SERVICING OPERATIONS

Countrywide is the largest, most technologically advanced and efficient mortgage servicer ever created. Our loan servicing group with approximately 7,800 employees is divided into distinct functional divisions adept at managing specialized processes throughout the life of a mortgage loan. Our focus is to provide the highest level of service to our investors and partners while protecting portfolio assets and managing risks. You will find the common theme of excellence in each functional area. Our ability to achieve success has been based on the execution of our core strategy; balancing quality and efficiency through process innovation; or simply: EVALUATE, INNOVATE, CELEBRATE. The core seven principles that guide our entire staff are:

1. Demonstrate Integrity
2. Be a Positive Influence
3. Be an Agent of Change
4. Measure Everything
5. Know the Details
6. Maintain Customer Focus
7. Envision Growth

To learn more about our servicing capabilities, choose the business unit below:

• Customer Service
• Default Management (Collections/Foreclosure)
• Escrow Management (Tax/Insurance)
• Payment Processing
• Investor Accounting
• Loan Boarding
• Facilities

CUSTOMER SERVICE

Our advanced inbound call system identifies the caller through caller ID to match the customer's phone number and loan number. Caller's information is instantly reviewed for recent account activity, with the most recent transactions proactively "pushed" to the customer.

Customer Service offers a One-Stop Shop to provide information to customers without having to transfer them to different departments with the exception of severe delinquency and loss claim calls.

Our convenient web site is accessible 24/7 where customers can view their transaction history as well as schedule a payment. Customers can create a user name and password and receive eStatements as an added convenience on our secure site. Click here to view a self-guided tour.

Call Center Features:

• Internet integrated servicing system
• Six servicing centers providing complete back-up and disaster recovery
• Intuitive Voice Response (IVR) system
• 24/7 telephone and internet account access
• Flexible electronic payment options
• Convenient extended call center hours for your customers ( 7 a.m. to 7 p.m. CST)
• Intuitive "Smart Call Routing" technology based on recent acct. activity
• Friendly and experienced customer service representatives
• Call balancing between servicing sites
• Real time account information
• Low average speed of answer

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DEFAULT MANAGEMENT (Collections/Foreclosure)

We specialize in the servicing of non-performing loans and manage a balance between providing payment options to the homeowner while protecting your valuable assets. Our loan counselors have thorough working knowledge of and comply with the Federal Fair Debt Collection Practices Act, RESPA, Fannie Mae, Freddie Mac, HUD, VA and PMI requirements.

Units within Default Administration specialize in certain asset qualities and product types. We find that specialization is warranted given the diverse portfolio we service. However, we still leverage the entire platform in areas where that specialization isn't necessary.

In each specialized unit (i.e., government, conventional, subprime) loan counselors work delinquent loans on a daily basis utilizing advanced call campaign building technology that maximizes contact with the borrowers and our effectiveness with our collection call activity. Advanced profiling systems have also been developed to assist the loan counselors through the conversation, enhancing the effectiveness of the interaction with the borrower. The customer profile includes the borrower payment history, collateral value, trends, and risk profile scores. In a joint effort between Collections and Loss Mitigation to cure defaults, the Loss Mitigation team solicits mortgagors offering workout options in accordance with investor, agency or business partner guidelines.

Should loans remain in default and proceed to foreclosure the objective of the Foreclosure unit is to process the foreclosure action as quickly as possible, while the Loss Mitigation units work with the customer to search for alternatives to foreclosure. We adhere to all state, investor, and insurer regulations. For insured loans after foreclosure sale, the unit prepares the property for conveyance, handles evictions, delivers title, and files claims in a timely manner to prevent interest curtailments.

If a mortgagor is under bankruptcy protection the Bankruptcy unit effectively manages the bankruptcy affected loan according to investor, insurer and business partner guidelines and seeks relief from the automatic stay on non-performing loans.

For conventional loans not conveyed to third parties that must be marketed and sold, Countrywide manages one of the largest REO portfolios in the industry. We employ sophisticated methods for monitoring market trends and brokers and have procedures in place to guard against fraud. This monitoring and expertise combined with in-house review appraisers helps us to reach our goal of greater returns, decreased loss severity and rapid turnover of assets for investors and business partners.

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ESCROW MANAGEMENT (Tax/Insurance)

Countrywide's Escrow Management is composed of four different business units: Tax, Insurance Tracking, MIP/PMI and Escrow Analysis. As your subservicer, Countrywide's priority is to protect your interest in the collateral from potential losses; which is an integral part to escrow management. Countrywide monitors and manages timely disbursements of real estate property taxes, hazard insurance, flood, and mortgage insurance through its affiliated companies known as Countrywide Tax Service Corporation and Balboa Casualty & Life.

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PAYMENT PROCESSING

Countrywide offers three internal lockboxes (located in California and Texas) and processes 5.3 million transactions per month. Eighty percent of all transactions are posted before 8:30A.M. each day and all payments are processed on the day of receipt. Processing payments internally enables us to post most rejected payments the same day, whereas most other subservicers wait 24-48 hours to receive rejects from their lockboxes and then process them.

Countrywide uses state-of-the-art processing machines which are capable of processing approximately 10,000 checks per hour. The process involves the extraction of the check and the coupon from the envelope, capturing a digital image of the check and coupon - including the scan line (which contains the loan number and payment amount). The machine also captures the numeric and legal amounts on the check, as well as, the MICR (Magnetic Ink Character Recognition) line. Images of the checks are available the next morning and can be accessed by other Loan Servicing departments. Images are then stored on a DVD and sent to storage off-site.

Once the payment has been processed, data is uploaded to Countrywide's servicing system six times each day. This ensures that the various loan servicing departments are always providing the most up-to-date information to the customers. We also interface with the U.S. postal service utilizing bar codes on our statements. We know when the "checks is in the mail", and the information is shared with our collections division.

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INVESTOR ACCOUNTING

Investor Accounting is responsible for complying with the investors' guidelines in reporting, remitting and reconciling. The department reports results according to various remittance methods including: actual principal-actual interest, actual principal-scheduled interest and scheduled principal-scheduled interest. Investor Accounting then remits the funds to the investors based on the reconciled cutoff reporting. Finally, Investor Accounting reconciles the Principal and Interest and Escrow custodial accounts.

The major investors serviced by Investor Accounting include the secondary marketing agencies Fannie Mae, Ginnie Mae, and Freddie Mac. In addition to the agency investors, we service loans for over 600 private investors or, Non-Government Sponsored Enterprises (Non-GSE). Deals serviced by the Non-GSE reporting units include Negotiated, Bond, HELOC, B&C securities, Conduit, and whole loan portfolios

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LOAN BOARDING

Unlike other subservicers, Countrywide does not outsource the acquisition process to third parties, such as service bureaus, resulting in a more expedient and fluid loan boarding process. Portfolio Services leverages on behalf of its business partners a Loan Acquisitions Department consisting of over 90 professionals with decades of conversion experience. A dedicated team is established for each of Countrywide's Subservicing Business Partners from collaborative planning sessions at the business partner's site through final conversion.

Countrywide offers its business partners a proven track record of interfacing with business partners and successfully boarding small to very large and complex transactions. Our detailed implementation and conversion plan involves all parties in the implementation and has been successfully used in numerous previous boardings.

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TECHNOLOGY

Countrywide offers multiple mirrored state-of-the-art operational facilities in three states (Texas, California, and Arizona). These facilities are completely fail-over redundant, ensuring your business continuity. This redundancy includes both staffing (full-time operations employees performing the lockbox functions, collections, customer service, foreclosure, etc.) as well as the computer platform (telephony, uninterrupted power supplies, diesel generators, server farms and mainframes). These extensive disaster recovery capabilities are tested regularly.

Our servicing platform is based on a proprietary IBM AS/400 iSeries 32-way processor, 256GB, Power 4 model 890 system. The current operating system is V5R2, and the overall servicing DASD capacity is 7.8 terabytes.

The Countrywide Loan Servicing computer environment is one of the largest IBM AS/400 sites in the world. Countrywide is committed to being on the leading edge of technology and unlike other mortgage servicers and subservicers Countrywide is not dependant upon an outside service bureau like Fidelity or Fiserv. Dependent on your companies needs, Countrywide can develop a customized solution involving system to system interfaces to address security (T-1 connectivity), data mining, and customer service requirements.

We have designed our servicing systems to provide the greatest amount of flexibility. Within each system, business rules are often table driven, rather than hard coded, allowing for quick business rule updates upon acquisition of new portfolios.

Countrywide's system is currently supporting more than 9 million loans and has been internally certified at 15+ million loans.

DATA SECURITY

Your financial institution's data is protected by extensive security measures including physical perimeter barriers, network access barriers, user authentication filters and activity tracking.

Countrywide has developed and implemented administrative, technical, and physical safeguards to protect the security, confidentiality, and integrity of corporate assets and customer information. The Program is also designed to satisfy the numerous laws and regulations governing the privacy and security of customer information of financial services organizations both in the U.S. and internationally.

To address these requirements, Countrywide has based its policies, standards, guidelines and procedures on the ISO 17799 standards. These standards provide the framework for a comprehensive and strong program. In developing the Program, CFC has augmented the ISO standards with additional policies, standards, guidelines and procedures necessary to meet the requirements of various laws and regulations. These requirements include Title V of the Gramm-Leach-Bliley Act (GLB); the European Union Data Protection Directives (EU Directives); the Interagency Guidelines Establishing Standards for Safeguarding Customer Information; various bulletins issued by the Office of the Comptroller of the Currency (OCC); the Federal Financial Institutions Examination Council (FFIEC); and the Health Insurance Portability and Accountability Act (HIPAA).

Countrywide has established a 13-objective control security policy to protect data on our system. These objectives are:

• Policy Governance
• Asset Classification and Control
• Personnel Security
• Physical and Environmental Security
• Communications and Operations Management
• Network Services Security
• Access Controls
• Systems Development and Maintenance
• Business Continuity Management
• Compliance
• Threat Management
• Risk Management
• Oversight of Service Providers

REPUTATION

Countrywide's strength grew from a singular vision of what this business could be if people and technology were freed to do all they were capable of. That vision has lead to impressive results.

You don't have to take our word for it. Please review some of the external accolades and achievements bestowed or earned by Countrywide.

• Freddie Mac Hall of Fame
• Freddie Mac Tier One Platinum
• Ginnie Mae Master Subservicer
• Fortune - One of America's Most Admired Companies
• Forbes 2000
• Barron's 500
• Fortune 500
• Member of S&P 500

BRANDING OPTIONS

We recognize the importance of customer retention and relationship building. Countrywide offers a full range of client branding options to meet your specific needs. We can provide your customers with monthly account statements with your brand identity and customized message, and as an added feature, we can include promotional material to optimize your cross-selling efforts. You can also rest assured that your customers will never be solicited by Countrywide or its affiliates.

To meet the needs of our business partners, Countrywide offers three types of branding options:

Private Label Branded - Your portfolio is subserviced exclusively with your company's identity. Customer service, collections, written correspondence and any interaction with your customers is done in the name of your company. See Example.

Countrywide Branded - All servicing activities are conducted in Countrywide's name and identity. See Example.

Co-Branded - A perfect blend of both Private Label and Countrywide Branding. Your portfolio is identified to the customer with your logo and identity, accompanied with a "tag line" that mentions Countrywide as the subservicer. See Example.

MORTGAGE PRODUCTS

Countrywide has developed the expertise, processes and proprietary systems that have made us a diversified financial services provider. With our flexible, fully integrated systems, we are not limited to the servicing constraints of outside service bureaus. This flexibility allows us to make system changes as needed to accommodate new products and servicing requirements.

Through our efficiencies, capacity and advanced technology, we are able to handle a broad range of loan products and servicing requirements including:

• Conventional Fixed-Rate Mortgages
• Conventional Adjustable-Rate Mortgages
• ALT A Mortgages
• Government (FHA, VA)
• Subprime Mortgages
• Bond Programs
• High LTV Mortgages
• Closed-End Home Equity
• Home Equity Line of Credit (HELOC)
• Construction Loans
• Title 1 Mortgages
• Jumbo
• Pay Option ARMS

PARTNERSHIP SUPPORT

Countrywide has impressive services, reputation, and operations, but you may still wonder how all of that can be put to work for you and your organization.

Countrywide's Portfolio Services Division exists to partner with external parties in leveraging Countrywide. Your initial contact with Portfolio Services will be with a "Business Development Executive," who has extensive experience in servicing administration and in providing servicing solutions to diverse clientele.

Our Business Development Managers are consultants interested in making sure you are gaining the greatest benefit in your investment in servicing. We offer free evaluations to interested parties on whether subservicing may makes sense for them. We understand that it's not just an economic decision and our Business Development Managers will work closely with you to understand all of the reasons you may want to outsource.

We want to understand all of your unique needs and absorb your corporate culture so we can provide you the best possible servicing solution. A subservicing relationship is long term and based on the trust you have in Countrywide, the individuals at Countrywide that make up your Account Management Team and the expectations you have for the relationship.

Fully defining your needs and expectations will enable the Business Development Manager to tailor a subservicing solution that takes full advantage of our platforms flexibility and the diversity of services we offer. It's a critical period, but really just the beginning of the relationship.

After defining the solution, the Account Management Team starts its implementation work. A team of seasoned individuals in cross-functional areas is dedicated to ensuring a smooth implementation and a dedicated Account Manager is put in place who will act as your liaison for the entire life of the business partnership.

Countrywide Portfolio Services maintains a very low business partner to Account Manager ratio to ensure that we are providing the best possible service. We are committed to having a diverse, but limited number of business partners. The goal is not to have the most subservicing clients in the industry, just the best served.

Given the commitment of Countrywide at a corporate level to business partnerships, the Portfolio Services Division has plenty of leverage to ensure that each of our subservicing business partners and their customers are receiving the best possible service from the various functional areas. Your specific Account Manager is a seasoned professional that works closely with the Loan Servicing Operational areas to make sure your unique needs are satisfied. Your Account Manager will act as your central point of contact.

Countrywide Portfolio Services also offers the most comprehensive, user-friendly secure web site available for its business partners. All you need is a web browser and you and the people you designate within your organization can obtain all of the information you need to manage your portfolio. The following information is available to you 24 hour per day, 7 days per week:

• Aggregate portfolio information
• Loan level information
• All of your standard or customized reports
• Access to screens on which mortgagor comments are available Imaged documents

Click here to view a demo of the Business Partner Website.

We hope that you will agree that Portfolio Services, from initial contact, throughout the life of the business partnership provides you the best, most proactive service available. If you haven't done so already, please contact us.