model with

37. confidence Model with Supported Products Adjustable Rate Products Option ARMs Home Equity Lines of Credit Support for both first and second Liens Support for Prime, Sub Prime, ALT-A Construction Mortgages

38. confidence Model with Key Model Drivers FICO Equity in the House Coupon (Refi Incentive) Market Loan to Value (Adjusted for HPI changes) Product Type, Seasonality, and more

39. confidence Model with Roll Rate Matrices Develop cohort curve estimations by delinquency buckets Track historical and current loan status transitions Record and track Charge-off information Generate loan loss estimations

40. success Take charge of Evolv Risk—the first and only web-based risk management platform—delivers the flexibility and computing power of an enterprise analysis solution at an impressive cost savings.