System Enhancements

1. System Enhancements • To serve you better: • Enhanced capabilities for us to further customize your tracking • Automated business rules set for your specific requirements • Unified tracking platform for all loan types and associated perils • Improved reporting content and functionality • Enhanced electronic distribution of reports • Expanded EDI relationships I N S T R A C K

2. SystemEnhancements • The following pages identify the enhanced reporting with an explanation of each report. Please take your time to become familiar with each report. If you have questions or need assistance, please contact your Lender Services Representative. I N S T R A C K

3. LENDER REPORTS Overview WNC First provides a set of reports that allow you the Lender and WNC First to effectively manage your collateral protection program. You will regularly receive several types of reports that serve specific purposes. These report types include: Action Reports – require your immediate attention and response to ensure accurate and timely communication with your customers and effective functioning of the program. Information Reports – show current actions that have been taken and provide a summary of your collateral protection program. Executive Reports – are designed to provide information that allows executive level decisions to be made regarding collateral protection. Optional Reports – are additional reports that are available upon your request.

4. Preliminary Notice of Requirement (NOR) Report The Preliminary NOR shows the loans on your account that are ready to enter the Notification Cycle. The Preliminary NOR report lists every loan that will generate a first Notice of Requirement during the next print cycle, unless valid insurance documentation is received or you elect to waive the requirement. Loans appear on this report one time--as they enter the notification cycle. There will not be a pre-NOR showing second notices. The NOR Generated Report shows the types of notices sent to your borrowers. Purpose: This report controls the notices mailed to your uninsured borrowers, and requires your immediate attention and feedback. Unless WNC First is instructed otherwise, each borrower on the list will receive a written First Notice of Requirement and will continue through the Notice cycle. Each Loan Officer receives an individual report listing the loans on his or her account that are uninsured and will generate a notice (NOR). The Loan Officer determines the action to be taken for each loan listed on the report and informs WNC First without delay. Action to be Taken: Immediate feedback is required to prevent notices being mailed in error. To waive coverage, but continue to track the loan, write “Waive” next to the Account Number. If the waiver is temporary, write in the waive expiration date. (A Waive Coverage form may also be completed and forwarded to your Lender Services Representative.) Entries not waived will have Notices generated and mailed unless proof of insurance is received and applied prior to notice generation. Sign and date the report and fax it to your WNC First Lender Services Representative. NOTE: Loans are not deleted from the system. IMMEDIATE RESPONSE REQUIRED

5. WNC First Ins. TrackPreliminary NOR ReportAs of XX/XX/XXXX The Preliminary NOR Report controls the notices sent to your uninsured borrowers and requires Immediate Feedback. You will use this report to Approve notices or Waive coverage requirement. IMMEDIATE RESPONSE REQUIRED Waive a Loancross through the account number and write “waive” next to it. Waive Temporarily Waive a Loancross through the account number, write “waive” next to it and the end date of the waive. Waive to 7/2/02 Return ReportSign the report and return to your Lender Services Rep. Jonathan Smith 1/19/02

6. IMMEDIATE RESPONSE REQUIRED CPI Warning Report The CPI Warning Report lists all loans that have generated the required number of notices prior to lender placed insurance coverage. The loans listed on the report will generate lender placed certificates at the next print cycle. The lender may use this form to report paid out loans or to request waives of the insurance requirements. Action to be Taken: Immediate feedback is required to verify certificate placement and to prevent incorrect placement of lender coverage on the loans listed. Complete the action line for each loan listed on the CPI Warning Report. If lender placed insurance is to be issued, check “issue now,” and sign the authorization. If the loan has been paid or is to be waived for CPI coverage, complete the appropriate information and authorization. A Lender’s entry on the CPI Warning Report is sufficient to establish a permanent or temporary waive. You may, of course, submit a Waive Requirement form to your WNC First Lender Services Representative. If no action is taken before the next run cycle, a certificate will be generated for every account on this report. Therefore, your immediate response is necessary.

7. The CPI Warning Report lists loans that will generate lender placed certificates at the next print cycle, and requires Immediate Feedback. Use this form to approve certificates, report paid out loans, or waive insurance requirements. IMMEDIATE RESPONSE REQUIRED WNC First Ins. TrackCPI Warning ReportAs of XX/XX/XXXX Force Place Insurance check “issue now” Waive Insurancecomplete the appropriate information and authorization. Confirm Paid Loancomplete the appropriate information and authorization. AuthorizeSign for each loan. Return ReportSign the report and return to your Lender Services Rep.

8. IMMEDIATE RESPONSE REQUIRED Bad Address Report The report lists all loans that have a mailing and/or collateral address which receives an error during processing. It is, of course, important to have complete addresses in order to correspond with clients. Until the addresses are corrected, loans on this report will not receive notices requesting insurance. Action to be Taken: Immediate feedback is required to proceed into the Notice (NOR) stage and to ensure borrowers receive communication regarding their insurance coverage. As soon as you receive the report, write the correct address information on the report and return it to your Lender Services Representative. You will also want to correct your loan files, if needed.

9. WNC First Ins. TrackBad AddressAs of XX/XX/XXXX The Bad Address report lists all loans that have a Mailing or Collateral address error. Until the addresses are corrected, the loans on this list will not receive notices requesting insurance. IMMEDIATE RESPONSE REQUIRED Complete Missing or Incorrect InformationPrint the correct address information on the report . If needed, correct your loan files. Smallville PA 22222 Austin, TX 78753 Fulmar Lennar, NY 10012 Lennar, NY 10012 13951 MarnierLennar, NY 10012 13951 MarnierLennar, NY 10012 Return ReportSign the report and return to your Lender Services Rep. Wilmax Jonathan Smith 3/19/05

10. IMMEDIATE RESPONSE REQUIRED Loan Missing – Force Coverage In Place This report lists each loan flagged as missing from the system that has an in-force lender placed certificate. Use this report to inform WNC First how to cancel the certificates listed. Action to be Taken: On the report indicate whether the loan is Paid, Charged Off, or collateral Repossessed. Complete the rest of the information requested on the report and return to your WNC First Lender Services Representative. If your records show the loan is active, please call your Lender Services rep. immediately.

11. WNC First Ins. TrackLoan Missing SI In-Force ReportAs of XX/XX/XXXX Loan Missing SI In-ForceReport lists each loan flagged as Missing from the system that has an in-force lender placed certificate. Use this report to inform WNC First how to cancel the certificates listed. IMMEDIATE RESPONSE REQUIRED Indicate Statusof LoanIndicate loan is paid, charged off, or collateral has been repossessed. If your records show the loan is active, please call your Rep. immediately. PAID 4/15/98 J. Doe Return ReportSign the report and return to your Lender Services Rep. Jonathan Smith 3/19/05

12. FOR YOUR INFORMATION Respond with Changes Only • Officers Waive List Report • The Officers Waive List shows every loan that has been waived by an officer of your lending institution. Each officer receives a report showing the waived loans on his or her account(s). The report is used to estimate loss exposure, and can be used as a form to release a waiver. • To use the report to release a waiver • Write “RW” for Release Waiver next to the entry on the report • Indicate the release date • Sign and date the report • Send the report to your WNC First Lender Services Representative • A comprehensive Waive List Report is also provided for executive review.

13. The Officer WaiveList shows all loans that have been waived by an Officer. The report can be used to estimate loss exposure and to release a waiver. FOR YOUR INFORMATION WNC First Ins. TrackOfficers Waive ListAs of XX/XX/XXXX Release WaiverWrite “RW” next to the entry. RW Return ReportSign the report and return to your Lender Services Rep. Leonard Lenderman 1/20/2002

14. FOR YOUR INFORMATION Notice of Requirement (NOR) Generated Report Notices are generated based on your feedback on the Pre-Nor Report. The NOR Generated Report allows you to verify the notices sent to borrowers. The NOR Generated Report lists every borrower who received a written notice during the print cycle covered by the report. The report shows the Type of notice that was sent as well as the Reason for the notice. Loans listed on this report also appear on the Uninsured Loan Report. Notice Types include: AVR – Audit Verification Request DEF – Notice of Deficient Insurance IVR – Insurance Verification Request NOR – Notice of Requirement RENEWAL – Renewal Notice of Insurance

15. The NOR Generated Report lists every borrower who received a written notice during the print cycle. The report shows the type of notice that was sent as well as the reason for the notice. FOR YOUR INFORMATION WNC First Ins. TrackNotice of Requirement ListAs of XX/XX/XXXX

16. FOR YOUR INFORMATION Certificates Generated Report The Certificates Generated Report allows you to verify the certificates issued to borrowers. The Certificates Generated Report lists all Lender Placed certificates issued during the print cycle covered by the report. Every certificate listed on this report will appear on your monthly Billing Report. Pay-Per-Policy clients will remit premium based on this report.

17. The Certificates Generated Report lists all Lender Placed Certificates issued during the print cycle. Each Certificate listed on this report will appear on your monthly Billing Report. (Pay-Per-Policy clients remit premiums based on this report.) FOR YOUR INFORMATION WNC First Ins. TrackCertificates Generated ReportAs of XX/XX/XXXX

18. FOR YOUR INFORMATION Uninsured Report The Uninsured Report lists every loan record that does not have in force insurance coverage as of the date of the report. The report shows when each loan became exposed, and the exposure or type of notice that has been sent.

19. WNC First Ins. TrackUninsured Report As of XX/XX/XXXX The Uninsured Report lists every loan record that does not have in force insurance coverage as of the date of the report. The report shows when each loan became exposed, and either the reason for the exposure or the type of notice that has been sent. FOR YOUR INFORMATION

20. FOR YOUR INFORMATION Cancellation Report The Cancellation report lists all lender placed certificates cancelled during the cycle period and shows the reason for the cancellation. This report does not reflect any cash transactions. Any cancellation appearing on this report will appear on the Certificate Report and as an adjustment on your Billing Report.

21. WNC First Ins. TrackCancellation ReportAs of XX/XX/XXXX The Cancellation Report lists all lender placed certificates cancelled during the cycle period. The cancellations will appear as adjustments on your Billing Report. FOR YOUR INFORMATION

22. MANAGEMENT REPORT Mature Loan Report The Mature loan report lists every loan that has reached its maturity date and still has an outstanding loan balance. This report serves to advise you that collateral protection is cancelled as of the loan maturity date. If an extension of the Maturity Date has been given, please make sure it is changed on your loan servicing system in order for the loan to stay in the collateral protection program.

23. Collateral protection ceases as of the loan maturity date. The Mature Loan Report lists every loan that has reached its maturity date and still has an outstanding loan balance. MANAGEMENT REPORT WNC First Ins. TrackMature Loan Report As of XX/XX/XXXX

24. MANAGEMENT REPORT Loan Status Report The Loan Status Report lists every loan on the system and shows the current status of insurance coverage for each loan. The insurance information shown is based on the last policy information keyed to the loan. A Summary is provided at the end of the report.

25. The Loan Status Report lists every loan on the system and shows the current insurance coverage status for each loan. MANAGEMENT REPORT WNC First Ins. TrackLoan Status ReportAs of XX/XX/XXXX

26. Loan Status Report – Summary Information. MANAGEMENT REPORT WNC First Ins. TrackLoan Status ReportAs of XX/XX/XXXX

27. MANAGEMENT REPORT Waive List Report The Waive List Report allows Management to easily evaluate the financial impact of loans waived for CPI coverage. The report lists every loan waived and the current loan balance for each Officer. You may release a waiver using the WaiveRelease form

28. The Waive List Report allows Management to easily evaluate the financial impact of loans waived for CPI coverage. The report lists every loan waived and the current loan balance for each Officer. MANAGEMENT REPORT WNC First Ins. TrackWaive ListAs of XX/XX/XXXX

29. MONTHLY BILLING REPORT BILLING Billing Report– is produced for Lenders on a monthly billing cycle. (See sample on following page). A/R Statements – looks like the Billing Report except that it shows the number of days that have passed since premium was due for each certificate on the report. Pay-per-Policy – clients remit premium payment based on the Certificates Generated Report. (see Reports section for report sample). Monthly Billing Report The monthly Billing Report lists all lender placed certificates that issued, adjusted or cancelled during the last 30 days from the cycle date. Upon receiving the monthly Billing Report, remit the Net Premium Due to WNC First Insurance Services. This report is like a combination of the Certificates Generated Report and the Cancellation Report. However, when comparing reports, keep in mind that the Certificates Generated Report and the Cancellation Report cover a cycle, and more than one cycle may be represented on the Billing Report.

30. The MonthlyBilling Report lists all lender placed certificates that issued, adjusted, or cancelled during the last 30 days from the cycle date. Upon receiving the monthly Billing Report, remit the Net Premium Due to WNC First Insurance Services. MONTHLY BILLING REPORT WNC First Ins. TrackBilling ReportAs of XX/XX/XXXX

31. FORMS • You can communicate changes in borrower coverage status and other changes by using the following forms. • Waive Requirement form • Release Waive form • Lender Maintenance Form

32. enhanced System Upgrades • We are continually searching for new ways to improve our service and to be of assistance to you. If you have suggestions, comments, or need further assistance, please do not hesitate to contact your Lender Service Representative. I N S T R A C K