[email protected] Easy, intuitive importing of external databasesEasy, intuitive importing of external databases Stratification

[email protected] www.Level1Loans.com

• Easy, intuitive importing of external databasesEasy, intuitive importing of external databases

• Stratification capability down to the loan levelStratification capability down to the loan level

• Open, infinitely flexible, table driven static & vectored valuation assumptionsOpen, infinitely flexible, table driven static & vectored valuation assumptions

• Enterprise-wide, yet secure, reporting and analysis capabilityEnterprise-wide, yet secure, reporting and analysis capability

• Complete FAS 140 reportingComplete FAS 140 reporting

• Exhaustive data integrity checking capabilityExhaustive data integrity checking capability

Financial Management Software for Mortgage AssetsFinancial Management Software for Mortgage Assets

A complete, integrated, Servicing Financial Management System currently A complete, integrated, Servicing Financial Management System currently used by servicers with as few as 500 loans to over 5,000,000.used by servicers with as few as 500 loans to over 5,000,000.

Servicing Financial Management SystemServicing Financial Management System

Two versions availableTwo versions available: web-enabled (: web-enabled (v7.1v7.1) and desktop () and desktop (v5.9v5.9))


The 5.9 The 5.9 TransformerTransformer converts EBCDIC, ASCII or converts EBCDIC, ASCII or binary data to a Level 1 compatible database.binary data to a Level 1 compatible database.

See raw data as it See raw data as it appears on the tapeappears on the tape

Map only fields required Map only fields required for the analysisfor the analysis

Handles compressed Handles compressed data alsodata also


1) To map a field click 1) To map a field click on the on the SourceSource field that field that

matches the Asset matches the Asset Onsite Onsite TargetTarget field field

2) Click on “2) Click on “AddAdd” and ” and the fields are Mappedthe fields are Mapped

The 7.1 The 7.1 TransformerTransformer converts EBCDIC, ASCII or binary data to converts EBCDIC, ASCII or binary data to a Level 1 compatible database through a point & click GUI.a Level 1 compatible database through a point & click GUI.


Data can be manipulated and Data can be manipulated and convert source data through convert source data through

simple VB Script wizardssimple VB Script wizards

Source fields are Source fields are mappedmapped to to common Asset OnSite fieldscommon Asset OnSite fields


Filter out data such as Auto

Loans

Develop and save often used scripts such as “Avg of 3

credit scores”


Level 1 MSRs Level 1 MSRs 7.17.1 System is available through the Internet System is available through the Internet Explorer icon on your desktop. Explorer icon on your desktop.

This SQL based system can reside either on your server This SQL based system can reside either on your server or ours. Additionally, it will soon be available on an “ASP” or ours. Additionally, it will soon be available on an “ASP” basis, where all of the work of data conversion and table basis, where all of the work of data conversion and table maintenance is done by the Servicing Source, but the maintenance is done by the Servicing Source, but the valuation itself is performed by you. valuation itself is performed by you.


Level 1 MSRs Level 1 MSRs 5.95.9 resides on your desktop and can access resides on your desktop and can access data that is either local on a server to be shared. data that is either local on a server to be shared.

This system produces and uses tables formatted as DBFsThis system produces and uses tables formatted as DBFs

Both systems allow for ease in “digging in” to the underlying data and assumptions.Both systems allow for ease in “digging in” to the underlying data and assumptions.


Busch - Overview

Level 1 MSRs provides independent modules to help manage loan Level 1 MSRs provides independent modules to help manage loan andand servicing portfolios: servicing portfolios:

StratifierStratifier – parses portfolio into user defined – parses portfolio into user defined homogenous subsets down to the LOAN LEVELhomogenous subsets down to the LOAN LEVEL

TranslatorTranslator – manages and creates almost limitless – manages and creates almost limitless assumptions tables to reflect the idiosyncrasies of assumptions tables to reflect the idiosyncrasies of a portfolio - applies them to the stratified portfolioa portfolio - applies them to the stratified portfolio

EvaluatorEvaluator – calculates the portfolios cash flows and – calculates the portfolios cash flows and valuation metricsvaluation metrics

BridgeBridge – creates permanent FAS 140/156 sub- – creates permanent FAS 140/156 sub-ledger entries ledger entries

7.17.1

5.95.9


Busch - Overview







Excess #4Excess #4Excess #4Excess #4 Excess #4 Excess #4 Excess #4Excess #4

Loan #1 Loan #2 Loan #3 Loan #4 Loan #5 Loan #6 Loan #7 Loan #8

Super Loan #1 Super Loan #2 Super Loan #3

Mini-Portfolio #1 e.g. OMSR

Mini-Portfolio #2 e.g. PMSR =

Super Loan #4

Impairment Tranches

Aggregated OMSR’s

Mask: - PMSR post 122 - OMSR post 122 - PMSR pre 122 - OMSR pre 122

Impairment Tranches PMSR’s

Bring basis in on Minis

Stratifier

Stratify at the loan or super-loan level for valuation and analytical purposesStratify at the loan or super-loan level for valuation and analytical purposes

Bring MSR basis in at the mini-portfolio level (e.g. acquisition)Bring MSR basis in at the mini-portfolio level (e.g. acquisition)Perform FAS 140 Impairment Testing at Impairment Tranche LevelPerform FAS 140 Impairment Testing at Impairment Tranche Level

Insure the proper accounting treatment of each TrancheInsure the proper accounting treatment of each Tranche

The The StratifierStratifier is a powerful tool that allows tremendous flexibility in defining how your is a powerful tool that allows tremendous flexibility in defining how your portfolio is to be aggregated for a variety of disparate purposes.portfolio is to be aggregated for a variety of disparate purposes.

This assures consistency This assures consistency “in MSA valuation assumptions used in “in MSA valuation assumptions used in valuation, bidding, pricing, and hedging activities as well as, where valuation, bidding, pricing, and hedging activities as well as, where

relevant, in mortgage-related activities in other aspects of an relevant, in mortgage-related activities in other aspects of an institution’s business” as required by the FDIC.institution’s business” as required by the FDIC.


Value at the loan levelValue at the loan level

Perform GAAP and Tax analyses; break out excess servicing using mini keysPerform GAAP and Tax analyses; break out excess servicing using mini keysHandle a wide variety of exception reportingHandle a wide variety of exception reporting

… … and much moreand much more

Each stratification run can be saved for future use!Each stratification run can be saved for future use!

Additionally, if desired: Additionally, if desired:

Update tables: investor remittance, state, etc.Update tables: investor remittance, state, etc.


Busch - Overview







AG CODE TYPE AG TITLE Recourse LOAN CATEGORY LOAN TYPEAFF 110WR GNMA I IR With Recourse Govt Residential Firsts FixedCFF 130WR GNMA II With Recourse Govt Residential Firsts FixedGCF 210NR FNMA MBS No Recourse Conventional Residential Firsts FixedICA 250NR FNMA WHOLE No Recourse Conventional Residential Firsts ARMICF 250NR FNMA WHOLE No Recourse Conventional Residential Firsts FixedIFF 250NR FNMA WHOLE No Recourse Govt Residential Firsts FixedKCF 340NR FHLMC STANDARD No Recourse Conventional Residential Firsts FixedLCA 360NR FHLMC ARC No Recourse Conventional Residential Firsts ARMLCF 360NR FHLMC ARC No Recourse Conventional Residential Firsts FixedLCf 360NR FHLMC ARC No Recourse Conventional Residential Firsts BalloonsPCF 440NR HSG AGENCY No Recourse Conventional Residential Firsts FixedPFF 440NR HSG AGENCY No Recourse Govt Residential Firsts FixedPMF 440NR HSG AGENCY No Recourse Conventional Multi-Family Firsts FixedPMf 440NR HSG AGENCY No Recourse Conventional Multi-Family Firsts BalloonsTAF 540NR PRIVATE No Recourse Jumbo Residential Firsts Fixed

Any combination of Assumption Variables can be applied to any combination Any combination of Assumption Variables can be applied to any combination of Loan Attributes to tailor the valuation to the idiosyncrasies of your portfolioof Loan Attributes to tailor the valuation to the idiosyncrasies of your portfolio

Level 1 MSR automatically calculates all combinations of the Loan Attributes Level 1 MSR automatically calculates all combinations of the Loan Attributes chosen to afford the ultimate flexibility in assigning Assumption Variableschosen to afford the ultimate flexibility in assigning Assumption Variables

Additionally ….Additionally ….

In the Translator:In the Translator:

5.9 assumptions 5.9 assumptions are driven by are driven by

Aggregation CodeAggregation Code

7.1 assumptions 7.1 assumptions are driven by loan are driven by loan

attributesattributes


The 7.1 Translator maintains a complete history of translation runs and affords The 7.1 Translator maintains a complete history of translation runs and affords the user the option to lock runs for future reference when they are completethe user the option to lock runs for future reference when they are complete


Busch - Overview







The Evaluator takes the “translated” data and calculates cash flows and The Evaluator takes the “translated” data and calculates cash flows and values. A wide variety of valuation reports are generated for review. Each values. A wide variety of valuation reports are generated for review. Each

run can be saved for future reference …. run can be saved for future reference ….


Parameters and values Parameters and values on individual trancheson individual tranches can be reviewed for can be reviewed for reasonableness and accuracy. Modification to tranche level assumptions reasonableness and accuracy. Modification to tranche level assumptions

can then be made ...can then be made ...

7.1 Evaluator 7.1 Evaluator ScreenScreen

5.9 Evaluator 5.9 Evaluator ScreenScreen


All valuation assumptions can be reviewed on an individual tranche level, All valuation assumptions can be reviewed on an individual tranche level, changed and rerun.changed and rerun.

… … additionallyadditionally

… … many assumptions can be vectored over time through the use of tablesmany assumptions can be vectored over time through the use of tables… … oror

Calculated based on functions such as P&I times 5%Calculated based on functions such as P&I times 5%


Busch - Overview







Tremendous flexibility in the Bridge setup to Tremendous flexibility in the Bridge setup to insure the model follows the clients approved insure the model follows the clients approved accounting methodologies.accounting methodologies.

The Bridge utilizes sequential processing to The Bridge utilizes sequential processing to minimize chance of accounting errors; no step minimize chance of accounting errors; no step can be performed until the prior one is can be performed until the prior one is complete and correctcomplete and correct

PRIOR PERIODS can be adjusted for unusual PRIOR PERIODS can be adjusted for unusual occurrences. However, all adjustments are occurrences. However, all adjustments are noted in the Bridge reportsnoted in the Bridge reports


Import book basis on an impairment tranche levelImport book basis on an impairment tranche levelRe-evaluate portfolio value based on updated basesRe-evaluate portfolio value based on updated bases

Update current month’s portfolio for both updated Update current month’s portfolio for both updated book and market valuesbook and market values

Set accounting masks based on MSR type and Set accounting masks based on MSR type and origination date origination date

New periodNew period


Produce Produce impairmentimpairment trial balances trial balances and and amortizationamortization schedules in a wide variety of formatsschedules in a wide variety of formats





Canned and custom reports detail new loans added, Canned and custom reports detail new loans added, sold, written-off, and all the other categories needed sold, written-off, and all the other categories needed for monthly reconciliationfor monthly reconciliation






Upon completion of the reconciliation, lock sub-Upon completion of the reconciliation, lock sub-ledgers for the period.ledgers for the period.

Canned and custom reports detail new loans added, Canned and custom reports detail new loans added, sold, written-off, and all the other categories needed sold, written-off, and all the other categories needed for monthly reconciliationfor monthly reconciliation






Large array of Large array of pre-formatted pre-formatted

reportsreportsUser defined ranges User defined ranges of many variablesof many variablesUser friendly multitude User friendly multitude

of standard reportsof standard reports

Because underlying database is in a DBF format, Because underlying database is in a DBF format, customized reporting is easy and accuratecustomized reporting is easy and accurate

Reporting in 5.9


Click hereClick here

Asset OnSiteAsset OnSite provides 7.1 Level 1 users unparalleled and totally secure, enterprise- provides 7.1 Level 1 users unparalleled and totally secure, enterprise-wide reporting and analysis.wide reporting and analysis.Review summary statistics on any portfolio maintained in Asset OnSiteReview summary statistics on any portfolio maintained in Asset OnSite

Review canned reports, such as Interest Rate stratification, at the touch of a blue buttonReview canned reports, such as Interest Rate stratification, at the touch of a blue button

Reporting in 7.1


Change column headings to any field on the valuation tape including values and assumptions: weighted average, average or sum

Build custom reports that reflect single, double, or more sorts. All reports can be viewed online, exported, or printed in PDF

Create and save filters to show only the pieces of the portfolio you are interested in. Convert them to pools for distribution to others.

Drill down to loan level on any stratification. Explore the underlying data fields to explore any perceived anomalies.

Because underlying database is in SQL format, Because underlying database is in SQL format, customized reporting is easy and accuratecustomized reporting is easy and accurate


• Easy, intuitive importing of external databasesEasy, intuitive importing of external databases

• Stratification capability down to the loan levelStratification capability down to the loan level

• Open, infinitely flexible, table driven static & vectored valuation assumptionsOpen, infinitely flexible, table driven static & vectored valuation assumptions

• Enterprise-wide, yet secure, reporting and analysis capabilityEnterprise-wide, yet secure, reporting and analysis capability

• Complete FAS 140 reportingComplete FAS 140 reporting

• Exhaustive data integrity checking capabilityExhaustive data integrity checking capability


A complete, integrated, Servicing Financial Management System currently A complete, integrated, Servicing Financial Management System currently used by servicers with as few as 500 loans to over 5,000,000.used by servicers with as few as 500 loans to over 5,000,000.

Servicing Financial Management SystemServicing Financial Management System

Two versions availableTwo versions available: web-enabled (: web-enabled (v7.1v7.1) and desktop () and desktop (v5.9v5.9))

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[email protected] Easy, intuitive importing of external databasesEasy, intuitive importing of external databases Stratification