Polly_060409

Your Reverse Mortgage Summary Prepared for: Ludye Poellnitz No street address entered No city entered

Prepared by: Peter Santilli Coast Cities Financial 15316 Dos Palmas Road Victorville, Ca 92392 Phone: 760-684-8038

June 4, 2009

Your home is in Los Angeles County, California 90047 and has an estimated value of $315,000. Your age is calculated as if the loan closing date will be Monday, August 3rd, 2009. When your next birthday is within six months after the loan closing date, these loan programs consider you a year older. Your attained age then will the be 82, but your nearest birthday age will be 83. The table below shows the maximum line-of-credit (with no monthly Income), and, if available, the maximum monthly income (with no line-of-credit) that may be possible after paying off any mortgages and liens against your home. HECM is the federally-insured "Home Equity Conversion Mortgage". It allows you to allocate funds between upfront cash, a line-of-credit (cash account), and monthly income. HECM-T375 CMT Interest adjusts > Monthly

You Could Get Cash Available before liens

HECM-L325 Fixed Rate LIBOR HECM Monthly N/A

$201,228

$208,078

$206,470

$224,300

$224,300

$224,300

($23,072)

($16,222)

($17,830)

(1) A single lump sum advance of

$0

$0

$0

(2) Or a line-of-credit account of

$0

$0

--

in 5 years would be

$0

$0

--

in 10 years would be

$0

$0

--

$0

$0

--

Less Liens and Disbursements Program is short by

that grows larger each year by * so, if unused, available credit

(3) Or a monthly loan advance for as long as you live in your home

(4) Or often, any combination of lump sum, line-of-credit account, and monthly advance * The line-of-credit growth rate above is based on today's interest rates. Actual growth in your available line-of-credit will vary with future changes in rates. An important benefit of a reverse mortgage is that it will pay off the current debt on your home. Reverse mortgages don't require monthly payments, so your available spending money will increase by the monthly payments you are now making on your mortgage. Reverse mortgages are very flexible. You can use the loan proceeds for virtually any purpose. Money not withdrawn immediately or set aside for a line-of-credit (Cash Account) can be used for one of several different payment plans. These estimates are based on monthly-adjusting HECM interest rates, maximum origination and servicing fees, and approximate closing costs. Interest rates are current for the week of June 2nd. Actual loan amounts available depend on the rates in effect when a loan is closed, and the actual origination fee and closing costs charged. They also depend on the appraised value of your home and current equity limits in each program. Best Regards,

Peter Santilli Vice President

Page 1 of 11

The Reverse Mortgage Analyst Ludye Poellnitz

Loan Terms

HECM-T375

HECM-L325

Fixed Rate

CMT

LIBOR

HECM

Adjusting period

Monthly

Monthly

N/A

Interest rate index

0.49%

0.316%

--

Program Description

3.75%

3.250%

--

Initial loan interest rate

Plus lender's margin

4.24%

3.566%

7.125%

Plus mortgage insurance

0.50%

0.50%

0.50%

Initial total loan rate

4.74%

4.066%

7.625%

Initial creditline growth rate

4.84%

4.143%

--

Lifetime cap on interest rate

14.24%

13.566%

7.125%

HECM Expected Rate

7.34%

7.040%

7.125%

Monthly Service Fee

$35.00

$35.00

$30.00

Appraised Value of the home

$315,000

$315,000

$315,000

Loan lending limit

$625,500

$625,500

$625,500

$315,000

$315,000

$315,000

$217,665

$224,595

$222,390

$3,964

$4,043

$3,446

$213,701

$220,552

$218,944

Loan origination fee

$5,150

$5,150

$5,150

Mortgage insurance

$6,300

$6,300

$6,300

Other closing costs

$1,024

$1,024

$1,024

$201,228

$208,078

$206,470

Lesser of limit or home value Loan Principal Limit Less Service fee set-aside Available Principal Limit Less Financed Items

Net Principal Limit Total Liens & Debt

$224,300

$224,300

$224,300

($23,072.45)

($16,221.96)

($17,829.82)

$201,228

$208,078

$206,470

Less Lump-Sum Cash

$0

$0

$0

Less Selected Creditline

$0

$0

--

Left for monthly advance

$0

$0

$0

Monthly Advance

$0

$0

$0

+0.00

+0.00

+0.00

$0.00

$0.00

$0.00

Program is short by Less Financed Liens & Debt

No more lien payments Increase in monthly cash Monthly Term

Tenure

Tenure

Tenure

Total Fees & Costs

$12,474

$12,474

$12,474

The figures on this page are estimates only, and are based on a variety of assumptions that are subject to change. These estimates are based on interest rates for the week of June 2nd and the youngest borrower's birth date being 1/1/1927.

Ludye Poellnitz Date

Page 2 of 11

Fixed Rate HECM Disclosure Below is a comparison of FHA HECM loan products -- Adjustable (ARM) and Fixed Rate. Column 1: An open-end, monthly adjustable (ARM) HECM. The adjustable HECM has a Principal Lock feature so that interest rate increases between the date of your application and the loan closing date should not lower the amount of funds available to you. The various payout options include Line-of-Credit, Term, Tenure, Modified Term and Modified Tenure. Column 2: A closed-end, fixed rate HECM with 100% utilization of the available principal limit. Rates may vary. Please carefully read the Fixed Rate Lock Policy below. Column 3: Hypothetical example in which fixed rates have increased half a percent (0.50%) between application and closing. 1

2

3

FHA HECM Adjustable Monthly

FHA HECM Fixed Rate

FHA HECM + 0.50% Fixed Rate

Initial Interest Rate Index Lender's margin Initial Interest Rate Mortgage Insurance Premium Initial Effective Loan Rate

0.49% 3.75% 4.24% 0.50% 4.74%

--7.125% 0.50% 7.625%

--7.625% 0.50% 8.125%

Interest Rate Cap HECM Expected Rate Creditline Growth Rate Monthly Service Fee

14.24% 7.34% 4.84% $35.00

7.125% 7.125% -$30.00

7.625% 7.625% -$30.00

Plan Adjusted Home Value Total Principal Limit Financed Origination Fee Other Financed Costs Initial Mortgage Insurance Prem. Left After Fees and Costs Loan Service Set-aside Left After Set-asides Liens and Disbursements Available Cash for You Program is short by

$315,000 $217,665 $5,150 $1,024 $6,300 $205,191 $3,964 $201,228 $224,300 $0 $23,072

$315,000 $222,390 $5,150 $1,024 $6,300 $209,916 $3,446 $206,470 $224,300 $0 $17,830

$315,000 $213,255 $5,150 $1,024 $6,300 $200,781 $3,335 $197,447 $224,300 $0 $26,853

Loan Terms

FIXED RATE LOCK POLICY Your interest rate will be calculated and locked in once your loan has received final underwriting approval and your closing appointment has been scheduled. If your loan closing is rescheduled for any reason, your interest rate may be reset and the amount of money available to you may vary.

Ludye Poellnitz

Date Page 3 of 11

The Reverse Mortgage Analyst Ludye Poellnitz

Line-of-Credit Estimates This table shows how much cash would be left in three creditline plans based on the cash withdrawals you selected, which are shown in the "Draw" columns. The amount of cash remaining available to you from each plan is shown in the "Available" columns. HECM-T375 HECM-L325 Fixed Rate CMT LIBOR HECM Monthly Monthly N/A Year Draw | Available Draw | Available Draw | Available 0

0

0

0

0

0

0

1

0

0

0

0

0

0

2

0

0

0

0

0

0

3

0

0

0

0

0

0

4

0

0

0

0

0

0

5

0

0

0

0

0

0

6

0

0

0

0

0

0

7

0

0

0

0

0

0

8

0

0

0

0

0

0

9

0

0

0

0

0

0

10

0

0

0

0

0

0

11

0

0

0

0

0

0

12

0

0

0

0

0

0

13

0

0

0

0

0

0

14

0

0

0

0

0

0

15

0

0

0

0

0

0

16

0

0

0

0

0

0

17

0

0

0

0

0

0

18

0

0

0

0

0

0

19

0

0

0

0

0

0

20

0

0

0

0

0

0

21

0

0

0

0

0

0

22

0

0

0

0

0

0

23

0

0

0

0

0

0

24

0

0

0

0

0

0

These creditline estimates assume that the current HECM creditline growth rate will continue unchanged into the future. In reality, this rate may be different at the time a loan is closed, and it will then be subject to change every month or every year. The rate by which the HECM creditline will actually grow each month will be the same as the total periodic rate being charged on the loan's balance. This rate equals the loan's current interest rate plus 50 basis points (one-half of one percentage point) for HECM mortgage insurance.

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The Reverse Mortgage Analyst Ludye Poellnitz

Loan Amortization Schedule HECM-T375 Reverse Mortgage Assuming a 4.24% per year annual interest rate and 4.00% per year future home appreciation. End Unused ------------------------ Annual Totals ----------------------- -------------- End of Year Projections --------------of Available Creditline Loan Service Accrued Accrued Loan Home Net Home Net Year Age Creditline Draws Advances Fees Interest MIP Balance Value Value Equity 0 82 0 ----6,300 213,701 315,000 292,950 79,249 1 83 0 0 0 420 9,269 1,093 224,483 327,600 304,668 80,185 2 84 0 0 0 420 9,736 1,148 235,787 340,704 316,855 81,068 3 85 0 0 0 420 10,226 1,206 247,638 354,332 329,529 81,891 4 86 0 0 0 420 10,739 1,266 260,064 368,505 342,710 82,646 5 87 0 0 0 420 11,278 1,330 273,092 383,246 356,418 83,327 6 88 0 0 0 420 11,842 1,396 286,750 398,575 370,675 83,925 7 89 0 0 0 420 12,434 1,466 301,071 414,519 385,502 84,431 8 90 0 0 0 420 13,055 1,539 316,085 431,099 400,922 84,837 9 91 0 0 0 420 13,705 1,616 331,827 448,343 416,959 85,133 10 92 0 0 0 420 14,387 1,697 348,331 466,277 433,638 85,307 11 93 0 0 0 420 15,103 1,781 365,634 484,928 450,983 85,349 12 94 0 0 0 420 15,852 1,869 383,776 504,325 469,022 85,246 13 95 0 0 0 420 16,639 1,962 402,797 524,498 487,783 84,987 14 96 0 0 0 420 17,463 2,059 422,739 545,478 507,295 84,556 15 97 0 0 0 420 18,327 2,161 443,647 567,297 527,586 83,939 16 98 0 0 0 420 19,233 2,268 465,568 589,989 548,690 83,122 17 99 0 0 0 420 20,183 2,380 488,551 613,589 570,637 82,087 18 100 0 0 0 420 21,179 2,498 512,647 638,132 593,463 80,816

Be sure to review the Amortization Schedule Notes that accompany this page.

Page 5 of 11

The Reverse Mortgage Analyst Ludye Poellnitz

Amortization Schedule Notes The amortization schedule projects a single loan into the future based on the payment plan and any line-of-credit draws that you have selected. The key assumptions in making the projections are the rate at which your home value would grow (its future appreciation rate), and the interest rate that would be charged on your loan. Year 0 is the "closing" date, when you sign the loan documents to begin the loan. Loan Advances equals the total of all scheduled monthly payments to you each year if you selected a tenure or term payment plan. Service Fees are the annual total of all monthly servicing fees each year. Accrued Interest equals the amount of Interest added to your loan balance each year. Accrued MIP equals the amount of monthly Mortgage Insurance Premium added to your loan balance each year. Initial Upfront MIP is shown in the Year 0 row. Loan Balance includes cash to you plus all loan costs to date. Home Value equals the future value of your home if it appreciates at 4.00% per year. Net Home Value is your projected future home value less 7% in estimated selling costs. Net Equity equals Net Home Value minus Loan Balance, or the amount of equity that you would retain if the home were sold to repay the loan at this time. Note: The approximate amount you would owe upon sale of the home is the Loan Balance or Net Home Value, whichever is less. If your Unused Available creditline is greater than your Net Home Value, draw it all before selling your home.

Ludye Poellnitz Date

Page 6 of 11

The Reverse Mortgage Analyst Ludye Poellnitz

Total Annual Loan Cost LOAN TERMS: Age of borrower: Appraised property value: Initial interest rate:

Initial draw: Initial line of credit:

82 $315,000 4.240%

$201,227.55 $0.00

Assumed Annual Appreciation 0% 4% 8%

INITIAL LOAN CHARGES: Closing costs: Mortgage insurance premium: Annuity cost: MONTHLY LOAN CHARGES: Servicing fee: Mortgage insurance: OTHER CHARGES: None REPAYMENT LIMITS: Net proceeds estimated at 93% of projected home sale.

Total Annual Loan Cost Rate Disclosure Periods 2-year 4-year 8-year loan term loan term loan term 8.25% 6.62% 4.81% 8.25% 6.62% 5.81% 8.25% 6.62% 5.81%

$6,173.60 $6,300.00 None $35.00 0.5% annually

11-year loan term 3.47% 5.58% 5.58%

The cost of any reverse mortgage loan depends on how long you keep the loan and how much your home appreciates in value. Generally, the longer you keep a reverse mortgage, the lower the Total Annual Loan Cost Rate will be. This table shows the estimated cost of your reverse mortgage loan, expressed as an annual rate. It illustrates the cost for four loan terms: 2 years, half of life expectancy for someone your age, that life expectancy, and 1.4 times that life expectancy. The table also shows the cost of the loan assuming the value of your home appreciates at three different rates: 0%, 4%, and 8%. The Total Annual Loan Cost Rates in this table are based on the total charges associated with this loan. These charges typically include principal, interest, closing costs, annuity costs, mortgage insurance premiums, and servicing costs (but not disposition costs costs when you sell the home). The rates in this table are estimates. Your actual cost may differ if, for example, the amount of your loan advances varies or the interest rate on your mortgage loan changes. You may receive projections of loan balances from counselors or lenders that are based on an expected average mortgage rate that differs from the initial interest rate.

SIGNING AN APPLICATION OR RECEIVING THESE DISCLOSURES DOES NOT REQUIRE YOU TO COMPLETE THIS LOAN

Ludye Poellnitz

Date

Page 7 of 11

The Reverse Mortgage Analyst Ludye Poellnitz

Good Faith Estimate HECM-T375 (CMT) Property Value: $315,000.00 Maximum Claim Amount: $315,000.00 Applicant: Ludye Poellnitz Property: No street address entered No city entered

Date Printed: Jun 4,2009 Current Note Interest Rate: 4.240% Estimated Closing Date: Aug 3,2009 Nearest Birthday Age: 83 Phone:

The information provided below reflects estimates of the charges you are likely to incur at the settlement of your loan. The fees listed are estimates - the actual charges may be more or less. Your transaction may not involve a fee for every item listed. The numbers listed beside the estimates generally correspond to the numbered lines or sections contained in the HUD-1 Settlement Statement which you will receive at settlement. The HUD-1 Settlement Statement will show you the actual cost for items paid at settlement. 801 902 1105 1108 1201 1400

Loan Origination Fee $5,150.00 Mortgage Insurance Premium $6,300.00 Document Preparation $125.00 Title Insurance $830.60 Recording Fees $68.00 TOTAL SETTLEMENT CHARGES $12,473.60

Any lifetime annuity or other insurance product you may purchase is not a required charge.

This Good Faith Estimate is NOT a loan commitment. We hereby acknowledge receipt of this document, the attached list of required providers of service, and a copy of " When Your Home Is On The Line: What You Should Know About Home Equity Lines of Credit." __________________________________________ __________ Ludye Poellnitz Date __________________________________________ __________ Date

____________________________________ Peter Santilli, Vice President Coast Cities Financial 15316 Dos Palmas Road Victorville, Ca 92392

Page 8 of 11

The Reverse Mortgage Analyst Ludye Poellnitz

Reverse Mortgage Comparisons Basic Assumptions:

June 4, 2009

annual home appreciation rate = 4.00% no requested creditline draws annual interest rate = the current initial rate

CASH ADVANCES Cash at Closing Creditline ---Growth Rate Monthly Advance ---Advance Type

HECM-T375

HECM-L325

Fixed Rate

$201,228 $0

$208,078 $0

$206,470 $0

4.84% $0.00 N/A

4.14% $0.00 N/A

7.90% $0.00 N/A

$208,078 $32,000 $76,777 ($0) 7.17%

$206,470 $49,195 $61,189 ($0) 10.73%

$208,078 $64,430 $83,911 ($0) 5.41%

$206,470 $115,885 $34,063 ($0) 8.94%

$208,078 $101,059 $91,785 ($0) 4.96%

$206,470 $194,452 $0 ($0) 8.32%

$208,078 $142,432 $100,473 ($0) 4.75%

$206,470 $244,513 $0 ($0) 7.12%

$208,078 $189,163 $110,053 ($0) 4.63%

$206,470 $300,824 $0 ($0) 6.44%

After 2 years (net home value = $316,855) Total Cash Advances $201,228 Net Cost $34,559 Cash Remaining* $81,068 ($0) Total Annual Rate 7.95% After 5 years (net home value = $356,418) Total Cash Advances $201,228 Net Cost $71,864 Cash Remaining* $83,327 ($0) Total Annual Rate 6.12% After 8 years (net home value = $400,922) Total Cash Advances $201,228 Net Cost $114,857 Cash Remaining* $84,837 ($0) Total Annual Rate 5.66% After 11 years (net home value = $450,983) Total Cash Advances $201,228 Net Cost $164,407 Cash Remaining* $85,349 ($0) Total Annual Rate 5.44% After 14 years (net home value = $507,295) Total Cash Advances $201,228 Net Cost $221,511 Cash Remaining* $84,556 ($0) Total Annual Rate 5.31%

* the figures in parenthesis equal the amount remaining in a creditline.

Page 9 of 11

The Reverse Mortgage Analyst Ludye Poellnitz

Understanding Reverse Mortgage Comparisons -- Page 1 Reverse mortgages turn your home equity into three things: 1) Loan advances - which are paid to you 2) Loan costs - which are paid to the lender and others 3) Leftover equity - which is paid to you or your heirs The Reverse Mortgage Comparisons report shows you at five different future dates how much of your home's equity would have gone into each of these areas if the loan were to end at that time for three different loan plans. The report compares the loan plans listed at the top of each column over time on a side-by-side, "apples-to-apples" basis. It estimates the cash you could get, the cash remaining at the end of the loan, the net cost to you, and the total annual cost rate. The numbers in this report are APPROXIMATE ESTIMATES ONLY. They are based on information you have provided plus assumptions about loan costs, interest rates, home values, and life expectancy. All assumptions are subject to change. The report is not an offer to make you a loan, does not qualify you for a loan, and is not an official loan disclosure. The BASIC ASSUMPTIONS section tells you about the assumptions that have been used to calculate most of the numbers in the report. If different assumptions were used, the numbers in the report would change. Home Appreciation - The annual rate at which your home's value grows is called its "appreciation" rate. The median rate used in Truth-in-Lending disclosures is 4%. You can find the actual rates for your state over the past year, 5 years, and since 1980 at www.ofheo.gov. The rate used in the report can be set at anywhere from 0% to 8%. Your "net home value" in the report is based on this rate and assumes that 7% of your home's future value will be used to pay for the cost of selling the home. Creditline Draws (if any) are the ones you selected; see Creditline Estimates for details. Interest Rate - The assumed annual interest rate throughout the loan is either the initial rate charged on the loan, or an "expected" rate. The expected rate equals the initial rate plus the adjustment used in the federally-insured Home Equity Conversion Mortgage (HECM) program to estimate what the adjustable rate might equal over a 10-year period. The adjustment equals the current 10-year Treasury rate minus the current 1-year Treasury rate. The expected rate is generally greater than the initial rate, so it results in larger loan balances on all reverse mortgages, and larger HECM creditlines. In general, the rates actually charged on these loans may tend to fall somewhere between these two rates. The CASH ADVANCES section shows the cash benefits you could get from each plan. These figures are in addition to any cash advances you may use to pay loan fees or closing costs. "$0" means you did not request a cash advance of a particular type. Cash at Closing is the total amount of cash you are requesting to be paid to you at the beginning of the loan. It includes any funds needed to pay off existing debt against your home. It does not include any funds used to pay loan costs.

Page 10 of 11

The Reverse Mortgage Analyst Ludye Poellnitz

Understanding Reverse Mortgage Comparisons -- Page 2 Creditline is the total dollar amount of the creditline account you are requesting. ---Growth Rate is the rate at which the unused funds remaining in the creditline grow larger. Monthly Advance is the fixed dollar amount you are requesting to be paid to you each month. ---Advance Type is the type of monthly advance you are requesting: "Tenure" means loan advances for as long as you live in your home; "term (yrs)" means loan advances for a specific number of years, which appears in parenthesis. LOAN PROJECTIONS - The rest of the report shows what would happen if the loans were to end at five future dates. After x years is the number of years after the loan begins. The middle future date of the five is the "median" projected remaining life expectancy for someone your age, as defined in the federal Truth-in-Lending Act. About half the persons your age will live more than projected, and about half will live less. The other years listed equal 20%, 60%, 140%, and 180% of this median life expectancy. If there is more than one homeowner, the future dates are based on the youngest owner. Each "After x years" section assumes the loans would end at that time. TOTAL CASH ADVANCES is the total of all the cash advances you would receive up to the end of the loan, including any creditline draws described under Basic Assumptions. "Total Cash Advances" does not include any amount remaining in a credit-line at the end of the loan. NET COST is the total dollar amount that you would owe at the end of the loan, including the final creditline draw, minus your "TOTAL CASH ADVANCES" and any final creditline draw. (This number could be negative if the total amount of cash you receive is greater than the total amount you would owe.) CASH REMAINING is the total amount of cash that would be available to you or your heirs at the end of the loan. It includes any amount remaining in your creditline at that time, and any equity left over after the loan is repaid. TOTAL ANNUAL RATE is the total annual average cost expressed as a single rate. It is similar to the Total Annual Loan Cost (TALC) rate defined in Truth-in-Lending law except that it is based on the five future dates explained above, any creditline draws described in Basic Assumptions, a final withdrawal of all credit-line funds, the use at closing of any funds set aside to pay for repairs or 1st-year taxes and insurance, monthly compounding of interest, and the interest rate described in Basic Assumptions. SUMMARY: When you add Total Cash Advances, Cash Remaining, and Net Cost for any plan and year, the total equals 93% of the home's value at that time, assuming it has appreciated at the rate stated above the table, and the cost of selling the home equals 7% of that value.

Page 11 of 11