Creating Borrower Rights to With Respect to Concessionary Loan Modifications February 7, 2011 Brian D. Boyle.

Creating Borrower “Rights” to With Respect to Concessionary Loan Modifications

February 7, 2011

Brian D. Boyle

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Source: Lender Processing Services, December 2010 Mortgage Monitor

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Source: Lender Processing Services, December 2010 Mortgage Monitor

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Source: Lender Processing Services, December 2010 Mortgage Monitor

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Source: OCC/OTS Mortgage Metrics Report, Third Quarter 2010

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Source: OCC/OTS Mortgage Metrics Report, Third Quarter 2010

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Source: OCC/OTS Mortgage Metrics Report, Third Quarter 2010

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Housing Expenses Modification Short Sale Foreclosure

Housing cash flows for “typical” underwater borrower

Modified monthly mortgage payment

$10,800 (12 months at $900)

$0 $0

Moving expense $0 $2,000 $2,000

Relocation assistance $0 ($3,000) ($2,500)

Monthly rental payment $0 $7,700 (7 months at

$1,100)

$0

12 month prospective housing expense

$10,800 $6,700 ($500)

Borrower Economics: Foreclosure vs. Alternatives

Contact Me With Questions

Brian D. Boyle

O’Melveny & Myers LLP

1625 Eye Street NW

Washington, DC 20006

202-383-5327

[email protected]

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