Green Point Mortgage

Green Point Mortgage (GPM), is in the business of originating, selling, securitizing and servicing mortgage loans secured by one- to four-family residences. Also, certain loans originated by GPM are retained in the Bank's loan portfolio.

As a specialty mortgage lender, GPM's strategy is to focus on specialized mortgage loan products for primarily high credit quality borrowers. GPM generally places an emphasis on credit scores obtained from three major credit bureaus to evaluate the credit quality of borrowers.

GPM considers high credit quality borrowers to be those whose credit scores equal or exceed levels required for the sale or exchange of their mortgage loans through the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. (continued below...)

GPM offers mortgage loan products in order to provide maximum flexibility to borrowers and third-party mortgage brokers and other entities through which it originates mortgage loans. These products include conforming agency mortgage loans, non-conforming mortgage loans (including Alt A mortgage loans), home equity loans and limited documentation loans. Alt A loans may fail to satisfy certain elements of the agency underwriting criteria such as those relating to documentation, employment history, income verification, loan to value ratios, qualifying ratios or other compensating factors.

As of December 31, 2002, GPM's mortgage loan servicing portfolio consisted of mortgage loans with an aggregate principal balance of $29.6 billion, including $14.9 billion serviced for GreenPoint and $14.7 billion serviced for other investors. GPM can realize the value embedded in its mortgage loan servicing portfolio immediately by selling its mortgage loan servicing rights or, alternatively, it can realize the value gradually over the life of the mortgage loan servicing portfolio through the receipt of monthly mortgage loan servicing fees and imputed interest.