New Jersey Carpenters Health Fund v.
DLJ Mortgage Capital, Inc., et al.

BASIC INFORMATION

1. Why did I get the notice package?

   You or someone in your family may have purchased or otherwise acquired Home Equity Mortgage Pass-Through Certificates issued by any of the following four (4) HEMT trusts: Series 2006-4 (“HEMT 2006-4”), Series 2006-5 (“HEMT 2006-5”), Series 2006-6 (“HEMT 2006-6”), and Series 2007-2 (“HEMT 2007-2”).

   The Court directed that the Notice be sent to potential Settlement Class Members because they have a right to know about the proposed Settlement of this class action lawsuit, and to understand how the Settlement of this Action may affect their legal rights, before the Court decides whether to approve the Settlement. If the Court approves the Settlement, and after any objections and appeals are resolved, the Claims Administrator appointed by the Court will make the payments provided for in the Settlement.

   The Notice explains the lawsuit, the Settlement, Settlement Class Members’ legal rights, what benefits are available, who is eligible for them, and how to get them.

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2. What is this lawsuit about?

   Plaintiff brought this lawsuit on behalf of itself and other similarly situated purchasers of the following four (4) HEMT trusts: Series 2006-4 (“HEMT 2006-4”), Series 2006-5 (“HEMT 2006-5”), Series 2006-6 (“HEMT 2006-6”), and Series 2007-2 (“HEMT 2007-2”). Certificates were securitized and underwritten by Credit Suisse Securities (USA) LLC and its related entities (collectively, “Credit Suisse”). This lawsuit alleges that the Defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 by making material misstatements and omitting material information from the Offering Documents regarding the systematic disregard of the stated underwriting guidelines used to originate the mortgage loans supporting the Certificates. Plaintiff alleges that these misstatements and omissions artificially inflated the value of the Certificates.

   The lawsuit alleges, inter alia, that the Offering Documents misstated that the underwriting guidelines were used to “assess the borrower’s ability to repay the related mortgage loan, to assess the value of the mortgaged property and to evaluate the adequacy of the property as collateral for the mortgage loan;” that exceptions to the underwriting guidelines were granted only “where compensating factors exist;” and that certain originators ensured that the loans were “originated in accordance with” the stated underwriting guidelines when in fact, these guidelines were systematically disregarded in the origination of mortgages collateralizing the Certificates. Defendants have denied, and continue to deny, all of these allegations.

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3. Why is this a class action?

   In a class action, one or more people called the plaintiff sues on behalf of people who have similar claims. All of the people with similar claims are referred to as a class or class members. One court resolves the issues for all class members, except for those who exclude themselves from the class.

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4. Why is there a settlement?

   The Court has not decided in favor of the Defendants or of the Settlement Class. Instead, both sides agreed to the Settlement to avoid the distraction, costs, and risks of further litigation, including trial, and Lead Plaintiffs agreed to the Settlement in order to ensure that Settlement Class Members will receive compensation. Lead Plaintiffs and Lead Counsel believe the Settlement is in the best interest of all Settlement Class Members in light of the real possibility that continued litigation could result in no recovery at all.

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WHO IS AFFECTED BY THE SETTLEMENT?

5. How do I know if I am part of the Settlement?

   The Court directed that everyone who fits the following description is a Settlement Class Member:

   All Persons that (1) purchased or otherwise acquired an interest in any Certificates in Home Equity Mortgage Trust (“HEMT”) 2006-5 on or before June 3, 2008; or (2) purchased or otherwise acquired an interest in any Certificates in HEMT 2006-4, HEMT 2006-6, or HEMT 2007-2 on or before March 23, 2009.

   The Court directed that everyone who fits the following description is excluded as a Settlement Class Member:

   All Persons that (1) timely and validly requesting exclusion from the class pursuant to and in accordance with the terms of the Preliminary Approval Order or who previously released Securities Act claims against any of the Defendants relating to HEMT 2006-4, HEMT 2006-5, HEMT 2006-6 or HEMT 2007-2; and (2) any of the Defendants in the Action, their officers and directors at all relevant times, members of their immediate families, and their legal representatives, heirs, successors or assigns and any entity in which any Defendant has or had a controlling interest, except for any Investment Vehicle, to the extent such entities themselves had a proprietary (i.e. for their own account) interest in the Certificates.

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6. What if I am still not sure if I am included?

   If you are still not sure whether you are included, you can ask for free help. You can contact your broker or the Claims Administrator at info@HEMTMBSSettlement.com or toll-free at 1-877-854-3797, for more information. Or you can fill out and return the Proof of Claim, to see if you qualify. (See FAQ 9 for more information on filing out a Proof of Claim form).

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THE SETTLEMENT BENEFITS – WHAT YOU GET

7. What does the Settlement provide?

   In exchange for the Settlement and the release of the Released Claims (defined in the Notice), as well as the dismissal of the Action, Defendants have agreed that a payment of $110 million will be made by Defendants (or on their behalf) to be divided, after taxes, fees, and expenses, among all Settlement Class Members who send in a valid Proof of Claim form.

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8. How much will my payment be?

   At this time, it is not possible to make any determination as to how much any individual Settlement Class Member may receive from the Settlement. If you are a Settlement Class Member, your share of the Net Settlement Fund will depend on several things, including, how many Settlement Class Members submit timely and valid Proofs of Claim, the total claims represented by the valid Proofs of Claim that Settlement Class Members send in, the number of Home Equity Mortgage Pass-Through Certificates you purchased or acquired, how much you paid for the certificates, when you purchased or acquired the certificates, and if you sold your certificates and for how much.

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HOW YOU GET A PAYMENT – SUBMITTING A CLAIM FORM

9. How can I get a payment?

   To be eligible for a payment, you must submit a valid Proof of Claim form to the Claims Administrator at:

   HEMT MBS Settlement
   P.O. Box 3266
   Portland, OR 97208-3266

   Click here to download a Proof of Claim form. Read the instructions carefully, fill out the Proof of Claim form, include all the documents the form asks for, sign it, and mail or submit it online so that it is postmarked no later than May 5, 2016.

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10. When would I get my payment?

    It is not possible at this time to determine when the Settlement proceeds will be distributed to eligible Settlement Class Members. The Court will hold a Settlement Hearing on May 10, 2016, to decide whether to approve the Settlement. If the Court approves the Settlement after that, there might be appeals. It is always uncertain when these appeals will be resolved, and resolving them can take time, perhaps more than a year. It also takes time for all the Proof of Claim forms to be processed. Please be patient.

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11. Where are the full tables of Factors and Certificates referenced in the Notice?

    You can find the tables referenced in the Notice on the Important Documents page of this website.

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EXCLUDING YOURSELF FROM THE SETTLEMENT CLASS

12. How do I get out of the proposed Settlement Class?

    Each Settlement Class Member will be bound by all determinations and judgments in this Action, including those concerning the Settlement, whether favorable or unfavorable, unless such person or entity mails, by first class mail (or its equivalent outside the U.S.), or otherwise delivers a written Request for Exclusion from the Settlement Class, addressed to:

    HEMT MBS Settlement Administrator
    P.O. Box 3266
    Portland, OR 92708-3266

    The exclusion request must be received no later than April 12, 2016. Each Request for Exclusion must clearly indicate the name, address and telephone number of the person seeking exclusion, that the sender requests to be excluded from the Settlement Class in the case styled New Jersey Carpenters Health Fund v. DLJ Mortgage Capital, Inc. et al., No. 08-cv-5653-PAC (S.D.N.Y.), and must be signed by such person. Such persons requesting exclusion are also directed to provide the following information:

    1. the identity and original face value of Certificates purchased (or otherwise acquired) or sold;
    2. the prices or other consideration paid or received for such Certificates;
    3. the date of each purchase or sale transaction; and
    4. proper evidence of the transactions.

    Requests for exclusion will not be valid if they do not include the information set forth above and are not received by April 12, 2016, unless the Court otherwise determines.

    If a person or entity requests to be excluded from the Settlement Class, that person or entity will not receive any benefit provided for in the Stipulation.

    Requests for exclusion cannot be submitted via phone, email or online.

    Please see the Notice for complete information on being excluded from the Settlement.

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13. If I exclude myself, can I get money from the proposed Settlement?

    No. If you exclude yourself, you may not send in a Proof of Claim to ask for any money.

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THE LAWYERS REPRESENTING YOU

14. Do I have a lawyer in this case?

    The Court ordered that the law firm of Cohen Milstein Sellers & Toll PLLC represent the Settlement Class Members, including you. These lawyers are called Lead Counsel. If you want to be represented by your own lawyer, you may hire one at your own expense.

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15. How will the lawyers be paid?

    Lead Counsel has not received any payment for its services in pursuing claims against Defendants on behalf of the Settlement Class, nor has Lead Counsel been reimbursed for its out-of-pocket expenses. Before final approval of the Settlement, Lead Counsel intends to apply to the Court for an award of attorneys’ fees from the Settlement Fund in an amount not to exceed 28% of the Settlement Fund (or $30,800,000.00), net of Court-approved Litigation Expenses, plus interest at the same rate and for the same time period as earned by the Settlement Fund. At the same time, Lead Counsel also intends to apply for the reimbursement of certain Litigation Expenses in an amount not to exceed $3,100,000.00, plus interest at the same rate and for the same time period as earned by the Settlement Fund. Litigation Expenses may include reimbursements for, among other things, lost wages and litigation related expenses of Lead Plaintiff in accordance with 15 U.S.C. § 77z-1a(4). The sums approved by the Court will be paid from the Settlement Fund. Members of the Settlement Class are not personally liable for the payment of these sums.

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OBJECTING TO THE SETTLEMENT

16. How do I tell the Court that I object to the proposed Settlement?

    Any Settlement Class Member who does not request exclusion in accordance with the instructions in FAQ 12 may object to the Settlement, the Plan of Allocation, or Lead Counsel’s request for an award of attorneys’ fees and reimbursement of Litigation Expenses. Objections or oppositions must be in writing. You must file any written objection or opposition, together with copies of all other supporting papers and briefs, with the Clerk’s Office at the United States District Court for the Southern District of New York at the address set forth below on or before April 26, 2016. You must also serve the papers on Lead Counsel for the Settlement Class and counsel for the Defendants at the addresses set forth below so that the papers are received on or before April 26, 2016.

    Clerk’s Office	Lead Counsel for the Class	Counsel For Defendants
    UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK 500 Pearl Street New York, New York 10007	COHEN MILSTEIN SELLERS & TOLL PLLC Joel P. Laitman Christopher Lometti Michael Eisenkraft Kenneth M. Rehns 88 Pine Street 14th Floor New York, New York 10005 Steven J. Toll 1100 New York Ave, N.W. Ste 500 West Washington, D.C. 20005	MORGAN, LEWIS & BOCKIUS LLP Jeffrey Q. Smith Jennifer Hurley McGay Jaward Muaddi 101 Park Avenue New York, NY 10178

    Any objection must include:

    1. the full name, address, and phone number of the objecting Settlement Class Member;
    2. a list and documentation evidencing all of the Settlement Class Member’s transactions involving the Certificates, including brokerage confirmation receipts or other competent documentary evidence of such transactions, including the amount and date of each purchase or sale and the prices paid and/or received;
    3. a written statement of all grounds for the objection accompanied by any legal support for the objection;
    4. copies of any papers, briefs or other documents upon which the objection is based;
    5. a list of all persons who will be called to testify in support of the objection;
    6. a statement of whether the objector intends to appear at the Final Approval Hearing; and
    7. the objector’s signature, even if represented by counsel.

    Persons who intend to object to the Settlement, the Plan of Allocation and/or to Lead Counsel’s application for an award of attorneys’ fees and reimbursement of Litigation Expenses, and who desire to present evidence at the Final Approval Hearing, must include in their written objections the exhibits they intend to introduce into evidence at the Final Approval Hearing.

    You may not object to the Settlement, or any aspect of it, if you are not a member of the Settlement Class or if you excluded yourself from the Settlement Class.

    Please see the Notice for complete information on objecting to the Settlement.

    Unless the Court orders otherwise, any Settlement Class Member who does not object in the manner described in the Notice will be deemed to have waived any objection and will be forever foreclosed from making any objection to the proposed Settlement or Lead Counsel’s request for reimbursement of expenses. Settlement Class Members do not need to appear at the hearing or take any other action to indicate their approval.

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17. What is the difference between objecting and excluding myself?

    Objecting is simply telling the Court that you do not like something about the proposed Settlement. You can object only if you are a Settlement Class Member and stay in the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class. If you exclude yourself, you have no basis to, and may not, object to the Settlement because the case no longer affects you.

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THE COURT’S SETTLEMENT HEARING

18. When and where will the Court decide whether to approve the proposed Settlement?

    The Final Approval Hearing will be held on May 10, 2016, at 10:00 a.m., before the Honorable Paul A. Crotty at the United States District Court for the Southern District of New York, 500 Pearl Street, Courtroom 14C, New York, New York 10007. The Court reserves the right to approve the Settlement at or after the Final Approval Hearing without further notice to the members of the Settlement Class. The Court has the right to approve the Settlement, the Plan of Allocation or the request for attorneys’ fees and reimbursement of Litigation Expenses at or after the Final Approval Hearing without further notice to the members of the Settlement Class.

    The Final Approval Hearing may be adjourned by the Court without further written notice to the Settlement Class. If you intend to attend the Final Approval Hearing, you should confirm the date and time with Lead Counsel.

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19. Do I have to come to the hearing?

    No. Lead Counsel will answer questions the Court may have. But, you are welcome to come at your own expense.

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20. May I speak at the hearing?

    If you wish to be heard orally at the Final Approval Hearing in opposition to the approval of the Settlement, the Plan of Allocation, or Lead Counsel’s request for an award of attorneys’ fees and reimbursement of Litigation Expenses, and if you have filed and served a timely written objection as described in the Notice, you also must notify counsel on or before April 26, 2016, concerning your intention to appear. Persons who intend to object and desire to present evidence at the Final Approval Hearing must include in their written objections, the identity of any witnesses they may call to testify and exhibits they intend to introduce into evidence at the hearing.

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IF YOU DO NOTHING

21. What happens if I do nothing at all?

    If you do nothing, you will get no money from this Settlement. But, unless you exclude yourself (in accordance with the procedures set forth in FAQ 12), you will still be part of the Settlement Class and subject to the terms of the Settlement.

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GETTING MORE INFORMATION

22. How do I get more information?

    The Notice summarizes the proposed Settlement. More details are in the Stipulation and Agreement of Settlement dated December 21, 2015 (the “Settlement Agreement”). You can also get a copy of the Settlement Agreement and other documents on this website here, and you can also obtain answers to common questions regarding the proposed Settlement by contacting the Claims Administrator toll-free at 1-877-854-3797.

    You can also contact the Claims Administrator using the information on the Contact Us page.

    Please do not call the Court or the Clerk of the Court for additional information about the Settlement.

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