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F1 Strategy - Charting Business DNA

The document outlines F1 Strategy's innovative business advisory approach, which emphasizes the need for effective strategy execution rather than just formulation. It employs a proprietary process combining top-down and bottom-up methodologies to identify weak points in strategies, using in-depth analytics and a business DNA map to facilitate actionable metrics. Ultimately, the aim is to generate sustainable competitive advantages for clients through quantifiable frameworks and partnerships.

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Presenting F1 Strategy: Charting Your Business DNA Tuesday, November 17, 2009
Content Of This Document Content Executive Summary Objective Understanding Strategy’s Weak Points To introduce F1 Strategy, a Our Approach business advisory boutique Top-Down Approach focused on helping companies successfully execute on their Rendering Strategies Actionable strategies. Bottom-Up Approach The practice leverages cause- Implementum effect metrics and in-depth analytics to chart the DNA of a In-Depth Analytics business. 80% Solutions © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 2
Executive Summary Business Advisory Boutique With Unique Hands-On Approach Enabling Fast Quantifiable Results F1 Strategy Overview Generates feasible Strategic solutions creating thinking strategic advantage combined and marketable with added value pragmatism Accelerates design of solutions through iterations and pilots Partnership with Leverage of Partnership with Leverage of clients to execute on FAST proprietary clients to execute on FAST proprietary a hypothesis-driven QUANTIFIABLE framework involving a hypothesis-driven QUANTIFIABLE framework involving and iterative RESULTS different levels of the and iterative RESULTS different levels of the approach organization approach organization Ensures successful transition from Sustainable strategy formulation Sustainable implementation to strategy execution Generates implementation through sustainable through proprietary momentum and proprietary software ensures client software implements implements ownership © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 3
Understanding Strategy’s Weak Points Business Ideas Fail Not Because Of A Lack Of Good Strategies But Due To Poor Execution Why Do Strategies Fail? Typical Questions: ― How do we intend to create value for the shareholder? Major reasons behind strategy failure*: ― How do we execute our strategy? ― How are we going to make money? ― Incorrect implementation of a correctly ― How are we going to help our clients (Value designed strategy Proposition)? ― Latent resistance by the organization’s ― Should we continue with all our offerings? employees and partners ― How do we hold people accountable (for ― Incorrect diagnosis of strategic success and failures)? requirements ― Do we have he right vendor partnerships? ― Incorrect strategy designed for a correct ― What is our exposure to market risks? set of strategic requirements Facts: — Culture eats strategy for lunch — You cannot manage what you do not measure — A Business DNA Map will provide the link between strategy formulation and strategy execution — You have more information about your business than ever before. But are you using it to outthink your rivals? If not, you’re failing to exploit a potent competitive tool** * Leo Hopf, Carlson School Of Management ** Competing on Analytics, Davenport-Harris, Harvard Business School Press 2007 © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 4
Our Approach F1 Strategy’s Approach Breaks The Status Quo And Moves Beyond Mere Advice Proprietary Process And Implements Top-Down Approach F1 Strategy Implements F1 Strategy partners with Proprietary software suite senior management to with historical as well as Strategic Objectives identify key pain-points F1 Strategy simulation views to help and opportunities cause-effect monitor and project framework links business performance DNA Map strategy using the following formulation to perspectives: Financial, strategy External, Internal and execution Resources Data Center Key Metrics Bottom-Up Approach In-Depth Analytics F1 Strategy coordinates Decision-making repertoire with subject matter leveraged by F1 Strategy’s experts (SME’s) to define problem solving process. and consolidate information © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 5
Top-Down Approach Partner With Clients To Identify Competencies And Capabilities Competency Pyramid Customer Shareholder Those critical core competencies that, in combination, deliver Platform(s) and sustain undisputed market leadership Core Capabilities and functions that have a direct and Competencies significant impact on competitiveness Capabilities and functions that are important to Enabling Capabilities competitive advantage in an indirect or enabling way Capabilities and functions that are basic and currently Supporting Capabilities necessary to the operation of a company © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 6
Top-Down Approach Help Clients Translate Their Mission Into Desired Outcomes Using A Proven Methodology Converting Intangible Assets Into Tangible Outcomes Partner with client, conduct Mission Partner with client, conduct Why we exist observations, perform initial observations, perform initial assessment (e.g., SWOT) Values assessment (e.g., SWOT) and develop hypotheses What’s Important to Us and develop hypotheses Vision What We Want to Be Strategy Our Game Plan Business DNA Map Translate the Strategy Business DNA Metrics Measure and Focus Targets and Initiatives What We Need To Do Personal Objectives What I Need To Do OUTCOMES Source: Robert Kaplan and David Norton © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 7
Top-Down Approach Implementing Strategies Depend On Understanding The Cause-Effect Between Strategic Objectives Sample Business DNA Map Financial -- 40% Optimize Market Increase Business Increase Profitability Presence Volume Client -- 25% Manage Price Provide exceptional Improve Client Competitiveness Customer Service Performance Internal -- 20% Reduce Cost to Manage Sales Implement critical Achieve superior Risk Produce Performance technology projects and Quality Rating Resources -- 15% Manage Vendor Reduce Turnover performance © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 8
Rendering Strategies Actionable A Business DNA Map Is Translated Into Objectives, Key Performance Indicators And Action Items From Business DNA Map To Actionable Metrics Financial -- 40% Optimize Market Increase Business Increase Profitability Presence Volume Well defined metrics are used to Client validate or readdress strategic -- 25% Manage Price Competitiveness Provide exceptional Customer Service Improve Client Performance objectives. They will help managers understand cause- Internal effect correlations. -- 20% Reduce Cost to Manage Sales Implement critical Achieve superior Risk Produce Performance technology projects and Quality Rating Resources -- 15% Manage Vendor Reduce Turnover performance BizCase Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% F3 Increase Business Volume Total Sale Volume 10% Client C1 Manage Price Competitiveness Competitive Score 10% -- 25% C2 Provide exceptional Customer Service Client Satisfaction Score 5% C3 Improve Client Performance Client Average Score 10% Objectives and themes in a Business DNA Map are used to Internal -- 20% I1 I2 I3 Reduce Cost to Produce Manage Sales Performance Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% build an actionable codecard I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month cumulative "Good" rating 5% used to clearly communicate Resources R1 Reduce Turnover % Turnover 5% strategic expectations down to -- 15% R2 Manage Vendor performance Vendor Performance Score 10% the individual levels. © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 9
Bottom-Up Approach Business DNA Metrics Are Quickly Built Using Available Client Systems To Standardize The Use Of Data Building Blocks Of Business DNA Codes Client Data Client Data Centralized Data Centralized Data Analytical Reporting Analytical Reporting Business DNA Codes Business DNA Codes BizCase Objective Measure Weight Target Metric Actuals Capacity Model Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% Information F3 Increase Business Volume Total Sale Volume 10% Client Performance Client -- 25% C1 Manage Price Competitiveness Competitive Score 10% Activity Based Costing C2 Provide exceptional Customer Service Client Satisfaction Score 5% C3 Improve Client Performance Client Average Score 10% Forecasting Internal -- 20% I1 Reduce Cost to Produce I2 Manage Sales Performance I3 Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% Compensation I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating Resources R1 Reduce Turnover % Turnover 5% -- 15% BizCase R2 Manage Vendor performance Vendor Performance Score 10% Single Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% Source F3 Increase Business Volume Total Sale Volume 10% Customer Client C1 Manage Price Competitiveness Competitive Score 10% Of -- 25% C2 Provide exceptional Customer Service Client Satisfaction Score 5% Cost Complaints C3 Improve Client Performance Client Average Score 10% Truth Internal -- 20% I1 Reduce Cost to Produce I2 Manage Sales Performance I3 Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating Resources R1 Reduce Turnover % Turnover 5% Databases -- 15% R2 Manage Vendor performance BizCase Vendor Performance Score 10% Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% Daily download F2 Optimize Market Presence F3 Increase Business Volume BizCase Share of Market Total Sale Volume 10% 10% uses agreed upon Client -- 25% C1 Manage Price Competitiveness C2 Provide exceptional Customer Service Competitive Score Client Satisfaction Score 10% 5% definitions to C3 Improve Client Performance Client Average Score 10% compile data into a target Internal -- 20% I1 Reduce Cost to Produce I2 Manage Sales Performance I3 Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating central data mart Resources -- 15% R1 Reduce Turnover R2 Manage Vendor performance % Turnover Vendor Performance Score 5% 10% current Turn Quality Time (# of issues) © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 10
Bottom-Up Approach Data Is Mined Without Introducing Complex And Expensive Systems Or Disrupting Business Flow Bottom-Up Approach To Single Source of Data Client Data Client Data Centralized Data Centralized Data Analytical Reporting Analytical Reporting Business DNA Codes Business DNA Codes Single Resources Needed Source Of Truth Depending on final solution (e.g., SQL, Oracle), an assessment of technical resources will be needed Yes Can we get the data No consistently with Prototype 1 to 2 FTEs will be needed to prototype the minimum effort? single source of truth, using MS Access for example Yes No Test and recommend Is the data correct? data fixes 1 to 2 FTEs will be needed to test the data Yes No Work with IT to Start Does the data identify data needs needed exist? and build database Mini-projects to be launched depending on recommendations and data needs © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 11
Bottom-Up Approach Information Is Organized To Allow In-Depth Analyses While Supporting And Not Paralyzing Decision-Making Three Levels Of Information Client Data Client Data Centralized Data Centralized Data Analytical Reporting Analytical Reporting Business DNA Codes Business DNA Codes High level overview of All products Conforming Jumbo Alt-A Week starting 01/28 02/04 02/11 02/18 02/25 01/28 02/04 02/11 02/18 02/25 01/28 02/04 02/11 02/18 02/25 01/28 02/04 02/11 02/18 02/25 Rank Wholesale 3 2 1 1 1 3 2 1 1 1 3 2 1 1 1 4 3 3 3 3 Correspondent 4 3 3 2 1 4 3 3 2 1 4 3 3 2 1 5 4 4 4 4 Retail 4 3 2 2 1 4 3 2 2 1 4 3 2 2 1 5 4 4 4 4 Diff from 1st Wholesale (0.180) (0.140) 0.000 0.000 0.000 (0.180) (0.140) 0.000 0.000 0.000 (0.180) (0.140) 0.000 0.000 0.000 (0.180) (0.140) 0.000 0.000 0.000 Correspondent (0.240) (0.200) (0.190) (0.140) 0.000 (0.240) (0.200) (0.190) (0.140) 0.000 (0.240) (0.200) (0.190) (0.140) 0.000 (0.240) (0.200) (0.190) (0.140) 0.000 Retail (0.215) (0.197) (0.165) (0.165) 0.000 (0.215) (0.197) (0.165) (0.165) 0.000 (0.215) (0.197) (0.165) (0.165) 0.000 (0.215) (0.197) (0.165) (0.165) 0.000 Executive business to compare channel Diff from 3rd Wholesale (0.040) (0.030) 0.032 0.041 0.065 (0.040) (0.030) 0.032 0.041 0.065 (0.040) (0.030) 0.032 0.041 0.065 (0.040) (0.030) 0.032 0.041 0.065 Correspondent (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 Retail (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 Price Wholesale (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) Correspondent (1.011) (1.012) (1.075) (1.120) (1.212) (1.011) (1.012) (1.075) (1.120) (1.212) (1.011) (1.012) (1.075) (1.120) (1.212) (1.011) (1.012) (1.075) (1.120) (1.212) Retail (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) performance in the Over the last three weeks all three On February 14th base price in the Jumbo's pricing has been especially Alt-A market size has remained Decision-Making channel competitive positions in the Wholesale channel was improved strong in the ARM market, which small and its pricing has been left marketpalce have improved from an by 12.5 bps. explains a 75/25 ARM/Fixed stable. average of 2 or 3 to 1 or 2. breakdown. This change was motivated by At this point without better product The improvement can be mainly findind that the price elasticity was All channels have seen market features pricing changes would be attributed to a considerably sufficient to make higher overall share increase, though, the market ineffective. improved base price for the revenue by increasing volume. remains small. marketplace, against each Conforming Fixed program. Jumbo pricing has also been improved. The current low volumes in the market, however, are likely to persist and keeping Jumbo no more than 7% of the overall product mix. other and over time Conforming 30-yr Price (6%) comparisons on 2/14/2008 Non-peer group Peer group HFW Lenders N. Califor nia S. Califo rnia Bellevue Dallas 20 20 20 20 94% 94% 94% 94% Peer Percentile 15 15 15 15 10 10 10 10 Conforming 30-yr Price (6%) comparisons on 2/14/2008 Non-peer group 5 5 5 5 Peer group 0 0 0 0 HFW -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 Pric e Lenders N. California S. California Bellevue Dallas Provid 20 Provid ○, -1.875 Provid 20 ○, -1.875 20 Provid ○, -2.250 20 ○, -1.875 94% 94% 94% 94% HFW ○, -1.666 HFW ○, -1.666 Peer Percentile HFW ○, -1.791 HFW ○ , -2.026 TBW ○, -1.565 TBW ○ , -1.565 TBW ○, -1.605 Chase ○, -1.951 15 15 US ○, -1.579 15 TBW ○, -1.890 15 US Bank ○, -1.529 US ○, -1.529 Flag ○, -1.508 Flag ○ , -1.508 Citi ○ , -1.562 CW ○, -1.875 CW ○, -1.500 10 WAMU ○, -1.500 10 Flag ○ , -1.508 10 NatCity ○, -1.875 10 WAMU ○, -1.500 Vertice ○, -1.405 Vertice ○ , -1.505 US Bank ○, -1.754 Vertice ○, -1.405 CW ○, -1.375 CW ○, -1.500 Flag ○ , -1.723 5 5 NatCity ○, -1.500 5 5 NatCity ○, -1.375 NatCity ○, -1.375 Mortg IT ○, -1.629 C iti ○, -1.312 Citi ○, -1.312 WAMU ○, -1.500 Horizon ○, -1.625 Information aggregated but HSBC ○, -1.312 0 HSBC ○, -1.312 0 HSBC ○, -1.400 0 WF ○ , -1.614 0 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 Mortg ○, -1.143 WF ○, -1.349 BOA ○ , -1.533 Managerial Monitoring Mortg IT ○, -1.143 Aurora ○, -1.125 Pric e Aurora ○, -1.125 BOA ○, -1.323 H SBC ○, -1.500 WF ○, -1.078 Chase ○ , -1.106 Mortg ○, -1.293 WAMU ○, -1.500 BOA ○, -1.023 WF ○ , -1.078 H orizon ○, -1.250 Provid Citi ○, -1.437 Provid Provid Provid ○, -1.875 ○, -1.875 ○ , -2.250 H orizon ○ , -1.000 HFW BOA ○ , -1.023 ○, -1.875 ○, -1.666 HFW Aurora ○, -1.125 ○, -1.666 HFW Vertice ○, -1.355 ○, -1.791 HFW ○ , -2.026 Wachovia ○ , -0.984 Horizon ○, -1.000 Chase ○, -1.066 TBW Aurora ○, -1.125 ○ , -1.605 TBW ○, -1.565 TBW ○, -1.565 ○, -1.059 Chase ○, -1.951 Chase ○ , -0.836 U S Bank W acho ○, -0.984 ○, -1.529 US Wacho ○, -1.529 US Wachovi ○ , ○, -1.059 -1.579 Branch TBW ○ , -1.890 Date Flag ○, -1.508 Flag ○, -1.508 Citi ○, -1.562 CW ○, -1.875 CW ○ , -1.500 WAMU Branch ○, -1.500 N. CA Flag S.Vertice CA WA ○, -1.508 AZ-1.505 TX FL AL NatCity NC NY ○, -1.754 MA ○, -1.875 NJ 02/01 02/04 02/05 02/06 02/07 02/07 02/10 WAMU ○ , -1.500 For t Lauderdale Vertice ○, -1.405 ○, US Bank Detroit Char lotte CW ○, -1.500 New Jersey Vertice ○, -1.405 CW ○, -1.375 Flag ○, -1.723 20 NatCity 20 ○, -1.375 Rank NatCity Conf 30-1.375Fixed 20 ○, Yr 3 2 NatCity 1 20 1 -1.500 1○, 1 1 Mortg IT 1 1 ○, -1.629 1 1 Conf 30 Yr Fixed 2 1 1 2 2 1 1 94% 94% Citi ○, -1.312 94% WAMU ○, -1.500 94% Horizon Citi HSBC ○ , -1.312 ○ , -1.312 H SBC Conf ○, -1.312 Fixed 15 Yr 4 3 HSBC 3 ○,3-1.400 3 3 3WF 3 3 ○,, -1.614 2 ○ -1.625 1 Conf 15 Yr Fixed 2 1 2 2 2 2 2 15 15 15 WF 15 ○, -1.349 Mortg IT ○, -1.143 Mortg ○ , -1.143 Govt 30 Yr Fixed 4 3BOA 3 3 3 3 3BOA 3 3 -1.533 2 ○, 1 Govt 30 Yr Fixed 1 2 2 2 3 2 2 Aurora ○, -1.125 Aurora ○, -1.125 ○, -1.323 HSBC ○, -1.500 granular enough to inform and 10 WF 10○, -1.078 Chase 10 -1.106 Jumbo 30 Yr Fixed ○, 4 3Mortg 3 10○,-1.250-1.293 3 3 3 3 WAMU 3 3 ○, -1.500 2 1 Jumbo2 Yr Fixed 30 1 1 2 2 2 2 BOA ○, -1.023 WF ○, -1.078 H orizon ○, C iti ○ , -1.437 5 Conf 5/1 Arm 4 3 3 ○, 5 3 3 3 3 3 3 2 1 Conf 5/1 Arm 3 3 5 4 3 4 5 Horizon ○, -1.000 BOA ○, -1.023 Aurora -1.125 Vertice ○, -1.355 5 5 Wachovia ○, -0.984 Horizon ○, -1.000 Chase ○ , -1.066 Aurora ○, -1.125 Govt 3/1 Arm 4 3 3 ○, -1.059 3 3 3 3 3 ○, -1.059 3 2 1 Govt 3/1 Arm 3 5 4 4 2 2 4 and Simulation Chase ○, -0.836 Wacho ○, -0.984 Wacho Wachovi 0 0 0 0 Jumbo 5/1 Arm 4 3 2 2 2 2 2 2 2 2 1 Jumbo2 Arm 2 5/1 1 2 1 1 2 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 Detroit Fort Lauderdale Charlotte New Jer sey 20 Diff from 1st 20 Conf 30 Yr Fixed (0.180) 20 (0.140) 20 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 (0.140) (0.100) (0.060) (0.020) (0.068) (0.116) (0.164) Provid ○, -2.000 Provid 94% ○, -2.250 Provid 94% ○, -2.125 Provid 94% ○, -2.125 94% HFW ○ , -1.761 HFW ○, -1.941 Conf 15 Yr Fixed HFW (0.180) (0.140) (0.100) (0.060) (0.020) (0.068) (0.116) ○, -1.831 HFW ○, -1.851 (0.164) (0.212) (0.260) (0.308) (0.140) (0.100) (0.060) (0.020) (0.068) (0.116) (0.164) CW ○ , -1.625 15 TBW ○, -1.890 15 TBW ○, -1.665 15 CW ○ , -1.750 15 TBW ○ , -1.605 CW ○, -1.750 Govt 30 Yr Fixed ○, (0.180) (0.140) (0.100) (0.060) (0.020) ○(0.068) (0.116) Vertice -1.655 NatCity , -1.750 (0.164) (0.212) (0.260) (0.308) (0.140) (0.100) (0.060) (0.020) (0.068) (0.116) (0.164) ○ , -1.605 Citi ○, -1.687 US Bank ○ , -1.654 Vertice US Bank ○, -1.554 10 US Bank ○ , -1.654 10 Jumbo 30 Yr Fixed ○ , -1.625 CW (0.180) (0.140)10 (0.100) (0.060) (0.020) ○, -1.665 TBW US Bank (0.068) (0.116) ○, -1.579 10 (0.164) (0.212) (0.260) (0.308) (0.140) (0.100) (0.060) (0.020) (0.068) (0.116) (0.164) NatCity ○ , -1.5 Flag ○ , -1.623 Flag ○ , -1.523 Citi ○, -1.562 W AMU ○ , -1.500 5 Vertice ○, -1.605 5 W F Conf 5/1 Arm ○ , -1.519 (0.180) (0.140) 5 (0.100) (0.060) (0.020) -1.558 Flag ○ , (0.068) (0.116) 5 (0.164) (0.212) (0.260) (0.308) (0.140) (0.100) (0.060) (0.020) (0.068) (0.068) (0.068) validate decision-making Flag ○, -1.473 WF ○, -1.513 WAMU Govt 3/1 Arm○, -1.500 Vertice (0.180) (0.140) (0.100) (0.060) (0.020)-1.535 ○, -1.555 (0.068) (0.068) (0.068) (0.068) (0.068) (0.068) (0.140) (0.100) (0.060) (0.020) (0.068) (0.068) (0.068) WF ○, -1.459 WAMU ○, -1.500 HSBC ○, -1.400 WF ○, 0 0 Mortg IT Chase ○ , -1.321 HSBC ○, -1.488 Jumbo 5/1 Arm-1.389(0.180) (0.140) 0 (0.100) (0.060) (0.020)-1.521 ○, Chase ○, (0.068) (0.068)0 (0.068) (0.068) (0.068) (0.068) (0.140) (0.100) (0.060) (0.020) (0.068) (0.062) (0.055) -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 HSBC ○, -1.250 C hase ○, -1.456 C hase ○, -1.321 HSBC ○, -1.500 BOA ○, -1.223 Mortg IT ○ , -1.419 Citi ○, -1.312 W AMU ○, -1.500 Citi ○, -1.187 NatCity ○ , -1.375 Horizon ○, -1.250 Horizon ○, -1.250 Aurora ○, -1.125 Horizon ○, -1.250 Diff from 3rd Conf 30 Yr Fixed BOA ○, -1.223 (0.040) (0.030) 0.032 BOA 0.032 0.032 ○, -1.223 0.032 0.032 0.032 0.032 0.041 0.065 0.065 0.065 0.065 0.065 0.065 0.065 0.065 ○, -1.093 Provid BOA ○, -1.223 -2.000 ○, Provid Aurora ○ , -1.125 ○ , -2.250 Provid Aurora ○, -1.125, -2.125 ○ Provid Mortg IT W achovia ○, -1.009 HFW achovia W ○,○, -1.761 -1.209 Conf 15 Yr Fixed, -1.941 HFW W achovia ○, -1.059 ○ (0.151) (0.110) (0.096) (0.096) -1.034 HFW Wachovia (0.096) (0.096) (0.096) ○, ○ , -1.831 HFW (0.096) (0.096) ○, -1.851-2.125 ○, (0.040) 0.057 0.057 0.057 0.057 0.057 0.057 0.057 0.057 ○○,-1.125 , -1.625 TBW Horizon CW Aurora TBW ○, -1.605 CW Govt 30 Yr Fixed-1.890(0.262) (0.190) (0.223) IT (0.223) , -1.655 NatCity ○, ○ , -1.750 TBW Vertice Mortg ○, -1.665 ○ (0.223) (0.223) (0.223) CW NatCity (0.223) ○, -1.750 (0.223) ○, (0.121) 0.048 -1.750 0.048 0.048 0.048 0.048 0.048 0.048 0.048 ○, -1.605 Citi ○, -1.687 US Bank ○, -1.654 TBW Vertice US Bank ○ , -1.554 US Bank Jumbo 30 Yr ○, -1.654 Fixed (0.373) (0.270) (0.350) (0.350) -1.625 CW ○, (0.350) (0.350) (0.350) US Bank (0.350) (0.350), -1.665 ○ (0.202) 0.040 ○, -1.579 0.040 0.040 0.040 0.040 0.040 0.040 0.040 NatCity ○, -1.5 Flag ○, -1.623 Flag ○ , -1.523 C iti ○, -1.562 WAMU ○, -1.500 Vertice Conf 5/1 -1.605 ○, Arm (0.484) (0.350) (0.478) (0.478) (0.478) (0.478) (0.478) WF ○, -1.519 Flag (0.478) (0.478) (0.283) 0.031 ○, -1.558 0.031 0.031 0.031 0.031 0.031 0.031 0.031 Flag ○, -1.473 WF Govt 3/1 Arm ○, -1.513 (0.595) (0.430) (0.605) (0.605) (0.605) (0.605) (0.605) WAMU ○, -1.500 Vertice (0.605) (0.605) (0.364) 0.022 ○ , -1.555 0.022 0.022 0.022 0.022 0.022 0.022 0.022 WF ○ , -1.459 WAMU ○, -1.500 HSBC ○, -1.400 WF ○, -1.535 Chase ○, -1.321 H SBC Jumbo ○ , -1.488 5/1 Arm (0.151) (0.110) IT (0.096) (0.096) (0.096) (0.096) (0.096) Mortg ○, -1.389 Chase (0.096) (0.096) (0.040) 0.057 ○, -1.521 0.057 0.057 0.057 0.057 0.057 0.057 0.057 HSBC ○, -1.250 Chase ○, -1.456 Chase ○ , -1.321 HSBC ○ , -1.500 BOA ○, -1.223 Mortg IT ○, -1.419 Citi ○, -1.312 WAMU ○ , -1.500 Citi ○ , -1.187 NatCity ○, -1.375 Horizon ○, -1.250 H orizon ○, -1.250 Aurora ○ , -1.125 Price Horizon Conf ○, -1.250 Fixed 30 Yr (1.011) (1.012) (1.095) ○, -1.223 BOA (1.095) (1.095) (1.095) (1.095) BOA (1.095) ○,(1.095) -1.223 (1.122) (1.212) (1.212) (1.212) (1.212) (1.212) (1.212) (1.012) (1.212) ○ , -1.093 BOA ○, -1.223 Mortg IT Wachovia ○, -1.009 Wachovia Conf○15 Yr Fixed , -1.209 (1.011) (1.012) (1.095)○,○,-1.059 Aurora Wachovia -1.125 (1.095) (1.095) (1.095) (1.095) Aurora Wachovia (1.095)○, -1.125 (1.095) ○ , -1.034 (1.122) (1.212) (1.112) (1.105) (1.012) (1.212) (1.212) (1.213) (1.212) Horizon Aurora Govt -1.125 Fixed ○, 30 Yr (1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) NatCity Mortg IT (1.095) (1.095) (1.122) (1.212) (1.012) (0.998) (0.812) (1.212) (1.212) (1.414) (1.212) Jumbo 30 Yr Fixed (1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.122) (1.212) (0.912) (0.891) (0.612) (1.212) (1.212) (1.615) (1.212) Conf 5/1 Arm (1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.122) (1.212) (0.812) (0.784) (0.412) (1.212) (1.212) (1.816) (1.212) Govt 3/1 Arm (1.011) (1.012) (1.075) (1.075) (1.075) (1.075) (1.075) (1.075) (1.075) (1.120) (1.212) (0.712) (0.677) (0.212) (1.212) (1.212) (2.017) (1.212) Jumbo 5/1 Arm (1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.122) (1.212) (1.212) (1.212) (1.212) (1.212) (1.212) (1.212) (1.212) Conforming comparison Diff from best 0.000 - 0.125 -0.250 -0.375 -0.500 Difference from the best Rank 1.000 2.000 3.000 4.000 5.000 Date 02/20/2008 CM Chase Manhattan Branch 8101 CT Ci ti Ammortization Fixed CW Countrywide Occupancy OO I Interfirst IO N TB TB W Di ff fro m b est 0. 000 -0.125 -0.250 -0. 375 -0.500 Loan amount Conforming comparison 200,000 WM WAMU Rank 1. 000 2.000 3.000 4. 000 5.000 Escrow (All) Difference f rom th e best WF Wel ls Fargo CM Chase Manhat tan Rate 6.125% Branch 810 1 CT Cit i Purpose (All) FICO 700 CW Countrywide LTV Price difference 80% Rank Best competitor Price Volume I Interfirst Avg. from best Ammortization Fixe d LTV LTV LTV LTV LTV TB TBW Occu pancy OO WM WAMU 95.01-100 95.01-100 95.01-100 95.01-100 95.01-100 IO N WF Wel ls Fargo 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 Loan a moun t 200 ,0 00 <=55 <=55 <=55 <=55 <=55 Escrow (All) Conforming comparison Diff from best 0.000 - 0.125 -0.250 -0.375 -0.500 Credit score Rate 6.125 % Difference from the best Rank 1.000 2.000 3.000 4.000 5.000 <560 -0.35 Purpose-0.33 -0.27 (All) -0.31 -0.13 -0.26 -0.29 -0.40 -0.52 - 0.48 4 4 3 3 2 3 3 4 4 3 CM CM CM T T T T T T T -0.475 -0.475 -0.475 -0.225 0.025 0.275 0.525 0.775 1.025 1.275 0.25% 0.32% 0.51% 0.70% 1.19% 0.64% 0.92% 0.20% 0.32% 0.88% 560-580 -0.26 -0.23 -0.14 -0.09 -0.06 -0.35 -0.30 -0.29 -0.55 Price difference 4 - 0.51 5 4 4 3 4 3 4 4 3 CM CM CM T T R ank T T T T T -0.605 -0.605 -0.605 -0.355 -0.105 0.145 0.395 Be st compe titor 0.645 0.895 1.145 0.12% 0.11% 0.21% 0.33% 0.55% 0.46% 0.67% 0.22% Price 0.23% 0.52% Date 02/20/2008 CM Chase Manhattan Date Date Date Date 580-600 -0.08 from best -0.06 0.00 Avg. -0.01 -0.12 -0.06 -0.35 -0.39 -0.48 - 0.54 4 4 4 1 3 3 2 3 2 3 CM CM CM HF T T T T T T -0.735 -0.735 -0.735 -0.485 -0.235 0.015 0.265 0.515 0.765 1.015 0.20% 0.25% 0.41% 0.62% 0.95% 0.80% 1.07% 0.55% 0.54% 0.67% Branch 8101 CT Ci ti Wholesale 600-620 -0.12 -0.10 -0.14 -0.03 0.00 -0.12 -0.68 -0.37 -0.49 - 0.54 Ammortization Fixed 4 4 2 2 1 2 2 2 2 3 CM CM CM I HF I I I I T -0.865 -0.865 -0.865 -0.615 -0.365 -0.115 0.135 0.385 0.635 0.885 0.19% 0.25% 0.38% 0.77% 1.14% 0.95% 1.28% 0.63% 0.82% 0.77% 01/23/2008 01/24/2008 01/25/2008 01/29/2008 01/30/2008 01/31/2008 02/04/2008 02/05/2008 02/06/2008 02/07/2008 02/08/2008 02/11/2008 02/12/2008 02/13/2008 02/14/2008 02/15/2008 02/20/2008 01/23/2008 01/24/2008 01/25/2008 01/29/2008 01/30/2008 01/31/2008 02/04/2008 02/05/2008 02/06/2008 02/07/2008 02/08/2008 02/11/2008 02/12/2008 02/13/2008 02/14/2008 02/15/2008 02/20/2008 01/23/2008 01/24/2008 01/25/2008 01/29/2008 01/30/2008 01/31/2008 02/04/2008 02/05/2008 02/06/2008 02/07/2008 02/08/2008 02/11/2008 02/12/2008 02/13/2008 02/14/2008 02/15/2008 02/20/2008 01/23/2008 01/24/2008 01/25/2008 01/29/2008 01/30/2008 01/31/2008 02/04/2008 02/05/2008 02/06/2008 02/07/2008 02/08/2008 02/11/2008 02/12/2008 02/13/2008 02/14/2008 02/15/2008 02/20/2008 CW Countrywide 620-640 -0.23 -0.26 -0.18 -0.08 -0.11 -0.14 -0.37 -0.41 -0.49 - 0.81 Occupancy OO 4 4 2 2 2 2 2 2 2 3 CM CM CM I I I I I I T -0.995 -0.995 -0.995 -0.745 -0.495 -0.245 0.005 0.255 0.505 0.755 0.18% 0.24% 0.39% 0.62% 1.11% 1.20% 1.68% 0.80% 0.94% 0.85% I Interfirst 640-660 -0.24 -0.50 -0.20 -0.01 -0.01 -0.06 -0.36 -0.46 -0.45 - 0.25 4 3 3 3 2 2 2 2 2 3 I I CM I I I I I I T -1.125 -1.125 -1.125 -0.875 -0.625 -0.375 -0.125 0.125 0.375 0.625 0.19% 0.30% 0.45% 0.74% 1.13% 3.32% 2.15% 0.71% 1.03% 0.73% In-Depth Analytics* Rate IO N TB TB W 660-680 -0.26 -0.20 7.2 50 -0.77 -0.02 -0.42 -0.39 -0.39 -0.49 - 0.25 -0.29 3 3 3 3 2 2 1 2 3 3 I I CM CM CM I I I I T -1.255 -1.255 -1.255 -1.005 -0.755 -0.505 -0.255 -0.005 0.245 0.495 0.26% 0.33% 0.47% 0.83% 1.21% 1.61% 2.35% 0.77% 0.91% 0.65% WM WAMU Loan amount 200,000 Reports allowing to drill down -0. 32 -0.38 3 1 4 -1.775 -1.775 680-700 -0.21 -0.20 7.1 25 -0.55 -0.73 -0.51 -0.78 -0.47 -0.46 - 0.25 -0.20 3 3 3 3 2 1 2 2 3 3 CM CM CM CM CM I I I I T CM -1.385 -1.385 -1.385 -1.135 -0.885 -0.635 -0.385 -0.135 0.115 CM 0.365 0.37% 0.53% 0.51% 0.69% 0.99% 1.88% 2.26% 0.57% 0.89% 0.55% Escrow (All) WF Wel ls Fargo 7.0 00 -0.28 -0. 25 -0.42 -0.26 3 2 4 3 CM CM CM CM -1. 775 -1.645 -1. 775 -1.645 700-720 -0.39 -0.23 -0.26 -0.41 -0.51 -0.47 -0.50 -0.45 -0.25 - 0.25 3 3 3 3 2 2 2 2 3 3 CM CM I I I WF WF WF W F W F -1.515 -1.515 -1.515 -1.265 -1.015 -0.765 -0.515 -0.265 -0.015 0.235 0.44% 0.56% 0.75% 1.03% 1.33% 2.25% 3.32% 0.56% 0.96% 0.64% Wholesale 6.8 75 Rate 6.125% -0. 48 -0. 40 -0.48 -0. 39 -0.51 -0.41 4 4 4 4 5 4 CM CM CM CM CM CM -1. 775 -1.775 -1. 645 -1.515 -1. 645 -1.515 720-740 -0.48 -0.24 -0.19 -0.41 -0.45 -0.45 -0.40 -0.41 -0.24 - 0.42 4 3 2 2 2 2 2 2 3 3 CM CM I I I WF WF WF W F W F -1.645 -1.645 -1.645 -1.395 -1.145 -0.895 -0.645 -0.395 -0.145 0.105 0.41% 0.53% 0.64% 0.91% 1.05% 1.96% 2.93% 0.45% 0.71% 0.51% 6.7 50 Purpose (All) -0.14 -0. 35 -0.54 -0.48 -0. 45 -0. 51 -0.37 -0. 52 -0.37 -0.40 2 3 5 4 4 5 3 5 3 4 CM CM CM CM CM CM CM CM CM CM -1.775 -1. 775 -1.775 -1.775 -1. 645 -1.645 -1. 515 -1.385 -1. 515 -1.385 >= 740 -0.51 -0.48 6.6 25 -0.50 -0.51 -1.73 -1.76 -1.73 -0.30 --0.37 -0.364 -0. 473 -0.392 -0. 40 -0. 52 -0.48 -0. 44 -0.48 -0.36 -0.73 -0.11 -0.01 -0. 25 0.29 2 2 2 2 2 3 4 CM CM WF 2 W3 1 1 F 3 WF 4 WF 4WF 5 WF4 W F W4 4 4 F 3 -1.775 -1.775 -1.775 -1.525 M-1.275 T -1.025 CM C M -0.525 M -0.275 CM CM CM CM C CM CM -0.775 CM C CM -0.025 0.48% 0.57% 0.74% 1.05% 1.16% -1. 645 -1.645 -1.775 -1. 7750.60% -1. 515 -1.515 -1. 385 -1.255 -1. 385 -1.255 -1. 775 -1.645 1.63% 2.81% 0.34% -1.645 0.42% Price difference Rank Best competitor Price Volume 6.5 00 Max -0.21 -0.Mi n -0.05 -0.48Avg. --0.50 -0.47 -0. 36 -0.43 -0. 41 -0.Max-0.48 -0. 46n -0.42 -0.37 0.00 56 -1.76 -0. 36 0.39 45 5 Mi 1 Avg. 2 2 5 1 4 3 5 4 3 4 4 4 4 4 CM4 3 T CM CM CM CM CM T CM CM CM CM CM CM -0.384 CM CM -1. 775 -1.775 -1. 645 -1.515 -1. 515 -1.515 -1.645 -1. 645 -1.515 -1. 385 -1.385 -1. 255 -1.125 -1. 255 -1.125 Avg. from best LTV LTV LTV LTV LTV 6.3 75 -0.21 -0. 25 -0.16 -0. 36 -0.65 -0.40 -0. 60 -0.39 -0.54 -0. 48 -0.39 -0. 43 -0. 38 -0.40 -0. 51 -0.43 -0.43 2 2 2 3 5 4 5 4 5 4 4 4 4 4 5 4 4 CM T T CM CM CM CM CM T CM CM CM WF CM CM CM CM -1. 775 -1.775 -1. 645 -1.645 -1. 515 -1.385 -1. 385 -1.385 -1.515 -1. 515 -1.385 -1. 255 -1.255 -1. 125 -0.995 -1. 125 -0.995 <560 -0.50 -0.50 6.2 50 -0.25 -0.13 -0.25 -0. 46 -0.47 -0.45 -0. 51 --0.45 -0.384 -0. 39 4 -0.443 -0. 45 -0. 45 -0.47 -0. 42 -0.43 -0.47 -0.25 -0.38 -0. 23 -0.14 -0.25 -0.50 -0.50 0.51 3 2 3 3 4 4 2 CM 4 4 CM CM 5 TB 4 TB TB 4 TB 4 TB 4 TB4 TB 4 -1.172 -1.172 -1.172 -0.922 M-0.672HF-0.422 CM C M -0.172 0.078 M 0.328 0.578 -1. 645 -1.645 -1. 515 -1.515 -1. 385 1.19% -1. 255 -1.255 -1.385 -1. 3850.32% -1. 125 -1.125 -0. 995 -0.865 -0. 995 -0.865 0.25% 0.32% 0.51% 0.70% -1.255 0.64% 0.92% 0.20% 0.88% 95.01-100 95.01-100 95.01-100 95.01-100 95.01-100 4 2 4 4 4 4 4 CM T T CM CM CM C CM CM CM C CM CM CM -1.255 560-580 -0.13 -0.13 6.1 25 -0.13 -0.13 -0.50 -0. 46 -0.40 -0.43 -0. 51 --0.50 -0.422 -0. 42 2 -0.382 -0. 44 -0. 44 -0.51 -0. 50 -0.39 -0.51 -0.13 -0.46 -0. 24 -0.13 -0.25 -0.25 -0.51 0.25 2 2 4 3 3 3 2 CM 4 4 CM CM 5 TB 4 TB TB 4 TB 4 TB 5 TB5 TB 5 -1.234 -1.234 -1.234 -0.984 M-0.734 I -0.484 CM C M -0.234 0.016 M 0.266 0.516 -1. 515 -1.515 -1. 385 -1.385 -1. 255 0.55% -1. 125 -1.125 -1.255 -1. 2550.24% -0. 995 -0.995 -0. 865 -0.735 -0. 865 -0.735 0.12% 0.11% 0.21% 0.33% -1.125 0.46% 0.67% 0.22% 0.39% 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 4 2 4 5 4 4 4 CM HF HF CM CM CM C I CM CM C I CM I -1.125 Correspondent <=55 <=55 <=55 <=55 <=55 580-600 -0.13 -0.13 6.0 00 -0.13 -0.13 -0.25 -0. 36 -0.46 -0.42 -0. 43 --0.37 -0.502 -0. 43 2 -0.422 -0. 44 -0. 48 -0.40 -0. 50 -0.49 -0.48 -0.13 -0.38 0. 76 -0.23 -0.25 -0.25 -0.25 0.25 2 2 3 3 3 3 3 1 CM 3 4 4 2 CM CM 4HFW 4 TB 4 3 4 4 TB 4 TB 4 TB 4 TB5 TB 4 4 -1.297 -1.297 CM I I -1.297 -1.047 M-0.797 I -0.547 CM C M -0.047I 0.203 CM CM CM C I CM -0.297 CM I I 0.453 I -1. 385 -1.385 -1. 255 -1.255 -1. 125 2.35% -0. 995 -0.995 -1.125 -1. 1250.30% -0. 865 -0.865 -0. 735 -0.605 -0. 735 -0.605 0.20% 2.25% 1.47% 1.61% -0.995 0.80% 0.94% 0.85% -0.995 0.45% 5.8 75 -0.43 1. 76 Credit score -0.29 -0. 40 -0.39 -0.38 -0. 47 -0.42 -0.50 -0. 51 -0.38 -0. 49 -0. 44 -0.41 -0. 47 -0.46 -0.45 4 1 3 4 4 4 4 4 4 5 4 4 4 4 4 4 4 CM I I CM CM CM CM CM CM CM CM I I I WF I WF -1. 255 -1.255 -1. 125 -1.125 -0. 995 -0.865 -0. 865 -0.865 -0.995 -0. 995 -0.865 -0. 735 -0.735 -0. 605 -0.475 -0. 605 -0.475 600-620 -0.50 -0.25 -0.13 -0.13 -0.13 -0.13 -0.25 -0.25 -0.25 - 0.25 4 3 2 2 2 2 3 3 3 3 CM CM CM I HFW I I I I TB -1.359 -1.359 -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 0.391 0.19% 1.96% 2.93% 1.88% 2.26% 0.95% 1.03% 0.24% 0.24% 0.39% 5.7 50 -0.36 2. 76 -0.23 -0. 47 -0.48 -0.43 -0. 39 -0.45 -0.46 -0. 43 -0.39 -0. 47 -0. 48 -0.13 -0.26 -0.37 -0.35 -0.33 -0.27 -0.31 -0.36 -0.29 -0.40 3-0.52 2 0.48 4 1 - 4 4 4 4 4 3 4 3 4 2 4 3 4 33 4 4 4 34 3 I CM CM CM CM T I CM CM I I TCM CM CMT I T I T T I T F -0.475 -0.475 -1. 125 -1.125 -0. 995 -0.995 0.275 -0.735 -0. 735 -0.735 -0.8651.275 -0.250 -0. 605 -0.605 -0. 475 0.70% -0. 475 0.64% 0.92% 0.20% W WF -0.475 -0.225 0.025 -0. 865 0.525 0.775 1.025 -0. 865 0.25% 0.32% 0.51% -0.345 1.19% 0.32% 0.88% 620-640 -0.50 <560 -0.25 -0.13 -0.13 0.00 -0.13 -0.25 -0.50 -0.25 - 0.25 4 3 2 2 1 2 3 4 3 3 CM CM CM I I I I I I TB -1.422 -1.422 -1.422 -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.18% 0.24% 1.33% 2.25% 3.32% 1.20% 0.91% 0.30% 0.24% 0.39% 5.6 25 -0.39 3. 76 -0.22 -0. 47 -0.47 -0.45 -0. 51 -0.37 -0.37 -0. 41 -0.50 -0. 51 -0. 39 -0.49 4 1 2 4 4 4 5 3 3 4 5 5 4 4 I C M CM CM I I I CM I I I WF WF WF -0. 995 -0.995 -0. 865 -0.865 -0. 735 -0.605 -0. 605 -0.605 -0.735 -0. 735 0.120 -0. 475 -0.475 -0. 345 560-580 -0.26 -0.23 -0.14 -0.09 -0.06 -0.35 -0.30 -0.29 -0.55 - 0.51 5 4 4 4 3 4 3 4 4 3 CM CM CM T T T T T T T -0.605 -0.605 -0.605 -0.355 -0.105 0.145 0.395 0.645 0.895 1.145 0.12% 0.11% 0.21% 0.33% 0.55% 0.46% 0.67% 0.22% 0.23% 0.52% 640-660 -0.50 -0.25 5.5 00 0.00 -0.13 -0.21 -0. 40 -0.42 -0.46 -0. 42 --0.49 -0.454 -0. 503 -0.462 -0. 37 -0. 42 -0.13 -0.44 4. 76 -0.13 -0.25 -0.50 -0.50 0.50 1 2 2 3 3 4 4 1 2 4I 4 4 I CM 4 I4 4 I 5 4 I 3 I 4 I 4 I TB -1.484 -1.484 -1.484I -1.234 F-0.984 I -0.734 WF W F -0.234 0.016 0.266 CM C M I I WF W CM I -0.484 WF -0. 865 -0.865 -0. 735 -0.735 -0. 605 2.93% -0. 475 -0.475 -0.605 -0. 6050.30% -0. 345 -0.345 0.19% 0.30% 1.05% 1.96% -0.475 1.47% 2.15% 0.71% 0.240 0.45% 660-680 -0.25 580-600 -0.08 -0.01 -0.06 0.00 2-0.12 -0.06 -0.35 4 -0.25 5.3 75 -0.25 -0.13 -0.25 -0. 45 -0.39 -0.43 -0. 47 --0.42 -0.363 -0. 47 3 -0.493 -0.25 -0.40 5. 76 -0.15 -0.25 -0.25 -0.50 0.50 3 3 3 3 -0.39 4 -0.48 I- 0.54 I 4 4 1 2 4 CM 4 4 4 4 CM1 4 I 3 I 3 I 2 I 3 TB 4 4 CM 3 4 2 -1.547 CM CM I CM -1.297 F-1.047 T WFT WF T 3 CM -1.547 -1.547 I I HF WF WF W T CM T T I -0.797 -0.547 -0.297 -0.047 -0.7350.203 -0.735 -0. 735 -0.735 -0. 605 -0.550 0.015 0.51% -0. 345 -0.345 -0.4751.015 0.24% -0.735 -0.485 -0.235 -0. 475 0.265 0.515 0.765 0.26% 0.33% 0.37% 0.53% -0.345 0.69% 2.35% 0.77%475 0.387 -0. 0.20% 0.39% 0.41% 0.62% 0.95% 0.80% 1.07% 0.55% 0.25% 0.54% 0.67% Wholesale 680-700 -0.25 600-620 6. 76 -0.11 -0.25 -0.25 -0.50 - 0.50 -0.51 3 -0. 47 4 -0.14 -0.03 3 0.003 -0.12 -0.68 4 -0.50 5.2 50 -0.25 -0.25 -0.25 -0. 44 -0.47 -0.50 -0.40 -0.12 -0.10 4 3 3 3 -0.37 4 -0.49CM 4 4 4 1 1 0.54 - CM CM 4 4 CM 2 CM2 I 1 I 2 I 2 I 2 TB 5 4 2 -1.609 CM CM WF WF -1.359 -1.109 II-0.859 -0.609 I -0.359 -0.109 0.141 3 CM -1.609 -1.609 I I CM I HF WF I I T -0.865 -0.865 -0. 605 -0.605 -0. 475 -0.250 -0.115 0.75% 1.03% 2.26% 0.57%3450.30% -0.865 -0.615 -0.365 -0. 345 0.135 0.385 0.635 0.885 0.37% 0.53% 0.44% 0.56% -0.345 -0. 0.19% 0.45% 0.38% 0.77% 1.14% 0.95% 1.28% 0.63% 0.25% 0.82% 0.77% to every region, product and 700-720 -0.25 -0.39 620-640 7. 76 -0.11 -0. 42 -0.25 5.1 25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 -0.50 -0.23 3 -0.26 -0.18 -0.08 3-0.11 -0.14 -0.37 -0.41 4 -0.49CM CM 3 4 3 3 3 3 4 4 1 1 0.81 - 4 4 I 4 I 2 I 2 WF WF WF W F W F 2 2 2 2 2 -1.650 CM CM WF I I I T -0.995 -0.995 -0. 250 -0.475 -0. 345 0.1250.33% 0.37% 0.33% 0.37% 0.56% 0.96% 3 CM -1.650 -1.650 -1.400 -1.150 I-0.900 -0.650 I -0.400 -0.150 0.100 CM I I I 0.44% 0.56% 0.75% -0.245 0.005 0.255 0.505 0.755 -0.995 -0.745 -0.495 0.18% 0.64% 0.39% 0.62% 1.11% 1.20% 1.68% 0.80% 0.24% 0.94% 0.85% 5.0 00 -0.44 -0. 43 640-660 -0.24 4 4 -1.125 -1.125 0. 120 -0.345 720-740 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 -0.50 -0.20 -0.01 4-0.01 -0.06 -0.36 -0.46 4 -0.45CM CM 4 4 4 4 4 4 4 - 0.25 4 I 3 I 3 I 3 WF WF WF W F W F 2 2 2 2 2 -1.778 -1.778 I -1.778 -1.528 -1.278 I-1.028 -0.778 I -0.528 -0.278 -0.028 3 CM II CM I I I I T -1.125 -0.875 -0.625 -0.375 -0.125 0.125 0.375 0.625 0.41% 0.53% 0.64% 0.53% 0.44% 0.53% 0.44% 0.45% 0.71% 0.19% 0.51% 0.45% 0.74% 1.13% 3.32% 2.15% 0.71% 0.30% 1.03% 0.73% Max 7. 76 Min -0. 65 Max 5.00 Mi n 1. 00 Max 0.00 Min 0. 00 Max 0. 39 Min -1. 78 >= 740 -0.50 660-680 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 -0.26 4 -0.20 -0.29 -0.77 -0.02 -0.42 -0.39 -0.39 -0.49 - 0.25 4 4 4 4 4 4 4 4 4 CM CM 3 3 WF W F 3 3 2 2 WF WF WF WF W F W F 1 2 3 3 I I CM CM CM I I I I T -1.255 -1.255 -1.255 -1.005 -0.755 -0.505 -0.255 -0.005 0.245 0.495 -1.775 -1.775 -1.775 -1.525 -1.275 -1.025 -0.775 -0.525 -0.275 -0.025 0.48% 0.57% 0.74% 0.56% 0.75% 0.56% 0.75% 0.34% 0.60% 0.26% 0.33% 0.47% 0.83% 1.21% 1.61% 2.35% 0.77% 0.42% 0.91% 0.65% Max 680-700 n -0.51 Avg. - 0.21 0.00 Mi -0.21 -0.20 -0.20 -0.55 -0.73 -0.51 -0.78Avg. 2 -0.46 - 0.25 Max 4 Mi n 1 -0.47 3 3 3 3 2 1 2 2 CM3 3 CM CM CM CM CM I I I I T -1.385 -1.385 -1.385 -1.135 -0.885 -0.635 -0.385 -0.135 0.115 0.365 -0.713 0.37% 0.53% 0.51% 0.69% 0.99% 1.88% 2.26% 0.57% 0.89% 0.55% -0.39 700-720 -0.23 -0.26 -0.41 -0.51 -0.47 -0.50 -0.45 -0.25 - 0.25 3 3 3 3 2 2 2 2 3 3 CM CM I I I WF WF WF W F W F -1.515 -1.515 -1.515 -1.265 -1.015 -0.765 -0.515 -0.265 -0.015 0.235 0.44% 0.56% 0.75% 1.03% 1.33% 2.25% 3.32% 0.56% 0.96% 0.64% <560 -0.50 -0.50 -0.25 -0.25 -0.13 -0.25 -0.25 -0.50 -0.50 - 0.51 -0.48 4 4 3 3 2 3 3 4 4 CM CM -0.24 -0.19 -0.41 -0.45 -0.45 -0.40 -0.41 -0.24 - 0.42 CM 4 3 TB 2 TB 2 TB TB TB TB TB 2 2 2 2 3 -1.172 -1.172 -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.578 3 CM CM I I I WF WF WF W F W F 0.25% 0.32% 0.51% 0.70% 1.19% 0.64% 0.92% 0.20% 0.32% -1.645 -1.645 -1.645 -1.395 -1.145 -0.895 -0.645 -0.395 -0.145 0.105 0.88% 0.41% 0.53% 0.64% 0.91% 1.05% 1.96% 2.93% 0.45% 0.71% 0.51% 720-740 560-580 -0.13 -0.13 -0.13 -0.13 -0.13 -0.50 -0.25 -0.25 -0.51 - 0.25 -0.51 2 2 2 2 2 4 3 3 3 CM CM -0.48 -0.73 -0.50 -0.51 -1.73 -1.76 -1.73 -0.30 - 0.29 CM 4 3 TB 2 TB 2 TB TB TB TB TB 2 2 2 2 3 -1.234 -1.234 -1.234 -0.984 -0.734 -0.484 -0.234 0.016 0.266 0.516 4 CM CM WF W F WF WF WF WF W F W F 0.12% 0.11% 0.21% 0.33% 0.55% 0.46% 0.67% 0.22% 0.24% -1.775 -1.775 -1.775 -1.525 -1.275 -1.025 -0.775 -0.525 -0.275 -0.025 0.39% 0.48% 0.57% 0.74% 1.05% 1.16% 1.63% 2.81% 0.34% 0.60% 0.42% >= 740 580-600 -0.13 -0.13 -0.13 -0.13 -0.13 -0.25 -0.25 -0.25 -0.25 - 0.25 2 2 2 2 2 Max3 0.00 Mi n 3 3 3 -1.76 3 Avg. CM CM - 0.39 CM HFW TB TB TB TB n TB TB Max 5 Mi 1 Avg. -1.297 -1.297 -1.297 -1.047 -0.797 -0.547 -0.297 -0.047 0.203 0.453 2 CM 0.20% 2.25% 1.47% 1.61% 2.35% 0.80% 0.94% 0.85% 0.30% -0.384 0.45% 600-620 -0.50 -0.25 -0.13 -0.13 -0.13 -0.13 -0.25 -0.25 -0.25 - 0.25 4 3 2 2 2 2 3 3 3 3 CM CM CM I HFW I I I I TB -1.359 -1.359 -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 0.391 0.19% 1.96% 2.93% 1.88% 2.26% 0.95% 1.03% 0.24% 0.24% 0.39% Retail -0.50 -0.25 -0.13 -0.13 <560 -0.50 0.00 -0.13 -0.25 -0.50 -0.25 - 0.25 4 -0.50 -0.25 -0.25 1-0.13 -0.25 -0.25 -0.50 3 -0.50CM CM 3 2 2 2 3 4 3 - 0.51 4 CM 4 I 3 I 3 I 2 I 3 I 3 I 4 TB 4 -1.422 CM CM CM -1.172 -0.922 TB TB -0.422TB TB 0.078 0.328 -1.422 -1.422 TB TB -0.672 TB -0.172 -1.172 -1.172 0.18% 0.24% 1.33% 2.25% 3.32% 1.20% 0.91% 0.30% 0.24% -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.578 0.25% 0.39% 0.51% 0.70% 1.19% 0.64% 0.92% 0.20% 0.32% 0.32% 0.88% 620-640 -0.50 -0.25 -0.13 0.00 560-580 -0.13 -0.13 -0.13 -0.25 -0.50 -0.50 - 0.50 4 -0.13 -0.13 -0.13 2-0.13 -0.50 -0.25 -0.25 4 -0.51 I- 0.25 I 3 2 1 2 3 3 4 2 CM 2 I 2 I 2 I 2 I 4 I 3 I 3 TB -1.484 CM CM CM -1.234 -0.984 TB TB -0.484TB TB 0.016 0.266 3 -1.484 -1.484 TB TB -0.734 TB -0.234 -1.234 -1.234 0.19% 0.30% 1.05% 1.96% 2.93% 1.47% 2.15% 0.71% 0.30% -1.234 -0.984 -0.734 -0.484 -0.234 0.016 0.266 0.516 0.12% 0.45% 0.21% 0.33% 0.55% 0.46% 0.67% 0.22% 0.11% 0.24% 0.39% 640-660 Correspondent 660-680 -0.25 580-600 -0.13 -0.25 -0.25 -0.25 -0.13 -0.25 -0.25 -0.25 -0.50 - 0.50 3 -0.13 -0.13 -0.13 2-0.13 -0.25 -0.25 -0.25 4 -0.25 I- 0.25 I 3 3 3 3 3 3 4 2 CM 2 CM 2 CM2 I 2 I 3 I 3 I 3 TB3 -1.547 CM CM CM HFW -1.047 TB TB -0.547TB TB -0.047 0.203 3 -1.547 -1.547 -1.297 TB -0.797 TB -0.297 -1.297 -1.297 0.26% 0.33% 0.37% 0.53% 0.51% 0.69% 2.35% 0.77% 0.24% -1.297 -1.047 -0.797 -0.547 -0.297 -0.047 0.203 0.453 0.20% 0.39% 1.47% 1.61% 2.35% 0.80% 0.94% 0.85% 2.25% 0.30% 0.45% 680-700 -0.25 600-620 -0.50 -0.50 -0.50 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 3 -0.25 -0.13 -0.13 3-0.13 -0.13 -0.25 -0.25 4 -0.25CM CM 4 4 3 3 3 3 4 - 0.25 4 CM 3 CM 2 CM2 I 2 I 2 I 3 I 3 TB3 -1.609 CM CM CM -1.359 HFW 3 -1.609 -1.609 I -1.109 I-0.859 -0.609 I -0.359 -0.109 0.141 I I TB -1.359 -1.359 0.37% 0.53% 0.44% 0.56% 0.75% 1.03% 2.26% 0.57% 0.30% -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 0.391 0.19% 0.45% 2.93% 1.88% 2.26% 0.95% 1.03% 0.24% 1.96% 0.24% 0.39% criteria combination over time 700-720 -0.25 620-640 -0.50 -0.25 -0.50 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 3 -0.25 -0.13 -0.13 3 0.003 -0.13 -0.25 4 3 4 3 3 3 -0.50 4 -0.25CM CM - 0.25 4 I 3I 2 I 2 WF WF WF W F W F 1 2 3 4 3 -1.650 CM CM CM -1.400 -1.150 I-0.900 -0.650 I -0.400 -0.150 0.100 3 -1.650 -1.650 I I I I TB -1.422 -1.422 0.44% 0.56% 0.75% 0.33% 0.37% 0.33% 0.37% 0.56% 0.96% -1.422 -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.18% 0.64% 1.33% 2.25% 3.32% 1.20% 0.91% 0.30% 0.24% 0.24% 0.39% 720-740 -0.50 640-660 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 -0.25 -0.13 0.00 4-0.13 -0.13 -0.25 4 4 4 4 4 4 4 -0.50 4 -0.50CM CM - 0.50 4I 3I 2 I 1 WF WF WF W F W F 2 2 3 3 4 -1.778 -1.778 I -1.778 -1.528 -1.278 I-1.028 -0.778 I -0.528 -0.278 -0.028 4 I CM I I I I TB -1.484 -1.484 0.41% 0.53% 0.64% 0.53% 0.44% 0.53% 0.44% 0.45% 0.71% -1.484 -1.234 -0.984 -0.734 -0.484 -0.234 0.016 0.266 0.19% 0.51% 1.05% 1.96% 2.93% 1.47% 2.15% 0.71% 0.30% 0.30% 0.45% >= 740 -0.50 660-680 -0.25 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 -0.25 -0.25 -0.25 4-0.13 -0.25 -0.25 -0.25 4 -0.50CM CM 4 4 4 4 4 4 4 - 0.50 3 WF W F 3 WF 3 WF WF WF W F W F 3 2 3 3 3 4 -1.775 -1.775 I -1.775 -1.525 -1.275 I-1.025 -0.775 I -0.525 -0.275 -0.025 4 I CM CM CM I I TB -1.547 -1.547 0.48% 0.57% 0.74% 0.56% 0.75% 0.56% 0.75% 0.34% 0.60% -1.547 -1.297 -1.047 -0.797 -0.547 -0.297 -0.047 0.203 0.26% 0.42% 0.37% 0.53% 0.51% 0.69% 2.35% 0.77% 0.33% 0.24% 0.39% Max 680-700 n -0.51 Avg. - 0.21 0.00 Mi -0.25 -0.50 -0.50 -0.25 -0.25 -0.25 -0.25Avg. 2 -0.50 - 0.50 Max 4 Mi n 1 -0.25 3 4 4 3 3 3 3 3 CM4 4 CM CM CM CM CM I I I I TB -1.609 -1.609 -1.609 -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 -0.713 0.37% 0.53% 0.44% 0.56% 0.75% 1.03% 2.26% 0.57% 0.30% 0.45% 700-720 -0.25 -0.25 -0.50 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 3 3 4 3 3 3 3 3 4 4 CM CM I I I WF WF WF W F W F -1.650 -1.650 -1.650 -1.400 -1.150 -0.900 -0.650 -0.400 -0.150 0.100 0.44% 0.56% 0.75% 0.33% 0.37% 0.33% 0.37% 0.56% 0.96% 0.64% 720-740 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 4 4 4 4 4 4 4 4 4 CM CM I I I WF WF WF W F W F -1.778 -1.778 -1.778 -1.528 -1.278 -1.028 -0.778 -0.528 -0.278 -0.028 0.41% 0.53% 0.64% 0.53% 0.44% 0.53% 0.44% 0.45% 0.71% 0.51% >= 740 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 4 4 4 4 4 4 4 4 4 CM CM WF WF WF WF WF WF W F W F -1.775 -1.775 -1.775 -1.525 -1.275 -1.025 -0.775 -0.525 -0.275 -0.025 0.48% 0.57% 0.74% 0.56% 0.75% 0.56% 0.75% 0.34% 0.60% 0.42% Max 0.00 Mi n -0.51 Avg. - 0.21 Max 4 Mi n 1 Avg. 2 CM -0.713 <560 -0.50 -0.50 -0.25 -0.25 -0.13 -0.25 -0.25 -0.50 -0.50 - 0.51 4 4 3 3 2 3 3 4 4 CM CM CM TB TB TB TB TB TB TB -1.172 -1.172 -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.578 0.25% 0.32% 0.51% 0.70% 1.19% 0.64% 0.92% 0.20% 0.32% 0.88% 560-580 -0.13 -0.13 -0.13 -0.13 -0.13 -0.50 -0.25 -0.25 -0.51 - 0.25 2 2 2 2 2 4 3 3 3 CM CM CM TB TB TB TB TB TB TB -1.234 -1.234 -1.234 -0.984 -0.734 -0.484 -0.234 0.016 0.266 0.516 0.12% 0.11% 0.21% 0.33% 0.55% 0.46% 0.67% 0.22% 0.24% 0.39% 580-600 -0.13 -0.13 -0.13 -0.13 -0.13 -0.25 -0.25 -0.25 -0.25 - 0.25 2 2 2 2 2 3 3 3 3 3 CM CM CM HFW TB TB TB TB TB TB -1.297 -1.297 -1.297 -1.047 -0.797 -0.547 -0.297 -0.047 0.203 0.453 0.20% 2.25% 1.47% 1.61% 2.35% 0.80% 0.94% 0.85% 0.30% 0.45% 600-620 -0.50 -0.25 -0.13 -0.13 -0.13 -0.13 -0.25 -0.25 -0.25 - 0.25 4 3 2 2 2 2 3 3 3 3 CM CM CM I HFW I I I I TB -1.359 -1.359 -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 0.391 0.19% 1.96% 2.93% 1.88% 2.26% 0.95% 1.03% 0.24% 0.24% 0.39% Retail 620-640 -0.50 -0.25 -0.13 -0.13 0.00 -0.13 -0.25 -0.50 -0.25 - 0.25 4 3 2 2 1 2 3 4 3 3 CM CM CM I I I I I I TB -1.422 -1.422 -1.422 -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.18% 0.24% 1.33% 2.25% 3.32% 1.20% 0.91% 0.30% 0.24% 0.39% 640-660 -0.50 -0.25 -0.13 0.00 -0.13 -0.13 -0.25 -0.50 -0.50 - 0.50 4 3 2 1 2 2 3 3 4 4 I I CM I I I I I I TB -1.484 -1.484 -1.484 -1.234 -0.984 -0.734 -0.484 -0.234 0.016 0.266 0.19% 0.30% 1.05% 1.96% 2.93% 1.47% 2.15% 0.71% 0.30% 0.45% 660-680 -0.25 -0.25 -0.25 -0.25 -0.13 -0.25 -0.25 -0.25 -0.50 - 0.50 3 3 3 3 2 3 3 3 4 4 I I CM CM CM I I I I TB -1.547 -1.547 -1.547 -1.297 -1.047 -0.797 -0.547 -0.297 -0.047 0.203 0.26% 0.33% 0.37% 0.53% 0.51% 0.69% 2.35% 0.77% 0.24% 0.39% 680-700 -0.25 -0.50 -0.50 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 3 4 4 3 3 3 3 3 4 4 CM CM CM CM CM I I I I TB -1.609 -1.609 -1.609 -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 0.37% 0.53% 0.44% 0.56% 0.75% 1.03% 2.26% 0.57% 0.30% 0.45% 700-720 -0.25 -0.25 -0.50 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 3 3 4 3 3 3 3 3 4 4 CM CM I I I WF WF WF W F W F -1.650 -1.650 -1.650 -1.400 -1.150 -0.900 -0.650 -0.400 -0.150 0.100 0.44% 0.56% 0.75% 0.33% 0.37% 0.33% 0.37% 0.56% 0.96% 0.64% 720-740 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 4 4 4 4 4 4 4 4 4 CM CM I I I WF WF WF W F W F -1.778 -1.778 -1.778 -1.528 -1.278 -1.028 -0.778 -0.528 -0.278 -0.028 0.41% 0.53% 0.64% 0.53% 0.44% 0.53% 0.44% 0.45% 0.71% 0.51% >= 740 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 4 4 4 4 4 4 4 4 4 CM CM WF WF WF WF WF WF W F W F -1.775 -1.775 -1.775 -1.525 -1.275 -1.025 -0.775 -0.525 -0.275 -0.025 0.48% 0.57% 0.74% 0.56% 0.75% 0.56% 0.75% 0.34% 0.60% 0.42% Max 0.00 Mi n -0.51 Avg. - 0.21 Max 4 Mi n 1 Avg. 2 CM -0.713 * Leverage pivot structure to allow quick customization © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 12
Bottom-Up Approach DNA Codes Roll Up From Individual Levels Up To The Overall Business DNA Codes Cascading DNA Codes Client Data Client Data Centralized Data Centralized Data Analytical Reporting Analytical Reporting Business DNA Codes Business DNA Codes BizCase Financial -- 40% F1 F2 F3 Objective Incre ase P rofita bil ity Opti mize Ma rket Pre sen ce Incre ase Busi ness Volu me Measure Net Income BizCa se Shar e of M arke t Tota l Sa le Volum e Weight 20% 10% 10% Target Met ric Actuals Operations Clien t C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% -- 25% C2 Pro vide ex cep tion al Customer Servi ce Clie nt Sat isfacti on Score 5% BizCase C3 Impr ove Cli ent Perfor mance Clie nt Ave rage Score 10% Objective Measure Weight Target Metric Actuals Intern al I1 I2 Reduce Cost to Produ ce Man age Sales Per fo rmance Cost P er Unit ( CPU) $/ uni ts p er Accoun t Executive 5% 5% Financial F1 Increase Profitability Net Income 20% -- 20% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th 5% -- 40% cumul ative " Good " rati ng F2 Optimize Market Presence BizCase Share of Market 10% Sales Resou rces R1 Reduce Tu rnove r % T urn over 5% -- 15% R2 Man age Vendo r perfor mance Ve ndor Performa nce Score 10% F3 Increase Business Volume Total Sale Volume 10% Client C1 Manage Price Competitiveness Competitive Score 10% -- 25% C2 Provide exceptional Customer Service Client Satisfaction Score 5% BizCase C3 Improve Client Performance Client Average Score 10% Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% -- 20% I2 Manage Sales Performance $/units per Account Executive 5% F3 Increase Business Volume Total Sale Volume 10% I3 Implement critical technology projects IT Score 5% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% BizCase cumulative "Good" rating Objective Measure Weight Target Met ric Actuals Financial F1 Incre ase P rofita bil ity Net Income 20% -- 40% Client C1 Manage Price Competitiveness Competitive Score 10% F2 Opti mize Ma rket Pre sen ce BizCa se Shar e of M arke t 10% F3 Incre ase Busi ness Volu me Tota l Sa le Volum e 10% -- 25% R1 Reduce Turnover % Turnover 5% C2 Provide exceptional Customer Service Client Satisfaction Score 5% Resources -- 15% Clien t -- 25% C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% C3 Improve Client Performance Client Average Score 10% R2 Manage Vendor performance Vendor Performance Score 10% C2 Pro vide ex cep tion al Customer Servi ce Clie nt Sat isfacti on Score 5% Business C3 Impr ove Cli ent Perfor mance Clie nt Ave rage Score 10% Intern al I1 Reduce Cost to Produ ce Cost P er Unit ( CPU) 5% -- 20% I2 Man age Sales Per fo rmance $/ uni ts p er Accoun t Executive 5% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th 5% I2 Manage Sales Performance $/units per Account Executive 5% cumul ative " Good " rati ng -- 20% I3 Implement critical technology projects IT Score 5% Resou rces R1 Reduce Tu rnove r % T urn over 5% -- 15% R2 Man age Vendo r perfor mance Ve ndor Performa nce Score 10% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating Resources R1 Reduce Turnover % Turnover 5% -- 15% R2 Manage Vendor performance Vendor Performance Score 10% BizCase BizCase Objective Measure Weight Target Metric Actuals Objective Measure Weight Target Met ric Actuals Financial F1 Incre ase P rofita bil ity Net Income 20% -- 40% F2 F3 Opti mize Ma rket Pre sen ce Incre ase Busi ness Volu me BizCa se Shar e of M arke t Tota l Sa le Volum e 10% 10% Financial F1 Increase Profitability Net Income 20% -- 40% Technology Clien t C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% -- 25% C2 Pro vide ex cep tion al Customer Servi ce C3 Impr ove Cli ent Perfor mance Clie nt Sat isfacti on Score Clie nt Ave rage Score 5% 10% F2 Optimize Market Presence BizCase Share of Market 10% Intern al I1 Reduce Cost to Produ ce Cost P er Unit ( CPU) 5% -- 20% I2 Man age Sales Per fo rmance $/ uni ts p er Accoun t Executive 5% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th cumul ative " Good " rati ng 5% F3 Increase Business Volume Total Sale Volume 10% Resou rces -- 15% R1 Reduce Tu rnove r R2 Man age Vendo r perfor mance % T urn over Ve ndor Performa nce Score 5% 10% BizCase Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% F3 Increase Business Volume Total Sale Volume 10% Client C1 Manage Price Competitiveness Competitive Score 10% -- 25% Client C1 Manage Price Competitiveness Competitive Score 10% C2 Provide exceptional Customer Service Client Satisfaction Score 5% -- 25% BizCase C2 Provide exceptional Customer Service Client Satisfaction Score 5% C3 Improve Client Performance Client Average Score 10% Objective Measure Weight Target Met ric Actuals Financial F1 Incre ase P rofita bil ity Net Income 20% -- 40% F2 Opti mize Ma rket Pre sen ce BizCa se Shar e of M arke t 10% C3 Improve Client Performance Client Average Score 10% F3 Incre ase Busi ness Volu me Tota l Sa le Volum e 10% Clien t C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% -- 25% C2 Pro vide ex cep tion al Customer Servi ce Clie nt Sat isfacti on Score 5% Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% C3 Impr ove Cli ent Perfor mance Clie nt Ave rage Score 10% I2 Manage Sales Performance $/units per Account Executive 5% -- 20% I3 Implement critical technology projects IT Score 5% Intern al I1 Reduce Cost to Produ ce Cost P er Unit ( CPU) 5% I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% I2 Man age Sales Per fo rmance $/ uni ts p er Accoun t Executive 5% Internal -- 20% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th cumul ative " Good " rati ng 5% cumulative "Good" rating Resou rces R1 Reduce Tu rnove r % T urn over 5% -- 20% I2 Manage Sales Performance $/units per Account Executive 5% -- 15% R2 Man age Vendo r perfor mance Ve ndor Performa nce Score 10% Resources R1 Reduce Turnover % Turnover 5% I3 Implement critical technology projects IT Score 5% -- 15% R2 Manage Vendor performance Vendor Performance Score 10% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating Production Resources -- 15% R1 Reduce Turnover R2 Manage Vendor performance % Turnover Vendor Performance Score 5% 10% Marketing BizCase Objective Measure Weight Target Metric Actuals BizCase Financial F1 Increase Profitability Net Income 20% Financial F1 Objective Incre ase P rofita bil ity Measure Net Income Weight 20% Target Met ric Actuals -- 40% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% F2 Opti mize Ma rket Pre sen ce BizCa se Shar e of M arke t 10% F3 Incre ase Busi ness Volu me Tota l Sa le Volum e 10% F3 Increase Business Volume Total Sale Volume 10% BizCase Clien t C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% -- 25% C2 Pro vide ex cep tion al Customer Servi ce Clie nt Sat isfacti on Score 5% Objective Measure Weight Target Metric Actuals C3 Impr ove Cli ent Perfor mance Clie nt Ave rage Score 10% Financial F1 Increase Profitability Net Income 20% Client C1 Manage Price Competitiveness Competitive Score 10% -- 40% Intern al -- 20% I1 I2 Reduce Cost to Produ ce Man age Sales Per fo rmance Cost P er Unit ( CPU) $/ uni ts p er Accoun t Executive 5% 5% -- 25% F2 Optimize Market Presence BizCase Share of Market 10% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% C2 Provide exceptional Customer Service Client Satisfaction Score 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th 5% cumul ative " Good " rati ng F3 Increase Business Volume Total Sale Volume 10% C3 Improve Client Performance Client Average Score 10% Resou rces R1 Reduce Tu rnove r % T urn over 5% -- 15% R2 Man age Vendo r perfor mance Ve ndor Performa nce Score 10% Client C1 Manage Price Competitiveness Competitive Score 10% Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% I2 Manage Sales Performance $/units per Account Executive 5% -- 25% -- 20% C2 Provide exceptional Customer Service Client Satisfaction Score 5% I3 Implement critical technology projects IT Score 5% C3 Improve Client Performance Client Average Score 10% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating R1 Reduce Turnover % Turnover 5% Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% Resources -- 20% I2 Manage Sales Performance $/units per Account Executive 5% -- 15% I3 Implement critical technology projects IT Score 5% R2 Manage Vendor performance Vendor Performance Score 10% BizCase I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% Objective Measure Weight Target Met ric Actuals cumulative "Good" rating Financial F1 Incre ase P rofita bil ity Net Income 20% -- 40% F2 Opti mize Ma rket Pre sen ce BizCa se Shar e of M arke t 10% F3 Incre ase Busi ness Volu me Tota l Sa le Volum e 10% Resources R1 Reduce Turnover % Turnover 5% Clien t C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% -- 15% -- 25% C2 Pro vide ex cep tion al Customer Servi ce Clie nt Sat isfacti on Score 5% R2 Manage Vendor performance Vendor Performance Score 10% C3 Impr ove Cli ent Perfor mance Clie nt Ave rage Score 10% Intern al I1 Reduce Cost to Produ ce Cost P er Unit ( CPU) 5% I2 Man age Sales Per fo rmance $/ uni ts p er Accoun t Executive 5% -- 20% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th 5% cumul ative " Good " rati ng Resou rces R1 Reduce Tu rnove r % T urn over 5% -- 15% R2 Man age Vendo r perfor mance Ve ndor Performa nce Score 10% © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 13
Implementum Interconnected Analytical And Simulation Models Help Perform Root-Cause Analysis And Improve Results Illustration Of Analytical Models BizCase Decision-Making Implementum BizCase Decision-Making Implementum Objective Measure Historial Simulation Objective Measure Historial Simulation Financial F1 Increase Profitability Net Income P&L Budget Financial F1 Increase Profitability Net Income P&L Budget -- 40% -- 40% F2 Optimize Market Presence BizCase Share of Market Market Surveys Client Segmentation F2 Optimize Market Presence BizCase Share of Market Market Surveys Client Segmentation F3 Increase Business Volume Total Sale Volume Daily Summary Forecast F3 Increase Business Volume Total Sale Volume Daily Summary Forecast Client C1 Manage Price Competitiveness Competitive Score Competitive Positioning Price Elasticity Client C1 Manage Price Competitiveness Competitive Score Competitive Positioning Price Elasticity -- 25% -- 25% C2 Provide exceptional Customer Service Client Satisfaction Score Surveying Application Help Desk Application C2 Provide exceptional Customer Service Client Satisfaction Score Surveying Application Help Desk Application C3 Improve Client Performance Client Average Score Client Scorecard Potfolio Management C3 Improve Client Performance Client Average Score Client Scorecard Potfolio Management Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) ABC (Activity-Based Cost) Cost Per Unit (CPU) Model Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) ABC (Activity-Based Cost) Cost Per Unit (CPU) Model and Utilization Application -- 20% and Utilization Application -- 20% I2 Manage Sales Performance $/units per Account Executive Prospecting Application Sales Compensation I2 Manage Sales Performance $/units per Account Executive Prospecting Application Sales Compensation Simulation Simulation I3 Implement critical technology projects IT Score Project Management Cost Benefit Analytics I3 Implement critical technology projects IT Score Project Management Application (CBA) Benefit Analytics Cost Application (CBA) I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month cumulative Quality Walls Application Risk Management I4 Achieve superior Risk and Quality Rating "Good" rating Percent of BU's with 12-month cumulative Quality Walls Application Application Risk Management "Good" rating Application Resources R1 Reduce Turnover % Turnover Labor Performance Staffing Model Resources R1 Reduce Turnover % Turnover Labor Performance Staffing Model -- 15% -- 15% R2 Manage Vendor performance Vendor Performance Score Vendor Management Pipeline Management R2 Manage Vendor performance Vendor Performance Score Vendor Management Application Pipeline Management Application © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 14
Implementum Interconnected Analytical And Simulation Models Help Perform Root-Cause Analyses And Improve Results Illustration Of Analytical Models Daily Dashboard with Monthly 12- forward projections month Forecast Decision-Making Implementum Market Intelligence Wholesale Daily Summary Report for 5/21/2008 Fun ded V ol. bps 5/21 /2 008 Vo l. Locke d Mix File s Vo l. 20 0 HF W 1 00 S tandard 100 EA 100 MCM 10 0 Jum bo 100 B ellevue 10 0 Dal las 10 0 75 Charl ot te Locks Hard files 2 008 volum e forec ast on 5/22/2008 Al l of H FW C onformi ng Gain A ctuals Jan-08 2,492,337 1 Ac tuals Feb-08 3,923,475 1 Act uals Mar-08 1 2, 081,662 Act uals Apr-08 1 1,635, 153 Forecast May-08 2,022,054 Forec as t Jun-08 1,921,091 Forecast Jul-08 1, 636, 237 Forecast Aug-08 1,561,862 Forec as t S ep-08 1,561,862 Forec as t Oc t-08 1, 710,611 Forecast Nov-08 1,487, 488 Forecast D ec -08 1,561,862 2008 Full Year 23, 595, 695 Mix Previous f orec as t 28,614,535 Runr ate in $MM HFW 34 26 .8 5 61 100 % 42 15 0 75 75 75 75 75 75 Volume 814, 356,417 961,032, 235 790,745,326 773,853,913 697, 260, 002 686,103,842 584,370,288 557, 808,002 557,808, 002 610,932,574 531,245,716 557, 808, 002 8,123, 324, 320 93% 10,738,901,559 Fundings Stand ard 31 26 .5 4 56 92 % 35 C ON FOR BPs 30.60 40. 83 26. 33 21.13 29.00 28. 00 28.00 28.00 28. 00 28.00 28.00 28.00 29 27 EA 0 79 .2 1 1 1% 2 10 0 50 50 50 50 50 50 50 Units 4,188 4,545 3,841 3, 666 3,231 3,179 2, 708 2,585 2,585 2,831 2, 461 2,585 38,403 MCM 0 43 .0 6 0 1% 1 J umbo 30yr Gain -36,621 25,845 -1,515 827 1,333 1,312 1, 117 1,066 1,066 1,168 1, 015 1,066 (2, 320) 382,160 C Jumb o 2 4% 1 Volume 8, 972,200 10,189, 040 4,217,200 1,108,750 789, 597 776,964 661,758 631,678 631, 678 691,838 601,598 631, 678 29, 903, 978 0% 167,418,331 50 25 25 25 25 25 25 25 N C30YR BPs -40.82 25. 37 -3. 59 7.46 16.88 16. 88 16.88 16.88 16. 88 16.88 16.88 16.88 (1) 23 Jumb o 2 32 .3 4 1 2% 3 Units 14 18 7 2 1 1 1 1 1 1 1 1 50 Seco nds 1 12 .7 5 1 1% 0 0 0 0 0 0 J umbo ARM Gain 13,518 35,171 233,138 94, 129 47,242 46,486 39, 593 37,794 37,794 41,393 35, 994 37,794 700, 046 1,422,407 0 0 0 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 Volume 12, 484,607 28,738, 910 55,286,573 28,056,292 29, 379, 472 28,909,401 24,622,796 23, 503,578 23,503, 578 25,742,014 22,384,360 23, 503, 578 326, 115, 158 4% 550,943,394 N CAR M BPs 10.83 12. 24 42. 17 33.55 16.08 16. 08 16.08 16.08 16. 08 16.08 16.08 16.08 21 26 Units 20 42 83 41 40 39 33 32 32 35 30 32 458 Fore cas t Expec te d Fu ndi ngs Expe cte d bps Reve nue (' 000 ) Vol . bps Expec te d Fu ndi ngs H ELOC Gain 27,511 42,630 15,277 -2, 948 5,411 5,324 4, 535 4,329 4,329 4,741 4, 123 4,329 119, 591 411,137 MTD May MTD May Ma y Jun Jul Au g Se p Oct N ov De c Jan Feb Mar 200 8 Historial Simulation Volume 6, 089,034 9,930, 112 6,301,102 9,957,874 8, 855, 758 8,714,066 7,421,969 7, 084,607 7,084, 607 7,759,331 6,747,244 7, 084, 607 93, 030, 311 1% 75,642,181 HFW 4 71 7 30 -47 % 27 .6 9 27 .9 7 1 .3 3 1,974 -46% 715 26.52 933 8 76 8 46 8 74 7 49 78 5 84 5 83 7 82 8 10,40 9 Forecast write-up GLINE BPs 45.18 42. 93 24. 24 -2.96 6.11 6. 11 6.11 6.11 6. 11 6.11 6.11 6.11 13 54 Stand ard 4 38 6 79 -29 % 27 .3 9 27 .6 7 8 .6 2 1,880 3% 666 27.11 678 6 36 6 14 6 35 5 43 56 9 62 7 62 1 61 5 7,54 7 Units 64 119 79 94 65 64 54 52 52 57 49 52 800 EA 6 9 -89 % 79 .5 0 80 .2 9 0 .2 9 73 -89% 9 78.69 176 1 65 1 59 1 65 1 41 14 8 16 3 16 1 16 0 1,96 0 Seconds Meth od ology A. Bra nch-product 23,088 runrates Gain h ard file 17,606 5,582 2, 193 2,476 2,436 2, 075 1,981 1,981 2,169 1, 887 1,981 65, 455 84,860 MCM 2 3 -92 % 0 .0 0 -32 .0 0 0 -1 00% 3 0.00 26 25 24 25 21 22 24 24 24 29 4 Volume 941,165 909, 580 B. Bra nch-product h ard file pullthrough 472,312 330,200 740, 666 728,815 620,749 592,533 592, 533 648,964 564,317 592, 533 7, 734, 367 0% 8,544,007 C Jumb o 3 4 -95 % 22 .5 1 22 .7 3 2 .7 3 9 -94% 4 22.28 0 0 0 0 0 0 0 0 0 40 0 GLOAN BPs 245.32 C. # of business days in a month 193. 56 118. 18 66.40(A x B x 33.43+ D C) 33. 43 33.43 33.43 33. 43 33.43 33.43 33.43 85 99 Units 15 16 14 4 6 6 5 5 5 5 5 5 91 Jumb o 17 26 -83 % 0 .0 0 -37 .5 0 0 -1 00% 25 0.00 34 32 30 31 27 28 23 23 23 1 D. Branch and product i niti ati ves 9,714 FH A Gain 13,779 21,440 25, 224 37,485 37,485 37, 485 37,485 37,485 37,485 37, 485 37,485 370, 037 374,850 Seco nds 6 9 -66 % 14 .5 4 14 .6 8 -22 .8 2 13 -87% 8 14.39 19 18 18 18 17 18 7 7 7 20 6 Volume 3, 674,386 2,590, 306 5,717,459 6,726,275 9, 996, 000 9,996,000 9,996,000 9, 996,000 9,996, 000 9,996,001 9,996,002 9, 996, 000 98, 676, 429 1% 104,958,003 Bel levu e 1 92 2 98 -51 % 31 .3 8 31 .6 6 4 .9 2 944 -42% 292 40.32 359 3 38 3 26 3 37 2 88 30 2 34 6 34 2 33 9 4,10 9 FH A BPs 37.50 37. 50 37. 50 37.50 37.50 37. 50 37.50 37.50 37. 50 37.50 37.50 37.50 38 36 Da lla s 1 64 2 54 -26 % 25 .2 9 25 .5 7 -0 .4 8 650 -28% 249 31.54 313 2 94 2 84 2 93 2 51 26 3 24 7 24 4 24 2 3,35 5 Assump tio ns Units 0 0 0 0 0 0 0 0 0 0 0 0 0 Ch arlotte 1 14 1 77 -58 % 24 .9 3 25 .2 0 -1 .7 7 447 -61% 174 43.81 261 2 45 2 37 2 44 2 10 22 0 25 3 25 0 24 8 2,94 5 Total Gain 2, 540,014 4,057, 840 2,370,150 1,756,418 2, 118, 954 2,017,040 1,723,517 1, 646,879 1,646, 879 1,800,155 1,570,242 1, 646, 879 24, 894, 968 31,308,087 Ru nra te Hard fil e runrates by branch 21 business d ays prior to the date of the fo recast (03-26-08 th rou gh 04-23-08). T he hard Volume 848, 722,459 1,014,198, 183 865,389,972 820,953,304 748, 202, 746 736,391,438 628,683,559 600, 561,397 600,561, 397 656,805,722 572,439,237 600, 561, 397 8,693, 470, 813 11,654,982,686 file runrate is d own from $71 milli on per day to $63 mil lion (11% drop). P&L Budget Pip eli ne by da ys ti ll expi ration Loc k su ffici ency D ail y l ocks bps 29.93 40. 01 27. 39 21.39 28.32 27. 39 27.41 27.42 27. 42 27.41 27.43 27.42 29 27 18 4 18 3 20 0 Pullthrough Previ ous forecast was based on a 58% overall pullthrough based3, 808 Units 4,306 4,746 4,029 o n January d ata by product by branch, curre2, 802 3,344 3,290 nt data 2,675 2,675 2,930 2, 548 2,675 39,828 55,154 Al l <=15 16-3 0 31-4 5 46-6 0 Ju n Ju l Aug Apr May NonConf 1 ,0 28 56 % 40 % 3% 1% -35% -37% -38% 55 56 refl ects a 56.7% pullthrough from F eb 1st through March 1st. Conf # of business days 21 20 21 22 21 21 22 21 21 23 20 21 254 92 89 88 Stand ard 9 00 49 % 35 % 3% 1% -13% -13% 2% 10 0 71 R unrates in units 205 237 192 173 159 157 127 127 127 127 127 127 157 65 66 65 61 59 61 55 56 Seasonal ity Adjusted average seasonality from Fa nnie Mae Quarterly forecast for 2006, 2007 and 2008 and distribu ted by month 50 51 49 52 EA 22 1% 1% 0% 0% -35% -35% -21% 46 44 48 42 43 39 42 36 30 33 33 Runrates 40,415,355 50,709,909 41, 209,046 37,316, 059 35,628,702 35,066,259 28, 576, 525 28,598,162 28,598,162 28, 556,771 28,621, 962 28,598,162 34,226,263 28 28 30 27 24 23 19 20 MCM 10 1% 0% 0% 0% -34% -34% -12% from 2006 HFW fundings. Monthly c hange 25% -19% -9% -5% -2% -19% 0% 0% 0% 0% 0% C Jumb o 28 1% 2% 0% 0% -5% -5% 27% 0 Conf orming mix 96% 95% -25% -15% 91% -5% 94% 5% 93% 15% 25% 93% 93% 93% 93% 93% 93% 93% 93% Jumb o 63 3% 3% 0% 0% C apa city Tu rn Fund ing s agai nst goa l Season ality Pl an Seco nds 6 0% 0% 0% 0% -65% -65% -28% Ju n Jul A ug time Time Jan-07 68% P lan 1,012,767, 155 1, 020,794,055 1,222, 285,064 1,380,052, 185 1,526,414,889 1, 719, 161,082 1,713, 485, 768 1,719,191,844 1, 746,749,129 1,793, 546,664 1,597,731, 918 1,655,216,102 18,107,395,855 HFW 34% Feb-07 Bel levu e 4 70 25 % 19 % 1% 1% -8% -9% -11% -53 -100 -151 S tandar 41% Gain dif f -92,146 1,390,981 -845,444 -1,919, 757 -2,058,344 -2,710,192 -3, 037, 743 -3,129,595 -3,196,498 -3, 202,860 -2,878, 161 -2,971,644 -24,651,402 Da lla s 3 30 18 % 13 % 1% 0% -12% -14% -17% 200 186 148 EA 41% Mar-07 Volume dif f -164,044,696 -6,595,872 -356, 895,092 -559,098, 881 -778,212,143 -982,769,644 -1,084, 802, 209 -1,118,630,447 -1, 146,187,732 -1,136, 740,942 -1,025,292, 681 -1,054,654,705 -9,413,925,043 MCM 41% Apr-07 B Ps dif f 3.94 13. 88 1. 08 -5.24 0.95 -0. 11 -0.37 -0.36 -0. 31 -0.49 -0.41 -0.48 1. 3 Ch arlotte 2 28 12 % 9% 1% 0% -15% -17% -21% 75 47 5 Jum bo 3% 11% May-07 7% 7% Prior forecast Al t-A bp s 27 .9 6 30 .7 8 24 .5 4 26 .5 4 13.73 HFW 222 133 2 S econds 22% AP M previous forec as t 1,052,699, 089 1, 012,194,264 1,111, 059,635 1,274,834, 456 1,347,497,015 1, 472, 528,922 1,512, 885, 174 15% 1,444,458,956 1, 433,951,950 1,567, 994,769 1,353,925, 287 1,417,574,236 16,001,603,753 Jun-07 15% Avg . MTM -0.10 0 -0.05 0 -0.16 0 -0.07 0 -0.140 0% 25% 50% 75% 100% D iff erence f rom act ual -203,976,630 2,003,919 -245, 669,663 -453,881, 152 -599,294,268 10% -736,137,483 -884, 201, 616 -843,897,559 -833,390,553 -911, 189,047 -781,486, 049 -817,012,838 -7,308,132,940 Jul-07 10% I ni ti atives Aug-07 C onforming 8% 8% 0 0 0 0 0 0 0 0 0 0 0 0 8,123, 324, 320 Sep-07 umbo FIXE D J 4% 0 0 0 0 4% 0 0 0 0 0 0 0 0 42, 372, 578 Funded Ma rgin s MTD 5/21 /2 008 R ank Ra nk th is mon th Lock pu llthro ugh H ard file pull throug h -2% O ct-07 Jumbo A RM -2% 0 0 0 0 0 0 0 0 0 0 0 0 326, 115, 158 HFW Bellevue Dallas Charlot te H FW B ellevue Dallas Charlott e HFW Bel levue Dall as Charl otte HFW Bellevue Dallas Charlot te H FW B ellevue Dallas Charlott e Nov-07 Alt-A Fix ed -4% 0 0 0 -4% 0 0 0 0 0 0 0 0 0 167, 650 All pro ducts 2 7.69 31 .3 8 25 .2 9 24 .9 3 1.75 1 .7 5 1 .7 5 1 .7 5 2 .1 3 2.13 2.18 2.10 45% 42% 49% 4 7% 5 5% 5 5% 5 4% 5 6% Market Surveys Client Segmentation ALt-A A RM 0 0 0 -5% 0 0 0 0 0 0 0 0 0 708, 000 Dec-07 -5% Stand ard 2 7.39 31 .5 4 24 .7 9 24 .5 8 1 1 1 1 2 2 2 2 47% 43% 52% 4 8% 6 0% 5 9% 6 1% 5 9% HELOC 0 0 0 0 0 0 0 0 0 0 0 0 93, 030, 311 EA 7 9.50 80 .3 7 74 .5 7 85 .5 2 1 1 1 1 2 2 2 2 22% 15% 25% 2 7% 1 7% 1 1% 1 9% 2 0% S ec onds 0 0 0 0 0 0 0 0 0 0 0 0 7, 734, 367 MCM 3 6.74 33 .2 6 42 .5 8 34 .6 6 1 1 1 1 2 2 2 2 31% 12% 42% 4 2% 3 9% 2 2% 4 5% 4 7% AE ramp up Each of the 10 new hi red BOA AEs i s expected to fund 10 extra lo ans in May thro ugh Dec, this brings i n extra C Jumb o 2 2.51 19 .7 9 0 .0 0 29 .4 5 4 4 4 4 4 3 4 4 0% # DIV/0 ! # DIV/0 ! 0% #D IV /0 ! #D IV/0! #D IV/0! #D IV/0! $200 milli on i n fundings. Jumb o 7 6.92 21 .3 0 20 .2 2 35 .4 0 35% 39% 22% 4 0% 3 6% 4 5% 2 1% 3 8% Seco nds 1 4.54 16 .9 4 34 .7 5 3 .0 1 3 3 3 3 3 3 3 3 66% 74% 55% 6 1% 6 2% 7 0% 5 7% 4 8% Declinin g markets No longer req uired for Purchase/Refi , 1 uni t, O O and shou ld i ncre ase volume by 4%. Lo an ch aracteri sti cs MTD Mi n Lo ck d esk R ates % DU 7.0 HFW Bellevue Dallas Charlot te St andard EA MCM C Jum bo Jumbo Seconds 4 5 7 FIC O 7 39 7 41 73 7 73 6 74 0 66 7 714 772 727 748 4 0 Avg. hold tim e LTV 72 70 74 71 72 81 93 72 69 23 3 5 Max hol d ti me 6 DTI 41 43 40 41 41 52 48 42 32 38 3 0 5 No te ra te 5.91 5.86 5 .9 8 5 .8 8 5 .8 8 6 .9 4 7.05 6.32 6.20 5.11 2 5 4 Amou nt 220 K 2 65 K 1 85 K 2 18 K 2 17 K 16 8 K 12 1 K 64 8 K 76 0 K 126 K 2 0 Re fi 7 3% 76 % 70 % 74 % 74 % 82% 9% 23% 76% 80% 1 5 10 yr T 3 10 1 yr T NOO 4% 5% 4% 3% 4% 3% 0% 0% 0% 0% 2 5 30yr FRM 2n d 3% 3% 4% 3% 3% 0% 0% 0% 6% 0% 0 1 Competitive ARM 7% 11 % 5% 3% 3% 0% 0% 0% 96% 99% Ma r Ap r Ma y No v Ma r Ap r Ma y Oct 0 1-11 0 1-17 0 1-23 0 1-29 0 2-04 0 2-10 0 2-16 0 2-22 0 2-28 0 3-05 0 3-11 0 3-17 0 3-23 0 3-29 0 4-04 0 4-10 0 4-16 0 4-22 0 4-28 0 5-04 0 5-10 0 5-16 Jan Feb Jun Jul Aug Sep Jan Feb Dec Daily Summary Forecast 60 50 18, 50 2 008 Pl an an d Fo recast Bell evue 4,109 4,050 8 0% L ock pul lthrou gh Rev enue , mi lli on 40 -20 7 0% Di ff from Plan Sales 30 Da lla s 3, 355 1,092 6 0% $ 10 , 30 Forecast 20 Plan Forecast 5 0% 10 C harl otte 2,945 2,557 (V ol, Rev) -8 4 0% Bell evue 0 0 2, 000 4,000 6,000 8,000 10,000 Dallas 0 4 8 12 16 20 24 Volu me, mill ion $ 3 0% Charlot te Volu me, bil lio n $ HFW Positioning 2,00 0 Client Performance Diff f rom Pl an 2 0% 0 2/02 0 2/22 0 3/14 0 4/03 0 4/23 0 5/13 0 6/02 0 6/22 0 7/12 0 8/01 0 8/21 0 9/10 0 9/30 1 0/20 1 1/09 1 1/29 1 2/19 0 1/08 0 1/28 0 2/17 0 3/08 0 3/28 0 4/17 Forecast 1,50 0 790 781 843 901 919 667 849 870 353 556 Marke t sha re 4 1,00 0 168 C onformi ng J umbo 10 % 15 Market volu me Compensation 8% 10 Share 50 0 1, 017 930 933 6% 845 870 824 860 876 846 874 785 749 4% 5 2% 0 0% 0 Ma r Ap r Ma y No v De c Oct Jan Feb Jun Jul Aug Sep 12/02 12/30 01/27 02/24 03/23 04/20 05/18 12/02 12/30 01/27 02/24 03/23 04/20 05/18 Management Pro perty of H omeco min gs Fi nan cial , LL C 2007 Sales Compensation Model - Overview AE's Varian ce Area Managers Varia nce Sales Managers Varian ce Total Variance Business Portfolio P erformance Snapshot Nov-2008 Home comings Financial Wholesale P erform ance Legend Competitive Positioning Price Elasticity Management Avg # AE's Excellent Good Fair Poor Unacceptable A ctual P rofile inclu des d eac tiv ated brok ers Current - Commissions $31,334,333 $2,367,702 $2,512,179 $36,214,213 hitting BROKER: A ddress : B roker Zip : Brok er QC Status : B roker Walletshare Year: Mngr Title: A E S tatu s: BRA NCH: Broker City: A pprove D ate: Brok er Type: B roker Walletshare P ct: AE Name: A E T er mination : 2nd Level Mn gr: Base + Bonus $8,809,397 $1,013,600 $1,298,800 $11,121,797 multiplier % BROK ER_ID: Broker State: L ic en se Exp Date: Active In d: B roker 2007 Volume: $000,000 AE Dept: M ngr Name: 2ndMn gr T itle: Last updat ed on: Sep-02-2008 Opera tions September 2007 - Augu st 200 8 Total Compensation $40,143,730 $3,381,302 $3,810,979 $47,336,011 Hi gh: 97 30% 2008-08 2008-07 2008-06 2008-05 2008-04 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 Total Average per Associate $124,284 $483,043 $224,175 Low: 99 31% Cancell ed Units 763 503 954 1, 011 1,094 2,293 2,084 2, 561 2,279 2, 227 2,722 3,605 22,096 V olume $212,933,902 $121,236, 018 $238, 721,863 $243,607, 092 $266, 119,823 $523, 611,039 $473, 850,505 $543,751, 854 $483, 254,864 $491,885, 173 $570, 682,078 $810, 680,850 $4, 980,335,061 Cost per loan $272 $23 $26 $321 No Mult.: 127 39% Denied Units 1,092 858 1,492 2, 057 2,425 1,932 1,418 1, 430 1,340 1, 274 1,843 2,264 19,425 V olume $254,209,630 $196,725, 950 $351, 598,857 $463,087, 914 $520, 424,709 $432, 564,585 $274, 419,313 $267,497, 273 $250, 422,487 $228,421, 884 $330, 216,563 $424, 189,964 $3, 993,779,130 Cost in bps 16.5 1.4 1.6 19.5 Funded Units 1,722 1, 997 2,336 3, 147 3,807 4,029 4,746 4, 306 5,464 5, 668 6,447 5,250 48,919 V olume $339,071,103 $407,056, 408 $491, 113,358 $692,148, 741 $814, 003,779 $859, 672,513 $1,011, 607,877 $845,048, 073 $1,062, 977,296 $1,061,114, 254 $1,195, 087,365 $934, 886,338 $9, 713,787,105 Proposed - Commissions $31,337,455 0% $2,224,959 -6% $2,513,985 0% $36,076,400 -0.4% Hard Units 2,521 3, 660 3,249 4, 247 6,101 7,006 8,280 8, 891 8,523 9, 387 10,551 9,333 81,749 V olume $523,298,051 $788,215, 613 $703, 090,749 $960,442, 641 $1,345, 104,440 $1,519, 729,559 $1,828, 163,631 $1,890,085, 602 $1,730, 405,550 $1,835,033, 718 $2,018, 235,735 $1,764, 180,683 $16, 905,985,970 Base + Bonus $6,804,000 -23% $1,064,000 5% $1,615,000 24% $9,483,000 -14.7% HFW Distibution - 12 month rolling Lock Units 2,186 3, 613 2,761 4, 511 5,315 8,834 7,607 11, 606 8,700 9, 675 10,658 9,770 85,236 V olume $458,421,597 $764,781, 128 $565, 489,706 $1, 006,494, 281 $1,188, 533,646 $1,936, 383,197 $1,623, 850,010 $2,571,308, 927 $1,770, 924,422 $1,903,913, 937 $2,048, 004,601 $1,838, 785,670 $17, 676,891,121 Total Compensation $38,141,455 -5% $3,288,959 -3% $4,128,985 8% $45,559,400 -3.8% Hi gh: 82 25% QLP Units 1,389 1, 498 1,790 2, 364 2,892 3,190 3,859 3, 444 4,371 4, 391 5,065 4,193 38,446 Average per Associate $118,085 -5% $469,851 -3% $242,881 8% Low: 106 33% State Dist ribution V olume $266,515,312 $298,663, 715 $369, 897,113 $513,389, 991 $609, 660,056 $674, 216,702 $840, 436,671 $688,237, 311 $862, 697,900 $831,596, 200 $945, 509,285 $749, 787,324 $7, 650,607,580 Amortization Distribut ion DTI Di st ribut ion Sum of SumOfPRIN_PURCH_BAL Long Term Distri bution UW Units 2,256 3, 425 3,129 3, 898 1,707 4,736 3,744 6, 953 5,407 8, 013 9,333 7,804 60,405 Cost per loan $259 -$14 $22 -$1 $28 $2 $309 ($12.04) No Mult.: 135 42% V olume $464,420,531 $741,324, 715 $677, 969,854 $883,976, 224 $342, 327,556 $986, 675,589 $795, 045,671 $1,422,722, 655 $1,089, 750,927 $1,563,835, 369 $1,792, 387,767 $1,487, 612,222 $12, 248,049,079 Surveying Application Help Desk Application Sum of SumOfPRIN_PURCH_BAL Sum of SumOfPRIN_PURCH_BAL STATE Total Distribution Sum of SumOfPRIN_PURCH_BAL Last updated on: S ep-02-2008 Pipeline Septemb er 2007 - August 2008 Cost in bps 15.7 -0.8 1.4 0.0 1.7 0.1 18.8 -0.731 Amom ortization Total Distribution DTI Total Distribution AK $34,767,522 0% TERM_ACTUA L_MONTH_NBR Total Distr ibution 2008-08 2008-07 2008-06 2008-05 2008-04 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 Total ARM $1,198,373,767 11% 10.01 to 25 $727,760,304 7% AL $188,946,429 2% 60 $32,550 0% Hard Pul lthroug h 53% 57% 56% 58% 58% 50% 56% 53% 57% 60% 60% 58% 57% Fixed $9,733,255,191 89% 25.01 to 35 $1,913,391,589 18% AR $33,388,026 0% 120 $29,676,012 0% F unded 41% 56% 56% 58% 58% 50% 56% 53% 57% 60% 60% 58% 56% Total $10,931,628,958 100% 35.01 to 38 $880,836,553 8% AZ $193,497,212 2% 180 $542,883,959 5% Lenders N. California Avg 06 projected 07 proposed 07 proposed 07 prop. Branch Dist ribution 38.01 to 40 40.01 to 45 $710,354,706 $2,268,310,323 6% 21% CA CO $2,092,159,413 $455,277,704 19% 4% 240 300 $159,402,973 $102,407,284 1% 1% I nProgress% Denied% 22% 32% 31% 2% 0% 32% 0% 30% 0% 30% 0% 36% 0% 25% 0% 20% 0% 17% 0% 15% 0% 16% 0% 18% 1% 23% comp. comp. v ar. Volume v ar. commission 07 prop. base Bonus*** Cancelled% 5% 11% 12% 12% 12% 14% 19% 26% 26% 25% 24% 25% 20% monthly Sum of SumOfPRIN_PURCH_BAL 45.01 to 50 $1,357,345,140 12% CT $63,943,475 1% 360 $10,021,895,745 92% Expi red% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 20 units Bel lev ue $ 672,202 $ 578,692 -14% -15% $ 426,692 $ 102,000 $ 50,000 BR ANCH Bellevue Total $4,535,629,518 Distribution 41% Over 55 (blank ) $2,995,997,977 $77,632,366 27% 1% DC DE $30,849,283 $31,639,144 0% 0% Total 480 $75,330,434 $10,931,628,958 1% 100% L ock Pul lthroug h 66% 60% 62% 59% 52% 47% 52% 48% 52% 58% 60% 57% 54% Peer Percentile % Avg Units** thresho ld Newport $ 1,104,560 $ 694,291 -37% -19% $ 542,291 $ 102,000 $ 50,000 Dallas $3,095,030,002 28% To tal $10,931,628,958 100% FL $520,969,048 5% F unded I nProgress% 45% 32% 59% 2% 62% 0% 59% 0% 52% 0% 47% 0% 52% 0% 48% 0% 52% 0% 58% 0% 60% 0% 57% 0% 54% 1% Low Multipli er 80% 37.8 N Dallas $ 616,165 $ 461,500 -25% -6% $ 309,500 $ 102,000 $ 50,000 North Carolina $3,226,042,554 30% GA $91,772,212 1% Denied% 12% 16% 15% 15% 17% 18% 15% 11% 9% 9% 8% 10% 12% 15 H igh Multipli er 120% 56.8 Y Detroit $ 401,561 $ 359,933 -10% -5% $ 207,933 $ 102,000 $ 50,000 Inside Sales $74,926,884 1% Loan Amount Disti bution HI $37,997,737 0% Cancelled% Expi red% 3% 8% 17% 7% 23% 0% 26% 0% 31% 0% 35% 0% 33% 0% 41% 1% 39% 0% 34% 0% 32% 0% 33% 0% 32% 1% 61% Volume based on: N ew ($24.3B) i Original ($30.5B) Ft Laud. $ 539,358 $ 372,821 -31% -18% $ 220,821 $ 102,000 $ 50,000 To tal $10,931,628,958 100% Sum of SumOfPRIN_PURCH_BAL Lo an Amo unt Total Distribution IA ID $47,730,089 $85,642,844 0% 1% Amort izat ion Type Last updated on: S ep-02-2008 2008-08 2008-07 2008-06 2008-05 2008-04 2008-03 2008-02 B us ines s Por tfolio 2008-01 2007-12 September 2007 - Aug ust 20 08 2007-11 2007-10 2007-09 Total n New ($24.3B) Charlotte 0 to 25K $8,160,581 0% IL $273,615,530 3% Sum of SumOfPRIN_PURCH_BAL Unit-Dri ven Mul tiplers : Y $ 467,265 $ 363,112 -22% -1% $ 211,112 $ 102,000 $ 50,000 Uni ts 1,722 1, 997 2,336 3, 147 3,807 4, 029 4, 746 4, 306 5,464 5, 668 6,447 5, 250 48, 919 10 Use Fixed Multi pli er Y scena rio New Jersey $ 618,402 $ 458,610 -26% -10% $ 306,610 $ 102,000 $ 50,000 Sum of SumOfPRIN_PURCH_BAL Combo Dist ribution >100K to 125K >125K to 150K $647,515,751 $803,417,930 6% 7% IN KS $124,639,896 $17,433,127 1% 0% TERM_AMORT_MONTH_NBR 60 Total $32,550 Distr ibution 0% Volu me $339,071,103 $407,056, 408 $491, 113,358 $692,148, 741 $814,003,779 $859, 672, 513 $1,011,607, 877 $845,048, 073 $1, 062, 977,296 $1,061,114, 254 $1, 195, 087,365 $934, 886, 338 $9,713, 787, 105 selectors Avg L oan $196,905 $203,834 $210,237 $219, 939 $213,818 $213, 371 $213, 150 $196, 249 $194, 542 $187, 211 $185,371 $178, 074 $198, 569 C ombo Total Distribution >150K to 200K $1,718,465,777 16% KY $45,182,976 0% 120 $29,676,012 0% Client Scorecard Potfolio Management WA F ICO 732 735 732 738 736 724 720 696 691 686 680 676 706 Low Multiplier 30 Average $ 631,359 $ 469,851 -26% -20% $ 317,851 $ 102,000 $ 50,000 With a Second $1,451,705,857 13% >200K to 250K $1,577,951,820 14% LA $289,850,585 3% 180 $514,554,733 5% WA L TV 74 74 72 72 71 73 73 75 77 77 77 79 75 5 Hi gh Multiplier 50 Without a Second Total $9,479,923,101 $10,931,628,958 87% 100% >250K to 300K >25K to 50K $1,445,913,640 $81,779,384 13% 1% MA MD $197,154,408 $408,373,294 2% 4% 240 300 $159,402,973 $102,407,284 1% 1% WA CLT V WA DTI 75 42 75 42 75 43 74 42 74 41 75 42 75 41 77 43 78 44 80 44 80 44 82 45 77 43 APM comp. based on uni ts N >300K to 350K $1,176,305,974 11% ME $51,702,851 0% 360 $10,010,850,160 92% Last updated on: S ep-02-2008 Proces s Manageme nt September 2007 - Augu st 200 8 >350K to 400K $1,021,307,650 9% MI $233,445,163 2% 480 $114,705,246 1% 2008-08 2008-07 2008-06 2008-05 2008-04 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 Total ASM co mp. b as ed on units N >400K to 500K $1,249,829,846 11% MN $128,471,104 1% Total $10,931,628,958 100% QL P % 81% 75% 77% 75% 76% 79% 81% 80% 80% 77% 79% 80% 79% 0 Sum of SumOfPRIN_PURCH_BAL Credit Score Dist ribution >500K to 700K $277,716,924 3% MO $141,198,425 1% UW % Last updated on: A ug-15-2008 94% 96% 98% 94% 29% 69% 46% 83% 67% 90% 93% 88% 77% C redit Scor e Total Distribution >50K to 75K $257,137,299 2% MS $58,105,245 1% Risk Ma na ge ment No vember 200 6 - March 2008 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 Data 2008-04 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 2007-08 2007-07 2007-06 2007-05 2007-04 2007-03 2007-02 2007-01 2006-12 2006-11 Total 450 to 550 $267,228,055 2% >75K to 100K $480,132,177 4% MT $44,069,555 0% Conf 90+ 0.3% 1.7% 2. 6% 3.5% 4.9% 5.8% 5.1% 3.4% 3. 4% 3.1% 2. 6% 1.4% 1.0% 1.0% 0.9% 0. 7% 1.2% 0.9% 2.5% Price 551 to 620 621 to 660 $1,150,744,788 $1,392,742,036 11% 13% Over 700K To tal $185,994,205 $10,931,628,958 2% 100% NC NE $177,493,830 $20,717,974 2% 0% NC 90+ 90+ 0.0% 0.3% 0.1% 1.8% 0. 2% 2. 8% 0.1% 3.6% 0.3% 5.2% 0.1% 5.9% 3.1% 8.1% 5.4% 8.8% 5. 6% 8. 9% 5.0% 8.1% 5. 2% 7. 8% 8.3% 9.7% 11.7% 12.6% 12.2% 13.2% 12.0% 12.9% 13. 3% 14. 0% 13.4% 14.6% 11.8% 12.7% 5.7% 8.2% 661 to 680 $898,196,122 8% NH $41,474,240 0% Conf EP D 0.8% 2.4% 2. 5% 2.7% 2.8% 3.5% 3.7% 2.8% 2. 7% 2.5% 1. 8% 0.8% 0.5% 0.4% 0.4% 0. 6% 0.1% 0.5% 1.8% 681 to 720 $2,348,975,684 21% LTV Disti bution NJ $438,262,791 4% Doc Type Distribution NC EPD 0.1% 0.0% 0. 1% 0.1% 0.2% 0.1% 0.6% 1.0% 0. 9% 0.8% 1. 1% 1.8% 2.3% 2.0% 1.4% 1. 5% 1.1% 0.7% 1.0% Over 720 $4,868,679,186 45% Sum of SumOfPRIN_PURCH_BAL NM $87,210,421 1% Sum of SumOfPRIN_PURCH_BAL E PD 0.9% 2.4% 2. 6% 2.8% 2.9% 3.6% 4.3% 3.8% 3. 7% 3.4% 2. 9% 2.6% 2.8% 2.4% 1.8% 2. 1% 1.2% 1.2% 2.9% (blank) $5,063,087 0% LT V Total Distribution NV $64,797,268 1% Doc Type Total Distr ibution Las t updated on: J ul-08-2008 Profita bility July 200 7 - June 2008 Not Va lid for deci si on making at the AE and Broker Level Total $10,931,628,958 100% .01 to 55 $1,258,335,169 12% NY $178,078,426 2% Fast App $20,234,224 0% 2008-06 2008-05 2008-04 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 2007-08 2007-07 T otal 55.01 to 60 $517,093,285 5% OH $61,857,233 1% Full Docs $10,445,689,414 96% P ri cing Revenue $1,014,242 $1,943, 421 $1, 446,152 $2,175, 834 $3, 558,253 $1, 963,322 $1, 888,213 $2,483, 064 $2, 334,791 $977, 172 $4, 423,626 $5, 345,272 $29,553,364 60.01 to 75 $2,870,583,529 26% OK $79,849,535 1% Lite Doc $2,229,780 0% Fees $1,266,536 $1,702, 430 $2, 168,780 $2,136, 375 $2, 506,683 $2, 374,798 $3, 098,420 $3,156, 166 $3, 370,007 $2,928, 770 $4, 583,217 $4, 874,807 $34,166,988 P roducts Distribution 75.01 to 80 $3,076,826,079 28% OR $291,289,333 3% No Doc $27,653,483 0% Other RE V $65,172 -$73, 901 -$175,536 -$7, 105 -$97,972 -$59,171 -$92,937 -$154, 004 $53,018 -$29, 926 $1, 873,846 -$67,391 $1,234,094 80.01 to 90 $1,425,553,101 13% PA $284,911,630 3% No Income/Full As sets $30,223,129 0% Total REV $2,345,950 $3,571, 950 $3, 439,395 $4,305, 104 $5, 966,964 $4, 278,949 $4, 893,697 $5,485, 227 $5, 757,817 $3,876, 016 $10, 880,689 $10, 152,688 $64,954,446 Sum of SumOfPRIN_PURCH_BAL Activity Distribution Comm issions $1,510,819 $1,874, 479 $1, 886,273 $1,713, 609 $1, 935,177 $2, 159,522 $1, 960,409 $2,987, 081 $2, 808,431 $2,534, 250 $4, 029,285 $4, 495,705 $29,895,039 Prog_Group2 Total 90.01 to 95 $688,052,603 6% RI $39,381,915 0% One Paystub $8,470,696 0% P rod uction & UW $1,523,193 $1,745, 606 $2, 194,345 $2,673, 921 $2, 607,335 $2, 821,791 $3, 537,127 $3,203, 477 $3, 148,911 $2,865, 135 $3, 518,999 $1, 845,364 $31,685,204 Accent125 $2,063,315 0% 95.01 to 100 $1,095,185,191 10% SC $148,637,872 1% Stated Inc ome $373,036,942 3% Closing/ Funding $216,446 $267, 799 $266,632 $386, 980 $270,386 $372,791 $665,643 $545, 130 $524,514 $496, 356 $676,423 $672,333 $5,361,432 Access $5,244,350 0% To tal $10,931,628,958 100% SD $802,200 0% Stated Inc ome/S tated Ass ets $24,091,290 0% P rod uction Support $248,268 $389, 161 $391,442 $443, 544 $362,763 $401,397 $643,406 $746, 290 $745,735 $584, 920 $939,481 $839,484 $6,735,892 Adv antage $273,204,490 2% TN $171,878,071 2% Total $10,931,628,958 100% P roj ectedContribu ti on -$1,152,776 -$705, 095 -$1, 299,296 -$912, 949 $791,304 -$1, 476,553 -$1, 912,888 -$1,996, 752 -$1, 469,775 -$2,604, 645 $1, 716,501 $2, 299,802 -$8,723,121 Agency $9,881,595,077 90% TX $835,600,949 8% Last updated on: A ug-15-2008 Loss Se verity November 2006 - March 2008 Alpine $365,598,518 3% Conforming Distribut ion UT $322,877,988 3% 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 2007-08 2007-07 2007-06 2007-05 2007-04 2007-03 2007-02 2007-01 2006-12 2006-11 2006-10 To tal FLLOC $4,448,000 0% Sum of SumOfPRIN_PURCH_BAL VA $335,495,418 3% E PD 106 137 159 178 202 267 281 300 332 287 292 300 277 93 23 10 13 19 3,276 HE LOC $125,417,372 1% CONF Total Distribution VT $17,417,390 0% 90+ 11,177,416 17,986,102 29,675,355 47,889, 613 46,188,672 87, 761, 923 131,938, 072 157,628, 636 162, 974,147 146,723, 517 192, 859,631 215, 620, 027 242,810, 139 109,107,549 27,286, 838 25, 662,385 28,322,433 45,292,801 1,726,905,257 POA $205,234,301 2% EA $1,415,891,000 14% WA $1,242,704,443 11% Loss $6,216,437 $8,267,404 $10,777,364 $16,474, 995 $16,529,638 $28, 534, 254 $40,814, 547 $49,431, 368 $53, 972,068 $51,733, 574 $72, 464,004 $87, 426, 842 $94,827, 054 $42,792,436 $10,130, 883 $8, 263,174 $9,140,330 $14,472,833 $622,269,205 Sec ond $68,823,534 1% MCM $379,486,929 4% WI $104,900,850 1% T his report contains confidential, proprietary information that ha s been prod uced for the exclusive use of Homecomings Financial, L LC associ ates and the b roker to whom the report relates. Distribution of th is report to an unaffil iated third party is p rohi bite d without the express written consent of a Homecoming s Total $10,931,628,958 100% Standar d $8,064,432,088 82% WV $9,885,855 0% F inancial Managi ng Director. Unauthorized di stribution of this report may re sult in the terminati on of employment and/or the broker rel ation shi p, and Homecomi ngs may take any and all appropriate l egal a ction without notice, in clu ding i nstituti ng a claim for in junctive relief and/or monetary damag es. All rights reserved. Jumbo $21,785,060 0% WY $53,291,650 0% To tal $9,881,595,077 100% ND $989,380 0% Tracking Total $10,931,628,958 100% ABC (Activity-Based Cost) Cost Per Unit (CPU) Model and Utilization Application Cost Per Unit Risk Management All Branches YTD (Jan-Sep 2005) Distribution of Operating Expenses Loans Funded = 74897 Chart 1 - Functional Classifications Chart 2 - Productive Task Classifications and Analysis Labor Performance Key Risk Metric Below Plan Plan Above Plan Target Above Target Weight Current Month Status Sales - OH Admin - Comp 1 Point 2 Points 3 Points 4 Points 5 Points 3.86 AP 4.9% 7.0% Admin - OH 3.3% Fun d Close 21.4% Overall Risk Rating on areas includin g >3 <=3 and >2.5 <=2.5 and >2 <=2 and >1.5 <=1.5 10% T Prospecting Application Sales Compensation Productive - 9.6% SU - Receive File ORM Scorecard Rating 2 Comp 0.1% Info. Securit y, Responsible Practices, 21.0% SU - Process File Business Continuity Planning, Fraud, 13.7% Outsourcing/Vendor Risk, etc Management UW - Exception s 22.4% SU - Send Simulation Disclosures Loan Performance Actual HFW performance compared to expected Low Sig n. Below Belo w Expectations Barely Meets Meets Expectations Exceeds 5% Barely Meets AP 1.8% UW - Co nditio ns performance Expectatio ns Expectations Expectatio ns Expectations Productive - OH UW - Un derwriting 6.8% Sales - Comp 9.0% 24.1% Indirect - Comp 45.2% Indirect - OH 6.7% 2.9% Loan Performance Actual HFW performance compared to expected High Sig n. Below Belo w Expectations Barely Meets Meets Exceptations Exceeds 5% Below P performance Expectatio ns Expectations Expectatio ns Expectations UNDERWRITER_NAME Hard Lock QLP % UW % EPD Total 90+Units 90+ EPD% WA FICO WA LTV WA CLTV WA DTI Compliance Sign % Credit Sign % Expense Category $000 % Total CPL Expense Category $000 % Total CPL Min 1 % Total Regulatory Compliance TIL signif icant findings rate >4.5% <=4.5% - >4.0% <=4.0% - >3.5% <=3.5% - >3% <=3% 10% 3.8% AP ACEVEDO, A. Productive - Comp 12,848.5 21.0% 171.55 SU - Receive File 25.6 0.1% 0.34 2.28 1.3% ROR significant fin dings rate >4.5% <=4.5% - >4.0% <=4.0% - >3.5% <=3.5% - >3% <=3% 10% 3.0% AT ADAMS, ALLAN 65% 72% 91% 73% 20 70 4.2% 1.1% 719 71.7 75.4 42.9 0% 0% Productive - OH 5,513.0 9.0% 73.61 SU - Process File 2,516.3 13.7% 33.60 23.26 12.8% ADAMS, DEREK (GE) 68% 74% 76% 32% 743 79.0 79.2 44.3 33% Indirect - Comp 1,758.1 2.9% 23.47 SU - Send Disclosures 338.7 1.8% 4.52 4.25 2.3% RESPA sig nficant fin dings rate >4.5% <=4.5% - >4.0% <=4.0% - >3.5% <=3.5% - >3% <=3% 10% 2.4% AT Indirect - OH 4,097.4 6.7% 54.71 UW - Underwriting 4,422.0 24.1% 59.04 41.92 23.1% Project Management Cost Benefit Analytics ADAMS, DIANN 0% HOEPA significant findings rate >1.00% <=1.00% - >0.75% <=0.75% - >0.50% <=0.5% - >0.25% <=0.25% 10% 0.6% AP AHUMADA, PATRICIA (GE) 75% 10 23 14.4% 6.3% 656 95.2 95.2 36.3 State High Cost significant findings rate >1.00% <=1.00% - >0.75% <=0.75% - >0.50% <=0.5% - >0.25% <=0.25% 10% 1.2% BP ALABARCES, OSCAR 100% 14 68 11.0% 2.2% ALANIZ, ROBYN 58% 71% 79% 76% 15 76 6.4% 1.2% 706 74.0 81.7 42.6 Credit Compliance Significant net findings rate >7.5% <=7.5% - >6.5% <=6.5% - >5.5% <=5.5% - >4.5% <=4.5% 10% 6.0% AP ALTIER, SANDRA (MGIC) 0% 0% 100% ALVAREZ, KATHLEEN 55% 64% 82% 79% 57 230 13.3% 3.1% 690 76.0 77.9 42.7 23% 0% Application (CBA) Early Payment Defaults No payments made on a loan in the Prime 1.31%+ of RFG 1.21% - 1.30% of RFG 1.11% - 1.20% of RFG 1.01% - 1.10% of RFG <= 1.00% of RFG 5% 1.3% P ALVAREZ, MARTA 60% 71% 85% 68% 47 120 13.7% 4.6% 659 81.2 85.1 42.6 50% Ave. Ave. Ave. Ave. Ave. ALVAREZ, MARY 100% 100% 100% 50% 1 1 7.3% 4.5% 576 74.5 74.5 50.4 90 days following the 1st payment due date after Non- 1.31%+ of RFG 1.21% - 1.30% of RFG 1.11% - 1.20% of RFG 1.01% - 1.10% of RFG <= 1.00% of RFG 5% 0.9% AT AUCKLAND, ELIZABETH 53% 65% 81% 62% 56 151 12.5% 4.3% 664 85.6 87.6 43.9 0% the funding date Prime Ave. Ave. Ave. Ave. Ave. AURAND, LYNETTE 0% 0% 33% 2 0 0.0% 16.7% Automated 0% 0% Repurchase Reserve Annual cumulative repurchase reserve increases Repurchase Repurchase reserve Repurchase reserve Repurchase reserve Repurchase 10% 1.15 AT AVERA, MAURI 0 0 0.0% 0.0% due to fraud schemes reserve increase in crease of $4.5M increase of $3.5M increase of $2.5M reserve in crease of BAKER, DWAINE (MGIC) 39 77 11.5% 6.7% >$4.5M $1.5M BARBATO, LAURA 78% 94% 83% 78% 1 2 9.9% 5.6% 666 96.7 96.7 43.2 BARNETT, JERRY 55% 67% 74% 78% 0 0 0.0% 0.0% 725 68.3 70.5 39.0 40% 0% AP BATTITO, PATRICIA (GE) 2 18 9.7% 0.9% BEAVER, CHUCK 0% 0% 0% 0 0 0.0% 0.0% Quality Walls Application Risk Management BECK, MICHELLE 1 3 3.2% 1.3% BELL, ROBBIE 8 38 6.2% 1.2% BERNHARDT, DAVID 49% 58% 73% 53% 7 57 5.3% 0.6% 731 69.2 71.8 42.0 0% 0% BIASE, CAROL 74% 80% 99% 92% 20 117 8.1% 1.4% 694 71.9 76.7 44.7 0% BIEHLE, TAMARA (GE) 7 17 5.5% 2.6% BOLDEN, VERONICA (MGIC) Application Staffing/ Vendor Management Pipeline and BOLLINGER, DEBORAH 68% 75% 76% 67% 23 63 4.5% 1.5% 721 73.5 76.5 42.1 7.69E-02 0% BONNER, MICHAEL 100% 100% 100% 0% 753 61.7 61.7 25.8 BOOTH, LISA 63% 72% 63% 83% 25 65 4.1% 1.7% 710 77.6 79.9 41.5 50% 0% BOTHEL, JULIE 50% 61% 75% 57% 11 41 3.2% 0.9% 712 69.0 73.5 43.5 71% 0% BRADDOCK, PATRICIA 58% 69% 62% 88% 9 16 3.7% 2.4% 671 80.1 81.8 43.6 100% BRANTLEY, LORI 69% 77% 81% 89% 37 104 7.5% 2.5% 698 74.4 77.2 44.0 BREWER, BRAD 100% 100% 100% 100% 0 0 0.0% 0.0% 825 43.0 43.0 51.9 BROCK, SEAN 76% 82% 84% 88% 33 99 7.4% 2.2% 689 76.7 79.7 44.9 50% Capacity Model Throughput BRUNO, CHERI 82% 90% 100% 100% 733 70.4 71.8 42.5 euvelleB A leahci M,yht raCc M .CNI,GNIDNEL LANOITAN CIFICAP 000 -694140 NIRAD ,SMADA Y BUBNICK, BRYAN 62% 71% 82% 74% 43 125 5.6% 1.7% 702 70.0 73.0 42.7 38% 10% euvelleB A leahci M,yht raCc M PROC EGAGTROM ESIDARAP 000 -984140 NIRAD ,SMADA Y 1 000,071$ BUCHANAN, ROBERT 67% 79% 76% 78% 15 20 3.6% 2.5% 690 74.5 78.0 44.7 100% euvelleB A leahci M,yht raCc M LAICNANI F ESUOHTHGIL 000 -962140 NIRAD ,SMADA Y euvelleB A leahci M,yht raCc M CNI PUORG GNIDNUF BD 000 -281140 NIRAD ,SMADA Y 6 000,332,1$ euvelleB A leahci M,yht raCc M NIF DNA YTLAER EGATNA VDA TSRIF 000 -711140 NIRAD ,SMADA Y 3 704,745$ euvelleB A leahci M,yht raCc M D ETAROPROCNI PUORG NNI W NNIW 000 -511140 NIRAD ,SMADA Y Base Case 2006 euvelleB A leahci M,yht raCc M LAICN ANI F GNUOY ELLEHCIM 000 -860140 NIRAD ,SMADA Y 1 023,432$ Labor Performance Staffing Model euvelleB A leahci M,yht raCc M CNI PUORG SR EDN EL DE TINU 000 -520140 NIRAD ,SMADA Y 1 000,701$ User Can Adjust - Overtime Assumptions 2006 2006 2006 2006 2006 2006 euvelleB A leahci M,yht raCc M PROC LAICNANIF NIW 000 -110140 NIRAD ,SMADA Y 14 000,648,8$ - % Temp Workforce Assumptions Actual Actual Actual Actual Actual Actual euvelleB A leahci M,yht raCc M CNI EGAG TROM R & R 000 -200140 NIRAD ,SMADA Y 21 053,402,4$ Jan Feb Mar Apr May Jun euvelleB A leahci M,yht raCc M PUORG GNIDNEL JC 000 -248040 NIRAD ,SMADA Y Production Hard Files 12,970 14,718 19,130 16,632 19,754 20,811 euvelleB A leahci M,yht raCc M SECIVRES LAICNANI F EDN ARG ASAC 000 -767040 NIRAD ,SMADA Y 2 000,792$ Funded Units 9,533 10,785 14,746 12,720 15,428 15,788 euvelleB A leahci M,yht raCc M LAICNANIF YTIC NACIREMA 000 -764040 NIRAD ,SMADA Y 5 055,981,1$ Volume ($ Millions) $ 1,573.5 $ 1,829.8 $ 2,530.7 $ 2,175.5 $ 2,623.5 $ 2,673.2 euvelleB A leahci M,yht raCc M GNIDNEL SEYAH 000 -062040 NIRAD ,SMADA Y euvelleB A leahci M,yht raCc M EGAGTRO M E MOH LAIREP MI 000 -551040 NIRAD ,SMADA Y 2 000,115$ euvelleB A leahci M,yht raCc M EGAG TRO M KCO TS MOC 000 -621040 NIRAD ,SMADA Y 1 000,981$ Headcount Vendor Management Pipeline Management euvelleB TSE T YNAPMOC TSET 000 -444444 SIRHC ,EDYH Y Actual FTE's - As of July 31, 2006 euvelleB T SET TCAMGELESLHW 100 -000075 0108- ESUOH Y euvelleB REKORB TSET 000 -990035 0108- ESUOH Y Full Time Variable 339.0 355.0 347.0 365.0 393.0 399.0 Temporary Variable 34.6 57.7 68.9 80.4 77.4 93.2 E MAN_HCNARB MSA EMAN_REKORB DI_REKORB E MAN_CEXE_TCCA evi tcA sti nU e muloV Total Variable FTE's Actual 373.6 412.7 415.9 445.4 470.4 492.2 Application Non-Variable FTE's Actual (excludes AE's) 90.0 94.0 95.0 96.0 97.0 105.0 srek orB 918,4 936,51 633,835,713,3$ Total Actual FTE's 463.6 506.7 510.9 541.4 567.4 597.2 t nu oc srek orB sti nU e muloV Required FTE's - Assumes 1% Temporary Workforce Allowable No Overtime 0.0% d oirep g nill or s ht no m 6 - srek orB evi tcA * Full Time Variable Employees Required 277.0 332.0 401.0 395.0 429.0 441.0 Temporary Variable Employees Required 2.7 3.5 4.4 4.2 4.7 4.9 Total Variable FTE's Required 279.7 335.5 405.4 399.2 433.7 445.9 Non-Variable FTE's Required (excludes AE's) 90.0 96.0 111.0 113.0 117.0 120.0 E MAN_HCNARB MSA E MAN_CEXE_TCCA DI_REKORB EMAN_REKORB sti nU EVI TCA e muloV Total Required FTE's Efficiency+Changes 369.7 431.5 516.4 512.2 550.7 565.9 Revised UA 367.5 374.4 356.3 421.4 423.4 435.9 Over(Under) Required Headcount Original 351.7 358.2 340.8 401.7 403.5 416.5 Note: Diagram Scenario is not MECE (Mutually Exclusive, Collectively Exhaustive) © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 15
In-Depth Analytics F1 Strategy’s Problem Solving Process Leverages An Extensive Repertoire Of Decision-Making Methodologies Problem Solving Process Solution Definition/Refinement Decision Tree Workplan Observations Update Strategies A /Metrics 1 A,1,4,7 4 Financial 6 B Fact-Based Iterative Proposed External 2 B,2,5,8 Hypothesis Analysis Solution(s) 9 Internal 5 Resources 7 C C,3,6,9 8 3 Communications (Throughout Process) Interviews Memos Discussion Outlines Exhibits Reports Summaries © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 16
80% Solutions We Focus On Fast 80% Solutions With Relevant Depth, Providing Flexibility Without Compromising Quality Value Of An 80% Solution 100% 100% solution 80% solution 80% solution solution 80% solutions are specially adapted to fast changing markets because they Value Generated are flexible and help optimize the balance between labor and systems By addressing the remaining 20% High return on Diminishing through skilled and flexible employees spending returns on an operation can adapt quickly to any spending change in market requirements Work performed is necessary and Work performed Selective use of automation, reduces sufficient to get often creates technology costs (elimination of over- to expected complexity and design), and provides a motivating results reduces flexibility work environment Completeness of the design / Time to implement © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 17

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F1 Strategy - Charting Business DNA

  • 1.
    Presenting F1 Strategy: ChartingYour Business DNA Tuesday, November 17, 2009
  • 2.
    Content Of ThisDocument Content Executive Summary Objective Understanding Strategy’s Weak Points To introduce F1 Strategy, a Our Approach business advisory boutique Top-Down Approach focused on helping companies successfully execute on their Rendering Strategies Actionable strategies. Bottom-Up Approach The practice leverages cause- Implementum effect metrics and in-depth analytics to chart the DNA of a In-Depth Analytics business. 80% Solutions © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 2
  • 3.
    Executive Summary Business AdvisoryBoutique With Unique Hands-On Approach Enabling Fast Quantifiable Results F1 Strategy Overview Generates feasible Strategic solutions creating thinking strategic advantage combined and marketable with added value pragmatism Accelerates design of solutions through iterations and pilots Partnership with Leverage of Partnership with Leverage of clients to execute on FAST proprietary clients to execute on FAST proprietary a hypothesis-driven QUANTIFIABLE framework involving a hypothesis-driven QUANTIFIABLE framework involving and iterative RESULTS different levels of the and iterative RESULTS different levels of the approach organization approach organization Ensures successful transition from Sustainable strategy formulation Sustainable implementation to strategy execution Generates implementation through sustainable through proprietary momentum and proprietary software ensures client software implements implements ownership © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 3
  • 4.
    Understanding Strategy’s WeakPoints Business Ideas Fail Not Because Of A Lack Of Good Strategies But Due To Poor Execution Why Do Strategies Fail? Typical Questions: ― How do we intend to create value for the shareholder? Major reasons behind strategy failure*: ― How do we execute our strategy? ― How are we going to make money? ― Incorrect implementation of a correctly ― How are we going to help our clients (Value designed strategy Proposition)? ― Latent resistance by the organization’s ― Should we continue with all our offerings? employees and partners ― How do we hold people accountable (for ― Incorrect diagnosis of strategic success and failures)? requirements ― Do we have he right vendor partnerships? ― Incorrect strategy designed for a correct ― What is our exposure to market risks? set of strategic requirements Facts: — Culture eats strategy for lunch — You cannot manage what you do not measure — A Business DNA Map will provide the link between strategy formulation and strategy execution — You have more information about your business than ever before. But are you using it to outthink your rivals? If not, you’re failing to exploit a potent competitive tool** * Leo Hopf, Carlson School Of Management ** Competing on Analytics, Davenport-Harris, Harvard Business School Press 2007 © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 4
  • 5.
    Our Approach F1 Strategy’sApproach Breaks The Status Quo And Moves Beyond Mere Advice Proprietary Process And Implements Top-Down Approach F1 Strategy Implements F1 Strategy partners with Proprietary software suite senior management to with historical as well as Strategic Objectives identify key pain-points F1 Strategy simulation views to help and opportunities cause-effect monitor and project framework links business performance DNA Map strategy using the following formulation to perspectives: Financial, strategy External, Internal and execution Resources Data Center Key Metrics Bottom-Up Approach In-Depth Analytics F1 Strategy coordinates Decision-making repertoire with subject matter leveraged by F1 Strategy’s experts (SME’s) to define problem solving process. and consolidate information © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 5
  • 6.
    Top-Down Approach Partner WithClients To Identify Competencies And Capabilities Competency Pyramid Customer Shareholder Those critical core competencies that, in combination, deliver Platform(s) and sustain undisputed market leadership Core Capabilities and functions that have a direct and Competencies significant impact on competitiveness Capabilities and functions that are important to Enabling Capabilities competitive advantage in an indirect or enabling way Capabilities and functions that are basic and currently Supporting Capabilities necessary to the operation of a company © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 6
  • 7.
    Top-Down Approach HelpClients Translate Their Mission Into Desired Outcomes Using A Proven Methodology Converting Intangible Assets Into Tangible Outcomes Partner with client, conduct Mission Partner with client, conduct Why we exist observations, perform initial observations, perform initial assessment (e.g., SWOT) Values assessment (e.g., SWOT) and develop hypotheses What’s Important to Us and develop hypotheses Vision What We Want to Be Strategy Our Game Plan Business DNA Map Translate the Strategy Business DNA Metrics Measure and Focus Targets and Initiatives What We Need To Do Personal Objectives What I Need To Do OUTCOMES Source: Robert Kaplan and David Norton © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 7
  • 8.
    Top-Down Approach Implementing StrategiesDepend On Understanding The Cause-Effect Between Strategic Objectives Sample Business DNA Map Financial -- 40% Optimize Market Increase Business Increase Profitability Presence Volume Client -- 25% Manage Price Provide exceptional Improve Client Competitiveness Customer Service Performance Internal -- 20% Reduce Cost to Manage Sales Implement critical Achieve superior Risk Produce Performance technology projects and Quality Rating Resources -- 15% Manage Vendor Reduce Turnover performance © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 8
  • 9.
    Rendering Strategies Actionable ABusiness DNA Map Is Translated Into Objectives, Key Performance Indicators And Action Items From Business DNA Map To Actionable Metrics Financial -- 40% Optimize Market Increase Business Increase Profitability Presence Volume Well defined metrics are used to Client validate or readdress strategic -- 25% Manage Price Competitiveness Provide exceptional Customer Service Improve Client Performance objectives. They will help managers understand cause- Internal effect correlations. -- 20% Reduce Cost to Manage Sales Implement critical Achieve superior Risk Produce Performance technology projects and Quality Rating Resources -- 15% Manage Vendor Reduce Turnover performance BizCase Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% F3 Increase Business Volume Total Sale Volume 10% Client C1 Manage Price Competitiveness Competitive Score 10% -- 25% C2 Provide exceptional Customer Service Client Satisfaction Score 5% C3 Improve Client Performance Client Average Score 10% Objectives and themes in a Business DNA Map are used to Internal -- 20% I1 I2 I3 Reduce Cost to Produce Manage Sales Performance Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% build an actionable codecard I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month cumulative "Good" rating 5% used to clearly communicate Resources R1 Reduce Turnover % Turnover 5% strategic expectations down to -- 15% R2 Manage Vendor performance Vendor Performance Score 10% the individual levels. © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 9
  • 10.
    Bottom-Up Approach Business DNAMetrics Are Quickly Built Using Available Client Systems To Standardize The Use Of Data Building Blocks Of Business DNA Codes Client Data Client Data Centralized Data Centralized Data Analytical Reporting Analytical Reporting Business DNA Codes Business DNA Codes BizCase Objective Measure Weight Target Metric Actuals Capacity Model Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% Information F3 Increase Business Volume Total Sale Volume 10% Client Performance Client -- 25% C1 Manage Price Competitiveness Competitive Score 10% Activity Based Costing C2 Provide exceptional Customer Service Client Satisfaction Score 5% C3 Improve Client Performance Client Average Score 10% Forecasting Internal -- 20% I1 Reduce Cost to Produce I2 Manage Sales Performance I3 Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% Compensation I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating Resources R1 Reduce Turnover % Turnover 5% -- 15% BizCase R2 Manage Vendor performance Vendor Performance Score 10% Single Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% Source F3 Increase Business Volume Total Sale Volume 10% Customer Client C1 Manage Price Competitiveness Competitive Score 10% Of -- 25% C2 Provide exceptional Customer Service Client Satisfaction Score 5% Cost Complaints C3 Improve Client Performance Client Average Score 10% Truth Internal -- 20% I1 Reduce Cost to Produce I2 Manage Sales Performance I3 Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating Resources R1 Reduce Turnover % Turnover 5% Databases -- 15% R2 Manage Vendor performance BizCase Vendor Performance Score 10% Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% Daily download F2 Optimize Market Presence F3 Increase Business Volume BizCase Share of Market Total Sale Volume 10% 10% uses agreed upon Client -- 25% C1 Manage Price Competitiveness C2 Provide exceptional Customer Service Competitive Score Client Satisfaction Score 10% 5% definitions to C3 Improve Client Performance Client Average Score 10% compile data into a target Internal -- 20% I1 Reduce Cost to Produce I2 Manage Sales Performance I3 Implement critical technology projects Cost Per Unit (CPU) $/units per Account Executive IT Score 5% 5% 5% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating central data mart Resources -- 15% R1 Reduce Turnover R2 Manage Vendor performance % Turnover Vendor Performance Score 5% 10% current Turn Quality Time (# of issues) © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 10
  • 11.
    Bottom-Up Approach Data IsMined Without Introducing Complex And Expensive Systems Or Disrupting Business Flow Bottom-Up Approach To Single Source of Data Client Data Client Data Centralized Data Centralized Data Analytical Reporting Analytical Reporting Business DNA Codes Business DNA Codes Single Resources Needed Source Of Truth Depending on final solution (e.g., SQL, Oracle), an assessment of technical resources will be needed Yes Can we get the data No consistently with Prototype 1 to 2 FTEs will be needed to prototype the minimum effort? single source of truth, using MS Access for example Yes No Test and recommend Is the data correct? data fixes 1 to 2 FTEs will be needed to test the data Yes No Work with IT to Start Does the data identify data needs needed exist? and build database Mini-projects to be launched depending on recommendations and data needs © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 11
  • 12.
    Bottom-Up Approach InformationIs Organized To Allow In-Depth Analyses While Supporting And Not Paralyzing Decision-Making Three Levels Of Information Client Data Client Data Centralized Data Centralized Data Analytical Reporting Analytical Reporting Business DNA Codes Business DNA Codes High level overview of All products Conforming Jumbo Alt-A Week starting 01/28 02/04 02/11 02/18 02/25 01/28 02/04 02/11 02/18 02/25 01/28 02/04 02/11 02/18 02/25 01/28 02/04 02/11 02/18 02/25 Rank Wholesale 3 2 1 1 1 3 2 1 1 1 3 2 1 1 1 4 3 3 3 3 Correspondent 4 3 3 2 1 4 3 3 2 1 4 3 3 2 1 5 4 4 4 4 Retail 4 3 2 2 1 4 3 2 2 1 4 3 2 2 1 5 4 4 4 4 Diff from 1st Wholesale (0.180) (0.140) 0.000 0.000 0.000 (0.180) (0.140) 0.000 0.000 0.000 (0.180) (0.140) 0.000 0.000 0.000 (0.180) (0.140) 0.000 0.000 0.000 Correspondent (0.240) (0.200) (0.190) (0.140) 0.000 (0.240) (0.200) (0.190) (0.140) 0.000 (0.240) (0.200) (0.190) (0.140) 0.000 (0.240) (0.200) (0.190) (0.140) 0.000 Retail (0.215) (0.197) (0.165) (0.165) 0.000 (0.215) (0.197) (0.165) (0.165) 0.000 (0.215) (0.197) (0.165) (0.165) 0.000 (0.215) (0.197) (0.165) (0.165) 0.000 Executive business to compare channel Diff from 3rd Wholesale (0.040) (0.030) 0.032 0.041 0.065 (0.040) (0.030) 0.032 0.041 0.065 (0.040) (0.030) 0.032 0.041 0.065 (0.040) (0.030) 0.032 0.041 0.065 Correspondent (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 Retail (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 (0.151) (0.110) (0.096) (0.040) 0.057 Price Wholesale (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) Correspondent (1.011) (1.012) (1.075) (1.120) (1.212) (1.011) (1.012) (1.075) (1.120) (1.212) (1.011) (1.012) (1.075) (1.120) (1.212) (1.011) (1.012) (1.075) (1.120) (1.212) Retail (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) (1.011) (1.012) (1.095) (1.122) (1.212) performance in the Over the last three weeks all three On February 14th base price in the Jumbo's pricing has been especially Alt-A market size has remained Decision-Making channel competitive positions in the Wholesale channel was improved strong in the ARM market, which small and its pricing has been left marketpalce have improved from an by 12.5 bps. explains a 75/25 ARM/Fixed stable. average of 2 or 3 to 1 or 2. breakdown. This change was motivated by At this point without better product The improvement can be mainly findind that the price elasticity was All channels have seen market features pricing changes would be attributed to a considerably sufficient to make higher overall share increase, though, the market ineffective. improved base price for the revenue by increasing volume. remains small. marketplace, against each Conforming Fixed program. Jumbo pricing has also been improved. The current low volumes in the market, however, are likely to persist and keeping Jumbo no more than 7% of the overall product mix. other and over time Conforming 30-yr Price (6%) comparisons on 2/14/2008 Non-peer group Peer group HFW Lenders N. Califor nia S. Califo rnia Bellevue Dallas 20 20 20 20 94% 94% 94% 94% Peer Percentile 15 15 15 15 10 10 10 10 Conforming 30-yr Price (6%) comparisons on 2/14/2008 Non-peer group 5 5 5 5 Peer group 0 0 0 0 HFW -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 Pric e Lenders N. California S. California Bellevue Dallas Provid 20 Provid ○, -1.875 Provid 20 ○, -1.875 20 Provid ○, -2.250 20 ○, -1.875 94% 94% 94% 94% HFW ○, -1.666 HFW ○, -1.666 Peer Percentile HFW ○, -1.791 HFW ○ , -2.026 TBW ○, -1.565 TBW ○ , -1.565 TBW ○, -1.605 Chase ○, -1.951 15 15 US ○, -1.579 15 TBW ○, -1.890 15 US Bank ○, -1.529 US ○, -1.529 Flag ○, -1.508 Flag ○ , -1.508 Citi ○ , -1.562 CW ○, -1.875 CW ○, -1.500 10 WAMU ○, -1.500 10 Flag ○ , -1.508 10 NatCity ○, -1.875 10 WAMU ○, -1.500 Vertice ○, -1.405 Vertice ○ , -1.505 US Bank ○, -1.754 Vertice ○, -1.405 CW ○, -1.375 CW ○, -1.500 Flag ○ , -1.723 5 5 NatCity ○, -1.500 5 5 NatCity ○, -1.375 NatCity ○, -1.375 Mortg IT ○, -1.629 C iti ○, -1.312 Citi ○, -1.312 WAMU ○, -1.500 Horizon ○, -1.625 Information aggregated but HSBC ○, -1.312 0 HSBC ○, -1.312 0 HSBC ○, -1.400 0 WF ○ , -1.614 0 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 Mortg ○, -1.143 WF ○, -1.349 BOA ○ , -1.533 Managerial Monitoring Mortg IT ○, -1.143 Aurora ○, -1.125 Pric e Aurora ○, -1.125 BOA ○, -1.323 H SBC ○, -1.500 WF ○, -1.078 Chase ○ , -1.106 Mortg ○, -1.293 WAMU ○, -1.500 BOA ○, -1.023 WF ○ , -1.078 H orizon ○, -1.250 Provid Citi ○, -1.437 Provid Provid Provid ○, -1.875 ○, -1.875 ○ , -2.250 H orizon ○ , -1.000 HFW BOA ○ , -1.023 ○, -1.875 ○, -1.666 HFW Aurora ○, -1.125 ○, -1.666 HFW Vertice ○, -1.355 ○, -1.791 HFW ○ , -2.026 Wachovia ○ , -0.984 Horizon ○, -1.000 Chase ○, -1.066 TBW Aurora ○, -1.125 ○ , -1.605 TBW ○, -1.565 TBW ○, -1.565 ○, -1.059 Chase ○, -1.951 Chase ○ , -0.836 U S Bank W acho ○, -0.984 ○, -1.529 US Wacho ○, -1.529 US Wachovi ○ , ○, -1.059 -1.579 Branch TBW ○ , -1.890 Date Flag ○, -1.508 Flag ○, -1.508 Citi ○, -1.562 CW ○, -1.875 CW ○ , -1.500 WAMU Branch ○, -1.500 N. CA Flag S.Vertice CA WA ○, -1.508 AZ-1.505 TX FL AL NatCity NC NY ○, -1.754 MA ○, -1.875 NJ 02/01 02/04 02/05 02/06 02/07 02/07 02/10 WAMU ○ , -1.500 For t Lauderdale Vertice ○, -1.405 ○, US Bank Detroit Char lotte CW ○, -1.500 New Jersey Vertice ○, -1.405 CW ○, -1.375 Flag ○, -1.723 20 NatCity 20 ○, -1.375 Rank NatCity Conf 30-1.375Fixed 20 ○, Yr 3 2 NatCity 1 20 1 -1.500 1○, 1 1 Mortg IT 1 1 ○, -1.629 1 1 Conf 30 Yr Fixed 2 1 1 2 2 1 1 94% 94% Citi ○, -1.312 94% WAMU ○, -1.500 94% Horizon Citi HSBC ○ , -1.312 ○ , -1.312 H SBC Conf ○, -1.312 Fixed 15 Yr 4 3 HSBC 3 ○,3-1.400 3 3 3WF 3 3 ○,, -1.614 2 ○ -1.625 1 Conf 15 Yr Fixed 2 1 2 2 2 2 2 15 15 15 WF 15 ○, -1.349 Mortg IT ○, -1.143 Mortg ○ , -1.143 Govt 30 Yr Fixed 4 3BOA 3 3 3 3 3BOA 3 3 -1.533 2 ○, 1 Govt 30 Yr Fixed 1 2 2 2 3 2 2 Aurora ○, -1.125 Aurora ○, -1.125 ○, -1.323 HSBC ○, -1.500 granular enough to inform and 10 WF 10○, -1.078 Chase 10 -1.106 Jumbo 30 Yr Fixed ○, 4 3Mortg 3 10○,-1.250-1.293 3 3 3 3 WAMU 3 3 ○, -1.500 2 1 Jumbo2 Yr Fixed 30 1 1 2 2 2 2 BOA ○, -1.023 WF ○, -1.078 H orizon ○, C iti ○ , -1.437 5 Conf 5/1 Arm 4 3 3 ○, 5 3 3 3 3 3 3 2 1 Conf 5/1 Arm 3 3 5 4 3 4 5 Horizon ○, -1.000 BOA ○, -1.023 Aurora -1.125 Vertice ○, -1.355 5 5 Wachovia ○, -0.984 Horizon ○, -1.000 Chase ○ , -1.066 Aurora ○, -1.125 Govt 3/1 Arm 4 3 3 ○, -1.059 3 3 3 3 3 ○, -1.059 3 2 1 Govt 3/1 Arm 3 5 4 4 2 2 4 and Simulation Chase ○, -0.836 Wacho ○, -0.984 Wacho Wachovi 0 0 0 0 Jumbo 5/1 Arm 4 3 2 2 2 2 2 2 2 2 1 Jumbo2 Arm 2 5/1 1 2 1 1 2 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 Detroit Fort Lauderdale Charlotte New Jer sey 20 Diff from 1st 20 Conf 30 Yr Fixed (0.180) 20 (0.140) 20 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 (0.140) (0.100) (0.060) (0.020) (0.068) (0.116) (0.164) Provid ○, -2.000 Provid 94% ○, -2.250 Provid 94% ○, -2.125 Provid 94% ○, -2.125 94% HFW ○ , -1.761 HFW ○, -1.941 Conf 15 Yr Fixed HFW (0.180) (0.140) (0.100) (0.060) (0.020) (0.068) (0.116) ○, -1.831 HFW ○, -1.851 (0.164) (0.212) (0.260) (0.308) (0.140) (0.100) (0.060) (0.020) (0.068) (0.116) (0.164) CW ○ , -1.625 15 TBW ○, -1.890 15 TBW ○, -1.665 15 CW ○ , -1.750 15 TBW ○ , -1.605 CW ○, -1.750 Govt 30 Yr Fixed ○, (0.180) (0.140) (0.100) (0.060) (0.020) ○(0.068) (0.116) Vertice -1.655 NatCity , -1.750 (0.164) (0.212) (0.260) (0.308) (0.140) (0.100) (0.060) (0.020) (0.068) (0.116) (0.164) ○ , -1.605 Citi ○, -1.687 US Bank ○ , -1.654 Vertice US Bank ○, -1.554 10 US Bank ○ , -1.654 10 Jumbo 30 Yr Fixed ○ , -1.625 CW (0.180) (0.140)10 (0.100) (0.060) (0.020) ○, -1.665 TBW US Bank (0.068) (0.116) ○, -1.579 10 (0.164) (0.212) (0.260) (0.308) (0.140) (0.100) (0.060) (0.020) (0.068) (0.116) (0.164) NatCity ○ , -1.5 Flag ○ , -1.623 Flag ○ , -1.523 Citi ○, -1.562 W AMU ○ , -1.500 5 Vertice ○, -1.605 5 W F Conf 5/1 Arm ○ , -1.519 (0.180) (0.140) 5 (0.100) (0.060) (0.020) -1.558 Flag ○ , (0.068) (0.116) 5 (0.164) (0.212) (0.260) (0.308) (0.140) (0.100) (0.060) (0.020) (0.068) (0.068) (0.068) validate decision-making Flag ○, -1.473 WF ○, -1.513 WAMU Govt 3/1 Arm○, -1.500 Vertice (0.180) (0.140) (0.100) (0.060) (0.020)-1.535 ○, -1.555 (0.068) (0.068) (0.068) (0.068) (0.068) (0.068) (0.140) (0.100) (0.060) (0.020) (0.068) (0.068) (0.068) WF ○, -1.459 WAMU ○, -1.500 HSBC ○, -1.400 WF ○, 0 0 Mortg IT Chase ○ , -1.321 HSBC ○, -1.488 Jumbo 5/1 Arm-1.389(0.180) (0.140) 0 (0.100) (0.060) (0.020)-1.521 ○, Chase ○, (0.068) (0.068)0 (0.068) (0.068) (0.068) (0.068) (0.140) (0.100) (0.060) (0.020) (0.068) (0.062) (0.055) -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 HSBC ○, -1.250 C hase ○, -1.456 C hase ○, -1.321 HSBC ○, -1.500 BOA ○, -1.223 Mortg IT ○ , -1.419 Citi ○, -1.312 W AMU ○, -1.500 Citi ○, -1.187 NatCity ○ , -1.375 Horizon ○, -1.250 Horizon ○, -1.250 Aurora ○, -1.125 Horizon ○, -1.250 Diff from 3rd Conf 30 Yr Fixed BOA ○, -1.223 (0.040) (0.030) 0.032 BOA 0.032 0.032 ○, -1.223 0.032 0.032 0.032 0.032 0.041 0.065 0.065 0.065 0.065 0.065 0.065 0.065 0.065 ○, -1.093 Provid BOA ○, -1.223 -2.000 ○, Provid Aurora ○ , -1.125 ○ , -2.250 Provid Aurora ○, -1.125, -2.125 ○ Provid Mortg IT W achovia ○, -1.009 HFW achovia W ○,○, -1.761 -1.209 Conf 15 Yr Fixed, -1.941 HFW W achovia ○, -1.059 ○ (0.151) (0.110) (0.096) (0.096) -1.034 HFW Wachovia (0.096) (0.096) (0.096) ○, ○ , -1.831 HFW (0.096) (0.096) ○, -1.851-2.125 ○, (0.040) 0.057 0.057 0.057 0.057 0.057 0.057 0.057 0.057 ○○,-1.125 , -1.625 TBW Horizon CW Aurora TBW ○, -1.605 CW Govt 30 Yr Fixed-1.890(0.262) (0.190) (0.223) IT (0.223) , -1.655 NatCity ○, ○ , -1.750 TBW Vertice Mortg ○, -1.665 ○ (0.223) (0.223) (0.223) CW NatCity (0.223) ○, -1.750 (0.223) ○, (0.121) 0.048 -1.750 0.048 0.048 0.048 0.048 0.048 0.048 0.048 ○, -1.605 Citi ○, -1.687 US Bank ○, -1.654 TBW Vertice US Bank ○ , -1.554 US Bank Jumbo 30 Yr ○, -1.654 Fixed (0.373) (0.270) (0.350) (0.350) -1.625 CW ○, (0.350) (0.350) (0.350) US Bank (0.350) (0.350), -1.665 ○ (0.202) 0.040 ○, -1.579 0.040 0.040 0.040 0.040 0.040 0.040 0.040 NatCity ○, -1.5 Flag ○, -1.623 Flag ○ , -1.523 C iti ○, -1.562 WAMU ○, -1.500 Vertice Conf 5/1 -1.605 ○, Arm (0.484) (0.350) (0.478) (0.478) (0.478) (0.478) (0.478) WF ○, -1.519 Flag (0.478) (0.478) (0.283) 0.031 ○, -1.558 0.031 0.031 0.031 0.031 0.031 0.031 0.031 Flag ○, -1.473 WF Govt 3/1 Arm ○, -1.513 (0.595) (0.430) (0.605) (0.605) (0.605) (0.605) (0.605) WAMU ○, -1.500 Vertice (0.605) (0.605) (0.364) 0.022 ○ , -1.555 0.022 0.022 0.022 0.022 0.022 0.022 0.022 WF ○ , -1.459 WAMU ○, -1.500 HSBC ○, -1.400 WF ○, -1.535 Chase ○, -1.321 H SBC Jumbo ○ , -1.488 5/1 Arm (0.151) (0.110) IT (0.096) (0.096) (0.096) (0.096) (0.096) Mortg ○, -1.389 Chase (0.096) (0.096) (0.040) 0.057 ○, -1.521 0.057 0.057 0.057 0.057 0.057 0.057 0.057 HSBC ○, -1.250 Chase ○, -1.456 Chase ○ , -1.321 HSBC ○ , -1.500 BOA ○, -1.223 Mortg IT ○, -1.419 Citi ○, -1.312 WAMU ○ , -1.500 Citi ○ , -1.187 NatCity ○, -1.375 Horizon ○, -1.250 H orizon ○, -1.250 Aurora ○ , -1.125 Price Horizon Conf ○, -1.250 Fixed 30 Yr (1.011) (1.012) (1.095) ○, -1.223 BOA (1.095) (1.095) (1.095) (1.095) BOA (1.095) ○,(1.095) -1.223 (1.122) (1.212) (1.212) (1.212) (1.212) (1.212) (1.212) (1.012) (1.212) ○ , -1.093 BOA ○, -1.223 Mortg IT Wachovia ○, -1.009 Wachovia Conf○15 Yr Fixed , -1.209 (1.011) (1.012) (1.095)○,○,-1.059 Aurora Wachovia -1.125 (1.095) (1.095) (1.095) (1.095) Aurora Wachovia (1.095)○, -1.125 (1.095) ○ , -1.034 (1.122) (1.212) (1.112) (1.105) (1.012) (1.212) (1.212) (1.213) (1.212) Horizon Aurora Govt -1.125 Fixed ○, 30 Yr (1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) NatCity Mortg IT (1.095) (1.095) (1.122) (1.212) (1.012) (0.998) (0.812) (1.212) (1.212) (1.414) (1.212) Jumbo 30 Yr Fixed (1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.122) (1.212) (0.912) (0.891) (0.612) (1.212) (1.212) (1.615) (1.212) Conf 5/1 Arm (1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.122) (1.212) (0.812) (0.784) (0.412) (1.212) (1.212) (1.816) (1.212) Govt 3/1 Arm (1.011) (1.012) (1.075) (1.075) (1.075) (1.075) (1.075) (1.075) (1.075) (1.120) (1.212) (0.712) (0.677) (0.212) (1.212) (1.212) (2.017) (1.212) Jumbo 5/1 Arm (1.011) (1.012) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.095) (1.122) (1.212) (1.212) (1.212) (1.212) (1.212) (1.212) (1.212) (1.212) Conforming comparison Diff from best 0.000 - 0.125 -0.250 -0.375 -0.500 Difference from the best Rank 1.000 2.000 3.000 4.000 5.000 Date 02/20/2008 CM Chase Manhattan Branch 8101 CT Ci ti Ammortization Fixed CW Countrywide Occupancy OO I Interfirst IO N TB TB W Di ff fro m b est 0. 000 -0.125 -0.250 -0. 375 -0.500 Loan amount Conforming comparison 200,000 WM WAMU Rank 1. 000 2.000 3.000 4. 000 5.000 Escrow (All) Difference f rom th e best WF Wel ls Fargo CM Chase Manhat tan Rate 6.125% Branch 810 1 CT Cit i Purpose (All) FICO 700 CW Countrywide LTV Price difference 80% Rank Best competitor Price Volume I Interfirst Avg. from best Ammortization Fixe d LTV LTV LTV LTV LTV TB TBW Occu pancy OO WM WAMU 95.01-100 95.01-100 95.01-100 95.01-100 95.01-100 IO N WF Wel ls Fargo 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 Loan a moun t 200 ,0 00 <=55 <=55 <=55 <=55 <=55 Escrow (All) Conforming comparison Diff from best 0.000 - 0.125 -0.250 -0.375 -0.500 Credit score Rate 6.125 % Difference from the best Rank 1.000 2.000 3.000 4.000 5.000 <560 -0.35 Purpose-0.33 -0.27 (All) -0.31 -0.13 -0.26 -0.29 -0.40 -0.52 - 0.48 4 4 3 3 2 3 3 4 4 3 CM CM CM T T T T T T T -0.475 -0.475 -0.475 -0.225 0.025 0.275 0.525 0.775 1.025 1.275 0.25% 0.32% 0.51% 0.70% 1.19% 0.64% 0.92% 0.20% 0.32% 0.88% 560-580 -0.26 -0.23 -0.14 -0.09 -0.06 -0.35 -0.30 -0.29 -0.55 Price difference 4 - 0.51 5 4 4 3 4 3 4 4 3 CM CM CM T T R ank T T T T T -0.605 -0.605 -0.605 -0.355 -0.105 0.145 0.395 Be st compe titor 0.645 0.895 1.145 0.12% 0.11% 0.21% 0.33% 0.55% 0.46% 0.67% 0.22% Price 0.23% 0.52% Date 02/20/2008 CM Chase Manhattan Date Date Date Date 580-600 -0.08 from best -0.06 0.00 Avg. -0.01 -0.12 -0.06 -0.35 -0.39 -0.48 - 0.54 4 4 4 1 3 3 2 3 2 3 CM CM CM HF T T T T T T -0.735 -0.735 -0.735 -0.485 -0.235 0.015 0.265 0.515 0.765 1.015 0.20% 0.25% 0.41% 0.62% 0.95% 0.80% 1.07% 0.55% 0.54% 0.67% Branch 8101 CT Ci ti Wholesale 600-620 -0.12 -0.10 -0.14 -0.03 0.00 -0.12 -0.68 -0.37 -0.49 - 0.54 Ammortization Fixed 4 4 2 2 1 2 2 2 2 3 CM CM CM I HF I I I I T -0.865 -0.865 -0.865 -0.615 -0.365 -0.115 0.135 0.385 0.635 0.885 0.19% 0.25% 0.38% 0.77% 1.14% 0.95% 1.28% 0.63% 0.82% 0.77% 01/23/2008 01/24/2008 01/25/2008 01/29/2008 01/30/2008 01/31/2008 02/04/2008 02/05/2008 02/06/2008 02/07/2008 02/08/2008 02/11/2008 02/12/2008 02/13/2008 02/14/2008 02/15/2008 02/20/2008 01/23/2008 01/24/2008 01/25/2008 01/29/2008 01/30/2008 01/31/2008 02/04/2008 02/05/2008 02/06/2008 02/07/2008 02/08/2008 02/11/2008 02/12/2008 02/13/2008 02/14/2008 02/15/2008 02/20/2008 01/23/2008 01/24/2008 01/25/2008 01/29/2008 01/30/2008 01/31/2008 02/04/2008 02/05/2008 02/06/2008 02/07/2008 02/08/2008 02/11/2008 02/12/2008 02/13/2008 02/14/2008 02/15/2008 02/20/2008 01/23/2008 01/24/2008 01/25/2008 01/29/2008 01/30/2008 01/31/2008 02/04/2008 02/05/2008 02/06/2008 02/07/2008 02/08/2008 02/11/2008 02/12/2008 02/13/2008 02/14/2008 02/15/2008 02/20/2008 CW Countrywide 620-640 -0.23 -0.26 -0.18 -0.08 -0.11 -0.14 -0.37 -0.41 -0.49 - 0.81 Occupancy OO 4 4 2 2 2 2 2 2 2 3 CM CM CM I I I I I I T -0.995 -0.995 -0.995 -0.745 -0.495 -0.245 0.005 0.255 0.505 0.755 0.18% 0.24% 0.39% 0.62% 1.11% 1.20% 1.68% 0.80% 0.94% 0.85% I Interfirst 640-660 -0.24 -0.50 -0.20 -0.01 -0.01 -0.06 -0.36 -0.46 -0.45 - 0.25 4 3 3 3 2 2 2 2 2 3 I I CM I I I I I I T -1.125 -1.125 -1.125 -0.875 -0.625 -0.375 -0.125 0.125 0.375 0.625 0.19% 0.30% 0.45% 0.74% 1.13% 3.32% 2.15% 0.71% 1.03% 0.73% In-Depth Analytics* Rate IO N TB TB W 660-680 -0.26 -0.20 7.2 50 -0.77 -0.02 -0.42 -0.39 -0.39 -0.49 - 0.25 -0.29 3 3 3 3 2 2 1 2 3 3 I I CM CM CM I I I I T -1.255 -1.255 -1.255 -1.005 -0.755 -0.505 -0.255 -0.005 0.245 0.495 0.26% 0.33% 0.47% 0.83% 1.21% 1.61% 2.35% 0.77% 0.91% 0.65% WM WAMU Loan amount 200,000 Reports allowing to drill down -0. 32 -0.38 3 1 4 -1.775 -1.775 680-700 -0.21 -0.20 7.1 25 -0.55 -0.73 -0.51 -0.78 -0.47 -0.46 - 0.25 -0.20 3 3 3 3 2 1 2 2 3 3 CM CM CM CM CM I I I I T CM -1.385 -1.385 -1.385 -1.135 -0.885 -0.635 -0.385 -0.135 0.115 CM 0.365 0.37% 0.53% 0.51% 0.69% 0.99% 1.88% 2.26% 0.57% 0.89% 0.55% Escrow (All) WF Wel ls Fargo 7.0 00 -0.28 -0. 25 -0.42 -0.26 3 2 4 3 CM CM CM CM -1. 775 -1.645 -1. 775 -1.645 700-720 -0.39 -0.23 -0.26 -0.41 -0.51 -0.47 -0.50 -0.45 -0.25 - 0.25 3 3 3 3 2 2 2 2 3 3 CM CM I I I WF WF WF W F W F -1.515 -1.515 -1.515 -1.265 -1.015 -0.765 -0.515 -0.265 -0.015 0.235 0.44% 0.56% 0.75% 1.03% 1.33% 2.25% 3.32% 0.56% 0.96% 0.64% Wholesale 6.8 75 Rate 6.125% -0. 48 -0. 40 -0.48 -0. 39 -0.51 -0.41 4 4 4 4 5 4 CM CM CM CM CM CM -1. 775 -1.775 -1. 645 -1.515 -1. 645 -1.515 720-740 -0.48 -0.24 -0.19 -0.41 -0.45 -0.45 -0.40 -0.41 -0.24 - 0.42 4 3 2 2 2 2 2 2 3 3 CM CM I I I WF WF WF W F W F -1.645 -1.645 -1.645 -1.395 -1.145 -0.895 -0.645 -0.395 -0.145 0.105 0.41% 0.53% 0.64% 0.91% 1.05% 1.96% 2.93% 0.45% 0.71% 0.51% 6.7 50 Purpose (All) -0.14 -0. 35 -0.54 -0.48 -0. 45 -0. 51 -0.37 -0. 52 -0.37 -0.40 2 3 5 4 4 5 3 5 3 4 CM CM CM CM CM CM CM CM CM CM -1.775 -1. 775 -1.775 -1.775 -1. 645 -1.645 -1. 515 -1.385 -1. 515 -1.385 >= 740 -0.51 -0.48 6.6 25 -0.50 -0.51 -1.73 -1.76 -1.73 -0.30 --0.37 -0.364 -0. 473 -0.392 -0. 40 -0. 52 -0.48 -0. 44 -0.48 -0.36 -0.73 -0.11 -0.01 -0. 25 0.29 2 2 2 2 2 3 4 CM CM WF 2 W3 1 1 F 3 WF 4 WF 4WF 5 WF4 W F W4 4 4 F 3 -1.775 -1.775 -1.775 -1.525 M-1.275 T -1.025 CM C M -0.525 M -0.275 CM CM CM CM C CM CM -0.775 CM C CM -0.025 0.48% 0.57% 0.74% 1.05% 1.16% -1. 645 -1.645 -1.775 -1. 7750.60% -1. 515 -1.515 -1. 385 -1.255 -1. 385 -1.255 -1. 775 -1.645 1.63% 2.81% 0.34% -1.645 0.42% Price difference Rank Best competitor Price Volume 6.5 00 Max -0.21 -0.Mi n -0.05 -0.48Avg. --0.50 -0.47 -0. 36 -0.43 -0. 41 -0.Max-0.48 -0. 46n -0.42 -0.37 0.00 56 -1.76 -0. 36 0.39 45 5 Mi 1 Avg. 2 2 5 1 4 3 5 4 3 4 4 4 4 4 CM4 3 T CM CM CM CM CM T CM CM CM CM CM CM -0.384 CM CM -1. 775 -1.775 -1. 645 -1.515 -1. 515 -1.515 -1.645 -1. 645 -1.515 -1. 385 -1.385 -1. 255 -1.125 -1. 255 -1.125 Avg. from best LTV LTV LTV LTV LTV 6.3 75 -0.21 -0. 25 -0.16 -0. 36 -0.65 -0.40 -0. 60 -0.39 -0.54 -0. 48 -0.39 -0. 43 -0. 38 -0.40 -0. 51 -0.43 -0.43 2 2 2 3 5 4 5 4 5 4 4 4 4 4 5 4 4 CM T T CM CM CM CM CM T CM CM CM WF CM CM CM CM -1. 775 -1.775 -1. 645 -1.645 -1. 515 -1.385 -1. 385 -1.385 -1.515 -1. 515 -1.385 -1. 255 -1.255 -1. 125 -0.995 -1. 125 -0.995 <560 -0.50 -0.50 6.2 50 -0.25 -0.13 -0.25 -0. 46 -0.47 -0.45 -0. 51 --0.45 -0.384 -0. 39 4 -0.443 -0. 45 -0. 45 -0.47 -0. 42 -0.43 -0.47 -0.25 -0.38 -0. 23 -0.14 -0.25 -0.50 -0.50 0.51 3 2 3 3 4 4 2 CM 4 4 CM CM 5 TB 4 TB TB 4 TB 4 TB 4 TB4 TB 4 -1.172 -1.172 -1.172 -0.922 M-0.672HF-0.422 CM C M -0.172 0.078 M 0.328 0.578 -1. 645 -1.645 -1. 515 -1.515 -1. 385 1.19% -1. 255 -1.255 -1.385 -1. 3850.32% -1. 125 -1.125 -0. 995 -0.865 -0. 995 -0.865 0.25% 0.32% 0.51% 0.70% -1.255 0.64% 0.92% 0.20% 0.88% 95.01-100 95.01-100 95.01-100 95.01-100 95.01-100 4 2 4 4 4 4 4 CM T T CM CM CM C CM CM CM C CM CM CM -1.255 560-580 -0.13 -0.13 6.1 25 -0.13 -0.13 -0.50 -0. 46 -0.40 -0.43 -0. 51 --0.50 -0.422 -0. 42 2 -0.382 -0. 44 -0. 44 -0.51 -0. 50 -0.39 -0.51 -0.13 -0.46 -0. 24 -0.13 -0.25 -0.25 -0.51 0.25 2 2 4 3 3 3 2 CM 4 4 CM CM 5 TB 4 TB TB 4 TB 4 TB 5 TB5 TB 5 -1.234 -1.234 -1.234 -0.984 M-0.734 I -0.484 CM C M -0.234 0.016 M 0.266 0.516 -1. 515 -1.515 -1. 385 -1.385 -1. 255 0.55% -1. 125 -1.125 -1.255 -1. 2550.24% -0. 995 -0.995 -0. 865 -0.735 -0. 865 -0.735 0.12% 0.11% 0.21% 0.33% -1.125 0.46% 0.67% 0.22% 0.39% 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 55.1-50 60.1-65 65.1-70 70.1-75 75.1-80 80.1-85 85.1-90 90.1-95 4 2 4 5 4 4 4 CM HF HF CM CM CM C I CM CM C I CM I -1.125 Correspondent <=55 <=55 <=55 <=55 <=55 580-600 -0.13 -0.13 6.0 00 -0.13 -0.13 -0.25 -0. 36 -0.46 -0.42 -0. 43 --0.37 -0.502 -0. 43 2 -0.422 -0. 44 -0. 48 -0.40 -0. 50 -0.49 -0.48 -0.13 -0.38 0. 76 -0.23 -0.25 -0.25 -0.25 0.25 2 2 3 3 3 3 3 1 CM 3 4 4 2 CM CM 4HFW 4 TB 4 3 4 4 TB 4 TB 4 TB 4 TB5 TB 4 4 -1.297 -1.297 CM I I -1.297 -1.047 M-0.797 I -0.547 CM C M -0.047I 0.203 CM CM CM C I CM -0.297 CM I I 0.453 I -1. 385 -1.385 -1. 255 -1.255 -1. 125 2.35% -0. 995 -0.995 -1.125 -1. 1250.30% -0. 865 -0.865 -0. 735 -0.605 -0. 735 -0.605 0.20% 2.25% 1.47% 1.61% -0.995 0.80% 0.94% 0.85% -0.995 0.45% 5.8 75 -0.43 1. 76 Credit score -0.29 -0. 40 -0.39 -0.38 -0. 47 -0.42 -0.50 -0. 51 -0.38 -0. 49 -0. 44 -0.41 -0. 47 -0.46 -0.45 4 1 3 4 4 4 4 4 4 5 4 4 4 4 4 4 4 CM I I CM CM CM CM CM CM CM CM I I I WF I WF -1. 255 -1.255 -1. 125 -1.125 -0. 995 -0.865 -0. 865 -0.865 -0.995 -0. 995 -0.865 -0. 735 -0.735 -0. 605 -0.475 -0. 605 -0.475 600-620 -0.50 -0.25 -0.13 -0.13 -0.13 -0.13 -0.25 -0.25 -0.25 - 0.25 4 3 2 2 2 2 3 3 3 3 CM CM CM I HFW I I I I TB -1.359 -1.359 -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 0.391 0.19% 1.96% 2.93% 1.88% 2.26% 0.95% 1.03% 0.24% 0.24% 0.39% 5.7 50 -0.36 2. 76 -0.23 -0. 47 -0.48 -0.43 -0. 39 -0.45 -0.46 -0. 43 -0.39 -0. 47 -0. 48 -0.13 -0.26 -0.37 -0.35 -0.33 -0.27 -0.31 -0.36 -0.29 -0.40 3-0.52 2 0.48 4 1 - 4 4 4 4 4 3 4 3 4 2 4 3 4 33 4 4 4 34 3 I CM CM CM CM T I CM CM I I TCM CM CMT I T I T T I T F -0.475 -0.475 -1. 125 -1.125 -0. 995 -0.995 0.275 -0.735 -0. 735 -0.735 -0.8651.275 -0.250 -0. 605 -0.605 -0. 475 0.70% -0. 475 0.64% 0.92% 0.20% W WF -0.475 -0.225 0.025 -0. 865 0.525 0.775 1.025 -0. 865 0.25% 0.32% 0.51% -0.345 1.19% 0.32% 0.88% 620-640 -0.50 <560 -0.25 -0.13 -0.13 0.00 -0.13 -0.25 -0.50 -0.25 - 0.25 4 3 2 2 1 2 3 4 3 3 CM CM CM I I I I I I TB -1.422 -1.422 -1.422 -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.18% 0.24% 1.33% 2.25% 3.32% 1.20% 0.91% 0.30% 0.24% 0.39% 5.6 25 -0.39 3. 76 -0.22 -0. 47 -0.47 -0.45 -0. 51 -0.37 -0.37 -0. 41 -0.50 -0. 51 -0. 39 -0.49 4 1 2 4 4 4 5 3 3 4 5 5 4 4 I C M CM CM I I I CM I I I WF WF WF -0. 995 -0.995 -0. 865 -0.865 -0. 735 -0.605 -0. 605 -0.605 -0.735 -0. 735 0.120 -0. 475 -0.475 -0. 345 560-580 -0.26 -0.23 -0.14 -0.09 -0.06 -0.35 -0.30 -0.29 -0.55 - 0.51 5 4 4 4 3 4 3 4 4 3 CM CM CM T T T T T T T -0.605 -0.605 -0.605 -0.355 -0.105 0.145 0.395 0.645 0.895 1.145 0.12% 0.11% 0.21% 0.33% 0.55% 0.46% 0.67% 0.22% 0.23% 0.52% 640-660 -0.50 -0.25 5.5 00 0.00 -0.13 -0.21 -0. 40 -0.42 -0.46 -0. 42 --0.49 -0.454 -0. 503 -0.462 -0. 37 -0. 42 -0.13 -0.44 4. 76 -0.13 -0.25 -0.50 -0.50 0.50 1 2 2 3 3 4 4 1 2 4I 4 4 I CM 4 I4 4 I 5 4 I 3 I 4 I 4 I TB -1.484 -1.484 -1.484I -1.234 F-0.984 I -0.734 WF W F -0.234 0.016 0.266 CM C M I I WF W CM I -0.484 WF -0. 865 -0.865 -0. 735 -0.735 -0. 605 2.93% -0. 475 -0.475 -0.605 -0. 6050.30% -0. 345 -0.345 0.19% 0.30% 1.05% 1.96% -0.475 1.47% 2.15% 0.71% 0.240 0.45% 660-680 -0.25 580-600 -0.08 -0.01 -0.06 0.00 2-0.12 -0.06 -0.35 4 -0.25 5.3 75 -0.25 -0.13 -0.25 -0. 45 -0.39 -0.43 -0. 47 --0.42 -0.363 -0. 47 3 -0.493 -0.25 -0.40 5. 76 -0.15 -0.25 -0.25 -0.50 0.50 3 3 3 3 -0.39 4 -0.48 I- 0.54 I 4 4 1 2 4 CM 4 4 4 4 CM1 4 I 3 I 3 I 2 I 3 TB 4 4 CM 3 4 2 -1.547 CM CM I CM -1.297 F-1.047 T WFT WF T 3 CM -1.547 -1.547 I I HF WF WF W T CM T T I -0.797 -0.547 -0.297 -0.047 -0.7350.203 -0.735 -0. 735 -0.735 -0. 605 -0.550 0.015 0.51% -0. 345 -0.345 -0.4751.015 0.24% -0.735 -0.485 -0.235 -0. 475 0.265 0.515 0.765 0.26% 0.33% 0.37% 0.53% -0.345 0.69% 2.35% 0.77%475 0.387 -0. 0.20% 0.39% 0.41% 0.62% 0.95% 0.80% 1.07% 0.55% 0.25% 0.54% 0.67% Wholesale 680-700 -0.25 600-620 6. 76 -0.11 -0.25 -0.25 -0.50 - 0.50 -0.51 3 -0. 47 4 -0.14 -0.03 3 0.003 -0.12 -0.68 4 -0.50 5.2 50 -0.25 -0.25 -0.25 -0. 44 -0.47 -0.50 -0.40 -0.12 -0.10 4 3 3 3 -0.37 4 -0.49CM 4 4 4 1 1 0.54 - CM CM 4 4 CM 2 CM2 I 1 I 2 I 2 I 2 TB 5 4 2 -1.609 CM CM WF WF -1.359 -1.109 II-0.859 -0.609 I -0.359 -0.109 0.141 3 CM -1.609 -1.609 I I CM I HF WF I I T -0.865 -0.865 -0. 605 -0.605 -0. 475 -0.250 -0.115 0.75% 1.03% 2.26% 0.57%3450.30% -0.865 -0.615 -0.365 -0. 345 0.135 0.385 0.635 0.885 0.37% 0.53% 0.44% 0.56% -0.345 -0. 0.19% 0.45% 0.38% 0.77% 1.14% 0.95% 1.28% 0.63% 0.25% 0.82% 0.77% to every region, product and 700-720 -0.25 -0.39 620-640 7. 76 -0.11 -0. 42 -0.25 5.1 25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 -0.50 -0.23 3 -0.26 -0.18 -0.08 3-0.11 -0.14 -0.37 -0.41 4 -0.49CM CM 3 4 3 3 3 3 4 4 1 1 0.81 - 4 4 I 4 I 2 I 2 WF WF WF W F W F 2 2 2 2 2 -1.650 CM CM WF I I I T -0.995 -0.995 -0. 250 -0.475 -0. 345 0.1250.33% 0.37% 0.33% 0.37% 0.56% 0.96% 3 CM -1.650 -1.650 -1.400 -1.150 I-0.900 -0.650 I -0.400 -0.150 0.100 CM I I I 0.44% 0.56% 0.75% -0.245 0.005 0.255 0.505 0.755 -0.995 -0.745 -0.495 0.18% 0.64% 0.39% 0.62% 1.11% 1.20% 1.68% 0.80% 0.24% 0.94% 0.85% 5.0 00 -0.44 -0. 43 640-660 -0.24 4 4 -1.125 -1.125 0. 120 -0.345 720-740 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 -0.50 -0.20 -0.01 4-0.01 -0.06 -0.36 -0.46 4 -0.45CM CM 4 4 4 4 4 4 4 - 0.25 4 I 3 I 3 I 3 WF WF WF W F W F 2 2 2 2 2 -1.778 -1.778 I -1.778 -1.528 -1.278 I-1.028 -0.778 I -0.528 -0.278 -0.028 3 CM II CM I I I I T -1.125 -0.875 -0.625 -0.375 -0.125 0.125 0.375 0.625 0.41% 0.53% 0.64% 0.53% 0.44% 0.53% 0.44% 0.45% 0.71% 0.19% 0.51% 0.45% 0.74% 1.13% 3.32% 2.15% 0.71% 0.30% 1.03% 0.73% Max 7. 76 Min -0. 65 Max 5.00 Mi n 1. 00 Max 0.00 Min 0. 00 Max 0. 39 Min -1. 78 >= 740 -0.50 660-680 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 -0.26 4 -0.20 -0.29 -0.77 -0.02 -0.42 -0.39 -0.39 -0.49 - 0.25 4 4 4 4 4 4 4 4 4 CM CM 3 3 WF W F 3 3 2 2 WF WF WF WF W F W F 1 2 3 3 I I CM CM CM I I I I T -1.255 -1.255 -1.255 -1.005 -0.755 -0.505 -0.255 -0.005 0.245 0.495 -1.775 -1.775 -1.775 -1.525 -1.275 -1.025 -0.775 -0.525 -0.275 -0.025 0.48% 0.57% 0.74% 0.56% 0.75% 0.56% 0.75% 0.34% 0.60% 0.26% 0.33% 0.47% 0.83% 1.21% 1.61% 2.35% 0.77% 0.42% 0.91% 0.65% Max 680-700 n -0.51 Avg. - 0.21 0.00 Mi -0.21 -0.20 -0.20 -0.55 -0.73 -0.51 -0.78Avg. 2 -0.46 - 0.25 Max 4 Mi n 1 -0.47 3 3 3 3 2 1 2 2 CM3 3 CM CM CM CM CM I I I I T -1.385 -1.385 -1.385 -1.135 -0.885 -0.635 -0.385 -0.135 0.115 0.365 -0.713 0.37% 0.53% 0.51% 0.69% 0.99% 1.88% 2.26% 0.57% 0.89% 0.55% -0.39 700-720 -0.23 -0.26 -0.41 -0.51 -0.47 -0.50 -0.45 -0.25 - 0.25 3 3 3 3 2 2 2 2 3 3 CM CM I I I WF WF WF W F W F -1.515 -1.515 -1.515 -1.265 -1.015 -0.765 -0.515 -0.265 -0.015 0.235 0.44% 0.56% 0.75% 1.03% 1.33% 2.25% 3.32% 0.56% 0.96% 0.64% <560 -0.50 -0.50 -0.25 -0.25 -0.13 -0.25 -0.25 -0.50 -0.50 - 0.51 -0.48 4 4 3 3 2 3 3 4 4 CM CM -0.24 -0.19 -0.41 -0.45 -0.45 -0.40 -0.41 -0.24 - 0.42 CM 4 3 TB 2 TB 2 TB TB TB TB TB 2 2 2 2 3 -1.172 -1.172 -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.578 3 CM CM I I I WF WF WF W F W F 0.25% 0.32% 0.51% 0.70% 1.19% 0.64% 0.92% 0.20% 0.32% -1.645 -1.645 -1.645 -1.395 -1.145 -0.895 -0.645 -0.395 -0.145 0.105 0.88% 0.41% 0.53% 0.64% 0.91% 1.05% 1.96% 2.93% 0.45% 0.71% 0.51% 720-740 560-580 -0.13 -0.13 -0.13 -0.13 -0.13 -0.50 -0.25 -0.25 -0.51 - 0.25 -0.51 2 2 2 2 2 4 3 3 3 CM CM -0.48 -0.73 -0.50 -0.51 -1.73 -1.76 -1.73 -0.30 - 0.29 CM 4 3 TB 2 TB 2 TB TB TB TB TB 2 2 2 2 3 -1.234 -1.234 -1.234 -0.984 -0.734 -0.484 -0.234 0.016 0.266 0.516 4 CM CM WF W F WF WF WF WF W F W F 0.12% 0.11% 0.21% 0.33% 0.55% 0.46% 0.67% 0.22% 0.24% -1.775 -1.775 -1.775 -1.525 -1.275 -1.025 -0.775 -0.525 -0.275 -0.025 0.39% 0.48% 0.57% 0.74% 1.05% 1.16% 1.63% 2.81% 0.34% 0.60% 0.42% >= 740 580-600 -0.13 -0.13 -0.13 -0.13 -0.13 -0.25 -0.25 -0.25 -0.25 - 0.25 2 2 2 2 2 Max3 0.00 Mi n 3 3 3 -1.76 3 Avg. CM CM - 0.39 CM HFW TB TB TB TB n TB TB Max 5 Mi 1 Avg. -1.297 -1.297 -1.297 -1.047 -0.797 -0.547 -0.297 -0.047 0.203 0.453 2 CM 0.20% 2.25% 1.47% 1.61% 2.35% 0.80% 0.94% 0.85% 0.30% -0.384 0.45% 600-620 -0.50 -0.25 -0.13 -0.13 -0.13 -0.13 -0.25 -0.25 -0.25 - 0.25 4 3 2 2 2 2 3 3 3 3 CM CM CM I HFW I I I I TB -1.359 -1.359 -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 0.391 0.19% 1.96% 2.93% 1.88% 2.26% 0.95% 1.03% 0.24% 0.24% 0.39% Retail -0.50 -0.25 -0.13 -0.13 <560 -0.50 0.00 -0.13 -0.25 -0.50 -0.25 - 0.25 4 -0.50 -0.25 -0.25 1-0.13 -0.25 -0.25 -0.50 3 -0.50CM CM 3 2 2 2 3 4 3 - 0.51 4 CM 4 I 3 I 3 I 2 I 3 I 3 I 4 TB 4 -1.422 CM CM CM -1.172 -0.922 TB TB -0.422TB TB 0.078 0.328 -1.422 -1.422 TB TB -0.672 TB -0.172 -1.172 -1.172 0.18% 0.24% 1.33% 2.25% 3.32% 1.20% 0.91% 0.30% 0.24% -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.578 0.25% 0.39% 0.51% 0.70% 1.19% 0.64% 0.92% 0.20% 0.32% 0.32% 0.88% 620-640 -0.50 -0.25 -0.13 0.00 560-580 -0.13 -0.13 -0.13 -0.25 -0.50 -0.50 - 0.50 4 -0.13 -0.13 -0.13 2-0.13 -0.50 -0.25 -0.25 4 -0.51 I- 0.25 I 3 2 1 2 3 3 4 2 CM 2 I 2 I 2 I 2 I 4 I 3 I 3 TB -1.484 CM CM CM -1.234 -0.984 TB TB -0.484TB TB 0.016 0.266 3 -1.484 -1.484 TB TB -0.734 TB -0.234 -1.234 -1.234 0.19% 0.30% 1.05% 1.96% 2.93% 1.47% 2.15% 0.71% 0.30% -1.234 -0.984 -0.734 -0.484 -0.234 0.016 0.266 0.516 0.12% 0.45% 0.21% 0.33% 0.55% 0.46% 0.67% 0.22% 0.11% 0.24% 0.39% 640-660 Correspondent 660-680 -0.25 580-600 -0.13 -0.25 -0.25 -0.25 -0.13 -0.25 -0.25 -0.25 -0.50 - 0.50 3 -0.13 -0.13 -0.13 2-0.13 -0.25 -0.25 -0.25 4 -0.25 I- 0.25 I 3 3 3 3 3 3 4 2 CM 2 CM 2 CM2 I 2 I 3 I 3 I 3 TB3 -1.547 CM CM CM HFW -1.047 TB TB -0.547TB TB -0.047 0.203 3 -1.547 -1.547 -1.297 TB -0.797 TB -0.297 -1.297 -1.297 0.26% 0.33% 0.37% 0.53% 0.51% 0.69% 2.35% 0.77% 0.24% -1.297 -1.047 -0.797 -0.547 -0.297 -0.047 0.203 0.453 0.20% 0.39% 1.47% 1.61% 2.35% 0.80% 0.94% 0.85% 2.25% 0.30% 0.45% 680-700 -0.25 600-620 -0.50 -0.50 -0.50 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 3 -0.25 -0.13 -0.13 3-0.13 -0.13 -0.25 -0.25 4 -0.25CM CM 4 4 3 3 3 3 4 - 0.25 4 CM 3 CM 2 CM2 I 2 I 2 I 3 I 3 TB3 -1.609 CM CM CM -1.359 HFW 3 -1.609 -1.609 I -1.109 I-0.859 -0.609 I -0.359 -0.109 0.141 I I TB -1.359 -1.359 0.37% 0.53% 0.44% 0.56% 0.75% 1.03% 2.26% 0.57% 0.30% -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 0.391 0.19% 0.45% 2.93% 1.88% 2.26% 0.95% 1.03% 0.24% 1.96% 0.24% 0.39% criteria combination over time 700-720 -0.25 620-640 -0.50 -0.25 -0.50 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 3 -0.25 -0.13 -0.13 3 0.003 -0.13 -0.25 4 3 4 3 3 3 -0.50 4 -0.25CM CM - 0.25 4 I 3I 2 I 2 WF WF WF W F W F 1 2 3 4 3 -1.650 CM CM CM -1.400 -1.150 I-0.900 -0.650 I -0.400 -0.150 0.100 3 -1.650 -1.650 I I I I TB -1.422 -1.422 0.44% 0.56% 0.75% 0.33% 0.37% 0.33% 0.37% 0.56% 0.96% -1.422 -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.18% 0.64% 1.33% 2.25% 3.32% 1.20% 0.91% 0.30% 0.24% 0.24% 0.39% 720-740 -0.50 640-660 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 -0.25 -0.13 0.00 4-0.13 -0.13 -0.25 4 4 4 4 4 4 4 -0.50 4 -0.50CM CM - 0.50 4I 3I 2 I 1 WF WF WF W F W F 2 2 3 3 4 -1.778 -1.778 I -1.778 -1.528 -1.278 I-1.028 -0.778 I -0.528 -0.278 -0.028 4 I CM I I I I TB -1.484 -1.484 0.41% 0.53% 0.64% 0.53% 0.44% 0.53% 0.44% 0.45% 0.71% -1.484 -1.234 -0.984 -0.734 -0.484 -0.234 0.016 0.266 0.19% 0.51% 1.05% 1.96% 2.93% 1.47% 2.15% 0.71% 0.30% 0.30% 0.45% >= 740 -0.50 660-680 -0.25 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 -0.25 -0.25 -0.25 4-0.13 -0.25 -0.25 -0.25 4 -0.50CM CM 4 4 4 4 4 4 4 - 0.50 3 WF W F 3 WF 3 WF WF WF W F W F 3 2 3 3 3 4 -1.775 -1.775 I -1.775 -1.525 -1.275 I-1.025 -0.775 I -0.525 -0.275 -0.025 4 I CM CM CM I I TB -1.547 -1.547 0.48% 0.57% 0.74% 0.56% 0.75% 0.56% 0.75% 0.34% 0.60% -1.547 -1.297 -1.047 -0.797 -0.547 -0.297 -0.047 0.203 0.26% 0.42% 0.37% 0.53% 0.51% 0.69% 2.35% 0.77% 0.33% 0.24% 0.39% Max 680-700 n -0.51 Avg. - 0.21 0.00 Mi -0.25 -0.50 -0.50 -0.25 -0.25 -0.25 -0.25Avg. 2 -0.50 - 0.50 Max 4 Mi n 1 -0.25 3 4 4 3 3 3 3 3 CM4 4 CM CM CM CM CM I I I I TB -1.609 -1.609 -1.609 -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 -0.713 0.37% 0.53% 0.44% 0.56% 0.75% 1.03% 2.26% 0.57% 0.30% 0.45% 700-720 -0.25 -0.25 -0.50 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 3 3 4 3 3 3 3 3 4 4 CM CM I I I WF WF WF W F W F -1.650 -1.650 -1.650 -1.400 -1.150 -0.900 -0.650 -0.400 -0.150 0.100 0.44% 0.56% 0.75% 0.33% 0.37% 0.33% 0.37% 0.56% 0.96% 0.64% 720-740 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 4 4 4 4 4 4 4 4 4 CM CM I I I WF WF WF W F W F -1.778 -1.778 -1.778 -1.528 -1.278 -1.028 -0.778 -0.528 -0.278 -0.028 0.41% 0.53% 0.64% 0.53% 0.44% 0.53% 0.44% 0.45% 0.71% 0.51% >= 740 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 4 4 4 4 4 4 4 4 4 CM CM WF WF WF WF WF WF W F W F -1.775 -1.775 -1.775 -1.525 -1.275 -1.025 -0.775 -0.525 -0.275 -0.025 0.48% 0.57% 0.74% 0.56% 0.75% 0.56% 0.75% 0.34% 0.60% 0.42% Max 0.00 Mi n -0.51 Avg. - 0.21 Max 4 Mi n 1 Avg. 2 CM -0.713 <560 -0.50 -0.50 -0.25 -0.25 -0.13 -0.25 -0.25 -0.50 -0.50 - 0.51 4 4 3 3 2 3 3 4 4 CM CM CM TB TB TB TB TB TB TB -1.172 -1.172 -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.578 0.25% 0.32% 0.51% 0.70% 1.19% 0.64% 0.92% 0.20% 0.32% 0.88% 560-580 -0.13 -0.13 -0.13 -0.13 -0.13 -0.50 -0.25 -0.25 -0.51 - 0.25 2 2 2 2 2 4 3 3 3 CM CM CM TB TB TB TB TB TB TB -1.234 -1.234 -1.234 -0.984 -0.734 -0.484 -0.234 0.016 0.266 0.516 0.12% 0.11% 0.21% 0.33% 0.55% 0.46% 0.67% 0.22% 0.24% 0.39% 580-600 -0.13 -0.13 -0.13 -0.13 -0.13 -0.25 -0.25 -0.25 -0.25 - 0.25 2 2 2 2 2 3 3 3 3 3 CM CM CM HFW TB TB TB TB TB TB -1.297 -1.297 -1.297 -1.047 -0.797 -0.547 -0.297 -0.047 0.203 0.453 0.20% 2.25% 1.47% 1.61% 2.35% 0.80% 0.94% 0.85% 0.30% 0.45% 600-620 -0.50 -0.25 -0.13 -0.13 -0.13 -0.13 -0.25 -0.25 -0.25 - 0.25 4 3 2 2 2 2 3 3 3 3 CM CM CM I HFW I I I I TB -1.359 -1.359 -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 0.391 0.19% 1.96% 2.93% 1.88% 2.26% 0.95% 1.03% 0.24% 0.24% 0.39% Retail 620-640 -0.50 -0.25 -0.13 -0.13 0.00 -0.13 -0.25 -0.50 -0.25 - 0.25 4 3 2 2 1 2 3 4 3 3 CM CM CM I I I I I I TB -1.422 -1.422 -1.422 -1.172 -0.922 -0.672 -0.422 -0.172 0.078 0.328 0.18% 0.24% 1.33% 2.25% 3.32% 1.20% 0.91% 0.30% 0.24% 0.39% 640-660 -0.50 -0.25 -0.13 0.00 -0.13 -0.13 -0.25 -0.50 -0.50 - 0.50 4 3 2 1 2 2 3 3 4 4 I I CM I I I I I I TB -1.484 -1.484 -1.484 -1.234 -0.984 -0.734 -0.484 -0.234 0.016 0.266 0.19% 0.30% 1.05% 1.96% 2.93% 1.47% 2.15% 0.71% 0.30% 0.45% 660-680 -0.25 -0.25 -0.25 -0.25 -0.13 -0.25 -0.25 -0.25 -0.50 - 0.50 3 3 3 3 2 3 3 3 4 4 I I CM CM CM I I I I TB -1.547 -1.547 -1.547 -1.297 -1.047 -0.797 -0.547 -0.297 -0.047 0.203 0.26% 0.33% 0.37% 0.53% 0.51% 0.69% 2.35% 0.77% 0.24% 0.39% 680-700 -0.25 -0.50 -0.50 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 3 4 4 3 3 3 3 3 4 4 CM CM CM CM CM I I I I TB -1.609 -1.609 -1.609 -1.359 -1.109 -0.859 -0.609 -0.359 -0.109 0.141 0.37% 0.53% 0.44% 0.56% 0.75% 1.03% 2.26% 0.57% 0.30% 0.45% 700-720 -0.25 -0.25 -0.50 -0.25 -0.25 -0.25 -0.25 -0.25 -0.50 - 0.50 3 3 4 3 3 3 3 3 4 4 CM CM I I I WF WF WF W F W F -1.650 -1.650 -1.650 -1.400 -1.150 -0.900 -0.650 -0.400 -0.150 0.100 0.44% 0.56% 0.75% 0.33% 0.37% 0.33% 0.37% 0.56% 0.96% 0.64% 720-740 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 4 4 4 4 4 4 4 4 4 CM CM I I I WF WF WF W F W F -1.778 -1.778 -1.778 -1.528 -1.278 -1.028 -0.778 -0.528 -0.278 -0.028 0.41% 0.53% 0.64% 0.53% 0.44% 0.53% 0.44% 0.45% 0.71% 0.51% >= 740 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 -0.50 - 0.50 4 4 4 4 4 4 4 4 4 4 CM CM WF WF WF WF WF WF W F W F -1.775 -1.775 -1.775 -1.525 -1.275 -1.025 -0.775 -0.525 -0.275 -0.025 0.48% 0.57% 0.74% 0.56% 0.75% 0.56% 0.75% 0.34% 0.60% 0.42% Max 0.00 Mi n -0.51 Avg. - 0.21 Max 4 Mi n 1 Avg. 2 CM -0.713 * Leverage pivot structure to allow quick customization © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 12
  • 13.
    Bottom-Up Approach DNA CodesRoll Up From Individual Levels Up To The Overall Business DNA Codes Cascading DNA Codes Client Data Client Data Centralized Data Centralized Data Analytical Reporting Analytical Reporting Business DNA Codes Business DNA Codes BizCase Financial -- 40% F1 F2 F3 Objective Incre ase P rofita bil ity Opti mize Ma rket Pre sen ce Incre ase Busi ness Volu me Measure Net Income BizCa se Shar e of M arke t Tota l Sa le Volum e Weight 20% 10% 10% Target Met ric Actuals Operations Clien t C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% -- 25% C2 Pro vide ex cep tion al Customer Servi ce Clie nt Sat isfacti on Score 5% BizCase C3 Impr ove Cli ent Perfor mance Clie nt Ave rage Score 10% Objective Measure Weight Target Metric Actuals Intern al I1 I2 Reduce Cost to Produ ce Man age Sales Per fo rmance Cost P er Unit ( CPU) $/ uni ts p er Accoun t Executive 5% 5% Financial F1 Increase Profitability Net Income 20% -- 20% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th 5% -- 40% cumul ative " Good " rati ng F2 Optimize Market Presence BizCase Share of Market 10% Sales Resou rces R1 Reduce Tu rnove r % T urn over 5% -- 15% R2 Man age Vendo r perfor mance Ve ndor Performa nce Score 10% F3 Increase Business Volume Total Sale Volume 10% Client C1 Manage Price Competitiveness Competitive Score 10% -- 25% C2 Provide exceptional Customer Service Client Satisfaction Score 5% BizCase C3 Improve Client Performance Client Average Score 10% Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% -- 20% I2 Manage Sales Performance $/units per Account Executive 5% F3 Increase Business Volume Total Sale Volume 10% I3 Implement critical technology projects IT Score 5% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% BizCase cumulative "Good" rating Objective Measure Weight Target Met ric Actuals Financial F1 Incre ase P rofita bil ity Net Income 20% -- 40% Client C1 Manage Price Competitiveness Competitive Score 10% F2 Opti mize Ma rket Pre sen ce BizCa se Shar e of M arke t 10% F3 Incre ase Busi ness Volu me Tota l Sa le Volum e 10% -- 25% R1 Reduce Turnover % Turnover 5% C2 Provide exceptional Customer Service Client Satisfaction Score 5% Resources -- 15% Clien t -- 25% C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% C3 Improve Client Performance Client Average Score 10% R2 Manage Vendor performance Vendor Performance Score 10% C2 Pro vide ex cep tion al Customer Servi ce Clie nt Sat isfacti on Score 5% Business C3 Impr ove Cli ent Perfor mance Clie nt Ave rage Score 10% Intern al I1 Reduce Cost to Produ ce Cost P er Unit ( CPU) 5% -- 20% I2 Man age Sales Per fo rmance $/ uni ts p er Accoun t Executive 5% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th 5% I2 Manage Sales Performance $/units per Account Executive 5% cumul ative " Good " rati ng -- 20% I3 Implement critical technology projects IT Score 5% Resou rces R1 Reduce Tu rnove r % T urn over 5% -- 15% R2 Man age Vendo r perfor mance Ve ndor Performa nce Score 10% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating Resources R1 Reduce Turnover % Turnover 5% -- 15% R2 Manage Vendor performance Vendor Performance Score 10% BizCase BizCase Objective Measure Weight Target Metric Actuals Objective Measure Weight Target Met ric Actuals Financial F1 Incre ase P rofita bil ity Net Income 20% -- 40% F2 F3 Opti mize Ma rket Pre sen ce Incre ase Busi ness Volu me BizCa se Shar e of M arke t Tota l Sa le Volum e 10% 10% Financial F1 Increase Profitability Net Income 20% -- 40% Technology Clien t C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% -- 25% C2 Pro vide ex cep tion al Customer Servi ce C3 Impr ove Cli ent Perfor mance Clie nt Sat isfacti on Score Clie nt Ave rage Score 5% 10% F2 Optimize Market Presence BizCase Share of Market 10% Intern al I1 Reduce Cost to Produ ce Cost P er Unit ( CPU) 5% -- 20% I2 Man age Sales Per fo rmance $/ uni ts p er Accoun t Executive 5% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th cumul ative " Good " rati ng 5% F3 Increase Business Volume Total Sale Volume 10% Resou rces -- 15% R1 Reduce Tu rnove r R2 Man age Vendo r perfor mance % T urn over Ve ndor Performa nce Score 5% 10% BizCase Objective Measure Weight Target Metric Actuals Financial F1 Increase Profitability Net Income 20% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% F3 Increase Business Volume Total Sale Volume 10% Client C1 Manage Price Competitiveness Competitive Score 10% -- 25% Client C1 Manage Price Competitiveness Competitive Score 10% C2 Provide exceptional Customer Service Client Satisfaction Score 5% -- 25% BizCase C2 Provide exceptional Customer Service Client Satisfaction Score 5% C3 Improve Client Performance Client Average Score 10% Objective Measure Weight Target Met ric Actuals Financial F1 Incre ase P rofita bil ity Net Income 20% -- 40% F2 Opti mize Ma rket Pre sen ce BizCa se Shar e of M arke t 10% C3 Improve Client Performance Client Average Score 10% F3 Incre ase Busi ness Volu me Tota l Sa le Volum e 10% Clien t C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% -- 25% C2 Pro vide ex cep tion al Customer Servi ce Clie nt Sat isfacti on Score 5% Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% C3 Impr ove Cli ent Perfor mance Clie nt Ave rage Score 10% I2 Manage Sales Performance $/units per Account Executive 5% -- 20% I3 Implement critical technology projects IT Score 5% Intern al I1 Reduce Cost to Produ ce Cost P er Unit ( CPU) 5% I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% I2 Man age Sales Per fo rmance $/ uni ts p er Accoun t Executive 5% Internal -- 20% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th cumul ative " Good " rati ng 5% cumulative "Good" rating Resou rces R1 Reduce Tu rnove r % T urn over 5% -- 20% I2 Manage Sales Performance $/units per Account Executive 5% -- 15% R2 Man age Vendo r perfor mance Ve ndor Performa nce Score 10% Resources R1 Reduce Turnover % Turnover 5% I3 Implement critical technology projects IT Score 5% -- 15% R2 Manage Vendor performance Vendor Performance Score 10% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating Production Resources -- 15% R1 Reduce Turnover R2 Manage Vendor performance % Turnover Vendor Performance Score 5% 10% Marketing BizCase Objective Measure Weight Target Metric Actuals BizCase Financial F1 Increase Profitability Net Income 20% Financial F1 Objective Incre ase P rofita bil ity Measure Net Income Weight 20% Target Met ric Actuals -- 40% -- 40% F2 Optimize Market Presence BizCase Share of Market 10% F2 Opti mize Ma rket Pre sen ce BizCa se Shar e of M arke t 10% F3 Incre ase Busi ness Volu me Tota l Sa le Volum e 10% F3 Increase Business Volume Total Sale Volume 10% BizCase Clien t C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% -- 25% C2 Pro vide ex cep tion al Customer Servi ce Clie nt Sat isfacti on Score 5% Objective Measure Weight Target Metric Actuals C3 Impr ove Cli ent Perfor mance Clie nt Ave rage Score 10% Financial F1 Increase Profitability Net Income 20% Client C1 Manage Price Competitiveness Competitive Score 10% -- 40% Intern al -- 20% I1 I2 Reduce Cost to Produ ce Man age Sales Per fo rmance Cost P er Unit ( CPU) $/ uni ts p er Accoun t Executive 5% 5% -- 25% F2 Optimize Market Presence BizCase Share of Market 10% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% C2 Provide exceptional Customer Service Client Satisfaction Score 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th 5% cumul ative " Good " rati ng F3 Increase Business Volume Total Sale Volume 10% C3 Improve Client Performance Client Average Score 10% Resou rces R1 Reduce Tu rnove r % T urn over 5% -- 15% R2 Man age Vendo r perfor mance Ve ndor Performa nce Score 10% Client C1 Manage Price Competitiveness Competitive Score 10% Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% I2 Manage Sales Performance $/units per Account Executive 5% -- 25% -- 20% C2 Provide exceptional Customer Service Client Satisfaction Score 5% I3 Implement critical technology projects IT Score 5% C3 Improve Client Performance Client Average Score 10% I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% cumulative "Good" rating R1 Reduce Turnover % Turnover 5% Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) 5% Resources -- 20% I2 Manage Sales Performance $/units per Account Executive 5% -- 15% I3 Implement critical technology projects IT Score 5% R2 Manage Vendor performance Vendor Performance Score 10% BizCase I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month 5% Objective Measure Weight Target Met ric Actuals cumulative "Good" rating Financial F1 Incre ase P rofita bil ity Net Income 20% -- 40% F2 Opti mize Ma rket Pre sen ce BizCa se Shar e of M arke t 10% F3 Incre ase Busi ness Volu me Tota l Sa le Volum e 10% Resources R1 Reduce Turnover % Turnover 5% Clien t C1 Man age Pr ice Co mpeti tiven ess Competi tive Score 10% -- 15% -- 25% C2 Pro vide ex cep tion al Customer Servi ce Clie nt Sat isfacti on Score 5% R2 Manage Vendor performance Vendor Performance Score 10% C3 Impr ove Cli ent Perfor mance Clie nt Ave rage Score 10% Intern al I1 Reduce Cost to Produ ce Cost P er Unit ( CPU) 5% I2 Man age Sales Per fo rmance $/ uni ts p er Accoun t Executive 5% -- 20% I3 Impl emen t cri tical tech nol ogy pr oject s IT Score 5% I4 Ach ieve supe rio r Ri sk a nd Qua lity Rati ng Percen t of BU's wi th 12 -mon th 5% cumul ative " Good " rati ng Resou rces R1 Reduce Tu rnove r % T urn over 5% -- 15% R2 Man age Vendo r perfor mance Ve ndor Performa nce Score 10% © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 13
  • 14.
    Implementum Interconnected Analytical AndSimulation Models Help Perform Root-Cause Analysis And Improve Results Illustration Of Analytical Models BizCase Decision-Making Implementum BizCase Decision-Making Implementum Objective Measure Historial Simulation Objective Measure Historial Simulation Financial F1 Increase Profitability Net Income P&L Budget Financial F1 Increase Profitability Net Income P&L Budget -- 40% -- 40% F2 Optimize Market Presence BizCase Share of Market Market Surveys Client Segmentation F2 Optimize Market Presence BizCase Share of Market Market Surveys Client Segmentation F3 Increase Business Volume Total Sale Volume Daily Summary Forecast F3 Increase Business Volume Total Sale Volume Daily Summary Forecast Client C1 Manage Price Competitiveness Competitive Score Competitive Positioning Price Elasticity Client C1 Manage Price Competitiveness Competitive Score Competitive Positioning Price Elasticity -- 25% -- 25% C2 Provide exceptional Customer Service Client Satisfaction Score Surveying Application Help Desk Application C2 Provide exceptional Customer Service Client Satisfaction Score Surveying Application Help Desk Application C3 Improve Client Performance Client Average Score Client Scorecard Potfolio Management C3 Improve Client Performance Client Average Score Client Scorecard Potfolio Management Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) ABC (Activity-Based Cost) Cost Per Unit (CPU) Model Internal I1 Reduce Cost to Produce Cost Per Unit (CPU) ABC (Activity-Based Cost) Cost Per Unit (CPU) Model and Utilization Application -- 20% and Utilization Application -- 20% I2 Manage Sales Performance $/units per Account Executive Prospecting Application Sales Compensation I2 Manage Sales Performance $/units per Account Executive Prospecting Application Sales Compensation Simulation Simulation I3 Implement critical technology projects IT Score Project Management Cost Benefit Analytics I3 Implement critical technology projects IT Score Project Management Application (CBA) Benefit Analytics Cost Application (CBA) I4 Achieve superior Risk and Quality Rating Percent of BU's with 12-month cumulative Quality Walls Application Risk Management I4 Achieve superior Risk and Quality Rating "Good" rating Percent of BU's with 12-month cumulative Quality Walls Application Application Risk Management "Good" rating Application Resources R1 Reduce Turnover % Turnover Labor Performance Staffing Model Resources R1 Reduce Turnover % Turnover Labor Performance Staffing Model -- 15% -- 15% R2 Manage Vendor performance Vendor Performance Score Vendor Management Pipeline Management R2 Manage Vendor performance Vendor Performance Score Vendor Management Application Pipeline Management Application © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 14
  • 15.
    Implementum Interconnected Analytical And Simulation Models Help Perform Root-Cause Analyses And Improve Results Illustration Of Analytical Models Daily Dashboard with Monthly 12- forward projections month Forecast Decision-Making Implementum Market Intelligence Wholesale Daily Summary Report for 5/21/2008 Fun ded V ol. bps 5/21 /2 008 Vo l. Locke d Mix File s Vo l. 20 0 HF W 1 00 S tandard 100 EA 100 MCM 10 0 Jum bo 100 B ellevue 10 0 Dal las 10 0 75 Charl ot te Locks Hard files 2 008 volum e forec ast on 5/22/2008 Al l of H FW C onformi ng Gain A ctuals Jan-08 2,492,337 1 Ac tuals Feb-08 3,923,475 1 Act uals Mar-08 1 2, 081,662 Act uals Apr-08 1 1,635, 153 Forecast May-08 2,022,054 Forec as t Jun-08 1,921,091 Forecast Jul-08 1, 636, 237 Forecast Aug-08 1,561,862 Forec as t S ep-08 1,561,862 Forec as t Oc t-08 1, 710,611 Forecast Nov-08 1,487, 488 Forecast D ec -08 1,561,862 2008 Full Year 23, 595, 695 Mix Previous f orec as t 28,614,535 Runr ate in $MM HFW 34 26 .8 5 61 100 % 42 15 0 75 75 75 75 75 75 Volume 814, 356,417 961,032, 235 790,745,326 773,853,913 697, 260, 002 686,103,842 584,370,288 557, 808,002 557,808, 002 610,932,574 531,245,716 557, 808, 002 8,123, 324, 320 93% 10,738,901,559 Fundings Stand ard 31 26 .5 4 56 92 % 35 C ON FOR BPs 30.60 40. 83 26. 33 21.13 29.00 28. 00 28.00 28.00 28. 00 28.00 28.00 28.00 29 27 EA 0 79 .2 1 1 1% 2 10 0 50 50 50 50 50 50 50 Units 4,188 4,545 3,841 3, 666 3,231 3,179 2, 708 2,585 2,585 2,831 2, 461 2,585 38,403 MCM 0 43 .0 6 0 1% 1 J umbo 30yr Gain -36,621 25,845 -1,515 827 1,333 1,312 1, 117 1,066 1,066 1,168 1, 015 1,066 (2, 320) 382,160 C Jumb o 2 4% 1 Volume 8, 972,200 10,189, 040 4,217,200 1,108,750 789, 597 776,964 661,758 631,678 631, 678 691,838 601,598 631, 678 29, 903, 978 0% 167,418,331 50 25 25 25 25 25 25 25 N C30YR BPs -40.82 25. 37 -3. 59 7.46 16.88 16. 88 16.88 16.88 16. 88 16.88 16.88 16.88 (1) 23 Jumb o 2 32 .3 4 1 2% 3 Units 14 18 7 2 1 1 1 1 1 1 1 1 50 Seco nds 1 12 .7 5 1 1% 0 0 0 0 0 0 J umbo ARM Gain 13,518 35,171 233,138 94, 129 47,242 46,486 39, 593 37,794 37,794 41,393 35, 994 37,794 700, 046 1,422,407 0 0 0 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 Volume 12, 484,607 28,738, 910 55,286,573 28,056,292 29, 379, 472 28,909,401 24,622,796 23, 503,578 23,503, 578 25,742,014 22,384,360 23, 503, 578 326, 115, 158 4% 550,943,394 N CAR M BPs 10.83 12. 24 42. 17 33.55 16.08 16. 08 16.08 16.08 16. 08 16.08 16.08 16.08 21 26 Units 20 42 83 41 40 39 33 32 32 35 30 32 458 Fore cas t Expec te d Fu ndi ngs Expe cte d bps Reve nue (' 000 ) Vol . bps Expec te d Fu ndi ngs H ELOC Gain 27,511 42,630 15,277 -2, 948 5,411 5,324 4, 535 4,329 4,329 4,741 4, 123 4,329 119, 591 411,137 MTD May MTD May Ma y Jun Jul Au g Se p Oct N ov De c Jan Feb Mar 200 8 Historial Simulation Volume 6, 089,034 9,930, 112 6,301,102 9,957,874 8, 855, 758 8,714,066 7,421,969 7, 084,607 7,084, 607 7,759,331 6,747,244 7, 084, 607 93, 030, 311 1% 75,642,181 HFW 4 71 7 30 -47 % 27 .6 9 27 .9 7 1 .3 3 1,974 -46% 715 26.52 933 8 76 8 46 8 74 7 49 78 5 84 5 83 7 82 8 10,40 9 Forecast write-up GLINE BPs 45.18 42. 93 24. 24 -2.96 6.11 6. 11 6.11 6.11 6. 11 6.11 6.11 6.11 13 54 Stand ard 4 38 6 79 -29 % 27 .3 9 27 .6 7 8 .6 2 1,880 3% 666 27.11 678 6 36 6 14 6 35 5 43 56 9 62 7 62 1 61 5 7,54 7 Units 64 119 79 94 65 64 54 52 52 57 49 52 800 EA 6 9 -89 % 79 .5 0 80 .2 9 0 .2 9 73 -89% 9 78.69 176 1 65 1 59 1 65 1 41 14 8 16 3 16 1 16 0 1,96 0 Seconds Meth od ology A. Bra nch-product 23,088 runrates Gain h ard file 17,606 5,582 2, 193 2,476 2,436 2, 075 1,981 1,981 2,169 1, 887 1,981 65, 455 84,860 MCM 2 3 -92 % 0 .0 0 -32 .0 0 0 -1 00% 3 0.00 26 25 24 25 21 22 24 24 24 29 4 Volume 941,165 909, 580 B. Bra nch-product h ard file pullthrough 472,312 330,200 740, 666 728,815 620,749 592,533 592, 533 648,964 564,317 592, 533 7, 734, 367 0% 8,544,007 C Jumb o 3 4 -95 % 22 .5 1 22 .7 3 2 .7 3 9 -94% 4 22.28 0 0 0 0 0 0 0 0 0 40 0 GLOAN BPs 245.32 C. # of business days in a month 193. 56 118. 18 66.40(A x B x 33.43+ D C) 33. 43 33.43 33.43 33. 43 33.43 33.43 33.43 85 99 Units 15 16 14 4 6 6 5 5 5 5 5 5 91 Jumb o 17 26 -83 % 0 .0 0 -37 .5 0 0 -1 00% 25 0.00 34 32 30 31 27 28 23 23 23 1 D. Branch and product i niti ati ves 9,714 FH A Gain 13,779 21,440 25, 224 37,485 37,485 37, 485 37,485 37,485 37,485 37, 485 37,485 370, 037 374,850 Seco nds 6 9 -66 % 14 .5 4 14 .6 8 -22 .8 2 13 -87% 8 14.39 19 18 18 18 17 18 7 7 7 20 6 Volume 3, 674,386 2,590, 306 5,717,459 6,726,275 9, 996, 000 9,996,000 9,996,000 9, 996,000 9,996, 000 9,996,001 9,996,002 9, 996, 000 98, 676, 429 1% 104,958,003 Bel levu e 1 92 2 98 -51 % 31 .3 8 31 .6 6 4 .9 2 944 -42% 292 40.32 359 3 38 3 26 3 37 2 88 30 2 34 6 34 2 33 9 4,10 9 FH A BPs 37.50 37. 50 37. 50 37.50 37.50 37. 50 37.50 37.50 37. 50 37.50 37.50 37.50 38 36 Da lla s 1 64 2 54 -26 % 25 .2 9 25 .5 7 -0 .4 8 650 -28% 249 31.54 313 2 94 2 84 2 93 2 51 26 3 24 7 24 4 24 2 3,35 5 Assump tio ns Units 0 0 0 0 0 0 0 0 0 0 0 0 0 Ch arlotte 1 14 1 77 -58 % 24 .9 3 25 .2 0 -1 .7 7 447 -61% 174 43.81 261 2 45 2 37 2 44 2 10 22 0 25 3 25 0 24 8 2,94 5 Total Gain 2, 540,014 4,057, 840 2,370,150 1,756,418 2, 118, 954 2,017,040 1,723,517 1, 646,879 1,646, 879 1,800,155 1,570,242 1, 646, 879 24, 894, 968 31,308,087 Ru nra te Hard fil e runrates by branch 21 business d ays prior to the date of the fo recast (03-26-08 th rou gh 04-23-08). T he hard Volume 848, 722,459 1,014,198, 183 865,389,972 820,953,304 748, 202, 746 736,391,438 628,683,559 600, 561,397 600,561, 397 656,805,722 572,439,237 600, 561, 397 8,693, 470, 813 11,654,982,686 file runrate is d own from $71 milli on per day to $63 mil lion (11% drop). P&L Budget Pip eli ne by da ys ti ll expi ration Loc k su ffici ency D ail y l ocks bps 29.93 40. 01 27. 39 21.39 28.32 27. 39 27.41 27.42 27. 42 27.41 27.43 27.42 29 27 18 4 18 3 20 0 Pullthrough Previ ous forecast was based on a 58% overall pullthrough based3, 808 Units 4,306 4,746 4,029 o n January d ata by product by branch, curre2, 802 3,344 3,290 nt data 2,675 2,675 2,930 2, 548 2,675 39,828 55,154 Al l <=15 16-3 0 31-4 5 46-6 0 Ju n Ju l Aug Apr May NonConf 1 ,0 28 56 % 40 % 3% 1% -35% -37% -38% 55 56 refl ects a 56.7% pullthrough from F eb 1st through March 1st. Conf # of business days 21 20 21 22 21 21 22 21 21 23 20 21 254 92 89 88 Stand ard 9 00 49 % 35 % 3% 1% -13% -13% 2% 10 0 71 R unrates in units 205 237 192 173 159 157 127 127 127 127 127 127 157 65 66 65 61 59 61 55 56 Seasonal ity Adjusted average seasonality from Fa nnie Mae Quarterly forecast for 2006, 2007 and 2008 and distribu ted by month 50 51 49 52 EA 22 1% 1% 0% 0% -35% -35% -21% 46 44 48 42 43 39 42 36 30 33 33 Runrates 40,415,355 50,709,909 41, 209,046 37,316, 059 35,628,702 35,066,259 28, 576, 525 28,598,162 28,598,162 28, 556,771 28,621, 962 28,598,162 34,226,263 28 28 30 27 24 23 19 20 MCM 10 1% 0% 0% 0% -34% -34% -12% from 2006 HFW fundings. Monthly c hange 25% -19% -9% -5% -2% -19% 0% 0% 0% 0% 0% C Jumb o 28 1% 2% 0% 0% -5% -5% 27% 0 Conf orming mix 96% 95% -25% -15% 91% -5% 94% 5% 93% 15% 25% 93% 93% 93% 93% 93% 93% 93% 93% Jumb o 63 3% 3% 0% 0% C apa city Tu rn Fund ing s agai nst goa l Season ality Pl an Seco nds 6 0% 0% 0% 0% -65% -65% -28% Ju n Jul A ug time Time Jan-07 68% P lan 1,012,767, 155 1, 020,794,055 1,222, 285,064 1,380,052, 185 1,526,414,889 1, 719, 161,082 1,713, 485, 768 1,719,191,844 1, 746,749,129 1,793, 546,664 1,597,731, 918 1,655,216,102 18,107,395,855 HFW 34% Feb-07 Bel levu e 4 70 25 % 19 % 1% 1% -8% -9% -11% -53 -100 -151 S tandar 41% Gain dif f -92,146 1,390,981 -845,444 -1,919, 757 -2,058,344 -2,710,192 -3, 037, 743 -3,129,595 -3,196,498 -3, 202,860 -2,878, 161 -2,971,644 -24,651,402 Da lla s 3 30 18 % 13 % 1% 0% -12% -14% -17% 200 186 148 EA 41% Mar-07 Volume dif f -164,044,696 -6,595,872 -356, 895,092 -559,098, 881 -778,212,143 -982,769,644 -1,084, 802, 209 -1,118,630,447 -1, 146,187,732 -1,136, 740,942 -1,025,292, 681 -1,054,654,705 -9,413,925,043 MCM 41% Apr-07 B Ps dif f 3.94 13. 88 1. 08 -5.24 0.95 -0. 11 -0.37 -0.36 -0. 31 -0.49 -0.41 -0.48 1. 3 Ch arlotte 2 28 12 % 9% 1% 0% -15% -17% -21% 75 47 5 Jum bo 3% 11% May-07 7% 7% Prior forecast Al t-A bp s 27 .9 6 30 .7 8 24 .5 4 26 .5 4 13.73 HFW 222 133 2 S econds 22% AP M previous forec as t 1,052,699, 089 1, 012,194,264 1,111, 059,635 1,274,834, 456 1,347,497,015 1, 472, 528,922 1,512, 885, 174 15% 1,444,458,956 1, 433,951,950 1,567, 994,769 1,353,925, 287 1,417,574,236 16,001,603,753 Jun-07 15% Avg . MTM -0.10 0 -0.05 0 -0.16 0 -0.07 0 -0.140 0% 25% 50% 75% 100% D iff erence f rom act ual -203,976,630 2,003,919 -245, 669,663 -453,881, 152 -599,294,268 10% -736,137,483 -884, 201, 616 -843,897,559 -833,390,553 -911, 189,047 -781,486, 049 -817,012,838 -7,308,132,940 Jul-07 10% I ni ti atives Aug-07 C onforming 8% 8% 0 0 0 0 0 0 0 0 0 0 0 0 8,123, 324, 320 Sep-07 umbo FIXE D J 4% 0 0 0 0 4% 0 0 0 0 0 0 0 0 42, 372, 578 Funded Ma rgin s MTD 5/21 /2 008 R ank Ra nk th is mon th Lock pu llthro ugh H ard file pull throug h -2% O ct-07 Jumbo A RM -2% 0 0 0 0 0 0 0 0 0 0 0 0 326, 115, 158 HFW Bellevue Dallas Charlot te H FW B ellevue Dallas Charlott e HFW Bel levue Dall as Charl otte HFW Bellevue Dallas Charlot te H FW B ellevue Dallas Charlott e Nov-07 Alt-A Fix ed -4% 0 0 0 -4% 0 0 0 0 0 0 0 0 0 167, 650 All pro ducts 2 7.69 31 .3 8 25 .2 9 24 .9 3 1.75 1 .7 5 1 .7 5 1 .7 5 2 .1 3 2.13 2.18 2.10 45% 42% 49% 4 7% 5 5% 5 5% 5 4% 5 6% Market Surveys Client Segmentation ALt-A A RM 0 0 0 -5% 0 0 0 0 0 0 0 0 0 708, 000 Dec-07 -5% Stand ard 2 7.39 31 .5 4 24 .7 9 24 .5 8 1 1 1 1 2 2 2 2 47% 43% 52% 4 8% 6 0% 5 9% 6 1% 5 9% HELOC 0 0 0 0 0 0 0 0 0 0 0 0 93, 030, 311 EA 7 9.50 80 .3 7 74 .5 7 85 .5 2 1 1 1 1 2 2 2 2 22% 15% 25% 2 7% 1 7% 1 1% 1 9% 2 0% S ec onds 0 0 0 0 0 0 0 0 0 0 0 0 7, 734, 367 MCM 3 6.74 33 .2 6 42 .5 8 34 .6 6 1 1 1 1 2 2 2 2 31% 12% 42% 4 2% 3 9% 2 2% 4 5% 4 7% AE ramp up Each of the 10 new hi red BOA AEs i s expected to fund 10 extra lo ans in May thro ugh Dec, this brings i n extra C Jumb o 2 2.51 19 .7 9 0 .0 0 29 .4 5 4 4 4 4 4 3 4 4 0% # DIV/0 ! # DIV/0 ! 0% #D IV /0 ! #D IV/0! #D IV/0! #D IV/0! $200 milli on i n fundings. Jumb o 7 6.92 21 .3 0 20 .2 2 35 .4 0 35% 39% 22% 4 0% 3 6% 4 5% 2 1% 3 8% Seco nds 1 4.54 16 .9 4 34 .7 5 3 .0 1 3 3 3 3 3 3 3 3 66% 74% 55% 6 1% 6 2% 7 0% 5 7% 4 8% Declinin g markets No longer req uired for Purchase/Refi , 1 uni t, O O and shou ld i ncre ase volume by 4%. Lo an ch aracteri sti cs MTD Mi n Lo ck d esk R ates % DU 7.0 HFW Bellevue Dallas Charlot te St andard EA MCM C Jum bo Jumbo Seconds 4 5 7 FIC O 7 39 7 41 73 7 73 6 74 0 66 7 714 772 727 748 4 0 Avg. hold tim e LTV 72 70 74 71 72 81 93 72 69 23 3 5 Max hol d ti me 6 DTI 41 43 40 41 41 52 48 42 32 38 3 0 5 No te ra te 5.91 5.86 5 .9 8 5 .8 8 5 .8 8 6 .9 4 7.05 6.32 6.20 5.11 2 5 4 Amou nt 220 K 2 65 K 1 85 K 2 18 K 2 17 K 16 8 K 12 1 K 64 8 K 76 0 K 126 K 2 0 Re fi 7 3% 76 % 70 % 74 % 74 % 82% 9% 23% 76% 80% 1 5 10 yr T 3 10 1 yr T NOO 4% 5% 4% 3% 4% 3% 0% 0% 0% 0% 2 5 30yr FRM 2n d 3% 3% 4% 3% 3% 0% 0% 0% 6% 0% 0 1 Competitive ARM 7% 11 % 5% 3% 3% 0% 0% 0% 96% 99% Ma r Ap r Ma y No v Ma r Ap r Ma y Oct 0 1-11 0 1-17 0 1-23 0 1-29 0 2-04 0 2-10 0 2-16 0 2-22 0 2-28 0 3-05 0 3-11 0 3-17 0 3-23 0 3-29 0 4-04 0 4-10 0 4-16 0 4-22 0 4-28 0 5-04 0 5-10 0 5-16 Jan Feb Jun Jul Aug Sep Jan Feb Dec Daily Summary Forecast 60 50 18, 50 2 008 Pl an an d Fo recast Bell evue 4,109 4,050 8 0% L ock pul lthrou gh Rev enue , mi lli on 40 -20 7 0% Di ff from Plan Sales 30 Da lla s 3, 355 1,092 6 0% $ 10 , 30 Forecast 20 Plan Forecast 5 0% 10 C harl otte 2,945 2,557 (V ol, Rev) -8 4 0% Bell evue 0 0 2, 000 4,000 6,000 8,000 10,000 Dallas 0 4 8 12 16 20 24 Volu me, mill ion $ 3 0% Charlot te Volu me, bil lio n $ HFW Positioning 2,00 0 Client Performance Diff f rom Pl an 2 0% 0 2/02 0 2/22 0 3/14 0 4/03 0 4/23 0 5/13 0 6/02 0 6/22 0 7/12 0 8/01 0 8/21 0 9/10 0 9/30 1 0/20 1 1/09 1 1/29 1 2/19 0 1/08 0 1/28 0 2/17 0 3/08 0 3/28 0 4/17 Forecast 1,50 0 790 781 843 901 919 667 849 870 353 556 Marke t sha re 4 1,00 0 168 C onformi ng J umbo 10 % 15 Market volu me Compensation 8% 10 Share 50 0 1, 017 930 933 6% 845 870 824 860 876 846 874 785 749 4% 5 2% 0 0% 0 Ma r Ap r Ma y No v De c Oct Jan Feb Jun Jul Aug Sep 12/02 12/30 01/27 02/24 03/23 04/20 05/18 12/02 12/30 01/27 02/24 03/23 04/20 05/18 Management Pro perty of H omeco min gs Fi nan cial , LL C 2007 Sales Compensation Model - Overview AE's Varian ce Area Managers Varia nce Sales Managers Varian ce Total Variance Business Portfolio P erformance Snapshot Nov-2008 Home comings Financial Wholesale P erform ance Legend Competitive Positioning Price Elasticity Management Avg # AE's Excellent Good Fair Poor Unacceptable A ctual P rofile inclu des d eac tiv ated brok ers Current - Commissions $31,334,333 $2,367,702 $2,512,179 $36,214,213 hitting BROKER: A ddress : B roker Zip : Brok er QC Status : B roker Walletshare Year: Mngr Title: A E S tatu s: BRA NCH: Broker City: A pprove D ate: Brok er Type: B roker Walletshare P ct: AE Name: A E T er mination : 2nd Level Mn gr: Base + Bonus $8,809,397 $1,013,600 $1,298,800 $11,121,797 multiplier % BROK ER_ID: Broker State: L ic en se Exp Date: Active In d: B roker 2007 Volume: $000,000 AE Dept: M ngr Name: 2ndMn gr T itle: Last updat ed on: Sep-02-2008 Opera tions September 2007 - Augu st 200 8 Total Compensation $40,143,730 $3,381,302 $3,810,979 $47,336,011 Hi gh: 97 30% 2008-08 2008-07 2008-06 2008-05 2008-04 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 Total Average per Associate $124,284 $483,043 $224,175 Low: 99 31% Cancell ed Units 763 503 954 1, 011 1,094 2,293 2,084 2, 561 2,279 2, 227 2,722 3,605 22,096 V olume $212,933,902 $121,236, 018 $238, 721,863 $243,607, 092 $266, 119,823 $523, 611,039 $473, 850,505 $543,751, 854 $483, 254,864 $491,885, 173 $570, 682,078 $810, 680,850 $4, 980,335,061 Cost per loan $272 $23 $26 $321 No Mult.: 127 39% Denied Units 1,092 858 1,492 2, 057 2,425 1,932 1,418 1, 430 1,340 1, 274 1,843 2,264 19,425 V olume $254,209,630 $196,725, 950 $351, 598,857 $463,087, 914 $520, 424,709 $432, 564,585 $274, 419,313 $267,497, 273 $250, 422,487 $228,421, 884 $330, 216,563 $424, 189,964 $3, 993,779,130 Cost in bps 16.5 1.4 1.6 19.5 Funded Units 1,722 1, 997 2,336 3, 147 3,807 4,029 4,746 4, 306 5,464 5, 668 6,447 5,250 48,919 V olume $339,071,103 $407,056, 408 $491, 113,358 $692,148, 741 $814, 003,779 $859, 672,513 $1,011, 607,877 $845,048, 073 $1,062, 977,296 $1,061,114, 254 $1,195, 087,365 $934, 886,338 $9, 713,787,105 Proposed - Commissions $31,337,455 0% $2,224,959 -6% $2,513,985 0% $36,076,400 -0.4% Hard Units 2,521 3, 660 3,249 4, 247 6,101 7,006 8,280 8, 891 8,523 9, 387 10,551 9,333 81,749 V olume $523,298,051 $788,215, 613 $703, 090,749 $960,442, 641 $1,345, 104,440 $1,519, 729,559 $1,828, 163,631 $1,890,085, 602 $1,730, 405,550 $1,835,033, 718 $2,018, 235,735 $1,764, 180,683 $16, 905,985,970 Base + Bonus $6,804,000 -23% $1,064,000 5% $1,615,000 24% $9,483,000 -14.7% HFW Distibution - 12 month rolling Lock Units 2,186 3, 613 2,761 4, 511 5,315 8,834 7,607 11, 606 8,700 9, 675 10,658 9,770 85,236 V olume $458,421,597 $764,781, 128 $565, 489,706 $1, 006,494, 281 $1,188, 533,646 $1,936, 383,197 $1,623, 850,010 $2,571,308, 927 $1,770, 924,422 $1,903,913, 937 $2,048, 004,601 $1,838, 785,670 $17, 676,891,121 Total Compensation $38,141,455 -5% $3,288,959 -3% $4,128,985 8% $45,559,400 -3.8% Hi gh: 82 25% QLP Units 1,389 1, 498 1,790 2, 364 2,892 3,190 3,859 3, 444 4,371 4, 391 5,065 4,193 38,446 Average per Associate $118,085 -5% $469,851 -3% $242,881 8% Low: 106 33% State Dist ribution V olume $266,515,312 $298,663, 715 $369, 897,113 $513,389, 991 $609, 660,056 $674, 216,702 $840, 436,671 $688,237, 311 $862, 697,900 $831,596, 200 $945, 509,285 $749, 787,324 $7, 650,607,580 Amortization Distribut ion DTI Di st ribut ion Sum of SumOfPRIN_PURCH_BAL Long Term Distri bution UW Units 2,256 3, 425 3,129 3, 898 1,707 4,736 3,744 6, 953 5,407 8, 013 9,333 7,804 60,405 Cost per loan $259 -$14 $22 -$1 $28 $2 $309 ($12.04) No Mult.: 135 42% V olume $464,420,531 $741,324, 715 $677, 969,854 $883,976, 224 $342, 327,556 $986, 675,589 $795, 045,671 $1,422,722, 655 $1,089, 750,927 $1,563,835, 369 $1,792, 387,767 $1,487, 612,222 $12, 248,049,079 Surveying Application Help Desk Application Sum of SumOfPRIN_PURCH_BAL Sum of SumOfPRIN_PURCH_BAL STATE Total Distribution Sum of SumOfPRIN_PURCH_BAL Last updated on: S ep-02-2008 Pipeline Septemb er 2007 - August 2008 Cost in bps 15.7 -0.8 1.4 0.0 1.7 0.1 18.8 -0.731 Amom ortization Total Distribution DTI Total Distribution AK $34,767,522 0% TERM_ACTUA L_MONTH_NBR Total Distr ibution 2008-08 2008-07 2008-06 2008-05 2008-04 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 Total ARM $1,198,373,767 11% 10.01 to 25 $727,760,304 7% AL $188,946,429 2% 60 $32,550 0% Hard Pul lthroug h 53% 57% 56% 58% 58% 50% 56% 53% 57% 60% 60% 58% 57% Fixed $9,733,255,191 89% 25.01 to 35 $1,913,391,589 18% AR $33,388,026 0% 120 $29,676,012 0% F unded 41% 56% 56% 58% 58% 50% 56% 53% 57% 60% 60% 58% 56% Total $10,931,628,958 100% 35.01 to 38 $880,836,553 8% AZ $193,497,212 2% 180 $542,883,959 5% Lenders N. California Avg 06 projected 07 proposed 07 proposed 07 prop. Branch Dist ribution 38.01 to 40 40.01 to 45 $710,354,706 $2,268,310,323 6% 21% CA CO $2,092,159,413 $455,277,704 19% 4% 240 300 $159,402,973 $102,407,284 1% 1% I nProgress% Denied% 22% 32% 31% 2% 0% 32% 0% 30% 0% 30% 0% 36% 0% 25% 0% 20% 0% 17% 0% 15% 0% 16% 0% 18% 1% 23% comp. comp. v ar. Volume v ar. commission 07 prop. base Bonus*** Cancelled% 5% 11% 12% 12% 12% 14% 19% 26% 26% 25% 24% 25% 20% monthly Sum of SumOfPRIN_PURCH_BAL 45.01 to 50 $1,357,345,140 12% CT $63,943,475 1% 360 $10,021,895,745 92% Expi red% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 20 units Bel lev ue $ 672,202 $ 578,692 -14% -15% $ 426,692 $ 102,000 $ 50,000 BR ANCH Bellevue Total $4,535,629,518 Distribution 41% Over 55 (blank ) $2,995,997,977 $77,632,366 27% 1% DC DE $30,849,283 $31,639,144 0% 0% Total 480 $75,330,434 $10,931,628,958 1% 100% L ock Pul lthroug h 66% 60% 62% 59% 52% 47% 52% 48% 52% 58% 60% 57% 54% Peer Percentile % Avg Units** thresho ld Newport $ 1,104,560 $ 694,291 -37% -19% $ 542,291 $ 102,000 $ 50,000 Dallas $3,095,030,002 28% To tal $10,931,628,958 100% FL $520,969,048 5% F unded I nProgress% 45% 32% 59% 2% 62% 0% 59% 0% 52% 0% 47% 0% 52% 0% 48% 0% 52% 0% 58% 0% 60% 0% 57% 0% 54% 1% Low Multipli er 80% 37.8 N Dallas $ 616,165 $ 461,500 -25% -6% $ 309,500 $ 102,000 $ 50,000 North Carolina $3,226,042,554 30% GA $91,772,212 1% Denied% 12% 16% 15% 15% 17% 18% 15% 11% 9% 9% 8% 10% 12% 15 H igh Multipli er 120% 56.8 Y Detroit $ 401,561 $ 359,933 -10% -5% $ 207,933 $ 102,000 $ 50,000 Inside Sales $74,926,884 1% Loan Amount Disti bution HI $37,997,737 0% Cancelled% Expi red% 3% 8% 17% 7% 23% 0% 26% 0% 31% 0% 35% 0% 33% 0% 41% 1% 39% 0% 34% 0% 32% 0% 33% 0% 32% 1% 61% Volume based on: N ew ($24.3B) i Original ($30.5B) Ft Laud. $ 539,358 $ 372,821 -31% -18% $ 220,821 $ 102,000 $ 50,000 To tal $10,931,628,958 100% Sum of SumOfPRIN_PURCH_BAL Lo an Amo unt Total Distribution IA ID $47,730,089 $85,642,844 0% 1% Amort izat ion Type Last updated on: S ep-02-2008 2008-08 2008-07 2008-06 2008-05 2008-04 2008-03 2008-02 B us ines s Por tfolio 2008-01 2007-12 September 2007 - Aug ust 20 08 2007-11 2007-10 2007-09 Total n New ($24.3B) Charlotte 0 to 25K $8,160,581 0% IL $273,615,530 3% Sum of SumOfPRIN_PURCH_BAL Unit-Dri ven Mul tiplers : Y $ 467,265 $ 363,112 -22% -1% $ 211,112 $ 102,000 $ 50,000 Uni ts 1,722 1, 997 2,336 3, 147 3,807 4, 029 4, 746 4, 306 5,464 5, 668 6,447 5, 250 48, 919 10 Use Fixed Multi pli er Y scena rio New Jersey $ 618,402 $ 458,610 -26% -10% $ 306,610 $ 102,000 $ 50,000 Sum of SumOfPRIN_PURCH_BAL Combo Dist ribution >100K to 125K >125K to 150K $647,515,751 $803,417,930 6% 7% IN KS $124,639,896 $17,433,127 1% 0% TERM_AMORT_MONTH_NBR 60 Total $32,550 Distr ibution 0% Volu me $339,071,103 $407,056, 408 $491, 113,358 $692,148, 741 $814,003,779 $859, 672, 513 $1,011,607, 877 $845,048, 073 $1, 062, 977,296 $1,061,114, 254 $1, 195, 087,365 $934, 886, 338 $9,713, 787, 105 selectors Avg L oan $196,905 $203,834 $210,237 $219, 939 $213,818 $213, 371 $213, 150 $196, 249 $194, 542 $187, 211 $185,371 $178, 074 $198, 569 C ombo Total Distribution >150K to 200K $1,718,465,777 16% KY $45,182,976 0% 120 $29,676,012 0% Client Scorecard Potfolio Management WA F ICO 732 735 732 738 736 724 720 696 691 686 680 676 706 Low Multiplier 30 Average $ 631,359 $ 469,851 -26% -20% $ 317,851 $ 102,000 $ 50,000 With a Second $1,451,705,857 13% >200K to 250K $1,577,951,820 14% LA $289,850,585 3% 180 $514,554,733 5% WA L TV 74 74 72 72 71 73 73 75 77 77 77 79 75 5 Hi gh Multiplier 50 Without a Second Total $9,479,923,101 $10,931,628,958 87% 100% >250K to 300K >25K to 50K $1,445,913,640 $81,779,384 13% 1% MA MD $197,154,408 $408,373,294 2% 4% 240 300 $159,402,973 $102,407,284 1% 1% WA CLT V WA DTI 75 42 75 42 75 43 74 42 74 41 75 42 75 41 77 43 78 44 80 44 80 44 82 45 77 43 APM comp. based on uni ts N >300K to 350K $1,176,305,974 11% ME $51,702,851 0% 360 $10,010,850,160 92% Last updated on: S ep-02-2008 Proces s Manageme nt September 2007 - Augu st 200 8 >350K to 400K $1,021,307,650 9% MI $233,445,163 2% 480 $114,705,246 1% 2008-08 2008-07 2008-06 2008-05 2008-04 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 Total ASM co mp. b as ed on units N >400K to 500K $1,249,829,846 11% MN $128,471,104 1% Total $10,931,628,958 100% QL P % 81% 75% 77% 75% 76% 79% 81% 80% 80% 77% 79% 80% 79% 0 Sum of SumOfPRIN_PURCH_BAL Credit Score Dist ribution >500K to 700K $277,716,924 3% MO $141,198,425 1% UW % Last updated on: A ug-15-2008 94% 96% 98% 94% 29% 69% 46% 83% 67% 90% 93% 88% 77% C redit Scor e Total Distribution >50K to 75K $257,137,299 2% MS $58,105,245 1% Risk Ma na ge ment No vember 200 6 - March 2008 -0.800 -0.950 -1.100 -1.250 -1.400 -1.550 -1.700 -1.850 -2.000 -2.150 -2.300 -2.450 -2.600 -2.750 Data 2008-04 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 2007-08 2007-07 2007-06 2007-05 2007-04 2007-03 2007-02 2007-01 2006-12 2006-11 Total 450 to 550 $267,228,055 2% >75K to 100K $480,132,177 4% MT $44,069,555 0% Conf 90+ 0.3% 1.7% 2. 6% 3.5% 4.9% 5.8% 5.1% 3.4% 3. 4% 3.1% 2. 6% 1.4% 1.0% 1.0% 0.9% 0. 7% 1.2% 0.9% 2.5% Price 551 to 620 621 to 660 $1,150,744,788 $1,392,742,036 11% 13% Over 700K To tal $185,994,205 $10,931,628,958 2% 100% NC NE $177,493,830 $20,717,974 2% 0% NC 90+ 90+ 0.0% 0.3% 0.1% 1.8% 0. 2% 2. 8% 0.1% 3.6% 0.3% 5.2% 0.1% 5.9% 3.1% 8.1% 5.4% 8.8% 5. 6% 8. 9% 5.0% 8.1% 5. 2% 7. 8% 8.3% 9.7% 11.7% 12.6% 12.2% 13.2% 12.0% 12.9% 13. 3% 14. 0% 13.4% 14.6% 11.8% 12.7% 5.7% 8.2% 661 to 680 $898,196,122 8% NH $41,474,240 0% Conf EP D 0.8% 2.4% 2. 5% 2.7% 2.8% 3.5% 3.7% 2.8% 2. 7% 2.5% 1. 8% 0.8% 0.5% 0.4% 0.4% 0. 6% 0.1% 0.5% 1.8% 681 to 720 $2,348,975,684 21% LTV Disti bution NJ $438,262,791 4% Doc Type Distribution NC EPD 0.1% 0.0% 0. 1% 0.1% 0.2% 0.1% 0.6% 1.0% 0. 9% 0.8% 1. 1% 1.8% 2.3% 2.0% 1.4% 1. 5% 1.1% 0.7% 1.0% Over 720 $4,868,679,186 45% Sum of SumOfPRIN_PURCH_BAL NM $87,210,421 1% Sum of SumOfPRIN_PURCH_BAL E PD 0.9% 2.4% 2. 6% 2.8% 2.9% 3.6% 4.3% 3.8% 3. 7% 3.4% 2. 9% 2.6% 2.8% 2.4% 1.8% 2. 1% 1.2% 1.2% 2.9% (blank) $5,063,087 0% LT V Total Distribution NV $64,797,268 1% Doc Type Total Distr ibution Las t updated on: J ul-08-2008 Profita bility July 200 7 - June 2008 Not Va lid for deci si on making at the AE and Broker Level Total $10,931,628,958 100% .01 to 55 $1,258,335,169 12% NY $178,078,426 2% Fast App $20,234,224 0% 2008-06 2008-05 2008-04 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 2007-08 2007-07 T otal 55.01 to 60 $517,093,285 5% OH $61,857,233 1% Full Docs $10,445,689,414 96% P ri cing Revenue $1,014,242 $1,943, 421 $1, 446,152 $2,175, 834 $3, 558,253 $1, 963,322 $1, 888,213 $2,483, 064 $2, 334,791 $977, 172 $4, 423,626 $5, 345,272 $29,553,364 60.01 to 75 $2,870,583,529 26% OK $79,849,535 1% Lite Doc $2,229,780 0% Fees $1,266,536 $1,702, 430 $2, 168,780 $2,136, 375 $2, 506,683 $2, 374,798 $3, 098,420 $3,156, 166 $3, 370,007 $2,928, 770 $4, 583,217 $4, 874,807 $34,166,988 P roducts Distribution 75.01 to 80 $3,076,826,079 28% OR $291,289,333 3% No Doc $27,653,483 0% Other RE V $65,172 -$73, 901 -$175,536 -$7, 105 -$97,972 -$59,171 -$92,937 -$154, 004 $53,018 -$29, 926 $1, 873,846 -$67,391 $1,234,094 80.01 to 90 $1,425,553,101 13% PA $284,911,630 3% No Income/Full As sets $30,223,129 0% Total REV $2,345,950 $3,571, 950 $3, 439,395 $4,305, 104 $5, 966,964 $4, 278,949 $4, 893,697 $5,485, 227 $5, 757,817 $3,876, 016 $10, 880,689 $10, 152,688 $64,954,446 Sum of SumOfPRIN_PURCH_BAL Activity Distribution Comm issions $1,510,819 $1,874, 479 $1, 886,273 $1,713, 609 $1, 935,177 $2, 159,522 $1, 960,409 $2,987, 081 $2, 808,431 $2,534, 250 $4, 029,285 $4, 495,705 $29,895,039 Prog_Group2 Total 90.01 to 95 $688,052,603 6% RI $39,381,915 0% One Paystub $8,470,696 0% P rod uction & UW $1,523,193 $1,745, 606 $2, 194,345 $2,673, 921 $2, 607,335 $2, 821,791 $3, 537,127 $3,203, 477 $3, 148,911 $2,865, 135 $3, 518,999 $1, 845,364 $31,685,204 Accent125 $2,063,315 0% 95.01 to 100 $1,095,185,191 10% SC $148,637,872 1% Stated Inc ome $373,036,942 3% Closing/ Funding $216,446 $267, 799 $266,632 $386, 980 $270,386 $372,791 $665,643 $545, 130 $524,514 $496, 356 $676,423 $672,333 $5,361,432 Access $5,244,350 0% To tal $10,931,628,958 100% SD $802,200 0% Stated Inc ome/S tated Ass ets $24,091,290 0% P rod uction Support $248,268 $389, 161 $391,442 $443, 544 $362,763 $401,397 $643,406 $746, 290 $745,735 $584, 920 $939,481 $839,484 $6,735,892 Adv antage $273,204,490 2% TN $171,878,071 2% Total $10,931,628,958 100% P roj ectedContribu ti on -$1,152,776 -$705, 095 -$1, 299,296 -$912, 949 $791,304 -$1, 476,553 -$1, 912,888 -$1,996, 752 -$1, 469,775 -$2,604, 645 $1, 716,501 $2, 299,802 -$8,723,121 Agency $9,881,595,077 90% TX $835,600,949 8% Last updated on: A ug-15-2008 Loss Se verity November 2006 - March 2008 Alpine $365,598,518 3% Conforming Distribut ion UT $322,877,988 3% 2008-03 2008-02 2008-01 2007-12 2007-11 2007-10 2007-09 2007-08 2007-07 2007-06 2007-05 2007-04 2007-03 2007-02 2007-01 2006-12 2006-11 2006-10 To tal FLLOC $4,448,000 0% Sum of SumOfPRIN_PURCH_BAL VA $335,495,418 3% E PD 106 137 159 178 202 267 281 300 332 287 292 300 277 93 23 10 13 19 3,276 HE LOC $125,417,372 1% CONF Total Distribution VT $17,417,390 0% 90+ 11,177,416 17,986,102 29,675,355 47,889, 613 46,188,672 87, 761, 923 131,938, 072 157,628, 636 162, 974,147 146,723, 517 192, 859,631 215, 620, 027 242,810, 139 109,107,549 27,286, 838 25, 662,385 28,322,433 45,292,801 1,726,905,257 POA $205,234,301 2% EA $1,415,891,000 14% WA $1,242,704,443 11% Loss $6,216,437 $8,267,404 $10,777,364 $16,474, 995 $16,529,638 $28, 534, 254 $40,814, 547 $49,431, 368 $53, 972,068 $51,733, 574 $72, 464,004 $87, 426, 842 $94,827, 054 $42,792,436 $10,130, 883 $8, 263,174 $9,140,330 $14,472,833 $622,269,205 Sec ond $68,823,534 1% MCM $379,486,929 4% WI $104,900,850 1% T his report contains confidential, proprietary information that ha s been prod uced for the exclusive use of Homecomings Financial, L LC associ ates and the b roker to whom the report relates. Distribution of th is report to an unaffil iated third party is p rohi bite d without the express written consent of a Homecoming s Total $10,931,628,958 100% Standar d $8,064,432,088 82% WV $9,885,855 0% F inancial Managi ng Director. Unauthorized di stribution of this report may re sult in the terminati on of employment and/or the broker rel ation shi p, and Homecomi ngs may take any and all appropriate l egal a ction without notice, in clu ding i nstituti ng a claim for in junctive relief and/or monetary damag es. All rights reserved. Jumbo $21,785,060 0% WY $53,291,650 0% To tal $9,881,595,077 100% ND $989,380 0% Tracking Total $10,931,628,958 100% ABC (Activity-Based Cost) Cost Per Unit (CPU) Model and Utilization Application Cost Per Unit Risk Management All Branches YTD (Jan-Sep 2005) Distribution of Operating Expenses Loans Funded = 74897 Chart 1 - Functional Classifications Chart 2 - Productive Task Classifications and Analysis Labor Performance Key Risk Metric Below Plan Plan Above Plan Target Above Target Weight Current Month Status Sales - OH Admin - Comp 1 Point 2 Points 3 Points 4 Points 5 Points 3.86 AP 4.9% 7.0% Admin - OH 3.3% Fun d Close 21.4% Overall Risk Rating on areas includin g >3 <=3 and >2.5 <=2.5 and >2 <=2 and >1.5 <=1.5 10% T Prospecting Application Sales Compensation Productive - 9.6% SU - Receive File ORM Scorecard Rating 2 Comp 0.1% Info. Securit y, Responsible Practices, 21.0% SU - Process File Business Continuity Planning, Fraud, 13.7% Outsourcing/Vendor Risk, etc Management UW - Exception s 22.4% SU - Send Simulation Disclosures Loan Performance Actual HFW performance compared to expected Low Sig n. Below Belo w Expectations Barely Meets Meets Expectations Exceeds 5% Barely Meets AP 1.8% UW - Co nditio ns performance Expectatio ns Expectations Expectatio ns Expectations Productive - OH UW - Un derwriting 6.8% Sales - Comp 9.0% 24.1% Indirect - Comp 45.2% Indirect - OH 6.7% 2.9% Loan Performance Actual HFW performance compared to expected High Sig n. Below Belo w Expectations Barely Meets Meets Exceptations Exceeds 5% Below P performance Expectatio ns Expectations Expectatio ns Expectations UNDERWRITER_NAME Hard Lock QLP % UW % EPD Total 90+Units 90+ EPD% WA FICO WA LTV WA CLTV WA DTI Compliance Sign % Credit Sign % Expense Category $000 % Total CPL Expense Category $000 % Total CPL Min 1 % Total Regulatory Compliance TIL signif icant findings rate >4.5% <=4.5% - >4.0% <=4.0% - >3.5% <=3.5% - >3% <=3% 10% 3.8% AP ACEVEDO, A. Productive - Comp 12,848.5 21.0% 171.55 SU - Receive File 25.6 0.1% 0.34 2.28 1.3% ROR significant fin dings rate >4.5% <=4.5% - >4.0% <=4.0% - >3.5% <=3.5% - >3% <=3% 10% 3.0% AT ADAMS, ALLAN 65% 72% 91% 73% 20 70 4.2% 1.1% 719 71.7 75.4 42.9 0% 0% Productive - OH 5,513.0 9.0% 73.61 SU - Process File 2,516.3 13.7% 33.60 23.26 12.8% ADAMS, DEREK (GE) 68% 74% 76% 32% 743 79.0 79.2 44.3 33% Indirect - Comp 1,758.1 2.9% 23.47 SU - Send Disclosures 338.7 1.8% 4.52 4.25 2.3% RESPA sig nficant fin dings rate >4.5% <=4.5% - >4.0% <=4.0% - >3.5% <=3.5% - >3% <=3% 10% 2.4% AT Indirect - OH 4,097.4 6.7% 54.71 UW - Underwriting 4,422.0 24.1% 59.04 41.92 23.1% Project Management Cost Benefit Analytics ADAMS, DIANN 0% HOEPA significant findings rate >1.00% <=1.00% - >0.75% <=0.75% - >0.50% <=0.5% - >0.25% <=0.25% 10% 0.6% AP AHUMADA, PATRICIA (GE) 75% 10 23 14.4% 6.3% 656 95.2 95.2 36.3 State High Cost significant findings rate >1.00% <=1.00% - >0.75% <=0.75% - >0.50% <=0.5% - >0.25% <=0.25% 10% 1.2% BP ALABARCES, OSCAR 100% 14 68 11.0% 2.2% ALANIZ, ROBYN 58% 71% 79% 76% 15 76 6.4% 1.2% 706 74.0 81.7 42.6 Credit Compliance Significant net findings rate >7.5% <=7.5% - >6.5% <=6.5% - >5.5% <=5.5% - >4.5% <=4.5% 10% 6.0% AP ALTIER, SANDRA (MGIC) 0% 0% 100% ALVAREZ, KATHLEEN 55% 64% 82% 79% 57 230 13.3% 3.1% 690 76.0 77.9 42.7 23% 0% Application (CBA) Early Payment Defaults No payments made on a loan in the Prime 1.31%+ of RFG 1.21% - 1.30% of RFG 1.11% - 1.20% of RFG 1.01% - 1.10% of RFG <= 1.00% of RFG 5% 1.3% P ALVAREZ, MARTA 60% 71% 85% 68% 47 120 13.7% 4.6% 659 81.2 85.1 42.6 50% Ave. Ave. Ave. Ave. Ave. ALVAREZ, MARY 100% 100% 100% 50% 1 1 7.3% 4.5% 576 74.5 74.5 50.4 90 days following the 1st payment due date after Non- 1.31%+ of RFG 1.21% - 1.30% of RFG 1.11% - 1.20% of RFG 1.01% - 1.10% of RFG <= 1.00% of RFG 5% 0.9% AT AUCKLAND, ELIZABETH 53% 65% 81% 62% 56 151 12.5% 4.3% 664 85.6 87.6 43.9 0% the funding date Prime Ave. Ave. Ave. Ave. Ave. AURAND, LYNETTE 0% 0% 33% 2 0 0.0% 16.7% Automated 0% 0% Repurchase Reserve Annual cumulative repurchase reserve increases Repurchase Repurchase reserve Repurchase reserve Repurchase reserve Repurchase 10% 1.15 AT AVERA, MAURI 0 0 0.0% 0.0% due to fraud schemes reserve increase in crease of $4.5M increase of $3.5M increase of $2.5M reserve in crease of BAKER, DWAINE (MGIC) 39 77 11.5% 6.7% >$4.5M $1.5M BARBATO, LAURA 78% 94% 83% 78% 1 2 9.9% 5.6% 666 96.7 96.7 43.2 BARNETT, JERRY 55% 67% 74% 78% 0 0 0.0% 0.0% 725 68.3 70.5 39.0 40% 0% AP BATTITO, PATRICIA (GE) 2 18 9.7% 0.9% BEAVER, CHUCK 0% 0% 0% 0 0 0.0% 0.0% Quality Walls Application Risk Management BECK, MICHELLE 1 3 3.2% 1.3% BELL, ROBBIE 8 38 6.2% 1.2% BERNHARDT, DAVID 49% 58% 73% 53% 7 57 5.3% 0.6% 731 69.2 71.8 42.0 0% 0% BIASE, CAROL 74% 80% 99% 92% 20 117 8.1% 1.4% 694 71.9 76.7 44.7 0% BIEHLE, TAMARA (GE) 7 17 5.5% 2.6% BOLDEN, VERONICA (MGIC) Application Staffing/ Vendor Management Pipeline and BOLLINGER, DEBORAH 68% 75% 76% 67% 23 63 4.5% 1.5% 721 73.5 76.5 42.1 7.69E-02 0% BONNER, MICHAEL 100% 100% 100% 0% 753 61.7 61.7 25.8 BOOTH, LISA 63% 72% 63% 83% 25 65 4.1% 1.7% 710 77.6 79.9 41.5 50% 0% BOTHEL, JULIE 50% 61% 75% 57% 11 41 3.2% 0.9% 712 69.0 73.5 43.5 71% 0% BRADDOCK, PATRICIA 58% 69% 62% 88% 9 16 3.7% 2.4% 671 80.1 81.8 43.6 100% BRANTLEY, LORI 69% 77% 81% 89% 37 104 7.5% 2.5% 698 74.4 77.2 44.0 BREWER, BRAD 100% 100% 100% 100% 0 0 0.0% 0.0% 825 43.0 43.0 51.9 BROCK, SEAN 76% 82% 84% 88% 33 99 7.4% 2.2% 689 76.7 79.7 44.9 50% Capacity Model Throughput BRUNO, CHERI 82% 90% 100% 100% 733 70.4 71.8 42.5 euvelleB A leahci M,yht raCc M .CNI,GNIDNEL LANOITAN CIFICAP 000 -694140 NIRAD ,SMADA Y BUBNICK, BRYAN 62% 71% 82% 74% 43 125 5.6% 1.7% 702 70.0 73.0 42.7 38% 10% euvelleB A leahci M,yht raCc M PROC EGAGTROM ESIDARAP 000 -984140 NIRAD ,SMADA Y 1 000,071$ BUCHANAN, ROBERT 67% 79% 76% 78% 15 20 3.6% 2.5% 690 74.5 78.0 44.7 100% euvelleB A leahci M,yht raCc M LAICNANI F ESUOHTHGIL 000 -962140 NIRAD ,SMADA Y euvelleB A leahci M,yht raCc M CNI PUORG GNIDNUF BD 000 -281140 NIRAD ,SMADA Y 6 000,332,1$ euvelleB A leahci M,yht raCc M NIF DNA YTLAER EGATNA VDA TSRIF 000 -711140 NIRAD ,SMADA Y 3 704,745$ euvelleB A leahci M,yht raCc M D ETAROPROCNI PUORG NNI W NNIW 000 -511140 NIRAD ,SMADA Y Base Case 2006 euvelleB A leahci M,yht raCc M LAICN ANI F GNUOY ELLEHCIM 000 -860140 NIRAD ,SMADA Y 1 023,432$ Labor Performance Staffing Model euvelleB A leahci M,yht raCc M CNI PUORG SR EDN EL DE TINU 000 -520140 NIRAD ,SMADA Y 1 000,701$ User Can Adjust - Overtime Assumptions 2006 2006 2006 2006 2006 2006 euvelleB A leahci M,yht raCc M PROC LAICNANIF NIW 000 -110140 NIRAD ,SMADA Y 14 000,648,8$ - % Temp Workforce Assumptions Actual Actual Actual Actual Actual Actual euvelleB A leahci M,yht raCc M CNI EGAG TROM R & R 000 -200140 NIRAD ,SMADA Y 21 053,402,4$ Jan Feb Mar Apr May Jun euvelleB A leahci M,yht raCc M PUORG GNIDNEL JC 000 -248040 NIRAD ,SMADA Y Production Hard Files 12,970 14,718 19,130 16,632 19,754 20,811 euvelleB A leahci M,yht raCc M SECIVRES LAICNANI F EDN ARG ASAC 000 -767040 NIRAD ,SMADA Y 2 000,792$ Funded Units 9,533 10,785 14,746 12,720 15,428 15,788 euvelleB A leahci M,yht raCc M LAICNANIF YTIC NACIREMA 000 -764040 NIRAD ,SMADA Y 5 055,981,1$ Volume ($ Millions) $ 1,573.5 $ 1,829.8 $ 2,530.7 $ 2,175.5 $ 2,623.5 $ 2,673.2 euvelleB A leahci M,yht raCc M GNIDNEL SEYAH 000 -062040 NIRAD ,SMADA Y euvelleB A leahci M,yht raCc M EGAGTRO M E MOH LAIREP MI 000 -551040 NIRAD ,SMADA Y 2 000,115$ euvelleB A leahci M,yht raCc M EGAG TRO M KCO TS MOC 000 -621040 NIRAD ,SMADA Y 1 000,981$ Headcount Vendor Management Pipeline Management euvelleB TSE T YNAPMOC TSET 000 -444444 SIRHC ,EDYH Y Actual FTE's - As of July 31, 2006 euvelleB T SET TCAMGELESLHW 100 -000075 0108- ESUOH Y euvelleB REKORB TSET 000 -990035 0108- ESUOH Y Full Time Variable 339.0 355.0 347.0 365.0 393.0 399.0 Temporary Variable 34.6 57.7 68.9 80.4 77.4 93.2 E MAN_HCNARB MSA EMAN_REKORB DI_REKORB E MAN_CEXE_TCCA evi tcA sti nU e muloV Total Variable FTE's Actual 373.6 412.7 415.9 445.4 470.4 492.2 Application Non-Variable FTE's Actual (excludes AE's) 90.0 94.0 95.0 96.0 97.0 105.0 srek orB 918,4 936,51 633,835,713,3$ Total Actual FTE's 463.6 506.7 510.9 541.4 567.4 597.2 t nu oc srek orB sti nU e muloV Required FTE's - Assumes 1% Temporary Workforce Allowable No Overtime 0.0% d oirep g nill or s ht no m 6 - srek orB evi tcA * Full Time Variable Employees Required 277.0 332.0 401.0 395.0 429.0 441.0 Temporary Variable Employees Required 2.7 3.5 4.4 4.2 4.7 4.9 Total Variable FTE's Required 279.7 335.5 405.4 399.2 433.7 445.9 Non-Variable FTE's Required (excludes AE's) 90.0 96.0 111.0 113.0 117.0 120.0 E MAN_HCNARB MSA E MAN_CEXE_TCCA DI_REKORB EMAN_REKORB sti nU EVI TCA e muloV Total Required FTE's Efficiency+Changes 369.7 431.5 516.4 512.2 550.7 565.9 Revised UA 367.5 374.4 356.3 421.4 423.4 435.9 Over(Under) Required Headcount Original 351.7 358.2 340.8 401.7 403.5 416.5 Note: Diagram Scenario is not MECE (Mutually Exclusive, Collectively Exhaustive) © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 15
  • 16.
    In-Depth Analytics F1 Strategy’sProblem Solving Process Leverages An Extensive Repertoire Of Decision-Making Methodologies Problem Solving Process Solution Definition/Refinement Decision Tree Workplan Observations Update Strategies A /Metrics 1 A,1,4,7 4 Financial 6 B Fact-Based Iterative Proposed External 2 B,2,5,8 Hypothesis Analysis Solution(s) 9 Internal 5 Resources 7 C C,3,6,9 8 3 Communications (Throughout Process) Interviews Memos Discussion Outlines Exhibits Reports Summaries © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 16
  • 17.
    80% Solutions We FocusOn Fast 80% Solutions With Relevant Depth, Providing Flexibility Without Compromising Quality Value Of An 80% Solution 100% 100% solution 80% solution 80% solution solution 80% solutions are specially adapted to fast changing markets because they Value Generated are flexible and help optimize the balance between labor and systems By addressing the remaining 20% High return on Diminishing through skilled and flexible employees spending returns on an operation can adapt quickly to any spending change in market requirements Work performed is necessary and Work performed Selective use of automation, reduces sufficient to get often creates technology costs (elimination of over- to expected complexity and design), and provides a motivating results reduces flexibility work environment Completeness of the design / Time to implement © Copyright 2009. F1 Strategy, LLC. All rights reserved. Printed on Tuesday, November 17, 2009 Page 17