ROSE FINANCIAL RESPONSE TO THE COVID‐19 PANDEMIC

Due to the extraordinary events related to the Covid‐19 Pandemic, Rose Financial is preparing to introduce a Loan Forbearance Agreement to our clients directly impacted by the pandemic.

What is a Forbearance Agreement?

Forbearance Agreements are agreements between the Lender and the Borrower to reduce or suspend monthly payments for a set amount of time. Rose Financial offers Forbearance Plans of between one and six months. Plans are chosen based on underwriting criteria. These plans are entered into voluntarily by Lender and Borrower. Lenders are not required by law to offer these programs.

Objectives to the Forbearance Agreement

The point of a Forbearance Agreement is (i) Home Retention, (ii) providing an opportunity for a consumer to remain in good standing with the loan account, (iii) provide recovery time for the homeowner to recover economically from the impact of the Pandemic.

Why A Forbearance Agreement?

We believe a Forbearance Agreement is the best approach to the Covid‐19 Crisis to provide temporary relief to consumers directly impacted by the pandemic.

Who Qualifies & Who May Not Qualify

Forbearance Agreements are primarily for borrowers who have a good payment history. For reasons directly related to the pandemic, the borrower’s ability to continue making timely payments is substantial impaired. Forbearance Agreements are not designed for borrower’s whose late payment history does not stem from the pandemic. Eligibility is determined solely by Rose Financial.

Is this a Loan Modification Agreement?

No. Forbearance Agreements do not modify the terms of the loan. While in forbearance, the lender exercises it’s right to suspend collecting monthly payments per contractual agreement. A Lender is authorized under the terms of the Home Loan Contract to voluntarily suspend it’s right to collect monthly payment without being forced to continue once the forbearance begins. A Loan Modification Agreement, on the other hand, permanently changes certain terms and covenants of the Home Loan Agreement.

How Many Payments Will Rose Financial Forbear?

The number of payments is determined case by case. Rose Financial will work directly with the impacted borrower to design a plan that best fits their circumstances. We will offer plans of between one and six months depending on the severity of the economic impact of your situation.

Are the Payments in Forbearance Forgiven by Rose Financial?

No. Forbearance does not mean forgiveness. The interest accruing during the forbearance period will be added to a non‐interest‐bearing account to be paid off either over time or when the loan is paid in full. For example, let’s assume the loan balance is $100,000 with a note rate of 5.00%. Both Lender and Borrower agree to a 3‐month forbearance period, or 90‐days. Each month this balance accrues interest in the amount of $416.67. Multiply this by three months and the amount added to non‐interest‐bearing Forbearance Account is $1,250. A repayment plan for this $1,250 forbearance amount will be determined prior to the formation of the plan.

When Do I Begin Making Payments Again?

Once a Forbearance Agreement is established, the time periods and amounts are laid out in simple and understandable terms. Repayment of the loan begins after the Forbearance period terminates.

Can I Begin Making Payments Before the Forbearance Plan Terminates?

Yes. However, once repayment begins the forbearance plan terminates. Therefore, an early payment will terminate the plan.

Will Rose Financial Charge Late Fees During the Forbearance Period?

No late fees will be charged while in forbearance.

Will Rose Financial Consider Forbearance Payments as Delinquent Payments?

No. Forbearance Payments are never considered delinquent. Lender and Borrower have mutually agreed to suspend payments for a set period of time.

Will Rose Financial Report Delinquent Payments to the Bureaus?

No.

Will this Forbearance Agreement Negatively Impact My Credit Report?

No.

Can I Make Additional Principal Curtailments After My Forbearance Plan is Closed?

Yes and No. Once the Forbearance Plan is closed, any additional post‐forbearance payments amounts will be applied first to the Deferred Balance Account. Principal curtailments will begin only after the Deferred Balance Account is repaid.

Will the Forbearance Agreement Create Negative Amortization on My Loan?

No.

Will the Forbearance Agreement Cause Me to Have a Balloon Payment at Loan Maturity?

No. All Forbearance Agreements will include extending the maturity date of your loan commensurate with the number of payments in forbearance. For example, if your Forbearance Agreement covers three payments, then the maturity date of your loan will be extended by three months.

I have a Second Loan with Rose Financial. Do I Have to Keep My First Loan Current?

Yes. A part of your contractual obligations under your agreement with Rose Financial is keeping all senior liens current.

I have a Second Loan with Rose Financial. Can I Get a Forbearance if My First Loan is in Forbearance?

In most cases, yes. Talk to your representative for more information.