SMTM Mortgage A Subsidiary of Really Big Profits Bank AKA Jeff’s Favorite Team

1. SMTM MortgageA Subsidiary of Really Big Profits BankAKA Jeff’s Favorite Team Strategic Business Plan

2. Show You The Money… Jerry McGuire, CEO

3. 2002-2003 Business Plan • Make Money… Survive with alignment to long-term Business Strategy • Caveat: Do whatever we need to! • Focus on “New” A Paper Market • Leverage Call Center (Direct) • Leverage Expertise on lower quality loans • East Coast Focus • Improve Morale

4. Setting the Stage • Strong Return on Equity: • Started at -14.71% • Returned 11.97% in 2003 • Production – Grew 2X • Started at $390 million • In 2003, $712 million • Yield Growth • Started at 2.53% • Grew in 2003 to 3.34% (Peer Group Best!)

5. It’s All About … The Money

6. The Mission Moves Me… (It’s why we’re here) Long Term Vision: • To provide Really Big Profits Bank (RBPB) a consistent and high level of profitability through the operation of a full-service mortgage banking operation. Mission: • To operate as a Top 3 full-service mortgage lender (market share) within our Bank’s footprint. • To acquire and retain customers for the Bank while promoting the American Dream of Homeownership. • To sell the right products to the right customers at the right price through the effective use of technology, an investment in our colleagues, and an improved operational workflow. • To focus our efforts along key products segments, distribution channels, and geographic regions.

7. Analysis Analysis Provided By Renee Zellweger “Isn’t she SWOT?”

8. External Environment Analysis - Threats • Legal and Regulatory • Predatory lending (sub-prime offerings) • New Regulatory Oversight (acquisition by Bank) • Competition • Growing market share in Bank’s footprint • A Paper Focus Strategy • Margin Squeeze • Macro Market • Volatility (interest rates, production) • Economy (employment, credit quality) • Technology Integration • “Keeping up with the Joneses” • Investment in infrastructure to be competitive

9. External Environment Analysis – Opportunities • Growing Market for Alternative Products • First Time Home Buyers • Immigrant Borrowers • Customers • Growth in new geographic markets • Economy • Forecast improving in targeted regions • Suppliers and Technology • Cost of new technology decreasing • Leveraging new suppliers (Bank)

10. Internal Strengths and Core Competencies • Non-conforming production • Call Center Operations • Affiliation with Bank • Capital, Technology, Branch Network • Regional Prowess • Dedicated Middle Management Team

11. Internal Weaknesses • Prior Leadership – Executive Turnover • Poor Morale in some areas of firm • Loss of Production Staff (need to rebuild) • Staff Turnover • Outsourced at Bank • New Product Line Expertise • Outdated Technology • Spread too thin / Lack of Focus

12. Internal Opportunities • Cross sell of Bank’s customers • Leverage of Bank’s branch network • Capital for expansion, marketing, and technology • Cost of funds • Production expansion and/or segmentation • Geographic and Channel Focus • Variable costs origination source - conduit • Low Cost Expansion (branches) • Revenue diversification • Non interest income

13. Internal Threats • Time… To succeed! • Survivability: Need to make a profit • Costs and staffing efficiency • Management expertise and leadership • Lack of focus along product, channel, and geographic markets • Operational integration with Bank • Core competency… does it fit Bank?

14. Strategic Directive • To Grow “Top Line and Bottom Line”

15. Strategic Objectives • Grow Production • Maintain High Yields • Leverage Bank Affiliation

16. Objectives • Grow Production • Goal: To attain top 3 market share position within Bank footprint by 2008. • Strategy: To increase marketing in retail and consumer direct challenges • Strategy: To offer full menu of mortgage products to Bank customers • Strategy: To segment product offerings (sub-prime) along distribution channels • Strategy: To implement CRM technologies to leverage Bank’s customer base • Strategy: To implement “That Kind of Relationship” bank affinity marketing

17. Objectives • Maintain High Yield (High Service/High Profitability) • Goal: Maintain superior margins as demonstrated by Peer Group studies • Strategy: “Help Me Help You” Customer Service Center • Leverage CRM technology, Call Center Tech, and “TKOR” affinity marketing • Strategy: “You had me at Hello” customer retention program • Strategy: To implement cost saving technology - integrate systems

18. Objectives • Leverage Bank Affiliation • Goal: To increase number of customer Bank products held by 35%. • Strategy: KWAN cross partnerships (relationship of the heart) • Mortgage and bank operations cross-sell • Strategy: To fully staff all Bank Branches with LO’s by 2005 • Strategy: Trusted Advisor Program – “Did you have the talk?” • “Page 5” of the 1003 • Strategy: To create bank portfolio outlet for new products • Strategy: Integrate all operational systems by 2006 • The Human Head weighs 8 pounds…

19. Specific Thoughts • Mortgage Originations In-House • Best Execution on Servicing • Cross Sell, Cross Sell, Cross Sell • Full Service our Customers, Segment the Rest

20. It’s all about the Mission Statement • Success to grow the top and the bottom • Track Record to boot • To Show YOU the Money

21. Show Me the Money We’ve shown you our results and our plan… Now it’s your turn to show us the money. Big Base, Bonus, Options, Stock, Company Cars (Jaguars preferred), Expense Accounts galore, Because we took a company that was lying paralyzed and is now doing the TD Dance in the End Zone! We’ll do it again!

22. Thank You…