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FINANCIAL RESULTS BRIEFING FOR THE NINE-MONTH PERIOD ENDED DECEMBER 2010

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The fixed dollar payments approximate an amount of direct financial injury that borrowers may have suffered as a result of a specific error. The regulators believe that payments of designated amounts for particular types of injury will avoid the need for borrowers to provide proof of the amount of the injury suffered and will avoid the delay and expense associated with an examination of the particular circumstances involved in each borrower’s case. The fixed dollar payments may over compensate borrowers for the harm they suffered in some cases. Nonetheless, there may be some cases where a borrower believes.

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