1. David Motley President Colonial Savings Fort Worth Mortgage Bankers Association January 14, 2015

2. 2 Happy New Year from FHA! MIP reduced by.50 - Effective with Case Numbers obtained on and after 1/26/15 - Available for loans with terms > 15 years Process - Existing case numbers may be cancelled beginning on 1/15/2015 - This Temporary process must be completed by 2/26/2015 - Appraisals ordered under old case numbers may be used with new case number - Additional instructions in ML 2015-01 Suggest - Identify status of each FHA loan in pipeline - Compare contract dates and MIP change dates - Discuss options with Applicants - Listen to the FHA call Thursday afternoon at 2pm ; 866-233-3842; code 350538

3. 3 And did you see this yesterday from CFPB?? CFPB Launches 'Unbiased' Mortgage Rate Tool by Rachel WitkowskiRachel Witkowski JAN 13, 2015 12:01am ET

4. Let’s Check Our Pulse Systemic Shift

5. 5 A Picture Tells Our Story

6. 6 Estimated Residential Originations Source: MBA – October 2014 Mortgage Finance Forecast

7. 7 The Regulatory Ecosystem Author of Policy/Rule/Regulation Stakeholder of Policy/Rule/Regulation DISCLAIMER: The policies/rules/regulations shown, as well the corresponding authors/stakeholders, are illustrative and thus may not be an exhaustive list. …for what has become a very complicated web of relationships and interdependencies. Confidential: Not for Distribution Origination Servicing Securitization/ Secondary Markets CFPB FHFA/GSEs HUD/FHA HUD/FHEO DOJ Federal Reserve FDIC, OCC, SEC ATR/QM LO Comp Appraisals HMDA RESPA/TILA Escrow HPML SAFE Servicing Standards Loan Limits G Fees Buybacks LLPAs Disparate Impact/ Fair Lending Basel Risk Retention/ QRM MIP Policy Indemnification QC Policy False Claims Minimum Servicing Fees Volcker Rule Reg AB Margin Rule

8. 8 Source: Mortgage Bankers Association and Census Bureau Thousands of households Homeownership rate (%) Owner- and Renter-occupied Households & Homeownership Rate

9. 9 Estimated Residential Originations Source: MBA – October 2014 Mortgage Finance Forecast

10. 10 First-time Homebuyers – Only 29% Source: National Association of Realtors

11. 11 Lower Credit Borrowers In GSE Purchase Market – Declined & Not Returned Source: U.S. Mortgage Insurers

12. 12 Entry-level Housing Market Still Weak Source: MBA application data and MBA analysis of NAR data

13. 13 Minorities Will Account for Three-Quarters of Household Growth Over the Coming Decade

14. 14 THE CHALLENGE: BRINGING OUT THE FIRST-TIME HOMEBUYER 14

15. 15 Source: FRBNY / Equifax Challenge: The Delay

16. 16 Student Loans Have Driven Up Consumer Debt Burdens

17. 17 Making the Dream a Reality?

18. 18 What We Need To Do 1.Get Finalized GSE 97% LTV product—done!! Up-front risk sharing—let the MI companies take a bigger piece of the risk —limited experience 2.Fixing the Rules Regulation-induced credit overlays. Need more clarity Rep and Warrant relief --in the works 3.Access to Credit Opportunity Gap—reach out to the future household 4.FHA – Increase Availability & Affordability

19. 19 A couple of things you can do: -Support the Mortgage Political Action Committee ( MORPAC) - Join the Mortgage Action Alliance How can you help??”

20. Mortgage Bankers Association Political Advocacy Programs

21. 21 Mortgage Action Alliance (MAA)  The easiest way to become a industry advocate is to join the Mortgage Action Alliance.  The Larger the Group, the Louder the Voice  300,000 real estate finance professionals  8,800 MAA members  633 active members from TX

22. 22 Mortgage Action Alliance (MAA) Why Me?  YOU are a leader in your community  YOU are an expert in your field  YOU are the person that your elected officials want to hear from  If not YOU, then who?  Every day they are making decisions about your business – don’t let them do it without your input.

23. 23 Mortgage Action Alliance (MAA) How Can I Help?  Join MAA TODAY  Run an enrollment campaign at your company – send an e-mail with the registration link  Promote Calls to Action with your industry friends and colleagues  Attend National Advocacy Conference in April, 2015  Make an effort to regularly communicate with your legislative representatives

24. 24 Mortgage Action Alliance (MAA) Advocacy Test Case  Earlier in 2014 the Senate took up a flood insurance bill  Merkley Amendment – added duplicative federal oversight to the force- placed flood insurance process  MBA’s response:  Federal lobbying efforts  Industry coalition letter  MAA Call to Action – 400 members took action  Between lobbying, coalition and MAA member action, Merkley withdrew his amendment

25. 25 Mortgage Action Alliance (MAA) MAA Allows You To…  Stay informed about the latest industry-related legislation and regulations  Be heard by giving you the tools to quickly and easily communicate with your legislators  Play an integral role in MBA’s overall advocacy efforts  Amplify your voice by connecting you to a national network of industry professionals who share your concerns and priorities  Build relationships with elected officials

26. 26 MORPAC  The ONLY political action committee (PAC) representing the entire real estate finance industry.  MORPAC is a vehicle that allows us to pool our individual contributions together to help elect and re-elect Members of Congress who understand and listen to our industry’s concerns.  MORPAC is non-partisan.  MORPAC is another avenue we have to speak up in Washington. It is crucial that our industry’s voice is heard, and our policymakers need to be educated and informed about the potential benefits and consequences legislation could have on the real estate finance industry.  In order for MORPAC to have a strong voice, we need the participation of the members of the MBA.

27. 27 MORPAC MORPAC by the Numbers  MORPAC is made up of over 1,000 unique industry professionals giving individual contributions  MORPAC has gave over $1.3 million in contributions to over 200 members of Congress and candidates  MORPAC Raised $1.43 million in the 2013-2014 cycle – a new record by over $170,000.

28. 28 This is a Great Business! 1)Credit Expansion – Nowhere to go but Up! 2)More Professional Industry Viable for all lenders – small to large Dedicated expertise to manage the complexity