1. 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

2. 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

3. 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

4. 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

5. 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!

6. 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

7. 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!

8. 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!

9. 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 …

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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,

17. 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,

18. 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,

19. 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,

20. 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,

21. 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,

22. 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

23. Director – Customer Solutions
QUESTIONS?
Geoffrey F. Cooper
Director – Customer Solutions
Questions?