Case 1:15-cv-00293-LTS-RWL Document 429-31 Filed 09/30/19 Page 1 of 13

PLAINTIFF’S EXHIBIT 31
 Case 1:15-cv-00293-LTS-RWL Document 429-31 Filed 09/30/19 Page 2 of 13
DOJ: Default: Recovery:Znd Lien·cr:edit Initiative
Concept Design Document - Tactlcal

Ver sion 1.4

March, 2012

WRM#: 12019772
Business Sponsor: Mark Davis
Business Lead: Pat rick Michael Boyle
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a: Business Project Manager : Jason Oquendo
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1- IT Project Manager:
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 (1 .0) Executive Summary

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Executive Summary
To meet the Department of Justice Settlement credit opportunity relief strip, the Mortgage Banking Recovery department will
implement a proactive recovery short sale deficiency forgiveness program and 2 nd lien release/ write-off strategy to maximize
DOJ credit.

Proactive Recovery short sale deficiency forgiveness will impact Recovery short sale transactions on charged-off JPMC
Bank Owned 2 nd mortgages where the 1st mortgage is serviced by a DOJ Settlement impacted Bank. This will align
Recovery Short Sales with the Open Side/ Loss Mitigation Short Sale Teams and protocols.

Objectives/Benefits
• Identify eligible loan for DOJ credit potential
Align Recovery's short sale process
Develop DOJ specific reporting
Align processes for DOJ credit accounting
Ensure alignment between RCV IT and RCV1 Admin Support

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This project will ensure Recovery is in compliance with the Department of Justice Settlement provisions and allow for the
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identification of Recovery Assets to equal $397MM in DOJ credit.
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 Replace statements or words in gray with specific project information.

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Objectives & Benefits, Scope, Assumptions & Constraints - use source Executive Summary pages In the Statement Of Need document.

CONFIDENTIAL / SUBJECT TO PROTECTIVE ORDER JPMC-MRS-00043505

 (1.1) Scope

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■ In Scope
In Scope Topics In Scope Details
- All Mortgage/HE charged-off JPMC bank owned 2no mortgages where the 1st mortgage is serviced by
Products a DOJ settlement impact ed bank.
- Send notification to borrower of Service r's decision to release the lien and not pursue further
Lien Release collection action and his or her right to occupy the property until a sale or other title transfer act ion
occurs.

- Send notification to local authorities, such as tax authorities, courts, or code enforcement
departments, when Servicer decides t o release the lien and not pursue further collection action.
- Update customer credit bureaus for accounts identified as part of the Proactive Portfolio Lien
Credit Bureau Updates
Release/ DOJ Credit program.
- The following manual letters will need to be created and added to the Recovery Info Source Letter
Letter Impacts Library for manual request by the Loss Recovery Support Group

■ Proactive Lien Release Customer "Opt Out" Confirmation Letter

■ Notification of Customer Request for Short Sale Consideration
■ Notification of Customer Short Sale Approval
■ already exists and is in the Recovery Info Source Library (no changes needed)
■ Notification of Customer Short Sale Denial
■ Notification of Customer Short Sale M issing Documents Required
■ Notification of Customer Short Sale Status Update
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1- - The following letter will need to be created for mailing by 3rd party Marketing Vendor:
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Proactive Lien Release Customer "Opt Out" Notification Letter
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- This above letter images for all impacted customers identified as part of the Proactive Lien Release
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Program will need to be saved as part of the permanent loan record in iVault.

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 (1.1) Scope

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■ Out of Scope
Out Scope Topics Out Scope Details

- Charged-off Non-Bank Owned Securitized/Serviced Mortgage Products

Products - Non-Recovery Products
- Non-Mortgage Products
" Recovery will grant 2nd lien deficiency waivers to those customers involved in short transactions
Loans with pt mortgage loans serviced by DOJ Settlement i mpacted banks (Bank of America, Wells
Fargo, GMAC, Citi-Bank, JPMorgan Chase).

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 (1.2) Critical Success Factors

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CSF CSF Area Critical Successful Factor - Description Priority Business Case
# Value

1 Cost/ Loss 12% DOJ credit reduced to 10% if debt forgiveness/ Lien High DOJ credit
Avoidance release occurs in 2013 vs. 2012

Scope/ Approach: LOB will build processes to quickly implement campaign

2 Expense Reduction

Scope/ Approach:

3 Revenue Generation

Scope/ Approach:

4 Customer Experience Deficiency forgiveness by releasing the 2nd lien Medium N/A

Scope/ Approach: Recovery will grant 2nd lien deficiency waivers to those customers involved in short transactions with l51
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mortgage loans serviced by DOJ Settlement impacted banks (Bank of America, Wells Fargo, GMAC, Cit i-
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Bank, JPMorgan Chase). A proactive 2nd extinguishment / lien release program will also be established to
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a: 5 Regulatory/ Improved customer experience in compliance w ith the DOJ Medium N/A
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Scope/ Approach: Implement robust internal controls with identification of portfolios for DOJ credits.
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 (2.0) Key Impacted Areas (What groups have work to do)

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Business Areas (Line of Business/Department) IT Areas {Tower/Application)

Default - Recovery Vendor/Portfolio Management Default - Recoveryl

Default - Recovery Internal Recovery Operations lnfosource

Default - Recovery Administration Support GBDS

Default - Lien Release Operation Connectivity Services

Default - Loss Recovery Support Group iVault

Servicing - Year End 1099 Reporting lnfol - (test only)

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 (2.1) Work to be Completed

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Ref Name of the in-scope Explain in detail how the Specific Work to be Done
# business function business function (in column 2) Include the group doing the work and the work to be done by the group
(section 1.1) is impacted

1 Lien Release Business process changes Recoveryl

Letter Impacts
2
.FiveReceipt
new letters -
of Short sale
lnfosource - build 5 new Recovery letter templates including the following
variables:
request • Mortgagor 1
. Denial letter • Mortgagor 2
. Missing document letter • Mortgagor 3
. Status update letter • Mailing Address 1
. Confirmation letter for • Mailing Address 2
mass mailing campaign • Mailing City, State, Zip
• Account Number
• Property Address
• Data fields to be filled in by user
GBDS - Support printing of 5 new letters
iVault - load new letters in current daily feed
lnfol -Testing only (wit h infosource)

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3 Mass Mailing On time mass mailing campaign Connectivity Services - Process for 3-4 mailings (not ongoing BAU) for 3 files:
::, Solicitation to 38,000 customers via 3rd • Output to 3rd party vendor: business created list of loans to generate mass
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for printing and mailing
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. Load letter images into
loss recovery support group to insert notes into Recovery 1
iVault iVault - Support creation of new folders and load 38,000 letters
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 Replace statements or words in gray with specific project information.

Case 1:15-cv-00293-LTS-RWL Document 429-31 Filed 09/30/19 Page 10 of 13

What Business Functions are being added, enhanced or eliminated by this project/Initiative?

2Reference # to support identification of functional change on subsequent slides

1
ldentify the Business Function using the following basic syntax as the guideline: Verb J Noun Phrase. The noun
phrase should be business meaningful in terms of an action, event or unit of work that creates value to the business
2
Define, in business terms, what this Business Functions does and how it is changing (e.g., enhancement to support a
new channel or partner or new to support new functionality required for the Patriot Act etc.)
3
Highlight how this Business Function results in outcomes or impacts to the environment- does it write a record to a
database, create a file and deliver it, determine a condition etc.

CONFIDENTIAL/ SUBJECT TO PROTECTIVE ORDER JPMC-MRS-00043511

 (2.2) IT Controls

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# Questions Yes/No Answers

2.2.1 Are new UDBAs being created or existing No

UDBAs being dropped?

2.2.2 Is any new data being captured? No

2.2.3 Is new Pl or sensitive data is being No

captured?

2.2.4 Are new data exchanges being introduced Yes Creating new file to existing 3rd party vendor to create mass mailing to customers
with entities outside of JPMC? (38,000 letters)

2.2.5 Are new third party (vendors or supplier) No

being introduced as part of the project?

2.2.6 Is an application being decommissioned? No

2.2.7 Is data being archived as part of this No

project?

2.2.8 Does the project call for new documents to Yes

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 (2.3) Other Impacts

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How many different development teams are required to
3
complete the work?

Is the data model changing in any way? Are columns,

No
tables, schemas being added, altered or dropped?

Are transaction volumes increasing as a result of the

project? (For example, are more rows added to an No
interface file)

Will a significant number of rows be added to a database? No

Are processes being added that will significantly increase

No
the demand on existing hardware?

Is the Recovery Time Objective or Recovery Point

No
Objective changing?

Is additional storage being requested or is storage being

No
removed?

Are any requirements regarding data backups or data

No
retention being changed?

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 (3.0) Systems and Applications Architecture

Case 1:15-cv-00293-LTS-RWL Document 429-31 Filed 09/30/19 Page 13 of 13

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