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VISIT US ONLINE @ DSNEWS.COM IN THE NEWS Total Mortgage Services Named a Top Workplace selected as one of the top places to work in Connecticut by Hearst Connecticut Media Group. The company selects the top workplaces Total Mortgage Services, LLC, was based on employee feedback through a survey conducted by WorkplaceDynamics, LLP, a research firm on organizational health and employee engagement. "Total Mortgage is very proud to have District of Columbia rank: 28 90+ Day 3.35% 3.10% 8.0% 90+ Day 3.35% year ago 3.10% percent point change 8.0% some of the best talent in the mortgage lending industry working to help borrowers pursue the dream of responsible homeownership," said John Walsh, president of Total Mortgage. "Their commitment to integrity and service excellence is critical to Total Mortgage's continued success and our ability to continue attracting the best talent in the business." Founded in 1997, Total Mortgage Services is a direct-to consumer and wholesale mortgage lender headquartered in Milford, Connecticut. Delaware rank: 21 90+ Day 3.82% 2.72% 40.3% 90+ Day 5.28% year ago 3.66% percent point change 44.0% -13.2% Top Core-Based Statistical Area DOVER, DE 90+ Day 5.28% year ago 3.66% percent point change 44.0% -13.2% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90- plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the August 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary August 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. 4.68% Delinquency Rate august 2012 4.06% Foreclosure Rate 4.68% Delinquency Rate Foreclosure Rate august 2012 3.25% year ago 3.83% percent point change -15.2% Top County KENT COUNTY Delinquency Rate august 2012 4.06% Foreclosure Rate Unemployment Rate 6.9% 7.4% -6.8% 8.9% WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV 90+ Day Top Core-Based Statistical Area Foreclosure Delinquency Rate august 2012 3.35% year ago 3.10% percent point change 8.0% 8.9% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90- plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the August 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary August 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. 2.47% 2.69% Rate 2.47% Delinquency Rate Foreclosure Rate august 2012 2.69% year ago 2.47% percent point change 8.9% DISTRICT OF COLUMBIA Top County Delinquency Rate august 2012 2.69% Foreclosure Rate Unemployment Rate 8.8% 10.5% -16.2% protect the American taxpayer, and must not further degrade the housing market," he said. As an alternative to the eminent domain program, Campbell, along with Rep. Gary Peters (D-Michigan), introduced H.R. 5940, the Preserving American Homeownership Act. This bill will direct Fannie and Freddie's conservator to establish a program to pilot principal reductions for loans owned or guaranteed by the GSEs. David Stevens, president and CEO of the Mortgage Bankers Association, spoke out in support of the proposed law. "While the problem of underwater borrowers continues to slow the housing recovery, using eminent domain to take those mortgages is not a responsible answer. Beyond the obvious legal issues of using eminent domain in such a radical way, the government seizing mortgages would set a precedent that will hurt those communities and borrowers it is most designed to help," Stevens said. Did Fannie Mae Pay Too Much in BofA Deal? IN THE NEWS Congressman Takes Eminent Domain Battle to D.C. introduced a piece of legislation to the U.S. Congress, designed to keep local governments from using eminent domain to seize homes with underwater mortgages. The Defending American Taxpayers from Abusive Government Takings Act will prohibit Fannie Mae, Freddie Mac, the Federal Housing Administration, and the Veterans Administration from purchasing or guaranteeing loans originating in counties where a municipality has seized a mortgage through eminent domain within the last decade. Campbell says the act is intended to Rep. John Campbell (R-California) Program, Washington, D.C.-based Fannie Mae entered into a deal with North Carolina- based Bank of America (BofA) in July 2011 to purchase mortgage-servicing rights (MSR) for approximately 384,000 high-risk loans the GSE guarantees. The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) recently reviewed the deal and the program in general. The idea behind Fannie Mae's High As part of its High Touch Servicing Touch Servicing program is to purchase the servicing rights for portfolios of high- risk loans it guarantees and transfer them to specialty servicers to mitigate losses. At the time of the Bank of America deal, the portfolio in question had an 11 percent delinquency rate. Fannie Mae estimated it could reduce losses by $1.7 billion to $2.7 billion by turning over the loans to a specialty servicer. The GSE has the option of transferring protect taxpayers' investments and preserve the rule of law. "There is no question that we need to take steps to assist American homeowners in distress. But these steps must not undermine rule of law, must not engage in corruptive and abusive practices, must servicing rights "for cause" without paying any fees to the current servicer, or "without cause" at a rate of twice the annualized servicing fee. However, the deal Fannie Mae and BofA negotiated requires the GSE to pay 2.4 times the annualized servicing fee; $512 million instead of $427 million. Even though there were some reservations about the price of the deal, FHFA ultimately approved it. 81

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