PROPOSALCONSOLIDATION EXTENSION MODIFICATION (CEM)

COST BENEFIT ANALYSIS 3/08

INDEX

I PROPOSAL INTRODUCTION

II BASICS OF CEM

III PROCESS

IV PROCESS FLOW CHART

V CEM ONLINE ANALYSIS CALCULATOR

VI CEM COST ANALYSIS WORKSHEET (INTERNAL)

VII CEM COST ANALYSIS WORKSHEET (EXTERNAL)

VIII TEAM BANK OF AMERICA CONTACT SHEET

PROPOSAL CONSOLIDATION EXTENSION MODIFICATION (CEM) COST BENEFIT ANALYSIS 3/08

The CEM was developed by New York State to significantly reduce the cost of mortgage tax in conjunction with financing real property located within said state. The CEM applies to

first mortgage financing only. We, at Equity Settlement Services Inc. are experts in this process.

The proposed process will streamline the New York Refinance procedure from an ordering and processing standpoint to ensure that the Bank of America borrower is being

directed with the most cost effective savings and that the bank itself, is being represented in the most professional manner.

Any Bank of America refinance in the state of New York will be directed to Equity Settlement Services Inc. for a free Cost Benefit Analysis. This analysis will be conducted by Equity Settlement Services Inc. to determine if in fact the CEM process is beneficial from a

cost benefit as well as viable from a compliance perspective and feasible from the assigning lender. If these factors prove affirmative for the Bank of America borrower then the CEM

process will be suggested versus a straight refinance. There are costs and extended processing time periods associated with a CEM that need to be considered.

BASICS OF CEM

-Only in New York State.

-Eligible on first mortgage refinances.

-Reduces mortgage tax liability (which can be over 2% in certain boroughs of New York) *mortgage tax fluctuates by county

-Only taxed on the “new money.” “New money” is the refinance amount (new loan amount) minus the unpaid principal balance (of current loan).

-“As a rule of thumb:” The smaller the “new money” the more advantageous a CEM would be.

-Two Types of CEM’s and Applicable Considerations:

-INTERNAL CEM: (Bank of America to Bank of America) *No additional processing time *Additional costs associated with preparation and recording of the CEM. (see attached worksheet)

-EXTERNAL CEM: (Existing lender assigning to Bank of America) * Average additional processing time of approximately 4 to 6 weeks depending on cooperation from existing lender. * Additional costs associated with preparation and recording of CEM (see attached worksheet) * Assignment fees from existing lenders which vary. This fee may be a fixed dollar amount of a percentage of the existing loan amount. * Collateral Attorney (existing lender’s attorney) fees for assignment preparation and coordination. * Over the last 20 years Equity Settlement Services Inc. has developed extensive relationships with virtually all lender’s collateral counsel. These relationships create the most efficient assigning process for CEM’s.

PROCESS (see flow chart)

Step 1- Bank of America New York Loan Origination: -Bank of America will submit New York State refinances to Equity Settlement Services Inc.

Step 2- Equity Settlement Services Cost Benefit Analysis: -Equity Settlement Services Inc. will perform a cost benefit analysis to determine if a CEM is beneficial from a cost standpoint.-Equity Settlement Services will determine viability from a compliance perspective.-Equity Settlement Services will ascertain if an assignment is feasible from the existing lender.

Step 3A- Loan Qualifies as CEM:-If the loan does fulfill criteria and qualifies as a CEM, the file will be processed by Equity Settlement Services Inc.- Puleo & Delisle LLC will act as counsel representing Bank of America’s closing in accordance with New York State Banking Regulation 38.7(a) (7).

Step 3B- Loan Does Not Qualify as CEM:-If the loan does not fulfill criteria and therefore not qualify as a CEM, the file will be directed to Home Focus/CRES for processing/closing.

* Cost benefit threshold savings figure to be determined by Bank of America.

CEM PROCESS FLOWCHART1 - BANK OF AMERICA

New York Loan Origination

2 - Equity SettlementServices

Cost Benefit Analysis

3A-Loan Qualifiesas CEM

3B-Loan does not qualifyas CEM

3B-Title to be forwarded to Home Focus/CRES for processing/closing

3A-Title to be ordered and processed byEquity Settlement Services

3A-Puleo & Delisle LLC.To represent Bank of America

and close the loan in accordance with New York State Banking Regulation 38.7(a) (7).

CEM COST ANALYSIS ORDER FORM

Email to: teambofa@equitysettlement.comFax to: 631-715-3449Phone: 631-715-3448

Loan Amount $_______________

Unpaid Principal Balance $_____________

What bank holds the current mortgage? _____________

Current loan account #? __________________

Original amount of current mortgage? _____________

County or Zipcode of Property? _____________

Ordered by? ____________________

Fax or email back to: _________________________

**ATTACH MORTGAGE STATEMENT IF AVAILABLE

CEM ONLINE ANALYSIS CALCULATOR

Equity Settlement Services Inc. has implemented a CEM Online Analysis Calculator to expedite the process in determining if a first mortgage refinance is beneficial from a cost perspective for your borrower.

The calculator can be accessed by our website at equitysettlement.com

Or contact us at:CEMA@equitysettlement.com or teambofa@equitysettlement.com.

IF STRAIGHT REFI. IF DONE AS CEMA IF DONE AS CEMA

Refinance Amount (loan amount) $450,000.00 $450,000.00 $450,000.00 $450,000.00

Unpaid Principal Balance $350,000.00 $80,000.00

New Money $100,000.00 $370,000.00

Borrowers MORTGAGE TAX DUE at 1.80 less $30 $8,070.00 $1770.00 $8,070.00 $6630.00

Average ASSIGNMENT FEE N/A N/A

APPROX CEMA RECORDING FEE $175.00 $175.00

APPROX ASSIGMENT RECORDING FEE N/A N/A

DOCUMENT PREP. FEE (IF ANY) $250.00 $250.00

TOTAL EXPENDED: $8,070.00 $2195.00 $8,070.00 $7,055.00

Projected Approximate Savings $5,875.00

5 Boroughs NYC 1/2 Family (2.05% MORTGAGE TAX less $30 - lender pays first .25%)

CEMA Cost Analysis WorksheetInternal SAMPLE

$1015.00

IF STRAIGHT REFI.

Recommended For CEMA Not Recommended for CEMA

IF STRAIGHT REFI. IF DONE AS CEMA IF DONE AS CEMA

Refinance Amount (loan amount) $450,000.00 $450,000.00 $450,000.00 $450,000.00

Unpaid Principal Balance $350,000.00 $80,000.00

New Money $100,000.00 $370,000.00

Borrowers MORTGAGE TAX DUE at 1.80 less $30 $8,070.00 $1770.00 $8,070.00 $6630.00

Average ASSIGNMENT FEE $750.00 $750.00

APPROX CEMA RECORDING FEE $175.00 $175.00

APPROX ASSIGMENT RECORDING FEE $75.00 $75.00

DOCUMENT PREP. FEE (IF ANY) $250.00 $250.00

TOTAL EXPENDED: $8,070.00 $3,020.00 $8,070.00 $7,880.00

Projected Approximate Savings $5,050.00

5 Boroughs NYC 1/2 Family (2.05% MORTGAGE TAX less $30 - lender pays first .25%)

CEMA Cost Analysis WorksheetExternal SAMPLE

$190.00

IF STRAIGHT REFI.

Recommended For CEMA Not Recommended for CEMA

Team Bank of AmericaEquity Settlement Services Inc.

Phone 631-715-3448 Fax 631-715-3449Team Email: teambofa@equitysettlement.com

Applications only: 631-715-3403