Managing New & Diverse Single Family Loan Automation Processes John Sager and Susan Semba October 20, 2014

IHFA Facts  Started Transitioning from MRB Financing to Alternative Secondary Market Channels in 2009  Large Geographic and Diverse State  1.6 Million Population  >70% Homeownership  Whole Loan Preference  “Best Execution” Strategy

Strong Loan Production

Loan Funding Evolution

Risk Management Loan Commitments (Net of Fallout) + Warehouse Purchases ________________ Total Loan Position Secondary Market Sales (Normally in $5 - $10 million Increments) ± $10 Million Maximum Risk

Risk Position Tracking

Aligning Commitments with Secondary Market Sales Secondary Market Report Forward Sale Tracking Report “Trued Up” Several Times each Week

Pricing by Loan Type* Loan ProductLoan RateKey Features HFA Preferred4.00%Low Rate for 1 st Time Homebuyer Preferred Risk Share5.75%No 1 st Time Homebuyer Requirement, No Mortgage Insurance FHA/VA/RD3.50%Sales Price and Income Limits Apply; If FICO<620, DTI must be <45% Conventional (30 Yr.)3.75%No 1 st Time Homebuyer Requirement, up to 140% AMI Conventional (20 Yr.)3.50%No 1 st Time Homebuyer Requirement, up to 140% AMI Conventional (15 Yr.)3.00%No 1 st Time Homebuyer Requirement, up to 140% AMI *Down Payment Assistance and Homebuyer Tax Credit Programs (MCCs) are Available

Loan Variety

IHFA Lender Connection