Mortgage Finance 

Mortgage Repurchase Risk Update Conference Call 

May 10, 2011  Conference Call Highlights: 
Chris Gamaitoni  
Please join Compass Point Research & Trading, LLC for a conference call to discuss mortgage repurchase risks on Wednesday, May 11th 
202‐534‐1387 
cgamaitoni@compasspointllc.com  at  11:00 AM Eastern.  Our featured guests will be Isaac M. Gradman and Richard J. Barrent.  Mr. Gradman is an independent attorney, book 
Mortgage Banks | Mortgage Policy  editor and the Managing Member of IMG Enterprises.  He is one of the country’s leading experts in mortgage‐backed securities litigation 
  and other legal issues stemming from the financial crisis.  Mr. Barrent is the President and Chief Operating Officer of The Barrent Group 
Jason M. Stewart, CFA  which was founded in September 2008 with the objective of putting loans back to contractually responsible parties, including originators, 
202‐540‐7306  because of material breaches of contractual representations and warranties. 
jstewart@compasspointllc.com   
Mortgage REITs | Mortgage Rates  Dial‐In: 877.641.0093 
Moderator: Jason Stewart 
 
Compass Point analysts and the guest participants will address the following topics before taking Q&A from participants: 
 
 The current threshold that needs to be met in order to receive rescission ‐ does causation of default need to be proven? 
 
 What are the differences, if any, in success ratios of rescission requests by loan category? 
 
 A discussion of the Maine Retirement system ruling on the de facto merger of Countrywide and Bank of America (BAC—NC). 
 
 Will the inclusion of Bank of New York  Mellon (NK—NC) in the Walnut Place lawsuit cause trustees and investors to work more 
closely together? 
 
 What are the different stages of resolution by investor category?  Has the Bank of America (BAC—NC) and Assured Guaranty (AGO—
NC) settlement changed the landscape? 
 
 Does some type of structured settlement make sense as the ultimate resolution? 

See Important Disclosures that Begin on the Second to Last Page of this Report 
Compass Point Research & Trading, LLC 
Mortgage Market Monitor: FHA Initiates First Claims Denial Suit, LPS Shows Inventory Overhang Still Tremendous, Zillow.com Downgrades U.S. Home Price Expectations            2

Detailed Bios:
Isaac M. Gradman 
 
Isaac Gradman, an independent attorney, book editor and the Managing Member of IMG Enterprises is one of the country’s leading experts in mortgage‐backed securities 
litigation and other legal issues stemming from the financial crisis. While practicing as a commercial litigator at the Howard Rice law firm in San Francisco, Isaac was involved in 
some of the earliest litigation arising from the subprime mortgage crisis, including the representation of PMI Mortgage Insurance Co., the second largest mortgage insurer in 
the country, in a suit against originator WMC Mortgage Corp. (and its parent, GE Money Bank), over misrepresentations relating to a $1 billion pool of subprime mortgages. 
This was one of the first actions of its kind. Isaac also defended PMI in an action by IndyMac Bank in the Northern District of California, in which IndyMac challenged PMI’s 
rescission of coverage as to a pool of over 6,000 loans for which IndyMac had refused to turn over loan files. 
 
Isaac continues to consult with clients on issues stemming from this crisis, including the viability of ongoing MBS‐related litigation and the interpretation of rep and warranty 
violations, chain of title issues, and securities fraud and tort claims. Isaac’s consulting work for the Gerson Lehrman Group has earned him a ranking in the top 5% of all council 
members. Isaac has authored numerous articles and given presentations on such topics as the procedural hurdles facing investors in securing repurchases and other relief, 
issues over rights to access loan files, the probability of success and potential losses stemming from putbacks and other mortgage claims and the constitutionality of 
government loan modification efforts. Isaac has appeared on Bloomberg Radio and is regularly quoted in major media outlets as an expert on these issues. 
Isaac Gradman received his B.A. in Political and Social Thought with Highest Distinction from the University of Virginia and his J.D. cum laude from New York University School 
of Law. He later clerked for Judge Joan Lenard in the Southern District of Florida. 
 
He is the author of: The Subprime Shakeout blog which can be found here: http://www.subprimeshakeout.com 
 
Richard J. Barrent 
 
Mr. Richard J. Barrent is the President and Chief Operating Officer of The Barrent Group.  The Barrent Group was founded in September 2008, with the objective of putting 
loans back to contractually responsible parties, including originators, because of material breaches of contractual representations and warranties.  The Barrent Group provides 
forensic loan file review and related recovery services.  Their clients are investors in home mortgages and mortgage‐backed securities (MBS), monoline MBS bond insurers and 
other entities risking losses from underperforming mortgage loans.  The Barrent Group is a family‐owned, cutting edge firm focused on forensic residential mortgage loan re‐
underwriting, fraud review and consulting ‐ specializing in assistance with repurchase and recovery support.  Now, more than ever before, a turn‐key solution for expert 
comprehensive loan file reviews, experienced transactional repurchase/recovery assistance and sagacious consulting advice are becoming an integral part of achieving 
transparency and success in Residential Mortgage Backed Security (RMBS) investments. 
 
Mr. Barrent has more than 18‐years experience in the mortgage industry, with eight years of senior management responsibilities.  Prior to forming The Barrent Group, Mr. 
Barrent was Vice President of Wells Fargo Corporate Trust Services, leading the forensic loan review services and repurchase administration group.  He also held other officer‐
level positions at Wells Fargo, including Vice President of Wells Fargo Home Mortgage, Assistant Vice President of Wells Fargo Financial, Correspondent Lending Manager and 
Retail Branch Manager. 
 
Mr. Barrent received his M.S. in Education from the University of Wisconsin‐Madison and a B.S. in Education from Northern Illinois University. 

Chris Gamaitoni | 202‐534‐1387 | cgamaitoni@compasspointllc.com 
Jason Stewart | 202‐540‐7306 | jstewart@compasspointllc.com 
Compass Point Research & Trading, LLC 
Mortgage Market Monitor: FHA Initiates First Claims Denial Suit, LPS Shows Inventory Overhang Still Tremendous, Zillow.com Downgrades U.S. Home Price Expectations            3

Important Disclosures
 
Coverage Universe Investment Banking Relationships
Rating Number Percentage Rating Number Percentage*
BUY               13 39% BUY                       ‐ 0%
NEUTRAL               16 48% NEUTRAL                        ‐ 0%
SELL                  4 12% SELL                        ‐ 0%
Total                33 100% Total                        ‐ 0%
*Percentage of Investment Banking clients in Coverage Universe by rating

Analyst Certification
We, Chris Gamaitoni and Jason Stewart, hereby certify that the views expressed in this research report accurately reflect our personal views about the subject securities or issues. We further certify that we have not received
direct or indirect compensation in exchange for expressing specific recommendations or views in this report.

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Chris Gamaitoni | 202‐534‐1387 | cgamaitoni@compasspointllc.com 
Jason Stewart | 202‐540‐7306 | jstewart@compasspointllc.com 
Compass Point Research & Trading, LLC 
Mortgage Market Monitor: FHA Initiates First Claims Denial Suit, LPS Shows Inventory Overhang Still Tremendous, Zillow.com Downgrades U.S. Home Price Expectations            4

Ratings, Coverage Groups, and Views and Related Definitions

Buy (B), Neutral (N), Sell (S) - Analysts recommend stocks as Buys or Sells for inclusion on the firm’s recommended list. Being assigned a Buy or Sell on the recommended list is determined by a stock's absolute total rate
of return potential, which includes potential or projected dividends. Any stock not assigned as a Buy or a Sell is deemed Neutral. A Buy (B) represents a total rate of return potential of 15% or greater on a 12-month hori-
zon. A Neutral (N) represents a total rate of return of –15% to +15% on a 12-month horizon. A Sell (S) represents a total rate of return at or below -15% on a 12-month horizon. Conviction Buy and Sell lists represent
investment recommendations focused on either the size of the potential return, the likelihood of the realization of the return, or the time to realization of the return.

Return potential represents potential and projected dividends and the price differential between the current share price and the price target expected on a 12-month time horizon associated with the price target. Price targets
are required for all covered stocks. The return potential, price target and associated time horizon are stated in each report adding or reiterating a Recommended List membership.

Not Rated (NR). The investment rating and target price have been removed pursuant to Compass Point policy when Compass Point is acting in an advisory capacity in a merger or strategic transaction involving this com-
pany and in certain other circumstances. Rating Suspended (RS). Compass Point Research has suspended the investment rating and price target for this stock, because there is not a sufficient fundamental basis for determin-
ing an investment rating or target. The previous investment rating and price Compass Point has suspended coverage of this company. Not Covered (NC). Compass Point does not cover this company. Not Available or Not
Applicable (NA). The information is not available for display or is not applicable. Not Meaningful (NM). The information is not meaningful and is therefore excluded.

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Chris Gamaitoni | 202‐534‐1387 | cgamaitoni@compasspointllc.com 
Jason Stewart | 202‐540‐7306 | jstewart@compasspointllc.com