8.	Mortgage Servicing Rights (“MSRs”)

The Bank sells a predominant share of the mortgage loans it originates into the secondary market. In April 2010, the Federal National Mortgage Association (FNMA) terminated its mortgage servicing agreement with the Bank due to the Bank’s capital condition. Accordingly, in April 2010, the Bank sold its MSRs and discontinued directly servicing mortgage loans that it originates, and now sells originations “servicing released”. “Servicing released” means that whoever the Bank sells the loan to will service or arrange for servicing of the loan. In connection with the sale of the Bank’s MSRs, the Bank entered into an agreement with the FNMA under which management believes that the Bank will have no further recourse liability or obligation to FNMA in connection with the Bank’s original mortgage sales and servicing agreement with FNMA or any other recourse obligations to FNMA.