GOLDFISH MASTER ISSUER

1
GOLDFISH MASTER ISSUER

• GOLDFISH Series 2007-1
• EUR 2,000 million Dutch RMBS based on
  NHG-Mortgages

2
Disclaimer

• The information contained in this Document is
  strictly confidential and intended only for the
  use of authorised recipients. The recipients of
  this Document are hereby notified that any
  photocopying, scanning, reproduction, or
  distribution - in whole or in part - to others at
  any time is strictly prohibited without the prior
  written consent of Fortis Bank nv-sa or any of
  its affiliates or subsidiaries (together Fortis
  Bank). The information contained in this
  Document is proprietary to Fortis Bank. If you
  are not an authorized recipient of this document,
  please contact Fortis Bank, Montagne du Parc 3,
  B-1000 Brussels, Belgium, New Issues department
  (1MU1H), telephone [phone].
• No representation or warranty, express or
  implied, is or will be made in relation to, and
  no responsibility or liability is or will be
  accepted by Fortis Bank or any of their
  respective officers, servants, agents, employees
  or advisors as to or in relation to the accuracy
  or completeness of this Document or any further
  written or oral information made available to the
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  omissions therefrom. In particular, no
  representation or warranty is given as to the
  accuracy or any financial information contained
  herein or as to the achievement or reasonableness
  of any forecasts, projections, management
  targets, prospects or returns. Fortis Bank is not
  acting in the capacity of your financial advisor.
• In addition, this Document does not constitute an
  offer and cannot be considered as an offer of, or
  an invitation to subscribe for or to purchase any
  securities. The information in this Document is
  in extremely summary form for convenience of
  presentation. Under no circumstances can this
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  subject to certain conditions, including, but not
  limited to, the following conditions (1)
  satisfactory documentation, (2) satisfactory due
  diligence, (3) approval of relevant internal
  committees of Fortis Bank, (4) approval of rating
  agencies, if applicable, and (5) approval of the
  board of directors of the recipient.
• The information contained in this Document is not
  intended to provide, and should not be relied
  upon for, accounting, legal, regulatory or tax
  advice or investment recommendations. Prior to
  undertaking any transaction, you should discuss
  with your professional accounting, legal,
  regulatory, tax or other advisers how such
  particular transaction(s) affect you.
• The distribution of this Document in certain
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  Accordingly, persons into whose possession this
  Document comes are advised to inform themselves
  about and to observe any such restrictions.
  Fortis Bank accepts no liability to any person in
  relation to the distribution of this Document in
  any jurisdiction.

3
Contents

• Transaction highlights
• The originators
• Structural overview
• The portfolio
• Key investment considerations
• Contact details
• Annexes
• Fortis
• Fortis Bank Nederland Retail
• Fortis Hypotheek Bank

4
Transaction Highlights

• Goldfish Master Issuer Dutch RMBS Master
  Issuing program dedicated to NHG-guaranteed
  mortgages
• Second Master Issuer in Fortiss funding
  structure for Dutch mortgages
• Transaction based on combined portfolios of
  Fortis Hypotheek Bank and Fortis Bank Nederland
  Retail
• Guaranteed excess spread of 0.40 per annum

• Strong
• Structural
• Features

5
Transaction overview
Assets
Liabilities
Size Mio EUR
Ratings (Fitch)
Stated Coupon
Step-up Coupon
Expected maturity
Legal maturity
Notes Class
100
AAA
Nov. 2099
99.65
A1

Euribor 3m bps
Euribor 3m 15bps
May 2015
A2

May 2017
Nov. 2099
Euribor 3m 20bps
Euribor 3m bps
AA-
7
B
Euribor 3m bps
Euribor 3m 35bps
May 2017
0.35
Nov. 2099
6
Contents

• Transaction highlights
• The originators
• Structural overview
• The portfolio
• Key investment considerations
• Contact details
• Annexes
• Fortis
• Fortis Bank Nederland Retail
• Fortis Hypotheek Bank

7
Group structure
In 2007 Fortis together with Royal Bank of
Scotland and Santander announced a public offer
for the share capital of ABN Amro" (for more
information see Annex A)
8
Fortis Bank Liability structure
Q4 2006 IFRS figures , EUR billion
Total balance sheet EUR 675 billion
9
Business model Fortis Dutch mortgages
Asset Purchasers
Originators
Master issuers
Fortis Hypotheek bank
GOLDFISH M.I. Government Guaranteed
retail
Customer
FORTIS
DOLPHIN M.I. Prime Residential Type 1
notes
loans
Fortis Retail Bank
SPV Government Guaranteed
SPV Prime residential type 1
Customer
retail
SPV Prime residential type 2
CAPITAL MARKET
SPV Government Guaranteed
Direkt bank
BELUGA M.I. Prime Residential Type 2
SPV Prime residential type 1
retail
Customer
SPV Prime residential type 2
Goldfish 2007-1 participants
10
Fortiss Dutch mortgage pool 3 originators
Total Dutch mortgage book EUR 60bn as of
31/12/2006
Fortis Hypotheek Bank Portfolio EUR 32 Bln Sales
Small intermediaries
Fortis Bank Nederl. Portfolio EUR 14,5
Bln Sales branches
Direktbank Portfolio EUR 15,5 Bln Sales
chains
Government guaranteed Of which
already securitised in Solid EUR 2bn
Government guaranteed
Government guaranteed
Prime Dutch residential type 1
Prime Dutch residential type 1
Prime Dutch residential type 1
Of which already securitised in Delphinus 1-11
EUR 14bn
Prime Dutch residential type 2
Prime Dutch residential type 2 Of which already
securitised in Collier and Beluga EUR 6bn
Prime Dutch res. type 2
Not available
Not available
Not available
Type 1 mortgages for mainstream owner occupied
homes Type 2 mortgages to liberal
professions and HNWI
individuals Fortis personnel (owner occupied)

11
Contents

• Transaction highlights
• The originators
• Structural overview
• The portfolio
• Key investment considerations
• Contact details
• Annexes
• Fortis
• Fortis Bank Nederland Retail
• Fortis Hypotheek Bank

12
GOLDFISH Master Issuer
FORTIS
Construction account
Subparticipation
A0
Sale of mortgages
Fortis Hypotheek Bank
GOLDFISH Asset Purchasing FHB B.V.
LOAN
Reserve Account
B0
Cashflow-SWAP-counterparty
GIC
GOLDFISH Master Issuer B.V.
NOTES
Construction account
Subparticipation
MARKET
Sale of mortgages
Fortis Bank Nederland
GOLDFISH Asset Purchasing FBN B.V.
GIC
LOAN
A1,2,
Cashflow-SWAP-counterparty
GIC
B1,2,
13
GOLDFISH Master Issuer compared to Solid

• Similarities
• NHG mortgages
• Statement in OC on 0 solvency
• The Issuer (Goldfish Master Issuer) has been
  informed by the Sellers (Fortis Bank Nederland
  and Fortis Hypotheek Bank) that in their view,
  based upon the solvency regulation on
  securitisations of the Dutch Central Bank ("De
  Nederlandsche Bank"), which came into force on 1
  April 2004, the risk weighting applicable to the
  Notes held by credit institutions regulated by
  the Dutch Central Bank should be zero (0) per
  cent. and that the Notes have a 0 risk weighting
  under such regulation (pursuant to the Basel I
  framework). Under the solvency regulation on the
  credit risk of the Dutch Central Bank
  implementing the Basel II framework (entered into
  force as of 1 January 2007) which includes a
  solvency regulation on securitisations, the risk
  weighting applicable to the Notes held by credit
  institutions by the Dutch Central Bank will
  depend on, inter alia, the method applied by such
  institution .

• Differences
• Two-Step Structure
• Asset Purchaser owner of assets
• Issuer funder of asset purchasers through loans
• Issuance under a Programme
• Issuer will issue new Series in future
• Assets of all Asset Purchasers linked to an
  Issuer serve as collateral for all Series

14
Asset Purchaser Interest Priority of Payments
Mortgage interest received
Asset Purchaser Interest Available Amount
Interest on Collection Account
Prepayment penalties
Senior expenses and servicing fees
Net proceeds not related to principal
Amounts due under the Swap Agreement
Swap payment, if any
Loan interest and Loan Costs
Amounts received in connection with
repurchase, not related to principal
Amounts to be credited to the Loan PDL
Amounts received in connection with sale, not
related to principal
Additional amounts due under Swap Agreement
Amounts received as post-foreclosure proceeds,
not related to principal
Deferred Purchase Price
If the Loan has been repaid, amounts standing to
Collection Account
No tranching at Asset Purchaser Level

Excess spread at Asset Purchaser Level
Asset Purchaser Interest Available Amount
15
Master Issuer Interest Priority of Payments
Notes Interest Available Amount
Senior expenses and servicing fees
Amounts due under the Currency Swap Agreement
Interest received on each Loan
Class A Notes interest
Interest on Issuer Collection Account
Amounts to be credited to the Class A PDL
Currency Swap payment, if any
Class B Notes interest
Amounts to be credited to the Class B PDL
Notes Interest Available Amount
Additional amounts due under Currency Swap
Agreement
Discount Payment to Asset Purchasers
Currency Hedging at Issuer Level
Tranching at Issuer Level
16
Contents

• Transaction highlights
• The originators
• Structural overview
• The portfolios
• Key investment considerations
• Contact details
• Annexes
• Fortis
• Fortis Bank Nederland Retail
• Fortis Hypotheek Bank

17
Key Figures on the FBN Provisional Portfolio as
of 28 February 2007
18
Key Figures on the FHB Provisional Portfolio as
of 28 February 2007
19
Breakdown by Type of Mortgage Loan-FBN
20
Breakdown by Type of Mortgage Loan-FHB
21
Breakdown by Origination Year-FBN
22
Breakdown by Origination Year-FHB
23
Breakdown by LTIMV-FBN
24
Breakdown by LTIMV-FHB
25
Description of the NHG Guarantee Programme

• The Nationale Hypotheek Garantie or NHG Guarantee
  is provided by the Stichting Waarborgfonds Eigen
  Woningen (WEW).
• The WEW was set up to
• Encourage home-ownership and
• Ensure that people have the choice between
  renting and buying a property in The Netherlands.
• NHG Guarantee is provided by the WEW to mortgage
  lenders through
• Its capital built up from the guarantee charges
  and the return on the investment of its capital
  and
• The keep-well agreement with the Dutch state and
  the Dutch municipalities in the form of interest
  free loans if required.
• The Dutch state is rated Aaa/AAA. As the Dutch
  Central Bank considers the NHG Guarantee to be a
  Dutch state guarantee, lenders are not required
  to hold any capital against the NHG guaranteed
  mortgage loans on their balance sheet.
• The WEW finances itself by a one-off charge to
  the borrowers of 0.40 of the principal amount of
  the mortgage loan.
• The WEW has set out general terms and conditions
  which the lenders must follow when granting a NHG
  mortgage loan.
• If the lender has failed to comply with the NHG
  terms and conditions, the WEW has no payment
  obligation to pay for any loss incurred. It may
  also decide to partially pay for a loss if some
  but not all of the NHG terms and conditions are
  fulfilled.

Guarantee provider WEW

• The NHG Guarantee covers
• Outstanding principal
• Accrued but unpaid interest and
• Foreclosure costs.
• Each year the WEW sets a maximum loan amount,
  being EUR 265,000 for 2007.
• Irrespective of scheduled repayments and
  prepayments on the mortgage loans, the NHG
  Guarantee reduces, as from year two, on a monthly
  basis by an amount equal to the monthly payments
  of principal and interest as if the loan were
  being paid on a 30-year annuity basis. This may
  lead to potential mismatches between the
  principal amount outstanding of the mortgage loan
  and the NHG Guarantee. The mismatch is limited
  due to restricting the interest only part of a
  mortgage loan to maximum 50 of the market value
  of the underlying property. Given the fact that
  most mortgage loans experience payment problems
  in their first years, in general, the difference
  between the NHG Guarantee amount and the
  outstanding loan is very small and non-payment by
  the WEW therefore very limited.
• More information can be found on www.nhg.nl .

NHG Guarantee
26
Principal Features of the Underwriting Policy

• An income check is conducted through
• An employers declaration and a recent copy of a
  payment slip for employees and
• Annual accounts and income tax declarations of
  the last 3 years for self-employed borrowers.
• The housing ratio, or debt-to-income ratio, is
  strictly limited (depending on the income and on
  the age of the borrowers).
• The debt component part calculation of the
  housing ratio is based on criteria formulated by
  the Contactorgaan Hypothecair Financiers (code
  of conduct).
• A creditworthiness check is always performed with
  the National Credit Register (BKR). BKR
  registers both positive and negative credit
  history of each Dutch resident, and also assigns
  a rating in case of (earlier) defaults loans in
  arrears are registered by the BKR and kept on
  record for 5 years.
• All collateral offered in the form of existing
  buildings is valued by an independent appraiser
  not involved in the transaction.

Underwriting Policy for NHGs

• The maximum loan size is 265,000 (limit for
  2007). This limit is reset every year by the WEW.
• The maximum amount borrowers may borrow is
• For an existing property the purchase price
  some costs increased by 12 and
• For a new property the purchase/contract price
  some costs increased by 8.
• Mortgage loans are granted only to individuals.
• All types of mortgages, but maximum 50 of the
  value of the property may be interest only.
• Assessment interest
• Fixed interest period lt 5 years assessment
  based on daily rate with a minimum of 6 and
• Fixed interest period gt 5 years assessment based
  on the loan offer interest rate.
• Joint and several liability for mortgage
  commitments (all owners are jointly and severally
  liable).
• The property to be mortgaged must be located in
  The Netherlands.
• The property to be mortgaged must be for owner
  occupation only (not for rental).
• Only first and sequentially lower ranking
  mortgages to Dutch residents for a mortgaged
  asset located in The Netherlands.
• Each mortgage loan is secured by a building
  insurance or a term life insurance.

Underwriting Criteria for NHGs
27
Contents

• Transaction highlights
• The originator
• Structural overview
• The portfolio
• Key investment considerations
• Contact details
• Annexes
• Fortis
• Fortis Bank Nederland Retail
• Fortis Hypotheek Bank

28
Key Investor Considerations

• Goldfish 2007-1 based on 2 bn euro of
  NHG-guaranteed mortgages
• Guaranteed excess spread of 40 bps per year, as
  compared to minimal historical losses (below 1
  bp)
• Well seasoned portfolios
• 8 to 10 year maturity, with a soft bullet
  structure
• Proven master issuer structure, similar to the
  Beluga Master Issuer
• Experienced Originators

29
Contents

• Transaction highlights
• The originators
• Structural overview
• The portfolio
• Key investment considerations
• Contact details
• Annexes
• Fortis
• Fortis Bank Nederland Retail
• Fortis Hypotheek Bank

30
Contact Details
Fortis
Securitisation
Global Liquidity Funding Team
Syndication
Martine Klutz 32 2 565 6247 Martine.Klutz_at_fortis.
com Natacha Thielemans 32 2 565
5136 Natacha.thielemans_at_fortis.com Sandrine
Vanderlinden 32 2 565 1235 sandrine.vanderlinden_at_
fortis.com
Werner Groenendijk 32 2 565 1772 werner.groenendi
jk_at_fortis.com Sabine Bassleer 32 2 565
1263 sabine.bassleer_at_fortis.com

• Didier Lannoy
• 32 2 565 5610
• didier.lannoy_at_fortis.com
• Oscar Meester
• 32 2 565 3291
• oscar.meester_at_fortis.com
• Pierre-Jerome Detry
• 32 2 228 6163
• pierre-jerome.detry_at_fortis.com

31
THANK YOU
32
Annexes

• Fortis
• Fortis Bank Nederland Retail
• Fortis Hypotheek Bank

33

• Fortis is an international financial services
  provider engaged in banking and insurance.
• Fortis offers personal, business and
  institutional customers a comprehensive package
  of products and services through its own
  channels, in collaboration with intermediaries
  and through other distribution partners.

34
Vision and mission
Our vision In an increasingly complex, yet ever
more convergent world, innovation, speed and
agility will be as crucial as scale, track
record and reach. We will stand out as a
professional international financial services
brand, recognised for our ability to deliver
superior and sustainable stakeholder value by
constantly anticipating and surpassing the needs
of customers, investors, employees, partners and
communities wherever we do business.
Our mission Fortis provides compelling customer
solutions creatively. One of Europes most
dynamic and sustainable financial services
brands, by delivering specialised, innovative
and pragmatic customer solutions across a
network of channels and by leveraging our
operational and entrepreneurial expertise
35
Strong growth through acquisitions partnerships
Etalon Life, Cinergy, Dominet, Gutingia,
Cadogan, Global
1990-2006 Staff x 3 Net profit x 8 Market cap
x 16 Total assets x 28
OConnor Co., MNIH, Von Essen Bank
Disbank, Dryden WM, Atradius Factor, OutRight
Life insurance joint venture in India
Intertrust
BGL ASR
Millenniumbcp
MeesPierson Generale Bank
Financial services joint venture with An Post
Muang Thai
ASLK-CGER
Mayban
Assurant
CIT Fortis Investment Management
Creation of Fortis
Taiping Life
Seguros Bilbao
CaiFor
Integration and consolidation
Sustainable growth strategy
Acquisitions
2011
2004
2005
1990
2000
Partnership
Acquisition
Divestment
36
Rankings

• One of the largest financial services provider in
  Benelux (market shares 15 - 30)
• No. 20 of financials in Europe, based on market
  capitalisation
• No. 17 of the largest corporations in the world
  (8th in Europe), based on revenues (Forbes,
  March 2007)
• No. 14 of best performing European
  companies(Business Week, June 2006)
• No. 37 of the worlds leading public companies
  (Forbes, March 2007)

37
Fortis key figures (IFRS, in EUR million)

• FY2006 FY2005
• Net profit before results on
  divestments 4,351 (24) 3,498
• Net profit 4,351 (10) 3,941
• Total income 96,602 90,419
• Total assets 775,229 728,995
• Assets under management 421,817 383,229
• Net core capital 27,133 23,126
• Employees (headcount) 59,747 57,088
• Return on Equity 22.0 23.0
• Cost/income ratio (Banking) 61.2 62.3
• Tier 1 ratio (Banking) 7.1 7.4
• Total capital ratio (Banking) 11.1 10.5
• Combined ratio (Insurance) 96.1 96.0
• Earnings (before results on divestments) per
  share growth 24 44
• Operating leverage
• Bank 2 12
• Insurance - 4 14

Change from FY2005
38
Three leading businesses a balanced portfolio

• Market leadership in Benelux No. 2 in retail
  financial services and No. 1 credit card issuer
• 4 million credit card holders in Benelux and
  Turkey
• Customers Individuals, self-employed, members
  of independent professions and small enterprises

Retail Banking
24
Merchant Corporate Private Banking

• Leading player in Benelux for cross-border
  mid-caps
• Top 5 position in European cross-border leasing
  and factoring
• Top private banking player No. 7 in Western
  Europe and No. 11 worldwide
• Global leader in trust and corporate services
• Worldwide or regional expertise in several
  rapidly developing sectors shipping,
  commodities, export project finance and fund
  administration
• Customers medium-sized enterprises, high net
  worth individuals, large companies and
  institutional customers

45

• Largest insurer in Belgium No. 2 in Life and in
  Non-life
• Leading position in growing market for group,
  life and pensions
• Customers individuals, small and medium-sized
  enterprises and large enterprises
• Sales channels independent brokers and banking
  channel

• Top 3 insurer in the Netherlands
• Leading market position in niche markets (travel
  and leisure, funeral policies)
• Customers individuals and business customers
• Sales channels mainly independent insurance
  brokers

Insurance
31

• Leadership positions in bancassurance in Spain,
  Portugal, Malaysia, Luxembourg
• UKs third largest private car insurer

2006 Contribution of each business to Fortis
net profit (4.4 bn euro)
39
Recent Developments

• On 29 May 2007, Fortis, together with Royal Bank
  of Scotland and Santander (collectively the
  "Banks") announced a public offer for 100 of the
  issued and outstanding share capital of ABN AMRO
  (the "Offer").
• It is intended that, as a result of the Offer,
  Fortis will acquire ABN AMRO's retail and
  commercial banking business in the Netherlands,
  as well as the global private banking and asset
  management businesses . The combination of Fortis
  and such ABN AMRO businesses will create a top
  European financial services provider that has
  more than 80,000 employees worldwide and more
  than 10 million customers in the Benelux region
  alone.
• The aggregate consideration that Fortis will pay
  in respect of the transaction amounts to EUR 24.0
  billion in cash, representing approximately 33.8
  of the total deal value. Fortis intends to raise
  EUR 15 billion of new equity via a rights issue
  and up to EUR 5 billion of new Tier 1 capital, as
  well as to release up to EUR 8 billion of
  capital, through sale of non-core assets,
  securitisation and other similar transactions.
• Extraordinary shareholders' meetings will be
  convened in Belgium and the Netherlands to
  approve the transactions and the capital increase
  and to grant the Board authority to issue the new
  shares

40
Annexes

• Fortis
• Fortis Bank Nederland Retail
• Fortis Hypotheek Bank

41
Retail Banking General
Retail Bank in the Fortis organization
Fortis Board
Chief Executive Office Jean-Paul Votron
Support functions
Group Resources Herman Verwilst Deputy CEO
Horizontal support functions
Investments Jozef De Mey
Finance Gilbert Mittler
Risk Karel De Boeck
Businesses
Strategy Lex Kloosterman
Retail Banking Jos Clijsters
Merchant Private Banking Filip Dierckx
Insurance Peer van Harten
Markets
Retail Banking Netherlands Jeanine Helthuis
Retail Banking Lux Rest of World Schuman Thierry
Retail Banking Turkey Acikalin Huseyin Faik
Retail Banking Belgium Peter Vandekerckhove
42
Retail Banking General

• Introduction
• Fortis Bank Retail Banking (Retail Banking)
  provides financial services to individuals, self-
  employed people, members of the independent
  professions and small businesses
• Retail Banking operates through a variety of
  distribution channels in the Benelux countries to
  deliver service and advice on every aspect of
  individual banking, saving, investment, credit
  and insurance
• Furthermore, Retail Banking is active in France
  and Poland focusing on advice to professionals,
  business owners and executives
• The retail portfolio in Turkey is served by a
  full and tailored product offering
• Recently the international roll out of consumer
  finance related products has been started after
  opening credit shops in Germany and Poland

43
Retail Banking General

• Product range
• Retail Banking Netherlands offers the following
  products
• Mortgages (two labels Fortis and Direktbank)
• Savings
• Payments
• Investments
• Life insurance
• Property insurance
• Consumer loans
• Leasing

44
Retail Banking General

• Distribution
• Depending on customer preference the products are
  distributed through one of these channels
• Branch offices
• Internet
• Direct mail
• Contact centre (telephone)

45
Retail Banking Mortgages

• Introduction
• Fortis Bank label provides the front office
  activities and the main part of the middle office
  activities of the mortgage business of label
  Fortis Bank. The remaining middle office
  activities and back office activities are
  provided by Shared Service Centre Hypotheken
• Label Fortis Bank offers mortgages to
• Private clients (81)
• Small enterprises (8)
• Own employees (11)
• Fortis Retail Banking Netherlands (ex Direktbank)
  has a market share in 2006 of 3.31 based on new
  net production over 2006

46
Retail Banking Mortgages

• Mortgage product assortment
• Interest only mortgage/Equitable mortgage loan
• Life mortgage
• Mortgage loan (non- amortising)
• Life insurance policy only/ hybrid
• Death cover
• Capital accumulation
• Savings mortgage
• Mortgage loan (non- amortising)
• Savings insurance policy
• Death cover
• Savings plan
• Investment mortgage
• Mortgage loan (non- amortising)
• Investment account
• Linear mortgage
• Capital repayments
• Annuity mortgage

47
Retail Banking Mortgages

• Distribution Fortis Bank label
• 97.5 of the mortgages are distributed through
  160 branch offices and the remaining 2.5 deals
  are generated by intermediaries
• A mortgage advisor has to be certified as an
  Erkend Hypotheek Adviseur (Recognized
  Mortgage Advisor) based on the requirements from
  Stichting Erkenningsregeling Hypotheekadviseurs
  (Foundation Recognition Regulation Mortgage
  Advisors)
• Above certification is checked each year

48
Servicing Mortgages
Originator
Fortis Bank Nederland
Fortis Hypotheek Bank
Labels
Fortis Bank
Fortis ASR
Direktbank
Back-office
SSCH (145 FTE)
Bancair leven individueel
49
Servicing Mortgages
Mortgage process
File creation
Advice
Authorization
Acceptance client
Administration
Notary corre- spondance

Retail Banking
SSCH
50
Servicing Mortgages
Description front office process advice and
authorization
Inventory client
Advisory proposal (POVKA)
Request entry
Signing of underwriting proposal
Offer

• During the process of advice and authorization,
  the following elements of control take place
• The offering programme POVKA is based on
  underwriting norms
• The morality of the client is tested
• The underwriting proposal should be signed by two
  authorized officers

51
Servicing Mortgages

• Underwriting proposal
• The following inputs create a mandatory basis
  for any underwriting proposal
• BKR details
• Credit proposal by advisor on selection of 7
  points (e.g. income, type of customer)
• Maximum mortgage to income housing ratio
• Loan to foreclosure value (LTFV)

52
Servicing Mortgages
Description middle office process acceptance of
client and creation of file

• During the process of acceptance by the client
  and the creation of the client file, control
  takes place
• The file should be provided with a content
  document signed by designated advisor

53
Servicing Mortgages
Description back office process notary
correspondence and administration
Creation contract
Control file (1)
Signing contract
Control file (2 3)
File management
Add to administration back office system

• The control of file (1) consists of
• First check on essential elements
• Qualification of signature acceptant
• The control of file (2) consists of
• Quality control total file
• The control of file (3) consists of
• Credit technical control

54
Intensive Care Recovery Individuals

• Approach
• Preventing debtor risks is achieved through
• A personal approach as the account managers and
  head of department visit clients when needed in
  order to enforce payment and/or avoid auction
• A client oriented approach
• Encouraging good payment behaviour (e.g.
  mandatory direct debits, informing clients as
  soon as a payment is in arrears, leveraging the
  intermediary network)
• The debtor risks is made controllable by finding
  solutions for problems that has arisen by
• Assuming a professional, clear and proper
  position towards clients
• Handling debtors in a commercially sound way
• Debtor risks is reduced by
• Recognising the learning moments with regard to
  acceptance policy

55
Intensive Care Recovery Individuals

• Procedure
• Payment 3 weeks overdue an out of the NINJA
  system automatically generated reminder of the
  payment is sent to the client
• Payment 5 weeks overdue an out of the NINJA
  system automatically generated warning notice is
  sent to the client
• Payment 6 weeks overdue the arrears mortgages is
  reported and transferred to the ICR department
• At arrival, the ICR department will explore
  whether the concerned client has an account with
  Fortis. A manually written letter is sent to the
  client by the Support Group
• 10 days after the letter from the Support Group
  has been sent the file will be transferred to an
  account manager

56
Intensive Care Recovery Individuals

• Procedures
• The Account manager in ICR first tries to make
  contact with client by phone. If this is not
  possible, a letter of demand will be sent
• If payment has not been received 4 months after
  the due date, any guarantors will be notified
  accordingly
• If payment has still not been received 7 months
  after the due date and no suitable solution has
  been found, the loan will finally be called in
  (this can take place earlier if the situation
  requests it)

57
Intensive Care Recovery Individuals
Flow chart procedures
Confirm arrange- ments and check every month if
payments are made as agreed.
Contact client to explain what the
consequences are. Confirm in writing.
Arrears reported to HKD
Client is contacted by phone/letter.
Arrangements made?
Yes
No payments
No pay-ments
No
Payments made
Confirm that we could not reach the client or
make arrangements. Send letter by
registered mail within 7 days. Mention auction!
In case of NHG, note terms!
Send auction order. In case of NHG, send copy
to NHG.
No reaction

• Through out the process, if needed
  representatives from the Arrears Management
  department will make a home visit to client

58
Annexes

• Fortis
• Fortis Bank Nederland Retail
• Fortis Hypotheek Bank

59
Underwriting Process
Mortgage Loan application
Input in underwriting system Octopus
Middle Office
Electronic mortgage criteria check integrated in
Octopus
Middle Office
Accepted
Check
Back Office
Settlement / Administration
Back Office
60
Underwriting Policy

• Underwriting is conducted based on three pillars,
  similar to other Dutch mortgage lenders
• Income (housing ratio)
• LTV
• Track record
• An income check is conducted through
• An employers declaration and a recent copy of a
  payment slip for employees
• Annual accounts and income tax declarations of
  the last 3 years for self-employed borrowers
• The definition of what counts as income follows
  the NHG example
• The LTV check uses
• The appraisal of the house is done by means of
  independent appraiser or WOZ (conservative
  valuation for tax purposes)
• It focuses on the foreclosure value of the
  property (typically 85 of the market value)
• It is maximised at 130 LTforecluseV, which
  corresponds with 111 LTmarketV, as for tax
  reasons it can be argued that 11 costs are
  involved, creating the maximum tax deduction
• A creditworthiness check is always performed with
  the National Credit Register (BKR). BKR
  registers both positive and negative credit
  history of each Dutch resident, and also assigns
  a rating in case of (earlier) defaults loans in
  arrears are registered by the BKR and kept on
  record for 5 years

61
Delinquencies Arrears Management

• The payments are made by automatic direct debit
  on the first day of each month, securing timely
  payments.
• If there is not enough money in the account, the
  direct debit procedure will be repeated. Should
  the direct debit fail again, a letter will be
  sent to the borrower. If the borrower still fails
  to make payment, the file will be passed to the
  arrears management department.
• The arrears management policy is implemented as
  below
• During the period in which the arrears build up,
  efforts are always made to find a solution
  acceptable to both the borrower and the lender.
• An auction is not always regarded as the best
  option for retrieving the loan advance and is
  therefore often avoided through e.g. a last
  attempt in a face-to-face meeting or a repayment
  arrangement.

Action
a letter will be sent to the
borrower arrears management department will
send out a first reminder a second reminder
will be sent out by the arrears
department any guarantors will be
notified if no suitable solution has been
found, the loan will be called in
Day 30 Day 54 Day 84 Day 120 Day 210
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Arrears Management Flow Chart
Client is contacted by phone
Arrears Reported
Talked to client and filled in checklist
Arrangements made? Send written report of
conversation to client
Confirm arrangements and check every month. Do
not write separate letters every month if
payments are made as agreed
Yes
No
Client could not be reached by phone so send
letter and checklist
Client responds?
Confirm that client could not be reached/ make
arrangements. Send letter by registered mail
within 7 days. Mention auction!
Contact client by phone again and explain
consequences. Confirm in writing
No
Yes
Arrangements made?
Confirm arrangements and check every month. Do
not write separate letters every month if
payments are made as agreed.
Send auction order
Yes
No
Letter by registered mail pay within 7 days and
mention auction
Contact client by phone again and explain
consequences