The document summarizes the Homeowner Affordability and Stability Plan which provides assistance to homeowners who are facing financial hardship. It outlines the eligibility requirements, how the program works to reduce monthly mortgage payments to 31% of gross income by sharing costs with lenders and servicers, and answers common borrower questions about terms, rates, fees and the application process.

1. Homeowner Affordability and Stability Plan February 18 th , 2009

2. Eligibility Requirements Owner occupied – primary residence only Monthly payment exceeds 31% of gross income Behind or current on payments Fannie Mae or Freddie Mac conforming loans New first cannot exceed 105% of market value Second, if any, must agree to remain second

3. How it works Lender must agree to reduce interest to reduce monthly payment to 38% of gross income. Government will share cost of a further reduction of payment from 38% to 31% of gross income. Servicers receive $1,000 for reworking a loan and $1,000 for each year the borrower remains current. Borrowers receive $500 if already current and up to $1,000 per year for remaining current.

4. Borrower Questions Will the program lower my principal? – No. Will the program lower my payments? – Maybe. What will my new terms be? – 15 or 30 year fixed. What will my new rate be? – Up to lender. Will I have to pay points and fees? – Up to lender. How do I know if I am eligible? How can I apply? - Contact your lender after March 4 th .

5. Is that it? Program details will be released on March 4 th . Stay tuned…

6. Thank You for choosing Altera Real Estate!