BCAC CONFERENCE October 26, 2010 2009 CT MORTGAGE MARKET BCAC CONFERENCE October 26, 2010

Fair Lending Analysis Depends on comparisons (treatment & outcomes) Internal records to internal records Internal outcomes to market facts Fair Lending Analysis is not done in a vacuum. It is done in the context of other mortgage applications processed by your bank and your market’s demographics as local mortgage market. Comparisons are necessary to determine disparate treatment and disparate outcomes if any

2009 CONNECTICUT MORTGAGE MARKET DATA Mortgage market overview (reports & tables) Minority & LMI borrowers Volume Origination rates Denial rates High Cost Mortgage Data High Cost Mortgage Volume and incidence High Cost disparities between minority/non-minority & LMI borrowers What we will review today is the following market data – primarily minority mortgage market data and high cost mortgage market data

Review the basic reports and tables in the special market report prepared for BCAC

2009 Overall Mortgage Market Applications: 184,074 Lenders: 592 Originations: 113,213 (163,419 in 2006)

Mortgage Market Report 1 presents overall mortgage lending including market rank for all lenders. Also recaps lending to minorities and LMI borrowers

Report 1A and 1 B reviews High Cost mortgage lending in CT

Report 3B reviews denials and denial rates for each lender for minority and non-minority applications disaggregated for income class of borrower.

Tables review the minority mortgage market rank and penetration rates (as well as LMI borrowers)

HIGH COST MORTGAGE DATA Very large decline in rate spread mtgs from 2007 392 lenders extended no rate spread mtgs 74 lenders made 10 or more Only 6 lenders originated +100 high cost mtgs 2 CT based lenders originated +40 high cost mtgs