2007_Subprime_Shorting-Home-Equity-Mezzanine-Tranches-1

Footnote Exhibits - Page 0984
Strictly private & confidential
Subprime mortgagors
" Demographically, this borrower is "middle America"
" Financially, this borrower
- Has mismanaged his finances (past delinquencies, foreclosures or bankruptcies, low
credit score)
- Used excessive leverage (high DTI and/or LTV)
- Is cash-strapped (large amount of cash-out refi.)
* While "riskier" than prime and jumbo borrowers, subprime borrowers
- Are not directly impacted by stock market gyrations
- Live in homes that are more liquid, less volatile
Deutsche Bank [
All numbers shown in this presentation are indicative and are based on a sample portfolio. Actual numbers will be
different and will depend on the actual portfolios selected.
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