Helping Renters Overcome Barriers to Homeownership PMI and the First-Time Homebuyer Welcome – Thank you Disclaimer *MGIC recommends you consult your company’s Social media Policy before taking any immediate action *Mentions of individuals in this presentation does not equal an endorsement by MGIC PRESENTED BY: Geoffrey Cooper, Director – Customer Solutions, MGIC

Agenda MI Background MI Trends Renters and First-Timers MI Cost Comparisons HFA Preferred TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline

MI Refresher Private versus Government (FHA, VA, RD) MI BACKGROUND MI Refresher Private versus Government (FHA, VA, RD) MI Primary versus pool MI Borrower-paid (BPMI) versus Lender-paid (LPMI) Premium Plans: Monthlies, Singles, and Splits Homeowners Protection Act of 1998 established rules for cancellation TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline

MI Cancellation Under the Act BACKGROUND MI Cancellation Under the Act Borrower-Initiated Termination – 80% of original value Automatic Termination – 78% of original value Final Termination – Midpoint of mortgage term Applies to BPMI but LPMI is non-cancellable HUD has determined that FHA mortgage insurance may not be terminated TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline

BACKGROUND TRENDS: Highlights strong growth of Facebook - Milestones Increases year-over-year in active users Progression continues to be a place for engagement and connecting – Not going anywhere Be where your customers are!

BACKGROUND TRENDS: Popularity/Users Facebook has the highest penetration among the top social media entities. Facebook has more US profiles than the next 3 largest sites combined Greatest impact on least amount of effort. – Average Facebook user has 303 friends (2014) – those Friends can translate to opportunities If you have to pick 1 SM site – It’s Facebook

MI TRENDS TRENDS: Highlights strong growth of Facebook - Milestones Increases year-over-year in active users Progression continues to be a place for engagement and connecting – Not going anywhere Be where your customers are!

MI TRENDS TRENDS: Highlights strong growth of Facebook - Milestones Increases year-over-year in active users Progression continues to be a place for engagement and connecting – Not going anywhere Be where your customers are!

The Facts Tell a Different Story … MI TRENDS Old Habits Die Hard? WHY SHOULD I USE SOCIAL MEDIA: Important to note the value of a SM presence should be approached from the perspective of brand-building, where the goal is to cultivate relationships online aimed at building support and trust with your audience. Social media allows you to stay front-of-mind with customers, business partners and friends, with minimal effort. A simple share, ‘Like’ or comment on a post can be that tap on the shoulder that says, “I hear what your saying, nice article”. Or it can be that pat on the back that says “Good Job”. It keeps you front-of-mind. *Social Media is not a direct sales tool…it is a Relationship and Brand building tool that can generate word-of-mouth marketing which may lead to sales. I constantly remind people that social media is a two-way street, and everyone has a voice and that engagement is key. So let’s take a closer look. The Facts Tell a Different Story …

And Conventional Loans are Serving First Timers MI TRENDS PMI is On The Rise; And Conventional Loans are Serving First Timers PMI up 32% from Q1 to Q2, versus 24% for FHA GSEs accounted for 62% of securitized mortgages for first-time homebuyers in Q2, up from 57% in the same quarter a year ago Source: Inside Mortgage Finance, July 25, 2014 TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline

First-Time Homebuyer Tax Credit RENTERS First-Time Homebuyer Tax Credit TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline

RENTERS Young Renters Believe Buying a Home Will be Too Difficult For Them Right Now TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline Source: Fannie Mae National Housing Survey Topic Analysis, May 2014

RENTERS Young Renters See Credit, Lack of Savings, and Income as Primary Barriers to Buying Now Source: Fannie Mae National Housing Survey Topic Analysis, May 2014 TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline

The Myth of the Renter Generation: RENTERS The Myth of the Renter Generation: Young Renters Want to Buy At Some Point TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline Source: Fannie Mae National Housing Survey Topic Analysis, May 2014

Purchasing Power Falls as Interest Rates Rise COST COMPARISONS The Cost of Waiting: Purchasing Power Falls as Interest Rates Rise 6.00% $1,109 $1,140 $1,171 $1,202 $1,232 5.75% $1,082 $1,112 $1,142 $1,172 5.50% $1,055 $1,084 $1,114 $1,143 5.25% $1,028 $1,056 $1,086 5.00% $1,002 $1,029 $1,058 $1,085 $1,113 4.75% $976 $1,003 $1,031 $1,057 4.50% $950 $1,004 $1,030 Purchase Price $180,000 $185,000 $190,000 $195,000 $200,000 MGIC Estimate includes P&I + MI payment, assuming 760 FICO and 5% down TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline

Monthly Payment Comparison: COST COMPARISONS Monthly Payment Comparison: 760 FICO, 95% LTV, Standard Coverage TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline Source: MGIC online calculator, https://content.mgic.com/calculators/servlet

Monthly Payment Comparison: COST COMPARISONS Monthly Payment Comparison: 720 FICO, 95% LTV. Standard Coverage TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline Source: MGIC online calculator, https://content.mgic.com/calculators/servlet

Monthly Payment Comparison: COST COMPARISONS Monthly Payment Comparison: 680 FICO, 95% LTV, Standard Coverage TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline Source: MGIC online calculator, https://content.mgic.com/calculators/servlet

Monthly Payment Comparison: COST COMPARISONS Monthly Payment Comparison: 660 FICO, 95% LTV, Standard Coverage TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline Source: MGIC online calculator, https://content.mgic.com/calculators/servlet

Other Considerations: COST COMPARISONS Other Considerations: 660 FICO, 95% LTV, Standard Coverage TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline Note: Monthly MI cancelled in Month 62 based on 3% annualized home price appreciation Source: MGIC online calculator, https://content.mgic.com/calculators/servlet

Give Me the Lowest Cash-to-Close Option Available HFA PREFERRED Give Me the Lowest Cash-to-Close Option Available 720 FICO, HFA Preferred, Conventional 97% LTV vs. FHA 96.5% LTV TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline Source: MGIC online calculator, https://content.mgic.com/calculators/servlet

HFA Preferred is Available Through New Mexico Mortgage Finance Authority 97% LTV / 105% CLTV Reduced MI coverage Gifts and grants may be used to reduce borrower own funds required to close Best secondary market product available for overcoming the barriers to homeownership cited by renters TAKEAWAY: Here’s what you can do on Facebook today, to begin building and strengthening relationships online. Topics to cover: (This is where we are going today) Better understand business trends of Facebook Take a look at who is on Facebook and Growth of Facebook demographic How you can bridge the gap between old and new customers Examine how you can re-engage old customers and maintain/retain current customers with Facebook See clear examples of success strategies Steps you can take today to help strengthen bonds with current and future customers Q&A Happy to answer any questions on or offline

Director – Customer Solutions QUESTIONS? Geoffrey F. Cooper Director – Customer Solutions 414.347.2738 Geoff_cooper@mgic.com Questions?