Reshaping of US Real Estate: Emergence of the Asian consumers Locally and Globally.  Jim Park Chairman Emeritus Asian Real Estate Association of America & CEO, The Mortgage Collaborative

AAPI Impact on US Mortgage Lending Increasing The evolution of US Asian Demographics Lending impact and opportunities from AAPI Influence of foreign buyers on local real estate The China Factor

% of Projected New Households 2010-2025 New Household Formation Driven by Diverse Markets 13 million of the 17 million projected between 2010 and 2025 % of Projected New Households 2010-2025 Hispanic – 40.5% You’ve heard the national data and market trends regarding the household formation. According to Harvard Joint Center, over the next ten years, more than 70 percent of household formation will come from diverse segments. We have also seen increases in diverse origination business. SOURCE: Updated 2010-2020 Household and New Home Demand Projections, Sept 2010 Joint Center for Housing at Harvard, US Census – homeownership rates Q2 2013

Expanding Beyond Gateway Cities

Fastest Growing Community The current estimated population is 19.4 million; the South and the West have experienced the most growth

AAPI Community is Diverse Top Asian Languages Spoken in the US

Significant Income and Savings

Education Highly Valued

Broad Economic impact

Buying Power Continues to Expand

Homeownership Growth Potential

AAPI’s Disproportionate Impact on Lending Business 1,996,718 total number funded $596,467,360,000 total dollar amount funded Average amount financed: $298,724 Hispanic 2,214,680 $394,055,070,000 Average amount financed: $177,929 African American 1,531,819 $262,878,713,000 Average amount financed: $171,612 Despite a significantly smaller population, over the last 5 years, AAPI are the largest minority participant in the purchase money mortgage market both in terms of both number of loans funded and total dollar amount funded.

AAPI’s impact on Honolulu Lending   Honolulu County, HI 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total Purchase Loans (units) 6,364 6,029 6,288 7,003 7,503 8,426 9,050 9,667 10,195 10,812 Conventional Purchase Loans (units) 4,151 4,122 4,317 4,919 5,077 6,007 6,648 7,291 7,922 8,602 FHA Purchase Loans (units) 969 441 259 161 181 266 389 471 488 509 AAPI Purchase Loans 3,295 3,123 3,217 3,404 3,369 4,435 4,861 5,232 5,518 5,840 AAPI Conventional Purchase Loans 2,975 2,714 2,673 2,860 2,844 3,784 4,166 4,507 4,824 5,141 AAPI FHA Purchase Loans 485 214 133 85 76 257 305 320 353 AAPI Conventional as % of Total 90.3% 86.9% 83.1% 84.0% 84.4% 85.3% 85.7% 86.1% 87.4% 88.0% AAPI FHA as % of Total 14.7% 6.9% 4.1% 2.5% 2.3% 5.3% 5.8% 6.0% AAPI Total as % of Total 51.8% 51.2% 48.6% 44.9% 52.6% 53.7% 54.1% 54.0% AAPI Conventional as % of Total Conventional 71.7% 65.8% 61.9% 58.1% 56.0% 63.0% 62.7% 61.8% 60.9% 59.8% AAPI FHA as % of Total FHA 50.1% 48.5% 51.4% 52.8% 42.0% 68.0% 66.1% 64.8% 65.6% 69.4% Source: iEmergent

Lending Opportunities in AAPI Market Alternative Credit Lending Condo Loans Pledge Asset Loans

Global Impact on US Real Estate International purchase of US real estate is expanding Impact of Chinese buyers is growing International buyers are purchasing higher priced homes Financing options are limited for international buyers

Source: NAR

Make up of International Buyers

Top International Purchasers

Mean Prices: All Buyers vs. International Clients Source: NAR All Buyers Non-resident Resident International Mean Prices: All Buyers vs. International Clients Source: NAR

International buyers spend more dollars on average purchase

Thank you AREAA.org Radian’s Market Driver Initiative Jim Park --- jpark@areaa.org