CheckMyNPV.com Glossary A B C D E F H I M N O P R T U

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1 CheckMyNPV.com Glossary A B C D E F H I M N O P R T U Amortization Term of the Proposed Modification The number of principal and interest payments you will be required to make if you receive a HAMP modification. Borrower Credit Score Your credit score as provided by one or more of the three national credit reporting agencies. Your credit score must be within 90 days of the date of the NPV evaluation date. Capitalized UPB Amount When including all outstanding principal, accrued interest, and/or escrow advances to the unpaid principal balance, this is called capitalization. The amount shown is the capitalized UPB amount as of the data collection date. Co-Borrower Credit Score If a co-borrower is listed on the mortgage, the co-borrower's credit score as provided by one or more of the three national credit reporting agencies. If there is no co-borrower on the loan, do not enter a value in this field. Note: The credit score must be within 90 days of the date of the NPV evaluation date. Data Collection Date The as of date for critical mortgage information, in particular the Unpaid Principal Balance, of your mortgage. This date must be within 90 days of the date the NPV evaluation is conducted. Discount Rate The rate used to discount or to find the present value of a future cash flow. For the owner of a mortgage loan (the investor), the mortgage is a series of future cash payments expected from the homeowner. The promise of a payment in the future is worth less to the investor than cash today, how much less will depend on the discount rate. For example, a $1,000 payment in one year would be worth about $952 today using a 5% discount rate, and that same $1,000 payment in a year would be worth about $800 today using a 25% discount rate. CheckMyNPV.com, in accordance with HAMP guidance, uses the Freddie Mac Primary Mortgage Market Survey rate plus the Discount Rate Risk Premium as the discount rate for the NPV evaluation. Discount Rate Risk Premium (DRRP) An amount added to the Freddie Mac Primary Mortgage Market Survey (PMMS) rate to create the discount rate for HAMP NPV evaluations. This value can vary from 0% to 2.5%. A mortgage servicer determines this value based on an assessment of the risk of its portfolio of mortgage loans. A mortgage servicer s DRRP is proprietary information and not publicly shared. CheckMyNPV.com s default value of 0% will produce the most favorable NPV result. You may wish to run the calculator a second time using 2.5% to compare the results.

2 Escrow Account A mortgage servicer-held account where you deposit funds monthly, ie escrow payments, to be used to pay for taxes and insurance (and potentially other expenses) of your home. The escrow payments typically are included as part of your monthly mortgage payments. With the funds paid into your escrow account your mortgage servicer pays your taxes and insurance as they become due during the year. If you do not have an escrow account, you are responsible for paying your taxes and insurance and budgeting accordingly. Escrow Analysis A periodic review of escrow accounts to make sure that there are sufficient funds to pay the real estate taxes and insurance for hazard and flood on a home when they are due. The monthly escrow payment made by the homeowner may be changed by the servicer as needed to ensure adequate funds. Escrow Shortage The annual amount your escrow account lacks in funds to cover anticipated expenses for real estate taxes, hazard and flood insurance, and other expenses or escrow advances made by your mortgage servicer on your behalf. (Escrow advances are provided by your servicer when your escrow account is short of funds.) The escrow analysis determines the escrow shortage amount and sets a monthly escrow shortage payment to recover the needed funds. First Payment Date The date the first regular monthly payment on your mortgage was due. Fixed Rate Mortgage A mortgage in which the interest rate and monthly principal and interest payment do not change for the life of the loan. Adjustable rate mortgages (ARMs), interest only loans, payment option loans, and balloon payment loans are not considered to be fixed rate mortgages. HAMP Tier 2 Modification An extension to the original HAMP Modification Program initiated in 2009 (HAMP Tier 1) through December 31, Through expanded eligibility, criteria this also allows borrowers who did not meet the original HAMP Modification Eligibility criteria another opportunity to receive a HAMP Modification. Hazard and Flood Insurance Insurance that is generally required under mortgage contracts to pay for loss or damage to your home or property. Hazard (also known as homeowners) and flood insurance may be part of your monthly escrow payment. Homeowner Association Fees The dues and fees charged by your homeowner or condominium association for shared expenses on common areas and other community financial obligations. Imminent Default Your mortgage servicer may consider you to be in imminent default if you are current or less than 60 days past due on your mortgage, and have suffered a hardship (e.g.: reduction in income) that puts you at risk of not making any future mortgage payments. Interest Rate of the Proposed Modification The starting interest rate of the proposed HAMP modification. This rate would be fixed for at least the first five years of the modification.

3 Interest Rate of Your Mortgage The interest rate on your mortgage as of the Data Collection Date. Investor The owner of the mortgage. If you are unsure who your investor is, you may visit the Fannie Mae Loan Lookup and/or Freddie Mac Loan Lookup to see if either is your investor. If your investor is not Fannie Mae or Freddie Mac, it will be considered Other for CheckMyNPV.com. Loan-to-Value (LTV) Ratio The outstanding principal amount of the loan divided by the appraised value of the property underlying the loan. Modification Fees Paid by Investor The total amount of fees and costs that would be paid by your investor if you receive a HAMP modification. Such expenses include notary fees, property valuation and credit report. Monthly Gross Income The total amount of monthly income from all borrowers on the loan, before any taxes or other deductions. Need help calculating your Monthly Gross Income? Monthly Gross Rental Income The total amount of monthly rental income received for the property owned by the borrower on the loan, prior to the deduction of any costs or expenses. Monthly Payment Refers to what you pay on a monthly basis for principal, interest, real estate taxes, hazard and flood insurance and, if applicable, homeowners association fees. Do not include any payments on your second mortgage as only your first, or primary, mortgage is modified under HAMP. For more information about your monthly payment, visit Frequently Asked Questions Months Past Due The number of mortgage payments you would need to make in order for your mortgage to be considered "current", as of the Data Collection Date. Mortgage Insurance Coverage Percent Mortgage insurance covers a percentage of the original loan amount for losses when net proceeds on the sale of a foreclosed property do not cover the amount owed. This varies based on the original loan-to-value (LTV) and other risk factors. You may use the following calculation to estimate your Mortgage Insurance Coverage Percent: Step 1: Calculate your original LTV Original LTV = Original loan amount divided by the property value when you got your mortgage Step 2: Estimate your Mortgage Insurance Coverage Percent If original LTV was less than or equal to 80, enter 0 If original LTV was greater than 80 but less than 85, enter 8 If original LTV was greater than 85 but less than 90, enter 20 If original LTV was greater than 90 but less than 95, enter 30 If original LTV was greater than 95 and up to 100, enter 35

4 Mortgage Insurance Partial Claim Amount Mortgage insurance covers a percentage of the original loan amount for losses when net proceeds on the sale of a foreclosed property do not cover the amount owed. The mortgage insurance firm may provide a partial claim amount, if you receive a HAMP modification. Mortgage Servicer A financial institution that services a mortgage. It works on behalf of an investor in support of a mortgage, including by collecting mortgage payments, ensuring payment of taxes and insurance, managing escrow accounts, managing communications with the homeowner, and managing loss mitigation and foreclosure when necessary. You can find your servicer's name on your monthly statement or coupon book. Next Payment Reset Date The date on which your next principal and interest payment reset is due to occur, relative to the Data Collection Date. Note, this payment reset should not be confused with an escrow payment change given in an escrow analysis. This information can be found in your original loan documents (such as Truth in Lending, ARM Rider, or Note) or in a loan payment change notice from your servicer. Next Reset Rate The expected interest rate on your mortgage at the Next Payment Reset Date. Calculation of Next Reset Rate is dependent upon many factors that are specific to your mortgage. Net Present Value (NPV) Net present value (NPV) refers to the value today of a cash-generating investment, such as a bond or a mortgage. When investors are faced with two alternative investment options, they prefer the one that has a higher net present value. In the context of a distressed mortgage, the investment options an investor faces is whether to modify a mortgage or leave as is, and the investor will prefer the option that has the higher net present value. NPV Date The date that the HAMP Net Present Value evaluation was conducted on your mortgage. Occupancy Indicates whether or not the borrower listed on the mortgage is currently residing in the property as his/her principal residence. If the borrower is currently residing in the property as his/her principal residence, they will first be evaluated for a HAMP Tier 1 Modification prior to a HAMP Tier 2 Modification. If a borrower is not currently residing in the property as his/her principal residence, they will first be considered for a HAMP Tier 2 Modification. Non-owner occupied properties are not eligible for a HAMP Tier 1 Modification. Original Loan Amount The amount of your mortgage at the time it was originated (i.e. the amount you borrowed). Primary Mortgage Market Survey (PMMS) Rate The Primary Mortgage Market Survey (PMMS) Rate for 30 year conforming loans, published weekly by Freddie Mac. In accordance with HAMP guidance on NPV evaluation, CheckMyNPV.com uses the PMMS rate as the basis for the discount rate in the net present value calculation.

5 Principal and Interest The portion of your monthly mortgage payment used to pay both the principal and interest on your mortgage loan, as of the Data Collection Date. This can be found on your monthly mortgage statement. It does not include taxes, insurance, homeowners association fees, or other components of your mortgage payment. This is the primary component of your mortgage payment. It includes both of the following: A monthly amount that goes toward paying off the principal of the loan (the money you've borrowed), and A monthly amount that goes toward interest (the cost of borrowing the money). Your monthly principal and interest amount can change if you do not have a fixed rate mortgage. Principal and Interest Payment of the Proposed Modification The amount of the monthly principal and interest payment if you receive a HAMP modification. This payment would be fixed for at least the first five years after modification, and does not include other payment components, such as taxes, insurance, and homeowners association dues and fees. Principal Forbearance Amount of the Proposed Modification The portion of your mortgage balance on which you would NOT pay interest if you receive a HAMP modification. You would still owe this amount, but you would not be charged interest and no payments would be due until you paid off your loan. Principal Forgiveness Amount of the Proposed Modification The amount of principal your investor may be willing to forgive if you receive a HAMP modification. Since principal forgiveness is at the servicer s discretion (and in accordance to investor guidelines) CheckMyNPV.com does not incorporate this component for a potential HAMP modification. Property State The two-letter state abbreviation for the state or territory in which the property is located. Property Valuation Type The method by which the property value was obtained for the NPV evaluation. Interior BPO / Appraisal: Interior broker price opinion (BPO) or interior appraisal. This type of appraisal may be conducted by a real estate broker, appraiser, or other qualified individual or firm. Both the interior and exterior of the property are inspected. Exterior BPO / Appraisal: Exterior broker price opinion (BPO) or exterior appraisal. This type of appraisal may be conducted by a real estate broker, appraiser, or other qualified individual or firm. Only the exterior of the property are inspected. Estimated / AVM: This type of appraisal does not include a physical inspection of the property, but instead is based off of neighborhood comparables, recent home sale prices, property taxes, and other variables. Property Value The estimated fair market value of the property within 90 days of the NPV evaluation date. Property Zip Code The zip code of the property.

6 Real Estate Taxes The monthly cost of your real estate (property) taxes. Real estate taxes may be part of your monthly escrow payment. Remaining Term (Months Remaining) On Your Mortgage The remaining number of monthly payments that are left on your mortgage as of the Data Collection Date. Example of How to Determine Remaining Term on Your Mortgage If the Data Collection Date was 02/15/2011 and the First Payment Date for a 30-year loan (360 months) was 05/01/2007, the last payment would occur on 04/02/2037. To find the remaining months you would compute the following: Year 2011 Remaining Payments: o 3/1/2011 to 12/1/2011 = 10 payments Year 2012 through Year 2036 Payments: o 01/01/2012 to 12/01/2036 = 25 years x 12 months = 300 payments Year 2037 Payments: o 01/01/2037 to 04/01/2037 = 4 payments = 314 regular payments left This example may not apply to periodically adjusted or balloon mortgages. Please contact a housing counselor for assistance. Total First Mortgage Debt The principal balance calculated when beginning the HAMP modification process. It includes the unpaid principal balance of your first, or "primary" mortgage, plus accrued interest and additional expenses. It does not include overdue principal payments or late charges that may be owed. Need help calculating your Estimated Total First Mortgage Debt? Total Housing Expense of Your Principal Residence The total amount of monthly mortgage-related housing expenses, such as principal, interest, taxes, insurance and association fees, for your primary residence Unpaid Principal Balance of the Proposed Modification The portion of your mortgage balance on which you would pay interest if you receive a HAMP modification. It is likely to be different than your current principal balance because it includes amounts you owe for missed mortgage payments and unpaid expenses that are allowed to be added to your principal balance. Additionally, it may be reduced by proposed principal forbearance (and principal forgiveness, at the discretion of your servicer subject to investor guidelines.) Unpaid Principal Balance of Your Mortgage The amount of principal owed on your mortgage, sometimes referred to as 'outstanding principal balance'. It does not include any unpaid interest or other amounts that you may owe.