Credit Card Option Announcement

1. Credit Card Option Announcement March 21, 2008

2. Exciting News! As of April 2, 2008 homeowners will be able to use Credit Cards with the current Version 3 software. No more waiting until June to process those clients who have not been able to qualify for a HELOC or any other ALOC currently available. For agent training purposes only!

3. Corporate is dedicated to ensure that everyone has the most recent updates about this information. The Home Office staff is currently being trained to support this new process. Please refrain from calling the Home Office about this new process until the staff is completely trained to support you. We will keep the back office updated. Please check your back office often for the most up to date information.  Who Do You Call? For agent training purposes only!

4. Agent Communication • Do not release specific details of internal process • Agent must inform Client that Credit Card is a “last resort” ALOC • Agents should not attempt to teach Client credit card functionality • Agent informs Client that our Support Department may be calling to go over expense information if there are any questions

5. How to run an Analysis • Income: Include full income on analysis • Creditors: Only include creditors that can be paid off with a Credit Card • Analysis: • Use highest credit card rate in ALOC Interest Rate Field • Credit limit on the card must still meet required credit line • MMA Report: • Interest saved will not be guaranteed on v.3 of the program • Expenses amount will be full expenses • Page 4 of the Analysis MUST be filled out and client will need to determine which expenses will be payable with the credit card • Client must be provided with a duplicate of analysis (most notably page 4)

6. How to submit documents with a Credit Card as ALOC • $3,500 fee must still be in certified funds (no Credit Card checks) • Copy of ALOC agreement must provide: • All applicable interest rates • Cash advance fee schedule • To activate a Credit Card file Agent must include additional disclosure form • A credit card file may be expected to take up to 5 days for activation of the Client’s program

7. Rule #1 • The client  must have unlimited check writing capabilities from their credit card. • The majority of credit card companies will have this capability but it is wise to have your client double check. For agent training purposes only!

8. Rule #2 • Credit card companies charge different interest rates for different types of transactions. • With Version 3, when inputting the interest rate for the credit card “credit line” in the Analysis software you must enter the highest transaction rate the client’s Credit Card can be charged. This makes little difference in the homeowners payoff time. Version 4 will take exact rates. • Remember we want to under promise and over deliver. For agent training purposes only!

9. Rule #3 • If the client chooses the Credit Card option to utilize the Money Merge Account™ system, the activation fee cannot come directly from the credit card. • The client will have three options to pay the $3,500 fee • The client can write a check from the credit card to the bank and have the bank issue them a cashier's check for the fee. • The client can write a personal check for the fee. (Remember there is a 7-10 day waiting period for the personal check to clear) • The client can purchase a money order for the activation fee. For agent training purposes only!

10. Rule #4 • If the client chooses to use a credit card with Version 3 then the product limited guarantee is not applicable. • Using the credit card option with Version 3 is temporary until Version 4 is completed. It will work well, but since the guarantee is designed for the exact interest and time given on the Analysis, this guarantee is not available for clients using a credit card with Version 3. All Version 3 credit card customers will have their final analysis re-run with the release of Version 4 and will have a full guarantee on their new analysis. The results will be VERY close. • There will be a paragraph added to the limited guarantee that explains this more clearly. For agent training purposes only!

11. Rule #5 • Please remember that the most optimal way to utilize the Money Merge Account™ system is still with a HELOC. • The HELOC is potentially tax deductible, and potentially offers a greater volume of funds available to the client. • The “High Credit Limit” calculation requirement for Version 3 Credit Card customers is the same as with HELOC’s. The high credit limit calculation requirement will be lower with Version 4. For agent training purposes only!

12. Summary • Keep it Simple. • Client will sign extra disclosure found in agent documents. • Don’t just sell CC solution. HELOC solution still is the optimal way to run the system. CC solution should be viewed as a step to get a HELOC when eligible. • Still have to pay $3,500 with certified funds. • Run Analysis same as you do today except leave out creditors where you can’t pay a credit card. • Run Analysis with maximum potential interest rate of CC. • The Home Office staff will ensure that your clients are fully supported on their Money Merge Account™ system regardless of what option they choose to use. Please leave it to the Home Office to train clients on Credit Cards. For agent training purposes only!