Management Quality Control

charles j. freeman

*** **** ****, *******, ** . Tel 813-***-**** . Email: ***********@***.***

Underwriting, Loss Mitigation, Operations and Risk Executive - with 20

years of mortgage experience; adding value in companies through operations,

process re-engineering, underwriting, quantitative risk management,

compliance, and loss mitigation.

STRATEGIC MANAGEMENT SKILLS

> Business Strategist - with a broad understanding of mortgage market

dynamics and firms.

> Presentation Skills - Years of creating consulting and business

presentations for senior management.

> Collaborative Skills - working with regulators, auditors, senior

management, and SME's.

> Communication Skills - Published author with New York Times Book

Review.

> Operational Expertise - Experience in all operational phases of

mortgage business.

> Team Leadership - Exceptional leader known for building and managing

successful teams.

LOSS MITIGATION, OPERATIONS and RISK EXPERIENCE

. Underwriting Management - Responsible for day to day management of the

Underwriting Department at HomeBanc (all retail) and WAMU

Correspondent Subprime. SVP of Front End Origination Scoring and AUS

at Chase Home Finance.

. Origination Quality Control - Member of Chase Quality Control

Committee managed QC at WAMU Correspondent Subprime and HomeBanc, and

member of Citimortgage QC committee.

. Risk and Compliance Project - led project team at Citibank that

implemented the OCC policy and process for current bankruptcies for

all home loans for all functions (acctg. finance, compliance, default,

servicing, credit).

. Loss Mitigation QC Projects - expert on Loss Mitigation QC and

compliance with Consent Order modifications on Government, Agency, and

Private Mortgages (HAMP, Traditional, Alt., Mod24, etc.).

. Mortgage Credit Policy - Head of Credit Policy at WAMU Correspondent

Subprime and HomeBanc, managed numerous Credit Policy projects at

Citimortgage and Chase Home Finance.

. Mortgage Risk Based Pricing - led project team that designed a system

for pricing higher risk mortgages that included fraud, repurchase, and

QC defects into pricing formula.

. Process Re-engineering - managed a project that implemented a new U/W

approach that minimized operating touches on a file and "Doom Loops".

. Automated Underwriting Implementation - lead quantitative team at

Chase that set all AUS and manual U/W rules, policies, scoring

triggers and operating process flows for all home loans for all

channels

. Collateral Analytics - Developed and implemented a system of AVM

cascades and vendor testing (validation) for Chase, compliant with OCC

requirements.

. Fraud Analytics - Developed and implemented at WAMU for Dual Risk

Fraud Score (Identity/Collateral) for use at origination of subprime

mortgages.

KEY QUALIFICATIONS

Risk: Mortgage Credit Policy Auto

Collateral Risk Credit Card

Underwriting

Third Party Risk Port. Risk Mgt.

Quality Control

Operating Change Management Operating Risk Mgt.

Re-engineering/Costs

Process/Risk: Market Analysis Project Management

Team Leadership

Cost/Benefit Analysis Operations Mgt. Mergers

& Acquisitions

Loss Mitigation: Short Sale Marketing Default Strategy HAMP

Outsourcing Repurchase Collections

Investor Short Sales Mortgage Insurance

Default Analytics

CHRONOLOGICAL CAREER HIGHLIGHTS

AMERICAN EQUITY MORTGAGE, Saint Louis, MO 4/2013 - 9/2013

Prime Mortgage Originator with volume of about $1 Billion annually.

CHIEF OPERATING OFFICER

Managing the functions of Underwriting, Processing, Processing Support,

Audit, Post Close and Closing. Several new processes implemented resulting

in significant productivity and bottom line impact:

. Pipeline Expeditors - Liaison between Processing and the field that

drive in submissions and stips by collecting documents.

. Counter Offer and Deal Desk - Review daily declines and counter - offer

for the field, and structure deals for the sales force.

. Processors Calling Customers - Developed program for processors directly

calling customers to efficiently collect documents and provide greater

levels of service.

. Impaired Loan Mitigation Program - Implemented program to reduce

impaired loans and other defects through statistical analysis and

targeted quality reviews.

. Sales Total Quality Management Program (TQM) - Two way TQM between

Operations and the field that greatly increased branch performance,

teamwork, pull - through, and quality.

. Rate Rescue Desk - Centralized program for identifying and sweeping

loans with rate lock issues into an outbound campaign that expedited a

solution based on quality, LO contribution, and customer needs;

increasing pull - through.

. Rewards Management - Centralized program for identifying and sweeping

loans with closing issues into an expedited solution based on quality,

LO contribution, and customer needs; increasing pull - through.

CLAYTON FINANCIAL SERVICES, LLC 11/2011 - 4/2013

Consulting company providing a wide range of services to the mortgage

industry.

Loss Mitigation/Forensic Underwriting

Providing Loss Mitigation Review and Forensic Underwriting services to

Clayton principally related to modification programs (HAMP, Traditional,

Apollo, Mod 24, Cap and Extend, etc.) for FNMA, Freddie, FHA/VA, private

investors to determine borrower harm and adverse actions (program

violations).

APASAN, LLC 10/2010 - 4/2013

Financial Analytic consulting company headed by Sudhir Alankar, most

recently the Global Head of Financial Services Analytics at Accenture.

Project Team Leader

Providing high value services and advice to major financial institutions on

a wide range of topics including Third Party Operating Risk Controls, Cross-

Selling, Risk Based Pricing, Credit Scoring, Collateral Management, Quality

Analytics, and Process Re-engineering.

AVAC

9/2010 - 2/2012

Consulting company affiliated with New York University and several members

the faculty, such as Prof. Andrew Caplin.

Consultant

Providing high value services and advice to Ironwood LLC on a wide range of

topics including Purchase of Distressed Assets, FHA Risk, and Mortgage

Market Economics.

CitiMortgage, O'Fallon, MO 2007 - 2010

Member of Citigroup and focused on providing the highest quality mortgage

products as part of an expansive portfolio of financial services.

senior director, risk operations (2008 - 2010)

director, credit loss mitigation (2007 - 2008)

Quickly promoted to reduce losses by combining breakthrough leadership with

extensive industry acumen in managing the First MI Rescission Review,

Second MI Claims, Default Oversight, Repurchase, Counterparty Risk, HELOC

Line Mgt., and Investor Doc Fulfillment departments. Led and mentored 52+

professionals as well as numerous offshore and outsourced vendors in

effectively managing a pipeline of rescissions and claims for first and

second mortgage portfolios. Established strategic partnerships with key

stakeholders to mitigate losses.

Key highlights as part of the HAMP team:

. Architected a credit document repair function to reverify and replace

missing information on old loans that is projected to save $20M in

repurchase losses in 2010.

. Implemented a document minimization strategy that sends only the

necessary paperwork to third-party firms.

. Transitioned all business filing functions to a paperless process,

dramatically reducing the risk of missing paperwork and identity theft,

while substantially increasing the availability of credit files via

electronic delivery.

. Achieved a 200% reduction in Type I & II error rates through negotiation

of short sale delegated MI authority.

Homebanc, Atlanta, GA 2005 - 2007

Member of the senior management team at a Southeastern based retail

mortgage originator ($3B annually), and a portfolio (REIT, $6B).

chief credit officer

Recruited to provide support, direction, credit information, and loan

policies/procedures to ensure the quality of the bank's loan origination

process, portfolio and servicing. Oversaw professional staff (100+) in

executing repurchase, collateral valuation, fraud detection, and

underwriting (personal credit authority $10M); promoted to manage product

development. Ensured compliance with Federal, fiduciary, and corp. credit

regs, policies, and procedures.

Key highlights

. Reduced fraud and EPD losses 50% ($1M) by creating a bankruptcy score

overlay used with credit scores.

. Integral role in the executive management committee's decision to exit

the subprime, saving the bank $50M.

. Substantially improved approval efficiency and quality (23%) by

initiating a "one-touch" underwriting program.

Washington Mutual / Long Beach Mortgage, Long Beach, CA 2004 - 2005

Savings bank holding company and the former owner of Washington Mutual

Bank.

first vice president / chief credit officer

Managed the credit activities (25 FTE) for wholesale subprime loan

origination channel ($35B). Also oversaw all risk modeling, U/W, database

mining, and a frequent presenter to investor and conferences.

Key highlights

. Saved $40M in pre-funding fraud by orchestrating a multi-faceted

approach incorporating automated borrower fraud, automated collateral

scoring, and an innovative fraud "toolbox."

. Removed 800 brokers with EPD issues, saving $40M, by creating and

implementing a broker scoring system.

. Dramatically decreased FPD and EPD-related credit spoilages by

initiating process controls (Est. $20M annually).

JP Morgan Chase / Chase Home Finance, Tampa, FL 1996 - 2004

Leading US home mortgage company.

senior vice president

Built on a successful career in credit, default, and portfolio risk

assessment to lead the credit activities for this high-profile division.

Directed all related efforts including origination credit and collateral

scoring, credit automation, home equity line of credit (HELOC) product

management, portfolio modeling, reporting, and fraud/risk mitigation.

Key highlights

. Architected numerous quantitative modeling initiatives that generated

substantial cost savings, including an agency automated valuation model

process that saved an estimated $25M annually.

. New credit bureau strategy using preference tables, BK scores, and small

business scores, saving $5M annually.

. Co-inventor on several portfolio risk management patents for Early

Warning Systems that saved $25M annually.

ADDITIONAL EXPERIENCE

Additional executive and senior-level positions held at Chemical Bank,

Merrill Lynch, and Citibank.

EDUCATION

MBA, Finance, UCLA, Los Angeles, CA - Graduated Cum Laude, completed 3

doctoral courses.

BS, Finance, Rider University, Lawrenceville, NJ - Finance Major, Cum

Laude, Four Honor Societies.

Advanced Credit Skills, JPM Chase, New York, NY - Graduated in upper third

of class.

PUBLICATIONS AND PRESENTATIONS

BOOKS

Housing Partnerships, Caplin, Chan, Freeman, Tracy; MIT Press (1997)

ACADEMIC PAPERS

"Household Asset Portfolios and the Reform of the Housing Market" Caplin,

Chan, Freeman, Tracy; TIAA/CREF Research Dialogues (1999)

"Collateral Damage: How Collateral Constraints Exacerbate Regional

Recessions," Caplin, Freeman, Tracy, Journal of Money and Banking (November

1997)

"Housing Partnerships," Caplin, Freeman, Tracy, Columbia Working Paper

(1994)

PRESENTATIONS

"Consumer and Commercial Credit Trends," ABS West, February, 2006

"Subprime Underwriting," IMN Subprime Conference, December, 2005

"Consumer and Commercial Credit Trends," ABS East, September, 2005

"Valuing Residuals," ADco Conference, June 2005

"Collateral Valuations: Best Practices," Predictive Methods

Conference, June 2005

"Credit Underwriting," AFS East, June, 2005

"Credit Underwriting," AFS West, February, 2005

"AVM's; Collateral Rep & Warranty Risk," C&S AVM Conference, August

2003

"Collateral Scoring," Predictive Modeling Conference, May 2003

"Asset Marketing: Real Estate," NBER Summer Institute, Summer 2002

"Automated Valuation Models," MIC Housing Conference, Summer 2001

"Asset Marketing: Real Estate," NBER Summer Institute, Summer 2001

"Housing Finance Alternatives," Senate Housing Subcommittee, Fall 1999

"Credit Risk Management as a Profit Center: SAS Conference, Fall 1999

"Dynamic Underwriting," MIC Risk Conference, Summer 1999

"Future of Housing Markets," London School of Economics, Fall 1998

"Urban Planning and Housing Finance," Chicago Federal Reserve, 1997

"Policy Issues Of Housing Equity Finance," New York Federal Reserve,

1997

"Alternative Mortgage Finance," American Economic Assoc, Winter 1995

"Housing Equity Sharing Methods," Princeton University, Fall 1997

"Housing Partnerships," NBER Conference: Housing Markets, Winter 1994

"Prepayments and Mobility," MIC Risk Conference, Summer 1995

"Early Warning System," MIC Risk Conference, Summer 1996

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