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billion in consumer relief for about 164,000 homeowners. The bank is required to offer more than $7.6 billion in relief through first and second lien modifications and foreclosure avoidance solutions, but credit for these actions is not given dollar-to-dollar. Thus, the actual gross amount of relief will be much higher than the actual amount credited, the bank explained during a conference call with reporters in November. One form of consumer relief offered through the settlement is first-lien principal forgiveness, which BofA has offered to 30,000 customers, leading to $4.75 billion in principal reductions. On average, nearly $150,000 in principal balance is reduced through the settlement's consumer relief initiatve and monthly mortgage payments are lowered by about 35 percent. During the company's conference call, Eric Telljohann, BofA SVP, revealed roughly 60 percent of the first-lien reductions performed by Bank of America so far were applied to investor portfolios, while 40 percent went to the bank's own portfolio. When determining who qualified for the principal reduction program, Telljohann says the bank took all borrowers who were eligible in the bank's portfolio as of January 31, 2012, and added, "It was a matter of delegated authority from the investor." Since the borrowers who receive a principal reduction are delinquent and underwater, Telljohann explained that these debt-forgiving modifications are good for both the borrower and the investor. "We always are evaluating to make sure we have a win-win … that both parties benefit," Telljohann said, further stating it is BofA's belief that "by providing this payment relief, we are preventing a foreclosure from happening." However, Chris Katopis, executive director of the Association of Mortgage Investors, views the settlement as harmful to investors. "Many of us expected a settlement to hold servicers responsible for their misconduct; not a bank bailout settling with other people's money," Katopis said in an emailed statement. In addition to principal reductions, Bank of America announced it has provided 62,000 borrowers with short sales or deedsin-lieu of foreclosure under the settlement. Interest rate relief is another option offered by the bank. As of September 30, about 1,000 interest rate reductions have been completed. Rates are reduced to 4.25 percent and are offered at no cost for eligible 150 borrowers who are current, but have a loanto-value ratio above 80 percent. In addition, the bank has offered more than $2.4 billion in assistance to second lien holders through equity debt elimination and extinguishment of the lien. As of the end of September, about 43,000 customers received second lien forgiveness, which averaged about $56,000 in relief for each. Under the settlement terms, BofA and the other four servicers subject to the agreement were required to implement more than 300 servicing standards by early October. Bank of America announced it is fully in compliance with those servicing standards. Ohio rank: 10 90+ Day Delinquency Rate Foreclosure Rate october 2012 3.17% Unemployment Rate 3.90% 6.9% year ago 3.22% 4.49% 8.3% percent point change -1.6% -13.3% -16.9% Top County MahOning COunTy 90+ Day Delinquency Rate Foreclosure Rate october 2012 4.24% 6.67% year ago 4.32% 7.79% percent point change -1.8% STAT INSIGHT 6.1% Top Core-Based Statistical area BuCyruS, Oh 90+ Day Delinquency Rate 4.20% Source: Clear Capital rank: 49 0.68% Unemployment Rate 0.91% 3.1% year ago 0.72% 1.14% 3.5% percent point change -5.2% -19.7% -11.4% Top County RaNsom CouNTy 90+ Day Delinquency Rate october 2012 0.96% Foreclosure Rate 2.77% year ago 1.50% 2.87% percent point change -36.1% -3.6% Top Core-Based statistical area miNoT, ND 90+ Day Delinquency Rate Foreclosure Rate october 2012 0.90% 1.25% year ago 1.43% 0.74% percent point change -37.5% note: 6.35% year ago 4.61% 6.77% percent point change -9.0% -6.2% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the October 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary October 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. IN THE NEWS North Dakota Foreclosure Rate october 2012 Foreclosure Rate october 2012 Annual home price growth in Raleigh, and Cary, North Carolina, two of the lowest performing major metro markets in November 2012. 90+ Day Delinquency Rate -14.4% 68.5% The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the October 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary October 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. Inc. Magazine Awards Residential Finance for Job Growth Residential Finance Corp., a nationwide mortgage lender based in Ohio, received recognition last month for the surge in job growth the company has experienced. RFC was featured in Inc. Magazine's Hire Power Awards list, which includes 100 businesses in the United States that have generated the most jobs in a three-year period. RFC's job growth puts it at number five in Ohio. During the period spanning from 2008 to 2011, the company increased its employee base by 74 percent and went from 185 to 321 employees. Inc. Magazine created the award to honor job creators in the nation. In fact, Inc. calls those on the list "the real heroes of the American economy." "At Residential Finance, we are as passionate about creating a positive, growthoriented culture as we are about providing

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