1. Benefits of Conventional Lending Melissa Schirz MGIC Marketing Program Specialist

2. MGIC.com/social The information presented in this presentation is for general information only, and is based on guidelines and practices generally accepted within the mortgage finance industry and is not intended to be all-inclusive. MGIC makes no representations or warranties of any kind with respect to the accuracy, completeness or suitability for any purpose of the information contained in this presentation. MGIC expressly disclaims any and all warranties, express or implied, including without limitation warranties of merchantability and fitness for a particular purpose regarding these materials and this presentation. In no event will MGIC be liable for any direct, indirect, incidental, punitive or consequential damages of any kind with respect to the presentation or materials provided. All examples are hypothetical and are for illustrative purposes only. This presentation is not intended and should not be interpreted or relied upon as legal advice. We encourage you to seek advice from a qualified professional.

3. MGIC.com/social Source: MGIC Market Trend Analysis October 2015 1.8 to 2.5% Increase Employment

4. MGIC.com/social Source: MGIC Market Trend Analysis October 2015 Home Prices 6.02 to 11.12% Increase

5. MGIC.com/social % of Each Age Group planning to buy a home in the next 5 years Source: BMO Harris Bank June 2014 Opportunity in front of us

6. MGIC.com/social FHA Single-Family Originations (Excludes Streamline Refis) Source: FHA Quarterly Report to Congress; August 2015 (2015Q3 contains July only) July 2015: 20% had score 720+; 46% had score 680+ FHA Credit Score Distribution

7. MGIC.com/social 1.3% Down 2.Faster equity build up 3.Streamlined execution for lenders 4.Pre-approved HFA DPA programs 5.No first time homebuyer requirement Conventional Benefits

8. MGIC.com/social 6.Charter-level MI coverage LTVStandard CoverageCharter Coverage 95.01 – 97.00%35%18% 90.01 – 95.00%30%16% 85.01 – 90.00%25%12% 80.01 – 85.00%12%6% Conventional Benefits

9. MGIC.com/social 6.Charter-level MI coverage 7.Variety of MI premium choices Features Monthly Premiums Single Premiums Split Premiums Low Monthly Payment No Monthly MI Payment Upfront MI Payment Cancellable Refundable Tax Deductible* Financeable* 3 rd Party Paid Option* 8. *Check your investor guidelines for details on financed MI and 3 rd party payment options. *Borrowers should consult with a professional tax advisor for details about MI tax deductibility. Conventional Benefits

10. MGIC.com/social Loan Structure Options *Sample interest rates. Example is for illustrative purposes only. FHA 96.5% LTV 97% LTV 3% DPA Monthly MI 97% LTV 5% DPA Upfront Single MI 95% LTV 5% DPA Monthly MI Conventional

11. MGIC.com/social After 5 Years *Sample interest rates. Example is for illustrative purposes only. FHA 96.5% LTV 97% LTV 3% DPA Monthly MI 97% LTV 5% DPA Upfront Single MI 95% LTV 5% DPA Monthly MI Conventional Estimated Conventional MI cancellation after 61 months. $1,335 $1,229$1,266

12. $200,000 purchase 720 FICO FHA 96.5% 97% Conv. With DPA Down Payment$7,000$6,000 Base Loan Amount$193,000$194,000 Compare $1,000 difference

13. $200,000 purchase 720 FICO FHA 96.5% 97% Conv. With DPA Down Payment$7,000$6,000 Base Loan Amount$193,000$194,000 Upfront Premium (financed into loan amount) $3,378$0 Total Amount Borrowed$196,378$194,000 Compare $2,378 in equity

14. $200,000 purchase 720 FICO FHA 96.5% 97% Conv. With DPA Down Payment$7,000$6,000 Base Loan Amount$193,000$194,000 Upfront Premium (financed into loan amount) $3,378$0 Total Amount Borrowed$196,378$194,000 Interest Rate4.5%5% Compare

15. $200,000 purchase 720 FICO FHA 96.5% 97% Conv. With DPA Down Payment$7,000$6,000 Base Loan Amount$193,000$194,000 Upfront Premium (financed into loan amount) $3,378$0 Total Amount Borrowed$196,378$194,000 Interest Rate4.5%5% Monthly MI Payment$136$97 Compare With less MI

16. $200,000 purchase 720 FICO FHA 96.5% 97% Conv. With DPA Down Payment$7,000$6,000 Base Loan Amount$193,000$194,000 Upfront Premium (financed into loan amount) $3,378$0 Total Amount Borrowed$196,378$194,000 Interest Rate4.5%5% Monthly MI Payment$136$97 Monthly Loan Payment (P&I+MI) $1,131$1,138 Compare Similar monthly payment

17. Compare FHA monthly savings = $7 Extra FHA Costs: Down Payment + $1,000 Upfront MI + $3,378 Total = $4,378 + $40/month over 5.1 years = $6,818 $106/Month Savings $200,000 purchase 720 FICO FHA 96.5% 97% Conv. With DPA Down Payment$7,000$6,000 Base Loan Amount$193,000$194,000 Upfront Premium (financed into loan amount) $3,378$0 Total Amount Borrowed$196,378$194,000 Interest Rate4.5%5% Monthly MI Payment$136$97 Monthly Loan Payment (P&I+MI) $1,131$1,138 assuming 3% annual appreciation Est. MI Cancellation (in years) Not Cancellable 5.1 Est. Payment in 5 years (assuming MI cancellation) $1,118$1,012 Est. Equity in 5 years$52,841$54,348

18. MGIC.com/social mgic.com/micalculator mgic.com/mgicconnects

19. MGIC.com/social melissa_schirz@mgic.com https://www.linkedin.com/in/melissaschirz/ @mschirz