1. Crescent Mortgage Company | Title | Name
Industry Update
Fowler Williams, CMB
President & CEO
Crescent Mortgage Company
October 19th , 2017
Crescent Mortgage Company |

2. Crescent Mortgage Company | Title | Name
Looking Backwards – HMDA
Source: FFIEC and Mortgage Bankers Association
Crescent Mortgage Company |

3. Crescent Mortgage Company | Title | Name
Looking Backwards – 2015 HMDA – Credit Unions
Source: FFIEC and Mortgage Bankers Association
Crescent Mortgage Company |

4. Crescent Mortgage Company | Title | Name
Looking Backwards – 2015 HMDA – Credit Unions
Source: FFIEC and Mortgage Bankers Association
Crescent Mortgage Company |

5. Crescent Mortgage Company | Title | Name
2017
Looking Forward - Mortgage Finance Forecast
Slight increase in purchase transactions.
Refinance share cut by 50% from year end 2016 to year end 2019.
100 bps rise in interest rates from year end 2016 to year end 2019.
Crescent Mortgage Company |

6. Crescent Mortgage Company | Title | Name
2017 New Housing Crisis | Supply
Monthly Supply of Homes for Sale in United States – shaded areas indicate recessions
Sellers market in most areas of US
Supply of homes under $250,000 still lowest. (builders and realtors site cost of goods, regulation, and insurance)
Fairly consistent / stagnant rate since 2013.
1965 through May 2017
Crescent Mortgage Company |

7. Crescent Mortgage Company | Title | Name
2017 New Housing Crisis | Supply
Housing Starts in United States – shaded areas indicate recessions
Good upward trend
Still barely above the lows of last 50 years
1958 through May 2017
Crescent Mortgage Company |

8. Crescent Mortgage Company | Title | Name
2017 New Housing Crisis | Supply
Year over Year Change in Builder Application Survey Index
Crescent Mortgage Company |

9. Crescent Mortgage Company | Title | Name
2017 New Housing Crisis | Supply
Homeownership Rate – shaded areas indicate recessions
Not proven to have recovered from housing crisis.
Still barely above the lows of last 50 years
Chicken or Egg?
Low homeownership rate caused by lack of available housing, or is lack of available housing caused by low homeownership rate?
1965 through May 2017
Crescent Mortgage Company |

10. Crescent Mortgage Company | Title | Name
2018 and Beyond – Looking Ahead
Looking Ahead
Crescent Mortgage Company |

11. Crescent Mortgage Company | Title | Name
2017 Looking Ahead
Home Mortgage Disclosure Act (HMDA)
HMDA - October 15,2015 Home Mortgage Disclosure Act Rule (HMDA)
New collection on loans/applications based on FINAL ACTION date on or after Jan. 1, 2018.
New Rule 48 Data Points
Current Rule =23 (20 are modified for new rule)
New = 25
Tick-Tock
Will require data collection in 2017 for applications whose FINAL ACTION is on or after 1/1/2018
One Exception - GMI (ethnicity, race, sec) based on application date on or after 1/1/2018
Crescent Mortgage Company |

12. Crescent Mortgage Company | Title | Name
2017 Looking Ahead
Home Mortgage Disclosure Act (HMDA)
Data Point Categories - BEFORE
App/Company Elements
Application Date
Application/Loan Number
Reporter ID
Preapproval Request
Race, Ethnicity, Sex
Underwriting Elements
Action Taken/Date
Reasons for Denial (optional)
Income
Type of Purchaser
Loan Features
Loan Type
Loan Purpose
Loan Amount
Property Elements
Property Type
Occupancy Type
Lien Status
Property Location
Pricing Elements
Rate Spread (only if above threshold)
HOEPA Status
Crescent Mortgage Company |

13. Crescent Mortgage Company | Title | Name
2017 Looking Ahead
Home Mortgage Disclosure Act (HMDA)
Data Point Categories - AFTER
App/Company Elements
Application Date
Universal Loan ID
Legal Entity Identifier
Pre-Approval Request
Application/Loan Number
Reporter ID
Preapproval Request
Race, Ethnicity, Sex
Age
Application Channel
MLO NMLSR ID
Underwriting Elements
Action Taken/Date
Reasons for Denial (optional)
Income
Type of Purchaser
Credit Scores
DTI Ratio
Combined LTV Ratio
AUS type
Loan Features
Loan Type
Loan Purpose
Loan Amount
Loan Term
Business or Commercial Purpose
Reverse
Open –End Line of Credit
Prepayment Penalty Term
Introductory Rate Period
Non-Amortizing Features
Property Elements
Construction Method
Property Location
Occupancy Type
Lien Status
Property Address
Property Value
Manufactured Home Secured Property Type
Manufactured Home Land Property Interest
Multifamily Affordable Units
Total Units
Pricing Elements
Rate Spread (all)
HOEPA Status
Origination Charges
Discount Points
Lender Credits
Interest Rate
Total Loan Costs / Points and Fees
Crescent Mortgage Company |

14. Crescent Mortgage Company | Title | Name
2017 Looking Ahead
New Uniform Residential Loan Application
New Loan Application
On August 23, 2016, Fannie Mae and Freddie Mac (the GSEs) published the redesigned Uniform Residential Loan Application (URLA) to provide the industry with sufficient time to begin analysis and planning for the future URLA implementation, system updates, and the transition to the new automated underwriting system (AUS) specifications.
Original Implementation Date 1/1/2018 but now:
July 1, 2019, and will be required to use it beginning in Feb for all new loan applications.
The CFPB reviewed the redesigned URLA under ECOA and Regulation B. On September 23, 2016, CFPB issued a notice of Bureau Official Approval of the URLA establishing a safe harbor for use of the URLA under the Equal Credit Opportunity Act (ECOA) and Regulation B.
Not a “blank PDF” as in the past – dynamic based on application characteristics
Separate pages for each borrower
Crescent Mortgage Company |

15. Crescent Mortgage Company | Title | Name
2017 Looking Ahead – Financial Markets
Driven by
Financial Stocks
Promise of Corporate Tax Cuts
Promise of Regulatory Relief
Crescent Mortgage Company |

16. Crescent Mortgage Company | Title | Name
Market Disruption Potential
1. North Korea
2. Twitter
3. Not Passing Corporate Tax Reform
“To the extent we get the tax deal done, the stock market will go up higher. But there’s no question in my mind that if we don’t get it done, you’re going to see a reversal of a significant amount of these gains.”
-Treasury Secretary Steve Mnuchin
(Yesterday)
Crescent Mortgage Company |

17. Crescent Mortgage Company | Title | Name
2017 Washington D.C. Update
Housing Holdovers
Mel Watt , Director FHFA
Term Expires January 1,2019
Richard Cordray, Director CFPB
Term Expires July 1, 2018
PHH Corp v. CFPB 2016 US Court of Appeals “single director” structure unconstitutional.
Can only be removed from office for
Inefficiency
Neglect of duty
Malfeasance
Rumored to run for Governor of Ohio
Crescent Mortgage Company |

18. Crescent Mortgage Company | Title | Name
2017 Washington D.C. Update
Trump Housing Administration
Dr. Ben Carson - HUD Secretary
Literally Hundreds of Empty Desks in Housing
Brian Montgomery,
FHA Commissioner (nominee)
Served as FHA chair in Bush Administration
Ginnie Mae = (nominee not official)
David Kittle
Crescent Mortgage Company |

19. Crescent Mortgage Company | Title | Name
2018 and Beyond
GSE Reform – Kick the can or get something done?
Fannie Mae
Freddie Mac
Single Security
Big Data
Blockchain
Reputational damage to financial industry
Crescent Mortgage Company |

20. Crescent Mortgage Company | Title | Name
2018 and Beyond
How to NOT Succeed
Don’t Focus on First Time Homebuyer
Don’t Focus on Hispanic Homebuyer
No longer “emerging market”
Don’t cater to Millennium Members
Don’t focus on Construction / Permanent (supply)
Ignore Technology Disruptors
Don’t Believe Big Bank Return to Government Lending, Servicing
Basel III, False Claims Act
Ignore Member / Borrower Experience
Ignore the Cost to manufacture loans
Don’t Choose partners / vendors wisely!
Crescent Mortgage Company |

21. Crescent Mortgage Company | Title | Name
Information | Access | Training | Support | Technology | Compliance | Fulfillment | Partnership | Advocacy
As Crescent enters our 25th year of operation,
and on behalf of the entire Crescent Mortgage Family – we would like to say a very sincere thank you. We have the best partners in the world, and,
the best is yet to come…
Questions, Comments, or Ideas on how we can be a better partner for YOU:
Fowler Williams, CMB | President & CEO | Crescent Mortgage Company
(800) x 2051
Crescent Mortgage Company |