State of Mortgage Lending – National View Greater Cincinnati MBA September 17, 2013 Presented by Bill Cosgrove Vice Chairman Mortgage Bankers Association

2 Housing Market – Bright spot in U.S. Economy Source: MBA – March 2013 Mortgage Finance Forecast

3 Inventory of Homes – Dropped Sharply Sources: US Census Bureau, New Residential Sales; National Association of Realtors ®, Existing Home Sales via Moody’s Economy.com.

4 Ohio vs. National – NDS Data OhioUS Total Serious Delinquency Q %7.31% Q %5.88% Foreclosure Starts Q %0.96% Q %0.64% Unemployment Rate 7.07%7.57% Refinance Share 68.2%72.4% YOY Home Price Change (Q1 2013) -.42%2.01%

5 Oversized & Outdated – Gov’t Dominated 1 ST Loss Position

6 Private Capital First 1 ST Loss Position Backstop & Liquidity SECONDARY MARKET STRUCTURE

7 GSE Single Family Transition Steps Risk ShareCommon SecuritySmall Lender AccessCredit AccessSecuritization Platform End State TransitionConservatorship

8 Hundreds of Rules QM QRM Servicing Standards Licensing Loan Officer Compensation RESPA/TILA HOEPA Basel III Appraisal Standards ECOA Disclosure State Level G-Fee

9 Year of Implementation ALREADY THIS YEAR ATR/QM Final Rule Loan Officer Rule Servicing Rule Disparate Impact Basel III STILL MORE TO DROP! QRM (re-proposed, but not final) RESPA/TILA

10 Be prepared!

11 Become a member! JOIN THE TEAM BE PART OF THE SOLUTION HAVE YOUR VOICE HEARD GRAB A SEAT AT THE TABLE

12 Grassroots in Action - MAA

13 Conferences

14 Conferences

15 Together, we can affect change!